INSTITUTE OF HOSPITALITY MANAGEMENT IN PRAGUE. Viktoriya Nasypova

Transcription

1 INSTITUTE OF HOSPITALITY MANAGEMENT IN PRAGUE Viktoriya Nasypova Wine consumption trends (in the Czech Republic) Bachelor dissertation 2014

2 Bachelor dissertation Wine consumption trends (in CR) Bachelor dissertation Viktoriya Nasypova Institute of the Hospitality Management in Prague 8, Ltd Department of Hospitality Management Major field of study: Hospitality Management Thesis Advisor: Ing. Jan Han, Ph.D. Date of Submission: Date of Thesis Defense: June Prague 2014

3 Oath I swear that the bachelor dissertation titled Wine consumption trends was written by me independently, and that all literature and additional material used are cited in the bibliography and that this version is exactly the same as the work submitted electronically. In accordance with 47b law no. 111/1998 coll. on higher education institutions, I agree to my dissertation being published in its complete form in the publicly accessible electronic database of the Institute of Hospitality Management in Prague. Signature Viktoriya Nasypova In Prague

4 Acknowledgements Therefore I would like to thank my supervisor Ing. Jan Han, Ph.D. for his time, instructions and advice that were very helpful and essential during writing of this thesis.

5 Abstract NASYPOVA, Viktoriya. Wine consumption trends (in CR). [Bachelor dissertation]. The Institute of the Hospitality Management. Prague pages. The bachelor s thesis is dedicated to wine consumption trends in the Czech Republic in recent years. The analysis is made based on statistical data, polls held among wine consumers in the Czech Republic, sommeliers working in restaurants, and wine producers. The research involves an interview with a wine expert from the Czech Republic, and statistical analysis of Czech consumption trends. The most preferable and popular wine types, sorts and wine origins have been compared. Key words: wine consumption, sommelier, Czech wineries, wine producers, questionnaire, consumers, viticulture, trends in consumption.

6 Contents INTRODUCTION THEORETICAL PART MAIN WINE TYPES AND SORTS IN THE CZECH REPUBLIC BASIC INFORMATION ABOUT VITICULTURE ANALYTICAL PART WINE TERRITORIES IN THE CZECH REPUBLIC Wine regions of Moravia district Wine region of Czechy (Bohemia) STATISTICAL ANALYSIS OF WINE CONSUMPTION IN THE CZECH REPUBLIC QUESTIONNAIRES QUESTIONNAIRE FOR WINE PRODUCERS QUESTIONNAIRE FOR WINE CONSUMERS QUESTIONNAIRY FOR WINE EXPERTS SOMMELIERS IN RESTAURANTS INTERVIEW WITH WINE EXPERT CONCLUSION LIST OF REFERENCES, BIBLIOGRAPHY APPENDICES... 57

7 List of figures Figure 1: Wine consumption in the Czech Republic ( , l/person/year) Figure 2: Wine consumption in the Czech Republic ( , l/person/year) Figure 3: Share of wine ( , l) Figure 4: Types of white wine produced in the Czech Republic Figure 5: Types of red wine produced in the Czech Republic Figure 6: The main distribution channels in the Czech Republic Figure 7: Main competitors Figure 8: Impact of foreign wine trends on the wine business in the Czech Republic Figure 9: Most important changes in production and consumption of wine in the Czech Republic Figure 10: Frequency of wine consumption Figure 11: Place of wine purchase Figure 12: Do you consider wine to be healthy, if one drinks it in limited portions (for example, 2 dl a day)? Figure 13: Preference of wine to other alcoholic beverages Figure 14: Amount of wine consumption during one event Figure 15: Significant criteria of wine purchases Figure 16: Preferred types of wine Figure 17: Preferred sorts of wine Figure 18: Preferred country of origin Figure 19: Preferred sorts of Czech wine Figure 20: Cost of wine in retail shops Figure 21: Cost of wine in restaurants Figure 22: Place of wine drinking... 44

8 Figure 23: Personal opinion about wine consumption trends in CR in the last 5 years Figure 24: Czech customers are choosy or picky while ordering a glass or bottle of wine Figure 25: Wine preferences of Czech customers Figure 26: Main preferences of wine of restaurant visitors and consumers Figure 27: Most demanded and preferable wine species among Czech consumers Figure 28: Three wine sorts, which are most preferred and demanded among Czech consumers... 51

9 Introduction Sunny grape berry has for centuries been a source for alcohol and non-alcohol drinks and distillates for various nations and different cultures, religions. There are lots of legends and myths about wine and wineries; it has been used to quench one s thirst and rise amusement spirit. Doctors recommend wine as a cure and prophylaxis against various diseases (today, there is a scientifically proven link between wine consumption and reduced risk of cardiovascular diseases, but of course, subject to reasonable measures of treatment). The sphere of winemaking is in constant development, and consumer tastes are quite volatile - and today, we prefer slightly different wines than a few decades ago. For example, modern consumers enjoy light sorts of wine, table wine, young wine. Wine markets changes primarily concern according to the progress and achievements of the new technologies of viticulture and winemaking. Of course, national wine markets do not remain aloof from other global trends. Market globalization and competition have forced manufacturers to study wine consumption trends, choose varieties that provide the most elegant and rich flavours at the same time in a particular climate, soil conditions. They keep a thoughtful approach to the process of winemaking. Environment protection and appearance of organic products have caused development of eco-friendly and organic wines. In the struggle for purity, environmentally responsible wineries around the globe refuse to use chemical fertilizers. France, Spain, Italy, the US, and other countries are widely using a new philosophy of viticulture, taking into account the phase of the moon and the position of the stars. World society has recognized the importance of quality, and is aiming to improve the quality of wine production in the vast majority of wine-producing countries. Definitely, end consumers define all trends. The wine market moves to diversity, because it is the main factor determining the scope of consumer preferences in the varieties and styles of wine. In this area, it is difficult to talk about any common standards or regulations. Nevertheless, it is possible to identify some general trends, and this is the main idea and research question of this bachelor s thesis. I will focus on the basic consumer preferences and trends in wine consumption in 9

10 the last years, and the influence of globalisation processes on wineries and viticulture. The main focus is made on the viniculture of the Czech Republic, starting by its history, and analyzing modern trends. The main objective of this thesis is to describe, analyze and describe the main consumer trends in the wine business in the Czech Republic. There are some hypotheses to approve or disapprove in this thesis. The first hypothesis is: Modern wine consumer has become more democratic it is evident not only in relation to other aspects of price, taste and bouquet of wine, but also to seemingly minor details such as packaging. The second hypothesis is: One of the main trends in modern wine consumption is reduction of alcohol in wine; low-alcohol wines are starting to appear on the shelves of supermarkets. The third hypothesis is: A growing number of customers around the globe do not want to overpay for wine tradition: so, countries that offer good wines at reasonable prices remain the winners. As the thesis focuses on the Czech wine traditions, I will describe Czech trends, and differences between Czech and foreign wine consumers. Research methods include comparative analysis, which is based on a questionnaire prepared by me. Respondents will be asked to answer questions on their preferences, and their attitude toward Czech and foreign wine products and types of wine drinks. Those are three groups of respondents: wine experts (sommeliers), consumers end clients, and proficient wine manufacturers in the Czech Republic. Another research method is description of Czech wine statistics statistical analysis of wine consumption in the Czech Republic. It will show general trends in consumption. 10

11 1 Theoretical part There is one beautiful and instructive Moravian legend that describes why wine is called exactly wine. In the real old days, when people worshipped pagan deities, there was a cruel ruler Hotesh. 1 If he didn`t like someone or somebody who dared oppose him, he tortured this person and admired how his sacrifice caused him pain. The life of man had no value in that dreadful time. However, it turned out that people revolted against him. They bribed the tyrant`s guard, and gripped him. Then, they made him feel the same pain as his sacrifices did. Before he died, Hotesh reached out his hand to the Gods, and turned into a stone statue. The years were passing by. People forgot about the tyrant. Once, a merchant stayed at the court of Hotesh`s castle. Finding the statue with a hand raised to the sky, he was surprised, and put a piece of gold into the hand. The merchant was so wealthy, that it was quite normal for him to throw golden bars. A year later, when the merchant returned home by the same way, he remembered about the statue and about the gold, and drove into the castle`s court once again. Instead of the gold bar, small golden yields shined in the hand of the statue, and the whole bunches of these yields hanged over the hand. The merchant had never seen anything like that in his life. The yields were quite juicy and sweet. People started speaking about Hotesh. The head man said: "The gold in Hotesh`s hand pleased the Gods, and atoned the quilt. Let`s call these amazing yields wine ". A few years later, the locals completely realized how the grapes changed into that marvellous drink that they also called the wine. And now, according to the legend, when you drink Moravian wine, you should turn the glass to the light. And then, you will see not only the sun, but also a clear golden bar, that pleased Hotesh`s guilt 2 to the Gods. 3 Historically, viniculture in Bohemia was for the first time mentioned in the 11 th century. Active development of viniculture began during the reign of Charles IV. 1 Czech original name: Chotěš 2 In Czech and many Slovan languages the word víno (wine) is cognate to zavínění, vínik, obvinit (guilt, culpability, accuse) 3 Katrantravel.cz. Moravian vine. (in Russian). [online]. [cit ]. Available on the Interent: < 11

12 He gave orders to equip with necessary facilities all proper hills with vineyards. Vineyard cultivation was encouraged materially, and the owners were exempted from tax obligations for 12 years. Any kind of damage to vineyards was strictly punished. In 1358, Charles IV permitted to imprint royal stamp on wines as a sign of his approval, as he had gotten education in France, and this country had been famous for its wine for many centuries. New sorts of grapes were imported from France in order to expand the range of wines in the time of Charles IV. Owing to the appropriate legislation and the monarchy`s protection of viniculture, production of wines in the Czech Republic was good enough for exports to other countries, and there was particularly no need to import wines for domestic consumption. The situation changed in the time of the Austro-Hungarian monarchy. The laws that promoted development of winemaking were cancelled, and cheap wines from South Europe practically pulled the Bohemian wines off the market. Vines have been cultivated on the territory of the Czech Republic for more than 1700 years, though the local winemaking regions refer to the most arctic in Europe. Nowadays, the share of viniculture and winemaking in the final products of plant cultivation is about 6% in the Czech Republic, although this branch plays an important role in some areas. For instance, over 90% of the entire areas are used for viniculture in South provinces of Moravia, and more than a third of territories are taken up for it. 4 More detailed statistics on wine production and cultivation, as well as consumption in the Czech Republic, will be given in the next chapters. Winemaking is subdivided into the Czech and Moravian viniculture regions. The area of the Czech wine region makes up almost 500 hectares of vineyards. The Moravian wine region consist of ten wine provinces, with a total solar vineyards area of about 11,500 hectares. 5 4 Evinice.cz. Vine regions, districts and wine villages in the moravia and Czechy. [online]. [cit ]. Available on the Interent: < 5 Pragadom.cz. France has appreciated Czech wines. (in Russian). [online]. [cit ], Available on the Internet: < 12

13 There are more than 350 wine settlements in the Czech Republic, it is a famous and dynamically developing industry. The government has always regulated the wine business in order to maintain good standards and quality. For example, the first wine regulation came into effect in After 1918, the entire Czech Republic adopted this law, and it remained in effect until it was changed according to the Czech standards. In 1955, this law on winemaking entered into force again, but some corrections about the maxims of cultivation were included in the sphere of viniculture and winemaking. 6 In 2000, it was adjusted to the directives of the European Union in the winemaking sphere. In 2004, a new version of this law was adopted. It is Act No. 321/2004 on viniculture and winemaking Main wine types and sorts in the Czech Republic Though it is believed that beer has been a national beverage in the Czech Republic since the old days, it is very difficult to imagine the Czech Republic without wine. Czech sorts of wine deserve proper attention, as some of them are quite specific and unique, and can be cultivated only in some regions of the Czech Republic. It should be mentioned that Gregor Johann Mendel, the founder of genetics, was engaged in winemaking in Brno in the 19 th century. Mendeleum, the institute of plant breeding, was established in Lednice na Morave, and named after him in At the end of the 19 th century, a new sort of grape was created. Since 1950, a whole series of new sorts of grapes have been cultivated in Moravia (Pálava, André, Moravian Muscat, Neronet, Olshava, Vitra). 8 Work is still continued on many of those sorts of wine. However, as far as the lifecycle of the grapevine extends over some years, part of new sorts cultivated in Moravia stand for about 5% of the total amount of wine areas in the Czech 6 Wine.cz. Wine review No. 7-8/97. [online]. [cit ], Available on the Internet: < 7 Wine community Zelesice. Wine Act. [online]. [cit ], Available on the Internet: < 8 Mendelium genetics institute. History. [online]. [cit ]. Available on the Internet: < 13

14 Republic. The white sorts used for the wine production are cultivated at 74% of the total wine areas, while blue sorts take up only 26% of this territory. Let s see the most famous and valuable Czech and Moravian wine sorts. This description will be useful in terms of my questionnaire, as it will be one of the questions. The wine sort "André" belongs to the sort of grapes cultivated in Velke Pavlovice nowadays. Jaroslav Horák from the Institute of Genetics in Velké Pavlovice bred this viticulture. André is actually a mix of two viticultures: Frankovka and Svatovavřinecké, and was first introduced in In 1980, this viticulture was included in the list of approved sorts of viticultures. It was named after Christian Carl André ( ) who contributed to development of environment in Moravia. 9 Sorts of grapes such as Veltlinsky Zelene, Mueller Thurgau, Italian Riesling are widely spread. Among dark sorts of grapes, St. Laurent is one of the most popular wines in the Czech Republic. 1.2 Basic information about viticulture To understand the process of winemaking and the factors affecting its overall results, one should understand the steps of winemaking. The quality of wine is determined already on the vineyard. The most significant and important factor for winemaking is grape, and its quality. Its ripeness is the result of many biochemical and physiological processes that flow on a vineyard, and in the environment. 10 Organic and inorganic substances can be divided into two groups: primary and secondary metabolites. Primary metabolites are sugar, organic acids and amino acids. Secondary metabolites are aroma and phenolic substances. Both groups 9 District Velké pavlovice. Viticulture and wine. [online]. [cit ]. Available on the Internet: < 10 PAVLOUŠEK, P Winemaking of wine retailers: modern winemaking. Prague: Grada, p

15 have efficient impact on grapes, wine quality and taste. The process of ripeness of grape berry starts approximately in June, and is divided into three phases. The first phase lasts approximately days, depending on the sort of vineyard, and other planting conditions. This period is the most important, and influences the result in terms of quality of grapes. Natural conditions and weather also play a significant role in the process of the first phase. The second phase is the period of slow growth of grape berry, which starts with colouring and softening. This is the period of sugar concentration, and formation of aroma. The level of organic acids is lower. The third phase is the process of ripening of grapes until the harvest period. The size of grape berries is highly dependent on rainy days, and the level of humidity in the soil and air. The phase of ripening lasts for approximately days, and this is the time of sugar and acid concentration, aroma, minerals and nitrogen substances concentration PAVLOUŠEK, P Cultivation of vine: modern winemaking. Prague: Grada Publishing, p

16 2 Analytical part 2.1 Wine territories in the Czech Republic The Czech Republic is not only Czechia (Western part of the country), but also Moravia that is located in the East. If there is an opportunity to buy wine from the Czech Republic, one should demand Moravian one. Viniculture occupies several regions of South Moravia along the border with Austria Wine regions of Moravia district Moravian wines are more popular and famous than Bohemian ones. The golden age of viniculture in Moravia was the 17 th century. On the average, a resident of Moravia consumes about 56 l per year. However, after the war in the 17 th century, the overall area of vineyards was cut down three times. The farmers preferred to replace grapes by other agricultural commodities. After the Second World War, the viniculture`s decadence was continued. Though after the revolution in 1989, Moravian vine-makers began the company for viniculture`s renascence in the Czech Republic. The Moravian wine district includes 17,450 hectares located primarily in South Moravian and Zlinsky districts. Moravian wine districts include 96% of vineyards in the Czech Republic. Approximately 80% of valuable and high quality wine are annually produced in this region, and only 20% of production stands for lower quality wine. The vegetative period of wine is shorter than in other Western European regions, but maturation of viticulture takes a longer period of time. This region is very suitable for cultivating sorts of white wine, as they do not need as much sun and dryness as sorts of red wine. Particular Moravian districts are 12 as follows: 12 Evinice.cz. Vine regions, districts and wine villages in the moravia and Czechy. [online]. [cit ]. Available on the Interent: < 16

17 Znojmo district is located on 3,530 hectares of vineyards, and includes 91 regions. This district occupies 19.2% of vineyards in the Czech Republic. The district is characterized by a cooler climate in the rain shadow of the Bohemian- Moravian highlands, and by rocky soils. The main sorts that are cultivated in this region are: Grüner Veltliner, Müller Thurgau, Riesling, Moravian Muscat, Pinot Gris, and Sauvignon. Among red wines, Svatovavřinecke and Frankovka are primarily cultivated. The list of vineyards from Znojmo region is represented in Attachment No. 1 of this bachelor s thesis. Mikulov district is located on 4,737 hectares of vineyards, and includes 30 of vine regions. In the total production capacities, Mikulov district provides 25.3% of vineyards in the Czech Republic. It is the largest and warmest region with warm calcareous clays, sands and massive loess drifts, which gives mainly white wines taste and aroma. Primarily wine sorts such as Sauvignon, Riesling, Riesling, Miller Thurgau, Pinot Gris and, Gruner Veltliner, Chardonnay, etc. are produced here. Red wine sorts produced in this region are Svatovavřinecké, Pinot Noir, and Cabernet Sauvignon. 13 District Velké Pavlovice This wine region extends over 5,143 hectares of vineyards. Viticulture grows in 75 municipalities, and covera 27.5% of the vineyards of the Czech Republic. Region Velké Pavlovice is located in the South Moravian Region, and includes five districts: Brno-Country, Vyškov, Břeclav, Hodonín, and Brno - city. The slopes in the northern area are formed of calcareous clay, marl and sandstone, white wines of this area are mildly mineralized, with fruit tones and fresh aroma. The most widespread varieties are Grüner Veltliner, Trmín, Neuburské. The region is also 13 Evinice.cz. Vine regions, districts and wine villages in the moravia and Czechy. [online]. [cit ]. Available on the Interent: < 17

18 good for cultivating red sorts of wine, for example Frankovka, Blue Portugal, Zweigeltrebe. 14 Slovak region Slovak wine region extends over 4,514 hectares of vineyards, including 115 municipalities, and covers over 24.1% of the vineyards of the Czech Republic. Wines from this area are sought for their special beauty, distinctive aroma, and unmistakable character, fresh acidity. The above-lying vineyards make wines full of character with fresh and distinctive aromatic substances. The most common varieties are Müller-Thurgau, Moravian Muscat, Riesling, Gruner Veltliner Wine region of Czechy (Bohemia) Czechy region is one of the northern regions of European viticulture. Prague is situated at 50 degrees north latitude. Most vineyards are near Melnik, Litoměřic, a bridge where the average daily temperature is 8.7 C, average annual rainfall is 547 mm. Vineyards are continuous, and extend intermittently around the rivers of Elbe and Vltava. Greater fluctuations of weather and temperature each year lead Czech winemakers to long storage, and aging of wines in barrels. That is the reason why wines are fragrant, but also acidic. The wine growing region consists of two sub-regions: Melnik and Litomeřice. Melnik region Melnik is a center of the viniculture region in the Central part of the Czech Republic, and it is located 30 km to the north from Prague. Melnik s history, and the history of viniculture are tightly bound. The pick moment of viniculture and winemaking was during the government of the Czech king. He came to a 14 District Velké pavlovice. Viticulture and wine. [online]. [cit ]. Available on the Internet: < 18

19 conclusion that local climate conditions were quite similar to conditions in French Burgundy. According to his decree, young plants of grapes were brought from Burgundy. The climate here is mild, and there are less sunny days than in the Moravian regions. 15 Litoměřice Litoměřice wine region extends over 288 hectares of vineyards, wine includes 29 municipalities and covers 1.5% of the vineyards of the Czech Republic. Litoměřická sub-region is the smallest wine region in the Czech Republic. In the vicinity of Roudnice nad Labem is the bedrock sandstone and limestone, and the local wines and are rich in minerals. The most widespread varieties are Müller- Thurgau, Riesling, Svatovavřinecké, and Blue Portugal. One can see that Czech wines can undoubtedly compete with other European and global competitors. The best Moravian wines are competitive, but Moravian winemakers can`t compare in marketing and advertising with European producers, and this is regarded as a weak point. Viniculture makes part of agriculture, and European vineyards get a huge subsidy from the European budget. Products are oversupplied. And to be more honest, countries such as France, Italy or Spain are influential members of the European Union, and they are not interested in the competitive market for their wine. That`s why, in Brussels, it was prescribed to all European countries how many vineyards hectares they can have. The Czech Republic was allowed to have as many hectares as it haf when it joined the European Union. 16 After the Czech Republic joined the European Union, wine production has changed. Restriction on vineyards territories appeared, and duties on imported wine were cancelled. French and Italian wines became cheaper at once, and 15 Nasesklepy.cz. Melnik wine district. [online]. [cit ]. Available on the Internet: < 16 Univerzita Palackého. Česká republika v Evrpské unie: ekonomické dopady vstupu. [online]. [cit ]. Available on the Internet: < 19

20 competition on the Czech market became more intense. Nevertheless, the Czech and Moravian producers continue developing viticulture, and produce high-quality wine sorts, and even archive wine. 2.2 Statistical analysis of wine consumption in the Czech Republic There are a few estimations about wine business and wine demand in The Czech Republic that definitely predict the wine production trends in this country. One of the most significant indicators in analyzing wine trends is statistics of wine consumption. The Czech Statistical Bureau provides different statistical researches and reviews about wine consumption in the Czech Republic. I have tried to find out the most interesting trends, and present them in this bachelor s thesis. Thus, Figure 1 shows the ratio between consumption of grape wine and other wines (pear and plum wine, berry wine, etc). It is obvious that grape wine is much more popular than unusual sorts of wine. The second finding of those statistics is that consumption of grape wine has been increasing in the last ten years, and there still is a growing tendency in consumption of grape wine. Consumption of unusual sorts of wine from other berries has slight fluctuations, but is generally at the same level of consumption. If we represent the data in percentages, the share of non-grape wine consumption is decreasing. 20

21 Figure 1: Wine consumption in the Czech Republic ( , l/person/year) Source: Czech Statistical Bureau. Available on the Internet: < It has several times been stated in the thesis that the Czech Republic is a beer country, and that beer is much more demanded by consumers than wine. To prove that, I have decided to show statistics on wine and beer consumption in the Czech Republic (Figure 2). It is obvious that consumption of beer was decreasing in the period , but still this is the most popular alcohol drink in the Czech Republic. To the contrary, consumption of wine increases from year to year, and thus decreases the difference between beer and wine consumption. A probable reason of such trends is that many Czech customers and alcohol beverage consumers move toward healthy lifestyle, and consider wine a much healthier beverage than beer. Moreover, fitness and sports life have been rapidly developing in recent years, and wine is considered to contain fewer calories than beer. Another reason why beer is of greater demand than wine is that one customer can easily drink one litre of beer, but it is unlikely that he would drink one litre of wine. If he does so, he will be extremely drunk. The answer is content of alcohol in both beverages. Beer is less alcoholic than wine (4-5 against ). 21

22 Figure 2: Wine consumption in the Czech Republic ( , l/person/year) Source: Czech Statistical Bureau. Available on the Internet: < The third statistics which are interesting and relate to this research is the share of wine in total alcohol consumption in the Czech Republic. The statistics show that wine consumption share is 9% (2004), and 11.5% (2012). The share in total alcohol consumption had been increasing from 2004 to 2011, and then there was a slight decrease. Evidently, this decrease was the result of the total decrease in alcohol consumption in The reasons for decrease in alcohol consumption are not known for sure, but I can assume that this fall was caused by rise in prices (consumption taxes) for alcoholic beverages and cigarettes. 22

23 Figure 3: Share of wine ( , l) Source: Czech Statistical Bureau. Available on the Internet: < 23

24 3 Questionnaires The questionnaires were distributed within three groups of people: wine experts (sommeliers) working in restaurants, who primarily distinguish between high quality and lower quality sorts of wine and viticulture; end users consumers of wine, who choose wine according to their preferences and tastes, price relation and market offer; and proficient producers, who produce wine, and take care of viticulture in the Czech Republic. It is logical that there are three different questionnaires addressed to those three groups of respondents, and the questions vary (as knowledge and skills about wine consumption and production vary as well). 3.1 Questionnaire for wine producers The next part of the thesis comprises three questionnaires, and analysis of answers and wine trends in the Czech Republic in recent years. Wine producers proficient in the Czech Republic are the ones which produce original Czech and other wine sorts and species. Czech wine production has a long tradition, which was evidently caused by high demand for Czech quality wine. The questionnaire addressed to wine producers is aimed to know the main trends in wine production according to changes in demand and environmental changes, as well as to main demand trends among Czech consumers. The questionnaire in aimed to provide information about traditional Czech wine production. The researcher has a strong belief that domestic Czech production is highly dependent on demand. The questionnaires were distributed via and by phone to numerous small, medium and large wineries in the Czech Republic. In total, there were one hundred wineries that were eager to cooperate and answer the questions. I guess that the questionnaire was so successful in terms of feedback, because it contained just a few questions. 24

25 The first question was aimed to know the main sorts of wine produced by Czech wineries. The questionnaire contained different sorts of white, red and rose wine. The respondents had to choose those sorts of wine that they actually produced. The most frequent answer is Rulandské Šedé (17), which corresponds to the Italian sort of wine Pinos Gris. The second frequently produced sorts of wine are Ryzlink (Riesling) (16) and Tramín (16). The third frequent sort of wine is Chardonnay, which is originally a French sort of wine. Those three categories are all sorts of white wine, which shows that most respondents wine producers are keen on producing white wine. Less popular answers were Pálava (10), Veltinské zelené (9), Sylvanské zelené (9), and Sauvignon (8). The Czech Ministry of Agriculture introduces statistical reports of wine consumption, and wine trends in the Czech Republic. 17 Their results state the same. The most preferred white sorts of wine are Rysling, Tramín, Chardonnay, and Rulandske sede. 17 Ministry of Agriculture of the Czech Republic. Situational and estimation report on viniculture and wine business in the Czech Republic. [online]. [cit ]. Available on the Internet: < 25

26 Figure 4: Types of white wine produced in the Czech Republic Source: Questionnaire The second question was aimed to know the main sorts of red wine produced in private wineries in the Czech Republic. The most frequently produced sorts of red wine in the Czech Republic are Svatovavřinecké (25), which is a traditional Czech wine, and also the highly demanded Zweigeltrebe (21), which is originally an Austrian sort of wine, but is also cultivated and produced in the Czech wineries, Rulanské modré (20). Less frequent answers were Cabernet Sauvignon (2), Neronet (3), and André (5). As seen from the questionnaire, it includes the answer Other, which was also answered by several producers. Among other wine sorts produced in the Czech Republic are Dornfelder, Nativa, Modrý Portugal, Muller Thurgau, Muškát moravský. The Czech Ministry of Agriculture states the same in its statistical report of The most preferred red sorts of wine are: Frankovka, Svatovavrinecke, Rulandske Modre, Zweigeltrebe. 26

27 Figure 5: Types of red wine produced in the Czech Republic Source: Questionnaire Most producers distribute produced sorts of wine through wine shops (23), and retail shops (16). It is logical, because small wine shops initiate producers interest in retail sales by providing them with a higher profit margin in comparison with supermarket or hypermarket stores. Two or three sorts of wine do not limit retail wine shops, which can also offer different sorts of wine from different producers, and thus expand their assortment. Moreover, retail shops do not require any entrance fee from wine producers, and thus producers gain according to sales and the profit margin. Wholesale stores are the second popular answer (18). Wholesalers offer lower commission fees (profit margin) to producers, but can initiate large sales, so that producer fully uses his capacities, and sells more units of wine at a lower sale price. The result is the same or even greater than in the first example. E-shops and individual consumers are other important distribution channels. Degustation tourism and wine tourism are developing in the Czech Republic, and many individuals visit private wineries in order to buy new delicious local wine. If those are local consumers, they can order wine through e-shops or on delivery later on. Wine bars and restaurants are less popular distribution channels, but they are still important. Consumption of wine in restaurants and bars is high, and wine 27

28 producers deliver their wine to restaurants and bars on the terms of contractual negotiations. Figure 6: The main distribution channels in the Czech Republic Source: Questionnaire The forth question addressed to wine producers helps us understand the main competitors, strengths and weaknesses of Czech wine species and sorts. That might answer the question why some consumers choose foreign wine sorts, instead of domestic production. Wine producers stated that the most competitive wine sorts come from Portugal and Austria. Italy was pointed as the second competitor of the Czech Republic, France as the third one. Wines from Spain and Hungary are not as much competitive as Czech wines, according to the results of the questionnaire. Moreover, wine producers of the Czech Republic added that Czech wine sorts couldn t be competitive in price competition with foreign imported sorts of wine. The quality is on the high level, but the price is on its optimum level, and still remains quite high for the end consumer. The answers are just broad, as every wine sort has its own competitors, and for further details, it is necessary to study every species and sort separately. 28

29 Figure 7: Main competitors France Hungary Italy Spain Other country 4. Who are the mail competitors? Source: Questionnaire Another interesting question with various frequency of answer is the question about general impact of foreign wine trends on the Czech wine business. 50 wineries are sure that, due to the bad quality of foreign imported wine, demand for Czech traditional wines is much higher than in the previous years, and in comparison with foreign wine sorts. 45 wine producers state that they are still producing Czech sorts of wine paying no attention to foreign trends or changing demands. Only 5 wineries answered that, due to the changing demands and trends in the wine business, they changed their offer and adapted their production to foreign trends. Actually, one can see that there are so many similar sorts of Czech and foreign wines that have different names: Ryzlink, Svatovavřinecké, Pinos Gris, and others. If Czech wine producers try to follow foreign trends, they start to name their products in a foreign manner, and represent them as foreign brands. However, one can see that there are still primarily Czech wine sorts stated on the bottles of Czech wine producers. 29

30 Definitely, if we take a look at Czech Agrarian Ministry s statistics 18, we will see, that the shares are the same, and the greatest competitors in wine imports are Italy, France, Spain, and Hungary. Figure 8: Impact of foreign wine trends on the wine business in the Czech Republic Yes, the wine producers respond to the most desired types of wine and begin to produce similar ones 50 Yes, the demand for Czech and Moravian wines are much higher 45 No, we are still producing the Czech traditional wine types Source: Questionnaire The last question was aimed to show the most significant changes in production and consumption of wine in the Czech Republic. Wine producers state that production of wine in the Czech Republic has increased in recent years due to the increase in consumption of wine. This is the most valuable answer in terms of this thesis, as it shows production trends, and increased demand on Czech traditional wines. 40 wineries are sure that there have been significant changes in wine consumption and production in recent years, but cannot specify those changes.18 wine producers do not follow wine consumption trends or wine production trends in the Czech Republic as they have no idea about the changes in production and 18 Ministry of Agriculture of the Czech Republic. Situational and estimation report on viniculture and wine business in the Czech Republic. [online]. [cit ]. Available on the Internet: < 30

31 consumption of wine in the Czech Republic. A small percentage of wineries (5) see dependence of wine consumption or production on exports. The same statistics are published in the Ministry of Agriculture s report. Demand on the wine market in the Czech Republic is much higher, and has been constantly increasing in recent years. Figure 9: Most important changes in production and consumption of wine in the Czech Republic Source: Questionnaire 3.2 Questionnaire for wine consumers Wine consumers are actually the key figures defining and predicting wine consumption trends in the Czech Republic and elsewhere in the world. A consumer of wine produces demand to be satisfied by wine producers. 31

32 Consumers tastes are highly influenced by their lifestyles and general trends in society they live in. The questionnaire is aimed to learn general and particular information on wine consumption trends in the Czech Republic. It was distributed among 400 consumers of wine, primarily acquaintances and their associates, social networks, mails and personal contacts, at restaurants or in the streets of Prague. The respondents are not just Czech people; they are foreigners living in the Czech Republic. The questionnaire was offered in the Czech language, as most people do not understand English, or it is more difficult to understand a foreign language in the Czech Republic. Figure 10: Frequency of wine consumption Source: Questionnaire According to the conclusion that can be drawn on the first public opinion is that a great number of people prefer some harder drinks, and never drink wine or other light alcoholic beverages. This group is represented by 41% (163 participants) of all interviewed people. Furthermore, 37 people proclaimed themselves abstainers, people who never drink alcohol at all. These results let us conclude that 50% of the initial audience shouldn`t take part in the next questions, and are not our target 32

33 audience. 92 people indict regular consumption of wine, for instance, minimum once a week. 86 consumers prefer occasional consumption of wine, - they drink maximum twice a month. And 22 people chose regular consumption which indicates that they drink wine every day. These two hundred people are our key audience for this questionnaire and further analysis. Figure 11: Place of wine purchase Source: Questionnaire The second question was addressed only to a half of the original audience that relates to the topic of our work. Ninety-eight of them noted that they bought wine in specialized wine shops that make up 49% of all interviewed people. That points to the fact that people nowadays prefer wine of higher quality, even if the cost is higher in this case. That fact suggests an idea that people know a bit more about wine, and appreciate its good quality. Specialized wine shops are ready to offer more various ranges of goods. There are qualified consultants, which can help choose the best wine sorts. Retail shops are still popular, as 79 people voted for this choice. The range of wine in retail shops is smaller, and the prices are lower. Ten respondents prefer to buy wine from wine producers, and it is a more complicated process. 7 people buy wine in restaurants and bars, possibly on the 33

34 advice of their waiter. 5 people never buy wine at all, and only 1 person produces wine himself. Figure 12: Do you consider wine to be healthy, if one drinks it in limited portions (for example, 2 dl a day)? Source: Questionnaire The next question was aimed to know what people think about the utility of wine. It is a difficult question, and there is no exact answer even among the proficient community. In any case, everything depends on \quality of wine, way of production, and preferences of a particular person. Over 50 percent of interviewed people consider that red wine is definitely healthy in case of drinking it in limited portions. Those 102 people think so about red wine. And 82 people have an absolutely opposite opinion stating that only white wine is worth drinking. Nine of them find wine to be the healthiest beverage in comparison with other alcoholic drinks. Four people were unable to choose the answer, and it is not extraordinary. 3 people consider that drinking alcoholic beverages is harmful even in small portions, whether it is wine or any other soft drink. 34

35 Figure 13: Preference of wine to other alcoholic beverages Source: Questionnaire All people are individuals, and all people have their own preferences in beverages. Within the framework of the next question, it was revealed that 178 people prefer wine to other beverages. After all, wine is an organic drink. Wine is exposed to minimum technical and chemical cultivation during the process of preparation. Besides, wines have delicate taste, and a rich bouquet. That demonstrates increase in wine`s popularity among people. 22 of the interviewed people said that they drink wine, but it is not their preferable beverage. None of the interviewed people stated that wine is definitely not their choice. 35

36 Figure 14: Amount of wine consumption during one event Source: Questionnaire From the next question, I learnt that 134 people usually consume several glasses of wine, up to one bottle, during one event (67% of interviewed people). It shows that, if one decides to drink during an event, he will most likely choose wine for its less alcoholic and rich taste. Otherwise, they could probably choose some other hard drinks, the so-called shorts. 66 people prefer to drink one glass of wine during one event, or even less. Probably, those are less-drinkers, who drink wine for socialization. On the contrary, 10 people drink more than one bottle of wine during an event. This shows that some people consider wine to be a ritual, and kind of trendy time spending, and others drink wine in order to get some of its alcoholic features, for example, get drunk and funny, enjoy the evening with a bottle of wine, etc. 36

37 Figure 15: Significant criteria of wine purchases Source: Questionnaire According to the next question, it was discovered that for 80 people, the most significant criterion while purchasing wine is the country of origin. And for 67 persons, the most important criterion is price. It at least confirms the second hypothesis that a growing number of customers around the globe do not want to overpay for wine tradition. So, countries that offer good wines at reasonable prices remain the winners. This number is really growing, but in any case, the country of origin is still quite an important factor for many people. 32 of all interviewed people pay attention to the sort or type of wine. For 14 people, package plays a significant role. And it also proves the first hypothesis that modern wine consumers have become more democratic - it is evident not only in relation to other aspects of price, taste and bouquet of wine, but also with regard to such seemingly minor details like packaging. 3 persons pay attention to advertising, and 3 people notice the producer of wine. One person chose another criterion. 37

38 Figure 16: Preferred types of wine Source: Questionnaire The next question was asked to know what type of wine people prefer. According to the inquiry, it was revealed that 102 persons prefer red wine, and 82 of interviewed people prefer white wine. This information is consistent with the results of the question about the healthy side of drinking wine. So, those who believe that red wine is healthy while drinking in limited portions definitely prefer red wine. And the same situation with white wine is the same. 9 persons prefer rose wine, and 5 persons chose sparkling wine. Only 2 persons said that the sort of wine is not important, and they mentioned all previous types. The wine market moves to diversity, because it is the main factor determining the scope of consumer preferences in varieties and sorts of wine. But it can be suggested that red wine is the most popular type of wine nowadays. Czech statistics provided by the Ministry of Agriculture state the same. Red wine is more preferred by consumers, but there are white wine lovers as well. Nontraditional sorts are not so preferred as red and white sorts of wine. 38

39 Figure 17: Preferred sorts of wine Source: Questionnaire The next question was designed to know what type of wine people prefer in most cases. 138 of interviewed people prefer dry sorts of wine. It is known that dry sorts of wine have some medicinal characteristics, and help in case of obesity and sicknesses, for instance, pancreatic diabetes (in limited portions). 42 persons show preference for semi-dry sorts of wine. 13 persons choose brut, and just 2 persons prefer dessert wine or sweet wine to others. Other 2 people prefer wine liquors. And 3 of interviewed people chose another variant. After all, it can be concluded that, in most cases, people prefer dry sorts of red wine. Nowadays, there is a variety of such wines in retail shops, and people really have a choice. The results correspond with the statistical data provided by the Czech Ministry of Agriculture in its statistical report for 2013, as the most tasteful wine sort for Czech customers is dry wine. Czech customers, according to the report, are rather traditional in their choice. 39

40 Figure 18: Preferred country of origin Source: Questionnaire From the next question, it was revealed that 83 people prefer France as the country of wine origin. French wines are considered the best wines nowadays. Maybe it is due to tradition, but our questionnaire confirms this stereotype. But wines from Italy and Spain are also quite popular, and 81 persons mentioned Italy as the country of their preference. What`s interesting, none of the interviewed people chose Spain, Australia or Slovakia. 32 persons prefer the Czech Republic to other countries of wine origin. And these 32 persons are our main target audience for this research paper. 3 persons prefer Hungary, and only one person prefers Chilean wine. Although Chilean wines are also quite widespread, they are not highly demanded. 40

41 Figure 19: Preferred sorts of Czech wine Source: Questionnaire The next question was aimed to know the most preferable sorts of Czech wine according to people`s opinion. 59 of them chose Zweigeltrebe-red wine. It should be mentioned again that in Czech Republic, Zweigeltrebe, which is also known as Zweigelt, is the third most widely spread red-grape sort. It is cultivated on about 5 percent of Czech vineyards. Zweigeltrebe is a result of hybridization of Saint Laurent and Frankovka sorts of grapes. 50 people prefer Frankovka-red, which is the most popular wine in one of the viniculture regions of Moravia in Velke Pavlovice. 34 people prefer Rulandske zelene as well as Chardonnay white that belongs mostly to Lednice region of Moravia. 18 of interviewed people selected Pinot Gris white wine. And 5 people chose another variant. All these sorts of wine are quite widespread in Czech Republic, and people can be sure of their quality. Czech statistics published in the report of the Ministry of Agriculture state the same. The most popular wine is red. It is Frankovka ad Zweigeltrebe. White wine is also very popular in the Czech Republic. 41

42 Figure 20: Cost of wine in retail shops Source: Questionnaire From the next question showed that 93 of interviewed people were able to spend at most CZK on wine. That confirms our hypothesis that a growing number of customers around the globe do not want to overpay for wine tradition. 63 persons said that their maximum price for wine was up to 100 CZK. Price has a really significant meaning. 42 persons are ready to spend from 301 to 500 CZK for one bottle of wine, paying attention to the quality. And only 2 persons are able to spend more than 500 CZK for one bottle of wine. In general, it is quite an interesting result, as even wine lovers choose less expensive sorts of wine. People have an opportunity to take advantage of the offered assortment. In most cases, it depends on the place where they purchase wine, and the amount of money they are eager to spend on it. Again, the results of our questionnaire correspond with the Ministry of Agriculture s statistics. 42

43 Figure 21: Cost of wine in restaurants Source: Questionnaire According to the results of the following question, it was learnt that 93 of interviewed people are able to spend from 201 to 300 CZK for one bottle of wine in restaurants. But people need to understand that for this money, people will get wine of worse quality in restaurants in comparison with retail shops. The difference is in profit margins. 63 persons mentioned that they were ready to spend at most 200 CZK for one bottle of wine. And 42 persons said that they were ready to spend from 301 to 500 CZK. These indices are also quite similar to the previous ones. And only 2 persons were ready to spend more than 500 CZK in restaurants. 43

44 Figure 22: Place of wine drinking Source: Questionnaire The next question dealt with statistics showing the time when people usually drink wine. It is quite dependent on a person`s habits. A great part of interviewed people prefer drinking wine during dinner persons (73.5%) of them made such choice. 49 people found this question difficult, and had an opinion that wine consumption was linked with food consumption. 3 people prefer to drink wine with desserts or fruit. And only one participant chose to drink wine during lunch. The most preferable meal for drinking wine is supper, and this proves that wine is a traditional and ritual alcoholic beverage. 44

45 Figure 23: Personal opinion about wine consumption trends in CR in the last 5 years Source: Questionnaire According to the results of the following question about trends in the last 5 years, it was revealed that 93 persons considered that consumers in the Czech Republic prefer to drink more red wine. According to the previous question, it was learnt that red wine is really more popular from different points of view. 87 of interviewed people mentioned that they believed that consumers drink more white wine as a consumption trend. And 19 persons mentioned that wine consumption had increased in general in the last 5 years in the Czech Republic. That is an incontestable trend in the country. And nobody thinks that wine consumption has decreased in the last 5 years. One person paid his attention to an interesting fact why red wine consumption has increased, and considers that people prefer to buy red wine due to intensive advertisements, including lifestyle propaganda. And it is quite an interesting remark. 45

46 3.3 Questionnairy for wine experts sommeliers in restaurants Wine experts are usually called Sommeliers this word is a derivation from a French word, which has no proper translation, and is used in its original French form. According to Black (2010, p. 170) Sommeliers are professionals trained in the various aspects of wine service, as well as, to a lesser degree, the service of other alcoholic beverages. They generally work in restaurants, especially gastronomical establishments 19 That is the reason why our questions in the questionnaire addressed to sommeliers involve questions about wine consumption in restaurants and wine bars. All questions are open, providing a responder with some space for his/her expression of thoughts. In fact, this questionnaire is much similar to the interview, the only and most significant difference is that respondents have less time, and the researcher does not interrupt their brief responding. Evidently, Czech customers might be irregular wine consumers, as the most common alcohol beverage in this country is beer. However, lifestyles and common trends in wine perception and consumption could have changed this statement. Moreover, sommeliers commented on the most popular sorts of wine consumed in restaurants. The questionnaire shows the general perception of wine by Czech citizens. Wine is a very special alcoholic beverage, which has its own species and light taste, and flavour differences evident for wine lovers or experts, but invisible to people who are not wine lovers. Some people decide to drink wine in general, not some particular sort of wine or year. In case sommeliers define Czech wine consumers as picky and choosy, it means that these customers have and understand well national wine traditions. The questionnaire has been distributed by and telephone among Czech restaurants, which provide a wide range of wine species, and wine offers. Generally, we can say that feedback from restaurants was very low, as only BLACK, R Alcohol in Popular Culture: An Encyclopedia. Santa Barbara: Greenwood Publishing Group, p

47 restaurants from more than one hundred answered our short questionnaire. However, the results are as follows: Figure 24: Czech customers are choosy or picky while ordering a glass or bottle of wine Source: Questionnaire The first question shows that customers are really different. Some of them are picky when choosing a bottle of wine. Others are indifferent. 15 restaurants confirmed this statement. Nine of thirty customers think that Czech customers usually spend time while choosing a type and sort of wine in the wine list. Five sommeliers have stated that customers usually demand for recommendation and expert advice. None of sommeliers chose the answer that Czech customers chose one type of wine preferred by others. This means that those customers are very individual in their choice. The next question was aimed to learn the main wine preferences of the Czech customers. The answers of sommeliers were rather different. Some stated that Czech customers prefer wine from other European countries: France, Spain, Hungary, etc. Ten sommeliers stated that Czech wine is the most popular among Czech customers. 7 sommeliers think that wine origin is not a criterion of wine 47

48 selection for Czech customers. Only one sommelier stated that Czech customers rarely ask about wine origin, and are rather interested in the sort and type of wine. Figure 25: Wine preferences of Czech customers Czech stomers customers rather prefer c) Czech Wine wine wine origin from than other is d) not other Czech European origin criteria customers countries: of on wine which very France, rarely Czech ask customers Spain, about Hungary, wine chose origin, than wine they in our primarily restaurant ask ab wine of Czech origin 2. Do you consider Czech customers to prefer Czech or other wine sorts (France, Italy, Spain etc)? Source: Questionnaire Restaurant wine experts state that the most preferred wine type is white wine (23). Other 15 sommeliers think that red wine is much more demanded by Czech customers. Rose wine and sparkling wines are less demanded among Czech customers. Four sommeliers think that all types of wine are preferred and demanded at the same level. Those answers come from those respondents, which are not particularly interested in consumer preferences, and have no personal interest in or eagerness to understand which type of wine is the most highly demanded by customers. 48

49 Figure 26: Main preferences of wine of restaurant visitors and consumers a) White wine b) Red wine c) Rose wine d) Sparkling wine e) All of mentioned above 3. Please, describe the main preferences of wine of restaurant visitors and consumers Source: Questionnaire The question about customers preferences was aimed primarily to learn the customers main tastes. That is why there was a multiple choice in this question, which means that one sommelier could choose more than one answer. From the fourth question, it is obvious that Czech consumers prefer dry wines. 29 of 30 sommeliers confirmed that. Only 8 sommeliers think that Czech customers mostly demand semi-dry sorts of wine. Two sommeliers think that brut is the most popular type of wine. Dessert wine, wine liquors and other wines are not preferred in comparison with the abovementioned popular sorts of wine. 49

50 Figure 27: Most demanded and preferable wine species among Czech consumers а) dry sorts of wine b) semi-dry sorts of wine c) brut d) dessert wine e) wine liquors f) other 4. Please discuss on the most demanded and preferable wine species among Czech consumers Source: Questionnaire In the last question, the most popular wine sorts were chosen by Czech sommeliers. There was again a multiple choice possibility, and thus the total sum of answers is higher than the total number of sommeliers in the restaurants. They state that the most demanded sort of wine in restaurants is Chardonnay, which is a dry white sort of wine. Indeed, this wine is very popular, especially among women. Cabernet Sauvignon was marked as the second most popular type of wine by sommeliers in restaurants. Less popular as purchased in restaurants are Chablis (7), Chiraz (4), Pinot Grigio (6), Savignon Blanc (6), and others (primarily white sorts of wine). The difference between answers of wine producers, consumers and sommeliers in restaurants can be described by different places of wine consumption. In restaurants, people like serving of wine: temperature, glasses, and other details. Red Frankovka can be bought at a shop and drunk at home or at a party. It is not necessary to go to a wine restaurant to drink Frankovka. In this case, we are talking about different key segments of consumers, and different reasons of wine consumption. 50

51 Figure 28: Three wine sorts, which are most preferred and demanded among Czech consumers Could you please point out three wine sorts, which are the most preferred and demanded by Czech consumers Source: Questionnaire 3.4 Interview with wine expert One part of our research in this bachelor s thesis is interview with wine expert Tomas Bruha. The expert has been asked about the main preferences and trends in wine consumption in the Czech Republic, and its changes in recent years. The results and his opinion are as follows: What are the latest trends of wine production in the Czech Republic? In my opinion, in the last 15 years, the quality of the Czech wines has been improving, because of the technology and monetary investments in wine production. It s not only about big companies, but also about middle-sized wineries. In the last 5 years, we speak about small wine producers, not companies, but individuals, they are trying to invest some money to develop some technologies in wine production. 51