Bronco Wine Co. - Competitors

Bronco Wine Co. Competition

Now Viewing Bronco Wine Co.'s competition in: Wineries (primary)

Recent Developments

Weather, Pests Affect California Grape Crops - California grape crops experienced an unusually late frost and some are quarantined due to pests, affecting wineries' grape supplies. The spring freeze hit vineyards statewide and caused crop loss of 10 to 90 percent, depending on location, according to Wine Business. And about 15 square miles in Sonoma Valley are quarantined and subject to inspection and potential sales restrictions, due to the discovery of two moths capable of infestation, according to Wines & Vines.

US Top Retail Wine Market in World - The US is the largest retail wine market in the world by value, according to The Wine Institute, a positive indicator for domestic wineries. The total value of annual US wine sales, including imports, increased 4 percent in 2007, the Institute reports, and total volume reached 745 million gallons. California wineries supplied 61 percent of total volume sales.

Restaurant Wine Prices Rise Faster than for Home Use - Consumers are seeing higher price increases for wine consumed in restaurants than for home consumption. US consumer prices for wine away from home increased 4.2 percent in April 2008 compared to year-earlier levels. Prices for wine at home rose 2.8 percent year-over-year.

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.

Full Industry Overview For Wineries

Wineries Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US wineries is forecast to grow at an annual compounded rate of 2.9 percent between 2007 and 2012.

Winery Production Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.