PESTLE analysis on wine industry

Essay by smalldavieCollege, UndergraduateB+, July 2012

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PESTLE analysis on wine industry

Constellation Brands, E&J Gallo Winery, and Wine Group are amongst the three top producers of Wine in the United States. The success of the three organization have been acquired from the recent acquisitions, as well as, their capability of changing with the consumers needs the three major issues which the wine industry is currently being faced with entail upholds the standards of advertising, the corporate buyouts threat as well as, the increasing wine market.

Industry description:

Wine differs through what types of grapes are used and the flavoring added. The flavor usually comes from the barrel type used in the process of making wine. There exist three major wine classifications white, Red, and Blush. The white wines are made from the light colored grapes, and are usually lighter in taste compared to the blush and red wines. Red wines are usually produced with grapes that are darker, and their stems are used in the process of crushing.

In the contemporary society, the industry categorizes wine into 6 divergent categories:


Percentage of united states production

Table wines

84 percent

Sparkling wine

6 percent

Special natural


Dessert wine

4 percent


1 percent


1 percent

The Table wines are amongst the most popular, as well as, fast growing wine type in the united state. The table wines entail seven to 14 percent of alcohol consumed buy volume and are customary consumed with food (poor &standard, 2009). U.S is the 4th largest wine producer globally, averaging about 465, 4oo gallons yearly, with the nation at the top being France, Italy, and Spain. Wine is usually produced in each of the state in the United States.

Competitions in the wine industry are high and the trend is steady. To take part in anything beyond regional niche...