Industry Analysis & Industry Trends
Global oversupply of wine has defined the Global Wine Manufacturing industry over the past five years. As a result of increased global competition, the market shares of traditional European wine producers such as Italy, France and Spain have declined, while newer manufacturers in Australia, New Zealand, Chile and the United States have experienced rising demand. Overall, industry revenue is expected to decline over the five years to 2015, and manufacturers have increasingly consolidated their operations over the period. Although rising wine consumption in emerging markets is expected to lead to stronger international trade in the industry over the next five years, revenue is expected to continue its decline, albeit at a slower pace... read more
The amount of capital used to manufacture wine may vary significantly between small bottlers of wine and vertically integrated international wine manufacturers. The vineyard itself, for example, is highly labor intensive and requires lots of employees to physically pick the grapes from the vines. The process is not difficult, but it requires a steady hand in order to guarantee that grapes are not carelessly smashed and the vine is not improperly harvested. This task, although not necessarily difficult to perform, requires close attention to detail that often cannot be provided through massive tractors and machines.
Labor costs do not only represent low skill employment, however... read more