PROWEIN BUSINESS REPORT 2017 - Prof. Dr. Simone Loose, Evelyn Pabst M. Sc., Dr. Gergely Szolnoki Geisenheim University, Department of Business ...

 
PROWEIN BUSINESS REPORT 2017 - Prof. Dr. Simone Loose, Evelyn Pabst M. Sc., Dr. Gergely Szolnoki Geisenheim University, Department of Business ...
PROWEIN BUSINESS REPORT 2017
Prof. Dr. Simone Loose, Evelyn Pabst M. Sc., Dr. Gergely Szolnoki
Geisenheim University, Department of Business Administration and Market Research

Heinz Küsters
Messe Düsseldorf, Director Market Research

                                                                                   0
Background

What is the aim of the ProWein Business Report?              ProWein
The wine industry undergoes continuous                       Starting in 1994 with 321 exhibitors and approx. 1,500 visitors,
internationalisation and the global landscape of wine        ProWein has developed into what is the leading trade fair for
markets changes. Traditional markets decrease in             the international wine and spirits industry today. At its latest
importance and new markets become interesting for wine       edition in March 2016 to the tune of 6,200 exhibitors from some
exporters. Which are currently the most attractive wine      50 countries met in Düsseldorf with 55,000 trade visitors from
markets in the world? Which markets will increase or         throughout the world. Since 2013 ProWine China has been held
decrease in importance by 2020 and what is the risk          yearly in Shanghai and from April 2016 the ProWein family of
associated with this development? How do wine                events extended to include ProWine Asia, alternating between
marketers source their products, how will these              Hong Kong (2017) and Singapore (2018).
distribution channels change in the future and what are
currently the most sought after country of origins? How      Geisenheim University
will wines be marketed in the future – through a brand, by
communicating the origin of wine or through the              Founded in 1872 as a state research institute Geisenheim
personality of the wine maker?                               University today is one of the leading wine research and
                                                             education centres in the world. It hosts more than 1,350
The ProWein Business report taps into the knowledge of       students studying various German and English bachelor and
international wine producers and wine marketers to           master degrees in viticulture and enology, international wine
answer these question. By combining and contrasting          business and beverage technology among others. Applied and
opinions both from wine producers and wine marketers it      fundamental research is at the heart of Geisenheim’s research
provides a unique economic market barometer.                 activities. Following a multi-disciplinary approach research in
                                                             Geisenheim involves the whole supply chain from grape
ProWein and Geisenheim University will form a long-term      breeding to wine marketing. Geisenheim is well known for its
collaboration to provide the wine industry with annual       extensive global research network and international
insights on global wine market trends.                       collaborations.

                                                                                                                                1
Contents

1•   Who participated?          p.3

2•   Economic condition         p. 5

3•   Attractive sales markets   p. 15

•
4    Future sales markets       p. 28

5•   Wine origins               p. 35

6•   Sales channels             p. 39

7•   Marketing philosophy       p. 45

8•   Details of method          p. 52

                                        2
Chapter 1

WHO PARTICIPATED?

                    3
Participants

                                                                                                      2 surveys
                                                                                               January 2017; 5 languages

                                                         Producers (n=578)                                                            Marketers (n=909)

                                     Type of company                                                                Type of company
                                     •                                                                              •
- Research Februar 2017 HK/RR

                                           Small wineries                                                                  Specialty retailers focused on wine
                                     •     Cooperatives                                                             •      Wholesalers focused on wine
                                     •     Large wineries                                                           •      Importers, exporters, distributors
                                     •     Importers, exporters, distributors                                       •      Hospitality
                                                                                                                    •      Gastronomy

                                     Company location                                                               Company location
                                     3 out of 4 producers were located in either                                    Main countries of company location
                                     • France                                                                       • Germany (53%)
                                     • Italy                                                                        • Netherlands (18%)
                                     • Germany                                                                      • Belgium (13%)            international marketers
                                     • Spain                                                                        • Other countries
                                     20 different producer countries                                                46 different marketer countries
                                For detailed information on methodology and participants, please see chapter 8.                                                          4
Chapter 2

ECONOMIC CONDITION

                     5
Economic condition

1•   Key findings of economic condition                     p.7

2•   Overall economic condition – producers and marketers   p. 8

3•   Detailed overview of economic condition                p. 9

4•   Producers by country                                   p. 10

5•   Producers by company type                              p. 11

6•   Marketers by origin                                    p. 12

7•   German marketers by company type                       p. 13

8•   International marketers by company type                p. 14

                                                                    6
Key findings – Economic condition

Positive overall economic climate                              International marketers are more optimistic than Germans
• Industry leaders are positive about the present and future   • German marketers are less satisfied with their current
  economic condition.                                             economic condition and are less optimistic about their future
• Both for producers and marketers there is a positive saldo      than international marketers.
  of companies who are positive about the current economic
  condition over those that are negative.                      International wholesalers most optimistic
                                                               • Out of the international marketers wholesalers are most and
Producers more optimistic than marketers                          specialty wine retailers are least satisfied with their current
• Producers are in tendency more positive about their future      economic condition.
   economic condition than marketers.                          • Importer/exporter/distributors are most optimistic about
                                                                  their future while specialty retailers are least optimistic.
German producers currently most satisfied
Italian and Spanish producers most optimistic about future     German gastronomy optimistic about their future
• German producers are more satisfied with their current       • Out of the German marketers distributors and wholesalers
   economic condition. Spanish and Italian producers are         are most satisfied with their current economic condition.
   most optimistic about their future economic condition.        German gastronomy and specialty retailers are less satisfied.
                                                               • Gastronomy is most optimistic about their future while
Small wineries most positive about the future                    wholesalers and specialty retailers are less optimistic.
• Cooperatives are most satisfied with their current
  economic situation. Small wineries (mainly producing         Specialty retail generally least optimistic
  wine) are most positive about their future economic          • Both internationally and nationally specialty wine retailers
  condition. Cooperatives and importers/exporters are least      are least satisfied and least optimistic.
  optimistic about their economic future.

                                                                                                                                    7
Overall economic condition

                                Current and future economic condition within the company
                                % asses the current and the future economic condition within their company as follows
                                Base: All participants (n=578 producers, n=903 marketers)                                                                                                Saldo
                                                                                                                                                                                    (positive minus
                                                                                                                                                                                   negative opinions)

                                                            Current       4                 34                                                   62                                    58
                                     Producers                                                                                                                                               +
                                                             Future    3              25                                                    71                                         68
- Research Februar 2017 HK/RR

                                                            Current       5                32                                                    63                                    58
                                     Marketers                                                                                                                                               -
                                                             Future   2                      41                                                       57                                55

                                •   Both for producers and marketers there is a positive saldo of 58% who are positive about the current economic condition over those that are negative.
                                •   In tendency, producers are more positive about their future economic condition than marketers.

                                                                                                                                                                                                  8
Detailed overview

                                Current and future economic condition within the company
                                % asses the current and the future economic condition within their company as follows
                                Base: All participants (n=578 producers, n=903 marketers)

                                                     Producers by country                                                 International marketers by company type

                                                                             75             80                                                                  68
                                                                                                                                            66             62
                                        63                                                                                  58   55              60
                                                        59   57         58             58
                                             53
- Research Februar 2017 HK/RR

                                        Germany         France           Italy          Spain                           Specialty retailer Wholesaler     Importer /
                                                                                                                        focused on wine focused on wine   exporter /
                                                                                                                                                          distributor

                                                  Producers by company type                                                  German marketers by company type
                                             71         71                   66
                                        64                   65         64             65                                                   61             63                  60
                                                                                            51                              50                                  48        53
                                                                                                                                 41
                                                                                                                                                 33

                                      Small winery    Cooperative    Large winery     Importer /                        Specialty retailer Wholesaler     Importer /    Gastronomy
                                                                                      exporter /                        focused on wine focused on wine   exporter /
                                                                                      distributor                                                         distributor
                                                                                                                                                                                     9
Producers by country

Current and future economic condition within the company
% asses the current and the future economic condition within their company as follows
Base: All producers, which have their company located in one of the following countries (n=436)                                                        Saldo
                                                                                                                                                  (positive minus
                                                                                                                                                 negative opinions)
                            Current   1                     35                                                64                                     63
Germany                                                                                                                                                      -
                             Future   1                               45                                             54                               53

                            Current       3                  35                                                62                                    59
France                                                                                                                                                       -
                             Future           7                  29                                           64                                      57

                            Current       3                      36                                             61                                   58
Italy                                                                                                                                                        +
                             Future   3                20                                             78                                              75

                            Current           7                  28                                          65                                       58
Spain                                                                                                                                                        +
                             Future   1           18                                                 81                                              80

•   German producers are most positive about their current economic condition. Spanish and Italian producers are most optimistic about their future
    economic condition. Saldo can vary between extreme values -100 (all producers evaluate current condition as bad and expect deterioration) and +100.
                                                                                                                                                                 10
Producers by company type

Current and future economic condition within the company
% asses the current and the future economic condition within their company as follows
Base: All producers (n=578)                                                                                                                            Saldo
                                                                                                                                                  (positive minus
                                                                                                                                                 negative opinions)
                            Current       5                   36                                                    59                               64
Small winery                                                                                                                                                 +
                             Future   3             24                                                  74                                           71

                            Current   2            24                                                    73                                          71
Cooperative                                                                                                                                                  -
                             Future   2                  31                                                    67                                    65

                            Current       5              26                                                   69                                     64
Large winery                                                                                                                                                 +
                             Future   3                  28                                                   69                                     66

                            Current   2                  31                                                    67                                    65
Importer / exporter /
distributor
                                                                                                                                                             -
                             Future           9                31                                                   60                               51

•   Cooperatives are most positive about their current economic situation. Small wineries (mainly producing wine) are most positive about their future
    economic condition. Cooperatives and importers/exporters/distributers are least optimistic about their economic future. Saldo can vary between extreme
    values -100 (all producers evaluate current condition as bad and expect deterioration) and +100.                                                             11
Marketers by origin

Current and future economic condition within the company
% asses the current and the future economic condition within their company as follows
Base: All marketers (n=903)                                                                                                                                Saldo
                                                                                                                                                      (positive minus
                                                                                                                                                     negative opinions)

                            Current        5                  35                                                    60                                   55
German
marketers
                                                                                                                                                                -
                             Future    3                            51                                                     46                            43

                             Current   4                 29                                                    67                                        63
International
marketers
                                                                                                                                                               +
                              Future   2               29                                                     69                                         67

•   German marketers are less satisfied with their current economic condition and are less optimistic about their future than international marketers.
•   Saldo can vary between extreme values -100 (all producers evaluate current condition as bad and expect deterioration) and +100.
                                                                                                                                                                    12
German marketers by company type

                                Current and future economic condition within the company – German marketers
                                % asses the current and the future economic condition within their company as follows
                                Base: All German marketers (n=481)                                                                                                                             Saldo
                                                                                                                                                                                          (positive minus
                                                                                                                                                                                         negative opinions)
                                                             Current           6                  38                                                       56                                 50
                                Specialty retailer                                                                                                                                                  -
                                focused on wine
                                                              Future       4                               54                                                        43                       41
- Research Februar 2017 HK/RR

                                                             Current                        39                                                        61                                      61
                                Wholesaler                                                                                                                                                          -
                                focused on wine
                                                              Future       4                                    59                                                        37                  33

                                                             Current           7           23                                                    70                                           63
                                Importer / exporter /
                                distributor
                                                                                                                                                                                                    -
                                                              Future   1                              51                                                        48                            48

                                                             Current       3                     41                                                        56                                 53
                                Gastronomy                                                                                                                                                         +
                                                              Future 1                      37                                                        61                                      60

                                •   Out of the German marketers distributors and wholesalers are most satisfied with their current economic condition. German gastronomy and specialty
                                    retailers are less satisfied. Gastronomy is most optimistic about their future while wholesalers and specialty retailers are less optimistic. Saldo can vary
                                    between extreme values -100 (all producers evaluate current condition as bad and expect deterioration) and +100.                                                    13
International marketers by company type

                                Current and future economic condition within the company – International marketers
                                % asses the current and the future economic condition within their company as follows
                                Base: All international marketers (n=422)                                                                                                                   Saldo
                                                                                                                                                                                       (positive minus
                                                                                                                                                                                      negative opinions)
                                                            Current   2                     36                                                      63                                    58
                                Specialty retailer                                                                                                                                               -
                                focused on wine              Future                                                                                                                       55
                                                                                      31                                                      69
- Research Februar 2017 HK/RR

                                                            Current    4               26                                                     70                                          66
                                Wholesaler                                                                                                                                                       -
                                focused on wine              Future                                                                                                                       60
                                                                       4                    32                                                     64

                                                            Current       5                28                                                  67                                         62
                                Importer / exporter /
                                                                                                                                                                                                 -
                                distributor                  Future   2               28                                                      70                                          68

                                •   Out of the international marketers wholesalers are most and specialty wine retailers are least satisfied with their current economic condition.
                                    Importer/exporter/distributors are most optimistic about their future while specialty retailers are least optimistic.
                                •   Saldo can vary between extreme values -100 (all producers evaluate current condition as bad and expect deterioration) and +100.
                                                                                                                                                                                                     14
Chapter 3

SALES MARKETS
ATTRACTIVENESS
                 15
Sales markets attractiveness

1•   Key findings of sales markets attractiveness   p. 17

2•   Top sales markets for producers                p. 19

3•   Market attractiveness                          p. 20

•
4    Differences between incumbents and entrants    p. 21

5•   Expected change in economic attractiveness     p. 22

•
6    Differences between incumbents and entrants    p. 23

7•   Current and future attractiveness              p. 24

•
8    Risk perception                                p. 25

•
9    Differences between incumbents and entrants    p. 26

•
10   Risk and market attractiveness                 p. 27

                                                            16
Key findings – sales markets attractiveness

Wine marketing is of global importance                            Entrants underestimate the current market attractiveness
• Overall producers have 40 different countries belonging to      • Market attractiveness differs between companies with
  their top 5 sales markets.                                        market experience that currently sell wine in a market
• European and North American wine markets are most                 (incumbents) and entrants, who plan selling wine on a
  frequently named as top 5 sales markets followed by Asian         market by 2020.
  and other countries.                                            • Entrants underestimate the attractiveness of several
                                                                    markets.
Germany and the US dominate as sales markets
• Germany and the USA are by far the most important sales         Underestimated markets
  markets for wine producers followed by UK, Belgium and          • South Korea, Switzerland, USA, Japan and Brazil are more
  Switzerland.                                                      positive evaluated by incumbents than by entrants.
• The USA are the most important international wine sales
  market if one considers the host country effect for Germany.    Overestimated markets
                                                                  • France, Italy Belgium and Poland are markets that are
Asian and Scandinavian markets economically most attractive         rated more attractive by entrants than by incumbents.
• Hong Kong, Switzerland, South Korea and the Scandinavian
   country are those markets that currently have the highest      Comparable evaluation
   economic attractiveness for producers.                         • Incumbents and entrants perceive the Scandinavian
• Italy, France, UK, Russia and Brazil are currently seen as        countries, Canada, Netherlands and the UK as about
   economically least attractive.                                   equally attractive.
• Germany ranks in the lower third when it comes to current
   economic attractiveness, which is mainly related to the high
   degree of competition on the German wine market.

                                                                                                                               17
Key findings – sales markets attractiveness

Russia‘s market attractiveness is improving the most               Changes in future attractiveness come with great risk
• In general, all markets are expected to have a rather positive   • In general, most markets are expected to have a rather low
  change in their economic attractiveness.                           risk of market development.
• East European, Asian markets and Brazil are expected to          • While Russia has the highest risk in market development, it
  increase strongest in attractiveness by 2020.                      is also expected to have the strongest increasing market
• The majority of Middle European markets see small changes          attractiveness.
  in attractiveness.                                               • Probably due to Brexit, the UK is listed within the top 5
                                                                     markets of high risk in market development.
UK faces the least improving market attractiveness                 • Other markets with high expected risk are Asian markets
• Of all markets analysed, the UK faces the least improving          and Brazil.
  market attractiveness.
• Other markets with an unchanged future attractiveness are        Entrants expect higher risk for certain markets than
  Italy, Austria and France.                                       incumbents

 Entrants tend to overrate future market attractiveness            Markets where entrants perceive higher risk than
• Several markets are overrated by entrants, especially UK,        incumbents
   France, Italy and Hong Kong.                                    • USA, South Korea, Japan, Austria, Germany, Switzerland,
• Only very few markets are underrated by entrants (USA,              Denmark
   Poland).
                                                                   Markets where entrants perceive lower risk than
                                                                   incumbents
                                                                   • Brazil, Italy, France, Norway

                                                                                                                                   18
Top sales markets for producers

    Current sales markets
    % currently distribute wine in the following markets (top 5)
    Base: All producers (n=429)

          Germany                                                             56
               USA                                                       54
Top 5

                UK                                                  32
           Belgium                                             28
        Switzerland                                       23
        Netherlands                                       23
            Canada                                       22
              China                                 20
          Denmark                                  19
             France                                18                    •    Producers were asked about their top 5 sales markets.
              Japan                            18                        •    Overall producers named 40 different sales markets to belong to their top 5.
               Italy                          16                         •    Germany and the USA are by far distance the most important sales markets for wine
           Sweden                        12                                   producers followed by UK, Belgium and Switzerland.
         Hong Kong                   9                                   •    The USA are the most important international wine sales market if one considers the
             Russia                  9                                        host country effect of ProWein for Germany.
            Austria                  8
            Norway               7
            Poland               7
           Australia         5
              Brazil      4
        South Korea      4
                                                                                                                                                                    19
Market attractiveness

Current market attractiveness of specific markets
% assess the current economic attractiveness of the following markets as follows
Base: All producers, which either currently distribute wine or plan to distribute wine to the following markets by 2020 (n=429)
                                                                                                                                              average value
                                                                      negative    neutral        positive
                                                                                                                                  (-2 = very negative; +2 = very positive)
 Hong Kong     3               18                                                           78                                                      1.03
Switzerland     4                   22                                                           74                                                 1.03
South Korea 2                 19                                                         79                                                         1.02
    Norway       5               17                                                        78                                                       1.00
  Denmark      4                   21                                                        75                                                     0.99
        USA 3                16                                                         81                                                          0.98
      Japan 2                   22                                                          77                                                      0.95
    Sweden         7              14                                                     79                                                         0.95
     Poland 2                        27                                                            71                                               0.93
    Canada                   22                                                             78                                                      0.91
      China     4                  20                                                         75                                                    0.91
   Australia 1                  24                                                            75                                                    0.88
   Belgium                18                        27                                                            56                                0.77
Netherlands     4                       28                                                            68                                            0.77
  Germany      3                            36                                                               61                                     0.71
     Austria 2                                 43                                                                 55                                0.59
       Brazil   5                        29                                                             66                                          0.53
      Russia              17                        28                                                            55                                0.47
          UK           14                             38                                                               48                           0.41
     France          11                                    51                                                               39                      0.33
        Italy         12                                    51                                                               38                     0.29

                                                                                                                                                                       20
Differences between incumbents and entrants

Current market attractiveness of incumbents vs. entrants
Incumbents: producers currently selling in this market; Entrants: producers that plan to enter the market by 2020

                                             1.40
                                                       overrated by entrants

                                             1.20
Current attractiveness as seen by entrants

                                                                                                                                 Poland      Norway
                                             1.00                                                                Belgium
                                                                                                                                            Sweden                 Hong Kong
                                                                                                                                                     Denmark                        South Korea
                                                                                                                                            Canada
                                             0.80                                                                                         Australia China
                                                                                                                                                             Japan
                                                                                                                   Netherlands                                  USA
                                                                        France
                                             0.60                                                                                                             Switzerland
                                                                                                                    Germany
                                                                         Italy
                                             0.40                                     UK        Russia       Austria          Brazil

                                             0.20

                                                                                                                                                                               underrated by entrants
                                             0.00
                                                    0.00              0.20            0.40                0.60                   0.80                       1.00                  1.20              1.40

                                                           Current attractiveness as seen by incumbents
                                                                                                                                                                                                        21
Expected change in economic attractiveness

Expected change in economic attractiveness of specific markets
% assess the change in economic attractiveness of the following markets by 2020 as follows
Base: All producers, which either currently distribute wine or plan to distribute wine to the following markets by 2020 (n=429)
                                                                                                                                                           average value
                                                                      deteriorate   not change          improve
                                                                                                                                             (-2 = sig. deteriorate; +2 = sig. improve)
      Russia 2           14                                                              83                                                                     0.93
 Hong Kong 2                    23                                                               75                                                             0.89
     Poland             17                                                               83                                                                     0.88
South Korea                  23                                                               77                                                                0.85
       Brazil 2                   25                                                               73                                                           0.82
      China 2                       28                                                                  69                                                      0.80
   Australia                       31                                                                   69                                                      0.77
    Canada 2                             36                                                                  62                                                 0.66
  Denmark 3                                39                                                                     58                                            0.62
      Japan 2                             40                                                                      58                                            0.62
    Norway                                   48                                                                         52                                      0.58
    Sweden 3                                41                                                                     56                                           0.57
Switzerland 1                                 47                                                                        52                                      0.56
        USA          12                            31                                                             57                                            0.54
Netherlands    3                                    50                                                                       47                                 0.46
  Germany        5                                       50                                                                    45                               0.43
   Belgium        6                                       50                                                                    44                              0.40
        Italy      7                                        49                                                                  43                              0.37
     Austria    4                                                60                                                                  35                         0.33
     France               20                                          46                                                              34                        0.15
          UK                     28                                          40                                                         32                      0.05

                                                                                                                                                                                   22
Differences between incumbents and entrants

          Expected change in market attractiveness incumbents vs. entrants
          Incumbents: producers currently selling in this market; Entrants: producers that plan to enter the market by 2020

                                    1.10
                                             overrated by entrants                                                       Hong Kong
                                                                                                                                                    Russia
                                                                                                                               China
                                    0.90                                                                                                South Korea
                                                                                     Italy                                Australia        Brazil
                                                                                                                                                             Poland
                                    0.70                                                                      Japan               Canada
                                                                                                                Denmark
Expected change in attractiveness

                                                        France                       Belgium                   Norway
                                                                                       Germany                  Sweden
                                    0.50
                                                                                                           Switzerland
                                                                           Austria           Netherlands
                                                                                                                     USA

                                    0.30
as seen by entrants

                                             UK

                                    0.10

                                                                                                                                                               underrated by entrants
                                    -0.10
                                         -0.10                   0.10                0.30                   0.50                       0.70                    0.90                1.10

                                                 Expected change in attractiveness as seen by incumbents
                                                                                                                                                                                        23
Current and future attractiveness

Current market attractiveness vs. expected change in market attractiveness

                                    1.00
                                              low current attractiveness + high future attractiveness                     high current attractiveness + high future attractiveness
                                                                              Russia
                                    0.90                                                                                                                       Hong Kong
                                                                                                                                                    Poland
                                                                                                                                                             South Korea
                                    0.80                                               Brasil                                                      China
                                                                                                                                            Australia
                                    0.70
                                                                                                                                                 Canada           Denmark
Expected change in attractiveness

                                                                                                                                                         Japan
                                    0.60                                                                                                                                    Norway
                                                                                                                                                       Sweden
                                                                                                                                                                 USA    Switzerland
                                    0.50
                                                                                                                       Netherlands
                                                                                                                 Germany
                                    0.40                                                                                   Belgium
                                                    Italy
                                                                                                Austria
                                    0.30

                                    0.20
                                                            France
                                    0.10
                                                                       UK
                                              low current attractiveness + unchanged future attractiveness          high current attractiveness + unchanged future attractiveness
                                    0.00
                                           0.20              0.30      0.40            0.50               0.60         0.70          0.80             0.90             1.00           1.10

                                                  Current attractiveness
                                                                                                                                                                                             24
Risk perception

Risk of market development by 2020
% asses the risk of market development of the following market by 2020 as follows
Base: All producers, which either currently distribute wine or plan to distribute wine to the following markets by 2020 (n=429)
                                                                                                                                                                     mean value
                                                                             low risk   medium risk      high risk
                                                                                                                                                       (-2 = very low risk; +2 = very high risk)

      Russia       11                                             51                                                          38                                             0.30
       Brazil     9                                               55                                                           36                                             0.27
      China             19                                                      53                                                           28                              0.04
          UK                        35                                                  33                                              31                                   -0.06
 Hong Kong                     30                                                            55                                                         16                   -0.14
        Italy                26                                                                   66                                                             8           -0.23
        USA                              40                                                         42                                                 18                    -0.30
South Korea                              40                                                              47                                                 13               -0.34
     Poland                                   45                                                                   50                                                5       -0.48
     France                                     48                                                            39                                            13               -0.48
   Australia                                              62                                                                 37                                          2   -0.69
     Austria                                         57                                                                 37                                       7           -0.70
      Japan                                                65                                                                 31                                     4       -0.71
  Germany                                                 63                                                                 34                                      4       -0.74
    Canada                                                   68                                                                    29                                4       -0.79
   Belgium                                                63                                                                 34                                       3      -0.79
Netherlands                                               63                                                                 34                                       3      -0.81
    Norway                                                   68                                                                         32                                   -0.85
    Sweden                                                              78                                                                        21                   1     -0.90
  Denmark                                                      71                                                                       26                           3       -0.90
Switzerland                                                            76                                                                    20                      4       -1.03

                                                                                                                                                                                              25
Differences between incumbents and entrants

Risk of market development – incumbents vs. entrants
Incumbents: producers currently selling in this market; Entrants: producers that plan to enter the market by 2020

                                          0.50
                                                   entrants perceive higher risk than incumbents

                                          0.30                                                                                                                 Russia

                                                                                                                                                                               Brazil
Risk of development as seen by entrants

                                          0.10
                                                                                                                                                China
                                          -0.10                                                          USA
                                                                                                                       Hong Kong           UK

                                          -0.30                                           South Korea
                                                                     Austria
                                                             Japan
                                          -0.50                Germany                         Poland                  Italy

                                                                    Australia                   France
                                          -0.70 Switzerland                 Canada
                                                            Netherlands       Belgium
                                                   Denmark
                                          -0.90           Sweden
                                                                       Norway
                                                                                                                                      entrants perceive lower risk than incumbents
                                          -1.10
                                               -1.10               -0.90          -0.70          -0.50         -0.30               -0.10                0.10            0.30            0.50

                                                       Risk of development as seen by incumbents
                                                                                                                                                                                         26
Risk and market attractiveness

Market attractiveness (barometer) vs. risk of market development

                                          low attractiveness + high risk                                                                         high attractiveness + high risk
                             0.30                                                                                           Russia              Brasil

                             0.10
                                                                                                                                                         China
                                                    UK
                             -0.10
                                                                                                                                                             Hong Kong
                                                                           Italy
Risk of market development

                             -0.30                                                                                                    USA
                                                                                                                                                                  South Korea

                             -0.50                       France                                                                                                        Poland

                             -0.70                                                           Austria                                          Japan        Australia
                                                                                                       Germany
                                                                                   Belgium                   Netherlands                            Canada
                                                                                                                                     Norway
                             -0.90                                                                                                   Sweden      Denmark

                                          low attractiveness + low risk                                                    Switzerland           high attractiveness + low risk
                             -1.10
                                     10                      20               30                40                50                     60                      70             80

                                             Market attractiveness (barometer)
                                                                                                                                                                                     27
Chapter 4

FUTURE SALES MARKETS

                       28
Key findings – Future sales markets

New markets for wine producers                                    Shift in sales markets
• By 2020 85% of ProWein exhibitors want to extent their          • There are many more markets where relative to current
  exports to new markets.                                           importance many new companies plan to enter and
                                                                    expand their export business: Russia, Japan, Australia,
Germany is less export-orientated than other countries              Brazil, South Korea.
• The share of producers who want to extent their exports to
  new markets is at nearly 100% for wine exporters from the big   Future sales markets are not linked to attractiveness
  European wine countries France, Italy and Spain.                • The amount of producers who want to extent their exports
• For the less wine export-orientated Germany this share is at      to a specific market is not linked to the market
  only 55%.                                                         attractiveness of those markets but to other factors.

Top 3 current sales markets stay important
• The top 3 current sales markets US, Germany and the UK are
  also the most frequently named export markets where
  companies want to extend their exports to.

Asian markets on the rise
• The currently less important sales markets China and Hong
   Kong are the most frequently named new export markets.

                                                                                                                               29
Export expansion to new markets

Expansion in export activities
% plan to expand their export activities to new markets by 2020
Base: All producers (n=414)

                                                                             9
                                                                      6

                                                                                        85

                                                                       Yes    No    I don't know

•   Most companies plan to expand their export activities to new markets by 2020.

                                                                                                   30
Export expansion plans by producer country

Expansion in export activities by company location
% plan to expand their export activities to new markets by 2020
Base: All producers, which have their company located in one of the following countries (n=427)

                                                                                                             2%
                                                             6%                                                                               7%
                                                                                                      1%
                    27%                                      3%

                    19%

                                                            91%                                      97%                                     93%

                    55%

                 Germany                                   France                                    Italy                                   Spain

                                                                        Yes   No     I don't know

•   In Germany only 55% plan to expand their export activities to new markets by 2020, in France, Italy and Spain more than 9 out of 10 companies plan to expand
    their export activities.
•   Results reflect the fact that ProWein serves as a domestic trade fair for Germany. Export orientated producers from France, Italy and Spain are therefore
    overrepresented compared to German companies.

                                                                                                                                                                   31
Export expansion plans by producer type

Expansion in export activities by type of company
% plan to expand their export activities to new markets by 2020
Base: All producers (n=414)

                    9%                                       3%                                         9%
                    2%                                      14%                                                                               16%
                                                                                                        5%

                                                                                                                                              24%

                   89%                                      83%                                        86%

                                                                                                                                              59%

                Small winery                             Cooperative                                Large winery                  Importer/exporter/distributor

                                                                        Yes   No     I don't know

•   Importers, exporters and distributors are less likely to expand their export activities within the next 3 years than other type of companies.
•   Country specific relationships between import and export markets are the main reason. New markets will bring up new local importers and distributers.

                                                                                                                                                                  32
Current and new wine sales markets

 Current sales markets                                                                         New sales markets by 2020
 % currently distribute wine in the following markets (top 5)                                  % plan to expand their export activities to the following markets (top 3)
 Base: All producers (n=429)                                                                   Base: All producers, which plan to expand their export activities (n=336)

  Germany                                                                                 56     Germany                                                           24
       USA                                                                           54               USA                                                               30
        UK                                                   32                                        UK                                                     19
   Belgium                                              28                                        Belgium                        7
Switzerland                                        23                                          Switzerland                       7
Netherlands                                        23                                          Netherlands                                    11
    Canada                                        22                                               Canada                                                16
      China                                  20                                                      China                                                    19
  Denmark                                   19                                                   Denmark                                     11
     France                                 18                                                      France           3
      Japan                             18                                                           Japan                                         14
       Italy                           16                                                             Italy      2
   Sweden                         12                                                              Sweden                                 9
 Hong Kong                    9                                                                 Hong Kong                                                16
     Russia                   9                                                                     Russia                                          15
    Austria                   8                                                                    Austria               5
    Norway                7                      Markets where relative to current                 Norway                    6
    Poland                7                      importance many new companies                     Poland                4
                                                 enter and expand their export                    Australia
   Australia          5                                                                                                                  9
                                                 business.
      Brazil       4                                                                                 Brazil                          8
South Korea       4                                                                            South Korea                               10
                                                                                                                                                                             33
New sales market and market barometer

New sales markets by 2020                                                     Market attractiveness (barometer)
% plan to expand their export activities to the following markets (top 3)     Calculated by using saldos of current and future economic attractiveness
Base: All producers, which plan to expand their export activities (n=336)     Base: All producers (n=429)

       USA                                                               30          USA                                                     61
  Germany                                                           24          Germany                                           49
        UK                                                     19                     UK                 18
      China                                                    19                   China                                                                  69
 Hong Kong                                                16                   Hong Kong                                                                         74
    Canada                                                16                      Canada                                                                   69
     Russia                                          15                            Russia                                                   59
      Japan                                         14                              Japan                                                             65
Netherlands                                    11                             Netherlands                                              54
  Denmark                                     11                                Denmark                                                          63
South Korea                               10                                  South Korea                                                                             77
   Sweden                                 9                                      Sweden                                                          62
   Australia                              9                                      Australia                                                                      72
      Brasil                          8                                             Brasil                                                            66
Switzerland                       7                                           Switzerland                                                    60
   Belgium                        7                                              Belgium                                38
    Norway                    6                                                   Norway                                                         62
    Austria               5                                                       Austria                                    42
    Poland                4                                                       Poland                                                                             76
     France           3                                                            France                     21
       Italy      2                                                                  Italy                         31
                                                                                                                                                                           34
Chapter 5

WINE ORIGINS

               35
Key findings – sought after wine origins

One in two marketers look for new wine origins                       International marketers visit ProWein to look for German wine
• Almost every second marketer plans to expand his wine range        • Germany, Spain, Italy and Portugal are most sought after
  to new countries.                                                     wine origins by international marketers followed by France
                                                                        and California.
Two in three international marketers plan to expand
• This willingness is particularly strong for international          Portugal is sought after both by international and German
  marketers where two in three plan to take up new origins into      marketers
  their range.                                                       Large European producer countries Italy, Spain and France are
                                                                     still sought after by marketers
German marketers are less interested in new origins
• Only one in three German marketer plans to extend his              German marketers look for their neighbor and domestic wines
  product range.                                                     • Austria, Portugal, Italy and Germany are most frequently
• Results reflect that ProWein serves as a domestic trade fair for     demanded wine origins that German visitors plan to include
  Germany. Import orientated marketers from abroad are                 into their range.
  therefore overrepresented compared to German marketers.

                                                                                                                                     36
Willingness to expand wine range

                                Expansion in wine range to new countries of origin
                                % of marketers, which plan to expand their wine range to new countries of origin by 2020
                                Base: All marketers (n=481 German marketers, n=422 international marketers)

                                                                         German marketers                                         International marketers

                                                                   33%                                           Yes                                                                   64%
- Research Februar 2017 HK/RR

                                                             37%                                                 No                         16%

                                                                          25%                               I don‘t know                    16%

                                                                                               4%            No answer            4%

                                •   Only 1 out of 3 visiting German marketers plan to expand their wine range to new countries of origin by 2020, on the other hand almost 2 out of 3 visiting
                                    international marketers plan to expand their wine range.
                                •   Results reflect the fact that ProWein serves as a domestic trade fair for Germany. Export orientated marketers from abroad are therefore overrepresented
                                    compared to German marketers.

                                                                                                                                                                                                 37
Sought after wine origins

                                Expansion in wine range to new countries of origin
                                % of marketers plan to expand their wine range to the following countries of origin by 2020
                                Base: All marketers, which plan to expand their wine range by 2020 (n=159 German marketers, n=270 international marketers)

                                                                    German marketers                                          International marketers
                                                     22%                                                    Germany                                                                29%
                                                                   15%                                        Spain                                                          24%
                                                                                                                                       Deutschland
                                                   23%                                                        Italy                                                        23%
                                                                                                                                        Deutschland
                                             26%                                                            Portugal                                                 21%
                                                             18%                                             France                     Deutschland            17%
- Research Februar 2017 HK/RR

                                                                                                                                        Deutschland
                                                                                     8%                    California                                          17%
                                          28%                                                                Austria                    Deutschland          16%
                                                                         13%                              South Africa                  Deutschland          16%
                                                                                     8%                    Australia                    Deutschland 12%
                                                                                     8%                   New Zealand                               12%
                                                                                     8%                    Argentina                            10%
                                                                               10%                            Chile                        8%
                                                                                            4%              Slovenia                       8%
                                                                                  8%                          Greece                     7%
                                                                                 9%                         Hungary                    6%
                                                                                          6%              Switzerland             4%
                                                                                            5%              Bulgaria            3%
                                                                                             4%            Romania              3%
                                                                                                  2%        Canada              3%
                                                                                                    1%       China            2%
                                                                                                     1%     Uruguay           2%
                                                                                                  2%          Brazil        1%
                                                                         13%                                 Other                                   12%
                                                                                 9%                            Not                     6%
                                                                                                                                                                                         38
Chapter 6

SALES CHANNELS

                 39
Key findings – sales channels

Sales channels from producers’ perspective                       Sourcing channels from marketers’ perspective

Online and food retail are the sales channels of the future      Direct sourcing from the producer will be the future
• The importance of sales channels was analysed for the two      • “producers be aware the marketers come knocking at your door”
  most important sales markets Germany and the US.               • Both for international and for German wine marketers sourcing from
• In both markets online and food retails are seen as the           a small winery will strongly increase in importance. Directly sourcing
  biggest winners.                                                  from large wine business will also improve but to a lesser extent.
• Sales through online retailers or direct online sales by the   • International and German marketers agree that mediators between
  producer are currently least important but will most              producers and marketers will decrease in importance for sourcing
  strongly increase in importance by 2020.                          wine.
• The increase of wine sales over food retailers is more         • Particularly wholesalers, wine agencies and to a smaller extend
  pronounced in Germany that is related to wine market              exporters/importers/distributers will decrease in importance.
  regulations in the US.
                                                                 Differences between international and German wine marketers
Specialty wine retails and gastronomy will further decline       • Sourcing from a large wine business is second most important for
• Wine merchants and gastronomy will decline in importance          international wine marketers but least important for German
  both in the US and in Germany.                                    companies.
• Direct sales in the US are expected to increase strongly       • Importer/Distributers and wine agencies are sourcing channels used
  while they are forecasted to be largely unchanged in              by more than a third of German wine marketers but less important for
  Germany.                                                          international companies.
• In Germany at present specialty wine retailers, gastronomy     • Sourcing wine from a small winery is the most frequently named
  and direct sales are of highest importance for wine               sourcing channel for wine marketers both internationally and
  producers (unweighted by volume).                                 nationally.

                                                                                                                                             40
Sales channels in Germany from producer
perspective
Current and future importance of different sales channels in Germany
% assess the current and future importance of the following sales channels for their main sales market Germany as follows
Base: All producers, which have their main sales market in Germany (n=107)

          Food retailers                                              Wine merchants                                             Direct sales (ex-cellar)

                                    48                       68
                     +                                                           _                                                             +            35
                                                                                                                            33
 21                                                                                              21

             2017        2020                                             2017       2020                                               2017       2020

       Direct sales (online)                                          Online retailers                                                Gastronomy
                                  68                                                          61
                     +                                                           +                                           34                _
                                                                                                                                                            29
   7                                                           7

              2017       2020                                             2017       2020                                               2017       2020
                                                                                                                                                                 41
Sales channels in the US from producer
perspective
Current importance of different sales channels in the US
% assess the current and future importance of the following sales channels for their main sales market USA as follows
Base: All producers, which have their main sales market in the US (n=76)

          Food retailers                                              Wine merchants                                        Direct sales (ex-cellar)

                                                              91                                                                                       39
                     +              37                                           _                                                        +
 28
                                                                                                 59
                                                                                                                        7

             2017        2020                                             2017       2020                                          2017       2020

       Direct sales (online)                                           Online retailers                                          Gastronomy
                                  49                                                           73
                     +                                                           +                                      67                _
                                                                                                                                                        62
  14                                                           34

              2017       2020                                             2017       2020                                          2017       2020
                                                                                                                                                             42
Sourcing channels from marketer perspective

                                Use of purchase channels
                                % of marketers generally use the following purchase channels
                                Base: All marketers (n=481 German marketers, n=422 international marketers)

                                                                      German marketers                                             International marketers

                                                                                                           Directly from a
                                     90%                                                                                                                     85%
                                                                                                            small winery
- Research Februar 2017 HK/RR

                                                                                                        Directly from a large
                                                                                 26%                                                                   31%
                                                                                                           wine business

                                                                                                             From an
                                                                    42%                                 importer/distributor                     24%

                                                                           33%                           From a wholesaler            10%

                                                                           33%                          From a wine agency             12%

                                                                                                2%             Other             3%

                                •   Directly from small wineries is the main sourcing channel used both by German and international marketers.

                                                                                                                                                                   43
Sourcing channels from marketer perspective

                                Development of importance of purchase channels
                                % of marketers are of the opinion, that the importance of the following purchase channels will change as follows for their company by 2020
                                Base: All marketers (n=481 German marketers, n=422 international marketers)

                                                                                                            deteriorating             improving

                                         Directly from a
                                          small winery

                                      Directly from a large
                                         wine business
- Research Februar 2017 HK/RR

                                           From an
                                      importer/distributor

                                       From a wholesaler

                                      From a wine agency

                                                                      -2                         -1                             0                              +1                      +2
                                                           significantly deteriorating                                                                                       Significantly improving

                                                                                                         German marketers
                                                                                                       Inland                              International marketers
                                                                                                                                          Ausland

                                •   Direct channels (directly from a small winery, directly from a large wine business) will increase in importance or stay unchanged.
                                •   Indirect wine sourcing channels are expected to decrease in importance by 2020.

                                                                                                                                                                                                44
Chapter 7

MARKETING PHILOSOPHY

                       45
Key findings – how to market wine

Majority sees bright future for marketing by origin and terroir   Strong wine cultural differences
• The majority of producers and marketers see wine marketing
  with focus on region/origin/terroir as most successful in the   German producers build on personality of wine maker
  future.                                                         Romanic producers trust in origin
Marketing by brand more important for producers                   • For German wine producers wine marketing with focus on the
• There are few differences between producers and marketers.        personality of the winery owner or winemaker is perceived to be
  Less marketers perceive brand as successful for marketing         the most successful marketing concept for wine in the future.
  compared to producers.                                          • Contrary in France, Italy and Spain wine marketing with focus
                                                                    on region/origin/terroir is ranked first.
Small producers see better future for marketing by personality    • Marketing with a brand is stronger favoured by producers in
Large producers have higher hopes in brand                          France, Spain and Germany than in Spain.
• Wine marketing with focus on the personality of the winery
   owner or winemaker is most popular among small wineries.       German marketers have low hopes for brand
• Wine marketing with a brand is most popular among large         International marketers see brand about equal with personality
   wineries.                                                      • German marketers believe stronger in origin and personality of
                                                                     the winemaker than international marketers.
                                                                  • International marketers have a stronger belief in brands as the
                                                                     future marketing concept. This difference is strongest for
                                                                     importers/exporters/distributers.

                                                                                                                                      46
How to market wine?

                                Future marketing concepts
                                % are of the opinion, that the following marketing concept for wine will be the most successful in the future
                                Base: All participants (n=494 producers, n=903 marketers)

                                                                 Producers                                                                             Marketers

                                                                                                      Wine marketing with focus                       14%
                                                                                                      on region / origin / terroir
                                                           24%
- Research Februar 2017 HK/RR

                                                                                                      Wine marketing with focus
                                                                                      48%             on the personality of the
                                                                                                      winery owner or                                                  53%
                                                                                                      winemaker                                 33%
                                                                                                      Wine marketing with a
                                                                                                      brand
                                                           28%

                                •   About 1 out of 2 companies regard wine marketing with focus on region / origin / terroir as the most successful marketing concept for wine in the future.
                                •   There are few differences between producers and marketers. Only half as many marketers perceive brand as successful for marketing wine compared to producers.

                                                                                                                                                                                              47
Producer by country

Future marketing concepts by company location
% are of the opinion, that the following marketing concept for wine will be the most successful in the future
Base: All producers, which have their company located in one of the following countries (n=374)

                       26%
                                                                     52%                               50%                                       53%

                       51%
                                                                     19%                                                                         22%
                                                                                                       38%

                       23%                                           30%                                                                         25%
                                                                                                       11%

                    Germany                                         France                             Italy                                     Spain

           Wine marketing with a brand                                                 Wine marketing with focus on the personality of the winery owner or winemaker
           Wine marketing with focus on region / origin / terroir

•   While in Germany wine marketing with focus on the personality of the winery owner or winemaker is perceived to be the most successful marketing concept for
    wine in the future, wine marketing with focus on region/origin/terroir is perceived to be the most successful wine marketing concept in France, Italy and Spain.
•   The result reflect the difference in wine classification systems between Germany, where wine quality is mostly based on the level of sweetness, and other countries
    such as France, Italy and Spain, where wine quality is mostly based on origin.

                                                                                                                                                                       48
Producer by company type

Future marketing concepts by type of company
% are of the opinion, that the following marketing concept for wine will be the most successful in the future
Base: All producers (n=494)

                     45%                                                                                47%                                        53%
                                                                    65%

                                                                                                        22%
                     33%                                                                                                                           21%
                                                                    8%

                                                                    27%                                 31%                                        26%
                     22%

                Small winery                                    Cooperative                        Large winery                        Importer/exporter/distributor

           Wine marketing with a brand                                                 Wine marketing with focus on the personality of the winery owner or winemaker
           Wine marketing with focus on region / origin / terroir

•   All type of companies expect wine marketing with focus on region/origin/terroir to be the most successful future marketing concept for wine.
•   Wine marketing with focus on the personality of the winery owner or winemaker is most popular among small wineries.
•   Wine marketing with a brand is most popular among large wineries.

                                                                                                                                                                       49
Marketers by origin

                                Future marketing concepts
                                % of marketers are of the opinion, that the following marketing concept for wine will be the most successful in the future
                                Base: All marketers (n=481 German marketers, n=422 international marketers)

                                                                      German marketers                                                     International marketers

                                        58%                                                             Focus on region/origin/terroir                                        48%
- Research Februar 2017 HK/RR

                                                                                                        Focus on the personality of the
                                                             36%                                                                                                   28%
                                                                                                         winery owner or winemaker

                                                                                            6%                  With a brand                                 23%

                                •   Both German marketers and international marketers expect wine marketing with focus on region/origin/terroir to be the most successful future marketing concept
                                    for wine.

                                                                                                                                                                                                50
Marketers by company type

                                Future marketing concepts
                                % of marketers are of the opinion, that the following marketing concept for wine will be the most successful in the future
                                Base: All marketers (n=481 German marketers, n=422 international marketers)

                                    Specialty retailer focused on wine                                                          Wholesaler focused on wine

                                                                                                       56                                                                         57
                                     German marketers                                        37                               German marketers                         32
                                                                 7                                                                                           11

                                                                                                        57                                                                   47
- Research Februar 2017 HK/RR

                                 International marketers                   21                                             International marketers                      31
                                                                           21                                                                                     22

                                    Importer / exporter / distributor                                                           Gastronomy

                                                                                                             62                                                                         66
                                     German marketers                                   34
                                                                                                                               German marketers                         32
                                                             4
                                                                                                                                                     2

                                                                                                  45
                                 International marketers                           31
                                                                             24

                                                                                                                                                                                       51
Chapter 8

DETAILS OF METHOD

                    52
Expert online survey

                                                                                          2 surveys

                                                    Producers (n=578)                                                        Marketers (n=909)

                                Survey period                                                         Survey period
                            • The survey was conducted from January 10, 2017 to January 26,       • The survey was conducted from January 17, 2017 to
                              2017.                                                                 January 30, 2017.
                                Participants                                                          Participants
- Research Februar 2017 HK/RR

                            • Targets for the survey were companies working in the wine               • Targets for the survey were companies working in the wine
                              industry that plan to exhibit at ProWein in 2017.                         industry that plan to visit ProWein in 2017.
                            • 5,863 ProWein exhibitors were contacted to participate, 578             • 15,706 ProWein visitors were contacted to participate, 909
                              conducted the survey. This represents a response rate of 9.9              conducted the survey. This represents a response rate of 5.8
                              percent.                                                                  percent.
                            • All participants were asked to have leading rolls within their          • All participants were asked to have leading rolls within their
                              company or department.                                                    company or department.
                                Method                                                                Method
                            • The survey was conducted online.                                        • The survey was conducted online.
                            • The survey was offered in five language versions English,               • The survey was offered in five language versions English,
                              French, German, Italian and Spanish. Participants could choose            French, German, Italian and Spanish. Participants could choose
                              the language of their preference.                                         the language of their preference.
                            • Participants who quit the survey too early or gave inconsistent         • Participants who quit the survey too early or gave inconsistent
                              answers were eliminated.                                                  answers were eliminated.                                     53
Producers

Company location
% have their company located in one of the following countries
Base: All producers (n=578)

      France                                                                                                                                         27
        Italy                                                                                                               21
   Germany                                                                                 15
       Spain                                                                     13                                                                  n>70
     Greece                            3
   Portugal                        3
  Argentina                    2
     Austria                  2
South Africa                  2
        Chile             1
New Zealand               1
 Switzerland          1
   Australia         1
     Canada         1
        USA         1
       Other                                  6

•   Almost 3 out of 4 participants have their company located in France, Italy, Germany or Spain. This is representative for ProWein participants.
•   Only countries with a sample size >70 are eligible for further in-depth analysis.

                                                                                                                                                            54
Producers

Type of company                                                                           Area of responsibility
% have the following type of company                                                      % have the following area of responsibility within the company
Base: All producers (n=578)                                                               Base: All producers (n=578)

                                      8                                                                                           4   3

                            8                                                                                                11

                       15
                                                                                                                                                       50

                                                        69                                                              32

                                                                                           Director, management                           Sales, distribution
                                                                                           Marketing, advertising, PR                     Manufacturing, production, quality control
        Small winery   Large winery       Cooperative   Importer/exporter/distributor      Purchasing, procurement                        Other

    Small winery = mainly own production of grapes
    Large wineries = mainly buying wine, with focus on bottling and marketing

    •     More than 2 out of 3 participants are from small wineries.
    •     1 out of 2 participants represent directors or managers within their company.
    •     The vast majority of participants have leading roles within their department.
                                                                                                                                                                               55
Producers

Vineyard area in hectares
% cultivate the following vineyard area within their company                                                        Median
Base: All small wineries and cooperatives (n=377)
                                                                                                •    By company location
       < 10 ha                     8
                                                                                                          France:                      40 ha
  10 - 19 ha                             11                                                               Germany:                     30 ha
                                                                                                          Italy:                       29 ha
  20 - 49 ha                                       17
                                                                                                          Spain:                       65 ha
 50 - 99 ha                                   13
                                                                                                •    By type of company
100 - 499 ha                           10
                                                                                                          Small winery:                30 ha
   > 500 ha                6
                                                                                                          Cooperative:                 650 ha
 No answer                                                                           35

Planned expansion of vineyard area
        Total                           By type of company                                                By company location
                               Small wineries            Cooperatives             France             Germany                   Italy                 Spain

                                                                                                                          38
  46                       45                                           49                 46                  48                               46
                      54                      55        51                   54                 52                                                           54
                                                                                                                                        62

       Yes       No                                                                                                                                               56
Producers

Wine production volume
% produce the following amount of wine within their company
Base: All small wineries, cooperatives and large wineries (n=436)
                                                                                                  Median
               < 10,000 l                                           9.3           •   By company location

       10,000 - 49,999 l                                             9.5                  France:           170,000 l
                                                                                          Germany:          150,000 l
       50,000 - 99,999 l                                            9.3                   Italy:            100,000 l
                                                                                          Spain:            50,000 l
    100,000 - 199,999 l                                                    11.6   •   By type of company

    200,000 - 499,999 l                                                    11.4           Small winery:     12,500 l
                                                                                          Cooperative:      300,000 l
    500,000 - 999,999 l                            5.7                                    Large winery:     1.4 million l

1 million - 4.99 million l                                          9.3

             > 5 million l                                          9.2

             No answer                                                                                                      24.6

                                                                                                                                   57
Marketers

                                Company location
                                % have their company located in one of the following countries
                                Base: All marketers (n=906)

                                     International vs. German                                     By continent                                     By country

                                                                                                      2%                         Netherlands                          18%
                                                                                                                                    Belgium                     13%
                                                                                                    5%                                France               6%
                                                                                            11%                                          USA               6%
- Research Februar 2017 HK/RR

                                                                                                                                   Denmark            4%
                                                                                                                                           UK         4%
                                                                                                                                     Canada           4%
                                   47%                             53%                                                               Sweden          3%
                                                                                                                                 Switzerland         3%
                                                                                                                                         Italy      3%
                                                                                                                                     Finland       3%
                                                                                                                                     Norway        3%
                                                                                                               83%
                                                                                                                                      Poland       3%
                                                                                                                                      Austria      2%
                                                                                                                                       Russia      2%
                                                                                                                                      Ireland     2%
                                                                                                                                    Romania       2%
                                          International   German                        Europe     America   Asia    Australia      Australia    2%
                                                                                                                                        China    2%
                                                                                                                                        Other                         19%

                                                                                                                                                                            58
Marketers

                                Type of company                                                                        Area of responsibility
                                % have the following type of company                                                   % have the following area of responsibility within the company
                                Base: All marketers (n=903)                                                            Base: All marketers (n=909)

                                                                                                        52
                                Specialty retailer focused on wine                                                                                         8
                                                                                   15

                                                                             10
                                     Wholesaler focused on wine
                                                                              11
- Research Februar 2017 HK/RR

                                                                                                                                              32

                                                                                   15
                                 Importer / exporter / distributor
                                                                                                             69                                                             61

                                                                         4
                                                      Hospitality
                                                                     1

                                                                                        19                                 Independent entrepreneur / self-employed   Director / management    Other
                                                     Gastronomy
                                                                         3

                                                     German marketers         International marketers

                                     •   While more than 1 out of 2 German marketers are specialty retailer focused in wine, more than 2 out of 3 international marketers are importers, exporters or
                                         distributors.
                                     •   The vast majority of participants have leading roles within their department.
                                                                                                                                                                                                     59
Marketers

                                Turnover with wine per annum
                                % generate the following turnover with wine per annum
                                Base: All marketers (n=895)

                                             Up to 125,000€                                                                                                               32

                                        126,000 to 250,000€                                 12

                                        251,000 to 500,000€                                           14                                Median
- Research Februar 2017 HK/RR

                                                                                                           •   By origin
                                       500,000 to 1 million €                           7
                                                                                                                    Germany:                              126,000 to 250,000€
                                    1 million € to 5 million €                                   13                 International:                        500,000 to 1 million €

                                   5 million € to 10 million €         3                                   •   By type of company

                                                                                                                    Specialty retailer focused on wine:   126,000 to 250,000€
                                  10 million € to 20 million €     2
                                                                                                                    Wholesaler focused on wine:           500,000 to 1 million €
                                                                                                                    Importer / exporter / distributor:    500,000 to 1 million €
                                     More than 20 million €                4                                        Gastronomy:                           126,000 to 250,000€

                                                  No answer                                           14

                                                                                                                                                                                   60
European Wine Business Summer School
Dijon 2017
ProWein supports executive education for European Wine Business

                                   5-8 July 2017 in Beaune Burgundy
                                     „New Markets and New Wine“

                              Details can be found at home page of EWBSS.

                                                                            61
Contact Information

      Christiane Schorn                    Prof. Dr. Simone Loose
       Manager Press                   Head of Department of Business
    Department ProWein                Administration and Market Research
      Messe Düsseldorf                      Geisenheim University
    Tel. +49 211 4560 991                    Tel. +49 6722 502 382

SchornC@messe-duesseldorf.de                 Simone.Loose@hs-gm.de

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