Market Overview
The US consumed a record 300 million cases of wine in 2006, according to latest government statistics. The figure supports the belief that wine consumption is a rapidly growing trend in the country. The year 2006 provided many milestones for the U.S. wine market, and all of them were positive. The consumption of table wine exceeded 250 million cases for the first time ever; adult per capita consumption of table wine set a new record high; and the 13th straight year of gains in total wine sales was logged. This more than decade-long period of growth is unusual, as the modern history of the U.S. wine market is one of ups and downs measured in decade-long periods.

There was a sudden surge in consumption beginning in 1970 followed by a lengthy retrenchment through the 1980s and a slow and steady climb beginning in 1994 and continuing to this day. The outlook for continued expansion of the wine market in the U.S. is excellent.

Demand for table wine in the U.S. today is stronger than ever and immediate prospects for continued growth are excellent. Thus, there has never been a better moment to capitalize on the positive trends and emerging demographic imperatives of the market. Meeting the challenges of building the consumer base of the U.S. wine market will provide for long-term increases in demand for wine and profitability for the industry for many years to come.

This chart illustrates the latest distribution of wine variety market share.

Source: The Gomberg-Fredrikson Report

In 2005, Table Wine sales in the United States accounted for 88% of the market or $22.9 billion, but notice that the dessert wine segment accounted for 8% or $1.96 billion of the market. DardeFox expects to capture 0.01% of the dessert wine market and 0.013 % of the Table Wine market in 2008.

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics

Dessert wine sales in the United States bottomed out in 1995 at $789 million. Since then, sales have steadily grown each year, making serious leaps between 2003 and 2005. From 2003 to 2005, dessert wines sales climbed 27% to reach $1.96 billion by 2005! In a telephone interview, a manager from The Wine Library [largest independent wine retailer] remarked, "I don't know what's causing us to sell so much dessert wine all the sudden, but if you find out please let me know!"

Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics

Of the Hungarian wines, there is considerable demand in the United States for Tokaji Aszu, an exclusive dessert wine. There has been a minimal amount of Tokaji Aszu wine imported into the United States. The market is just beginning to awaken. This is the perfect market condition for investors.