Cheap is cool?

Fine wines in a rough environment

Wine-growing areas

• Winelands are small• Limited variety• Long tradition• Don‘t cover demand• Open market• Not very patriotic

Who is in the market?

• France, Italy, and Spain top players

• Rounded 11 of 14 million hectoliter

• Small middle class • Rest are also rans

Wine consumption 2012

0 10 20 30 40

UK

Germany

Italy

US

France

in millionhectoliter

• High consumption in total

• Not too many wine drinkers

• Still five times more beer

Household expenditures

• Spend more on wine than on beer

• Nevertheless price crucial role

• Trade very competitive• Wine drinkers want wine

handy• Quick choice at the shelf

59

25

29

32

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Wine

Beer

Spirits

Sparking

Others

End up in discounter• Most discounters in Europe• Aldi wirtschaftswunder

success story• New concept: one of every

item, no service, no frills• No price tags• No PR, no ads • Turnover 50 bn Euro in 4000

stores, little loans, big profit (750 mn Euro) – still privately owned

Public notice of an authority?

Aldi & Audi

• Clients mostly lower class• Invested in credibility (tests, panels)• No brand, brands themselves• New type of consumer• Buy prestigeous goods with service• For other goods look for best offer even with high

income• Smart shoppers successful in discounters• Aldisation

Low price warriors in pursuit of wine

• Discounters try to achieve credibility

• Parker points, consultants

• Consumer panels approve that

14.6 million hectoliter - who sells them?

5,7

5,1

2,6

1,2

0 1 2 3 4 5 6

discounters

supermarkets

cellar door

specialised retailers

in million hectoliter

Driving the market

• Create new stars• Mean hell to some famous names• Work wonders on bubbles• Miraculous multiplication of chianti

How much is a bottle?

10

6

3,8

2,6

0 2 4 6 8 10 12

specialisedretail

cellar door

supermarket

discount

price per liter in €

Fine wines in a rough environment

• Borolo, champagne and their kind • Germans get their share• S.A. Prum• Fritz Keller• Clever idea: subcontractors to make the

quantity• First outcry went through top producers• Everybody make their money, even the

family businesses, on once a year

New cellar at Keller‘s

Where does it all lead to?

• Decay of quality wines?• Decline in prices? • Germans spend more for less• Specialised retailers have gained better shares

How to get a slice of the pie

• Hope for tide• Do things discounters don‘t do• Trading down no fun• Create ambiance, easy access, offer service• Focus on special wines, orange, natural, amphora • Be a pleasure, provide lifestyle: QR with message • Convenience (shop in the net, quick delivery)• Discounters die where zest for life begins