Wine Science & European Wines

EMC Paris

Spring 2014

Welcome!

• Intros

• Syllabus

• Expectations

• Questions

Statistics

• World Wine Market

Statistics for key markets in Europe Country Total

market value (US$m 2007)

Total wine drunk (m litres)

Av cost per litre ($ per litre)

Imported market (US$m 2005)

Italy 40,535 3,049 13.29 336

France 35,125 3,346 10.50 645

Russia 31,911 1,549 20.60 NA

Germany 23,869 2,176 10.97 2,233

Spain 13,188 1,550 8.51 143

Romania 9,639 577 16.71 NA

Portugal 5,323 454 11.72 110

Bulgaria 5,067 177 28.63 NA

Poland 5,000 302 16.56 NA

Switzerland 4,392 284 15.46 NA

Ukraine 4,162 247 16.85 NA

Austria 3,355 260 12.90 NA

Netherlands 3,206 296 10.83 3,991

Belgium 3,146 217 14.34 NA

Hungary 3,146 303 12.61 NA

Wine Production StatisticsTable 2: Wine production* trend in the EU-27 (‘000 Hectoliters)

2007 2008 2009 2010 2011 2012

France 45.672 41.640 46.269 45.669 50.757 40.609

Italy 42.514 46.245 45.800 46.737 42.705 39.300

Spain 36.408 35.913 36.097 35.363 33.397 31.500

Germany 10.261 9.991 9.228 6.906 9.132 8.903

Portugal 6.074 5.620 5.872 7.133 5.610 5.857

Romania 5.289 5.159 6.703 3.287 4.213 4.059

Greece 3.511 3.869 3.366 2.950 2.750 3.150

Austria 2.256 2.628 2.672 2.352 1.737 2.815

Hungary 3.222 3.460 3.198 1.762 2.750 1.874

Other EU**

3.853 3.604 3.034 2.616 3.177 2.773

EU-27 159.060

158.129 162.238 154.775 155.671 140.840

Changes

• Lifestyle

• Tastes

• Health Concerns• Key public health and social concern across EU

• EU has highest levels of alcohol consumption

• Binge Drinking• Limiting availability of alcohol

• Drunk driving countermeasures

• Improved education and information campaigns

Wine Consumption Statistics

• Global wine consumption 2012: 243 million hectoliters

• Decline in Europe: 69.3% - 62%

• Rise in other countries• Asia: 19.8% - 22%

• America: 6%-10%

• Oceania: 1.9% - 3%

Top 10 Wine Consuming Countriesper capita per year

Country Liters per capita

Luxembourg 50.7

France 47.7

Portugal 42.5

Italy 37.1

Croatia 34.4

Slovenia 33.1

Denmark 32.6

Austria 29.7

Belgium 27.8

Greece 25.6

World Wine Market Defined

• What is the World Wine Market?

• What does it entail?

• Why do we care?

European Wine Market

Global Wine Production

• Decreasing in short term and long term

• 252 Mhl in 2012• Down 6% from 2011

• Peak year for production was 2004 and 296 Mhl

• All the major EU wine producing countries are declining

• Possible reasons for the decrease?

Decrease in European Wine Production

• EU agricultural policies

• Destruction of production facilities

• Protectionism of names/brand

Value vs Volume2000-2012

• Definition

• Value -13.8bn€ 25.3bn€ 84%

• Volume – 10,073Mhl 9903Mhl 1.7%

• Insert OIV chart

• Slow down or downward trend? Why?• Increase in the unit value of wine

• Trade in ‘bulk’ wine increasing, bottled wine decreasing

Value vs Volume ExportsEurope

• Value• France, 7.8bn€ (1)

• Italy, 4.7bn€ (2)

• Spain, 2.4bn€ (3)

• Germany, 973M€ (7)

• Portugal, 707M€ (10)

• Volume• Italy, 2120mil l

(1)

• Spain, 1947mil l (2)

• France, 1499mil l (3)

• Germany, 396mil l (8)

• Portugal, 339mil l (10)

Average price per literEurope

• France – 5.23 e/l (1)

• Germany – 2.46 e/l (4)

• Italy – 2.21 e/l (5)

• Portugal – 2.09 e/l (6)

• Spain – 1.21 e/l (11)

Additional Data

• European countries are the biggest wine importers• 45% of all wine imports

• Norway is not very interested in New World wine imports• 83% old world vs 12% new world

• Denmark saw falling wine imports 1.6%

World’s Largest Importersin value 2012

• UK 3944M €

• USA 3938

• Germany 2393

• Canada 1540

• China 1229

• Japan 1225

• Belgium 964

• Switzerland 925

• Netherlands 872

• Russia 817

• Hong Kong 806

• France 631

• Sweden 540

• Denmark 498

• Australia 464

• Singapore 369

• Norway 318

• Italy 305

• Ireland 247

• Brazil 234

• Austria 207

• Finland 184

Old World wine import countries

• Germany – 80%

• Belgium – 85%

• France – 65%

• Switzerland – 89%

• Norway – 83%

• Japan – 77%

• Russia – 63%

Resources

• www.bkwine.com/features/more/world-trade-in-wine-2000-2012

Final Project

• Groups of 3 – 5 people

• Select a country from Prof. Townsend

• Develop a portfolio