9-11 Fallout on California Wine Sales Less than Expected
California wineries lost an estimated $75 million in revenue as a result of the
events of September 11, representing about one percent of total 2001 winery revenue
of $6.5 billion dollars, according to industry consulting firm Motto Kryla Fisher
(MKF) during its first “State of the Wine Industry” Conference. Preliminary estimates
from its research indicate total winery revenues for 2001 were up about three
percent from 2000. Case volume growth was flat, with significant differences in
growth rate by price category.
Moderator Comment: What are the prospects for the
wine category in 2002 and beyond?
Flat case volume could pose a problem for wineries and
retailers as a growing surplus market of domestic and imported wine puts price
pressure on the category. [George Anderson – Moderator]