PROWEIN BUSINESS REPORT 2017 - Prof. Dr. Simone Loose, Evelyn Pabst M. Sc., Dr. Gergely Szolnoki Geisenheim University, Department of Business ...
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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
0Background
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.
1Contents
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
2Chapter 1
WHO PARTICIPATED?
3Participants
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. 4Chapter 2
ECONOMIC CONDITION
5Economic 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
6Key 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.
7Overall 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.
8Detailed 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
9Producers 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.
10Producers 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. 11Marketers 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.
12German 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. 13International 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.
14Chapter 3
SALES MARKETS
ATTRACTIVENESS
15Sales 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
16Key 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.
17Key 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
18Top 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
19Market 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
20Differences 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
21Expected 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
22Differences 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
23Current 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
24Risk 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
25Differences 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
26Risk 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)
27Chapter 4
FUTURE SALES MARKETS
28Key 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.
29Export 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.
30Export 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.
31Export 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.
32Current 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
33New 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
34Chapter 5
WINE ORIGINS
35Key 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.
36Willingness 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.
37Sought 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%
38Chapter 6
SALES CHANNELS
39Key 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.
40Sales 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
41Sales 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
42Sourcing 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.
43Sourcing 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.
44Chapter 7
MARKETING PHILOSOPHY
45Key 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.
46How 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.
47Producer 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.
48Producer 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.
49Marketers 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.
50Marketers 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
51Chapter 8
DETAILS OF METHOD
52Expert 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. 53Producers
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.
54Producers
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.
55Producers
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 56Producers
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
57Marketers
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%
58Marketers
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.
59Marketers
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
60European 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.
61Contact 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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