Supply, Discounting and Consolidation are Top of Mind
The heads of 29 leading wine operations - mostly from wineries but also growers and distributors - excluding Bronco Wine Co and The Wine Group lent their thoughts as they do every year to Robert Smiley, dean and professor emeritus at the University of California, Davis, Graduate School of Management. Although they are all competitors, they agree on some key points. One, they "feel that discounting is here to stay" as consumers are used to deals and retailers are encouraging it, said Robert as he presented his findings at the Wine Industry Financial Symposium. Secondly, domestic grape supply is tight and will likely stay that way for the foreseeable future. Consolidation is also top of mind.