Key 2017 predictions from Silicon Valley Bank for US wine sector
Silicon Valley Bank has just produced its latest State of the Wine Industry report. Here are some of its key predictions for 2017.
Sales growth range of 10 – 14% for the premium wine sector, up from 9 – 13% last year.
Dollar sales will rise by 4 – 6%, while volumes will increase 2 – 3%. This growth will be exclusively in premium wine, with volume and price drops below the $9 bottle price category.
With Donald Trump’s agenda for his first 100 days including deportation, farm labour supply and costs will be a concern.
Acquisitions will remain high.
A strong US dollar, available foreign supply, foreign in-country marketing support and willing millennials will encourage import growth in lower price points.
Under $9 bottled wines will continue to struggle and price drops for glass format wines are expected.
Wines between $12 and $25 will grow in demand, and limited increases will be available.
Wines between $35 and $75 will find price increases difficult without an improvement in the US economy.
Premium wines with an established brand will have no problem retaining volume levels and taking small price increases.