Category: Wine Economics

US [on-premise] Wine Sales Total $14.8 Billion

Wine sales in the US on-premise sector totaled $14.8 billion in the 52 weeks ended October 8, 2022 according to CGA Strategy by NielsenIQ.

Latest data from the market research firm CGA Strategy reflects a 22% increase over the same period in 2021, but growth is slowing as the on-premise market recovery continues.

Sparkling wine continues to stand out with sales up 34% in the recent period to $2.6 billion. Total domestic wine sales came to $9.2 billion, up 20%, while imports totaled $5.5 billion. Sales of white wine came to $7.2 billion followed by red at $6.5 billion. Happy to say that rosé sales grew 27% to $904 million.

The growth comes in a competitive market marked by fewer outlets and fewer choices for drinkers. CGA reports the number of fine dining outlets has decreased 4.1% between October 2021 to October 2022, while consumer surveys found 21 % of diners report they have noticed fewer menu items and 40 % of those say there are fewer wine options.

In a webinar last week, Andrew Hummel, CGA client Solutions Director for North America, said surveys of on-premise consumers consistently find 50% report they drink something different at restaurants and bars than what they enjoy at home. “It’s really important to understand the on-premise consumer and segment them differently from the off-premise consumer,” he further states.

In terms of the different types of on-premise wine consumers, 37% of those surveyed by CGA who are wine drinkers fall into the company’s “curious and on a budget” category which represents about 30% of all consumers. These restaurant and bar patrons are “moderately engaged,” typically visiting in the early evening and enjoying trying new drinks yet are price sensitive and attracted to values.

To help wine producers navigate a changing market, CGA developed a new report that offers a “360-degree view” of wine in the on-premise sector. This new report blends market data with consumer surveys and “user” data as well as a channel strategy analysis into what the firm describes as its most comprehensive analysis of the on-premise market for wine. “Whether teams are considering a new brand launch in the market or managing a portfolio of legacy wines, the report will provide a robust set of insights across relevant topics to help drinks suppliers win in the on-premise,” states Matthew Compton, CGA’s regional director of North America.

Sources:
NielsenIQ
Wines Vines Analytics

#wine #whitewine #winenews #winelovers #redwine #rosewine #sparklingwine #champagne #USAwinemarket #wineeconomics #winetrends #winemarketing #winesales #winebusiness

OIV Report: Average Volumes for Vintage 2022

World wine production in 2022 is again expected to be slightly below average, with differences between the individual winegrowing zones and countries. The International Organisation of Vine and Wine (OIV) forecasts global production of between 257.5 and 262.3m. hl of wine and must in 2022. There will be regional differences in harvest volumes, but the market surplus will remain.

The average value of 259.9 mill. hl is about 1% below the previous year’s quantity. However, the OIV points out that no information is yet available from China and Russia.

Europe is the heart of global viticulture. The EU alone accounts for 60% of world wine production and production volume is expected to be average, with Italy, France, Romania and Germany, among others, reporting higher harvest volumes than last year. In contrast, Spain, Greece and Portugal have harvested rather low volumes.

In the USA, a slightly lower harvest volume than in 2021 has been reported; 23.1 mill. hl are expected. This would be 4% below the previous year and 6% below the 5-year average, the second lowest volume in the last five years.

After the record year of 2021, the wine-growing countries in the southern hemisphere produced average quantities overall this time, with almost all countries producing less than in the previous year – except for New Zealand, where after a poor harvest in the previous year, this time the largest production quantity ever (3.8 mill. hl, 44% above the previous year) came onto the market. Overall, the southern hemisphere is responsible for about 21% of world wine production in 2022.

#wine #winenews #winegrowing #vineyards #wineharvest #wineproduction #redwine #whitewine #winelover #winemaker #winetasting #oiv #viticulture #vino #vin #winetrade #wineeconomics

 

 

Source:  OIV

The Liv-ex “Power 100” 2022 – All About Burgundy

The Liv-ex Power 100, produced in conjunction with The Drinks Business Magazine, their annual list of the most powerful brands in the fine wine market.

The Power 100 is a snapshot of the ever-changing landscape of the secondary market and this year’s list caught Burgundy at the very height of its latest upswing.

For the first time ever, no Bordeaux wines feature in the top 10. Not a single First Growth from either bank. This year they have been totally usurped by Burgundy and Champagne.

Rupert Millar, Liv-ex’s Managing Editor states:
“Already the direction of the market in 2022 suggests change is on the way. Just as we saw in 2019, Burgundy’s latest surge may be dizzying but could be swiftly stymied by a lack of supply and an increasing reluctance to pay such steep prices for handfuls of bottles. The higher it flies, the thinner the air, and the fewer buyers there are.”

Key findings:   https://www.liv-ex.com/.

#wineinvestment #winelovers #winecollectors #burgundy #bordeaux #wine #power100 #livex #champagne #finewine #finewinecollectors

OIV Releases 2022 Global Wine Production Projections

OIV releases its report on 2022 Global Wine Production Projections and here are their findings:

Severe drought and extreme heat pose a new threat to wine production.

In 2022, despite the heat wave that touched many regions of the world, global wine production volume is expected to be at a level similar to the one observed last year. This would be the fourth consecutive year where the global production level can be considered as slightly below average.

This year’s harvest has been characterized by extreme heat and record-breaking drought that sped up ripening in vineyards all over the globe. A report recently published by the Global Drought Observatory indicated that almost two-thirds of the European territory was in a state of drought or on alert due to heat waves and extremely low rainfall: this has been the worst drought in the last 500 years. And Europe was not the only region impacted: from East Africa to California, extreme temperatures have been recorded this year.

Average production volume is expected in the EU, with positive performances recorded in Italy, France, and Germany, which balanced out the low harvests expected in Spain and Greece, which were particularly affected by the heat wave during summer.

First harvest forecasts in the USA indicate that production volume will be slightly lower than in 2021.

After the record-high figures of last year, Southern Hemisphere vineyards produced average volumes, with the only exception of New Zealand that, thanks to favorable climatic conditions, records the largest production ever.

Full Report

https://www.oiv.int/press/severe-drought-and-extreme-heat-pose-new-threat-wine-production

Source OIV

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Ukraine officially becomes the 49th OIV member state

Officially today, October 30, 2022, the intergovernmental viticulture organization, The International Organisation of Vine and Wine (OIV) will readmit Ukraine to its ranks. The war-ravaged Eastern European state was previously a member from 1997 to 2008, and had applied for membership last year, before the February invasion.

This brings now brings the number of OIV member states to 49.

In 2021, 660,000 hl of wine were produced in Ukraine from a vineyard area of around 42,000 ha. All of the major wine-growing countries of the world belong to the OIV.

By becoming a member of the OIV, Ukraine will benefit from the information, cooperation and services of a network of over 1,000 experts. These links will enable Ukraine to participate in decisions concerning the viticulture sector.

“By joining the OIV, Ukraine will benefit from the information, cooperation and services of a network of around 1,000 experts.  These connections will enable Ukraine to participate in the fundamental decisions on the development of the sector and to make its voice heard,” OIV states.

@oiv2022mx @@oiv_int  #oiv #ukrainewine #ukrainewines #wine #winelover # ukrainewinery #ukraine #vineyard  #winenews #vines #viticulture