Industry Insight - WINERIES & BREWERIES - (Q4 2023)

Industry Update - Canadian Wholesale Sector

2023 - Quarterly 4

Ominous Outlook for Wineries & Breweries - Oh boy!

Wineries need to be very concerned about the future, according to Rob McMillan, founder of Silicon Valley Bank’s (SVB) wine division. The author of this year’s State of the Wine Industry Report says the industry is at a critical turning point due to volatile market conditions coupled with deteriorating demand among younger consumers.

Higher costs and unpredictable shipping conditions = shrinking margins.
The premium has slowed, and premium wine segments are forecasted to grow by 2-4%

The report notes that because wine consumption is only growing among those over the age of 60, the industry’s future depends on its ability to attract younger drinkers away from spirits, beer, and alternative beverages. Costs for the industries have risen, causing brewers to hike up prices to cover the costs, which is being felt by consumers. The SVB report estimates sales growth of 2% to 4% for the premium wine & brewery segment, slower than the growth of the overall economy.

Forecast Spotlights

Industry Forecast for US beer, wine and liquor stores.

Industry Forecast for sales in the US breweries industry.

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