Issue link: https://read.dmtmag.com/i/620640
n Vi n e y a r d & W i n e r y M a n a g e m e n t 's m o s t recent annual online sur- vey of Unified Wine & Grape Symposium trade show exhibitors, respon- dents reported a slowdown in sales growth during 2015. While 46% said that sales were better in 2015 than in the previous year, this fig- ure marks a decline from the 65% reporting improved sales in 2014 and the 80% in 2013. Those reporting sales declines in 2015 increased significantly from the previ- ous year, from 6% in 2014 to 28% in 2015. On the upside, 100% of respondents expressed opti- mism about the health of the North American wine indus- try in 2016. T h e b u l k o f s u r v e y respondents included sup- pliers of winery equipment and supplies (about 76%), providers of winery services (20%) and suppliers of vine- yard equipment and supplies (10%). Providers of a variety of services, from financial to educational, also participat- ed in the survey. (Respon- dents were able to choose up to two categories, so cat- egory totals exceed 100%.) Of those reporting a sales increase in 2015, about 65% reported a gain of 5%-10%. Twenty-five percent experi- enced 11%-20% growth, and 5% saw an impressive 21%- 40% increase. Sales grew by more than 40% for 5% of respondents in 2015, up from 2% the previous year. Suppliers who reported sales declines or flat sales performance for 2015 cited increased competition as the main reason, followed by a poor economy. While 10% of respondents in 2014 reported difficulties for cli- ents in obtaining loans as the reason behind a decline in sales, no one gave that as a reason in 2015. W h e n s u p p l i e r s w e r e asked to name the most important factors in clients' buying decisions, necessity was cited as the top consid- eration, followed by value, service and improved tech- nology. In looking ahead to 2016, approximately 56% of sup- pliers predicted a "mod- est" increase in sales. Ten percent predicted a "sig- nificant" increase in sales (down from 18% in 2014), 23% predicted flat sales and 10% anticipated a decrease (up from 1.5% in 2014). Business growth slows in 2015 for industry suppliers Unified Wine & Grape Symposium Exhibitor Survey w w w. v w m m e d i a . c o m 8 4 V I N E YA R D & W I N E RY M A N A G E M E N T | J a n - F e b 2 016 w w w. v w m m e d i a . c o m