(UniversityofCalifornia) - California’s wine industry will continue to split most of its sales above and below the $10-dollar-per-bottle mark, enjoying a rise in overall consumption and a growing emphasis on premium, rather than economy, wines, reported wine industry leaders surveyed by UC Davis.

Challenges remain in the form of consolidation in the distribution and retail arms of the industry as well as in water and other environmental issues, the survey respondents said.

These and other findings from two surveys of wine executives and industry professionals will be reported at 9 a.m. Sept. 22, during the Wine Industry Financial Symposium at the Napa Valley Marriott in Napa.

“The good news is that as consumers become more knowledgeable about wine, they are trading up for premium wines and pulling the entire wine market up with them,” said Robert Smiley, professor and dean emeritus of the UC Davis Graduate School of Management.

“This means that, more than ever, competing wineries need to be investing in their quality lines and in branding,” Smiley said. He noted that this could be challenging for some companies because the cost of land and grapes is now higher than ever, partly due to a recent wave of outside investors that have set their eyes on the wine industry.

The results from both of the surveys are available at http://bit.ly/1Kr0pSZ.

Survey of wine executives

The 13th annual wine executives survey reflects the opinions and projections of the heads of 24 wine companies. Those firms include 18 California wine producers, one Washington state producer, four wine marketers and one vineyard-investment company.

Most of the executives surveyed noted a definite “premiumization” trend among wine consumers, who are buying more of their wines above the $10-per-bottle price point.

“The market’s moving upwards; it’s enormous,” said one respondent. “It’s growing very fast.”