US wine sales: “Nowhere to go but up”

7th October, 2013 by Patrick Schmitt

Improving wine quality, celebrity endorsement, restaurants and demographics are driving a US wine boom, according to Stephanie Gallo.

flag

One third of Americans over 21 currently drink wine

In a discussion with the drinks business in California on Friday last week, Stephanie Gallo, who is vice president of marketing at Gallo Family Vineyards, expressed her confidence in the future of the wine industry in North America.

When asked about the potential for increasing wine consumption across the US, she stressed her belief in the future, but initially highlighted the limited extent of wine drinking in the country.

“Only 33% of Americans over 21 currently drink wine, and of those 33%, 80% of the volume is accounted for by 8-11% of the population; it is 80 years since the repeal of prohibition… we have a long way to go to make drinking wine of part of the American fabric,” she told db.

Nevertheless, she was quick to stress the possibilities offered by a nascent wine culture, “There is nowhere to go but up; I am very bullish about the wine industry in the US.”

Continuing, she outlined four key factors driving sales, the first of which she said was a rise in quality. “We are making better quality wine throughout California,” she stated.

Scandal Olivia Pope

Olivia Pope drinking wine in Scandal season 2, episode 5 – “All Roads Lead to Fitz”

Secondly, she picked out the fact wine is starting to become part of popular culture. “You can’t turn on the TV, or look through a magazine without seeing wine,” she said, noting in particular that Olivia Pope, the main character in hit American TV series Scandal, drinks wine.

Following this, she noted the positive impact of the on-trade in the US. “Every restaurant in America serves wine, and Starbucks is now testing wine too,” she commented.

Finally, she said that changing demographics in America were in wine’s favour. “Every morning we wake up there are 11,000 millennials that turn 21, and they don’t view wine as an elitist beverage.”

Gallo, which is the world’s largest wine company, is still entirely family owned and operated, and employs 4,800 people worldwide, according to Stephanie. Estimates put the volume of wine sold annually by Gallo at around 70 million cases.

According to the Californian Wine Institute, in 2012, per capita wine consumption in the US was 2.73 gallons (12.4 litres), up from 2.68 gallons the year before. (These figures include those not of legal drinking age).

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Brand Ambassador – Santa Rita Estates

Santa Rita Estates
London or Hertfordshire but with flexibility to travel, UK

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more