Wine Group - Competitors

Wine Group Competition

Now Viewing Wine Group's competition in: Wineries (primary)

Recent Developments

Wine Industry Supports "We Don't Serve Teens" Campaign - For the second year in a row, the Wine & Spirits Wholesalers of America (WSWA) is supporting the FTC's "We Don't Serve Teens" campaign to spread the word that teen alcohol use is unsafe and illegal. The campaign has been launched in the summer the past few years, a period when teens are at a higher risk to start drinking. The 2007 campaign is considered one of the most successful public service campaigns ever. According to the Centers for Disease Control, the percentage of teens "drinking in the past 30 days" fell from 50 percent in 1999 to 44.7 percent in 2007.

Wine Auctions Grow - Wine auctions exceeded $66 million in second quarter 2008, up 23 percent over second quarter 2007, according to Wine Spectator. The average percent-sold rate was a healthy 93 percent, a good barometer of the wine auction market. Some experts were surprised at the strength of wine auctions, given the economy and the plight of the US stock market.

Early Harvest Hints to Global Warming - The Napa and Sonoma Valleys of California had their earliest wine grape harvest in 20 years, a potential indicator of global warming. While some vineyards attributed the early harvest to weather cycles that characterize the industry, others blame global warming and cautioned vineyards to begin efforts to mitigate warming effects. The impact of climate change affects vineyards in different regions, so growers need to consider ways to protect vineyards.

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 3.8 percent between 2008 and 2013.

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.