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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 Constellation Brands, E&J Gallo, and Jackson Family Wines (all based in the US), Veuve Clicquot (France), Distell Group (South Africa), Gruppo Italiano Vini (Italy), and Viña Concha y Toro (Chile).
Major wine-producing nations include France, Italy, and Spain, followed by the US, Argentina, Australia, and Germany, according to the Wine Institute. Among top producers, Australia, Argentina, and the US saw the highest rates of growth between 2007 and 2010. Expanding markets and evolving consumer tastes could help global wine sales rise at a 3 percent compound annual growth rate from 2010-2015, according to Euromonitor.
The US wineries industry includes about 1,800 companies with combined annual revenue of more than $15 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 price. The US industry is concentrated; the 50 largest companies account for more than 75 percent of revenue.
Imports are a major competitor for US wine producers, accounting ...
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