Reseach Analysis
Research Analysis
INBU 451 Fall 2012
Milena Carrizo
Introduction-
I have attempted to identify in this research analysis what I would have to do in order to manufacture and export wine from either a small or medium sized winery in Chile and what needs to be done to increase my share of the U.S. wine market. Over 784,000,000 gallons of wine where sold in the United States in 2010, representing over 13% of all wine produced world-wide. California, a major producer, accounted for 70% percent of all U.S. sales. That didn’t leave much room for foreign imports or other U.S. states that also produce wine. Only approximately 50% of the 62 wine producing countries in the world had access to the U.S. market and of those countries, Italy, France and Australia accounted for 78% of foreign sales. Chile, however, has had success in penetrating the U.S. market. In fact they represent 10% of the U.S. import market. I found, however, that this represented the major wineries, not the smaller vineyards. I also found that Chile needs to increase their promotional activities in the United States. With the high number of producers and with the market dominated by a few major wineries, competition in the U.S. wine market is extremely high. And making it even more difficult is the fact that major retailers continued to consolidate their stores and businesses. This has had a direct effect on the wholesale and distribution networks, which have also had to consolidate because of the narrowing focus of retail outlets. The end result is that the distribution networks are jam packed and the ability of smaller wineries to find distributors is becoming increasingly difficult. While Chile’s has 10% of the US market it has taken a cut due to the crisis in 2009 and the earthquake in 2010 it has caused the Chilean wine industry to decline.
Wineries are becoming more creative and aggressive in their marketing and promotional activities. One promotional activity above
INBU 451 Fall 2012
Milena Carrizo
Introduction-
I have attempted to identify in this research analysis what I would have to do in order to manufacture and export wine from either a small or medium sized winery in Chile and what needs to be done to increase my share of the U.S. wine market. Over 784,000,000 gallons of wine where sold in the United States in 2010, representing over 13% of all wine produced world-wide. California, a major producer, accounted for 70% percent of all U.S. sales. That didn’t leave much room for foreign imports or other U.S. states that also produce wine. Only approximately 50% of the 62 wine producing countries in the world had access to the U.S. market and of those countries, Italy, France and Australia accounted for 78% of foreign sales. Chile, however, has had success in penetrating the U.S. market. In fact they represent 10% of the U.S. import market. I found, however, that this represented the major wineries, not the smaller vineyards. I also found that Chile needs to increase their promotional activities in the United States. With the high number of producers and with the market dominated by a few major wineries, competition in the U.S. wine market is extremely high. And making it even more difficult is the fact that major retailers continued to consolidate their stores and businesses. This has had a direct effect on the wholesale and distribution networks, which have also had to consolidate because of the narrowing focus of retail outlets. The end result is that the distribution networks are jam packed and the ability of smaller wineries to find distributors is becoming increasingly difficult. While Chile’s has 10% of the US market it has taken a cut due to the crisis in 2009 and the earthquake in 2010 it has caused the Chilean wine industry to decline.
Wineries are becoming more creative and aggressive in their marketing and promotional activities. One promotional activity above
References: www.marektingwine.com www.vinasdechile.cl