In our work with clients in the US market for the past 10 years, one of the most common themes has been how to navigate the difficult terrain of establishing effective and profitable routes to market within the US. For the first time, this 92-page report gives a comprehensive state-by-state assessment of the regulatory and business environment for wine.
The US presents both a tempting opportunity and a difficult prospect for wine producers. With more than 300 million 9L cases consumed annually, the US is the largest market for wine in the world, the majority of this wine, around 75%, being produced domestically. However at around 80 million 9L cases, the market for imported wine is approaching that of the UK and Germany in terms of volume, but at a substantially higher achieved price per litre, making it the most valuable market for imported wine in the world.
Yet the process of getting your product into the hands of the consumer is notoriously complex, effectively comprising 50 individual markets. The starting point is a distribution system largely designed at the time of the repeal of Prohibition in the early 1930s. This ‘Three Tier System’ was envisaged as a check-and-balance response to a pre-Prohibition system that was perceived as promoting alcohol abuse in the population. The system breaks the supply chain into three distinct, and separate units: Producer (or importer), distributor and retailer (including bar/restaurant).
Drawing on data collected from our three years of our Vinitrac® (the world’s largest ongoing omnibus survey on wine consumer attitudes and behaviours), our 2017-18 Compass report, trade interviews, secondary sources and market experience, the US Routes to Market 2017 report features:
▪ Market context
Baseline data on the US market, plus assessment of current trends
▪ Reference guide for the different routes to market
A categorisation of the 10 main routes to market, examples of each, and assessment of the merits and issues surrounding each
▪ Regional segmentation and state-by-state analysis of regulatory and business environment
A model showing the main regional differences in terms of consumer behaviour and supply chain structures, with a summary of key facts for each of the 50 US states
▪ Sources and background information
Where our information comes from, and some background on the history of the US wine market