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How wine companies are adapting to a changing consumer landscape

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The latest Wine Quarterly Q3 report from agribusiness banking specialist Rabobank indicates that companies are increasingly looking for ways to adapt to an evolving consumer landscape as mainstream demand for wine has noticeably shifted towards new markets and consumers.

According to the Rabobank Wine Quarterly, market segmentation is ushering in a new wave of innovation in global wine styles, marketing and distribution with a consumer-centric approach expected to draw in new generations of wine drinkers.

Rabobank analyst Elena Saputo explains that a major development in the wine market involves a shift in the consumer base, in both geographic and demographic terms. In non-traditional wine drinking countries, millennials are drinking more wine than any of the previous generations did at their age, while in traditional wine drinking countries, they are drinking less but better wine.

However, the new challenges presented by an evolving global consumer landscape have placed many wine companies in a dilemma regarding staying with the mainstay consumers of the past, or altering their approach to suit impressionable consumers of the future. Progressive companies have resolved this conflict by developing contemporary brands with a fresh look-and-feel that fit the preferences of the new consumers, rather than diluting well-established brands.

International supply update:

The 2014 harvests across most of the Southern Hemisphere have been fairly mixed, but on the whole, stock levels appear to be sufficient in most locations owing to the large 2013 harvest. The Northern Hemisphere crop generally appears to be progressing well with the usual exception of some isolated weather disruptions in some regions.

International trade update:

Wine exports across Europe fell for major producers in the first four months of 2014, despite countries such as Spain seeing a 17% increase in volumes. US exports grew 3.2% by volume and 1.9% by value. In the Southern Hemisphere, there were contrasting shifts in export volumes in countries such as New Zealand and Chile, who recorded a 25.3% rise and 8.9% decline in volumes respectively.

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