UK: WINE PRODUCERS LOOK TO SMALLER MARKETS
UK: WINE PRODUCERS LOOK TO SMALLER MARKETS
Apr 25, 2012 6
(TheDrinksBusiness) - Wine producers are looking to smaller markets like Canada for strong growth potential and better pricing, according to most recent Rabobank Wine Quarterly report.Canada is an attractive export market, at a time when they are in short supply.
It is the sixth-largest wine importer and consumes about 480 million litres of wine per year, making it roughly one third the size of the UK market.
Yet unlike the UK, which has seen a slide on wine sales and profits, Canada is carrying momentum with consumption growing by 30% since 2006. Prices are also growing faster than volumes (dollar sales rose 8% in 2011, while volume growth was 5%).
Many exporters are able to attain prices in Canada that are well above their global averages. This is because Canada tends to import higher quality wines than many other markets and suppliers have to deal with state-run provincial retail monopolies that can require them to pay part of the marketing costs for their brands.
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