According to Neil Hendry from Data monitor, 24.7bn litres of wine were consumed in 2007, almost four litres per man, woman and child on the planet. However, the dynamics are shifting.
If the latest consumer tracking study by California’s Wine Market Council is any indication, the U.S. wine industry is heading for a banner year. Not only did wine consumption reach an all-time high of 300m cases in 2007, but sales growth by value outstripped volume, indicating that American consumers are trading up.
Last year will be remembered by the wine industry as, among other things, the year of the Great Glass Shortage, when problems were reported from as far afield as South Africa, Argentina, and even Thailand.
Just before Christmas, Joris Snelten, managing director of DGS, one of Holland’s main importers, sent out a letter to his key customers, the multiple grocers and specialists. He told them that the world glass oligopoly had just confronted several of his main suppliers with severe price hikes, in some cases up to 50%.
Argentinia's wine industry has many advantages, from its geography to its low production costs. Seeing the potential, major investors have leapt in. While Argentinia still faces macro-economic issues, it seems investors' confidence has been justified.
New Zealand has put legislation in place to define geographical regions, which means producers and growers will not have to agree about boundaries. While it is likely to generate debate, Bob Campbell argues the price of not doing it could be a high one.
The Australian wine industry is now facing one of its greatest threats ever - the prolonged drought, which could have a devastating impact on up to 60% of the grape harvests. This could mean the country will have to re-think its wine strategy.
Many South African growers based their future plans on grape prices paid in the heady days of the late nineties. With falling prices and a wildly fluctuating rand, many have since struggled to pay their bills. An end to the grape glut would be very welcome news for all those growers who hope to recoup the losses of the past few years.
Everybody’s talking about wine in India’s big cities. Three years ago, consumption was rising at 25% a year. This year, that figure is expected to reach 40% - and continue over the next five years. Maharashtra, Inia's third...
When Spain joined the EU in 1986, a well-intentioned, but ill-advised scheme to replace old, low yielding, dry farmed vineyards with highyielding, irrigated ones, led to an explosion in grape growing and wine production. Today, Spain produces far more wine than it can sell. Many co-operatives, particularly in Castile-La Mancha, are suffering.
