Wine Evolution 2007

UK consumers "discount addicts," while U.S. wine market predicted to prosper.


Published:

Sophie Kevany reports from France on the main themes of the wine industry seminar Wine Evolution 2007, an annual two-day event held in Paris. The seminar is organized by consulting firm Skalli & Rein.

Downward pressure on wine prices, the search for new markets and differences between UK and U.S. markets were three important themes of Wine Evolution 2007.

The UK, while recognized as one of the world's most important markets, is currently suffering from the success of its discount pricing strategies.

"There's a growing fear among wine producers that UK consumers are being turned into 'discount addicts' and 'promotion junkies'," said journalist Chris Brook Carter.

In contrast to the UK, where the average price per bottle of wine is three to four pounds sterling, U.S. speakers, for whom $10-15 is the norm, were more upbeat.

 Vic Motto
Speaker Vic Motto, director Global Wine Partner, USA. Copyright Skalli and Rein.

"The U.S. is not the UK," said Vic Motto of investment bank, Global Wine Partners. "We don't have the dominant retail chains, our largest national chain has less than 3% of market share. With us it is the distributors who have the power," Motto said.

An expanding middle class interested in wine, plus upcoming changes in distribution laws, will drive U.S. wine sales, Motto predicted. Retail and distribution strategies, however, need to take advantage of fragmented markets. "Consumers want more choices, how can we use fragmentation [of production] to their advantage?" he asked.
 
Emerging markets were also under consideration. The Japanese market is currently notable for falling wine prices and increased discount wine sales.

In India, current per capita wine consumption is about a teaspoon per person, however annual consumption growth of about 33%, and the arrival of supermarket chains Tesco, Wallmart and Carrefour in 2008, is expected to change this.

In China, payment cycles of up to 220 days remain a major problem. Others include aggressive local wineries, faking and lack of adequate distribution and storage facilities.


Have an opinion or question? Email us!


More Online Exclusive articles:

 

Related Articles

Gluten-free Wine, Hangover-free Beer and 23 New Molecules Discovered in Wine

Plus more news and notes in the world of wine, spirits and beer.

Louis Roederer to Release 2002 Cristal Jeroboam

Plus other news and notes from the world of wine, beer and spirits.

Buffalo Trace Distillery is Declared a National Historic Landmark

Plus other news and notes from the world of wine, spirits and beer.

Artemis Group, Owners of Château Latour, Acquire Esteemed Araujo Estate Wines

Wine Enthusiast speaks with Bart Araujo about selling the 23-year-old winery.

Add your comment:

Subscribe

You can unsubscribe at any time. View an example of our newsletter.

>

Related Web Articles