Wine Industry

America’s winemakers are making superior wines and reaping global acclaim. In a single generation the United States wine industry’s global success is a fascinating story of entrepreneurial vision and savvy marketing. The American industry has new innovations, new competition, and new markets, which make the future look bright for the wine industry.

In terms of worldwide recognition and success, individual American wineries have made their mark only in the last 50 years. Not until the end of Prohibition in 1933 did the American wine industry take off on a large scale. America has now become the fourth largest producer in the world behind Italy, France, and Spain.

The wine market consists of still wine, sparkling wine, and vermouth. Since the 1970’s, per capita consumption in the United States has grown from 1.3 to 2.7 gallons in 2003. Retail wine sales in the U.S. were a record 21.1 billion. In 2002, Americans consumed 595 million gallons of wine.

Core wine consumers, about 19.2 million, account for 86% of table wine volume consumed in the U.S. Marginal wine consumers, about 28.9 million, account for 14% of table wine volume consumed in the U.S.

Core drinkers are somewhat older than marginal drinkers. 51% are between 40 to 59 years, with a high level of education and a high income of about $79,000. 15% of core wine drinkers have wine daily, 48% drink a few times a week, and 37% weekly.

Marginal wine drinkers prefer white wine, about 46%, followed by red, 35%, and blush/rose, 19%. They are somewhat younger than core drinkers, 49% are between 40 and 59 years and have a relative high income of around $63,000. 52% drink wine two to three times a month, 30% drink once a month and 18% drink once every two to three months. Fifty to fifty-nine year olds drink 16.4 bottles per year. Twenty-one to twenty-nine year olds drink 6.6 bottles per year.

The United States is arguably the best place to grow grapes in the world. The United States boasts world-famous growing areas that rival France and Italy in quantity produced and in quality of wine, as the technology and weather are extremely similar. Napa and Sonoma Valleys are also key tourist attractions, providing a constant source of customers.

The wine market in California represents more than 90% of all the United State’s wine production. People drink wi...

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... especially in the pop-premium market, to all wineries in California.

Ultimately, the continued success of America’s wine industry will depend on its ability to meet all types of challenges, and continue to produce choice grapes and the finest wines.

In the short space of a generation, the American wine industry has maintained the tradition of boldness, innovation, creativeness, and success. American wineries that have been successful cannot rest on those successes, however. The industry and its competitive forces continue to change and members of the current industry will survive only if they are able to anticipate and deal with these changes. While there are significant threats to the American wine industry, there is also a large domestic and worldwide market of potential consumers who have yet to enjoy the fine taste of America’s wines.

BIBLIOGRAPHY www.researchandmarkets.com libweb.sonoma.edu www.winebusinessmonthly.com www.cosmos-club.org/journals www.sierranevada.edu www.datamonitor.com www.impacteen.org www.findarticales.com/p/articles

www.agmrc.org/fruits/info/winebackground.pdf