Wine Industry Looks to Asia for Growth

Spanish wine expert Pancho Campo told Reuters that he believes wine purchases among Europeans and Americans will slow down in 2012, due to the economic problems in the euro zone and the US.

With the Greek economy at risk for default and high US unemployment, people are not as willing to buy expensive wine at auction, Campo said. "(I am) starting to get the feeling that there was a bubble about wine investments and wine auctions. So for me, it's a natural trend that it was to slow down."

Campo told Reuters he predicts that the Asian consumer market may be the saving grace for European producers. In the first half of 2011, collectors, especially from Hong Kong, spent more than $200 million on fine wine. That is nearly double what they spent during the first half of 2010.

Campo said that there are two consumer markets in Asia — those who purchase expensive, collectable wines from Bordeaux and those who purchase value wine that sells for 2 euros per bottle.

There is a big price gap that could potentially be filled by millenials, people who are in their early 20s and will likely be making money in the future. Campo told Reuters he believes that now is the time to starting getting this young demographic into wine.

Photo: David Sessoms