How are wine things going in the U.S. market? If it comes to selling it to the consumer, the picture is one of many lights and shadows. To know more details though, it will be better to attend the upcoming Wine2Wine International Business Forum, scheduled on the 13th-14th of November in Verona.
While waiting to hear from the leading expert analyst Danny Brager live, here are a few highlights about the 12 trends currently facing the retail wine market in America.
Wine sales have fallen 1% (by value) and 4.5% (by volume) in the past year;
In the same period, retail sales of Spirits have increased by 5.1% (by volume) and 3% (by value) led by the explosive performance of ready-to-drink cocktails;
Less than a third of American households buy wine regularly, and that number has fallen in recent years. This trend is partially offset by increased frequency among those households who purchase wine;
Lower middle-class households, younger families, and millennials (35–44 years old) are more likely to have dropped out of regular wine-buying;
Wine/Liquor stores, Warehouse Clubs, and Online orders have taken a share of wine sales from Grocery, Mass Merchandiser, and Drug Store channels;
The average retail price for a bottle of wine has risen primarily because of the continued trading up of American wine consumers – higher-end price tiers are outperforming lower ones despite economic challenges of inflation and high interest rates;
Sparkling wine continues to show strong growth (though less robust recently), with a younger and more diverse consumer portfolio than still wine. Prosecco has been the leader in consistent year-on-year growth;
White wine is outperforming red;
The emergence of younger consumers with a more moderate approach to alcohol combined with an aging population presents an opportunity for wine producers to offer products that meet their needs;
Best performing still Italian wines are Whites $8-$11 and $15-$25, and Reds $8-$11 and $50+
On-premise consumers prefer Italian wines to other imports by a significant margin;
New York and California lead in importance for Italian still wines, with Florida in third position;
Stevie Kim, managing director of Vinitaly International, said: "The trends that Danny Brager has identified provide a fascinating insight into the buying patterns of American retail consumers. His session at the Wine2Wine Business Forum will be of great interest not only to Italian producers but to all wine professionals at large interested in the American retail landscape”.
Danny Brager's speech will be just one of many enthralling speeches in the forum. As usual, many international experts have been invited to share their expertise with a public of wine professionals, so don’t lose your seat.