global market update march 2016 - wine australia · • the market for tintorero is also increasing...

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GLOBAL MARKET UPDATE – MARCH 2016VOLUME 07 ISSUE NO. 03

The Ciatti Global Market Update this month reminds us, the world of wine remains a consistently moving target. Areas that were recently awash in wine, are suddenly in high demand. Varietals that were easy to get a few months/years ago are now looking harder and harder to get. While this is nothing new as Mother Nature determines the outcome of any harvest year, it behooves all of us to take note and pay careful attention to the “tea leaves”.

Please see in this months report of how much has changed in each market in just a few short months now that the realities of the Northern Hemisphere harvest are realized, and the 2016 Southern Hemisphere harvest is fully underway.

The selling season is never over, and whether it is bulk wine or case goods, it is always time to see how and where your wines will be desired or required.

In a scant week, buyers and sellers from around the world will attend Prowein, which has consistently and relentlessly grown to be one of the premier wine shows. With over 11,000 wineries and more than 50,000 attendees, the conversations and subsequent opportunities are great. For those attending, we will see you there; for those not, if you are interested to gain a greater perspective of the world of wine, we encourage you to think about attending in the future.

The Ciatti Company will of course be attending in force, and we look forward to seeing you all: Halle 9 Stand A13

TIME ON TARGET

THE YEAR THAT WAS 2014

MARKET PRICING

ARGENTINA

Vintage Variety Price Trend Vintage Variety Price Trend

2015 Generic White 0.32 – 0.35 ↑ 2015 Generic Red 0.40 – 0.45 ↑

2015 Generic White (Criolla) 0.30 – 0.32 ↑ 2015 Cabernet Sauvignon 0.70 – 0.80 ↑

2015 Chardonnay 0.65 – 0.75 ↑ 2015 Malbec Entry-Level 0.80 – 0.90 ↑

2015 Torrontes 0.40 – 0.50 ↑ 2015 Malbec Mid-Level 0.90 – 1.20 ↑

2015 Sauvignon Blanc 0.55 – 0.65 ↑ 2015 Malbec Premium 1.20 + ↑

2015 Muscat 0.35 – 0.45 ↑ 2015 Syrah / Merlot 0.60 – 0.70 ↑

2015 Bonarda 0.50 – 0.70 ↑ 2015 Tempranillo 0.60 – 0.70 ↑

ALL PRICING IN USD PER LITER; FCA WINERY:

FOCUS & FACTS

• The crop at this point looks shorter than expected• As in many markets across the globe: The current harvest impacts the market for bulk for past vintages so 2015 may

be impacted as well• Buyers are active already for many varietals based on the current harvest conditions• Pricing is on the rise, however, at this writing we cannot accurately predict the pricing by varietal but we will do so in

the April report• The market for Tintorero is also increasing as wineries are looking at the impact of color on red grapes soon to be

harvested

• Take-away: Unstable market at best

The current situation in Argentina can be classified as “fluid” at best. The pace of harvest has been slowed by significant rainfall throughout the month of February. The first white wines started to come in about 10 days ago, mainly for sparkling wines. While the weather has improved a bit in the later part of February, as of this writing, heavy rains continue, so the market is tenuous at best


CURRENT MARKET PRICING

AUSTRALIA

ALL PRICING IN AUD PER LITER:

NEW ZEALAND


NV Dry White 0.60 – 0.70 ↑ NV Dry Red 0.70 – 0.85 ↑

2015 Chardonnay 0.75 – 0.90 ↑ 2015 Cabernet Sauvignon 0.80 – 0.95 ↔

2015 Sauvignon Blanc 0.85 – 1.00 ↑ 2015 Merlot 0.70 – 0.90 ↔

2015 NZ Marlborough SB NZ 4.85 – 5.50 ↓ 2015 Shiraz 0.80 – 0.95 ↔

2015 Pinot Gris 1.20 – 1.40 ↑ 2015 Muscat 0.70 – 0.90 ↔

Vintage is well under way as many regions have finished crushing their white grapes and now look to pick reds. For

irrigated areas, there are mixed reports on the amount of fruit being received: with some citing larger than expected

Chardonnay crops.

Many regional, premium areas anticipate a positive outcome for their vineyards after good rains were received in early

February following a dry Spring & Summer. Quality for these premium areas are expected to be high. The current

average market pricing for grapes across Australia is overall up ~3%. Notable pricing exceptions are Chardonnay +24%

and Muscat Gordo -26%

As grape purchasing has not entirely been finalized, the pricing can still vary but the figures show a small gain in the total

average increase from 2015 to 2016

A Senate Committee has provided a report to the Australian Government with 12x new recommendations for the wine

industry. Some of these largely debated suggestions include:

• Phasing out of the Wine Equalization Tax (WET) Rebate over a 5 year period

• Amending labeling requirements so wine producers must advise whether the supplier is entity owned or controlled by a

major retailer – buyers will then know if they are purchasing from a supermarket such as Coles or Woolworths.

• Significantly increase funding to wine export market development

The government has 6 months to peruse these topics before responding

The value of wine exports has topped $2 billion for the first time in almost 10 years, the main contributing factors have

been the dollar has once again been competitive, free trade agreements have brought down the price of Australian wine in

Asian markets

A report has found the Australian wine sector contributes AUD $40.2 billion to the national economy. The sector covers

the grape growing, winemaking and wine related tourism areas which covers over 172,000 jobs. Wine related tourism

alone brings $9.2 billion to the Australian economy.

New Zealand wine producer, Ara Wines has sold their entire lot of vineyard holdings to local wine company

Indevin. The Waihopai Valley based vineyard covers 600 hectares of vines and 900 hectares if vacant land. The sales

price has not been released but speculation of the value has been estimated around NZD $288 million based on a NZD

$180,000/hectare calculation. Ara is said to maintain its existing Ara Wines brand.

Pinot Gris may one day be considered contender to the popular white Sauvignon Blanc variety. In the past 7 years,

Pinot Gris plantings have doubled to 2,700 hectares. It is now the 4th most planted variety in NZ after Sauvignon Blanc,

Chardonnay and Pinot Noir. Chardonnay and Riesling are currently in decline. Pinot Gris now makes up for 7% of the

NZ wine production but has a long way to go to reach Sauvignon Blanc’s figure of 70%.

The 2016 harvest has yet to start, crop levels are looking better for the 2016 harvest compared to 2015 but one must

remember that the 2015 harvest was down significantly. A better understanding on the size of the crop will be known in

the upcoming 4 to 6 weeks as vintage approaches fast. We have seen some suppliers willing to sell 2015 material at a

discounted price to make way for the upcoming harvest

TIME ON TARGET



2015 CRUSH PERCENTAGE UP/DOWN VERSUS 2014

CALIFORNIA


2015 Generic White 0.60 – 0.80 ↔ 2015 Generic Red 0.80 – 1.05 ↓

2015 Chardonnay 1.05 – 1.32 ↔ 2014/2015 Cabernet Sauvignon 1.58 – 2.11 ↑

2015 Pinot Grigio 1.58 – 1.98 ↔ 2015 Merlot 1.18 – 1.58 ↔

2015 Muscat 0.92 – 1.32 ↓ 2015 Pinot Noir 1.72 – 2.11 ↑

2015 White Zinfandel 0.85 – 0.99 ↔ 2015 Syrah 1.18 – 1.58 ↔

2015 Colombard 0.73 – 0.99 ↔ 2014/2015 Zinfandel 1.45 – 1.85 ↔

ALL PRICING IN USD PER LITER:

The 2015 California Grape Crop Report was published this month, and it was really a Tale of

Two Harvests. The Coastal regions were down precipitously while the interior of the state faired

much better.

Overall the wine grape crush was down 5% to 3,699,000 US tons

The Interior/Valley which is the areas that most compare with other regions of bulk sales around

the world, was up 5% overall totaling just over 2,900,000 tons and representing roughly 79% of

the state’s total harvest.

The increase was fueled almost entirely by the Southern Interior and in particular by District 13

(which includes Madera and Fresno counties) which crushed almost 145,000 more tons in 2015

than 2014. District 13 saw big gains in Chardonnay (+16.1%), Pinot Grigio (+25.9%), and

Zinfandel (+31.1%).

While Pinot Grigio has been in demand both as grapes and bulk wine, other varieties have been

slower to move out of tanks and an increase in production may bog down the channels even

further.

The Northern Interior was down slightly (-2%) overall with most major varieties relatively flat to

slightly lighter than 2014. Two noticeable exceptions in the Lodi area were Pinot Noir (+13.5%)

and Petite Sirah (+20.9%), which were aided by recent plantings coming into production.

With the value-priced wine segment declining in sales an increase in production from the main

source of that wine could potentially be problematic. What remains to be seen is how much

wine from the Interior can help alleviate the supply issues of the heavily coastal dominated

premium wine segments.

The focus of the April 2016 World Report Buyers Page will be USA sales The reports are just coming in now on how 2015 came in; so we will review, analyze and present them next month.

Variety % +/- Variety % +/- Variety % +/- Variety % +/-

Chardonnay -11.8% French Colombard +7.6% Cabernet Sauvignon -11.0% Zinfandel +9.1%

Pinot Grigio +1.7% Muscat Alexandria +13.7% Merlot -10.5% Rubired +15.4%

Sauvignon Blanc -20.2% Thompson -41.3% Pinot Noir -25% Syrah -18.8%



FOCUS & FACTS

CHILE


NV Generic White 0.50 – 0.55 ↔ NV Generic Red 0.39 – 0.45 ↔

2015 Chardonnay (Basic) 0.80 – 1.05 ↔ 2015 Cabernet Sauvignon (Basic) 0.47 – 0.52 ↔

2015 Chardonnay (Varietal Plus) 1.15 – 1.40 ↔ 2015 Cabernet Sauvignon (Varietal Plus) 0.55 – 0.80 ↔

2015 Sauvignon Blanc 0.60 – 0.85 ↔ 2014/2015 Cabernet Sauvignon (High Quality) 1.50 – 4.00 ↔

2015 Pinot Noir 0.85 – 1.15 ↔ 2015 Merlot 0.50 – 0.63 ↔

2015 Syrah 0.50 – 0.58 ↔ 2015 Malbec (Basic) 0.60 – 0.70 ↔

2015 Carmenere 0.50 – 0.58 ↔ 2015 Malbec (Varietal Plus) 0.75 – 0.95 ↔

2015 Tintorera 0.60 – 0.80 ↑

ALL PRICING IN USD PER LITER; FOB PORT:

TIME ON TARGET

• The harvest started the third week of February with Tintorera grapes, which is by far the star varietal of the year. All the grape have being allocated and price is higher compared to last year. 2016 wine & juice quotes which have being increasing considerably over the last few days. Many international buyers are looking for Tintorera

• Sauvignon Blanc started the first week of March also with lots of increased demand• Both varieties are coming shorter than expected• Pinot Noir grapes are sold out as mentioned on the previous report and demand for

wine is strong. The harvest was expected to be delayed by two week, however, in the last weeks with very high temperatures the crop is only 7 to 10 days behind.

• Red varieties won’t be picked yet since they are still low in alcohol content.• Last crop expectations are between 10 to 15% shorter, and there is increased

pressure from mildew and botrytis.• Clonal Red varieties face a smaller drop than the non clonal grapes at this point in

time.• Currency has changed the way people are looking at pricing• During 2015 the Chilean peso was getting weaker against the dollar, now during

2016 the peso has gained 5.5%, which is encouraging growers to stand firm and increase their prices.

• Electric Energy has also faced a value increase due to governmental measures

Export Figures WR Mar 2016

January 2015 - January 2015 January 2016 - January 2016 Vol.Var.

Wine Export Figures MM Liters M US$ FOB Avg Price MM Lts M US$ FOB Avg Price %

Bottled 37.85 129.65 3.43 37.21 118.92 3.2 -1.71

Bulk 21.91 17.7 0.81 27.19 18.59 0.68 24.12

Sparkling Wines 0.4 1.65 4.12 0.39 1.56 4.05 -3.5

Packed Wines 2.46 4.31 1.76 2.16 3.56 1.65 -12.12

Total 62.62 153.31 2.53 66.94 142.63 2.39 6.9

TIME ON TARGET



FRANCE

ALL PRICING IN EUR PER LITER; EX-WINERY:


2015 Generic White 0.80 – 0.85 ↓ 2015 Generic Red 0.65 – 0.80 ↔

2015 Chardonnay IGP 1.25 – 1.40 ↓ 2015 Cabernet Sauvignon IGP 0.95 – 1.10 ↔

2015 Chardonnay VDF 1.10 – 1.20 ↔ 2015 Cabernet Sauvignon VDF 0.85 – 0.95 ↔

2015 Sauvignon Blanc IGP 0.95 – 1.10 ↔ 2015 Merlot IGP 0.85 – 1.05 ↓

2015 Sauvignon Blanc VDF 0.95 – 1.10 ↑ 2015 Merlot VDF 0.85 – 0.90 ↔

2015 Generic Rosé IGP 0.85 – 0.90 ↔ 2015 Syrah / Grenache 0.85 – 1.00 ↓

2015 Generic Rosé VDF 0.70 – 0.85 ↓

2015 Varietal Rosé IGP 0.85 – 0.90 ↓

For the last couple of months, France has been experiencing an unusually warm winter with drought in Southern regions such as Languedoc and it’s neighboring regions. In some of the flat lands around Beziers and Narbonne, vine development for an early ripening varietal such as Chardonnay is 3 weeks in advance. Bud break causing growing concerns among growers due to potential frost risk

In terms of market activity, although market is less active compared to end of 2015 –which is always the case after a good sized crop, some decent volumes are being contracted on the national market.

In regards to the market price for varietal wines, France is experiencing a price decrease, similar to last year at the beginning of buying season on red and white wines .The market trend for rosé wines is still uncertain as there is good quantities of 2014 vintage wines which is impacting new wines price.

For the generic VDF wines, the current inventory levels in Italy and Spain tend to slow the French price decrease. AOP wines from Loire Valley, Bordeaux, Cotes du Rhone, Provence, prices are stable to slighty higher due to increased demand and balanced supply.

In terms of New World wines, French buyers are like other international buyers – very active securing their supply on a pre-harvest basis, focusing their purchases on South Africa (Cinsault Rosé, Chardonnay, Sauvignon, Colombard, Chenin) and Chile (Cabernet Sauvignon, Merlot). The strategic trend of sourcing outside of Europe as the origin seems to have been accepted by their clients, so we see more of this happening.

TIME ON TARGET



Bio-trade On The Rise: Demand Far Exceeds Supply

GERMANY


2014/2015 White Wine 0.65 – 0.75 ↔ 2014/2015 Red Wine 0.65 – 0.80 ↔

2014/2015 Pinot Grigio 0.95 – 1.20 ↔ 2014/2015 Dornfelder 0.95 – 1.05 ↔

2014/2015 Riesling 0.95 – 1.20 ↔ 2014/2015 Pinot Noir 0.85 – 1.00 ↔


There are still no signs in the German bulk market that the downside trend is being reversed.Prices for generic white wines eased another 10 cents per liter Varietal wines are not very active on the bulk market at this time either

The consumption of German wines slightly increased in January 2016 compared to last years but it’s very early to talk about an indication for a turnaround.For international companies thinking about launching a German wine program this is the perfect point in time.

“The market volume has tripled – but the production

only doubled”

Wein + Market issue Feb 2016

“Currently we cannot supply as much as the market

would relieve us” The growth rates are too fast”

Jan Plagge Bioland President “

Approximately 83% of the global bio vineyards are

located in Europe, but the expansion could not catch

up with the demand, in 2014 only 2% global growth

had been registered

Germany’s acreage stagnated in 2014 after doubling

up between 2006 and 2011, actually 7.5 % of

German vineyards are Bio certified, a surplus of

70% compared to 2004.

In a survey 66% of German wine consumers

confirmed the willingness to spend more for bio

wines than for conventional wines, €7.70 is the

average market price for a bottle of bio wine.

The lack of commitment to comply with the bio

standards and in consequence the lack of raw

material is limiting the growth – not the demand.

Sources: Weinwirtschaft Feb 2016 & Wine + Markt Feb 2016

Country Bio Ha % of Total Ha

Spain 84.381 8,9

Italy 72.361 10,4

France 66.210 8,4

Germany 7.500 7,5

Austria 4.677 10,7

Moldova 4.641 4,6

Greece 4.388 7,2

Bulgaria 2.914 4,8

Portugal 2.772 1,5

USA 15.647 4,1

Chile 3.740 1,8

Argentina 3.466 1,7

New Zealand 2.500 7,4

South Africa 1.156 0,9

Total 319.568 4,6

TIME ON TARGET


MARKET PRICING

ITALY



2015 Chardonnay 0.60 – 0.85 ↔ 2015 Cabernet Sauvignon 0.60 – 0.80 ↔

2015 Pinot Grigio 1.15 – 1.25 ↑ 2015 Merlot 0.55 – 0.75 ↔

2015 Prosecco 2.50 – 2.60 ↔ 2015 Chianti 1.55 – 1.80 ↔


During February the bulk wine market was quite stable with the only exception

of the entry level generic red and white.

The recent data on the 2015 export of Spain (24 million hectoliters) and the fact

that Italy was importing almost nothing from Spain from the 2015 vintage, is

creating a shortage of generic red and white wine and a subsequent increase in

the prices both in Spain and Italy.

Lots of German customers were coming back to Italy over the last few weeks

looking for a cheaper alternative to the higher priced Spanish wines, but the few

companies with quantity available are asking higher prices as well. Generic

white is now starting from €32 - 35/hl and generic red is starting from €33 –

38/hl depending on alcohol degrees

Other deep color red of higher quality like Rossissimo are less requested than

last year with quotation from €72 – 85/hl.

Pinot Grigio is still in good supply based on the fact, the 3 main producing

region (Veneto-Trentino-Friuli) came to an agreement to go on with the project

of the the larger appellation possibly starting2016 vintage.

Prosecco is stable, as the Consortium decided to support the release of the

reserve, but the beaurocratic procedure will last probably an other month. This

will be very important, to understand the future evolution of prices. Bottling data

from March and April, will be important to this process as well.

International varietals are still in good demand and may increase in price a bit

after Prowein. Hot temperatures lasted through February and the vines are

really getting an early start. This trend is common all over south Europe, could

be very dangerous due to frost potential.

Let’s wait and see…

TIME ON TARGET



FOCUS & FACTS

SOUTH AFRICA


2015/2016 Generic White 4.80 – 5.35 ↑ 2015/2016 Generic Red 5.70 – 6.40 ↔

2015/2016 Chardonnay 6.50 – 8.00 ↑ 2015/2016 Cabernet Sauvignon 7.00 – 8.50 ↑

2015/2016 Sauvignon Blanc 6.50 – 8.50 ↑ 2015/2016 Ruby Cabernet 6.00 – 6.30 ↔

2015/2016 Chenin Blanc 4.95 – 5.70 ↑ 2015/2016 Merlot 6.80 – 8.00 ↔

2015/2016 Muscat 5.75 – 6.25 ↔ 2015/2016 Pinotage 6.35 – 7.50 ↔

2015/2016 Generic Rosé 4.95 – 6.00 ↔ 2015/2016 Shiraz 6.80 – 8.25 ↔

2015/2016 Cultivar Rosé 5.70 – 6.60 ↔ 2015/2016 Cinsaut 5.80 – 6.30 ↔

ALL PRICING IN SA RAND PER LITER; FOB CAPE TOWN:

Warm and dry conditions has persisted over the last month and many wineries were already past the 50% mark of harvest by the end of February. Some areas had a bit of rain in the last weeks of February with areas that had small problem with rot. The harvest seem to be down in all areas but more so in the warmer and dry land areas. The continued weakening of the SA Rand has helped with renewed interest for SA bulk product making SA pricing very competitive.

• 2016 harvest is in full swing and many wineries will be finished by end of March. A definite smaller crop is

expected because of dry conditions in all areas. The exact ideas on the crop varies at this stage and some

areas (warmer dry land areas) are expecting up to 30% less crop than 2015. Other areas are expected to

be between 5% and 10% down form last year.

• Pricing on most varietals on 2016 wines has gone slightly up in Rand terms (between 3 and 10%) but even

with this increase, the price in € and $ terms it is still 16% to 20% cheaper than last year this time because

of exchange rate differences.

• There is still some good deals available on 2015 dry white wine, rose and dry red wine depended on quick

shipment.

• The quality of the 2016 crop is good at this stage and new vintage wine will be very early available. Some

local brands has already released some small batches of Sauvignon Blanc into local market by mid

February!

• Local sales of all natural wines has seen a growth of about 8% over the last 12 months. Biggest changes

were on the sweet red and Rose products and in the 3L and 5L packaging. Local sales equates to about 383

Million L of wine per year.

• Exports of SA wine over the last 12 months equates to about 413 million liters of wine. This is almost the

same as 2014. Of this bulk = 241 million liters and packaged = 174 million liters.

• The 413 million liters is made up as follows = Red wine (168 million liters) + White Wine (201 million liters) +

Rose (37 million liters) + Fortified and Sparkling products (7.5 million liters)

TIME ON TARGET



FOCUS & FACTS

SPAIN



2015White Blends

(Higher Quality)0.40 – 0.60 ↑ 2015

Generic Red(Higher Quality)

0.35 – 0.50 ↑

2015 Sauvignon Blanc 0.52 – 0.56 ↔ 2015 Cabernet Sauvignon 0.50 – 0.65 ↔

2015 Chardonnay 0.60 – 0.65 ↔ 2015 Merlot 0.55 – 0.70 ↔

2015 Generic Rosé 0.30 – 0.40 ↑ 2015 Tempranillo 0.40 – 0.65 ↑

2015 Varietal Rosé 0.40 – 0.50 ↑ 2015 Syrah 0.45 – 0.60 ↔

2015 Moscatel 0.45 – 0.60 ↔


The Spanish market has been very active on both national and international basis with white wines being

especially active. As of this writing, with the increased activity, we see volumes already running low, and

pricing on the rise for both generic and varietal

The combination of a smaller than average 2015 white grape crop, and a very dry and unusually warm

winter, is causing early vine development with a concern a potential frost, is causing more than the

normal speculation.

For other categories, such as generic red and rosé wines, the available inventory decent but we are

seeing a slight market price increase due to active demand from traditional exportation markets (France,

Germany) and a decreasing inventory.

With this knowledge, buyers are strongly encouraged to secure their mid-term needs with at least a

minimum 3-4 month coverage.

• Spanish 2015 export figures have recently been released and analyzed by the OEMV and show record sales for wines.

• Value = €2.367 million, + 4,4%

• Volume = 23.96 million hectoliters, + 7,5%

• However, the average price has decreased to €1.10/liter, down 2.9% vs 2014

• Bottled appellation ines (D.O wines) is the category performing best in terms of value especially in North America

• Bulk wine lead the sales in terms of volumes, mainly to France, Germany and China


BUYER’S PAGE:

SCANDINAVIA – Who wants what, and how do people buy

SWEDEN – Systembolaget is the monopoly

• Wine in all price categories

• Wine with lower alcohol content and alcohol free

• Organic and ethically certified wines

• Smaller packagings and different packaging such as PET, lightweight glass

• New product types and new countries of appellations

• Systembolaget’s sales (wine, beer, spirit) in 2014 totaled 470 million liters

• Retail value approximately € 4 billion

• Sales of Organic & Ethically certified wines continue to grow.

• Sales of BIBs account for 52.4 % of the total volume of wine sold

• Red wine accounts 52.4 % of total wine sales. However, red wine accounts for 28% of the value of Systembolaget’s

sales and 22% of its sales by volume.

• Italy domintaes with approximately 40% of the market share by volume.

• South Africa, Spain & Australia are follow, but all of these countries lost market share in 2014.

• Chile, Portugal & New Zealand, by contrast, all showed growth, mainly due to increased Organic options

• Sales of Organic wines totalled 13.1 million of liters, 12,7 % of total wine sales

• White wine accounts for 31% of total wine sales

• South Africa dominates with 22.7% market share by volume, followed by France

• Market share of Organic white wines is 12.2% (previous year only 5%).

• A total of 7.5 million liters of Organic white wines were sold in 2014.

• Rosé wines accounted for 7.8 % of total wine sales in 2014, and growing

DENMARK – Open market no monopoly

• Danish wine consumers are very price sensitive, and concerned with the social and environmental impact of the

products they buy.

• Danish government is concerned with the alcohol consumption resulting in high excise duties for wine

• In 2013, sales of Fairtrade products increased by 13% to € 81 million. Per capita expenditure on Fairtrade products is

the highest in the EU and among the highest worldwide

• Danish consumers want lighter, healthier and more easily drinkable wines for everyday consumption.

• Improvements in technology used during shipping of bulk wine have given a boost to demand for bulk wine.

• Sales of Bag-in-Box have increased significantly over recent years, now accounting for about 30% of the total Danish

wine market.

• New World wines are gaining ground in the Danish wine market. Chile accounts for 12% of total imports, followed

closely by South Africa at 9%

FINLAND – Alko is the monopoly

• The selection of wines in Alko is quite large. There are wines from at least 28 countries .

• All alcohol is taxed quite heavily in Finland. Almost half of the price of a bottle of wine consists of taxes (45 %).

• The most popular red wines come from Chile (28.3%), Spain (16.5%), Italy (13.6%), Australia (10.7%) & Argentina

(9.0%)

• The most popular white wines come from Chile (23.9%), South Africa, (17.2%) Germany (10.9%), Italy (9.3%) and

France (8.9%).

• Organic & Ethical wines are showing positive results at the Finnish Monopoly. Organic wine accounts for 9% of sales.

• Ethical products account for 5% of sales)

NORWAY – Vinmonopolet is the monopoly

• The monopoly has over 300 shops throughout the country

• Italian and French wines are most popular

• The most popular wines are available in all the shops, while those not in stock in one outlet can be ordered without

additional charges.

• Wine account for 35 % of al consumption in Norway, Beer 44%, Spirits 19%

• Norwegians are traveling more thus able to frequently shop in tax-free, and border shops in Sweden where prices are

lower

ARGENTINAVintage Variety Trend Vintage Variety Trend

2015 Generic White 0.32 - 0.35 ↑ 2015 Generic Red 0.40 - 0.45 ↑

2015 Generic White (Criolla) 0.30 - 0.32 ↑ 2015 Cabernet Sauvignon 0.70 - 0.80 ↑

2015 Chardonnay 0.65 - 0.75 ↑ 2015 Malbec Entry-Level 0.80 - 0.90 ↑

2015 Torrontes 0.40 - 0.50 ↑ 2015 Malbec Mid-Level 0.90 - 1.20 ↑

2015 Sauvignon Blanc 0.55 - 0.65 ↑ 2015 Malbec Premium 1.20 + ↑

2015 Muscat 0.35 - 0.45 ↑ 2015 Syrah / Merlot 0.60 - 0.70 ↑

2015 Bonarda 0.50 - 0.70 ↑ 2015 Tempranillo 0.60 - 0.70 ↑

Vintage Variety Trend Vintage Variety Trend

NV Dry White 0.44 - 0.52 ↑ NV Dry Red 0.52 - 0.63 ↑

2015 Chardonnay 0.56 - 0.67 ↑ 2015 Cabernet Sauvignon 0.59 - 0.70 ↔

2015 Sauvignon Blanc 0.63 - 0.74 ↑ 2015 Merlot 0.52 - 0.67 ↔

2015 NZ Marlborough SB 3.60 - 4.08 ↓ 2015 Shiraz 0.59 - 0.70 ↔

2015 Pinot Gris 0.89 - 1.04 ↔ 2015 Muscat 0.52 - 0.67 ↔

AUD Rate: 0.741600 NZD Rate: 0.679900

CALIFORNIAVintage Variety Trend Vintage Variety Trend

2014 Generic White 0.60 - 0.80 ↔ 2014 Generic Red 0.80 - 1.05 ↓

2014 Chardonnay 1.05 - 1.32 ↔ 2013/2014 Cabernet Sauvignon 1.58 - 2.11 ↑

2014 Pinot Grigio 1.58 - 1.98 ↔ 2014 Merlot 1.18 - 1.58 ↔

2014 Muscat 0.92 - 1.32 ↓ 2014 Pinot Noir 1.72 - 2.11 ↑

2014 White Zinfandel 0.85 - 0.99 ↔ 2014 Syrah 1.18 - 1.58 ↔

2014 Colombard 0.73 - 0.99 ↔ 2013/2014 Zinfandel 1.45 - 1.85 ↔

CHILEVintage Variety Trend Vintage Variety Trend

NV Generic White 0.50 - 0.55 ↔ NV Generic Red 0.38 - 0.45 ↔

2015 Chardonnay 0.80 - 1.05 ↔ 2015 Cabernet Sauvignon (Basic) 0.47 - 0.52 ↔

2015 Chardonnay (Varietal Plus) 1.15 - 1.40 ↔ 2015 Cabernet Sauvignon 0.55 - 0.80 ↔

2015 Sauvignon Blanc 0.60 - 0.85 ↔ 2014/2015 Cabernet Sauvignon

(High Quality)1.50 - 4.00 ↔

2015 Pinot Noir 0.85 - 1.15 ↔ 2015 Merlot 0.50 - 0.63 ↔

2015 Syrah 0.50 - 0.58 ↔ 2015 Malbec 0.60 - 0.70 ↔

2015 Carmenere 0.50 - 0.58 ↔ 2015 Malbec (Varietal Plus) 0.00 - 0.00 ↔

AUSTRALIA & NEW ZEALAND

Export Pricing: USD per liter

Currency Conversion Rates as of February 5, 2016

Price Price

Pricing in bulk; FCA

Price Price

Price Price

Price Price

Pricing in bulk; FOB Chilean Port

Pricing in bulk; FCA

FRANCEVintage Variety Trend Vintage Variety Trend

2015 Generic White 0.88 - 0.93 ↓ 2015 Generic Red 0.71 - 0.88 ↔

2015 Chardonnay IGP 1.37 - 1.54 ↓ 2015 Cabernet Sauvignon IGP 1.04 - 1.21 ↔

2015 Chardonnay VDF 1.21 - 1.32 ↔ 2015 Cabernet Sauvignon VDF 0.93 - 1.04 ↔

2015 Sauvignon Blanc IGP 1.04 - 1.21 ↑ 2015 Merlot IGP 0.93 - 1.15 ↓

2015 Sauvignon Blanc VDF 1.04 - 1.21 ↑ 2015 Merlot VDF 0.93 - 0.99 ↔

2015 Generic Rosé IGP 0.82 - 0.93 ↔ 2015 Syrah / Grenache 0.93 - 1.10 ↓

2015 Generic Rosé VDF 0.82 - 0.93 ↓

2015 Varietal Rosé IGP 0.93 - 0.99 ↓

Rate: 1.098900

GERMANYVintage Variety Trend Vintage Variety Trend

2014/2015 White Wine 0.82 - 0.82 ↔ 2014/2015 Red Wine 0.71 - 0.88 ↔

2014/2015 Pinot Grigio 1.04 - 1.32 ↔ 2014/2015 Dornfelder 1.04 - 1.15 ↔

2014/2015 Riesling 1.04 - 1.32 ↔ 2014/2015 Pinot Noir 0.93 - 1.10 ↔

Rate: 1.098900

ITALY

Vintage Variety Trend Vintage Variety Trend


2015 Chardonnay 0.66 - 0.93 ↔ 2015 Cabernet Sauvignon 0.66 - 0.88 ↔

2015 Pinot Grigio 1.26 - 1.37 ↑ 2015 Merlot 0.60 - 0.82 ↔

2015 Prosecco 2.75 - 2.86 ↔ 2015 Chianti 1.70 - 1.98 ↔

Rate: 1.098900

SOUTH AFRICAVintage Variety Trend Vintage Variety Trend

2015/2016 Generic White 0.32 - 0.35 ↑ 2015/2016 Generic Red 0.37 - 0.42 ↔

2015/2016 Chardonnay 0.42 - 0.52 ↑ 2015/2016 Cabernet Sauvignon 0.46 - 0.55 ↑

2015/2016 Sauvignon Blanc 0.42 - 0.55 ↑ 2015/2016 Ruby Cabernet 0.39 - 0.41 ↔

2015/2016 Chenin Blanc 0.32 - 0.37 ↑ 2015/2016 Merlot 0.44 - 0.52 ↔

2015/2016 Muscat 0.37 - 0.41 ↔ 2015/2016 Pinotage 0.41 - 0.49 ↔

2015/2016 Generic Rosé 0.32 - 0.39 ↔ 2015/2016 Shiraz 0.44 - 0.54 ↔

2015/2016 Cultivar Rosé 0.37 - 0.43 ↔ 2015/2016 Cinsaut 0.38 - 0.41 ↔

Rate: 0.065000

SPAINVintage Variety Trend Vintage Variety Trend


2015White Blends

(Higher Quality)0.44 - 0.66 ↑ 2015

Generic Red (Higher

Quality)0.38 - 0.55 ↑

2015 Sauvignon Blanc 0.57 - 0.62 ↔ 2015 Cabernet Sauvignon 0.55 - 0.71 ↔

2015 Chardonnay 0.66 - 0.71 ↔ 2015 Merlot 0.60 - 0.77 ↔

2015 Generic Rosé 0.33 - 0.44 ↑ 2015 Tempranillo 0.44 - 0.71 ↑

Pricing in bulk; FOB Cape Town

Pricing in bulk; Ex-Winery




Price Price

Price Price

Price Price

Price Price

Price Price

CHINA/ASIA PACIFICSimone George

T. +61 8 8361 9600Email: [email protected]

FRANCE/ITALYFlorian Ceschi


GERMANYChristian Jungbluth


SPAINNicolas Pacouil


UK / SCANDINAVIA / HOLLANDCatherine MendozaT. +33 4 67 913533

Email: [email protected]

SOUTH AFRICAVic Gentis


-or-Petre Morkel

T. +27 82 33 88 123Email: [email protected]

AFRICA & MIDDLE EASTEmile Gentis

T. +27 72 23 81 703Email: [email protected]

CRAFT BEERRob Bolch


ARGENTINAEduardo Conill


AUSTRALIA/NEW ZEALANDMatt TydemanSimone George



CALIFORNIA – IMPORT / EXPORTCEO - Greg Livengood

Steve DorfmanT. +415 458-5150

Email: [email protected]: [email protected]

CALIFORNIA – DOMESTICT. +415 458-5150

John Ciatti – [email protected] Proctor – [email protected] White – [email protected] Welch – [email protected]

CONCENTRATEGreg MaGill

T. 559 977 [email protected]

CANADA & US CLIENTS OUTSIDE OF CALIFORNIA

Dennis SchrappT. 905/354-7878


CHILEMarco Adam

T. +56 2 2363 9206 or T. +56 2 2363 9207


CONTACT US

global market update march 2016 - wine australia · • the market for tintorero is also increasing...

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