MIDTERM MEETING 2017 INTERNATI L WINE MARKET REVIEW International wine market review OTTO SCHÄTZEL DLR OPPENHEIM, GERMANY Annual General Meeting November 2017 Valparaiso Casablanca Valley
OVERVIEW I. INTERNATIONAL WINE MARKET Acreage Global wine production Global wine consumption Wine market II. FACTS ABOUT GWC WINE GROWING AREAS AND TOURISM Adelaide South Australia Bilbao Rioja Bordeaux Bordeaux Mainz Rheinhessen Mendoza Mendoza Porto Vinho Verde Douro San Francisco Napa Valley Valparaiso Casablanca Valley Verona Verona
WORLD AREA UNDER VINES TOP 10 TOTAL ACREAGE 2016 : 7 516 000 ha Spain China France Italy Turkey United States Argentina Iran Romania Chile 224 223 214 214 480 443 690 1 000 ha 847 785 975 Area under vines destined for the production of wine grapes, table grapes or dried grapes, in production or awaiting production. OIV Statistical Report on World Vitiviniculture 2017
GWC COUNTRIES ACREAGE 2016 : 3 771 000 ha Spain 975 France 785 Italy 690 United States Argentina Chile 224 214 443 Area under vines destined for the production of wine grapes, table grapes or dried grapes, in production or awaiting production. Portugal 190 OIV Statistical Report on World Vitiviniculture 2017 Australia Germany 148 102 1 000 ha
GWC REGIONS ACREAGE 2015 : 552 414 ha Mendoza** Bordeaux South Australia** Rioja Douro Verona Rheinhessen** Vhino Verde* Nappa Valley Casablanca* * 2014, **2016 61870 43659 27630 26627 21000 18417 5766 76000 ha 111146 158584
DEVELOPMENT ACREAGE UNDER VINE IN EUROPE 1400 1200 1000 800 600 400 1000 ha 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Acreage (1 000 ha) 0 Source: OIV Spain France Italy Portugal Romania Greece Germany (selection)
DEVELOPMENT ACREAGE UNDER VINE OUTSIDE EUROPE Acreage (1 000 ha) 450 400 350 300 250 200 150 100 Argentina Chile Australia South Africa USA New Zealand 50 0 2000 2002 2004 2006 2008 2010 2012 2014 (selection) Source: OIV
WORLD SURFACE UNDER VINE Total world area under vines in 2016: 7516000 ha Largest acreage: Spain, (China*), France, Italy *estimated: 90% fresh grapes Europe: 54% of world acreage Since 2000, area under vine has fallen considerably in Spain, France, Italy This is mainly influenced by the EU grubbing-up programme in 2011 CurrentlyEuropean acreagequitestableat 3326000 ha In China area under vines continued to increase North and South America did not record any significant variations Australian vineyard should see their recent downturn slow
GLOBAL PRODUCTION / CONSUMPTION 340 334 production consumption 320 mhl 300 280 286 296 289 274 17 mhl overproduction 260 240 258 260 243 220 225 200 1971-1975 1981-1985 1991-1995 1998 2000 2002 2016** 2014 2012 2010 2008 2006 2004 Source: OIV 2016 / **forceast mhl = millions of hl
GLOBAL WINE PRODUCTION TOP TEN 2016: World total 267 000 000 hl (forecasted data) Italy 50 900 France 43 500 Spain 39 300 United States Australia 13 000 23 900 1000 hl China 11 400 South Africa Chile Argentina 10 500 10 100 9 400 (excluding juice and musts) OIV Statistical Report on World Vitiviniculture 2017 Germany 9 000
GWC REGIONS WINE PRODUCTION 2015: 33 895 000 hl Mendoza** South Australia Bordeaux Verona Rioja Rheinhessen** Douro Nappa Valley Vhino Verde* Casablanca* * 2014, **2016 1606 1105 688 383 2557 3099 2988 5791 5450 1000 hl 7609
Companies Number of wineries 30000 25000 25.413 20000 17.285 19.007 15000 10000 7000 5000 4123 2856 2179 518 154 0 South Australia Rioja Bordeaux Rheinhessen Mendoza Porto Vinho Verde Porto Douro Napa Valley Casablanca Valley Verona
CONSUMPTION EXAMPLES 2015: Global Consumption total: 239 mhl 1 000 hl 40000 35000 30000 25000 20000 15000 10000 5000 0 USA France Germany Italy China United Kingdom Argentina Spain Russian Federation Australia Source: OIV 2000 2002 2004 2006 2008 2010 2012 2014*
PRODUCTION AND CONSUMPTION Global wine production in 2015: 275 million hl Global wine production in 2016: 269 million hl Forecast 2017: 247 million hl Global wine consumption 2016: 242 million hl, a modest increase compared with 2015, forecast 2017: 243 million hl Changes in consumption market shares demonstrate that growing markets are countries in North America and Asia Traditional wine consumer countries recorded a reductionin their share of the global market Worldwide production is higher than consumption After global economic crisis there has been no real recovery
EXPORT / IMPORT In 2016, the global market should reach (104.5 mhl) in terms of volume (in 2015: 105.3 mhl a decrease of 1.2% ) 28.9 bn in terms of value -a rise of 2 % compared with 2015 (28.4 bn ) Major exporting countries 2015: Spain, Italy, France Market shares of EU countries are lost to suppliers from the Southern Hemisphere Major importing countries: Germany, United Kingdom, USA Germany is worldwide largest importer by quantity USA is worldwide largest importer by value. Second is United Kingdom.
GWC WORLD MAP
S. AUSTRALIA ADELAIDE
ADELAIDE - AREA 18 subregions: ADELAIDE Adelaide Hills Barossa Clare Valley McLaren Vale Coonawarra Southern Flinders Ranges Currency Creek Southern Fleurieu Eden Valley Adelaide Plains Padthaway Mt Benson Wrattonbully Robe Mt Gambier Langhorne Creek Kangaroo Island Riverland
SOUTH AUSTRALIA SURFACE & PRODUCTION 2014 2015 Acreage: 74 176 ha 74 684 ha Total wine production: 5 073 471 hl 5 791 298 hl Ø Yield: 68 hl/ha 78 hl/ha WINE COMPANIES 4 163 4 123 (including wine-growers, estate wineries)
SOUTH AUSTRALIA Grenache 1693 3% Merlot 4068 7% 73 % RED 27 % WHITE Cabernet Sauvignon 17279 32% Pinot Noir 1673 3% Other Red 3171 6% Shiraz 26684 49% TOTAL: 74684 ha RED: 54 568 ha / WHITE: 20 116 ha Muscat Gordo Blanco 1.038 ha 5% Semillon 1.095 ha 6% Sauvignon Blanc 2.502 ha 12% Other White 3.638 ha 18% Riesling 2.564 ha 13% Chardonnay 9.279 ha 46%
SOUTH AUSTRALIA VISITORS 2014 2015 Total: 5 758 733 6 258 444 (Overnight stays) Leisure* (from total): 4 331 199 4 646 332 Business (from total): 1 061 930 1 211 581 Domestic (from total): 5 386 000 5 850 000 Foreign (from total): 372 733 408 444 *They also track those visiting friends and relatives (VFR) and this is included in the numbers.
SOUTH AUSTRALIA Accommodation 2014 2015 Hotels: 262 265 Rooms/hotels: 12809 13000 2014 2015 Ø Global Tourist spending (million ) 49 961 53 163 Ø Employment (jobs) 32 100 35 700
SOUTH AUSTRALIA Visitors come from - TOP 5 1. United Kingdom 4. China 2. New Zealand 5. Germany 3. USA
SPAIN RIOJA
RIOJA -AREA BILBAO 3 subregions: Rioja Alta Rioja Baja Rioja Alavesa
RIOJA SURFACE & PRODUCTION 2015 2016 Acreage DOCa (certified): 61 870 ha 62 620 ha Total wine production: 2 988 300 hl 3 178 300 hl Ø Yield: 48 hl/ha 51 hl/ha WINE COMPANIES 17 285 (?) (including wine-growers, estate wineries, cooperatives, wineries and grape growers)
RIOJA VARIETIES 2015 92% RED 8% WHITE TOTAL: 64 562 ha RED: 59 294 ha / WHITE: 5 268 ha Other Red 7 488 ha 12% Other White 1 250 ha 2% Tempranillo 51 806 ha 80% Viura 4 018 ha 6%
RIOJA -SALES 2016 SALES BY CATEGORY TOTAL: 249 843 488 l -1,13 % EXPORT: 93 556 490 l -3 % Export by country DOMESTIC: 156 286 998 l 0,03 % Others 30% United Kingdom 35% The Netherlands 3% Switzerland 6% United States 9% Germany 17% Source: Consejo Regulador DOCa Rioja Statistics 2016
RIOJA VISITORS 2014 2015 Total: 1 443 447 1 560 185 (Overnight stays) Domestic (from total): 1 243 238 1 331 427 Foreign (from total): 682 857 741 231
RIOJA Accommodation 2014 2015 Hotels: 197 206 Rooms/hotels: 9 383 9 490 Ø Global Tourist spending (million ) Province Bizkaia 2014 2015 1 592 000 1 700 000 Ø Employment (jobs) Bilbao 1 212 1 234
RIOJA Visitors come from - TOP 5-2015 1. France 4. USA 2. Great Britain 5. Italy 3. Germany
FRANCE BORDEAUX
BORDEAUX - AREA 15 subregions: CITY OF BORDEAUX Médoc Haut Médoc Pessac Léognan Graves Cérons Barsac Sauternes Premières Côtes de Bordeaux Entre Deux-Mères Côtes de Castillon St. Émilion Pomerol Fronsac / Canon-Fronsac Côtes de Bourg Côtes de Blaye
BORDEAUX SURFACE & PRODUCTION 2014 2015 Acreage: 112 160 ha 111 146 ha Total wine production: 5 274 593 hl 5 450 000 hl Ø Yield: 47 hl/ha 49 hl/ha WINE COMPANIES 6 637 6 822 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: CIVB / DounanesFR
BORDEAUX VARIETIES 2015 88% RED RED: 97 810 ha 12% WHITE WHITE: 13 336 ha TOTAL: 111 146 ha Cabernet Sauvignon; 22.007 ha; 22% Source: CIVB Cabernet Franc; 9.292 ha; 10% Other Red; 1.956 ha; 2% Merlot; 64.555 ha; 66% Sauvignon Blanc 6.002 ha 45% Muscadelle 800 ha 6% Other White 266 ha 2% Semmilion 6.268 ha 47%
BORDEAUX - SALES 2015 TOTAL Production: Export: Domestic: 5 450 000 hl 2 060 000 hl 2 820 000 hl EXPORT BY COUNTRY: Japan 9% Others 15% China 29% Source: CIVB USA 11% United Kingdom 11% Belgium 13% Germany 12%
BORDEAUX VISITORS 2014 2015 Total: 5 000 000 5 800 000 Overnight stays: 3 270 290 3 300 000 Leisure (from total): 2 289 203 2 100 000 Business (from total): 981 087 1 200 000 Domestic (from total): 2 452 717 Foreign (from total): 817 573
BORDEAUX Accommodation 2014 2015 Hotels: 223 226 Bed/hotels: 10 211 10 401 Visitors come from - TOP 5 in 2014 and 2015 1. Germany 4. Italy 2. Belgium 5. The Netherlands 3. Spain
BORDEAUX 2014 / 2015 Ø Global Tourist spending (million ) 938 000 000 Ø Employment (jobs) 6 300 30% : 50-64 yrs old 26 % : 35-49 yrs old 12%: 18-24 yrs old 18%: 25-34 yrs old Visitors typology low-income: 35% middle-class: 12% upper middle class : 23% upper-class: 30% 39%: couples 34%: family 24% : single
GERMANY RHEINHESSEN
RHEINHESSEN AREA MAINZ
RHEINHESSEN AREA SURFACE & PRODUCTION 2016 Acreage: Total wine production: Yield: 26 627 ha 2 557 000 hl 96 hl/ha WINE COMPANIES 2 350 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: Rheinhessenwein e.v.
RHEINHESSEN VARIATIES 2016 TOTAL: 26 627 ha 29% RED: 7 819 ha 71% WHITE: 18 808 ha Other White 7629 29% Dornfelder 3391 13% Spätburgunder 1470 5% Other Red 2958 11% Source: Rheinhessenwein e.v. Silvaner 2284 9% Müller-Thurgau 4357 16% Riesling 4538 17%
RHEINHESSEN EXPORT 2016 EXPORT: 268 224 hl BY COUNTRY: TOP 7 China 6% France 6% Export by country Belgium 5% United States 23% Canada 6% United Kingdom 17% Netherlands 37% Source: Rheinhessenwein e.v.
RHEINHESSEN VISITORS 2014 2015 Total: 907 871 950 965 Overnight stays: 1 502 222 1 538 274 Domestic: 78 % Foreign: 22 % Visitors come from - TOP 5 in 2015 1. USA 5. United Kingdom 2. The Netherlands 4. China 3. Switzerland
RHEINHESSEN Accommodation 2014 2015 Hotels: 189 187 Beds: 9 406 10 174 Private accommodation: 156 193 Beds: 684 717 Others: 10 11 Beds: 644 650 Ø Gross Revenue (million ): 911,7 Ø Employment (jobs): 14.310
Development of visitors and overnight stays in Rheinhessen (in businesses with ten or more beds incl. Campsites) Overnight stays Visitors
RHEINHESSEN Tourism in Rheinhessen - development The development of the number of visitors in Rheinhessen constantly rising. The number of visitors with 950.965 increased by 4,7 % compared to the preceding year and surpassed the national average. The number of overnight stays rose by 2,4 % to 1.538.274 Compared to the last 10 years, Rheinhessen has gained 25,1 % in overnight stays and 36,1 % in visitors and is one of the most dynamic tourist regions in Rhineland-Palatinate and among other German wine-growing regions. (source: Statistical Office, statistical reports).
ARGENTINA MENDOZA
MENDOZA AREA 4 main subregions: CITY OF MENDOZA Northeastern Central Southern Uco Valley
MENDOZA SURFACE & PRODUCTION 2015 2016 Acreage: 159 649 ha 158 584 ha Total wine production: 10 289 554 hl 7 609 252 hl Ø Yield: 65 hl/ha 48 hl/ha WINE ESTATES 2 179 2 155 (including winegrower, cooperatives, wineries and grape growers)
MENDOZA VARIETIES 2016 TOTAL: 158 584 ha 83 % RED/ROSÉ : 131 617 ha 17 % WHITE: 26 967 ha Chardonnay 5.140 ha 3% Pedro Gimenez 8.640 ha 6% Criolla Grande 15.097 ha 10% Torrontes Riojano 3.744 ha 2% Other White 9.444 ha 6% Malbec 34.672 ha 22% Bornada 16.002 ha 10% Cereza 16.077 ha 10% Other Red/Rosé 38.028 ha 24% Cabernet Sauvignon 11.742 ha 7%
ARGENTINA EXPORT 2016 EXPORT: 2 257 971 hl DOMESTIC: 7 181 987 hl Others 36% USA 32% Netherlands 5% Brasil 6% Canada 8% United Kingdom 13%
MENDOZA AREA VISITORS 2014 2015 Total: 3 081 721 3 123 631 Overnight stays: 5,3 mio. 5,8 mio. Leisure (from total): 96,8 % 96,6 % Business (from total): 3,2 % 3,4 % Domestic (from total): 2 355 475 2 431 713 Foreign (from total): 726 246 691 918 Foreign visitors from Chile 317 974 321 678 Rest of world 408 272 370 240
MENDOZA AREA Accommodation 2014 2015 Hotels: 143 145 Rooms / hotels: 5 370 5 404 Bed & Breakfast: 1 1 Other Accomodation: 695 706 Rooms / other accomodation 7 494 7 476 Ø Global Tourist spending (million ) 1 049 066 350 1 301 889 267
MENDOZA AREA Visitors typology 2015 67 % Family 3 % Others 19% Friends 12 % Single
PORTUGAL DOURO VINHO VERDE
VINHO VERDE AREA PORTO VINHO VERDE DOURO 9 subregions: Amarante Ave Balão Basto Cávado Ponte de Lima Moncão / Melagaco Paiva Sousa
VINHO VERDE SURFACE & PRODUCTION 2014 Acreage: Total wine production: Ø Yield: 21 000 ha 687 602 hl 33 hl / ha WINE COMPANIES 19 007 (including wine-growers, estate wineries, cooperatives, wineries and grape growers)
VINHO VERDE VARIETIES 2014 TOTAL: 21 000 ha RED / ROSÉ: 6 155 ha WHITE: 14 590 ha Avesso 520 ha 2% Azal 890 ha 4% Other White 5 123 ha 25% Vinhao 1 997 ha 10% Espadeiro 172 ha 1% Borracal 108 ha 0% Padeiro 80 ha 0% Other Red/Rosé 3 798 ha 18% Trajadura 993 ha 5% Alvarinho 1 790 ha 9% Arinto/Pederna 2 053 ha 10% Loureiro 3 221 ha 16%
VINHO VERDE- EXPORT 2014 68 % DOMESTIC: 464 704 hl 32 % EXPORT: 222 898 hl Others 30% USA 21% VINHO VERDE DOURO Switzerland 6% Brazil 6% Canada 6% France 11% Germany 22%
DOURO AREA 3 subregions: Baixo Corgo Cima Corgo Douro Superior VINHO VERDE PORTO DOURO
DOURO SURFACE & PRODUCTION 2014 2015 Acreage: 43 818 ha 43 659 ha Total wine production: 1 404 128 hl 1 606 776 hl Ø Yield: 32 hl/ha 37 hl/ha WINE COMPANIES 2015 22 228 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: IVDP
DOURO VARIETIES - 2015 TOTAL: 43 659 ha RED / ROSE : 27 551 ha WHITE: 8 929 ha OTHERS: 7 179 ha Malvasia Fina 1 579 4% Rabigato 1 345 3% Others 12 612 29% Touriga Franca 9 598 22% Tinta Roriz 5 695 13% Source: IVDP Codega 1 983 4% Marufo 1 281 3% Touriga Nacional 3 346 8% Tinta Amarela 1 810 4% Tinta Barroca 4 410 10%
DOURO / PORTO -EXPORT 2015 DOMESTIC: 375 268 hl EXPORT: 787 786 hl Others 28% France 27% VINHO VERDE DOURO USA 6% Belgium 12% United Kingdom 13% Netherlands 14%
PORTO AREA VISITORS 2014 2015 Total: 1 144 376 1 287 725 Overnight stays: 2 246 244 2 515 659 Domestic (from total): 34 % 33 % Foreign (from total): 66 % 67 % VINHO VERDE Visitors come from - TOP 5 in 2015 1. Spain 5. United Kingdom DOURO 4. Germany 2. France 3. Brasil
PORTO AREA Accommodation 2014 2015 Hotels: 70 73 Rooms / hotels: 5 120 5 396 Bed & Breakfast: 63 80 VINHO VERDE (officially registered) Other Accomodation: 490 1 110 DOURO
PORTO AREA Visitors typology 51 % Men 49 % Women VINHO VERDE 78 % between 19 and 50 years 36 % under 30 years Over 50 % couples DOURO 55 % under 40 years
ITALY VERONA
Verona - AREA 5 DOCG VERONA Amarone della Valpolicella Bardolino Superiore Recioto della Valpolicella Recioto di Soave Soave Superiore 14 DOC Arcole Bardonlino Custoza Garda Lessini Durello Lugana Merlara Monti Lessini San Martino della Battaglia Soave Valdadige Terradeiforti Valdadige Valpolicella Ripasso Valpolicella
VERONA SURFACE & PRODUCTION 2015 Acreage: Ø Total wine production: Ø Yield: 27 630 ha 3 099 534 hl 112 hl/ha WINE ESTATES 2016 2015 Producer: 8000 7 991 Wineries: > 500?
VERONA - SALES EXPORT BY COUNTRY TOP 5 (in value) Germany 21% Others 37% United Kingdom 14% Switzerland 6% Canada 9% USA 13%
CALIFORNIA NAPA VALLEY
NAPA VALLEY AREA 16 subregions 76 km SAN FRANCISCO Atlas Peak Calistoga Chiles Valley Coombsville Diamond Mountain Howell Mountain Los Carneros Mt. Veeder Oak Knoll Oakville Valley Rutherford St. Helena Spring Mountain Stags Leap Yountville Wild Horse Valley
NAPA VALLEY SURFACE & PRODUCTION 2014 2015 ACREAGE 18 365 ha 18 417 WINE COMPANIES 530 518 PRODUCTION 105 020 hl (estimate)
NAPA VALLEY VARIETIES 2015 TOTAL: 18 417 ha 77% RED: 14 189 ha 23% WHITE: 4 228 ha Other Red 2 422 ha 13% Chardonnay 2 720 ha 15% Sauvignon Blanc 1 162 ha 6% Other White 346 ha 2% Pinot Noir 1 160 ha 6% Source: NapaCounty 2013 Report Merlot 1 956 ha 11% Cabernet Sauvignon 8 651 ha 47%
NAPA VALLEY VISITORS 2014 Total: 2.7 million Leisure: 2.5 million 93 % Business: 189 000 7 % Domestic: 88% Foreign: 12% Visitors com from - TOP 5 1. Canada 5. Australia 2. China 4. Japan 3. United Kingdom
NAPA VALLEY Accommodation 2014 Hotels: 55 Rooms/hotels: 4 625 Bed & breakfast: 65 Rooms/b&b: 463 Total rooms: 5 088 Ø Global Tourist spending (billion) $ 1.63 Ø Employment (jobs) 11 776
CHILE CASABLANCA VALLEY
CASABLANCA VALLEY AREA VALPARAISO
CASABLANCA VALLEY SURFACE & PRODUCTION 2014 Acreage: Total wine production: Ø Yield: 5 766 ha 382 754 hl 66 hl/ha WINE COMPANIES 154 (including wine-growers, estate wineries, cooperatives, wineries and grape growers)
CASABLANCA VALLEY VARIETIES 2014 TOTAL: 5 766 ha 74 % RED: 1 530 ha 26 % WHITE: 4 236 ha Chardonnay 1 640 ha 29% Other White 222 ha 4% Pinot Noir 994 ha 17% Merlot 311 ha 5% Syrah 186 ha 3% Sauvignon Blanc 2 374 ha 41% Other Red 39 ha 1%
CASABLANCA VALLEY EXPORT 2014 DOMESTIC: 71 882 hl EXPORT: 310 872 hl Others 12% USA 20% China 12% Brazil 10% United Kingdom 20% Japan 14% Netherlands 12%
MIDTERM MEETING 2017 INTERNATI L WINE MARKET REVIEW Annual General Meeting November 2017 OTTO SCHÄTZEL Valparaiso Casablanca Valley DLR OPPENHEIM, GERMANY