Rabobank’s Food & Agribusiness Research Releases Q2 2010 Wine Quarterly.

Rabobank’s Food & Agribusiness Research and Advisory has released its Q2 2010 edition of the Rabobank Wine Quarterly.

Highlights:

• Global wine trade is showing signs of improvement compared to 2H 2009.
• Improved sales and the light crop in the Southern Hemisphere may help ease some of the recent global oversupply issues, but it will not resolve the problem.
• Oversupply has been a major factor in the lack of profitability in the wine sector, which has been causing many major beverage companies to adjust or limit their exposure to wine.
• US super-premium sales are rebounding, but some of the growth appears to be the result of discounting and promotions and comparisons to the abysmal sales of 2H 2009.
• The relative growth rate in 1H 2010 may begin to slow nominally as it compares to the improved 2H 2009, but this should not be cause for alarm or be seen as a real decline in the growth trend.
• Bottled wine imports to the US have improved significantly over 2009 so far, but average price per bottle is down 11% from 2008 levels, reflecting the overall pricing pressure in the US market.
• As predicted earlier in the year, sales of California vineyard/winery assets appear to be on the rise. However, pricing is somewhat erratic, ranging from steep discounts to full market value depending on the properties and the sellers’ situations.

Click here for full newsletter.