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U.S. Wine Consumption up 1% Last Year
     Total wine consumption in the United States increased 1% in 2001, to 231 million cases, according to prepublished research from the 2002 edition of The U.S. Wine Market: Impact Databank Review and Forecast. The full report, which contains exclusive industry data and other pertinent wine research, will be released in late July or early August. M. Shanken Communications, the parent company of Wine Spectator owns Impact Databank.
     Twenty-one wine brands sold at least 2 million cases each in the United States in 2001, accounting for 49% of total consumption. Franzia, Carlo Rossi, Gallo Livingston Cellars, Sutter Home, Woodbridge, E&J Gallo Vineyards, Almaden Bag-in-the-box and Beringer, each of which sold at least 6 million cases, led this group. The combined volume of all 21 brands was flat relative to the previous year.
     Another 21 brands sold between 1 million and 2 million cases each 2001, combining for a 13% market share and a 2% increase in volume over 2000.
The hottest segment was made up of wines selling between 100,000 and 250,000 cases, with 47 brands combining for a 7 percent increase in volume in 2001. Twenty-eight of those brands grew at double-digit rates last year; these brands included 10 from California and 17 imports, led by seven from Australia.
     There are about 6,500 brands sold in the U.S. wine market, and 98% of them sold fewer than 100,000 cases in 2001, a combined 16% of total wine consumption, with only a 1% increase in volume.

Global Wine Consumption Increases to 2.55 Billion Cases in 2001
After a 2.2% gain in 2000, the global wine market is estimated to have increased another 1.2% in 2001, to 2.55 billion cases, according to a new report, The Global Drinks Market: Impact Databank Review and Forecast. Wine consumption is projected to expand by 120 million cases by 2010.
     Most of this growth is expected to come from less developed wine markets, such as China and Russia, as well as major wine consuming nations such as the United States, United Kingdom, Australia and South Africa.
     France and Italy continue to lead the world in terms of wine production and consumption, but both countries have seen continued erosion of their global market share. In 1980, the two combined had a 45% share of global wine consumption, but by 2001, their share had dropped to 28%, according to the 655-page report from Impact Databank.
     Globally, vermouth and other fortified wines are projected to continue their long-term decline, but this will be more than offset by expected growth in table wine, which is now accounts for more than 90% of total wine consumption worldwide. Sales of champagne and other sparkling wines will gradually recover from the millennium effect when distributors built up their inventories in anticipation of the year 2000 celebrations.
     The hottest sales category was Australian wines, with brands such as Rosemount Estate, Jacob’s Creek and Lindemans showing growth rates of 20%, 19% and 10% respectively.
     Martini vermouth continues to be the world’s most widely distributed wine, while Gallo’s E&J Wine Cellars is the largest-selling brand at 25 million cases per year, with most of those sales in the United States.
     Wine is unique among alcoholic beverages in that its top 25 brands combined represent just 7% of the global market, illustrating the extremely fragmented nature of the world wine industry. Beer and distilled spirits, on the other, derive a considerable portion of their sales from the top 25 brands in each category, 31% and 18% respectively.

     It seems there is still a great debate going on over whether or not to use cork stoppers for bottled wine. There are a number of wineries all over the world that are switching over to synthetic stoppers to prevent tainted wine from developing from faulty cork stoppers.
     It seems like a non-issue, however, determining, which form of closure for their wine has put a great deal of stress on the wineries. If they proceed with synthetic stoppers to prevent “cork taint”, then many traditionalists will be upset because they feel cork adds to the build of wines. Some wineries are moving over to screw caps and dropping stoppers and plugs altogether.
     Many consumers still view the cork stopper as the natural fitting for wine bottles. In a recent survey by APCOR, the Portuguese Cork Association, they found that wine drinkers prefer real cork stoppers and stated that the type of closure used was a factor in their purchasing decision.
     Unfortunately there has been little scientific research or data to determine which method is better or the affects thereof. The synthetic stoppers or fairly inert and should have little to no effect on the wine, but wines like Barolo, which evolve in the bottle, should use cork stoppers because they require interaction with the atmosphere. However, many wines are ready to drink when they’re bottled and interaction with the atmosphere through the cork will add to their decline.
     Italy’s experience with corks and alternative closures mirrors trends in America. The use of synthetic stoppers was initially greeted with great suspicion in Italy but an estimated 300 Italian wineries now use synthetic corks. Italian consumers appear accepting of synthetic corks, provided that the reasons for their use are explained.
     Cork producers say they have been making steady progress lately in reducing taint levels. Amorim, the world’s largest cork supplier, has been improving its production methods while vertically integrating the supply chain in an effort to improve quality.