Smaller Brands and Imports Fuel the US Wine Market Growth
Staff Writer - October 6, 2006
 Good news for small wine producers who sell their product in the US: Americans are drinking more wine than ever in their history, and the trend is moving away from big brands, thus favoring small wineries.
According to The US Wine Market: Impact Databank Review and Forecast 2006, released in late September, brands selling fewer than 1 million 9-liter cases led US market growth in 2005. The news breaks a three-year period during which the largest national and international brands led wine market growth in the US.
Overall wine consumption topped at 279 million cases in 2005, marking a 3.3% increase over 2004 and reaching an all-time high. What stands out is the fact that the brands selling fewer than 1 million cases grew at double that rate. The Impact report expects smaller producers to drive industry growth in 2006 as well.
The brands that sold more than 2 million cases in 2005 were 28, for a combined increase of 1%. Only three brands, though, accounted for such a growth, Yellow Tail from Australia, Cavit from Italy and Foxhorn Vineyards from the United States. The remaining 25 big brands combined report a 0.5% loss in volume last year.
The Adams Wine Handbook 2006, which was released in early October, reported similar data, breaking new records for volume wine sales in the US. Per-capita consumption increased to 2.19 gallons, the highest percentage level since 1988.
According to Adams Wine Handbook, imports accounted for the largest increase on a yearly basis, with 5.6% more imported wine sold, compared to 2004. Domestic wines sales rose just 0.9%. The top five imported brands registered a 15.4% increase.
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