COMMENT: Wine industry faces up to radical change
In its Global Wine Report, Canadean says changes to the industry are leading producers to seek increased margins from smaller volumes of high quality wines. At the same time the product is becoming increasingly commodified due to the growing importance of supermarkets as primary retail outlets.
These developments, Canadean says, are inextricably linked with the rise of branded wines from the New World and the decline of regional wines from the Old World. While New World markets are expanding at around 20% a year and Old World sales are static, the market share of branded wines is growing steadily.
In 2001 the top 30 brands in the UK took 20% of sales while in the US the top 30 accounted for 57% of the market.
Looking to the future Canadean believes that the key for growth will remain branding. This does not mean that the new arrivals can expect to have things all their own way since there are now signs that the Old World is fighting back.
Hitherto the unstoppable rise of New World wines has been attributed, at least in part, to their easy to understand labelling aimed at novice English speaking buyers. French winemakers have recently recommended measures to the Ministry of Agriculture that could simplify the identification of their produce for such consumers while retaining the existing AOC and vin de pays system.
The UK market is developing in terms of sales and sophistication. Drawing on up-to-the-minute consumer research, Alex McPhee, Neville Calvert and David Matthews of management consultants, KPMG, examin...
Recently published research indicates that while consumers have taken to the clear and modern marketing techniques employed by New World producers, they still cherish the romance and mystique of wine,...
Seven French wine co-operatives have joined forces to create a brand to compete with its New World rivals....
The powerful Bordeaux et Bordeaux supérieur wine union has voted to block bulk sales of wine when prices fall below EUR1,000 (US$1,178) a barrel....
US wine and spirits distributor New World Brands has appointed David Rudden as CEO....
French wine producers and traders are for once showing a united front in urging the Government to back a project creating a new appellation of wine: "Vin de Pays de France."...
Vranken Pommery Monopole has seen its turnover for the first half jump 24.3% to €90.5m (US$108.3m), compared to €72.8m for the same period of 2004....
One of the leading administrators in the French wine industry has said the industry is finally embracing the "revolutionary" reform needed to cope with declining sales, overproduction and intense comp...
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