Data on the German Wine Market

O.I.V. Meeting Siena, 28.5.2005

Data on the German Wine Market

Dr. Rudolf NickenigGerman Winegrowers‘ Association, Bonn

O.I.V. Meeting Siena, 28.5.2005

S U R V E Y

• Global and EU Wine Trade

• German Wine Market

• Wine Consumption

• Sales Structure

• Points of Purchase

• Consumer Expenditure

• Wine Price Development

• Distribution Channels

• Consumer Age

O.I.V. Meeting Siena, 28.5.2005

30

35

40

45

50

55

60

65

70

75

86-90 91-95 96-00 00 01 02 03

Mio hl

43,7

74,0

Global Wine Trade [Mio hl]

Basis: Export Volume OIV

+ 69 %

O.I.V. Meeting Siena, 28.5.2005

-

5

10

15

20

Mio

HL

IMPORT EXPORT

10,8 Mio hl (+107%)

12,8 Mio hl (-10 %)

EU External Wine Trade

O.I.V. Meeting Siena, 28.5.2005

-

10

20

30

40

an

d

PL

SL

W TS

SW DK

ÖS

BE

GR

NL

HU

PT

UK

ES

DE IT FR

Mio hl

Internal EU: Wine Consumption 2004 by country

(ca. 134 Mio hl)

O.I.V. Meeting Siena, 28.5.2005

Tabel Wine Tabel Wine2 0 0 4 Total D-Wine Imp.-Wine Sparkl. Wine

Produktion Mio hl 10,0 9,3 0,7

Export Mio hl 2,8 2,0 0,7 0,1

Import Mio hl 13,1 10,5 2,6

D-Markt Mio hl 19,5 7,2 9,4 2,9

Per Capita Liter 23,6 8,7 11,4 3,5

* rounding differences possible

German Wine Market 2004

O.I.V. Meeting Siena, 28.5.2005

0

5

10

15

20

25

1963 1967 1971 74/75 78/79 82/83 86/87 90/91 94/95 98/99 02/03

D-Wine Imp.-Wine Sparkl. Wine

Mio hl

Wine Consumption 1963 - 2004

O.I.V. Meeting Siena, 28.5.2005

German Market: Global Data

Purchase of Wine by Volume

• 80 % private households

• 20 % gastronomy, festivities, ...

• population: 82,5 Mio

• private households: 35 Mio

O.I.V. Meeting Siena, 28.5.2005

49 49 49 48 45 46 43

51 51 51 52 55 54 57

0

25

50

75

100

1998 1999 2000 2001 2002 2003 2004

Import Wine

German Wine

Sales Structure of Still Wine Purchase: German Wine, Import Wine

Basis: %-volume

O.I.V. Meeting Siena, 28.5.2005

8,4 8,2 8,4 8,3 7,7 8,3 7,8

40,2 40,0 41,2 41,1 43,3 48,4 48,3

51,7 51,1 50,6 48,4 43,5 43,2

52,0

0

25

50

75

100

1998 1999 2000 2001 2002 2003 2004

Rosé

Red

White

Sales Structure of Still Wine Purchase: White, Red, Rosé

Basis: %-volume

O.I.V. Meeting Siena, 28.5.2005

Still Wine: Points of Purchase

basis: %-voulme

O.I.V. Meeting Siena, 28.5.2005

Still Wine: Points of Purchase

basis: %-value

O.I.V. Meeting Siena, 28.5.2005

Still Wine Market Development in Germany

Average freqency of shopping (priv. hh)

% of wine buying priv. hh

year

O.I.V. Meeting Siena, 28.5.2005

Consumers AgeBasis: Wine Consumption by %-Volume

7,7

27,5 29,6 35,2

0

10

20

30

40

< 34 Jahre 35 - 49 50 - 64 > 65 years

O.I.V. Meeting Siena, 28.5.2005

Germany: M a r k e t s 2 0 0 4

Change of Expenditure of Private Households

Total

- non alcoholics

- alcoholics

Confectinonery

Fresh Products

Food

Beverages

- hot beverages

2004

O.I.V. Meeting Siena, 28.5.2005

Total beveragealcoholicswine

Private Household Expenditure Budget [Mrd. €]

O.I.V. Meeting Siena, 28.5.2005

Alcoholic Beverages

Consumer Expenditure (priv. hh)

spirits

table wine

sparkling wine

beer

alc. mixeries

all othersTotal Mrd. €

O.I.V. Meeting Siena, 28.5.2005

Attention on

- quality

- price

Price is the main decision factor for Germans

O.I.V. Meeting Siena, 28.5.2005

Wine Price Developement

in Germany

€ / 0,75 l bottle

O.I.V. Meeting Siena, 28.5.2005

Frequency of Prices, Price Corridors

basis: volume per price segment

> 3,00 € / 0,75 l

> 2,00-2,99 € / 0,75 l

< 1,99 € / 0,75 l

O.I.V. Meeting Siena, 28.5.2005

New World

Germany

France

Italy

Wine Price Developement

by Countries [€ / 0,75 l]

O.I.V. Meeting Siena, 28.5.2005

Consumer share %

(priv. hh)

Market Share

of New World Wines

Market share%

O.I.V. Meeting Siena, 28.5.2005

Wine: Price Development and Distribution Channels

Premium

Food trade

Discount

€ / 0,75 L

O.I.V. Meeting Siena, 28.5.2005

2,08 €

1,99 €

2,36 €

2,48 € 2,47 €

2,34 € 2,32 €2,24 €

2,10 €2,15 €

2,04 € 2,05 € 2,02 €

1,72 €1,76 €

2,20 €2,19 €2,18 €2,14 €

2,04 €

2,52 €

1,60 €

1,70 €

1,80 €

1,90 €

2,00 €

2,10 €

2,20 €

2,30 €

2,40 €

2,50 €

2,60 €

1998 1999 2000 2001 2002 2003 2004

White

Red

Rosé

Price Development by Colour (all Wines) [average price in € / 0,75 l]

O.I.V. Meeting Siena, 28.5.2005

quantity change change

%-market share

€/Liter €/Liter in %

Wine-TOTAL 100 2,81 - 0,02 - 0,6

- White 40 2,65 - 0,06 - 2,3 - Red 52 2,99 0,01 0,3 - Rosé 8 2,35 0,06 2,6

German Wine 43 3,13 0,01 0,3 - White 25 2,92 - 0,08 - 2,7 - Red 14 3,65 0,16 4,2 - Rosé 4 2,47 0,11 4,3

Import Wine 57 2,56 - 0,04 - 1,7 - White 15 2,19 - 0,05 - 2,2 - Red 38 2,74 - 0,05 - 1,8 - Rosé 4 2,25 0,02 0,7

* rounding differences possible

Still Wine Market 2004

O.I.V. Meeting Siena, 28.5.2005

%-Veränd.2004/2003

2001 2002 2003 2004*)€/l €/l €/l €/l W e r t

Wine TOTAL 3,10 2,94 2,87 2,81 - 2,1 White 2,93 2,77 2,72 2,65 - 2,6 Red 3,29 3,12 3,09 2,99 - 3,2 Rosé 2,77 2,69 2,29 2,35 2,6

German Wine 3,33 3,36 3,21 3,13 - 2,5 White 3,03 3,02 2,98 2,92 - 2,0 Red 4,06 4,02 3,83 3,65 - 4,7 Rosé 2,91 3,12 2,38 2,47 3,8

Import Wine 2,88 2,6 2,58 2,56 - 0,8 White 2,68 2,32 2,24 2,19 - 2,2 Red 2,98 2,75 2,76 2,74 - 0,7 Rosé 2,62 2,28 2,18 2,25 3,2

*) priliminary

Ausgaben pro Liter Wein

Still Wine: Consumer Spendings on Wine (priv. hh)

O.I.V. Meeting Siena, 28.5.2005

Still Wine Market 2004Regional Share by volume in %

%-Population %-Wine Consumption

D-West 83 79D-Ost 17 21

Berlin 5 4Südost 9 7Nordost 9 7Bayern 14 17Baden-Württemberg 12 15Mitte 13 16Nordrhein-Westfalen 22 18Nordwest 16 16

O.I.V. Meeting Siena, 28.5.2005

Thank you for attention !