SPIRITS MARKET TRENDS 2014 AND Q1 15 IN AUSTRIA AN IMPACT OF THE INCREASED TAXATION ON THE INDUSTRY

Transcription

1 SPIRITS MARKET TRENDS 2014 AND Q1 15 IN AUSTRIA AN IMPACT OF THE INCREASED TAXATION ON THE INDUSTRY

2 2014: Reintroduction of Tax on Sparkling Wine & Increase of Alcohol Tax Tax on Sparkling Wine: introduced by March 2014: 1 per L. Alocohol Tax: With March 2014 increased by 20%. Tax was 10 per L of absolute alcohol, since March 12 per L absolute alcohol. The tax depends on the Vol% of alcohol within a spirit. AUSTRIAN TAX INCREASE HAPPENED IN 2014 Why does it hurt? Example of Calculation: Spirit Price: 5,- 40Vol%, 0,7L Alcohol Tax: 3,36 (=0,7*0,4*12) Balance: 1,64 VAT: 1,- Balance: 0,64

3 Copyright 2012 The Nielsen Company. Confidential and proprietary. TAX ON ALCOHOL & SPARKLING WINE CAUSES VOL LOSSES STILL WINE IS GAINING BENEFITS LH excl. H/L Absatz Tsd. Konvertiert in 1L Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl SPIRITUOSEN TOTAL SCHAUM/PERL WEIN TOTAL WEIN TOTAL BIER TOTAL Volume (L.), % Absatzver. Market: k. VJP Total Austrian Food stores excl. Hofer/Lidl Volume Change VS previous year 10,5 SPIRITUOSEN TOTAL SCHAUM/PERL WEIN TOTAL WEIN TOTAL -3,0-3,0-2,5-1,8 22,5 5,2 3,4-0,5 0,6 1,2-20,8-11,2-14,4 4,5-4,4-2,0-2,8-14,2 9,6-15,5-13,9-11,6 2,9 1,2 0,8 4,3-6,2-4,6-12,8-15,0-25,5-10,3-14,9-25,7 6,0 2,2 0,2 BIER TOTAL -1,4-0,6-0,1 9,0 1,8 6,3 9,5-1,8-20,8 27,8 2,8-22,2 0,4-1,1-4,7 10,6-8,1 3,4 W 49-52/13 W 01-04/14 W 05-08/14 W 09-12/14 W 13-16/14 W 17-20/14 W 21-24/14 Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl W 25-28/14 W 29-32/14 W 33-36/14 W 37-40/14 W 41-44/14 W 45-48/14 W 49-52/14 3

4 TAX IMPACT ON THE HIGH SEASON: Christmas 2014 was low high season for the majority of spirits categories because of a negative tax impact on the prices

5 CONSIDERABLE DECLEINE OBSERVED IN BOTH VOL AND VAL DUE TO AVERAGE PRICE INCREASE What are the category trends? Food excl. H/L - SPIRITUOSEN AUSGEW. - Last 4 week - Period to: 4 W Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl 5

6 MASSIVE LOSSES IN VOL OBSERVED AT ALL CATEGORIES Total Spirits - Drivers Food excl. H/L - Last 4 weeks- Period to: 4 W SPIRITUOSEN AUSGEW. - Volume Sales Tsd SPIRITUOSEN AUSGEW. - Growth -15,0% 6

7 ONLY 3 CATEGORIES DEMONSTRATED POSITIVE VAL DYNAMIC Total Spirits - Drivers Food excl. H/L - Last 4 weeks - Period to: 4 W SPIRITUOSEN AUSGEW. - Value Sales Tsd EUR SPIRITUOSEN AUSGEW. - Growth -5,7% 7

8 Finance Court considers Tax on Sparkling Wine unconstitutional?! Austrian Finance Court considers Tax on Sparkling Wine (reintroduced in March 2014) as unconstitutional & suggests to Constitutional Court (VfGH) to revoke this tax. Further developemnt is expected in Kritik an Sektsteuerfreiheit für Prosecco Das Finanzgericht ortet schwere Verstöße gegen die Grundsätze Erwerbsfreiheit, Eigentum und Gleichheit, für die es keine sachliche Begründung gebe. Dass Prosecco Frizzante nicht von der Steuer erfasst wird, sei nicht sachgerecht. Die 114 betroffenen Sekthersteller seien wegen der Abgabe ein verfassungsrechtlich bedenkliches Sonderopfer. Quelle: orf.at, SPIRITS MARKET OUTLOOK FOR WHAT WAS THE TREND IN Q1 2015?

9 SPIRITS MARKET DYNAMIC IN 1ST QUARTER 2015 What are the category trends? Food excl. H/L - SPIRITUOSEN AUSGEW. - Last 4 week - Period to: 4 W Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl 9

10 IN Q MAJORITY OF SPIRITS CATEGORIES STILL EXPERIENCE.. Total Spirits - Drivers Food excl. H/L - Last 4 weeks- Period to: 4 W SPIRITUOSEN AUSGEW. - Volume Sales Tsd SPIRITUOSEN AUSGEW. - Growth -15,0% 10

11 IN Q PRICE INCREASE HELPS SPIRITS CATEGORIES.. Total Spirits - Drivers Food excl. H/L - Last 4 weeks - Period to: 4 W SPIRITUOSEN AUSGEW. - Value Sales Tsd EUR SPIRITUOSEN AUSGEW. - Growth -5,7% 11

12 PRICE INCREASE in Q VARIES BY CATEGORY Price Development Food excl. H/L - 1. Qu. 15 (CW1-12) - Period to: 4 W

13 GROWTH IN 1ST QUARTER 2015 Waterfall Chart in Tsd. : SPIRITUOSEN AUSGEW. Food excl. H/L - 1. Qu. 15 (CW1-12) - Period to: 4 W

14 THANK YOU!