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Global Wine Wars
SWOT Analysis of US Wine Market
Strengths:
1) US imports are very difficult to crack due its distance from the most producing countries.

2) One of the main contributors to the US market growth was the Generation Y, they supported wine more than Generation X.

3) The complex 3 tier distribution system that the US will force all the sales to pass through the state licensed wholesalers, these wholesalers add cost and exercise their great power.

4) Of the World’s Top 20 wine brands, Nine US brands featured in that list which was an achievement.

Weakness:
1) It has become a high cost producer due to the high land prices.
2) Another major drawback is unavailability of land for expansion in the premium wine areas.
3) American producers focused a lot on their large and high priced domestic market, but fell behind global price (low and high points).

4) Average wine prices for US in similarly rated wine was more when compared to Australia.
EX: Californian wine was 55$ whereas Australian was 20$.

5) Controlled Immigration has resulted in the increase of labor costs.
Opportunities:

1) The US wine market can look to target the super-premium and ultra-premium sections. 2) As the oversupply of the market grew surplus wine was being purchased on the spot which led to the creation of a popular low price brand named “Two Buck Chuck” which sold 5 million cases a year, here is there is an opportunity to market and expand this brand.

3) There is an increase in demand for the consumption of wine in countries such as Canada and Russia, so US should look to serve their needs and increase their profits.
4) The US market is the third largest wine importer in the world and is one of the fastest growing major wine market, so they should look to capitalize on that and reach the top.
Threats:
1) One of their biggest

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