|Last Quarterly Update:||12/21/2015|
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Companies in this industry make wine and brandies either from grapes that they grow or that are grown elsewhere. Major companies include Bronco Wine, Constellation Brands, E&J Gallo, Jackson Family Wines, and The Wine Group (all based in the US); as well as Distell Group (South Africa), Gruppo Italiano Vini (Italy), Treasury Wine Estates (Australia), Veuve Clicquot (France), and Viña Concha y Toro (Chile).
Total worldwide wine production is about 275 million hectoliters per year, according to the International Organization of Vine and Wine. Major wine-producing nations include Italy, France, and Spain, followed by the US, Argentina, Chile, and Australia. The US is the world's largest wine consuming country by volume, but emerging economies in Asia, Africa, and South America may offer opportunities for future industry growth. Consumption is flat or declining in most mature European markets.
The US wineries industry includes about 3,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion.
Demand for wine is driven by the restaurant and hotel industries, the level of business entertainment spending, and consumer income. A winery's profitability depends on production volume and sales price, both of which can vary from year to year. Large companies have stronger distribution channels and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium ...
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