It will be one of the exhibitors of luxury on 3 September at the International Wine Forum 2008 In his presentation will discuss the prospects and the market in the United States.
Jon Fredrikson be one of the exhibitors at the fourth edition of the International Wine Forum to be held on September 3 at the Angel Bustelo Auditorium in Mendoza. On this occasion, we present to Jon Fredrikson, president of Gomberg, Fredrikson & amp; Associates, the oldest consulting firm specializing in the wine industry. In this interview he tells us what the challenges of Argentine wine in the United States will face the recession.
– What is your vision for the future of the wine market in the United States – The prospects for sustained growth of the wine market in the United States are very strong. In fact, I think the wine industry in the United States is still in its infancy. To corroborate this, just look at our wine consumption as low as 9 liters per person. Then, in a market of 300 million people, consume only 310 million cases of wine (9 liters). That probably places the United States as the second largest market in the world’s largest wine by volume, but is probably the largest in terms of retail sales, which reached some $ s 30,000 million in 2007 Because the United States market has grown in sales value at a rate of 7.5% during the last 15 years, we attract thousands of growers around the world. The market is very competitive, with wines from 50 states and two dozen countries competing with each other. Competitive aspects are good for consumers, because many wineries vying for your attention, there is a wide range of brands and ingenious packaging and quality levels in constant progress, features that attract more consumers. Q: What do you think are the trends that benefit growth – Demographic trends are another positive factor in the future outlook. First, a population of baby boomers (born in the baby boom of the sixties) aging continues to drink wine because of the many stories about the healthy aspects of moderate consumption of wine. Most people believe that wine is good for them. Thus, it is likely that a large proportion of the adult population continue to consume wine instead of spirits. In addition, the children of these baby boomers, called echo boomers or millennials, are adopting wine at a much earlier age than previous generations. Its high incidence of wine consumption as young adults is a good sign as to the continued growth of the wine in the country. There are still also many Americans who just consume wine. As these people came gradually consume more and more frequently, the overall wine consumption will increase too. – What do you think will be the impact of the recession in the United States wine consumption – Certainly, the apparent recession in the United States has had an impact on wine sales in restaurants in the past nine months or so. Traditionally, restaurants have been an area where people tend to cut its budget during periods of economic downturn. In addition, high fuel prices have reduced vehicle travel for eating out at restaurants. Many businesses have cut their budgets for travel and entertainment, hurting sales at restaurants. On the other hand, the restaurants still sell large quantities of wine and often, people negotiates a lower cost alternative to the wine list. While sales of wine in restaurants have suffered, consumed more frequently buy wine to consume at home during meals instead of eating out. Thus, there has been a slowdown in sales of premium wines because the restaurants have cut their orders and many dealers from the United States have reduced their inventory levels. On the other hand, there are recent reports indicating that ACNielsen purchases table wine grew 2.6% in volume and 6.3% in value in American stores until 31 May. – Given this scenario what prospects have Argentine wines in this environment – Obviously, this year sales of imported wines have been hurt by the weak dollar and the consequent price rises that many importers have had to accept after so many years to clamp increases. Over four months, until April, imports of bottled wine to the United States table had dropped 3% due largely to losses by Australia and Italy. By contrast, bottled table wines from Argentina rose 29% to April due to the strong values that Argentine wines currently offered. This year, Argentine wines bottled have grown at a greater absolute amount and higher than any other exporting nation rate. Bottled Argentine wines have great prospects in the United States for the foreseeable future due to the strong values they represent. In short, Argentine wines have a perception of high quality and are considered as values of strong wines. Many other nations have had to raise prices as a result of the weak dollar, but the Argentine wines are not affected by this process.
