Preview

The Canadian Wine Industry

Powerful Essays
Open Document
Open Document
4789 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Canadian Wine Industry
The Canadian Wine Industry
Table of Contents
Introduction
Significance
Industry Structure
Performance
Employment
Investment
Export Market
Trade Performance
Strengths and Weaknesses
Trade-Related Factors
Technology-Related Factors
Regulatory Factors
Future Challenges and Opportunities
Associations
Provincial Liquor Boards
Federal Goverment Departmental Contact
Footnotes

--------------------------------------------------------------------------------

The Canadian wine-making industry, North America Industrial Classification System (NAICS) 31213, comprises establishments that are primarily engaged in manufacturing wine or brandy from grapes or other fruit. Establishments primarily engaged in growing grapes and manufacturing wine, manufacturing wine from purchased grapes and other fruit, blending wines, or distilling brandy, are included. ( 1 )

--------------------------------------------------------------------------------

Introduction
We do not have an "Introduction" for this page, our apologies.

Significance
We do not have a subject on "Significance", our apologies.

Industry Structure
Table wines made from grapes constitute the largest segment of the market and can be divided into two categories: the low-to-medium-priced wines, or "vin ordinaire" table wines, which make up 80% of sales, and the mid-to-premium-priced branded items, including icewines, where product descriptors, appellations (or geographical indications), and vintages are important to consumers.

According to the latest Statistics Canada data, 31 winery establishments ( 2 ) produced shipments worth $500.5 million and employed 1,437 people in 1999. Imports3 were close to $900 million, capturing an estimated 66% share of the domestic market (see Figure 1). The major suppliers are France, Italy and the United States (US). Wine exports ( 3 ) are minimal, ranging between $6.4 million - $10.7 million annually in recent years. Production and exports of grape

You May Also Find These Documents Helpful

  • Good Essays

    Bonny Doon Analysis

    • 1373 Words
    • 5 Pages

    Traditionally wine was seen as a “pretentious” product in U.S, but by the late 1990’s to early 2000’s, wine started to become a popular social drink for the masses. In addition, the market became more adventurous, demanding unusual “undervalued” wines instead of the traditional wines such as Chardonnay. The adventurousness was driven by “Generation X” and created a significant opportunity for wineries to meet this new unconventional demand. As the industry is still currently in its growth stage, the industry attractiveness is high. Wine is a relatively high margin product, and there is increasing demand domestically and internationally. Because of…

    • 1373 Words
    • 5 Pages
    Good Essays
  • Good Essays

    With the slow growth in domestic wine sales, accompanied by an oversupply of wine grapes export markets have become a key driver in sales growth. Watershed has focused its marketing efforts on Asia and in particular China. The high Australian dollar has impeded export growth, however exports remain the primary source of growth for premium wine sales.…

    • 1729 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Bonny Doon Case

    • 2560 Words
    • 11 Pages

    The size of the wine market in the U.S., measured by tonnage, is estimated to be 2.5 million tons of crushed wine grapes in 1998. About half of the tonnages crushed are red wine grapes and the other half are white wine grapes. The best wineries are located in the Napa Valley and Sonoma region, whose wines receive high praises from critics. The per capita wine consumption in the U.S. is only about 2.02 gallons per adult as compared to 16.2 gallons in France and 15.8 gallons in Italy. Thus, demand for wines in the U.S. has huge potential for continued growth. At the same time, there is increasing demand for U.S.-made wines abroad.…

    • 2560 Words
    • 11 Pages
    Good Essays
  • Good Essays

    Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.…

    • 956 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Vincor needs to align itself in the marketplace such that it can continue to be a market leader and grow internationally. The Canadian wine market is stagnant with limited growth opportunities in a few segments - red, premium, varietal, and ice wines. Supply is always a big concern and government regulations for the sale of alcohol must be considered. As a result of the changing environment, new prospects in the market and strategic growth in external markets (international) should be analyzed.…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Tincknell & Tinchknell, 2001. Wine Marketing 101. (2001). Retrieved on March 21, 2012 from : http://www.marketingwine.com/pdfs/winemarketing101.pdf.…

    • 1993 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    PBC Project HvA

    • 7693 Words
    • 31 Pages

    The US has a rapidly growing wine market and is expected a 16% growth up until 2016. Moreover, 13% of all worldwide consumed wine is consumed by Americans, this is because 45% of all American adults drink wine. Evidence indicates that the Eastern part of America are more interested in imported wine rather than domestic wines and this gave perspective to start exports to the state of New York to begin with. As we are expanding to the U.S. we will have to go through a 3-tier system.…

    • 7693 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    The global wine industry involves two distinct activities, viticulture and winemaking. Viticulture is the cultivation and harvesting of grapes and winemaking is the production of an alcoholic beverage via the crushing and fermentation of grapes. The spatial distribution of winemaking is now known as to be either old world or new world and the characteristics of these different areas determine the kind of wine and also quality of the wine produced. Looking into the future of the viticulture and winemaking industries the challenges they are expected to encounter are complex.…

    • 834 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In 2011 the United States become the worlds largest consumer of wine, totalling a staggering 13.5% of global consumption. Further to this fact, individual wine consumption in the US has more than…

    • 1304 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Wine Bar-Business Plan

    • 1078 Words
    • 5 Pages

    Wine is fast becoming an essential accessory for the ‘noveou-riche’ and upwardly mobile urban population of modern India. The astounding 25% growth rate of the wine sales and over 10 million liters of wine production In India bears testimony to the fact that wine consumption as an industry is emerging as a lucrative business opportunity.…

    • 1078 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The global wine industry is estimated to be in size of $130 billion to $180 billion in retail sales which is attributed in three types of wine: Table wine (alcohol level 14%) and sparkling where Table wine accounted for the major share of the market. The table wine market is further divided into five principal segments: jug or commodity, popular premium ($3-7 per bottle), super premium ($7 -14 per bottle), ultra and luxury. The consumptions of premium wine kept growing in US and other non-European wine-producing nations, i.e. UK. However, most of the continental European countries continue to keep high demand on inexpensive table wine. US paid $7.2 per bottle on average, which is higher than Western European consumers ($4.8 per bottle.).…

    • 442 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Wine Industry

    • 4543 Words
    • 19 Pages

    The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their advantage, since they are impossible to just ignore. The four most crucial obstacles the industry is currently faced with are the economic state, the climate changes, the price of gas, and the CARE Act of 2010. All four of these obstacles affect the production of wine and as an end results affect the consumer. These obstacles cause the cost of wine production to increase and therefore wine companies have to increase the price at which they sell their wine to consumers in order to offset the extra money that was put in to the manufacturing of the good. The industry should also focus on their weaknesses amount the five forces, which include threat of substitutes, threat of entry, and threat of rivalry. If the industry can focus on lowering these threats, and concentrate on the value of their customers then they will be able to face the issues that they cannot control with a stronger hold on the market.…

    • 4543 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Mr Simon Mitch

    • 18542 Words
    • 75 Pages

    4.1 Identification and explanation of cross point SW (core competencies, USP) with OT (1&2) (MAR, CSF)…

    • 18542 Words
    • 75 Pages
    Powerful Essays
  • Good Essays

    Winery Industry Analysis

    • 710 Words
    • 3 Pages

    The size of global wine industry ranged from 130 billion to 180 billion in retail sales. Three categories, table (< 14% alcohol volume) dessert or fortified (>14%) and sparkling (champagne). Table wine consumption stands for the dominate market share. There’re 5 segments, jug or commodity (< $3), popular premium ($3-$7), super premium ($7-$14), ultra and luxury (>$25). Jug wine consumption is nearly 38% of case sale but only 13% of the retail sales. The economics of the particular wine, the gross margin from the wholesaler and retailer is 41% and 9% compared to 12% from wine producer.…

    • 710 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Over the last thirty years, California had emerged from relative obscurity to a position as a significant player in the global wine industry, challenging the centuries-old dominance of France, Italy, and other established European countries. En los últimos treinta años, California ha emergido de una relativa oscuridad a una posición como un actor importante en la industria global del vino, desafiando el dominio secular de Francia, Italia y otros países europeos establecidos. California was the primary producer of wine in the United States, accounting for over 80% of US industry employment and 90% of US production volume. California fue el principal productor de vino en los Estados Unidos, representando más del 80% del empleo industrial de EE.UU. y el 90% del volumen de producción de EE.UU.. According to wine experts, premium California wines had achieved a quality and consistency on par with or exceeding any in the world. Según los expertos en vino, prima de los vinos de California ha logrado una calidad y consistencia a la par con o superiores a cualquiera en el mundo. The roughly 740 California-based wineries 1 posted record revenues of $5.9 billion in 1997, an increase of 11% over 1996. Los cerca de 740 bodegas con sede en California un registró ingresos récord de US $ 5,9 mil millones en 1997, un aumento del 11% respecto a 1996. The average pre-tax 2 return on equity for the state's premium wineries had risen from 4% in 1991 to 23% in 1997. El promedio antes de impuestos de dos rentabilidad sobre recursos propios para las bodegas premium del estado había aumentado del 4% en 1991 a 23% en 1997. However, the robust domestic demand that was driving this improved performance (plus the outbreak of a vine-destroying pest known Sin embargo, la fuerte demanda doméstica que se dirigía esta mejora del rendimiento (más el brote de una cepa que destruyen las plagas…

    • 330 Words
    • 2 Pages
    Good Essays

Related Topics