Wine Industry on the Rebound

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(Sacramento, CA)
Thursday, September 23, 2004
Boosted by an improving economy, a diminishing glut of wine grapes and a surge in prices, the wine industry is slowly recovering from one of the toughest retail markets in years, according to an annual report from U-C Davis. Professor Robert Smiley, who directed the survey of industry executives says while profits are likely to increase significantly over the next two years, so will the number of competitors. SMILEY :09—It’ll probably be even more intense as wines come in from Australia, Chile, Argentina, as well as other California wineries competing for market share. More than one half of the retailers surveyed anticipate their strongest sales growth would be from wines priced between 7 and 10 dollars a bottle. Bob Hensley KXJZ News.