MKF Research is re-launching the MKF Research Monthly
with feature articles on the phenomenal growth in sales of home wine
cellars; wine sales trends for the second quarter of 2006, and a
discussion of the French "wine crisis." The leading research source on
the U.S. Wine industry, MKF Research provides business advisory
services and market and industry research for individual companies and
investors on a consulting basis. In addition to publishing various
industry studies, the company provides in-depth analysis of the
critical business challenges facing the wine industry today through
the publication of the MKF Research Monthly. After a half-year hiatus,
this targeted, concise report is available by subscription.
Highlights from the current MKF Research Monthly Include:
"Home Wine Cellars Go Mass Market" -- More than 3 million home wine cellars have been purchased by American consumers since 2003:
-- 4 percent of U.S. households now own some kind of wine cellar or cooler -- 4.35 million households -- 72 percent of these purchased since 2003. Most of the units are small, holding 30 bottles or less, and made in China (by Haier, the world's second largest appliance company, which built its penetration of the US market around its wine cellars). Wine cellars may now be an $800 million market, with 80-90 percent of the sales under $200.
-- No longer just an elitist accessory for the ultimate wine geek, retailing of wine coolers has moved beyond the specialty stores to mass merchandisers.
-- Clearly something important is changing in the consumer's wine buying patterns. For years the conventional wisdom held that almost all wine was consumed on the day of purchase. This is obviously no longer true for several million American consumers.
-- Sales of home wine cellars to American consumers through major chain and discount stores have increased by 302 percent according to AC Nielson scan data.
-- The 'wine lifestyle' is going mass market.
-- High-end wine cellars -- the walk-in units selling for six figures -- are also growing, by more than 100 percent annually.
Wine Sales Trends -- Analysis of Second Quarter 2006 IRI Scan Data:
-- Overall wine sales in food and drug channels are up 10.4 percent. To put this in context, the beer industry is having a good year if sales grow 1 percent.
-- Growth is primarily in the above $9 per bottle price category; and all varietals are participating in the growth, except White Zinfandel and, to some extent, Merlot.
-- The growth in Pinot Noir sales has slowed considerably, which may be as much a lack of supply as a stabilization of demand. Merlot's slide has stopped but growth is still quite weak.
-- The fastest growing segment is wine above $15 and especially wine above $30/bottle -- segments that barely existed in chains not long ago. The chains are clearly moving up market in what they are offering the consumer -- or as one store put it, "we are following the consumer up market." Grocery retailers have found that wine buyers buy a more expensive basket of goods, that higher end wine buyers buy an even more expensive basket of goods and that a broader selection of high end wines has great marketing impact.
-- Australian imports have grown more slowly than the overall market, losing market share, and continue to show little traction above $9/bottle.
-- South Africa may be the sleeper among wine imports, growing at triple digit rates, with sales now approaching those of Spain.
What is Happening in France?
This article presents the speech by Jeffrey Davies, President of Signature Selections, exporter of many of Bordeaux's "garagiste" wines, at the MKF Research 2006 Executive Wine Summit. Davies explains the origins of France's wine crisis in tradition, economics and policy -- but also argues that major changes in winemaking techniques by individual wineries are transforming Bordeaux.
About MKF Research
MKF Research LLC is an independent company, owned as a joint venture by Frank, Rimerman + Co. LLP and Global Wine Partners. Barbara Insel is Managing Director of MKF Research LLC.
A major California-based accounting and consulting firm with offices in San Francisco, Palo Alto, San Jose and St. Helena, Frank, Rimerman + Co. LLP acquired Motto, Kryla, Fisher, the CPA practice of MKF Group, in September 2005, as well as 50 percent ownership of MKF Research LLC. Frank, Rimerman + Co. LLP continues to build its wine industry practice in St. Helena.
The other 50 percent of MKF Research LLC is owned by Global Wine Partners, a partnership of Vic Motto and Mike Fisher. Global Wine Partners specializes in wine industry mergers and acquisitions and corporate advisory services.
Visit us at: http://www.mkfresearch.com
Highlights from the current MKF Research Monthly Include:
"Home Wine Cellars Go Mass Market" -- More than 3 million home wine cellars have been purchased by American consumers since 2003:
-- 4 percent of U.S. households now own some kind of wine cellar or cooler -- 4.35 million households -- 72 percent of these purchased since 2003. Most of the units are small, holding 30 bottles or less, and made in China (by Haier, the world's second largest appliance company, which built its penetration of the US market around its wine cellars). Wine cellars may now be an $800 million market, with 80-90 percent of the sales under $200.
-- No longer just an elitist accessory for the ultimate wine geek, retailing of wine coolers has moved beyond the specialty stores to mass merchandisers.
-- Clearly something important is changing in the consumer's wine buying patterns. For years the conventional wisdom held that almost all wine was consumed on the day of purchase. This is obviously no longer true for several million American consumers.
-- Sales of home wine cellars to American consumers through major chain and discount stores have increased by 302 percent according to AC Nielson scan data.
-- The 'wine lifestyle' is going mass market.
-- High-end wine cellars -- the walk-in units selling for six figures -- are also growing, by more than 100 percent annually.
Wine Sales Trends -- Analysis of Second Quarter 2006 IRI Scan Data:
-- Overall wine sales in food and drug channels are up 10.4 percent. To put this in context, the beer industry is having a good year if sales grow 1 percent.
-- Growth is primarily in the above $9 per bottle price category; and all varietals are participating in the growth, except White Zinfandel and, to some extent, Merlot.
-- The growth in Pinot Noir sales has slowed considerably, which may be as much a lack of supply as a stabilization of demand. Merlot's slide has stopped but growth is still quite weak.
-- The fastest growing segment is wine above $15 and especially wine above $30/bottle -- segments that barely existed in chains not long ago. The chains are clearly moving up market in what they are offering the consumer -- or as one store put it, "we are following the consumer up market." Grocery retailers have found that wine buyers buy a more expensive basket of goods, that higher end wine buyers buy an even more expensive basket of goods and that a broader selection of high end wines has great marketing impact.
-- Australian imports have grown more slowly than the overall market, losing market share, and continue to show little traction above $9/bottle.
-- South Africa may be the sleeper among wine imports, growing at triple digit rates, with sales now approaching those of Spain.
What is Happening in France?
This article presents the speech by Jeffrey Davies, President of Signature Selections, exporter of many of Bordeaux's "garagiste" wines, at the MKF Research 2006 Executive Wine Summit. Davies explains the origins of France's wine crisis in tradition, economics and policy -- but also argues that major changes in winemaking techniques by individual wineries are transforming Bordeaux.
About MKF Research
MKF Research LLC is an independent company, owned as a joint venture by Frank, Rimerman + Co. LLP and Global Wine Partners. Barbara Insel is Managing Director of MKF Research LLC.
A major California-based accounting and consulting firm with offices in San Francisco, Palo Alto, San Jose and St. Helena, Frank, Rimerman + Co. LLP acquired Motto, Kryla, Fisher, the CPA practice of MKF Group, in September 2005, as well as 50 percent ownership of MKF Research LLC. Frank, Rimerman + Co. LLP continues to build its wine industry practice in St. Helena.
The other 50 percent of MKF Research LLC is owned by Global Wine Partners, a partnership of Vic Motto and Mike Fisher. Global Wine Partners specializes in wine industry mergers and acquisitions and corporate advisory services.
Visit us at: http://www.mkfresearch.com
© 2006 Business Wire
