Prof. Dr. Dieter Hoffmann, Geisenheim University, 2013 The wine market in Germany in 2012 Prof. Dr. Dieter Hoffmann, Geisenheim University, 2013

German wine market was in 2012… Nr. 1 by imports 16 Mio. hl Nr. 1 by sparkling wine consumption 4 l / head Nr. 4 by total wine consumption 21 Mio. hl Nr. 11 by wine production 9.5 Mio. hl turnover retail level 7.3 Bill. € No wine tax, only VAT, no limitation on trade: liberal

German wine market was in 2012 … Production: 9.0 Mio. hl after 9.2 Mio. hl in 2011 Consumption: in volume + 2 - 5 % in value + 6 % Export: in volume + 4 % Import: in volume + 2 %, mainly for re-exporting decrease of imports in bottles and increase of imports in bulk

German wine market in 2012 …

Economic situation in wine business in Germany in 2012

Import of still wine (till 15 % vol.) to Germany Source: www.weinoekonomie-geisenheim.de

( 15 % vol.) Import of bulk wines to Germany Source: www.weinoekonomie-geisenheim.de

Wine production in Germany Prädikatswein Source: www.weinoekonomie-geisenheim.de

Structure of wine production in Germany 2012 Cultivated Grape Area : 98 000 ha in production Wine Production : 9.2 Mio. hl on Average (2010: 6.9) Wine Growers : 26.000 > 0.3 ha (+ 25 000 < 0.3 ha) Wine Cooperatives (With own vinification and bottling) Number: 111 Members: ca. 49 000 Surface under vine: 32 000 ha Production: 2,8 Mio. hl Sales (Mio. hl): Bulk wines Bottled Wines 0.4 2.4 Wine Growers with Bulk Wine Number: ca. 10 000 Surface under vine: 36 000 ha Production: ca. 3.4 Mio. hl Sales (Mio. hl): Bulk wines 3.4 Wine Estates Selling Bottled Wines Number: ca. 8 000 Surface under vine: ca. 30 000 ha Production: 3.0 Mio. hl Sales (Mio. hl): Bulk wines Bottled Wines 0.4 2.6 Source: www.weinoekonomie-geisenheim.de

Structure of wine bottling in Germany (Mio. hl) 2012 German bulk wine: 4.0: Import Bulk Wine 9.5 German bulk wine: 0.2: 2.7 6.9 ‚Sparkling‘ Wineries Number: 1123, (10 for 90 %) Production: 2.85 ‚Still Wineries‘ Number: ca. 200 Production: 10.9 Sparkling Wine Export: 0.4 Import: 0.85 10.9 still wineries 2.4 cooperatives 2.6 estates 15.9 total Bottled Wine 5.5 (Pearl Wine 0.7) Export Bulk Wine: 0.7 Bottled Wine: 3.7 3.3 Sparkling Wine 17.7 Still Wine Total 21 Mio. hl Source: www.weinoekonomie-geisenheim.de

Still wine distribution in Germany in 2012 Volume Value Mio. hl Bill. € VolumeMio.hl P.o.P.‘s for home consumption 17.7 7.3 Value Value Bill. € (outlets) (€/l) Bill. € 3.1 1.1 (3.50) outdoor 3.9 14.6 6.2 2,6 1.6 Estates and (6.00) Cooperatives (8 000) 1,2 home consumption 5.1 1.2 Wine shops (10.00) (4 000) mass market premium market 1.9 5.7 Super-/Hypermarket (3.80) (40 000) 3.4 1.5 Discount (2.60) (14 000) Source: www.weinoekonomie-geisenheim.de

Trends in the wine market declining production -worldwide- increasing consumption new products: Glühwein increasing prices fast globalisation of the wine market Germany: the central European bottling location

Summary: the German wine market is … highly attractice because of increasing demand, highly attractive because of fast increasing imports, very competitive on quality, price and promotion, very complex through a large diversity of channels, open-minded about wines from all over the world, free of wine- and other taxes, excl. 19 % VAT, strictly quality-managed.

Wine Consumer Survey in Germany in 2011: sample: 16 years and older, total sample 2068 people, 1249 wine consumer (60 %) Segmentation by social status: A upper class B middle class C simple class (by income, education, profession)

Prof. Dr. Dieter Hoffmann dieter. hoffmann@hs-gm Prof. Dr. Dieter Hoffmann dieter.hoffmann@hs-gm.de (new) (+49) 06722-502-381 www.weinoekonomie-geisenheim.de/ Themen or Publication