WINES OF GERMANY IN JAPAN MARKET DATA

Transcription

1 WINES OF GERMANY IN JAPAN MARKET DATA Tokyo, May 23rd 218

2 IN A FLASH GERMAN WINES AND THE JAPANESE MARKET IN The still and sparkling wine markets in Japan showed positive trends in 217 (respectively +3,6% and +2,4%). Imports of German wines are still in recoil for 217, but results gathered for 12 months until February 218 are encouraging: +4.5% in volume / +15.2% in value Imports of German sparkling wines, especially, showed good results (+19,7% in volume). German wines have well positioned price points, in harmony with the reality of the market. German wines are well positioned to take advantage of new consumption trends: dry, well balanced and cool climates white wines. The EPA will be implemented in 219 and German wines will benefit from it. A list of the future German protected wine designations in Japan was made public (details slide 39) Wine professionals have payed attention to the reopening of the Japanese Wines of Germany office and are expecting positive changes in perception of German wines: 12 new importers and major retailers have been converted to German Wines within 2 years!

3 THE JAPANESE MARKET

4 THE WINE MARKET IN JAPAN: KEY NUMBERS A key market 6th biggest market worldwide for imported still wines 2nd market in Asia behind China An expanding market 48% increase in volume of imported wine between 28 and 217 Consumption per capita 3,6 liters Per capita in liters in liters in 1995 Wine imports in Japan More than 2 hl Imported in 217 (less than 1 million in 1996) Main players in volume 1 st Chile 2 nd France 3 rd Italy Distribution channels 33% Of the volume is sold in supermarkets 29% HoReCa 1% CVS* 1% Discount 7% Liquor stores Sources: Japanese Market News Hightlights «Wands» (218), Euromonitor, Wine Intelligence (216) 4

5 OVERALL DATA The Japanese still wine market is on a recovery trend from its negative 216 s results. In 217, it boasted an increase of 3,6% in imported volumes. Sparkling wine is still soaring in popularity. 217 is the 8 th consecutive year of growth for the category.

6 OVERALL RECORDED DATA FOR STILL WINE Japanese market, evolution of still wine imports (27-217, hectoliters) Source: Wands, April 218 (Japanese customs data) 6

7 Hectoliters OVERALL RECORDED DATA FOR STILL WINE Still wine imports by country of origin (217 data, hectoliters, TOP 1 biggest COO 1 ) ,2% +,1% % of change 217 vs ,2% +2,6% ,2% 2. +5,% ,2% -3,3% -25,1% +1,2% Chile France Italy Spain Australia United States South Africa Germany Argentina New Zealand In 217, Japanese wine imports moved up 3,6% compared to 216 to reach hectoliters. It shows a recovery from 216 even if it is far from being a record year (215 totaled hectoliters). 1 Country of origin Source: Wands, April 218 (Japanese customs data) 7

8 OVERALL RECORDED DATA FOR SPARKLING WINE Japanese market, evolution of sparkling wine imports (27-217, hectoliters) Source: Wands, April 218 (Japanese customs data) 8

9 Hectoliters OVERALL RECORDED DATA FOR SPARKLING WINE Sparkling wine imports by country of origin (217 data, hectoliters) ,5% % of change 217 vs ,2% 1. +,2% % ,5% ,9% +19,7% -1,4% -39,4% -25,1% +44,9% France Spain Italy Chile Australia Mexico Germany South Africa United States Argentina Others In 217, Japanese sparkling wine imports moved up +2,4% compared to 216 to reach hectoliters. 217 was a record year for sparkling wine imports. Volumes have been increasing since 29 to exceed 4 cases of 9 liters for the first time. Source: Wands, April 218 (Japanese customs data) 9

10 MARKET SHARES FOR STILL AND SPARKLING WINES Market share of imported still wine by COO (217 data, hectoliters, TOP 1 biggest COO) Market share of imported sparkling wine by COO (217 data, hectoliters) United States 4% South Africa 1% Australia 4% Germany 1% Argentina 1% New Zealand 1% South Africa Germany 1% 1% Mexico 1% Argentina % Chile 8% Australia 6% United States % Others 1% Spain 13% Chile 31% Italy 19% Italy 19% France 38% France 25% Spain 25% Regarding the still wine category, market share have not evolved much in 217 compared to 216. Chile continues to increase the gap between its leadership position and its followers. Looking at sparkling wine, 217 was a record year for champagne (+17,6% in volume and +21,3% in value) strengthening France s 1 st position. Spain is in recoil but it should be taken with a pinch of salt as most of Spanish leader Freixenet s cava sold in Japan is produced by Freixenet de Mexico (Mexico: +54,9% in volume in 217). Chile, however, is dropping 16% in 217. It s the origin s first decrease in volume imported since 27. Source: Wands, April 218 (Japanese customs data) 1

11 FOCUS ON: DISTRIBUTION Globally, consumers stay focused on affordable wines (over 5 to less than 1,5). But spending has increased for premium wines ontrade. Despite a slight recoil in 217, supermarkets are still leading wine sales in the archipelago. Internet is the new trendy outlet for buying wine.

12 THE JAPANESE MARKET BY PRICE CATEGORIES Market scale of imported still wine by price zone (217 data, hectoliters) % of change 217 vs. 216 MOST DYNAMIC PRICE CATEGORIES +12% +2% +5% 1 or more 5 to less than 1 73% of the market 3 to less than 5-3% 2 to less than 3-2% 1 5 to less than % 1 to less than % over 5 to less than 1 +1% 5 or less The biggest part of the market is still in the less than 1 to less than 1 5 category. However, the 1 to less than 1 5 category observed a clear recoil in 217 (the most important of all price categories). The over 5 to less than 1 category is stagnating. The main part of the growth is situated in high priced categories (to 3 to more than 1 ). Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 12

13 PRICE CATEGORIES / FOCUS OFF TRADE Market change in % vs. 216 by price categories, off-trade sector (217 data) 6% 4% 2% % Market share of imported still wine by sales outlets (217 data, vin volume) Convenience stores 14% Others (Internet) 12% Liquor shops 1% Department stores 3% -2% Discount shops 15% Supermarkets 46% -4% -6% -8% -1% 1 or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 over 5 to less than 1 Change (%) vs. 216 % -4% 2% -9% -1% 1% -1% 4% 5 or less Off-trade consumers continue to be focused on the lower end of the price spectrum with highest prices suffering huge drops (the only category that seems to stay on a positive trend being the 3 to less than 5 category. As mentioned earlier, supermarkets are still the main outlets for buying wine in Japan. Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 13

14 PRICES CATEGORIES / FOCUS ON TRADE Market change in % vs. 216 by price categories, on-trade sector (217 data) 3% 2% 1% % -1% -2% -3% 1 or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 over 5 to less than 1 5 or less Change (%) vs % 7% 9% 4% -3% -18% 1% -28% Low priced wines are still suffering heavily on-trade with the only exception being wines priced over 5 to less than 1. Restaurants and especially bars have been through a tough year in 217 with consumers saving up on money and increasing their athome drinking. However, wines situated on the highest price range are still increasing their volume. When going out, Japanese consumers are still attached to top of the range bottles. At the same time, 217 was a record year for tourism in Japan with more than 26 million of foreigner welcomed to the archipelago. The expenses of these consumers have been on the rise as the Tourism Agency reported a higher average spending per tourist. Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 14

15 THE JAPANESE MARKET BY TYPE OF OUTLET Market scale of imported still wine by type of sales outlet (217 data, hectoliters) % +1% -6% -4% HORECA Liquor shops Department stores Supermarkets Discount shops Convenience stores Others (Internet) % of change 217 vs % 33% of the market -3% MOST DYNAMIC OUTLET +11% As the years go by, Japan is steadily becoming more and more an off-trade marketplace for wines as the gap between off and ontrade market shares is widening (from a 33 / 67 in favor of off-trade sales in 212 to a 29 / 71 in 217, still in favor of off-trade sales). Looking at off-trade channels, while supermarkets are losing ground in 217 (they have been on a decreasing trend since 216) discount shops made a comeback (the last time they saw their wine volume increases was in 213). Convenience stores wine sales are in recoil since 216 (same can be said for liquor shops). Internet sales, however, have seen tremendous results in the past years (+147% since 212). Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 15

16 GERMAN WINES ON THE JAPANESE MARKET

17 OVERALL DATA Japanese imports of German still wine have been negative again in 217 but numbers have been on a stabilizing trend since 215 and picked up again for 218 s first trimester. Sparkling wines enjoyed good results for the first time since 213.

18 OVERALL RECORDED DATA FOR GERMAN WINES IN JAPAN German wine exports to Japan, first results of 218 (DWI statistics) March 216 to February 217 March 217 to February 218 Value Volume Value Volume Change Share of /hl /hl 1 hl 1 hl Value Volume Value Volume ,2% 4,5% 3,7% 2,4% Market evolution of imported German still & sparkling wine (27-217, hectoliters) Sparkling wine Still wine German wines suffered a -3,3% drop in 217 but importations seem to be stabilizing with decreases slowing down. For 218 numbers are on a positive trend again with the first semester showing exciting results (+4,5% in volume and +15,2% in value for the period going from March 217 to March 218 compared to the same previous period). Sparkling wine imports are on the rise in 217 after a few years of decreases, well on their way to exceed again the 3 hectoliters if this trend continues in 218. Boosted by women s appreciation of the delicacy and bubbles of sparkling wine, the market is blooming. German sparkling wines have everything the consumer might want: freshness, a well balanced taste, quality and prices more in tune with the at-home drinking trend of the market than Champagne. Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 18

19 COMPARISON BETWEEN GERMAN WINE AND MARKET TRENDS German imported sparkling & still wines trends compared to global market importations trend (27-217, hectoliters) STILL WINE Diagrammtitel SPARKLING WINE Diagrammtitel Imported German still wine Imported still wine (total) Imported German sparkling wine Imported sparkling wine (total) Sources: Wands, April 218 / 217 / 216 / 215 / 214 / 213 (Japanese customs data) 19

20 THE GERMAN ORIGIN KEEP ITS RANK AMONG THE TOP 1 Still wine imports ranking by country of origin and Cumulated Annual Growth Rates, short and long-term (27 217, hectoliters, TOP 1 COOs) RANK Compared to 216 COUNTRY CAGR vs. 17 / 16 CAGR 17 / 12 1 = Chile ,2% 462,66% 2 = France ,1% -9,63% 3 = Italy ,1% 51,32% 4 = Spain ,6% 18,74% 5 1 Australia ,% 2,88% 6 1 United States ,2% -62,75% 7 2 South Africa ,2% 128,66% 8 1 Germany ,3% -24,7% 9 1 Argentina ,1% 5,22% 1 1 New Zealand ,2% 138,62% In 217, Germany ranks at the 8 th place in the TOP 1 main origins on the Japanese market. It fell one step compared to its position in 216. Looking at previous rankings (as far behind as 211 s one), Germany s position in the Top 1 main importers remained more or less the same. Source: Wands, April 218 (Japanese customs data) 2

21 FOCUS ON: DISTRIBUTION German wines are well positioned in terms of price categories. They match the current positioning of the whole Japanese wine market. Their best performance is in the 1 5 to less than 2 price zone. They recorded good performances in discount shops and online even if supermarkets stay their main sales outlets.

22 IMPORTS OF GERMAN WINE BY PRICE CATEGORIES Market scale of imported German still wine in Japan, by price categories (217 data, cases of 9 liters) Market share of imported German still wine by price categories (217 data, volume) On-trade Off-trade Total GERMANY vs. 216 Volume Share Volume Share Volume Share 1 or more % 9 % 9 % - 5 to less than 1 9 % 18 1% 18 1% -33,3% 5 or less 3% 1 or more % 5 to less than 1 1% 2 to less than 3 9% 3 to less than 5 3% 3 to less than % 45 2% 72 3% -11,1% 2 to less than % % % -17,6% 1 5 to less than % % % -3,4% 1 to less than % % % -14,9% over 5 to less than 1 29% 1 5 to less than 2 9% over 5 to less than % % % -5,3% 1 to less than % 5 or less % 9 3% 9 3% 9,% TOTAL % % % -8,8% vs ,% -2,8% -8,8% The category where German wines perform the best is the 1 5 to less than 2. Looking at market trends for that price category (charts can be found in the following slides), German wines results seem to be following the current market impulses. Source: Wands, April 218 (Japanese customs data) 22

23 EVOLUTION OF GERMAN WINE IMPORTS BY PRICE CATEGORIES Market scale of imported German still wine in Japan, by price categories (217 data, hectolitres) % of change 217 vs or more -33,3% 5 to less than 1 75% of German wines -11,1% 3 to less than 5-17,6% 2 to less than 3-3,4% 1 5 to less than ,9% 1 to less than 1 5-5,3% over 5 to less than 1 +9% 5 or less German wines are still mainly positioned onto the 1 to less than 1 5 and over 5 to less than 1 price range (75% of the total imported volumes of German wines on the archipelago) and these price segment represent the biggest part of the current Japanese wine market (73% of the total market). While these price categories are well attuned to consumers demands, they also became highly competitive in the past years, increasing the challenge for all origins to keep their sales upright for their products positioned in this range. Source: Wands, April 218 (Japanese customs data) 23

24 COMPARISON BETWEEN GERMAN WINE AND MARKET TRENDS 5 or less price category (hectoliters) Over 5 to les than 1 price category (hectoliters) German wine / 5 or less Wine market / 5 or less German wine / over 5 to less than 1 Wine market / over 5 to less than 1 1 to les than 1 5 price category (hectoliters) 1 5 to les than 2 price category (hectoliters) German wine / 1 to less than 1 5 Wine market / 1 to less than 1 5 German wine / 1 5 to less than 2 Wine market / 1 5 to less than 2 Source: Wands, April 218 (Japanese customs data) 24

25 COMPARISON BETWEEN GERMAN WINE AND MARKET TRENDS 2 to less than 3 price category (hectoliters) 3 to les than 5 price category (hectoliters) German wine / 2 to less than 3 Wine market / 2 to less than 3 German wine / 3 to less than 5 Wine market / 3 to less than 5 5 to les than 1 price category (hectoliters) 1 or more price category (hectoliters) German wine / 5 to less than 1 Wine market / 5 to less than 1 German wine / 1 or more Wine market / 1 or more Source: Wands, April 218 (Japanese customs data) 25

26 EVOLUTION OF GERMAN WINE IMPORTS BY SALES OUTLET Market scale of imported German still wine in Japan, by sales outlet (217 data, hectoliters) 16. % of change 217 vs ,9% ,8% Retail shops specialising in onpremise -21,2% -29,2% 4% of market share -27,3% General liquor shops Department stores Supermarkets Discount shops Convenience stores Others ,2% +35,3% German wines had positive results for both discount shops and Internet sales. However, their main selling point stay in supermarkets (4% of German wines sales). The negative performance of German wines here is following market trends (-3,5% for global supermarket sales of wine in 217). Source: Wands, April 218 (Japanese customs data) 26

27 COMPARISON BETWEEN GERMAN WINE AND MARKET TRENDS HORECA sales outlets Department stores German wines / Department stores German wines / HORECA Wine market / HORECA Wine market / Department stores General liquor shops Supermarkets German wines / General liquor shops Wine market / General liquor shops German wines / Supermarkets Wine market / Supermarkets Source: Wands, April 218 (Japanese customs data) 27

28 COMPARISON BETWEEN GERMAN WINE AND MARKET TRENDS Discount shops Others (Internet) German wines / Discount shops Wine market / Discount shops 15 1 Convenience stores German wines / Convenience stores Wine market / Convenience stores German wines / Others (Internet) Wine market / Others (Internet) Source: Wands, April 218 (Japanese customs data) 28

29 TO GO FURTHER

30 JAPANESE MARKET / WINE IMPORTS COMPLETE RANKINGS Still wine imports ranking by country of origin (27 217, hectoliters, TOP 2 COOs) RANK Compared to 216 COUNTRY vs. 216 PDM 1 = Chile ,2% 3,5% 2 = France ,1% 24,9% 3 = Italy ,1% 18,2% 4 = Spain ,6% 12,4% 5 1 Australia ,% 4,3% 6 1 United States ,2% 3,7% 7 2 South Africa ,2% 1,4% 8 1 Germany ,3% 1,4% 9 1 Argentina ,1% 1,1% 1 1 New Zealand ,2%,6% 11 1 Portugal ,5%,6% 12 = Bulgaria ,5%,2% 13 1 Hungary ,6%,1% 14 1 Austria ,2%,1% 15 = Georgia ,1%,1% 16 = Moldavia ,%,1% 17 3 Romania ,9%,% 18 1 Israel ,5%,% 19 = Greece ,2%,% 2 2 India ,4%,% Others ,6%,2% TOTAL ,6% 1,% Sparkling wine imports ranking by country of origin (27 217, hectoliters, TOP 1 COOs) RANK Compared to 216 COUNTRY HL HL HL HL HL HL HL HL HL HL HL vs. 216 PDM 1 = France ,92 9,5% 37,8% 2 = Spain ,62-4,2% 25,1% 3 = Italy ,33,2% 18,6% 4 = Chile ,5-16,% 8,1% 5 = Australia ,99 25,5% 5,9% 6 = Mexico ,13 54,9% 1,6% 7 3 Germany ,99 19,7%,8% 8 1 South Africa ,16-1,4%,6% 9 2 United States ,9-39,4%,5% 1 2 Argentina ,49-25,1%,3% Others ,4 44,9%,6% TOTAL ,98 2,4% 1,% Source: Wands, April 218 (Japanese customs data) 3

31 JAPANESE MARKET / EVOLUTION FOR STILL WINE ORIGINS Changes in % (compared to 216) of TOP 2 still wine origins volumes imported in Japan 12,% 1,% 8,% 6,% 4,% 2,%,% -2,% -4,% Chile France Italy Spain Australia United States South Africa Germany Argentina New Zealand Portugal Bulgaria Hungary Austria Georgia Moldavia Romania Israel Greece India Change (%) vs ,2%,1% 5,1% 2,6% 5,% -19,2% 15,2% -3,3% -25,1% 1,2% -16,5% 19,5% 22,6% -1,2% 19,1% 13,% 26,9% -,5% -,2% -2,4% Source: Wands, April 218 (Japanese customs data) 31

32 JAPANESE MARKET / EVOLUTION FOR SPARKLING WINE ORIGINS Changes in % (compared to 216) of TOP 2 sparkling wine origins volumes imported in Japan 6,% 4,% 2,%,% -2,% -4,% -6,% France Spain Italy Chile Australia Mexico Germany South Africa United States Argentina Change (%) vs ,5% -4,2%,2% -16,% 25,5% 54,9% 19,7% -1,4% -39,4% -25,1% Source: Wands, April 218 (Japanese customs data) 32

33 JAPANESE MARKET / MARKET SHARES BY PRICE CATEGORIES Market share of imported still wines by price zones (GLOBAL, 217 data, volume) Market share of imported still wines by price zones (OFF-TRADE, 217 data, volume) Market share of imported still wines by price zones (ON-TRADE, 217 data, volume) over 5 to less 1 5% 1 or + % 5 to less 1 1% 5 or - 6% 3 to less 5 2% 2 to less 3 7% 1 5 to less 2 11% 1 to less % 1 or + 1% 5 or - 1% over 5 to less 1 45% 5 to less 1 1% 3 to less 5 4% 2 to less 3 1% 1 5 to less 2 13% 1 to less % 5 to less 1 % 1 or + % over 5 to less 1 53% 5 or - 8% 3 to less 5 2% 2 to less 3 5% 1 5 to less 2 1% 1 to less % Source: Wands, April 218 (Japanese customs data) 33

34 JAPANESE MARKET / EVOLUTION OF IMPORTS BY PRICE CATEGORIES Changes in % (vs. 216) of volumes of still wine imported by price zones (GLOBAL, 217 data) Changes in % (vs. 216) of volumes of still wine imported by price zones (OFF-TRADE, 217 data) 15% 6% 4% 2% % 1% -2% -4% -6% -8% 5% -1% 1 or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 Over 5 to less than 5 or less 1 Change (%) vs. 216 % -4% 2% -9% -1% 1% -1% 4% % Changes in % (vs. 216) of volumes of still wine imported by price zones (ON-TRADE, 217 data) 3% -5% 2% 1% % -1% -1% 1 or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 Over 5 to less than 1 Change (%) vs % 2% 5% -3% -2% -7% 2% 1% 5 or less -2% -3% 1 or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 Over 5 to less than 5 or less 1 Change (%) vs % 7% 9% 4% -3% -18% 1% -28% Source: Wands, April 218 (Japanese customs data) 34

35 GERMAN WINES / MARKET SHARES BY PRICE CATEGORIES Market share of German wines by price zones (GLOBAL, 217 data, volume) Market share of German wines by price zones (OFF-TRADE, 217 data, volume) Market share of German wines by price zones (ON-TRADE, 217 data, volume) 1 or more % Over 5 to less than 1 5% 5 to less than 1 1% 5 or less 6% 3 to less than 5 2% 2 to less than 3 7% 1 5 to less than 2 11% 1 to less than % 5 or less 8% 1 or more % Over 5 to less than 1 53% 5 to less than 1 % 3 to less than 5 2% 2 to less than 3 5% 1 to less than % 1 5 to less than 2 1% 5 or less 1% 1 or more 1% Over 5 to less than 1 45% 5 to less than 1 1% 1 to less than % 3 to less than 5 4% 2 to less than 3 1% 1 5 to less than 2 13% Source: Wands, April 218 (Japanese customs data) 35

36 GERMAN WINES / EVOLUTION BY PRICE CATEGORIES Market evolution of German wines by price zones (OFF-TRADE, 217 data, hectoliters) Market evolution of German wines by price zones (ON-TRADE, 217 data, hectoliters) or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 over 5 to less than 1 5 or less or more 5 to less than 1 3 to less than 5 2 to less than to less than 2 1 to less than 1 5 over 5 to less than 1 5 or less Source: Wands, April 218 (Japanese customs data) 36

37 GERMAN WINES / EVOLUTION BY SALES OUTLET Changes in % (compared to 216) of imported German wines volumes by sales outlet 4,% 3,% 2,% 1,%,% -1,% -2,% -3,% -4,% Retail shops specialising in onpremise General liquor shops Department stores Supermarkets Discount shops Convenience stores Others Datenreihen1-21,8% -21,2% -29,2% -3,9% 4,2% -27,3% 35,3% Source: Wands, April 218 (Japanese customs data) 37

38 MARKET TRENDS Convenience stores are increasing the size of their wine linear with the will to move upscale. OFF-TRADE SITUATION Civil year 217 Decrease in turnover for supermarkets: -.9% Decrease in turnover for supermarkets specialized in food: -.4% Light increase in turnover for department stores: +.1% ON-TRADE SITUATION Civil year 217 Light increase in turnover for restaurants: +3.1% Source : Nikkei 38

39 MARKET TRENDS Briefer toute E-sales of wine are l équipe sur on a tremendously l édito? positive trend In 217, the turnover of the 3 main e-commerce companies in Japan (Rakuten, Yahoo and Amazon Japan) increased 13% compared to 216, exceeding for the first time the turnover of Japanese supermarkets. Japanese consumers are increasingly buying through Internet with an average monthly spending per households of 1 yens. Changes for the national liquor tax law in 217 The liquor tax applied to wine will increase in 22 and in 223. Market shifts might be observed from this revision as countries that do not have economical partnership agreement resulting in declining import duties might loose competitiveness. The current liquor tax rate on wine of 8, (about $72) per kiloliter, and the rate for Japanese sake, 12, (about $1,9) per kiloliter, will be equal at 1, (about $91) per kiloliter in 223. Briefer toute Increase in prices l équipe sur for imported wines l édito? in 218 The 1 st of April, four major Japanese importers (Asahi, Sapporo, Suntory and Mercian) increase between 3 and 6% the prices of some of their imported French, Chilean and Japanese wines. For 218, overall price rises in the wine category will be inevitable as the market will try to cope with the complicated harvest suffered by Old World Producers in 217. EPA s list of protected European designations Japan and Europe will sign mid-july their Economical Partnership Agreement. Both economic entities are engaged in a race against time for the accords to come into effect before the UK leaves Europe in march 219. In parallel, the Fiscal Agency made public the listing of alcohol appellations that will benefit from a protection in the settings of the JEFTA. 8 German appellations are concerned: Bayerisches Bier, Münchener Bier, Korn/Kornbrand, Franken, Mittelrhein, Mosel, Rheingau, Rheinhessen 39

40 CONSUMERS ARE STILL VERY MUCH FOCUSED ON QUALITY 5 MORE IMPORTANTS CRITERIAS WHEN CHOSING WINE FOR JAPANESE CONSUMERS % of Japanese consumers There is a growing refinement among Japanese palates as they become more involved in wine, and more eager to pair it with their cuisine. Wine Intelligence, The Japanese Wine Landscape Report (216) 1. The region of origin 59% 2. The country of origin 58% 3. The taste / the description of the wine s style 52% 4. The grape variety/ies used 51% 5. Recommendations from friends / family 49% Source: Wine Intelligence, The Japanese Wine Landscape Report (216)

41 CONSUMERS ARE DIVERSIFYING THEIR PURCHASES Japanese consumers are expanding their horizons when it comes to wine, and diversifying when it comes to buying it. Prestige and tradition are waning in importance, as testified by the recent decline in consumption of French wines, as well as the decline in awareness of prestigious, Old- World regions such as Bordeaux, Beaujolais and Bourgogne. Wine Intelligence, The Japanese Wine Landscape Report (216)

42 CONSUMPTION TRENDS Briefer toute Value-for-money l équipe sur l édito? wines Wine consumption is increasing in Japan through the consumption of good-valuefor-money wines. Wine amateurs are in search of affordable products they can buy close to their living place for an at-home consumption. The growth of sparkling wine keep going Cava is increasing in popularity, and its growth should continue for the next years. Despite their negative results in 217, Chilean sparkling wines are still to be looked after as producers are putting a lot of efforts in their promotion in Japan. Champagne observed a superb year 217 and should keep growing in importance in Japan over the next years. Japanese wines on the menus of restaurants and in the media Japanese premium wines made from locally grown grapes are soaring in popularity in Japan and are being included on the menus of high end restaurants. These wines increased their quality over the past few years and Japanese vineyards are in constant expansion. Bio wines, coolclimate wines and products with an ecofriendly approach Consumers are very attentive to food safety, thus, having a preference for wine that are bio / natural or simply stating that they are eco-friendly. Wine professionals are concerned about the effects of global warming on worldwide wine production. This sparked interest for cool-climate wines

43 MARKET TRENDS Briefer toute Wine consumption l équipe sur forecasted to l édito? increase in 218 The consumption of wine increased 5% since 26, mainly stimulated by women between 4 to 5 years old. In 217, imported wines volumes saw good results with an increase of 3,6%. Moreover, and according to the Japanese Wineries Association, the Japanese wine market might observe a growth of 2% in 218. The sales of imported wines should progressed 2%. Wine is increasingly becoming a fixture in Japanese households. Japanese consumers drink wine at-home According to a study conducted by Asahi Holdings, more than 7% of Japanese alcohol consumers drink at home at least twice a week. More than 6% of them declare spending less than 5 yen per month for their at-home alcohol consumption. The frequency of at-home drinking significantly increased during the past years in Japan. Wealthy households spend in average yens for at-home alcohol consumption against yens for more modest households. Japanese wineries Briefer toute to expand and l équipe sur l édito? increase vineyard acreage In the face of exigent consumers with a new interest for Japanese wines, Japanese wineries are expanding. The main producers are increasing their vineyard surface and investing more than ever in the indigenous Koshu variety (Mercian will double it cultivated surface by 227, Asahi Beer and Suntory Wine will increase it fivefold it, all will invest in bigger production capacities). Consumers are focused on low alcohol drinks Lighter users (consumers that drink alcohol unevenly, but with a weak frequency) have set their eyes on highballs (whisky + soda in a can), Ready To Drink products and craft beer. Sharing a few of its properties with craft beer, wine is adequately positioned as a lower-than-spirits alcohol drink to catch the attention of these consumers. 433

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