Rabobank: mid-tier wine brands increasingly overlooked

Published: 14 February, 2012

Mid-tier wine brands are increasingly overlooked as consumers are drawn to either value or super-premium products - that's according to Rabobank.

Volatility and rising commodity costs, growing demand from emerging markets and sustainable sourcing are all key influencers of the global drinks market in 2012, according to Rabobank's new report, Best of Times, Worst of Times.

It highlights that "tighter global wine inventories and weaker currencies in Europe and North America are bringing shifts in competitive sourcing". The report says stocks around the world are at their "lowest point in over a decade". It states that there is strong evidence to suggest that much of the excess supply in the global market has been eliminated. In turn this should "almost certainly" result in strong prices for growers in many global regions.

The report does predict "brighter skies ahead" for the global beverage market, particularly for companies prepared to innovate.

The trend for greater "convergence" between sectors as beer producers make moves to acquire wine and spirit firms in an effort to "increase scale and create greater supply chain efficiencies" is also forecast to continue.

Printer friendly version