Posts Tagged ‘Demand’

 

Swedish company Vernissage has started selling its boxed wines shaped to look like designer handbags in the UK due to unprecedented consumer demand.

Keen to appeal to fashion savvy consumers, last year Vernissage released the chic trio in the US and a number of European countries, overlooking the UK.

But due to repeated requests from British consumers, the wines are now available to buy in the UK through The Exceptional Wine Company.

Created by Stockholm-based graphic designer Sofia Blomberg, the “Bag-in-Bag” wines are made at the Nordic Sea Winery in Sweden run by Takis Soldatos.
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With the relatively large 2012 crop came the expectation that the 2013 grape market would be less active than last year. That has proven to be somewhat true, but only in the realm of “hyper” activity that leads to rapidly increasing prices.

Grapes are being traded, at least to the extent they are even available, since most of them are tied up under multi-year contracts. However, there is no “reckless competition” for grapes experienced last year. Pricing seems to be at or slightly above last year’s levels.

Depending on the variety, the coastal market is arguably more robust than last year at this point. With much less spot market fruit available, buyer interest is high. Reds in particular have brought great interest in 2013; Cabernet Sauvignon specifically.

Coastal areas outside of the most premium growing regions seem to be bringing the most interest for all varieties. This is due to buyers wanting to purchase great quality coastal fruit that allows them to average down the grape cost of their higher end programs. With that being said, there is much less hyper-activity around Napa Valley Cabernet and Sonoma County Pinot Noir. There is still strong demand, but buyers seem to be more interested in averaging down the cost of their high-end programs rather than fervently competing for additional high-end fruit at historically high prices.

 

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Undersupply replaced a decade-long era of oversupply with autumn 2012’s harvest and the inevitable prices hikes will hurt the entry-level market. Meanwhile global demand continues to rise.

TWEETS OF the “OMG! We’re going to run out of wine!” variety greeted reports in the autumn of 2012 that grape harvests in the Northern Hemisphere had widely fulfilled predictions of shortfalls across a sweep of major wine-producing regions. This compounded earlier Southern Hemisphere shortfalls at a time when global consumption is growing. Without question, the headline figures made for sobering reading, especially after a decade or more of oversupply being the norm.

As 2012 European harvest volumes were confirmed, the International Organisation of Vine and Wine (OIV) estimated that total global output had fallen from 264.2 million hectolitres in 2011 to 248.4m hl in 2012, representing the lowest level since 1975, when the body began tracking these figures.

 

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Good news, or bad?

Good news, or bad?

 

Report highlights falling production, increasing prices, and a trend towards consolidation in the global wine industry.

Consumers should brace themselves for rising wine prices in 2013, with wine production falling to a five-year low and producers starting to raise their prices.

While oversupply conditions have characterized the $102.2-billion wine industry in recent years, keeping wine prices low and damaging the wine industry’s profitability, that’s starting to change, says a report by U.S. market research firm IBISWorld.

Global production has fallen during the past five years at an estimated 1.8 percent annualized rate to 248.2 million hectoliters in 2012. Much of this production decline occurred in Europe, because the European Union offered incentives to growers to reduce winery acreage, and removed distillation subsidies, which supported unviable producers.

IBISWorld reports that this… read on

 

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Rather down, than up during 2012!

Champagne shipments will fall by around 3% in 2012 back to the level of 2005 and 2006.

A poor November saw sales down year on year by between 6% and 7%, and overall sales during the year are expected to be between 312m and 314m bottles, 3% down.

When 42m bottles were sold in December 2012 it was the lowest figure for that month since 2004, said Michel Letter, managing director of Pernod Ricard-owned GH Mumm and Perrier-Jouët. ‘If we do the same this December, that will make 312m bottles for the whole year.’

With ‘a lot of promotion on the French market recently’ where prices in hypermarkets have regularly dropped below €10 a bottle, Letter expects that level at least to be reached.

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