US Market Conditions

It will probably not surprise viewers when we note that former Federal Reserve Chairman Alan Greenspan recently lamented that there has been a "pause in recovery" of the US economy, or that Paul Krugman, Nobel Prize winner in Eonomics and New York Times columnist, says that "growth is slowing". While the US government is working on new regulations to help the economy recover from the financial crisis, unemployment continues to grow, there is still a foreclosure crisis, and we keep hearing conflicting advice: consumers need to spend more in order to keep the economy healthy, versus consumers need to save more to keep the economy healthy. While large banks, large corporations, and wealthy individuals are doing quite well, smaller banks, small businesses and the non-wealthy continue to suffer in this economy.

Despite that bleak picture, wine continues to be consumed in the US, and a recent Gallup Poll found that 67% of US adults say they drink alcohol, "a slight increase over last year and the highest recorded since 1985." The Wine Institute of California reports that wine consumption in the US was 2.50 gallons per resident in 2009, up from 2.48 in 2008. Total table wine consumed in 2009 was 670 million gallons, up from 658 million in 2008. 

IMPACT Databank Review and Forecast, 2009 Edition, gives statistics on the U.S. Wine Market for 2008. Domestic wines did better than imports in 2008. Imports recorded their first decline since 1993, dropping 2.8% in 2008, and accounting for 26.8% of the market that year. 72.8 million cases of imported table wines were consumed in 2008.

In the wine industry overall, notes the International Wine Cellar, some relationships are strained, many smaller suppliers are being ignored, restaurants have scaled down their wine lists, old inventory is being sold off at reduced prices, and cash-flow pressures are being felt widely. However, looking forward, the stronger U.S. dollar may begin to benefit all parties -- producers, consumers, importers, wholesalers and retailers, as the International Wine Cellar optimistically suggested in its Market Monitor earlier this year.

Yet South African wines have been faring better than many other imports. SAWIS (South Africa Wine Industry Information & Systems) reports that for the year ending May 2010, total table wine exports from South Africa to the US grew to 9,616,159 liters, up from 8,880,863 the prior year, a growth of 8.3%. The overall trend of 2010 over 2009 (for the period from June through May) was 103% for whites, 111% for reds, and 108% total table wines. The Soccer World Cup events in South Africa and around the world focused attention on the country, naturally increasing interest in and sales of South African wines. In the four-month period ending April 2010,  according to the Gomberg-Fredrikson Report, South African bottled table wine imports to the U.S. were up 96% over the same period last year! Imported value for those wines was up 28% in the same period and case volume up 17%. We hope the effect to be lasting, as many people discovered and were delighted by South Africa's fine wines and excellent values. 

		International Wine Cellar Stephen Tanzer's comprehensive review of South African wines is just published. We are including the introduction with permission on our website (click the link to download), and a listing of the wines reviewed. To see the full report, you must have a subscription (http://www.wineaccess.com/expert/tanzer/subscribe.html), which can be obtained for as little as $19.95 for a two-month subscription.
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		Stonebridge Fine Wine Trade Monitor Download this fascinating report produced for WOSA by Stonebridge Research Associates. It is based on in-depth interviews of retailers, distributors and full-service on-premise accounts across the nation. Clear and targeted to provide data that is missed by other market research reports. This one is filled with information you won't want to miss. The key findings may help you make better business decisions. A must-read!
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		The Great South African Wine Show Download the catalog of the Great South African Wine Show here.
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		Doing Business in the USA, 2008 Edition Download our 2008 edition of the Doing Business in the USA publication.
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		Imported Wines Comparative Survey A Baseline Study of U.S. Wine Consumer and Trade Awareness, Attitudes, and Purchase Behaviors Regarding Imported Wines, conducted by Wine Opinions. Wine Opinions is an Internet-based research company focusing on the attitudes, behaviors, and taste preferences of the segment of U.S. wine drinkers who are the most frequent purchasers and consumers of wine.
		To download, click here
		Industry Meeting Presentation, February 11, 2008, Su Birch, CEO, WOSA (in New York City)
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		Industry Meeting Presentation (Oct. 2007, New York City): Charles Gill, President, Wine Metrics
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		Industry Meeting Presentation (Oct. 2007, New York City): John Gillespie, President, Wine Market Council
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		Industry Meeting Presentation (Oct. 2007, New York City): Su Birch, CEO Wines of South Africa This is a pdf file, 4.3 MB download
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