How Wine Companies Can Become Global

Introduction

Scope

A fragmented category with much for companies to do

A Fragmented and Localised Category

A fragmented market

Narrow geographic spread of global wine leaders

Spirits and beer companies far more diverse

Global wine brands even more localised than companies

Broad Geographic Spread

Why a broad geographic spread is essential

Constellation Brands’ narrow focus

Constellation Brands gains volume but less value in the UK

Australia follows the same path as the UK

Viña Concha y Toro grows by going global

Viña Concha y Toro’s increasingly broad geographic spread

Setting up own distribution: Viña Concha y Toro in the UK

Viña Concha y Toro changing distribution method

Fetzer acquisition fits with Viña Concha y Toro’s strategy

Viña Concha y Toro shows the way but needs to be wary

Pernod Ricard builds through acquisition

Other companies e xpanding internationally

Expanding Internationally

Emerging markets offer huge opportunities for growth

Huge growth potential in emerging markets

Growth in established still light grape wine markets

Western markets offer potential now, emerging markets in the future

Entering new markets

Setting up own operations - Castel in China

Using a strong third party distributor - E & J Gallo in Poland

Key points needed for international expansion

Broad Product Portfolio Required

Pricing key to growth as well

US premium struggles in the recession

Diageo’s premium focus in the US has difficulties

Economy wine focus has drawbacks

Broad brand portfolio required

Broad range of price points helps E & J Gallo in the US

Future Prospects

Is a new round of mergers and acquisitions likely?

Diageo’s acquisition of the remaining share of Moët Hennessy

Incremental growth the way forward for wine companies

Treasury Wine following new category growth template

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