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Jameson Whiskey Appreciation

Lorcan Garvey, Brand Ambassador for Pernod Ricard India’s brand Jameson in India conducted a Whisky Appreciation session at the Radio Club for its members.The session began with a bit of history on John Jameson himself, a Scotsmen who moved to Dublin and took to the art of making Irish whiskey. Lorcan touched on the inspiration behind this move and the story behind the ‘crest and the motto – Sine Metu’ (Latin for ‘Without Fear’). He did stress that the motto in no way encouraged one to be rash or irresponsible but rather emphasized on the will to push ahead while having ‘Little to no Fear’.

With that, he went on to explain the whiskey manufacturing process – fermentation, distillation and maturation while handing samples of grain, white spirit and those matured in the various wooden barrels to the audience.

And then it was time to taste the samples and examine some of the ingredients that make the whiskey. Jameson Irish Whiskey is the most popular Irish whiskey in the world, with more than 20 million bottles sold per year, all over the globe. Produced at the Midleton distillery, it is the flagship whiskey of Irish Distillers, subsidiary of Pernod Ricard. Jameson 12 year offers notes of pepper and cinnamon to harmonize with oak and vanilla in this great blend. If you are a fan of Irish whiskies in general or Jameson in particular, Jameson 12-year-old provides an interesting perspective on aged blended whiskies that you’ll enjoy tasting.

Radio Club Whisky Appreciation programmes and this Jameson Whiskey Appreciation has been put together by Prakash Mirchandani, Secretary of Radio Club.
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Threats to companies from Highway Ban

While retail vendors, hotels restaurants try to change their location to circumvent the ban, liquor companies will have to bear the losses or change their strategies to cut losses.

Supreme court had on March 31 refused to relax its December 2016 order banning liquor outlets along 500 metres distance of national and state highways.

The court modified the order slightly to reduce the distance to 220 meters for municipality areas with population of under 20,000. It also exempted Sikkim and Meghalaya from this 500 metre limit. Further, it allowed the licences issued before December 15, 2016, and valid beyond April 2017 to continue until the licence expires, or September 30, 2017, whichever is earlier. Licences would remain valid till end of September for Telangana and end of June for Andhra Pradesh.

As India’s recent ban on liquor stores along highways displaces outlets, the nation’s distillers are bracing for a drop in sales of as much as 8 percent this year, biting into the country’s $31 billion spirits market, according to a local maker of whiskey, vodka and rum.

USL says that the Supreme Court ban on alcohol sales near highways will have a short-term impact on its sales.

Anand Kripalu, Chief Executive Officer of the Diageo plc-owned USL, said the company “expects the impact to be mitigated eventually and where it doesn’t get mitigated the consumption will shift to other outlets”.

Following the ban, USL shares took a 15 per cent slide but after assurance from its CEO, the shares recovered to a healthy ₹1,961, up nearly 3.5 per cent. The company said it will grow topline by double digit and improve operating margin to mid-high teens.

Industrywide sales would drop by as much as 15 percent in the next three months as about 40,000 outlets, including retail shops and restaurants, stopped selling spirits, wine and beer after the ban took effect April 1, Deepak Roy, executive vice chairman of Allied Blenders and Distillers Ltd., said in an interview. ABD sells around 36 million cases.

India is largely a whiskey and spirits dominated market and per capita consumption of beer in India is about 2 litres per person a year, minuscule compared to the global average of about 30 litres.

The top three companies USL, Pernod Ricard and ABD which account for 60 per cent of sales have seen zero per cent growth.

Guillaume Girard-Reydet, managing director, Pernod Ricard India, is of the view that several adverse regulatory changes and trade bans in recent months have posed difficult growth environment for the spirits industry.

In the past, Pernod Ricard India has demonstrated good resilience. But, going forward, it will be challenging for the industry as a whole to continue with the same level of performance in the short term, Guillaume pointed out.

Roshini Jaiswal’s first venture was a lounge bar called 180 Proof in Bengaluru. Bars, lounges and pubs are a tough business. With the Supreme Court ruling of not permiting bars, restaurants, liquor vends 500 kms away from highways, her liquor business if feeling the heat. Demonetization qffected the business by 25 per cent and with 25 per cent of the vends along the highway this could impact the business in the short term. The ban does not address the problem of drunken driving. By restricting sale it does not mean consumers cannot get their drinks. Drunken driving is best stopped by creating highway patrols even to the tune of 100,000 by hiring people who can revoke licenses of people who break the law of drunken driving, she advocates.

Carlsberg saw Indian volume decline almost 20%, a steep fall from about 15-20% growth it has been posting for nearly a decade. Excluding Bihar, a state where liquor was banned last April, Carslberg India’s volume declined 15% in the first quarter.

After the Supreme Court’s mid-December judgement, several companies chose channel de-stocking as there wasn’t enough clarity on the implementation, which in turn hurt their January-March sales even as nearly 30,000 shops were shut in April.

Carlsberg India chief executive officer Michael Jensen said last year that India was the most difficult market in the world, referring at that time to Bihar’s imposition of prohibition after he invested $25 million to set up a plant near the state capital Patna in 2014. “It is very detrimental for investor confidence,” Jensen had said.

India’s beer sales fell 2% in the year to March 2017. Yet, the industry expects to grow 5-7% during the fiscal on the back of new launches.

Experts say the impact on retail outlets will be transitionary as they move away from highways in due course of time. Retail consumer demand would shift to shops, which are away from highways.

Heineken, Anheuser-Busch InBev, and Carlsberg — which together control about 90% of India’s beer market — are introducing about a dozen new beer brands to fend off sales bans in a few states, shrinking store networks and stagnant demand in a warm, tropical country with promising demographics and increasing affluence.

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Pernod Ricard’s Breakthrough Innovation Group unveils Opn at CES

Originally unveiled in 2014, under the working title Project Gutenberg, Opn is a pioneering, intelligent system, which will transform the way we enjoy premium spirits and experience mixology at home.

As ‘hometainment’ sees consumers turn to their homes for new social experiences and in a near future of ‘smart-homes’, Opn enhances the drinking experience through a holistic, user-friendly ecosystem of devices, applications and services.

Elegantly designed to encourage exploration and discovery, it enables the user to learn and customize cocktail recipes, adapting them to available ingredients. Coaching features guide through the spectrum of recipes and techniques to help build skills, for cocktail classics and more elaborate concoctions. From helping put together shopping lists to seamlessly ordering spirits online and having them delivered to your door, creating social calendars and offering inspiration on the art of hosting, Opn will simplify and enhance the way we organize events at home, and help us prepare our favorite cocktails, in the smoothest possible way.

“We are utterly committed to developing the future of entertaining at home: an experience that is connected, engaging, tailored and responsible”, says Alain Dufossé, Managing Director of the Breakthrough Innovation Group (BIG). “With Opn, our goal is to make it easier to enjoy meaningful moments of convivialité at home.”

Opn is the perfect embodiment of how Pernod Ricard leverages innovation as one of the 4 accelerators of its business model alongside portfolio management, digital acceleration and premiumisation & luxury. Whether it is with new products or radically different experiences for consumers, innovation contributes to the Group’s top line growth, delivering 1% of incremental growth, as well as building the future of convivialité.

As well as revealing the official product name and branding at the iconic tech event, BIG shared information about features developed over the past three years, including further details of Opn’s unique four-pillar system:

1 — THE OPN CARTRIDGE: AN INNOVATIVE CONTAINER, COMPLETELY REPLACING THE BOTTLE

The Cartridge is a disruptive, efficient design, space-optimized to be unobtrusive, whilst still holding the standard 70cl of spirit. Its integrated tech also enables it to communicate with the rest of the Opn system. A future design classic, the sleek Cartridge effortlessly blends into any home, with a clean, contemporary look that will appeal to a multitude of tastes, and compliment numerous design styles.

2 — THE OPN TRAY: AN INTELLIGENT CARTRIDGE-HOUSING DOCK STATION

The intelligent tray unit interacts with the Cartridges, releasing measures through a pour application, helping the consumer achieve the perfect mix. The tray also monitors spirit levels whilst informing the rest of the system on what cocktails can be made, with what’s currently available.

3 — THE OPN APPLICATION: THE HEART OF THE ECOSYSTEM

With a database of more than 300 cocktail recipes, created by top mixologists from around the globe, the core application opens up the world of cocktail-making for exploration, whilst its easily understood, step-by-step instructions help the user prepare a variety of mixes. As more recipes are learned and mastered, it encourages independent experimentation and customization of recipes. The application also ensures users have everything they need, by putting together shopping lists and placing cartridge orders. It even helps design event invitations, meaning every detail of social events is covered.

4 — THE OPN WEBSITE: UNRIVALLED EDITORIAL CONTENT ABOUT HOSTING AT HOME

The website features articles and films that share the stories and personal experiences of hosts around the world, who love entertaining at home. Whatever the scale, Opn’s friends and experts share their insights and advice on hosting and how to create a social gathering to remember.

Research to date has shown that Opn’s disruptive qualities are generating new rituals amongst consumers. Accordingly, over the next 12 months, BIG will continue to finesse Opn’s system, based on trials and interactions currently taking place with 200 individuals, in Paris.

“Since November 2016, we have been meeting consumers in five European cities and the feedback is clear: Opn provides simplicity, great cocktails and great moments with your friends and family”, says Dufossé, “Opn is redefining relationships between the user and product, creating a whole new range of experiences. Its potential is tremendous”.

Opn will be launched by Pernod Ricard in early 2018. Until then, Opn will be showcased at CES in Las Vegas (5-8 January, 2017) stand 40 164 in the Tech West Smart Home Area.

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It’s Official! The World’s Best Single Malt is CRAIGELLACHIE

John Dewar & Sons Ltd. is delighted to announce CRAIGELLACHIE 31 Years Old has been awarded the World’s Best Single Malt at the World Whiskies Awards (WWA) 2017 presented by Whisky Magazine, the leading authority on the subject.

On March 30, the annual awards ceremony took place at the Waldorf Hotel in London. The WWA is one of leading award programmes in the whisky industry. An esteemed panel of internationally recognised whisky experts deemed CRAIGELLACHIE 31 Years Old as the best single malt whisky in the world, beating competition from hundreds of entries from across the world.

CRAIGELLACHIE Single Malt launched initially in September 2014 making this a highly notable accolade for a whisky which has only been available in market for less than three years.

“Since launching, CRAIGELLACHIE has built up a huge reputation in the on-trade and with whisky connoisseurs – it’s sought out and admired – and the accolade is true testimony to this,” says Georgie Bell, Global Malts Ambassador. “It shows how far the CRAIGELLACHIE brand has come in the last three years, and how from a production, maturation and blending perspective we really are second to none.”

Stephanie MacLeod, Malts Master and Master Blender for John Dewars & Sons, describes CRAIGELLACHIE 31 Years Old as being “beautifully balanced, smooth and rich, a swirl of smoke and sulphur accentuate the sumptuous fruits of kiwi and pineapple. The tang of old, leather bound books and tobacco emerge, with a hint of meatiness of a beef consommé.”

This prestigious award follows on from the outstanding success of CRAIGELLACHIE 23 Years Old being crowned as ‘Best in Show’ at the San Francisco World’s Spirits Competition in 2015, America’s most respected and influential international spirits event.

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Tequila CAZADORES Captures the Real Mexico and its Hard-Working People

Timed perfectly for Cinco de Mayo, Tequila CAZADORES, the 100% blue agave premium tequila, launches the first installment of its new platform “Born in Los Altos De Jalisco.” The video and print mediums highlight the authentic and often unseen side of Mexico, bringing forward untold stories of the local characters behind the brand and from the region. The eight characters featured throughout the series embody the inherent sense of pride and personality that makes Arandas, the birthplace of Tequila CAZADORES, a magical place in Mexico worth celebrating.

“At CAZADORES we are exceptionally proud of our roots, which began, and continue to this day, in Arandas, Mexico.” says Lisa Pfenning, Vice President, Brand Managing Director, Tequila Portfolio for Bacardi in the US. “Storytelling has been a tradition in Mexico for generations and this new platform brings to life the vibrancy and the spirit of real people, with real voices, who echo our shared sense of pride for the Los Altos de Jalisco region.”

The first video in the series – launching on Cinco de Mayo – features Manny Hinojosa, tequila expert and CAZADORES brand ambassador, playfully describing the true meaning behind Cinco de Mayo. A total of forty videos, shot documentary style, will be released throughout the summer featuring eight characters who demonstrate how each plays a valued part in their community and showcase some specifically in their role in making sure Tequila CAZADORES is created with passion, pride and attention to detail. Whether it’s Jose Miranda, the Arandas town barber, Pancho, the museum owner with a passion for boxing, or Juan Martinez, a Tequila CAZADORES jimador who works alongside his son in the agave fields, each are linked by the pride in their hard work and dedication to their craft – the same way Tequila CAZADORES has been doing it for close to 100 years.

“We did not create an advertising campaign, but instead short documentaries about the liquid, the people, and the region, which showcase the deep pride that CAZADORES has for being a part of the Los Altos community,” says Zara Mirza, Head of Creative Excellence for Bacardi. “The content that was captured, which will be distributed through editorial and cultural platforms, is an inherent reflection of Tequila CAZADORES connecting to its roots and celebrating the subtleties of the everyday people and moments that link Los Altos and CAZADORES together.”

The series was directed by Santiago Fabregas, whose work is characterized by focusing on characters, stories and places and is always seeking to portray reality as it is, which is also the manner of style reflected by the “Born in Los Altos De Jalisco” photographer, Mark Alor Powell. Just like Tequila CAZADORES, the drive behind all their creative is to be made with and featuring real people with a commitment to authenticity. To view the unreleased “Why Do They Call You Coyote” video as part of the new “Born in Los Altos De Jalisco” series, please click here.

VIRTUE Worldwide, the creative agency by VICE, led by their Brooklyn office, conceptualized and brought to life the “Born in Los Altos De Jalisco” platform, focusing on true authentic characters and sharing their stories, capturing the effervescent spirit of Los Altos and Tequila CAZADORES. Consumers will find the new Tequila CAZADORES visuals in unexpected ways, in addition to social platforms, including wild postings, painted wall art, or with the videos hosted on the VICE Munchies partner page.

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Christophe Navarre becomes President of Vinexpo’s Supervisory Board

The Supervisory Board of Vinexpo SAS, which met last month, has appointed Christophe Navarre, Chief Executive Officer of Moët Hennessy, as its new President.

Having been appointed as a member of the Supervisory Board at the General Meeting of Shareholders on 5 April, Christophe Navarre takes over from Xavier de Eizaguirre, who has completed his term of office.

Christophe Navarre also becomes President of the Supervisory Board of Vinexpo Overseas, the group subsidiary that manages Vinexpo’s international operations.

Christophe Navarre’s arrival represents a key milestone in the company’s development in France and internationally. With his experience at the helm of Moët Hennessy since 2001 and his in-depth knowledge of the major global wine and spirits markets, Christophe Navarre brings a fresh impetus to Vinexpo as it faces the challenges ahead.

“For more than thirty years the Vinexpo brand has successfully promoted the wine and spirits sector in general – and French exports in particular. I’m delighted to contribute to its development, working alongside the Management Board,” stated Christophe Navarre.

Patrick Seguin, President of the Management Board, and Guillaume Deglise, Chief Executive Officer of Vinexpo, added: “Appointing a professional of Christophe Navarre’s calibre as President of the

Supervisory Board reflects Vinexpo’s ambitions to take its skills and expertise to ever higher levels.”

Two other leading figures from the wine and spirits sector are also joining Vinexpo’s Supervisory Board: Philippe Castéja, President of Borie-Manoux and of the Conseil des Crus Classés 1855, and Philippe Guigal from Rhône producer E. Guigal.

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Registrations open for drinktec 2017 in Munich

Registrations towards the forthcoming drinktec 2017 in Munich are now open. The forthcoming show will be held from September 11 – 15, 2017 at the Messe Muenchen, Germany.

Every four years the industry meets here to get new impetus for future business. What are tomorrow’s opportunities? What trends are conquering the market? Leading manufacturers and SMEs use drinktec to present their latest developments—live and in operation.

These include: Process technology; · Filling and packaging technology; Process automation, engineering, control and IT solutions; PETpoint (PET technology for beverages and liquid food); Containers, packing materials, equipment and closures; Raw materials, additives and agents; Energy systems, water and wastewater; Restaurant and catering supplies, mobile facilities, sales promotion and marketing

In 2017, SIMEI organized in Italy by the Unione Italiana Vini Società Cooperative (UIV), for the first time will be an integrated part of drinktec in Munich. SIMEI has taken place since 1963 in Milan and is considered to be the world’s leading wine technology show. In future, SIMEI will take place every four years in Munich with drinktec, the world’s leading trade fair for the beverage and liquid food industry. SIMEI will retain its traditional two-year cycle, but from now on, it will alternate venues between Italy and Munich.

With the inclusion of SIMEI, the hall space occupied by the world´s leading trade fair drinktec will extend to more than 150,000 m2. The drinktec exhibition area is located in the A and B halls and the SIMEI@drinktec exhibition area will be located in at least two of the C halls (C1, C2 & C3).

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Carlsberg India launches ‘Tuborg Classic’- India’s first premium strong beer with Scotch Malts

Maharashtra to be the first state to get a taste of the new beer

Building on the tremendous success of Tuborg Green and Tuborg Strong, Carlsberg India announced the launch of Tuborg Classic, India’s first premium strong beer with Scotch Malts. Tuborg Classic, with its rich personality, is a refreshingly strong beer with imported Scotch Malts for a stronger and smoother taste. Presently launched in Maharashtra, Tuborg Classic will soon be available in select markets over the next few months.

Especially brewed for the Indian palate, Tuborg Classic is a rich tasting strong beer that offers the new generation of beer lovers a differentiated product. It is the perfect combination of strong and smooth. Superior quality scotch malts give the beer a well-rounded taste making the drinking experience easy and smooth.

Speaking on the occasion, Michael N. Jensen, Managing Director Carlsberg India Pvt. Ltd. said, “Today, consumers appreciate the distinctive quality and taste of premium beers. Keeping in line with the trends, we have launched Tuborg Classic, a brew made with Scotch Malts offering a stronger and smoother taste. We are confident this product will be appreciated by the consumers. With this launch, we aim to make Tuborg Classic one of the biggest innovations to have hit the Indian Beer industry in the last few years.”

Commenting on the new product, Mahesh Kanchan, Director Marketing, Carlsberg India Pvt. Ltd. said, “Tuborg is the number 1 international beer brand in India and is appreciated by consumers for its taste, quality and innovative packaging. With Tuborg Classic, we aim to further strengthen our commitment to the Indian market and expand our portfolio. Tuborg Classic is a great tasting beer made with Scotch Malts and offers our consumers a stronger and smoother beer experience.”

Tuborg Classic will be launched in 650ml bottles across all key markets nationally and in 500ml Cans in select markets. Maharashtra market will have both packs available.

ProWein Business Report assesses the International Wine Markets

The future of wine

In cooperation with Geisenheim University ProWein polled almost 1,500 wine sector experts from 46 countries on international wine markets, marketing trends and the development of wine sales channels. Those polled included wine producers (large and small wine-growing estates, wineries, cooperatives) as well as marketers (speciality retailers, wholesalers, importers/exporters, hotels and gastronomy). The combination of different perspectives of the producers on the one hand and the marketers on the other constitutes a unique barometer of opinions for the sector.

How does the sector view its economic situation?

The survey primarily polled sectoral leaders. These rate their current and future economic situation as satisfactory to good. It is interesting to observe that wine producers generally look to the future more optimistically than wine marketers who are in direct contact with end users. While export-oriented producers can try their luck on new export markets marketers have less opportunity to escape the structural changes of wine sales and increasing competition on their domestic markets.

On the producer side independent winemakers look to the future with more optimism than cooperatives and large wineries that find themselves amidst a strong process of concentration.

International and German specialty retailers focused on wine are the least satisfied and look to the future with less optimism than other marketers. This is primarily the expression of on-going structural change affecting wine sales channels where food retail and online channels are gaining importance internationally.

The results also reflect significant differences in mentality among countries of origin. German wine producers and marketers generally look to the future more negatively while producers primarily from Spain and Italy have very positive expectations about the future. Alongside real economic reasons these differences in expectations are sure to also reflect typical “German caution” and “Mediterranean optimism”.

What wine markets are attractive for wine producers now and in future?

The producers polled count more than 40 markets as their top 5 sales markets. Here Germany, the USA, Great Britain, Belgium and Switzerland are most frequently named as the most important sales countries. Currently rated as the most attractive sales markets among producers are Hong Kong, Switzerland, South Korea and the Scandinavian countries. Italy, France, Great Britain, Russia and Brazil are currently perceived as less attractive from the wine producers’ perspective.

What sales markets do producers expect to undergo the greatest rise in economic attractiveness?

The countries primarily named here are Russia, Hong Kong, Poland, South Korea, Brazil and China. In these assessments it becomes clear that export markets outside the traditional European wine countries will in future be of greater importance for wine producers. In addition to geographic distance producers must also overcome the cultural distance to countries that traditionally consume little or no wine and whose marketing structure often differs fundamentally from previous markets.

The lowest improvements are expected for Great Britain, France, Austria, Italy and Belgium. In France and Italy per capita wine consumption is still on a slight decline and on both markets predominantly domestic wine is drunk, which means fewer sales options for wine exporters. The forthcoming Brexit and constant rise in the tax on wine are the main reasons why wine producers rate Great Britain very low in terms of market attractiveness.

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Changes in the future are always accompanied by risk. Producers see the greatest risk in market development for Russia, Brazil, China, Great Britain and Hong Kong. The growing levels of wine consumption expected for the Asian and South American markets are accompanied by a series of uncertainties. In addition to possible trade restrictions (Russia) and countries’ different sales structures, it is primarily the uncertainty about economic and legal development that will play a role in the years ahead. For Great Britain the risk primarily concerns the question of whether and how wine imports will be affected by import duties after Brexit and what countries of origin will sign trade deals with Great Britain.

The current and future attractiveness of a market was summarised in the form of a market barometer. By juxtaposing the market barometer and the risk four different market types can be identified (see table). The markets with high attractiveness and low risk in the lower right-hand box include Poland, Australia, Japan, Canada and the Scandinavian countries. These are countries where wine consumption has risen lately or where a coherent local trading structure exists with the monopolies. High attractiveness alongside high risk is the case for Russia, Brazil, China and Hong Kong in the upper right-hand box. Markets with low attractiveness and high risk are Great Britain and Italy.

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What new markets do firms want to enter by 2020?

Nine out of ten leading international wine producers plan to extend their exports to new markets by 2020. Among wine exporters from the large European producer countries Italy, Spain and France this proportion stands at almost 100% and in Germany, which exports less, it stands at 55%.

Those countries which producers most often say they wish to extend exports to are the USA, Germany, Great Britain and China (see chart). It is predominantly China, Hong Kong, Russia, Japan, Australia, South Korea and Brazil that are named as new export destinations with the most disproportionate frequency relative to their currently low importance. For European wine producers successfully operating on these geographically and culturally distant markets in Asia and Oceania represents a great challenge over the next few years.

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Which wine origins are in demand from marketers?

Two-thirds of international marketers attending ProWein wish to include wines from new countries of origin in their product range. Among German marketers the figure is only one third. Amongst other things this is because the wine range in Germany is already extremely international.

International marketers are most interested in including in their portfolio wines from Germany, Spain, Italy, Portugal and France (see chart). On the other hand, German marketers show the greatest interest in the countries of origin Austria, Portugal, Italy and Germany followed by France, Spain and South Africa. What is surprising here is that Austria and Portugal rank at the top of the list which might reveal some new market trends. Interest in Italy, France and Spain is less surprising as these are the main import countries on the German wine market.

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What are the purchasing and sourcing channels of the future?

For marketers’ purchasing channels there is a clear trend towards shortening wine procurement channels. Marketers are clearly striving to increasingly source their wine direct from a small wine-growing estate or to a lesser extent directly from a large winery (see chart). By comparison, procurement via sales agents (importers, distributors, wholesalers or wine agencies) will decline considerably among marketers by 2020. This means for sales agents more difficult times lie ahead, which are in part already being indicated in their somewhat less optimistic outlook on the future. Small wine-growing estates, on the other hand, will need to rise to new challenges of coping, administratively and logistically, with the increasing direct enquiries from marketers.

Via what sales channels will wine reach end consumers in future?

Producers whose main sales market is Germany currently value speciality wine retail, gastronomy and ex-cellar sales as their most important sales channels. For the future, departing from the current low basis, a strong increase in online sales via wineries’ own online stores and external online retailers as well as food retailers is expected. For speciality wine retail, on the other hand, another stronger decline is expected which is less pronounced for gastronomy (see chart).

In the USA very similar trends can be observed concerning increased wine sales online and via food retailers and a decline in wine merchants/speciality wine retail. Unlike in Germany, where ex-cellar sales from small wine-growing estates are considered stable, this trend is anticipated to rise strongly in the US. This specific development reflects two current trends in the US: the number of small wine-growing estates is currently growing at a rate of 4% and “direct-to-consumer” sales from winemakers to end consumers is booming with double-digit growth rates.

How will wine be successfully marketed in future?

In the wine world competition between marketing via a wine’s origin (also terroir) or its brand has taken off. Who will be seen as the winner in future? The majority of both marketers and producers agree that in future wine will be marketed most successfully via its origin.

Surprisingly, the significance of the brand will in future be greater from the producers’ perspective than it is from the marketer’s. Among wine producers there are great differences. Firstly, the Mediterranean countries France, Italy and Spain focus much more on origin while in Germany the personality of the winemaker plays a greater role in marketing. Secondly, it is not surprising that winemakers focus more strongly on personality than cooperatives or large wineries.

Verdict

The verdict we can draw is that the wine sector is facing changes that are also reflected in the different future outlooks of the various market participants. Producers are increasingly looking to new distant wine markets and marketers are facing structural changes in the sale of wine where primarily sales via traditional wine merchants will decline. By contrast, purchasing wine via food retail and online will continue to rise. The wine trade between producers and marketers will change and supply chains will become even shorter as wine will be ordered direct from the producer. It will be interesting to see how this development unfolds over the next few years.

The study was conducted on behalf of ProWein by Geisenheim University’s Department of Business Administration and Market Research headed by Prof. Dr. Simone Loose and Heinz Küsters, Director of Market Research at Messe Düsseldorf, and their teams. ProWein and Geisenheim University also look forward to successfully continuing the ProWein Business Report in the coming years. This will provide the opportunity to check whether current expectations prove correct in future and see what currently unexpected changes will arise. In addition to providing long-term analysis of an international trend barometer, special interesting annual themes will be incorporated into the survey questionnaires. We thank survey participants and hope to also see continued avid participation among wine producers and marketers.

Vinexpo 2015-Salon Mondiale des Vins et des Spiritueux-Bordeaux-Gironde-France. Du 13 au 18 Juin 2015.

VINEXPO CONFRONTS THE CHALLENGES OF BREXIT

With UK elections around the corner, BREXIT once again becomes the hot topic of discussion.

On the eve of the historic triggering of Brexit negotiations, VINEXPO has pinpointed five key issues facing the wine and spirits industries which it will seek answers to at the June exhibition. The issues will be confronted at a conference in Bordeaux’s Parc des Expositions on Tuesday, June 20 at 4.00 pm.

The five topics identify key challenges for the UK and world wine and spirit industries: Trade agreement update; Main challenges for the W&S industry: The impact on the UK market in terms of duties; Consumer prices, category management and distribution; Whether the UK will lose its leading position for re-export?; Duty Free/Travel Retail opportunities; and Protection of designation of origin areas.

The conference opens with a review of the current EU trade agreement regarding wine and spirits

imports, exports and tariffs.

Upwards of 48,000 wine producers and buyers from 150 countries are expected to attend VINEXPO in

a climate this year of intense questioning about the impact on Brexit of trading conditions, prices and

sources of supply.

Jane Anson, wine writer who will moderate the conference during Vinexpo says, “Because the UK is

the world’s second largest imported wine market and a major spirits exporter, the Brexit challenge is

as acute for the UK as it is for wine producers in France, Italy and Spain and elsewhere in the world.”

Guillaume Deglise, CEO of VINEXPO added, “In a wider context, among our 48,000 attendees there will be producers and buyers currently excluded from the EU favourable tariff zone who see Brexit as an opportunity to penetrate the UK wine and spirits market.”

The value of UK wine imports is running at circa £28 billion according to VINEXPO/IWSR data for 2015. Volume imports are forecast to slow over the next five years.

Exports of all spirits from the UK reached £4.9 billion in 2016, according to the Wine & Spirit Trade

Association, the major part lead by Scotch whisky exports.

The line up of speakers will be announced in the coming weeks.