US is No.1 wine market

THE US is now the largest wine market in the world.

THE US is now the largest wine market in the world.

Analyst Jon Fredrikson this week told an industry gathering in the US that Americans consumed 13 per cent of all wine produced globally.

US production rose 2 per cent last year to help meet the demand, Mr Fredrikson told the Unified Wine and Grape Symposium. But bulk wine imports from Argentina, followed by Chile and Australia, also helped.

New Zealand had boosted its planted acreage and was expected to become a bigger player, especially in sauvignon blanc.

Wine consumption is decreasing in France and Italy, so foreign producers are targeting the US market.

Overseas wines now account for 35 per cent of sales in the US.

Mr Fredrikson said consumers were driven to cheaper imports by grape shortages in the US in 2010 and 2011 that resulted in higher prices for domestic wines. Even the Charles Shaw label - known as "Two Buck Chuck" - was forced to raise prices this month, by US50¢ (48¢) a bottle.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles