Wineries

Brief Excerpt from Industry Overview Chapter:

Companies in this industry make wine and brandies either from grapes that they grow or that are grown elsewhere. Major companies include Bronco Wine Company, Constellation Brands, E&J Gallo Winery, Jackson Family Wines, and The Wine Group (all based in the US); as well as Concha y Toro (Chile), Heineken Beverages (South Africa), Gruppo Italiano Vini (Italy), Treasury Wine Estates (Australia), and Veuve Clicquot (France).

COMPETITIVE LANDSCAPE

Demand for wine is driven by the restaurant and hotel industries, the level of business entertainment spending, and consumer income. A winery's profitability depends on production volume and sales price, both of which can vary from year to year. Large companies have stronger distribution channels and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium price. The US industry is concentrated: the 50 largest companies account for about 70% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Wine, using red grape and white grape accounts for about 40% of the industry revenue, each. Leading table wine varietals (wines named after the grape they are made from) are chardonnay, pinot noir, merlot, white zinfandel, cabernet sauvignon, pinot grigio, syrah, and sauvignon blanc. Other revenue sources include dessert wines, distilled liquor, and revenue from rental of space for events such as weddings.