WINE MARKETING Greek wines in the German market. Prof. Dr. Gergely Szolnoki Geisenheim University Professorship for Market Research
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1 WINE MARKETING Greek wines in the German market Prof. Dr. Gergely Szolnoki Geisenheim University Professorship for Market Research Thessaloniki June 15, 2018
2 THE GERMAN WINE MARKET
3 Situation analysis 2016/17 at a glance Vineyard area 102,000 ha Wine production 9,000,000 hl Wine market 20,000,000 hl Per capita consumption Ger. wine Imp. wine Spark. wine 9.1 l 11.8 l 3.5 l 24.4 l Export 1,000,000 hl Import 15,00,000 hl Reexport 2,800,000 hl Source: DWI
4 Summary of the German wine market Germany is/has Nr. 1 by import million hl Nr. 1 by sparkling wine consumption 3.5 per capita (l) Nr. 4 by total wine consumption 20.1 million hl Wine tax 0, only VAT No limitation in wine trade: liberal Source: Deutscher Weinbauverband 2018, Weinmarktbilanz
5 Import total in volume and value Volume (million hl) Still wine and sparkling wine import Value Value (million ) ,179 Volume Wine import to Germany / volume Wine import to Germany / value Source: Stat. Bundesamt
6 Volume hl Value /hl Import volume from Greece Volume (hl) Value ( /hl) decreasing volume -> increasing value Source: Stat. Bundesamt
7 Wine imports by country of origin 2015/2016 Source: DWI 2018, Deutscher Wein Statistik 7
8 /75 79/80 84/85 89/90 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Consumption in volume by colour (still wine) million hl ,2 Wine total ,8 Red wine ,3 4,3 White wine German white wine 2 3,1 German red wine 0 Source: Deutscher Weinbauverband 2018, Weinmarktbilanz
9 Beverage consumption in Germany Source: DWI 2018, Deutsch Wein Statistik 9
10 Structure of retailers in Germany - 15,000 discounts - 11,000 supermarkets - 4,000 wine shops; 70 % individuals - 50,000 restaurants offer wine, 90 % individuals - 8,000 wine estates (direct marketing) wine cooperatives (direct marketing) - Large number of online shops Source: HGU,
11 Average margins in the wine sales channels - Discounts % - Supermarkets % - Wine shops % - Restaurants % - Wholesale %
12 price level Structure of retailers in Germany Wine stores Online stores Supermarkets Discounter wide of product range 12
13 CONSUMER BEHAVIOUR
14 Representative survey 2006, 2008, 2010, 2012, 2014, 2016, 2018 Representative sample participants (69 million persons in Germany) Behavioural and lifestyle analyses of wine drinkers in Germany incl. sales channels
15 Consumption frequency Weighted by volume Wine consume frequency Frequency Percentage Representative for Wine consumption in year (l) Wine consumption of the group Percentage of consumption many times a week 120 6% % once a week 173 8% % 2-3 times a month % % once a month % % less than once a month % , % never % % Sum % % 14% of the wine drinkers consume 62% of the total volume
16 Introduction GERMAN WINE MARKET 20.1 million hl 9.0 billion
17 Structure of the German wine market Total wine market Still wine and sparkling wine Sparkling wine Still wine market offpremise and on-premise On-premise Still wine market retailers Still wine Off-premise ,1 33, ,3 Sales channels /l hl % % Online % 4% 32,5 Cellar door % 19% million hl billion EUR ,3 million hl billion EUR million hl billion EUR million hl billion EUR Wine shop % 26% Supermarket % 29% Discounter % 21% Source: Weinmarktbilanz 2018, DWI 2018, Schätzung der HGU
18 Segmentation based on usage of sales channels Consumption(l/year) 60 Average age over 65 years, average education and income level, in the region middle west 9% Cellar-door-customers 19% Multichannel-customers Rather middle age, high education and high income Average price ( /l) Younger, lower education level, a clearly higher proportion in the lower income category. 6% Wine-shop-customers Higher income, bigger cities Food-retail-customers 21% Discount-customers Younger, lower education level, a clearly higher proportion in the lower income category. 27% 18% Supermarket-customers Average of the population 20
19 Publication of the results 2015/ /2019 Wine Consumer Report Germany 2018/2019
20 GREEK WINES IN THE GERMAN WINE MARKET
21 Greek wine German market
22 Greek wine German market 41 producers Online survey in Greece 2 wholesalers Qualitative interview Wiesbaden, Frankfurt 7 retailers Qualitative interviews Wiesbaden, Berlin, Mönchengladbach 212 consumers Online survey Germany
23 Summary of the study Consumers - Mainly in restaurants - Limited accessibility - Little to very little knowledge on Greek wines - Theoretical interest high - Mediocre image Retailers - Bad image - Promotion missing - Low expertise - Tendency to list Greek wines Wholesale - Selling mainly to restaurants - Bad image - No promotion from producers Producers - Bad image - Promotion below-average - Joint appearance
24 Sources Deutscher Weinbauverband e.v. (2018), Geschäftsbericht Deutsches Weininstitut (DWI) (2018), Deutscher Wein Statistik 2017/2018. Kalpaxidis, K. (2015), Analysis of the image and possibilities of the Greek wine in the German market. Master thesis, Vinifera program, Geisenheim University. Statistisches Bundesamt (2018), Statistik 2017/2018. Szolnoki, G. und Hoffmann, D. (2014), Neue Weinkundensegmentierung in Deutschland. GFHG-Verlag, Geisenheim. Weinmarktbilanz 2018 (2018), Deutscher Weinbauverband e.v. 24
25 Contact Prof. Dr. Gergely Szolnoki Department of Wine and Beverage Business Research Professorship for Market Research Geisenheim University Tel. +49 / Gergely.Szolnoki@hs-gm.de 25
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