Modern consumption and market performance of new world wine Over the course of the last 20 years new world wine sales have exploded
Modern consumption and market performance of new world wine Over the course of the last 20 years new world wine sales have exploded in international markets. Between 1988 and 2007, new world sales increased from 7.8m nine-litre cases to 227.6m cases, a CAGR rate of 19.5%. (http://www.bharatbook.com/detail.asp?id=136292&rt=Modern-consumption-and-market-performanceof-new-world-wine.html) This growth is underpinned by the development of the international trade for wine, which again reached a new record of 9.1bn litres in 2007, an increase of 6.5% on 2006. International trade accounted for 41.8% of all wine consumption. This is forecast to rise to 42.1% by 2012. And new world has continued to gain share, from 26.4% in 2006 to 27.6% in 2007. By 2012, new world will grow its share to just under 30% of all international trade. The global wine industry is in fundamental transition. While overall consumption is rising slowly, there are big shifts in consumption patterns. The traditional wine drinking countries are consuming less, while non-traditional countries particularly in the English-speaking world and Asia are drinking more. It is in these non-traditional markets where new world producers are winning the battle. The fact that new world producers are performing best in non-traditional markets is a considerable cause for optimism. The new world producers can be credited with bringing in millions of new consumers into the wine world in markets such as the UK, US, Canada and Scandinavia. Against this backdrop, this report sets the scene for how new world wine has developed over the last ten years and where likely consumption trends are heading. At over 90 pages, this comprehensive report focuses on the challenges and opportunities for the major new world producing countries: Australia, New Zealand, United States, South Africa, Argentina and Chile. Chapter 1 Introduction The report's introduction reviews key issues and trends such as demystifying wine with brands, promotional spend, the old world fightback, the experimental consumer, and how new world is moving upmarket. All with exclusive interview extracts from the leading new world brands and producers. Gallo managing director, Europe George Marsden sums up new world's market approach: “New world wineries have done a very good job in branding so they’ve demystified wine and have brands and labels that are easy to read and easy to understand. They also promote a wine style that tends to be more fruit forward, with a richer mouth feel. The other thing is that they have really concentrated on exceptional value. This has made new world wines very attractive.” On promotional spend, Foster’s UK commercial director Neil Barker: "The top-ten brands accounts for a disproportionate share of category advertising and promotion spend. Increasingly you are finding file:///C|/Documents%20and%20Settings/user29/Deskto...0market%20performance%20of%20new%20world%20wine.htm (1 of 3)7/22/2010 3:44:59 PM