Industry Analysis, Trends, and Issues

Industry Analysis, Trends, and Issues

Constellation Brands, Inc. located in Victor, New York is the largest wine company in the world, with reported sales of more than $3.77 billion and a wide range of wine brands and imported beer, spirits, and other alcohol products. Constellation Brands is not only the largest wine producer in the world, but is also recognized as the largest premium wine company in the United States, the largest wine company in the U.K, Australia, and Canada; and the second largest wine company in New Zealand. Their company consists of fifty production facilities and 8,200 employees. The major wine brands that Constellation brands markets across the world are the following: Robert Mondavi, Hardy's, Clous du Bois, Ravenswood, Blackstone, Banrock Station, Nobilo, Kim Crawford, Inniskillin, Jackson-Triggs, and Arbor Mist.

In recent years constellation has benefited from the total increase in wine consumption within the United States. Although the U.S. still trails some European countries such as France in total wine consumption per capita, they still maintain the largest wine consumption for its total population. However, there are many opportunities that Constellation Brands Inc. has that can not only help to increase wine consumption on an individual basis, but can maintain positive increases in total company revenues. For instance, now that the millennial generation is of age to drink within the country, they can increase Constellation Brand's wine advertising campaigns with more digital based marketing efforts. There are so many mediums that will allow for increased marketing at little or no extra cost for companies with the help from an array of social networking sites. Being that the older generation is not technological savvy like younger generations, it initially did not pose a benefit to draw attention to digital marketing early on online sites until they became main stream. In addition to increase marketing for the younger generation, the older generations cannot be forgotten because after all is said and done, the older generations have been supporting the industries success for many years. Due to the financial leverage that the older generations have, including more disposable and discretionary income, they are more apt to buying alcoholic beverages more frequently, especially the premium brand products. Marketing cannot dwindle in this area but it must continue to revamp its approach frequently to keep those interested and committed to old and new products without changing the brand and identity. It is understood that foreign exports and sales are high but in order to increase company expansion and profitability the firm must emphasize domestic sales and their opportunities.

Just following the end of Prohibition, E&J Gallo Winery was founded in 1933 by Ernest Gallo and Julio Gallo in Modesto, California. E&J Gallo currently owns nine wineries in