Issue link: http://read.dmtmag.com/i/100792
2012 UNIFIED WINE & GRAPE SYMPOSIUM EXHIBITOR SURVEY Cautious optimism among industry suppliers continues BY TINA CAPUTO, EDITOR-IN-CHIEF n our 2011 survey, we learned that suppliers to the North American wine and grape industries were finally beginning to see the light at the end of the recessionary tunnel. We���re happy to report that the trend of cautious optimism has continued, and grown a bit stronger over the last year. Vineyard & Winery Management conducted an online survey of Unified Wine & Grape Symposium trade show exhibitors to find out how their businesses fared in 2012, and gauge their feelings about the coming year. According to the responses we received from 101 wine industry suppliers, most experienced modest sales growth in 2012, and expect 2013 to be even better. The majority of our online survey participants ��� about 63% ��� are suppliers of winery equipment and supplies, while 23% provide winery services and 12% are suppliers of vineyard equipment and supplies. The remainder offer a variety of services to the industry, including legal, financial, academic, marketing and public relations (respondents were able to choose up to two categories). Approximately 79% of respondents reported that their sales improved in 2012, compared to 71% reporting an increase in 2011. Sales remained flat in 2012 for 16.9% of respondents, while 19% reported flat sales in 2011. Sales declines saw a decline of their own in 2012, from 9.5% in 2011 to 4.5%. Of those who reported sales growth in 2012, about 47% had a 5%-10% increase, while 35% saw 11%-20% growth. Nearly 12% saw a 21%-40% increase and sales jumped by more than 40% for 4% of respondents. In the 2012 survery, we asked suppliers who reported a sales decline to identify the main factor responsible for the dip. Approximately 65% cited the poor economy, while 22% blamed increased competition and 13% reported difficulties for clients in obtaining loans. Another new question in 2012 asked suppliers to name the most important factor in clients��� buy- 80 V I N E YARD & WINERY MANAGEMENT | Jan - Feb 2013 ing decisions. Value was the main concern, according to 33.7% of respondents, closely followed by necessity (32.6%), then service (16.9%) and improved technology (16.9%). In looking ahead to 2013, the majority of respondents (approximately 67%) predicted a ���modest��� increase in sales, while 20% predicted a ���significant��� increase, 11% predicted a flat sales year and a pessimistic 1% anticipated a decrease. When asked about their level of optimism about the health of the North American wine industry in 2013, 64% of participants (up from 61.4% in 2011) said they were ���cautiously optimistic,��� while 32% (up from 25.7% in 2011) reported being ���solidly optimistic.��� The number of ���extreme��� optimists in 2012 declined from 4.8% in 2011 to 3.4%, and the percentage of ���not very optimistic��� suppliers dropped from 7.6% in 2011 to just 1.1% in 2012. How was business for your company in the year just ended? 2011 Sales 90.00% 2012 Sales 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Better than last year Worse than last year About the same as previous year w w w. v w m m e d i a . c o m