Bronco Wine Co. Competition
Now Viewing Bronco Wine Co.'s competition in: Wineries (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Through how many distributors does the company sell? - Large companies may sell to 100 distributors; small companies to just a handful.
How many sales representatives does the company have? -
Who are the company's major end-use retailers? - Restaurants, supermarkets, and liquor stores are typical end-use retailers.
What are the company’s primary means of promotion? - Large producers commonly use consumer advertising, sales incentives, and distributor promotions.
What key factors affected the company’s wine pricing recently? - Oversupply or undersupply are common and can sharply affect prices.
Which producers or brands are the company’s major competitors? -
Does the company operate a retail store at its winery? - Small retail sales from wineries are allowed in some states.
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. There are large economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium price.
Business Challenges
CRITICAL ISSUES
Competition from Imports - Imported wines, mainly from France, Italy, and Australia, hold about a third of the US market. The higher-end market segments are most affected by imports. Chronic oversupply of wine in France and Italy, due to government policies, has depressed US prices. In the past 10 years, US wholesale wine prices increased just 14 percent.
Dependence on Consumer Spending - A high correlation exists between levels of consumer income and the amount spent on wine. The volume of wine produced in the US dropped almost 60 percent during the recession of the late 2000s, and imports fell by about a fifth.
Industries Where Bronco Wine Co. Competes
- Beverages
- Alcoholic Beverages
- Winemakers(primary)
- Alcoholic Beverages
