Issue link: http://read.dmtmag.com/i/230154
UNIFIED WINE & GRAPE SYMPOSIUM Unified Wine & Grape Symposium Exhibitor Survey 2 0 1 3 Another optimistic year for industry suppliers fter two years of fine harvests in California, Washington state and many other North American wine regions, and the gradual recovery of the U.S. economy, the trend of optimism among wine industry suppliers has continued. To take the industry's temperature going into 2014, Vineyard & Winery Management conducted an online survey of Unified Wine & Grape Symposium trade show exhibitors. We asked how their businesses fared in 2013 compared to the previous year, and invited respondents to share their thoughts about 2014. Of the 80 wine industry suppliers who responded to the survey, the majority experienced modest sales growth in 2013, and expect sales to increase in 2014. There was a bit less "cautious optimism" about the future in 2013, but more "solid optimism." Overall, 94% o f su p p l i e r s e x p ressed some level of optimism for the health of the North American wine industry in 2014. The majority of our online survey participants – about 74% – are 86 V I N E YA R D & WINE RY MANAGEM ENT | suppliers of winery equipment and supplies, while 19% provide winery services and 12% are suppliers of vineyard equipment and supplies. The remainder offer a variety of services to the industry, from financial to educational in nature (respondents were able to choose up to two categories). Approximately 80% of respondents reported that their sales improved in 2013, compared to 79% in 2012. Sales remained flat in 2013 for 15% of respondents, while 16.9% reported flat sales in 2012. Sales declines were reported by 5%, compared to 4.5% in 2012. Of those who experienced sales growth in 2013, about 42% had a 5%-10% increase, while 39% saw 11%-20% growth. Approximately 9% saw a 21%-40% increase, and sales jumped by more than 40% for more than 9% of respondents – up from 4% in 2012. Suppliers who reported a sales decline identified the main factors responsible for the dip as follows: Approximately 59% cited the poor economy (down from 65% in 2012), while 32% (up from 22% the previous year) blamed Jan - Feb 2014 increased competition and 9% (down from 13%) reported difficulties for clients in obtaining loans. When suppliers were asked to name the most important factors in clients' buying decisions, value was the main consideration, according to approximately 43% of respondents, closely followed by necessity (34%), service (13%) and improved technology (10%). In looking ahead to 2014, the majority of respondents (approximately 65%) predicted a "modest" increase in sales, while 20% predicted a "significant" increase, 13.8% predicted flat sales and 1.3% anticipated a decrease. When asked about their level of optimism about the health of the North American wine industry in 2014, 52.5% of participants (down from 64% in 2012) said they were "cautiously optimistic," while nearly 39% (up from 32% in 2012) reported being "solidly optimistic." The number of "extreme" optimists in 2013 declined from 3.4% in 2012 to 2.5%, and the percentage of "not very optimistic" suppliers increased slightly from 1.1% in 2012 to 6.3% in 2013. w w w. v wm m e d i a . c o m