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Market size
The U.S Wine market has been claimed as the largest market in the world by Wine Institute representative and CEO Robert P. This industry is highly fragmented and relatively large with a total of $17 billion in revenue as of 2014. There are currently about 1,800 established wineries in the nation, with half of these located in California. Wine sales from all distributers in the U.S have seen a record increase in their sales of 9- liter cases totaling 360.1 million worth $34.6 billion. 58% of those sales were attributed to California, the leading wine producing state in the nation. California had a total of 250.2 million cases distributed worldwide. 90% of the industries revenue comes from California. The other top wine producers are located in new york, Oregon, and Washington. Domestic demand for U.S wine was recorded as $21, 619.1 million in 2014 with a per capita alcohol consumption of 25. Our U.S wine industries have attained a substantial amount of foreign market share with exporting revenue totaling $1.610 million.

Scope of rivalry

Wineries have a wide competitive scope, providing goods to a highly segmented market base, across various geographic regions and demographics. There’s a high existing level of competition among wine producers. Individual wineries compete on the basis of quality, branding, prices, and diversity of products offered. Competition among wineries originates from other wineries, manufacturers, and substitutes including beer and spirits. These producers deal with competition for retail space, restaurant presence, and distributor recognition. A wineries ability of to compete domestically and internationally also prevails on their relative size which increases efficiency. Their relative size will give these firms a competitive edge by giving them access to markets and distribution channels. US industry success is also highly

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