U.S. wine consumption at highest level in 16 years

Food & Drink Weekly, August 18, 2003

U.S. wine consumption climbed to its highest level in 16 years in 2002, as increasingly sophisticated American tastes drove sales of premium wines to record levels, according to the 2003 edition of Adams Wine Handbook published by Adams Beverage Group. "American consumers have come a long way since the mid-80s, the heyday of wine coolers," said Tiziana Mohorovic, spokesperson for the Adams Beverage Group. "Today, Americans are acquiring a taste for table wines, a trend that is having a profound impact on wine makers worldwide."

The growth in wine consumption in 2002 occurred despite a sluggish economy, excess grape supplies and high inventories from a weak 2001. Consumption climbed to 246.3 million 9-liter cases in 2002, up 5%the largest percentage increase since 1996--with table wines showing the largest gains.

Both domestic and imported table wines recorded healthy gains last year, but imports were the stars, soaring 16.1% to 49.9 million cases. Domestics were up 3.5% to 171.1 million cases. Wines from distant shores were hot and show no signs of losing steam. Australia, not even considered a contender a decade ago, overtook France last year to become the second largest exporter of table wine to the U.S. after Italy.

The price-quality ratio among wine offerings has shifted radically over the past few years, driven by budget-minded consumers seeking value opportunities at every turn. Increased retail distribution, improved quality in mid-priced domestic wine labels due to excess premium grapes, and decreasing prices among both imports and domestics propelled consumption last year.

Among other wine categories tracked, champagne & sparkling climbed out of its millennium trough last year increasing 2.2%, and vermouth recorded a 2.3% gain. Both of these segments offer mixable options with low alcohol content and are expected to fare well in the current cocktail craze. In contrast, wine coolers and dessert & fortified wines both lost cases last year.