Wine Sales and Distribution Surging as Consumer Demand is Booming

PALM BEACH, Fla., Oct. 25, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Wine sales have surged across the U.S. owing to innovation in flavor, color, and packaging of the product. Furthermore, the continued importation of high-quality wines into the U.S. is likely to sustain a solid customer base and propel market growth in the near future. The emergence of COVID-19 triggered a worldwide catastrophe, on a scale never seen before. Aside from endangering human health and life, the pandemic had a significant detrimental influence on companies all around the world. However, not all industries have been equally affected. While the great majority of on-premises stores were required to close during the start of the pandemic, the off-trade wine business in the U.S. has enjoyed good sales. The COVID-19 pandemic has led many people to use e-commerce for day-to-day operations as well as for ordering alcohol, thus driving the off-trade distribution channel segment.  A report from Grand View Research projected that the U.S. wine market size, which was valued at USD 63.69 billion in 2021 is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. Wine consumption has become a sign of social status, especially among the millennials and young generation, which is driving the market.   The report said: "Mergers, acquisitions, and consolidation have been occurring among wineries worldwide. Companies are increasingly focusing on producing new products to gain market share in the world… Key market players focus on strategies such as innovation and new product launches to enhance their portfolio offerings in the market."  Active companies in the markets this week include Splash Beverage Group, Inc. (NYSE: SBEV), Brown-Forman Corporation (NYSE: BF.A) (NYSE: BF.B), Constellation Brands, Inc. (NYSE: STZ), Ambev S.A. (NYSE: ABEV), Diageo plc (NYSE: DEO).