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        Wineries Industry Profile

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        Excerpt from Wineries Industry Profile

        Companies in this industry make wine and brandies either from grapes that they grow or that are grown elsewhere. Major companies include Bronco Wine Company, Constellation Brands, E&J Gallo Winery, Jackson Family Wines, and The Wine Group (all based in the US); as well as Concha y Toro (Chile), Distell (South Africa), Gruppo Italiano Vini (Italy), Treasury Wine Estates (Australia), and Veuve Clicquot (France).

        Total worldwide wine production is about 250 to 300 million hectoliters per year, according to the International Organization of Vine and Wine. Major wine-producing countries include Italy, France, Spain, the US, and Argentina. The US is the world's largest wine consuming country by volume, but emerging economies in Asia, Africa, and South America may offer opportunities for future industry growth. Consumption is flat or declining in most mature European markets, although growth worldwide overall has slowed due to recent declines in consumption in China and the UK.

        The US winery industry includes about 4,000 producers with combined annual revenue of about $21 billion.

        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 and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making ...

         
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