The Bourgogne region continues to grow, but remains attentive to each market

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1 Press release The Bourgogne region continues to grow, but remains attentive to each market The efforts of the Bourgogne region to confirm its reputation in various markets continue to drive growth. And the most recent harvests, which have been low in volume but high in quality, should serve to boost this good momentum. BIVB/MONNIER H. The 2013/2014 campaign began with very low stocks in wineries, especially in terms of red wines. With loyalty to their customers in mind, Bourgogne wine professionals are managing this unusual situation as best they can. But this could still lead to a re valuation of those Bourgogne wines that have suffered most in terms of low volumes. Exports remain critical with regard to the strategy of the Bourgogne region. The good results in 2012 are confirmed by a new record in terms of sales. In France, modern distribution networks are holding up well, with a record in terms of sales coupled with high value. Traditional markets are showing no major changes but are requiring greater efforts in order to maintain similar results. The Bourgogne region is maintaining its position in the restaurant industry, fleshing out its offer and profiting from sales by the glass. Growth in the individual wine store network is looking promising, and wine tourism and direct sales are appealing to many wine lovers. However, these positive results mask certain disparities that exist in the region. Some businesses are experiencing profitability issues brought about by problems linked to vine cultivation and the stresses of the winemaking business. As such, professionals are joining forces to develop new drivers for growth in order to strengthen the Bourgogne model. BIVB/ IMAGE & ASSOCIES 1/18

2 The regional market: good sales but stocks are low Sales from wineries in 2012/2013 (bulk and bottles) continue to show good results (graph n 1, source: customs/bivb), with the equivalent to million bottles put on the market and a decline of 7% compared to the 2011/2012 campaign. Graph n 1: Sales from wineries and harvests for the last six Bourgogne campaigns This decline remains limited considering the very low yields harvested in 2012 (down 19% compared to the 2011 vintage). Sales from wineries were boosted in part by continued dynamic purchasing from merchants (609,368 hl, the equivalent to almost 812,500 bottles for the 2012 vintage). The progression of these transaction volumes has nonetheless been slowed by the low yields in With demand in France and for export still growing, the low yields in 2012 indicate low stocks in 2013 (down 10 15%). The 2013 vintage, volumes for which are also low, will probably not satisfy the need for available wine given the growing market demand. The Bourgogne region manages a new development cycle Over the last 25 campaigns, from 1987/1988 to 2012/2013, each small harvest was preceded and followed by an average or even a large harvest. Market evolution, modeled on similar alternating small and average/large harvests in the short or medium term has helped stock management. Sometimes at the root of cash flow problems, such as during the first decade of the new millennium, these large stocks have meant the market could take off again rapidly as soon as growth returned, as in BIVB/ IBANEZ A. But these extremes (too much volume for a declining demand or not enough volume for a growing demand) do not represent economically viable situations. Currently, the second case applies in the Bourgogne region. This could lead to price increases for certain wines where reasonable. These price hikes would, in part, help absorb the growing costs of production and marketing, which reflect the quality of Bourgogne wines. 2/18

3 As part of the Bourgognes Amplitude 2015 plan, the BIVB and professionals in the Bourgogne region are mobilizing to prepare for the future and to maintain their various markets. They have set up several working groups for the Bourgogne region s different Régionale appellations: Coteaux Bourguignons, Crémant de Bourgogne, Bourgogne and Mâcon. Their aim is to suggest new drivers for growth to shift upmarket the entire range of Bourgogne wines, while continuing the ongoing quest for quality. These groups will eventually be extended to cover Village and Premier Cru appellations. BIVB/ IBANEZ A. BIVB/ ARMELLEPHOTOGRAPHE.COM BIVB/ UPEC BIVB/ IMAGE & ASSOCIES 3/18

4 France: market share is maintained and a record for supermarket sales The Bourgogne region is maintaining its market share in France, like some other winegrowing regions, both in France and abroad. Bourgogne wines are popular with consumers looking for pleasure and quality (source: Kantar Worldpanel, Feb. 2013). As such, in a tricky economic climate, wine sales in French markets are profiting from this trend to drive growth. In 2012, buyers of AOC wines are fewer (down 2% in terms of volume), but their budget is greater (up 1.3% in terms of value). They are buying fewer good value wines and more superior bottles. The average annual budget per household has grown to 102 in 2012 from 98 in 2010 (source: Kantar Worldpanel). Owing to their average/top of the range positioning, Bourgogne wines are naturally benefiting from this structural evolution: frequency of purchase by households is up 8% (2012/2010), mainly due to supermarket sales. Bourgogne wine: a safe bet for gastronomic restaurants BIVB/ JOLY M. BIVB/ JOLY M. Bourgogne wines are still enjoying a strong position in the French restaurant sector, despite a drop in numbers of people going out to restaurants (down 2% in 2012/2011). The average spend per head per visit has risen by 1.7%, which partially serves to compensate for the decline in restaurant going. But this market will probably not recover in 2013 (source: NPD Crest). In a market in crisis, where wine drinking is slowing, Bourgogne wines are a safe bet. The interest of restaurateurs seem to be growing, with the number of restaurants offering at least one Bourgogne wine up at 62% in 2012, compared to 60% in 2011 and 58% in 2010 (graph n 2). Graph n 2: Average number of Bourgogne wines per restaurant and percentage of restaurants offering at least one Bourgogne wine (out of 3,600 restaurants source: CHD Expert) Average number of Bourgogne wines sold Percentage of restaurants selling at least one Bourgogne wine 4/18

5 In 2012, with eight wines on average, Bourgogne wines appeared on as many restaurant menus as wines from other French winegrowing regions with greater production volumes. (Graph n 2). The number of wines on offer is increasing. In the 479 gastronomic restaurants surveyed in 2012, an average of 15 different Bourgogne wines were on offer, up 7% compared to The most popular Bourgogne appellations (reds: Nuits St Georges, Gevrey Chambertin, Pommard, Mercurey, Bourgogne Hautes Côte de Beaune and Haute Côte de Nuits; whites: Meursault blanc, Pouilly Fuissé and Chablis, including Petit Chablis and Chablis Premier Cru) were offered in over 47% of these restaurants. October 2014: for the first time, the Bourgogne region plays host to the competition to find the Best Sommelier in France The Union de la Sommellerie Française and the Association des Sommeliers de Bourgogne is holding the competition to find the Best Sommelier in France 2014 in Beaune on Monday 27 October Thanks to a partnership with the BIVB, this is the first time the competition will have taken place in the Bourgogne region. Some of the best sommeliers in the world will be in attendance to watch the competition at La Lanterne Magique, in the former cellars of the Maison Calvet. This is a key event in the world of sommellerie, which only takes place every two years. The Bourgogne region: a top-of-the-range positioning for wine stores Between 7 10 million bottles of Bourgogne wines sold each year on this network. Sales of Bourgogne wines (source: Symetris/BIVB 2013): Some 70% of boutiques selling Bourgogne wines are those stores selling small volumes (<2,500 bottles per year) and almost 16% selling between 2,500 5,000 bottles per year. Two other factors also have a positive influence on the sales of Bourgogne wines: the level of knowledge of wine boutique owners and the amount of tasting opportunities offered to customers. Price positioning of Bourgogne wines (source: Symetris/BIVB 2013) BIVB/MONNIER H. Top of the range positioning among French wine stores. 37% of Bourgogne wines are priced at over 21, while this price bracket only represents 4% of other wines. The appellation remains the deciding factor for purchase among 61% of buyers of Bourgogne wines (according to wine store owners), followed by food and wine combinations and lastly, value for money. 5/18

6 Wine tourism and direct sales: at the heart of strategies for growth Almost one million tourists come to the Bourgogne each year, half of whom come for the wine. European clientele are considered stable, or on the decline. This is not the case for customers from farther afield (from Brazil, China and Australia for example), numbers of whom are on the increase according to 67% of professionals. BIVB/ ARMELLEPHOTOGRAPHE.COM BIVB/ ARMELLEPHOTOGRAPHE.COM Across all tourism sectors combined, visitors spend 2.2 billion euros in the Bourgogne region, making it the 14th most popular destination for French tourists and the sixth most popular for foreign tourists (source: Bourgogne Tourisme). The economic stakes are high and there is a lot of international competition. But the Bourgogne region nonetheless has a lot of natural and man made attractions to offer: authenticity, exceptional terroir, conviviality and an unrivalled range of wines. There are multiple initiatives in place to offer an ever more varied visitor experience, including the chance to join in with the harvests, tastings of wine and food, and accommodation offered on wine estates, etc. The opening of the Cité des Vins de Bourgogne, scheduled for 2016, aims to open up the Bourgogne winegrowing area to even more tourists and to connect the region s many tourism attractions into a single network to boost visibility. In a similar spirit, the application for the Climats of the Bourgogne winegrowing region to be included on the UNESCO World Heritage List also aims to encourage visitors to the region to enjoy the high quality cultural attractions on offer. A new record for supermarket sales Over the last campaign (2012/2013), to the end of August 2013, the Bourgogne region has continued to grow in the hypermarket and supermarket sector. It has even set a new record, with 239 million in sales and 37 million bottles sold, despite an unfavorable global economic context. 6/18

7 In terms of sales of still wines, with record sales of million euros (up 5.4%), Bourgogne is the only region (excluding rosé wines), to record both: Significant growth of sales in terms of volumes: over 30.6 million bottles sold (up 3.7% in one year) A limited increase in the average price of its wines (up 1.6%) These strong sales figures are attributable to red wines (up 3.6%) and to white wines (up 7%). All Bourgogne appellations are concerned. The exceptional growth enjoyed by Crémant de Bourgogne has been slowed by a lack of availability. Sales have now reached 5.9 million bottles, worth 34.7 million (2012/2013 campaign). Crémant de Bourgogne has become the most profitable sparkling AOC, for equivalent volumes, outside of Champagne. It is the preferred choice for consumers wishing to treat themselves while ensuring good value for money. Sales of Bourgogne wines via modern distribution networks (including minimarkets, neighborhood stores, hard discount and grocery collection stores) represent 48.2 million bottles or 46% of the French market. Bourgogne wines offer the best profitability for French AOC supermarket sales (graph n 3): this is the major contributor in value terms for growth, and is unusual due to the fact that few wines are sold on promotion. BIVB/MONNIER H. 7/18

8 Graph n 3: Sales of still wines in the French hypermarket and supermarket sector Totals from August 2012 to August 2013 Bourgogne wines are perfectly attuned to the demands of this sector, despite their limited presence in what are currently the most popular sectors (rosé wines and Bag In Box ). With a wide and diversified product range retailing at between 4.2 and 18 per bottle, the Bourgogne region is winning over increasing numbers of consumers who are buying more wines for pleasure, while still preserving an optimal value for money ratio. 8/18

9 Exports: good sales over the eight first months of 2013, after strong growth in 2012 Bourgogne wines are maintaining their strong international presence. After having been hit by the economic downturn in 2008, they have re conquered their traditional export markets and increased their presence in new consumer markets. Over the first eight months of 2013 (graph n 4), exports of Bourgogne wines have shown a slight increase, up 1.4% ( 460 million). BIVB/PRZEWLOCKI N. Graph n 4: Export sales for the first eight months of each year This trend confirms the results of the campaign from August 2012 to July It closed up 2.5% ( 741 million in sales), a record for Bourgogne wines (source: customs/bivb M&D). Bourgogne wines have also retained their value in export markets during the 2012/2013 campaign. Although the increase in volumes of white wines was more limited (up 9% or 66.7 million bottles), sales are showing 10% growth (source: customs). Nonetheless, the lack of availability of red wines is bringing down the overall value of Bourgogne wines. One must consider those volumes not integrated into official statistics since French customs introduced simplified declaration processes. If one includes these additional volumes, estimated through the examination of different information sources, it is reasonable to consider that the number of Bourgogne wines exported is closer to million bottles. 9/18

10 Graph n 5: Exports of Bourgogne wines by campaign (source: customs/bivb) Thanks to a long export tradition and the dynamism of the local winegrowing industry, the Bourgogne region is unique in that it has been able to compensate for the decline of exports to certain countries by opening up new markets or re conquering mature ones. The diversity of the region s markets across different continents is key to progress. 178 countries import Bourgogne wines out of 197 recognized by the UN (compared to 147 in 2002 and 166 in 2007). Over the first eight months of 2013, the three main traditional markets for Bourgogne wines (the USA, the UK and Japan) represented 51% of export sales ( 236 million) and 48% of volumes (28 million bottles). The USA and Japan have recovered and even improved on their pre 2008 recession sales figures. The UK, an historic market for Bourgogne wines, has seen sales fall 24% since 2008, leaving the number one spot to the USA. It may even be about to cede second place to Japan, with the difference in sales less than 2% between the two. China and Hong Kong now account for a considerable share of exports of Bourgogne wines (6% of sales for the first eight months of 2013, compared to 1% over the same period in 2007). BIVB/DR. 10/18

11 Graph n 6: Change by country of Bourgogne wine imports by both volume and value (Total January to August 2013 Source: customs/bivb) How to read this graph: The size of the bubble is proportional to sales of Bourgogne wines per country. Over the first eight months of 2013, the main markets for Bourgogne wines (accounting for 78% of sales) can be segmented into three groups (graph n 6): Markets demonstrating strong growth: the USA, Belgium, Sweden and China Stable markets: Canada, Hong Kong, Germany and the Netherlands Markets in decline: UK, Japan Four markets demonstrating strong growth Table n 1 Bourgogne exports over the 8 first months 2013 (Jan Aug), source 8 months 2013 Var 8 months 2013 / 2012 volume x 1,000 bottles value x 1,000 vol x 1,000 bottles value x 1,000 USA % 11% Belgium % 22% Sweden % 23% China % 7% 11/18

12 The USA the leading market for Bourgogne wines in terms of value (up 11% in value over the first eight months of 2013 compared to the same period in 2012, table n 1) The USA continues to lead exports of Bourgognes wines in terms of value, far ahead of the UK. The USA continues to demonstrate economic growth (almost 2.5% in the second trimester of 2013), driven by exports, which grew strongly by 8.6% between April and June, their biggest increase in over three years. The upturn in exports of Bourgogne wines, for Régionale, Village and Crémant de Bourgogne AOCs in particular, can be in part explained by several underlying trends. The USA is the biggest consumer of wine in the world, consuming around 330 million cases (3.96 billion bottles) each year. Growth of 12% is forecast between 2012 and 2016 (source: Wine Intelligence). John Gillespie, an expert in this market, attributes this growth to two generations of consumers: Baby boomers, who consume more wine now than they have done over the last ten years. Millennials, aged under 30, who are more attracted by the culture of wine than their elders, in particular in terms of imported wines. BIVB/ IMAGE & ASSOCIES Another trend that could explain this growth is the drinking of wine outside of mealtimes. This kind of wine drinking is becoming more popular: at the pub, at home, or in baseball stadiums during matches (source: Wine Intelligence). Belgium the fifth biggest market for Bourgogne wines in terms of value (up 22% in value over the first eight months of 2013 compared to the same period in 2012, table n 1) Belgium has returned to fifth place among export markets for Bourgogne wines in terms of value, ahead of Hong Kong and Switzerland. The consumption of wine in Belgium remains more or less stable, with very slight growth during the first semester of 2013 compared to the same period for the previous year (source: GFK modern circuits). Within this framework, Belgian consumers are buying more and more Bourgogne wines. This phenomenon is even more evident in the north of the country (up 14% in terms of volume and up 13.8% in terms of value over the first semester in 2013, compared to the same period for 2012). White Bourgogne wines have grown from a market share of 4.7% in June 2012 to 7.4% in June /18

13 Sweden the ninth biggest market for Bourgogne wines in terms of value (up 23% in value over the first eight months of 2013 compared to the same period in 2012, table n 1) Sweden is now the ninth biggest market for Bourgogne wines in terms of value, ahead of the Netherlands. This is a healthy and sustainable market for Bourgogne wines. Since 2008, economic downturns have had little influence on the economy of the country: its public debt was 38.2% of GDP at the end of 2012 (France: 90.2%). This market is under the control of the Systembolaget monopoly for retail sales. Private imports are possible for the restaurant trade. The cafes/hotels/restaurants sector offers some good opportunities for Bourgogne wines. Over the past 20 years, Swedish gastronomy has undergone a radical shift towards a lighter cuisine that is better suited to Bourgogne wines (according to Michelin starred Swedish chef Danyel Couet). Haken Larsson, journalist for Allt Om Vin, confirms this trend and predicts a bright future for Bourgogne wines. China the twelfth biggest market for Bourgogne wines in terms of value (up 7% in value over the first eight months of 2013 compared to the same period in 2012, table n 1) China has become the twelfth biggest export market for Bourgogne wines in terms of value, ahead of Australia. After several years of strong growth, exports of Bourgogne wines to China, like those of other European and French wines, may be suffering from two factors: China has seen several successive disappointing growth indicators over the course of the first semester 2013, which have led to a downward revision of official growth forecasts. The Minister of Finance, Lou Jiwei, initially mentioned a 7% growth rate, and then created a surprise by stating that 6.5% seemed more probable. The IMF also drew attention to imbalances in the Chinese economy. The nascent protectionism in continental China is also a problem. The Chinese alcoholic drinks industry has asked the government to investigate European wine imports, considering that European subventions are harming local production. This situation could lead to an increase in import taxes in China, which are already at 48%, including 14% customs tax. 13/18

14 Four stable markets Table n 2 Bourgogne exports over the 8 first 8 months 2013 Var 8 months 2013 / 2012 volume x 1,000 bottles value x 1,000 vol x 1,000 bottles value x 1,000 months 2013 (Jan Aug), source Canada % 1% Hong Kong % 6% Germany % 1% Netherlands % 4% Canada the fourth biggest market for Bourgogne wines in terms of value (up 1% in value over the first eight months of 2013 compared to the same period in 2012, table n 2) Canada is holding on to its fourth position in terms of imports of Bourgogne wines, ahead of Belgium. The growth in imports of Bourgogne wines varies from province to province (source: Canadian monopolies). At the end of March 2013, the growth mainly occurred in Quebec (up 11%), which accounted for most of the sales of Bourgogne wines with 4.15 million bottles, or 70% of the volume exported to Canada. Sales have continued to fall in Ontario (down 6% or 800,000 bottles, mainly Régionale AOCs), but have taken off again in British Columbia (up 17%), with 200,000 bottles offering better profitability. Over the course of the year ending 31 March 2012 (source: statistics from the Canadian Government), total wine sales equated to CAN$6.5 billion ( 4.52 billion), up 5.9% over figures from the previous year. In volume terms, wine sales have increased by 3.8% compared to 2011 to reach the equivalent of million bottles in The growth in sales of imported wines (up 4.5%) has surpassed that of sales of Canadian wines (up 2.8%). However, this trend is mainly accounted for by wines from the USA (up 5.7%), Chili (up 6.8%) and South Africa (up 33.8%) (Source: GTI importation, CAM August 2013). Hong Kong the sixth biggest market for Bourgogne wines in terms of value (down 6% in value over the first eight months of 2013 compared to the same period in 2012, table n 2) Hong Kong is now the sixth biggest export market for Bourgogne wines in terms of value, ahead of Switzerland. Volumes of Bourgogne wine exports to this country have grown 15% over the period. The fall in sales is, for the main part, due to red Régionale appellations (down 54% in terms of value and down 23% in terms of volume). White Bourgogne wines have, however, grown 23% in terms of sales. This slump in red Régionale appellations is compensated for by the growth in terms of volumes exported directly to China (up 53% over the period), which no longer pass through the Hong Kong redistribution platform. BIVB/ SOPEXA 14/18

15 Hong Kong still offers some good potential for Bourgogne wines. But the consumption of wine and its purchase price are increasing in Hong Kong, mainly among the middle classes. Of 508 consumers questioned, 51% said they drink wine several times a week and 21% every day. Some 68% of consumers buy their wine in specialist wine stores and fewer than 20% in supermarkets (source: Hong Kong International Wine & Spirit Competition). BIVB/ SOPEXA Germany the eighth biggest market for Bourgogne wines in terms of value (down 1% in value over the first eight months of 2013 compared to the same period in 2012, table n 2) Germany maintains its position as the eighth biggest export market for Bourgogne wines, ahead of Sweden. The fall in sales of Bourgogne wines is, for the most part, due to a slowdown in German imports of red AOC Village and Premiers Crus from the Côte de Beaune (down 26% in terms of volume and down 21% in terms of value) and from the Côte de Nuits (down 36% in terms of volume and down 22% in terms of value), as well as red Grands Crus from the Côtes de Beaune and Côtes de Nuits (down 23% in terms of volume and down 44% in terms of value). This shift can be linked to the lack of availability of red Bourgogne wines. But the situation is not surprising as it corresponds to a generalized shift in the German market for still wines. Germany still remains a growth market for Bourgogne wines, especially for white wines. They grew by 15% in terms of volume and 13% in terms of value over the first eight months of 2013 compared to figures for the previous year. This equates to an increase of 154,000 liters in one year, compared to a drop of 2,555,000 liters overall for French AOCs. The Netherlands the tenth biggest market for Bourgogne wines in terms of value (up 4% in value over the first eight months of 2013 compared to the same period in 2012, table n 2) The Netherlands has slipped down to tenth position in terms of imports of Bourgogne wines by value, ahead of Denmark. The 2% drop in volumes (table n 2) is, for the most part, due to a slowdown in exports to the Netherlands of the Chablis and Petit Chablis appellations (down 1.7%), white Régionale Bourgogne appellations (down 2.2%) and white Régionale Mâcon wines (down 10.5%). These local losses need to be put into perspective. Export volumes for these appellations for all countries combined are tending towards growth: up 3% in terms of volumes and up 9.6% in terms of sales over the first eight months of 2013 compared to figures for the previous year. 15/18

16 Two markets in decline Table n 3 Bourgogne exports over the 8 first months 2013 (Jan Aug), source 8 months 2013 Var 8 months 2013 / 2012 volume x 1,000 bottles value x 1,000 vol x 1,000 bottles value x 1,000 United Kingdom % 5% Japan % 12% The United Kingdom the second biggest market for Bourgogne wines in terms of value (down 5% in value over the first eight months of 2013 compared to the same period in 2012, table n 3) The United Kingdom has dropped to second place in terms of export markets for Bourgogne wines in terms of value, closely followed by Japan. This market remains the leading export destination for Bourgogne wines in terms of volumes, but numbers are falling. This trend is also affecting the majority of French winegrowing regions across modern distribution networks. Only Spanish and South Africa wines were showing growth as of end June (source: IRi, CAM June 2013). The UK market is showing signs of recovery in terms of off trade or take away sales, which account for 83% of wine volume transactions. This trend is being boosted by ambitious strategies on behalf of certain distribution groups such as Accolade Wines and Waitrose. In contrast to this constantly updated, low cost segment, middle and top of the range wines, such as those from the Bourgogne region, are again showing average sale prices on the rise, mainly due to from increases in taxes. This may accelerate changes in consumption patterns and bring about a move to enjoying higher quality wines. The return of French winegrowing regions with prestigious appellations confirms this shift. As such, the Bourgogne region is selling Village appellations (up 1% in terms of volumes and up 4.2% in terms of sales over the first eight months of 2013 compared to figures for the previous year), for which average prices (from the winery) are on the rise. Japan the third biggest market for Bourgogne wines in terms of value (down 12% in value over the first eight months of 2013 compared to the same period in 2012, table n 3) Japan holds onto its position as the third biggest export market for Bourgogne wines in terms of value, ahead of Canada. After having enjoyed double digit percentage hikes in terms of volume and value in 2011 and 2012, exports of Bourgogne wines over the first eight months of 2013 have been affected (down 32% in terms of volume) by changes in yen/euro exchange rates. This has led to an artificial rise in prices. Indeed, to make Japanese companies competitive again, the government has increased its money supply. As a result, the value of the yen has dropped by 25% with relation to other major currencies. 16/18

17 This change in the exchange rate has already happened. The effect of this on exports was compounded for two reasons: 2011 and 2012 were exceptional years. The growth rates of imports of Bourgogne wines had never been so high over the previous decade. This, combined with other difficulties such as the economic downturn and natural catastrophes, has had a bearing on Japan s ability to bounce back in BIVB/ SOPEXA One must go back to 1999 to find a time when exports to Japan have dropped more significantly. Back then, it wasn t linked to the exchange rate but to the phenomenon of the French Paradox (1998), which led to the overstocking of French wines. Exports of Bourgogne wines, totals for the first eight months of 2013 (January - August), source customs/bivb first eight months of 2012 first eight months of 2013 variation over first eight months 2013 / 2012 volume x 1,000 bottles value x 1,000 volume x 1,000 bottles value x 1,000 volume x 1,000 bottles value x 1,000 Grand total ,3% 1,4% USA ,9% 10,7% UK ,3% 5,4% JAPAN ,3% 11,7% CANADA ,0% 0,8% BELGIUM ,7% 22,1% HONG KONG ,8% 6,4% SWITZERLAND ,6% 19,3% GERMANY ,7% 0,7% SWEDEN ,3% 22,7% NETHERLANDS ,6% 4,1% DENMARK ,7% 1,2% CHINA ,9% 7,3% AUSTRALIA ,0% 10,1% TAIWAN ,3% 9,6% SINGAPORE ,6% 7,8% NORWAY ,4% 106,3% UNITED ARAB EMIRATES ,0% 14,7% IRELAND ,7% 12,1% ITALY ,4% 4,9% ESTONIA ,7% 74,2% SOUTH KOREA ,5% 9,1% BRAZIL ,6% 13,2% RUSSIA ,6% 18,5% LUXEMBURG ,7% 5,7% MACAU ,2% 66,7% AUSTRIA ,3% 12,2% FINLAND ,5% 13,1% LITHUANIA ,4% 0,6% SPAIN ,2% 0,2% MEXICO ,8% 11,2% THAILAND ,8% 25,2% INDIA ,1% 139,2% CZECH REPUBLIC ,3% 6,8% POLAND ,0% 33,9% NEW ZEALAND ,4% 30,5% UKRAINE ,1% 33,8% Economic report created by the Markets and Development department of the BIVB November /18

18 Key figures about the Bourgogne winegrowing region (sources: customs/iri/bivb/draf) Average production November million hectoliters incl. 62% white wines 30% red wines (and rosés) 8% Crémant de Bourgogne and or 1% Appellations Grands Crus 48.3% Appellations Village and Premiers Crus 50.6% Appellations Régionale 6.5% of French VQPRD production 3% of French wine production 0.4% of global wine production 28,715 hectares* under vines (3% of French vines) 2 main varietals: Chardonnay (48% of vines): used to produce almost all the white wines Pinot Noir (34% of vines): used to produce almost all the red wines Other varietals producing significant quantities: Aligoté (white, 6%), Gamay (red, for Coteaux Bourguignons, Bourgogne Passe Tout Grain and Mâcon, 10%), Sauvignon (for Saint Bris, 1%) As of September different appellations Inc. 33 Grands Crus (22% of French AOCs) 44 Villages and Premier Crus 23 Appellations Régionales Businesses 3,949 winegrowing estates (including bottling and selling over 10,000 bottles) 300 bulk wine merchants 19 cooperative wineries The market 193 million bottles sold 48% are exported An estimated 1.46 billion euros in sales The Bourgogne region represents: (averages ) 3% of wine sales worldwide, in terms of value 18% of exports of still French VQPRD wines (for 6.5% of production) Regional stats 2% of farmland in the Bourgogne region 3.5% of GDP in the Bourgogne region 45,200 jobs generated (direct and indirect) or 7% of total employment in the Bourgogne region Sources: BIVB/customs/IRI/CHD/Symetris *Sources /18