Fine wine sales in the United States are forecasted to increase by 7-11% this year, according to Silicon Valley Bank’s Annual State of the Wine Industry Report, released on Tuesday.
Along with increased demand, the report’s author, Rob McMillan, projects increased grape and bulk juice prices, fewer private labels, more variation and acreage in plantings, a decline in wine quality for the price paid, and an increase in market share for imported wines.
The report also addresses the emergence of the “Fifth Column,” a group of “disparate, focused companies” that are challenging how wine is distributed, enabling it to be sold direct to consumers, cutting out the wholesaler. Some of those companies include the likes of ShipCompliant, TastingRoom.com, Lot18, VinTank and Naked Wines — believe me, that’s only the beginning.
The report was released in conjunction with a nifty infographic (pictured below) that sums up the institution’s findings.
What are your thoughts on the findings? Any you’d add to the mix based on personal observations?
Image by Erica Swallow