Why Did Wine Export Revenues Decline in 2014?
According to the Wine Institute, US wine exports declined by 3.9% to $1.49 billion in 2014 in terms of value.
Table wine is the major US wine category. Other categories include dessert wine, champagne, and sparkling wines.
Whiskey accounts for about 70% of the total US spirits exports. In 2013, American-produced Bourbon and Tennessee whiskeys crossed the $1 billion mark.
Tennessee whiskey volumes increased by 7.4% to more than 19 million cases, and revenues were up 9.6% to $2.7 billion in 2014.
Whiskey is the largest category of the US spirits market with a 33% share of gross revenues. Vodka, cordials, and rum hold 25%, 11%, and 10%, respectively.
The performance of liquor business in 2014 reflects the premiumization trend, or a preference for better, premium, or expensive liquor brands.
Beer has been losing its market share in recent years, giving way to distilled spirits and wine.
Americans are moving toward craft beer due to better taste, innovation, and brewing techniques. Its market share increased to 11% in 2014 from 7.8% in 2013.
The beer market share in terms of supplier revenues has fallen from 56.0% in 1999 to 47.8% in 2014. The decline is more evident in the light beer category.
Bud Light is the leader among major beer brands, with 18% share of the beer market based on the 2013 total beer industry shipments of 211.7 million barrels.
The beer industry has witnessed some key mergers and acquisitions that have resulted in notable consolidations.
Based on the US beer industry shipments of 211.7 million barrels, Anheuser-Busch InBev led the beer industry in 2013 with a 45.6% market share.
Beer is the dominant category in the alcoholic beverage industry with a 47.8% market share of the gross supplier revenue figures for 2014.
The alcoholic beverage industry is highly taxed. The government earns $2 for every $1 earned by alcoholic beverage producers, wholesalers, and retailers.
The three-tier distribution system ensures collection of taxes and prevents control of production, distribution, and selling by a single entity.
In an economic study, the American Beverage Licensees estimated the economic impact of the alcoholic beverage industry in 2014 to be more than $245 billion.
According to the Beverage Marketing Corporation, alcoholic beverages such as beer, wine, and distilled spirits, account for 20% of the US beverage market.
Consumption isn’t turning around. You can blame the bad weather. A dip in oil (USO) prices usually leads to an increase in consumption.
Fuel costs declined significantly over the past eight months. For regular gasoline, fuel costs were at a high of $3.67 per gallon in June 2014.
High inflation in the food cost can cause the restaurant’s operating margins to squeeze. However, a restaurant can adjust the menu pricing and pass the cost to customers.
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