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Wineries
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US wineries industry includes about 1,800 companies with combined annual revenue of $14 billion. Major companies include Constellation Brands, E&J Gallo, and Jackson Family Wines.
Worldwide, annual sales of wine total about $180 billion, according to International Wine and Spirit Research (IWSR). Major wine-producing nations include France, Italy, and Spain. Top wine-making companies outside the US include Gruppo Italiano Vini (Italy), Veuve Clicquot Ponsardin (France), and Viña Concha y Toro (Chile).
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 higher-quality wines that sell at a premium price. The industry is capital-intensive: average annual revenue per worker is about $370,000.
Imports are a major competitor for US wine producers, accounting for about a third of the US market. Imports come mainly from France, Italy, and Australia. Major markets for US wine exports include Canada and the UK.
PRODUCTS, OPERATIONS & TECHNOLOGY
Red and white wines, along with other varieties containing 14 percent or less alcohol, make up about 60 percent of the market. Leading varietals (wines named after the grape they are made from) are chardonnay, pinot noir, merlot, white zinfandel, cabernet sauvignon, pinot...
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