Outlook
Oversupply of grapes for another 18-24 months
- Larger than expected 2003 California grape crop
- Large and cheap 2004 Australian grape crop here in 6 months
- Possible high levels of producer inventories
- High distributor wine inventories
But positive demand trends continue
- 4% to 5% real growth in total wine, with 5% to 6% for premium wine
- Favorable long-term demographics and lifestyle trends