Global trade in wine has increased rapidly during the past 25 years.

Reports of
health benefits and rising global incomes have spurred increasing demand for wine,
particularly in mid- to upper-income countries. In 2001, the United States was the
world's leading importer, just ahead of the European Union (EU). Together, they
accounted for over 60% of global imports.
The European Union has traditionally dominated global wine production and
exports. However, the United States, along with several Southern Hemisphere
producing countries -- Argentina, Australia, Chile, and South Africa -- are growing in
importance. Several important issues have emerged in recent years with respect to
international wine trade, particularly between the EU and non-EU countries,
including oenological (wine-making) practices and the use of "semi-generic" names
for wines. The latter issue is encompassed under the debate on "geographical
indications" at the World Trade Organization. Ongoing bilateral negotiations
between the United States and the EU seek to resolve both of these issues. This
report will be updated as events warrant.

http://blogs.reuters.com/counterparties/files/2013/10/Global-Wine-Shortage.pdf
Exports

Approximately 40% of wine consumed worldwide comes from international trade.

How export market shares have changed over the last three decades is illustrated in
the following graph. The groupings are as follows: Five Leading EU countries are:
France, Italy, Spain, Germany and Portugal; Southern Hemisphere countries include:
Argentina, Australia, Chile, New Zealand, and South Africa; Eastern European
countries include: Bulgaria, Hungary, and Romania.

Most striking:

the decline in market share of the major European Union (EU) exporters;
the growing importance of the lower priced/good quality wines from Southern
Hemisphere countries, and
Eastern European countries loss in market share.
Graph 1 . Changing Market Shares

These trends can be expected to continue. To limit the loss in market share, EU
countries will have to reduce prices further.

Wine exports of the leading exporting countries for the 2008 2010 period are
presented in Table 4. Overall, exports are still down 3.3% since 2008. Chile and New
Zealand outshine all other countries as their exports continue to grow rapidly.

It should be noted that the changes presented in the fourth column of this table are
not necessarily a sign of strength. For example, the growth of Australias exports
resulted from effectively dumping very cheap bulk wine into the global market.
The marketing and supply problems some of these countries face will be discussed
in the next article in this series.

Table 4. Wine Exports, 2008 2010 (in mil. liters)

Source: OIV and various US Dept. of Agriculture GAIN report

Imports

Wine imports have grown 7.3% since 2008, with China again leading the way
followed by Russia. The data in Table 5 aggregate all European countries so that
trade between them is netted out. However, this trade is significant. For example,
FAOSTAT reports that in 2008 (the latest year FAOSTAT has published data), imports
of the leading European countries were: Germany (1,366 ml), UK (1,080 ml), France
(5,700 ml), and The Netherlands (3,567 ml). This means that Germany imported
more from its European neighbors and the outside world than the European nations
taken as a single entity imported from the rest of the world.

Table 5. Wine Imports, 2008 2010 (mil. liters)

Source: Various reports, US. Dept. of Agriculture, Foreign Agriculture Service, and
authors estimates.
http://www.morssglobalfinance.com/the-lobal-economics-of-wine-revisited-hellochina-2/

A relatively poor harvest in much of Italy in 2014 dropped Italy to second in world
wine production behind France, which returned to more normal harvest levels after
two subpar years. Spain, which had a bumper crop in 2013 and outpaced France,
returned to third position. Italy remains, on average, the world's largest wine
producer over the past decade.

http://italianwinecentral.com/top-fifteen-wine-producing-countries/

France is still the clear leader in super-premium still wine, supplying two-fifths of the
value of the worlds exports, which is more than three times the share of secondranked Italy
at 17 percent (Table 177). Perhaps more surprising is that New Zealand is ranked
third in this

category, with 9 percent, ahead of Portugal (6 percent) and Australia and Spain
(each 3
percent). South Africa and Argentina trail behind Chile, Germany and the United
States. It is Italy that has the number one rank in terms of value of exports of
commercialpremium wines, ahead of France, while Spain is first ranked in nonpremium wine exports,
well ahead of Italy and then France. Together these three account for half the
commercialpremium and non-premium global still wine export value, and over 70
percent of superpremium still wine. The next-ranked commercial premium exporters
are Australia, Chile, the
United States, Argentina and South Africa, and the same ordering (apart from
Argentina)
applies to non-premium exports (Chart 44).

Each year, report is conducted to look at the financial condition of wineries, review
historical trends and forecast a sales growth
band for the fine wine segment.
In 2016, we predicted sales growth of 610 percent and expect to end in the upper
end of that range, if not a percentage point or two above it. Consistent with our
information, Symphony IRI Group data from marketing consultants Wines & Vines
for 12 months in off-premise accounts show positive revenue growth of 6 percent for
the period ending in November 2016, with 13 percent
growth in direct-toconsumer sales. The
economy had a
rough in 2014
due to weather,
but sales of higher-end
wines made a strong comeback in the back half
of the year.Sales of lower-priced wines, however, dropped off
in volume
and were discounted.

Market share
Our company targets a 5.56% market share here in the Philippines. It will be fixed
for the subsequent years.
For our market share, we intend to grab the eighty percent since we would want to
reduce the flow of import for most of our competitors are international companies.
The assumed market share of Silangan WinesCorporation, as a pioneer of
producing
wine from pineapple, will be 5.00% of the total Philippine Wine demand in
2016. Every
year the company will increase its production by 2%.

The total Market share represents the share of our product sales as compared to the
total projected demand.
Year Demand
Supply
(lb) %Market Share

D-S Gap

2009 145328000
2.8

65328000

80000000

%Unsatisfied(D-S)/D Target Prod

44.9521

2010 194552000
2.9

113600000

80952000

41.6094

2011 243776000

147200000

96576000

39.6167

2012 293000000

180800000

112200000 38.2935

2013 342224000

214400000

127824000

1572007
1911817

37.351

The table above shows the target market share of the Vulacaea Corporation in the
global market of Bioplastic cling (food) wrap.
C.Export market prospects
Italy, France, and Spain continue to be the largest producers of wine in the world,
and are well ahead of other European producers. Collectively, they produce 45% of
global production, and approximately 81% of European production. France
consumes more in market, whilst Italy and Spain are more significant exporters.
Germany consumes well in excess of domestic production and is the largest
importer in Europe, closely followed by the UK.

http://blogs.reuters.com/counterparties/files/2013/10/Global-Wine-Shortage.pdf
D.Plant capacity determination