Posts Tagged ‘Rise’

 

 

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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The Internet is blossoming into quite the virtual vineyard.

Online wine options are everywhere, from flash sale sites like Lot18 offering daily deals to Facebook prodding you to send a little something for Aunt Suzy’s birthday. And now there’s a new generation of startups such as Club W, which adds a little algorithm to your Albarino, using surveys and ratings to figure out what you might like to drink next.

 

Advertisement ..The click-and-sip approach seems to be catching on, says Jeff Carroll of ShipCompliant, a Boulder, Colo.-based company that helps wineries comply with shipping laws. “Wine is a unique product and it lends itself well to the social aspects of the Internet in terms of discovery.”

 

Online sales have been around for a while, with individual wineries selling wine through their websites, a practice that has become more prevalent as more states relax Prohibition-era laws that had banned alcohol shipments.

 

Today, only seven states have an outright ban on direct-to-consumer shipping, though some of the states that do allow shipping have various restrictions, and 89 percent of the U.S. population has access to direct-to-consumer sales, according to Steve Gross of the San Francisco-based Wine Institute, a trade association.

 
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Wine on the Rise!

Wine on the Rise!

 

The Wine Market Council finds that wine drinking has expanded to more venues.
Amid a still-challenging economic environment, wine sales continued to grow in 2012, according to the Wine Market Council—an independent, nonprofit trade association—and The Nielsen Company, which presented their annual findings on U.S. consumer trends in wine. Key discoveries included:

Not just for fancy restaurants. Wine drinkers are finding more occasions suitable for consuming wine, including less traditional venues like ball games or concerts. That said, restaurant patronage has increased since the downturn in the 2008–2009 recession, and wine consumption at expensive restaurants has rebounded along with that. An increase in wine consumption at casual chain restaurants, including quick service restaurants, also was observed.

“The story isn’t just more wine drinkers,” said John Gillespie, President of the Wine Market Council, “but that they are drinking wine much more frequently, and that’s what’s driving growth.” Particularly among Millennials and Generation Xers, “wine is finding its way into places and times we thought were previously unavailable.”

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Wine on the Rise

 

Bulk wine imports more than doubled in the United States this year because of competitive pricing and changing consumer attitudes, according to a new survey from Silicon Valley Bank.
Silicon Valley Bank’s annual State of the Wine Industry survey – published yesterday – noted that bulk wine imports to the US ‘soared’ in 2012 as compared to the previous year, ‘from 13.7m cases, to 31.5m cases, and totalling over 40m cases in the past 12 months.’

According to the survey, the increase is due to higher domestic demand, better access to foreign bulk and favourable exchange rates.

In spite of a high-quality and high-volume California harvest in 2012, survey authors predict a continued increase in bulk imports this year, especially if the dollar strengthens.

Chile, Argentina and Australia were responsible for 75% of all bulk imports to the US in 2012.

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Fine Wine are still a good investment!

Fine Wine are still a good investment!

 

Fine wine prices in 2013 could rise 14% above their 2012 year end level, a new forecast predicts.

The Wine Investment Fund, an unregulated collective investment scheme, says this is the best time to enter the wine market since 2009.

The risk profile of the market compares much more favourably to recent years, the author of the report, TWIF investment manager Chris Smith says.

‘Our realistic worst-case scenario [is] a fall of only 5%, whereas an increase of 25% by the [wine trading platform] Liv-ex 100 Index is well within the bounds of possibility.’

This will be welcome news to wine investors who saw the value of their liquid assets fall by… 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