Posts Tagged ‘Markets’

 

 

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.

 

Read on …

Cider sales down in the UK!

 

C&C has reported an 11.9% volume decline in its third quarter UK cider sales, adding weight to recent moves within the sector to pursue growth in other markets.
Although the Magners brand owner pointed out that this result represented an improved performance on first half sales, which it attributed to increased off-trade promotional activity, it remarked: “There has been little discernible improvement in the trading environment for UK LAD [Low Alcohol Drinking] in the third quarter.

“It remains a tough market for brand owners and the increased competition in cider is adding to pricing pressure.”
Read on …

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

 

usa-wine

 

Bragging rights aside, the country’s metropolitan areas differ greatly in their consumption of wines. Often, we see consumption expressed as gallons per capita. That measure doesn’t tell the whole story, though.

The “gallons” in gallons per capita are usually “all wines”, which includes sparkling wines, dessert wines and specially-flavored natural wines in addition to the table wines we think about. Table wines are still (no spritz) wines of no more than 14% alcohol. What’s that? You say you’ve been enjoying red table wines with more than 14% alcohol? Where are they classified? Well, as far as the federal government is concerned, those are dessert wines and are taxed at a higher rate than table wines. For wine marketers, however, those high alcohol wines are usually thought of as being table wines because they are displayed on the shelf alongside all of the other table wines and are sold the same as table wines.
The ratios differ from city-to-city, but the typical relationship is: table wine accounts for 87-88% of all wines. In the northeast and Midwest states, Champagne is still part of many cultural traditions, so the table wines share would be lower than elsewhere.

The bar chart (Figure 1) shows the top 20 metropolitan areas of America in estimated volume of table winesconsumed during 2011. Los Angeles-Long Beach-Riverside and New York-northern New Jersey-Long Island are in a class by themselves.
Read on …

Champagne house wants to focus on three Bordeaux properties, buyer King Power wants to expand

The King of Asian Duty Free, King Power.

The King of Asian Duty Free, King Power.

King Power, a Pan-Asian duty-free powerhouse with interests in the Chinese alcoholic drinks market, has acquired Bordeaux’s Château Bernadotte from Champagne Louis Roederer for an undisclosed sum. La Bernadotte has 100 acres of vineyards in Haut-Medoc, producing about 17,000 cases a year. It joined the Roederer stable when the Champagne house purchased second-growth Château Pichon Longueville Lalande in 2006.

Read on …

 Eritrea.

Eritrea.

All sorts of markets are appearing today that, 20 years ago or less, were barely given a second thought.

China, Brazil and Russia take most of the sexy headlines when it comes to growth at the moment.

Some are less well known but equally important, Belgium, Germany, Australia, Nigeria and Mexico for example.

They are strong, up and coming markets showing stable, if sometimes rapid, growth.

Figures from the CIVC for 2011 show that over the course of last year, China grew by 19% to over 1.3 million bottles, Australia by 31% to 4.8m bottles and Singapore by 20% to 1.4m bottles.

However, from small bases some truly fantastic figures can be achieved as the sudden influx of even 100 bottles boosts a country’s figures dramatically.
Read on …