EnAmerican appetites for imported wine are rising, while that of foreigners for American produce are waning. Panjiva data shows U.S. wine imports increased 10.4% on a year earlier in the first quarter and reached the second highest level on record in March. That was the result of growth in demand from Portugal and Canada, while Chile and Argentina have fallen out of favor. Australia and South Africa meanwhile are beginning to see a resurgence after longer term declines. Italy remains the largest supplier with a 28.6% share.
Source: Panjiva
Compared to the beer industry – which has consolidated heavily, as outlined in Panjiva research of May 24, wine is highly fragmented. Shipments by the top 10 importers only account for 31.7% of total imports in the 12 months to April 30. Within that group though Giorgio Gori and JF Hillebrand are seven times the size of their nearest competitors. The latter has gained ground on the former in the past year, with a 11.0% rise in shipments in the past quarter vs. a 5.8% decline. New entrants can also emerge rapidly, as has been the case with Vina Concha which was the fourth largest supplier in April from being outside the top 10 a year earlier.
Source: Panjiva
Exports on the other hand have been a different matter. Shipments fell by 16.5% in the first quarter. That was led by a 25.2% drop in shipments to the U.K. and a 23.2% slide in exports to Italy. Those declines may be explained by the strength of the dollar, particularly in the U.K. following last year’s Brexit vote. Shipments to Canada also fell by 11.9%, reversing three years of growth. That may be more subtle, and triggered an ongoing complaint at the WTO by the U.S., launched under the Obama administration.
Source: Panjiva
