Wine Supply Is All About Control
Wine Supply Is All About Control
Apr 16, 2013 6(Wines&Vines) - If the market in the past decade rewarded nimble wine companies finding the best deals for grapes and bulk wine by playing the spot market, successful wineries in coming years will be the ones who control their supply chain.
That’s the message from industry analysts with Rabobank, who see global wine production continuing to decline and domestic consumption outstripping domestic production, leading to intense supply pressure in coming years.
Despite the large 2012 crop, Rabobank’s analysts see “structural limitations” to match the U.S. and the world’s growing thirst for wine with the available grape supply. Wine companies that fail to secure their sources of supply “will face increasing challenges to grow their brands over the long term,” concluded the report by Stephen Rannekleiv, the executive director of the bank’s food and agribusiness research and advisory group.
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