Current and Future Trends in the International Wine and Spirit Markets – with an Outlook to 2010 ( Updated in December 2006 )

Current and Future Trends

in the International

Wine and Spirit Markets –

with an Outlook to 2010

( Updated in December 2006 )

Methodology

For the 5th time, and since 2002, the International Wine and Spirit Record (IWSR) has been commissioned by Vinexpo to produce a detailed report on global consumption, production and international trade for wines and spirits, with forecasts to 2010.

Since 1971, the IWSR database has been providing the most detailed, accurate and largest running source of data on the global beverage alcohol market.

The current study covers 28 wine producing countries and 114 markets for wine and spirits consumption.

Conversion Formula

1 Hectoliter = 100 Litres = 26.42 US Gallons

1 Million Hectoliter = 26,417,210 US Gallons

Wine Production

Source: Vinexpo / The IWSR 2007

Volume - Millions of Hectoliters

Wine

+5.74%

2001 2005 2010

Wine Distilled for Brandy

270.15

271.41 278.3 287

-8.6% +24.48%14.81

16.85 13.54

+3.18% +2.03%264.76256.60

+2.53% +3.12%

1

Rank Country 2001 20052001/200

52010

2005/2010

1 France 55.34 50.50 -8.74% 51.50 1.98%

2 Italy 52.29 50.50 -3.43% 49.25 -2.48%

3 Spain 31.61 35.30 11.67% 39.30 11.33%

4 USA 27.31 33.89 21.14% 30.60 -7.52%

5 Australia 10.77 15.59 44.86% 17.15 9.98%

6 Argentina 15.84 15.22 -3.88% 15.50 1.84%

7 Germany 8.89 10.50 18.10% 9.50 -9.52%

8 Chile 6.48 7.88 21.53% 9.51 20.63%

9 South Africa 6.39 7.58 18.59% 9.25 22.13%

10 Portugal 7.79 7.25 -6.92% 6.65 -8.28%

Top 10 Total 222.67 233.41 4.82% 238.21 2.06%

Global Total (excludes wine for

brandy distillation)256.60 264.76 3.18% 270.15 2.03%

Top 10 Wine Producing Countries Volume - Millions of Hectoliters Including Wines Distilled for Brandy

49%


2

Wine Consumption


Volume –Millions of Hectoliters

Still Wine* Sparkling Wine

+9.15%

16.004

2001 2005 2010

221.21

218.8227.88

238.83

+8.41%+10.07%

14.76

17.62

+3.84% +4.40%

211.88204.04

16.01

+4.15% +4.80%

3

*Below 15% Alcohol

Top Ten Still Wine* Consuming Countries Volume - Millions of Hectoliters

43.03%

*Below 15% Alcohol


4

9.87%100.178.54%91.17384.01Total Top 10

6.11%224.823.71%211.87204.29Total World

35.91%5.5822.45%4.13.35China10

29.97%6.3737.28%4.93.57Russian

Federation9

3.39%5.154.12%4.984.79Romania8

-7.11%9.01-8.32%9.710.58Spain7

-2.94%10.35-12.84%10.6712.24Argentina6

8.29%12.8724.57%11.899.54UK5

7.31%23.545.94%21.9320.70Germany4

18.69%27.3019.59%2319.23USA3

1.09%27.202.89%26.9126.15Italy2

-9.31%24.89-11.84%27.4431.13France1

2005/2010

20102001/200

520052001CountryRank

Rank Country 2001 2005 2001/2005 2010 2005/2010

1 Germany 3.66 3.55 -3.03% 3.80 7.05%

2 France 2.79 2.71 -2.83% 2.68 -1.18%

4Russian

Federation1 1.45 45.09% 1.77 21.96%

3 USA 1.11 1.23 10.52% 1.37 11.47%

5 Italy 0.89 1.06 18.39% 1.12 5.87%

6 Spain 0.77 0.80 3.51% 0.84 5.65%

7 UK 0.47 0.68 45.32% 0.87 26.65%

8 Australia 0.33 0.45 37.31% 0.58 28.95%

9 Poland 0.40 0.39 -4.70% 0.37 -4.42%

10 Argentina 0.16 0.20 25.15% 0.25 23.04%

Total Top 10 11.58 12.51 7.99% 13.63 8.98%

Total World 14.88 15.87 6.66% 17.47 10.13%

Top Ten Sparkling Wine Consuming Countries Volume – Millions of Hectoliters

78.16%


5

Consumption / Capita / Year (in Liters)


10

20

30

40

2001 2005 2010

Netherlands29.8

Australia31.9

U.K28.5

Sweden24.6

Norway20.3

Canada13.6

USA12.7

6

Wine Consumption (By Color)Volume – Millions of Hectoliters / Still


7

Red White Rose

19.49

86.02

106.36 113.92

86.49

20.8

98.96

86.31

18.77

+0.55%

+6.68%

+7.11%

-0.33%

+3.84%

+7.48%

+3.8% +4.40%2001 2005 2010

(50.19%)

Wine Consumption Value –Billions of Dollars, Data from 2005*


*Retail sales including all taxes.

8

Still Sparkling

+20.11%

15.37+10.23%13.94

100.4391.6283.5

16.61+8.08%

+9.72% +9.62%

97.44106.99

117.04

+ 9.80% +9.4%2001 2005 2010

Rank Country 2001 2005 2001/2005 20102005/201

0

1 USA 15.65 19.17 22.49% 22.75 18.70%

2 France 9.93 8.86 -10.81% 8.70 -1.71%

3 UK 6.80 8.51 25.21% 9.48 11.32%

4 Germany 7.36 7.74 5.11% 8.37 8.13%

5 Italy 6.48 6.70 3.49% 6.85 2.16%

6 Australia 2.42 2.81 16.43% 3.55 26.16%

8 Japan 2.85 2.61 -8.22% 2.68 2.49%

7 Spain 2.59 2.40 -6.92% 2.28 -5.32%

9 Canada 1.6 2.04 27.65% 2.44 19.60%

10 Netherlands 1.65 1.95 18.64% 2.08 6.60%

Total Top 10 57.30 62.8 9.59% 69.17 10.15%

Total World 83.5 91.62 9.72% 100.43 9.62%

68.5%



Top 10 Countries for Retail Sales Value – Billions ofDollars, Data from 2005*

9

Wine Consumption (By Price Point)


Volume – Millions of Hectoliters / Still *

*Retail Prices Including All Taxes.

Under $5 $5-$10 Over $10

35.238

2001 2005 2010

13.16

40.92

167.13

11.09

31.46

161.5

+1.29%

+19.21%

+1.02%

+17.2%

+9.12%

+2.44%

+3.8% +4.4%

11.23

163.15

37.5

10

Global Wine Consumption (By Origin)


Volume –Millions of Hectoliters / Still

Domestic Imported

+ 8.41%

- 0.8%

+ 20.9%+ 14.65%

+ 1.82%

42.44

161.61

204.04

2001

51.30

160.57

211.88

2005

58.82

162.39

221.21

2010+ 3.8% + 4.4%

11

Rank Country 2001 2005 2001/2005

1 Italy 14.79 13.28 -10.21%

2 France 14.27 12.51 -12.39%

3 Spain 8.88 12.42 39.87%

4 Australia 4.17 6.86 64.46%

5 Chile 3.1 4.16 34.29%

6 USA 2.69 3.34 24.07%

7 Germany 2.22 3.02 36.12%

8 South Africa 1.76 2.8 59.09%

9 Argentina 0.87 2.12 143.17%

10 Portugal 0.81 1.78 119.7%

Top Ten Exporters Volume – Millions of Hectolitrers / Still


12

Rank

Country 2001 20052001/200

52010

2005/2010

% of Consumpti

on

1 Germany 10.90 12.57 15.39% 14.03 11.61% 57.3%

2 UK 9.53 11.87 24.5% 12.85 8.25% 99.8%

3 USA 4.2 6.17 46.85% 7.86 27.37% 26.83%

4Netherlan

ds3.15 3.59 14.08% 3.82 6.49% 100%

5 Bel / Lux 2.33 2.49 7.01% 2.53 1.77% 95.09%

6 Canada 1.57 2.02 28.55% 2.43 20.48% 70.22%

7Switzerlan

d1.74 1.69 -2.76% 1.67 -1.07% 62.29%

8 Denmark 1.57 1.57 0.06% 1.68 6.68% 100%

9 Sweden 1.3 1.51 15.99% 1.69 11.93% 100%

10 Japan 1.37 1.26 -7.77% 1.38 9.29% 56.59%

Top 10 Consumers of Imported Still Wine Volume – Millions of Hectoliters


13


Total World Consumption of SpiritsVolume – Billions of 9 Liter Cases

+13.92%+13.92%

+7.48%

+6%

2.03

2.18

2.31

2001 2005 2010

14

Spirits 2001 2005 2001/2005 2010 2005/2010

Vodka 427.54 504.11 17.89% 526.06 4.38%

Brandy 106.30 117.31 10.36% 126.01 7.42%

Rum 104.44 113.39 8,57% 129.04 13.80%

Scotch Whisky 75.93 78.08 2.83% 82.91 6.19%

Liqueurs 69.92 74.09 5.96% 76.94 3.85%

Gin 59.07 52.95 -10.36% 47.23 -10.80%

Tequila 17.12 19.65 14.73% 25.2 28.24%

Cognac / Armagnac

8.72 9.78 12.18% 11.3 15.54%

Other spirits 1,130.62 1,180.78 4.44% 1,253.82 6.19%

Total World 2,025.74 2,177.29 7.48% 2,307.86 6%


Spirit Consumption by Category Volume – Millions of 9 Liter Cases

15

Spirit Consumption Value – Billions of Dollars, Data from 2005

+12.11%+12.11%

161.19

+5.45%

+6.32%

169.98

180.71

2001 2005 2010


16


The US Market

17

Wine Consumption Volume – Millions of Hectoliters

+40.91%

20.3524.23

28.67

+10.52%+11.47%

1.11

1.37

1.23

2001 2005 2010

27.3

+19.58%

+18.69%

2319.23

+19.08% +18.32%

SparklingStill

18


Beer

109

Wine

12.3

Spirits

7.6

Consumption per Capita (in Liters) Still and Sparkling Wine / Spirits / Beer

19


Forecast 2010:

12,3

11,7

10,4

6,6

7,6

7,2

6

7

8

9

10

11

12

13

2001 2005 2010

120

116

109

108

112

116

120

124

Wine Consumption


+ 45.41%

2001 2005 2010

15.65

19.17

22.75

+22.49%+18.7%

Value – Billions of Dollars, Data from 2005 / Still

20


Wine Consumption (by Price Point) Volume – Millions of Hectoliters / Still

9.34 10.811.69

11.03

7.45

9.32

2.87

3.24

+15.67% +8.2%

+25.17%

+18.35%

+17.49%

+12.87%19.23

23.01

+41.93 %+41.93 %

2.45

27.3

+19.58% +18.69%2001 2005 2010

Under $5 $5-$10 Over $10

21


Wine Consumption (by Color) Volume – Millions of Hectoliters / Still

2001 2005 2010

Red White Rose

6.92 9.5912.35

9.417.69

10.44

4.01

4.51

4.62

+38.51% +28.79%

22.27%

+11.01%

-13.3%+12.51%19.23

23.0127.3

+41.93%+41.93%

+19.58% +18.69%

22


Volume -Millions of Hectoliters – Still and Sparkling Wines


US Wine Consumption (by Origin)

Domestic Imported

+40.91%

+11.67%

+44.56%+26.85%

+15.11%

4.58

15.76

20.35

2001

6.63

17.6

24.23

2005

8.41

20.26

28.67

2010+19.08% +18.32%

23

Documents

Current and Future Trends in the International Wine and Spirit Markets – with an Outlook to 2010 ( Updated in December 2006 )