Manufacturers also face increasing competition from outside the wine industry, with the growing popularity and heavy marketing of beer, FABs and soft drinks. In response, manufacturers are seeking to make wine accessible to an increasingly wide consumer, whilst retaining the product’s social cachet.

Celebrity endorsement, product placement in films and the broad-based promotion of a culture of wine connoiseurship are central strategies in wine marketing. As consumers grow increasingly health conscious in both developed and developing markets, demand for beverages with a high alcohol content continues to diminish. This presents wine manufacturers with an opportunity to emphasise the potential health benefits of wine, particularly when compared to the health risks of high alcohol-content spirits that are the customary drink in certain regions such as Eastern Europe. Increasing consolidation in the highly fragmented global wine industry has arisen due to the significant growth opportunities in developing regions, and the success of global brands of New World wines such as the US’s E & J Gallo and Australia’s Jacob’s Creek.

As such, the key challenges and strategies for the next few years fall into a few distinct categories:

Destabilising fluctuations in supply: There is a need to coordinate between producers to maintain steady level of supply, and the use of available technology to prevent the damaging effects of over, or under, supply.

Declining consumption in traditional markets: This must be countered by the promotion of premium wines in developed markets, and increased distribution and education in emerging markets.

Increased competition from non-wine drinks: This is already being tackled by cultivating a sophisticated, yet accessible product image for wine.

Health trends away from alcohol: This has long been dealt with by the promotion of the appar