Rabobank Report: Global Wine Industry Q4 2013

(PRNewswire) - Rabobank has published a new report looking at the global wine industry as of the end of 2013, and forecasting remaining challenges for the industry globally but a more optimistic outlook for the UK wine sector.

In the report, published by the bank's Food & Agribusiness Research and Advisory group, Rabobank says that the miserable economic environment in the key UK market has left the world's winemakers with little reason for optimism in recent years, as falling real wage growth has driven down consumption. However, Rabobank says, the UK's improving economic fundamentals, combined with recovery in the global harvest, should provide some relief in 2014.

UK Signs of Recovery   

"Improving economic fundamentals should begin to provide more support to wine consumption in the UK," commented Rabobank analyst Marc Soccio. "However, old pressures remain as suppliers continue to deal with rising excise tax rates and a concentrated retail grocery sector."

Changing UK Consumer Habits

UK wine drinkers have become more experimental in their habits, following the downturn. Consumption continues to shift into the home and is increasingly occurring alongside food. Traditional pub formats continue to flounder in favor of more contemporary outlets.

Northern Hemisphere Harvest Update

Reports out of California suggest a very large U.S. harvest for 2013 - potentially larger than the record breaking 2012 harvest.  European inventories have rebounded, as Italy and Spain have revised production figures upwards.  However, poor weather in France saw production fall substantially.