The wine industry is a very lucrative business with huge challenges.
More and more people are discovering fine wine. The Internet allows easier access to various products. “With the Internet, everyone will know what wineries charge for wine and what people are willing to pay” (Baseler 1). There has been decent growth in the industry with most of it in newly emerging regions like Chile, Argentina, and South America.
The biggest hindrance on the growth of the U.S. wine industry has been that America has never been a wine-drinking country. In countries like Italy and France, people drink wine with meals. Another challenge is that there have been so many new labels of wine emerging in the past few years. “The wine shopper is confused and overwhelmed” (Baseler 2). In other cases, select stores only sell alcohol; it usually varies from state to state.Since 1999, the number of wineries increased 81 percent.
“According to the U.S. Department of Commerce 2006 Annual Survey of Manufacturers, the value of industry shipments of the U.S.
wine and brandy industry reached an estimated $11.8 billion” (Hodgen 1). In 2007, there were 745 million gallons of wine sold in the United States “for a total retail value of $30 billion” (Hodgen 2).
From that number, table wine sales were 650 million gallons; desert wine accounted for 62 million gallons. Finally, sparkling wine sales were 33 million gallons. These values make the United States the largest retail wine market in the world.In conclusion, the outlook for the U.S. wine industry looks very positive.
One reason is the Baby Boomers are retiring and will have more time to travel, tour, and visit wineries (Baseler 3). There are also many people in their mid-twenties that are interested in wine. Those that are in the wine business view it as a very special one.Works CitedBaseler, Ted (2005). “U.S. Wine Industry Challenges and Opportunities”.
Retrieved March 8, 2009 from http://www.winebusiness.com.Hodgen, Donald A. (2008).
“U.S. Wine Industry – 2008”.
Retrieved March 8, 2009 from http://www.ita.doc.gov/td/ocg/wwtg.htm.