Wine Industry

Executive Summary The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their advantage, since they are impossible to just ignore. The four most crucial obstacles the industry is currently faced with are the economic state, the climate changes, the price of gas, and the CARE Act of 2010. All four of these obstacles affect the production of wine and as an end results affect the consumer. These obstacles cause the cost of wine production to increase and therefore wine companies have to increase the price at which they sell their wine to consumers in order to offset the extra money that was put in to the manufacturing of the good. The industry should also focus on their weaknesses amount the five forces, which include threat of substitutes, threat of entry, and threat of rivalry. If the industry can focus on lowering these threats, and concentrate on the value of their customers then they will be able to face the issues that they cannot control with a stronger hold on the market.
Overview of the United States Wine Industry The United States Wine industry is composed of over 7,000 wineries and about 1,800 different companies. The wine industry is highly concentrated which means about 80% of the industries’ sales come from the top 50 companies within the industry. The U.S wine industry accumulates about 12