Issue link: http://read.dmtmag.com/i/51841
UNIFIED WINE & GRAPE SYMPOSIUM Challenges Ahead Although our survey results indicate that industry suppliers are largely optimistic about the future, they also reported significant concerns. Here's what respondents had to say when we asked them to share their thoughts about the North American wine industry's biggest challenges for 2012. Roger Burson Quality Wine Barrels Cooperage "Wine consumption may continue to be robust, but consumers will likely purchase at a lower price- point. The somewhat counter-intuitive result might be steady or increasing total gallons consumed, accompanied by decreasing total sales dollars. " Dave Alden Blueline MFG and Equipment "The 2011 crop, as of today. " Moreover, government regulations, environmental regulations and industry regulations, followed closely by labor. Dave Miller Packagingarts Inc. "One obstacle might be " a shortage of grapes due to cooler weather – but that doesn't mean higher prices. Garth Greenham Phyterra Yeast Inc. "Chile and other cheap imports. Jim McClellan FORT Systems "One key factor for " small and medium-sized wineries will be overcoming legislative roadblocks to building direct-to-consumer businesses. " Theodore Weiswasser Landmark Label Manufacturing "Adjusting to the value " Mecal Samkow IVIS Software "Overall pessimism for the national and global economies. General uncertainty for many aspects of society, consumer behavior/ confidence and profits. BUT: It seems that the wine industry has some cushion and will pevail more than other industries. " Brian O'Malley Ocvitti Australia/Ocloc "Cutting running costs in the vineyard. All wine regions of the world face new competition from China as the wine industry gains a foothold in growing grapes and making wine. " Ido Goldstein Smart Fog "Lack of optimistic " thinking, and lack of people willing to innovate and work hard to achieve new solutions. Jeff Bitter Allied Grape Growers "The state of the economy and resulting lack of consumer confidence. " requirements of the middle market. Michael Mercer Tonnellerie Leroi USA "The grape yields are so bad this season that this will have a ripple effect into next year with leftover new barrels. It is difficult enough selling barrels, but to have wineries with new barrels left over from the previous vintage, it really will be a challenge in 2012. " Chris Hermann Stoel Rives LLP "Global financial recession. " Juan Puentes Winetech LLC "In my opinion, the biggest challenge for 2012 will be the sales and production of the 'super luxury' ($50-$100) and 'icon' ($100) segments. Even the millionaires are not interested in buying these types of wines, and the connoisseurs are drinking their cellars. " Debra Morris Longview Fibre Paper and Packaging Inc. "Undoing price compression. " Lori Marie Adams ReCoop Barrels "Finding your niche to " keep up sales within this economy. Respondents who opted not to give their names cited additional challenges, including labor shortages, managing the cost of wine production and difficulties in obtaining loans. 96 VINEYARD & WINERY MANAGEMENT JAN - FEB 2012 WWW.VWM-ONLINE.COM