A longstanding wine industry report stated that the next five years wouldn’t be a smooth ride. Silicon Valley Bank has produced the State Of The Wine Industry Report for 18 consecutive years. The 2019 report reads as ominous at best. Many analysts hoped the millennial generation would be transitioning over to more wine consumption during the last few years, but that isn’t happening. Founder of Silicon Valley Bank’s wine division Rob McMillan, the primary author of the report, summarized that the U.S. wine industry’s sales growth has been quiet as of late and could decrease, something that hasn’t happened since 1993.
“In my view, the issue of greatest concern for the wine business today is the millennial generation’s lack of participation in the premium wine category,” McMillan said in the report. “While millennials hold slightly higher consumption in the $8–$11 bottle price points and are interested in wine, they haven’t made any noticeable movements to become premium wine consumers for almost five years.”
The report forecasts that both volume and dollar sales growth in 2019 will end lower than 2018, and grape and bulk prices will noticeably drop in California this year. Read the full report for 2019.
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