The wine market in Germany in 2012

Prof. Dr. Dieter Hoffmann,

Geisenheim University, 2013

2

Nr. 1 by imports 16 Mio. hl

Nr. 1 by sparkling wine consumption 4 l / head

Nr. 4 by total wine consumption 21 Mio. hl

Nr. 11 by wine production 9.5 Mio. hl

turnover retail level 7.3 Bill. €

No wine tax, only VAT, no limitation on trade: liberal

German wine market was in 2012…

3

Production: 9.0 Mio. hl after 9.2 Mio. hl in 2011

Consumption: in volume + 2 - 5 %

in value + 6 %

Export: in volume + 4 %

Import: in volume + 2 %, mainly for re-exporting

decrease of imports in bottles and

increase of imports in bulk

German wine market was in 2012 …

4

78/7

9

79/8

0

80/8

1

81/8

2

82/8

3

83/8

4

84/8

5

85/8

6

86/8

7

87/8

8

88/8

9

89/9

0

90/9

1

91/9

2

92/9

3

93/9

4

94/9

5

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

08/0

9

09/1

0

10/1

1

11/1

2*

0

5

10

15

20

25

Import

Export

Total consumption

Mio. hl

German Wine Production

3)

2)1)

Stock

German wine market in 2012 …

5

Jan

00

Apr

00

Jul

00

Oct

00

Jan

01

Apr

01

Jul

01

Oct

01

Jan

02

Apr

02

Jul

02

Oct

02

Jan

03

Apr

03

Jul

03

Oct

03

Jan

04

Apr

04

Jul

04

Oct

04

Jan

05

Apr

05

Jul

05

Oct

05

Jan

06

Apr

06

Jul

06

Oct

06

Jan

07

Apr

07

Jul

07

Oct

07

Jan

08

Apr

08

Jul

08

Oct

08

Jan

09

Apr

09

Jul

09

Oct

09

Jan

10

Apr

10

Jul

10

Oct

10

Jan

11

Apr

11

Jul

11

Oct

11

Jan

12

Apr

12

Jul

12

Oct

12

0

50

100

150

200

250

Frankreich, Vins de Table Elsass, Riesling Italien, Pinot Grigio IGT Spanien, Cuenza weiß Rheinhessen, Standard weiß QbAPfalz (SW)-Riesling QbA (SW)

Bulkwine Prices of Selected Wine Categories in Europa ( in €/hl)€/hl

6

Economic situation in wine business in Germany in 2012

7

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

*

TafelweinTable Wine

QualitätsweinQuality Wine

WeißweinWhite Wine

RotweinRed Wine

Wein gesamtWine Total

Mio.

1)

Still wine import total

Table Wine

White Wine

Red Wine

AOP, DOP's

Source: www.weinoekonomie-geisenheim.de

Import of still wine (till 15 % vol.) to Germany

8

( 15 % vol.) Source: www.weinoekonomie-geisenheim.de

Import of bulk wines to Germany

0,0

1,0

2,0

3,0

4,0

5,0

6,0

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

*

Tafelwein weißTable wine White

Tafelwein rot/roséTable Wine Red/Rosé

Qualitätswein weißQuality Wine White

Qualitätswein rot/roséQuality Wine Red/Rosé

Mio. hl

1)

9

0

20

40

60

80

100

120

0

2

4

6

8

10

12

14

16

18

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Mio. hl 1000 Hektar

Wein gesamt

Ertragsrebfläche

Tafelwein

Qualitätswein

Prädikatswein

Prädikatswein

Source: www.weinoekonomie-geisenheim.de

Wine production in Germany

Structure of wine production in Germany 2012

Cultivated Grape Area : 98 000 ha in productionWine Production : 9.2 Mio. hl on Average (2010: 6.9)Wine Growers : 26.000 > 0.3 ha (+ 25 000 < 0.3 ha)

Wine Cooperatives(With own vinification and bottling)

Number: 111Members: ca. 49 000

Surface under vine: 32 000 ha

Production: 2,8 Mio. hl

Sales (Mio. hl):

Bulk wines Bottled Wines 0.4 2.4

Wine Growers with Bulk WineNumber: ca. 10 000

Surface under vine: 36 000 ha

Production: ca. 3.4 Mio. hl

Sales (Mio. hl):

Bulk wines

3.4

Wine Estates Selling Bottled WinesNumber: ca. 8 000

Surface under vine: ca. 30 000 ha

Production: 3.0 Mio. hl

Sales (Mio. hl):

Bulk wines Bottled Wines

0.4 2.6

Source: www.weinoekonomie-geisenheim.de

Structure of wine bottling in Germany (Mio. hl) 2012

Import Bulk Wine 9.5

‚Sparkling‘ WineriesNumber: 1123, (10 for 90 %)Production: 2.85

‚Still Wineries‘Number: ca. 200Production: 10.9

Bottled Wine 5.5(Pearl Wine 0.7)

Sparkling Wine

Export: 0.4Import: 0.85

Export

Bulk Wine: 0.7 Bottled Wine: 3.7

German bulk wine: 0.2: German bulk wine: 4.0:

3.3Sparkling Wine

2.76.9

10.9 still wineries 2.4 cooperatives 2.6 estates15.9 total

17.7Still Wine

Total 21 Mio. hl

Source: www.weinoekonomie-geisenheim.de

14.6

1.1(3.50)

3.1

2,6

1,2

5.1

5.7

•Value ValueBill. € (outlets) (€/l) Bill. €

Super-/Hypermarket (3.80)(40 000)

Discount (2.60) (14 000)

Wine shops (10.00)(4 000)

Estates and (6.00) Cooperatives(8 000)

outdoor

6.2

home consumption

mas

s m

arke

t

pre

miu

m m

arke

t

1.5

1.9

1.2

1.6

3.9

3.4

VolumeMio.hl

P.o.P.‘s for home consumption7.3 17.7

Volume ValueMio. hl Bill. €

Still wine distribution in Germany in 2012

Source: www.weinoekonomie-geisenheim.de

13

• declining production -worldwide-

• increasing consumption

• new products: Glühwein

• increasing prices

• fast globalisation of the wine market

• Germany: the central European bottling location

Trends in the wine market

14

highly attractice because of increasing demand,

highly attractive because of fast increasing imports,

very competitive on quality, price and promotion,

very complex through a large diversity of channels,

open-minded about wines from all over the world,

free of wine- and other taxes, excl. 19 % VAT,

strictly quality-managed.

Summary: the German wine market is …

15

Wine Consumer Survey in Germany in 2011:

sample: 16 years and older,

total sample 2068 people,

1249 wine consumer (60 %)

Segmentation by social status: A upper class

B middle class

C simple class

(by income, education, profession)

16

Prof. Dr. Dieter Hoffmann

dieter.hoffmann@hs-gm.de (new)

(+49) 06722-502-381

www.weinoekonomie-geisenheim.de/

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