GREAT WINE CAPITALS RESEARCH ANNUAL GENERAL MEETING 2016 INTERNATIONAL WINE MARKET REVIEW OTTO SCHÄTZEL DLR OPPENHEIM, GERMANY OVERVIEW I. INTERNATIONAL WINE MARKET ACREAGE GLOBAL WINE PRODUCTION GLOBAL WINE CONSUMPTION WINE MARKET II. FACTS ABOUT GWC WINE GROWING AREAS ADELAIDE SOUTH AUSTRALIA BILBAO RIOJA BORDEAUX BORDEAUX CAPE TOWN CAPE WINELANDS MAINZ RHEINHESSEN MENDOZA MENDOZA PORTO VINHO VERDE DOURO SAN FRANCISCO NAPA VALLEY VALPARAISO CASABLANCA VALLEY III. RESULTS AND ACTION POINTS 1
WORLD SURFACE UNDER VINES 2014: Total 7 541 000 ha 2015: Total 7 534 000 ha Since 2000 the world s total vineyard surface area is decreasing, mainly due to the reduction of European vineyards. Source: OIV WORLD ACREAGE UNDER VINE TOP 13 TOTAL ACREAGE 2015 : 7 534 000 ha Spain China France Italy USA Argentina Portugal Chile Romania Australia South Africa Greece Germany 225 217 211 192 149 130 110 102 419 830 786 682 1 000 ha 1 021 Source: OIV 2
1000 ha 1000 ha Acreage (1 000 ha) Acreage (1 000 ha) 04.11.2016 DEVELOPMENT ACREAGE UNDER VINE IN EUROPE 1400 1200 1000 800 600 400 200 0 Spain France Italy Portugal Romania Greece Germany Source: OIV (selection) DEVELOPMENT ACREAGE UNDER VINE OUTSIDE EUROPE 450 400 350 300 250 Argentina Chile Australia South Africa 200 USA 150 New Zealand 100 50 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Source: OIV (selection) 3
mhl 04.11.2016 WORLD SURFACE UNDER VINE Total world area under vines in 2015: 7 534 000 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 Currently European acreage quite stable at 3 326 000 ha Very strong increase of Chinese vineyards Slight increase in Argentina, Chile and New Zealand GLOBAL PRODUCTION / CONSUMPTION 340 334 production consumption 320 300 286 280 296 289 274 17 mhl overproduction 260 258 260 240 243 220 225 200 2016** 2014 2012 2010 2008 2006 2004 2002 2000 1998 1991-1995 1981-1985 1971-1975 Source: OIV 2016 / **forceast mhl = millions of hl 4
GLOBAL WINE PRODUCTION 2014: total 271 mhl 2015: total 274 mhl 2016 forecast: 260 mhl 2016 world wine production decreased by almost 15mhl compared with 2015 production. This global wine production is among one of the lowest over the last 20 year. Source: OIV mhl = millions of hl 2015: total 259 mhl GLOBAL WINE PRODUCTION 2015 Italy Fance 49500 47500 Spain 37200 USA 22140 Argentina Chile Australia South Africa China 13358 12870 11900 11200 11000 1000 hl 1000 hl Source: OIV Germany 8900 5
1 000 hl 04.11.2016 CONSUMPTION EXAMPLES 2015: Global Consumption total: 239 mhl 40000 35000 30000 25000 20000 15000 10000 5000 USA France Germany Italy China United Kingdom Argentina Spain Russian Federation 0 Australia 2015* 2014* 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Source: OIV PRODUCTION AND CONSUMPTION Global wine production in 2016: 259 million hl 2016 world wine production among the lowest in 20 years Global wine consumption 2016: 243,2 million hl Changes in consumption market shares demonstrate that growing markets are countries in North America and Asia Traditional wine consumer countries recorded a reduction in their share of the global market Worldwide production is higher than consumption After global economic crisis there has been no real recovery 6
EXPORT / IMPORT In 2015, the global market should reach (104.3 mhl) in terms of volume an increase of 1,8 % compared with 2014 In terms of value, there was a rise of 10,6 % / 2014 (28.3 bn ) Major exporting countries: 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. Source: OIV GWC WORLD MAP 7
GREAT WINE CAPITALS ACREAGE 2015 in ha Total 2014: 551 472 ha Mendoza* Bordeaux Cape Winelands* Vinho Verde / Douro* Rioja South Australia Rheinhessen Nappa Valley Casablanca* *2014 64 818 ha 61 870 ha 54 568 ha 26 578 ha 18 417 ha 5 766 ha 111 146 ha 99 680 ha 160 983 ha Napa: + 52 ha Rheinhessen: + 15 ha Rioja: + 235 ha Bordeaux: - 14 ha GREAT WINE CAPITALS COVERAGE 2014 7% Rest of the world Countries within GWC GWC 34% 59% 8
GREAT WINE CAPITALS PRODUCTION 2014 Total: 36 875 000 hl World production 2015: 274 mhl Cape Winelands Mendoza Bordeaux Rioja Rheinhessen Douro/ Vino Verde Nappa Valley Casablanca 2534 2272 2050 1102 383 5275 11720 11539 1 000 hl GWC WORLD MAP 9
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 10
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 73 % RED 27 % WHITE TOTAL: 74684 ha RED: 54 568 ha / WHITE: 20 116 ha Grenache 1693 3% Merlot 4068 7% Cabernet Sauvignon 17279 32% Pinot Noir 1673 3% Other Red 3171 6% Shiraz 26684 49% Semillon 1.095 ha 6% Sauvignon Blanc 2.502 ha 12% Muscat Gordo Blanco 1.038 ha 5% Other White 3.638 ha 18% Riesling 2.564 ha 13% Chardonnay 9.279 ha 46% 11
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 12
SOUTH AUSTRALIA Visitors come from - TOP 5 1. United Kingdom 4. China 2. New Zealand 5. Germany 3. USA SPAIN RIOJA 13
RIOJA - AREA BILBAO 3 subregions: Rioja Alta Rioja Baja Rioja Alavesa RIOJA SURFACE & PRODUCTION 2013 2015 Acreage DOCa (certified): 63 137 ha 64 562 ha Total wine production: 2 534 413 hl 2 988 310 hl Ø Yield: 40 hl/ha 46 hl/ha WINE COMPANIES 17 299 17 285 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: Consejo Regulador DOCa Rioja, Statistics 2013 14
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% Source: Consejo Regulador DOCa Rioja, Statistics 2015 RIOJA - SALES 2015 SALES BY CATEGORY TOTAL: 284 022 800 l EXPORT: 106 612 800 l Export by country DOMESTIC: 177 410 000 l Others 30% United Kingdom 35% The Netherlands 3% Switzerland 6% United States 9% Germany 17% Source: Consejo Regulador DOCa Rioja, Statistics 2015 15
RIOJA - SALES EXPORT Export to Great Britain increased from 327 938 hl in 2013 to 368 091 hl in 2015. Export in all other countries slightly decreased. Source: Consejo Regulador DOCa Rioja, Statistics 2015 FRANCE BORDEAUX 16
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 / Dounanes FR 17
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% 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% Source: CIVB BORDEAUX SALES - 2014 TOTAL PRODUCTION: 5 274 593 hl DOMESTIC: 2 888 863 hl EXPORT: 2 091 935 hl Export 42% Domestic 58% Source: CIVB 18
TOTAL Production: 5 450 000 hl Export: 2 060 000 hl Domestic: 2 820 000 hl BORDEAUX - SALES 2015 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 19
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 20
SOUTH AFRICA CAPE WINELANDS CAPE WINELANDS - AREA 6 subregions: Breede River Valley Cape South Coast Coastal Region Klein Karoo Olifants River Boberg CAPE TOWN Western Cape Cape Winelands? 21
CAPE WINELANDS SURFACE & PRODUCTION 2013 (total South Africa) Acreage: Total wine production: Ø Yield: 99 680 ha 11 569 076 hl 116 hl/ha WINE COMPANIES 3 866 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: Sawis Statistics 2014 CAPE WINELANDS VARIETIES 2013 TOTAL: 99 680 ha 45% RED: 45 217 ha 55% WHITE: 54 463 ha Source: Sawis Statistics 2014 Sauvignon Blanc 9 321 ha 9% Chardonnay 7 665 ha 8% Colombard 11 696 ha 12% Chenin Blanc 17 890 ha 18% Other White 7 891 ha 8% Cabernet Sauvignon 11 658 ha 12% Shiraz 10 509 ha 10% Pinotage 7 196 ha 7% Merlot 6 183 ha 6% Other Red 9 671 ha 10% 22
SOUTH AFRICA SALES 2014 DOMESTIC: EXPORT: 3 928 129 hl 4 227 071 hl Export 52% Domestic 48% Source: Sawis Statistics 2014 SOUTH AFRICA EXPORT 2014 EXPORT: 4 227 071 hl BY COUNTRY: TOP 6 Others 32% United Kingdom 26% Netherlands 5% Sweden 6% France 6% Russia 6% Germany 19% Source: Sawis Statistics 2014 23
GERMANY RHEINHESSEN RHEINHESSEN AREA MAINZ 24
RHEINHESSEN SURFACE & PRODUCTION 2015 Acreage: 25 753ha Total wine production: 2 495 297 hl Ø Yield: 97 hl/ha WINE COMPANIES 2013 2 856 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: Rheinhessenwein e.v. TOTAL: 26 578 ha 30% RED: ha 70% WHITE: ha RHEINHESSEN VARIETIES 2015 Other White 7546 28% Dornfelder 3427 13% Spätburgunder 1458 5% Other Red 3060 12% Source: Stat. Landesamt RLP Silvaner 2320 9% Müller-Thurgau 4320 16% Riesling 4447 17% 25
RHEINHESSEN EXPORT 2013 EXPORT: 370 000 hl BY COUNTRY: TOP 5 Others 34% The Netherlands 25% Source: Rheinhessenwein e.v. France 6% United Kingdom 9% Russia 11% USA 15% 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 26
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 27
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). Visitors and overnight stays over the course of the years 2015 28
ARGENTINA MENDOZA MENDOZA AREA 4 main subregions: CITY OF MENDOZA Northeastern Central Southern Uco Valley 29
MENDOZA SURFACE & PRODUCTION 2014 Acreage: Total wine production: Ø Yield: 160 983 ha 11 538 829 hl 72 hl/ha WINE ESTATES 2013 12 175 (including winegrower, estate wineries, cooperatives, wineries and grape growers) Source: Instituto Nacional de Vitivinicultura (INV) TOTAL: 160 983 ha 84 % RED/ROSÉ : 132 923 ha 16 % WHITE: 28 044 ha MENDOZA VARIETIES 2014 Pedro Giménez 9.029 ha 6% Chardonnay 5.270 ha 3% Criolla Grande 15.793 ha 10% Torrontés Riojano 3.730 ha 2% Cereza 16.608 ha 10% Source: Instituto Nacional de Vitivinicultura (INV) Other White 10.015 ha 6% Other Red/Rosé 38.907 ha 24% Malbec 33.312 ha 21% Bornada 16.164 ha 10% Cabernet Sauvignon 12.138 ha 8% 30
ARGENTINA EXPORT 2014 EXPORT: 2 248 224 hl The Netherlands 6% Others 7% Brazil 8% United Kingdom 12% USA 53% Canada 14% Source: Instituto Nacional de Vitivinicultura (INV) PORTUGAL DOURO VINHO VERDE 31
VINHO VERDE AREA 9 subregions: VINHO VERDE Amarante Ave Balão Basto Cávado Ponte de Lima Moncão / Melagaco Paiva Sousa PORTO DOURO VINHO VERDE SURFACE & PRODUCTION 2014 Acreage: 21 000 ha Total wine production: 687 602 hl Ø Yield: 33 hl / ha WINE COMPANIES 19 007 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) 32
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% 33
DOURO AREA 3 subregions: Baixo Corgo Cima Corgo Douro Superior VINHO VERDE PORTO DOURO DOURO SURFACE & PRODUCTION 2013 2014 Acreage: 44 005 ha 43 818 ha Total wine production: 1 362 619 hl Ø Yield: 31 hl/ha WINE COMPANIES 2014 25 413 (including wine-growers, estate wineries, cooperatives, wineries and grape growers) Source: IVDP 34
TOTAL: 44 005 ha RED: 27 420 ha WHITE: 5 843 ha OTHERS: 10 743 ha DOURO VARIETIES - 2013 Rabigato 1 354 3% Malvasia Fina 1 754 4% Others 10 743 24% Touriga Franca 10 030 23% Tinta Roriz 5 828 13% Source: IVDP Codega 2 735 6% Marufo 1 904 4% Touriga Nacional 1 996 5% Tinta Barroca 5 246 Tinta Amarela 12% 2 416 6% DOURO / PORTO - EXPORT 2014 DOMESTIC: 289 561 hl EXPORT: 790 188 hl VINHO VERDE Others 34% France 28% DOURO Belgium 12% United Kingdom 12% Netherlands 14% 35
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 36
NAPA VALLEY SURFACE & PRODUCTION 2014 ACREAGE 18 365 ha WINE COMPANIES 530 PRODUCTION 1 105 020 hl (estimate) TOTAL: 18 417 ha 77% RED: 14 189 ha 23% WHITE: 4 228 ha NAPA VALLEY VARIETIES 2015 Pinot Noir 1 160 ha 6% Other Red 2 422 ha 13% Chardonnay 2 720 ha 15% Sauvignon Blanc 1 162 ha 6% Other White 346 ha 2% Merlot 1 956 ha 11% Source: Napa County 2013 Report Cabernet Sauvignon 8 651 ha 47% 37
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 5. Australia 1. Canada 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 38
CHILE CASABLANCA VALLEY CASABLANCA VALLEY AREA VALPARAISO 39
CASABLANCA VALLEY SURFACE & PRODUCTION 2014 Acreage: 5 766 ha Total wine production: 382 754 hl Ø Yield: 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% 40
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% GREAT WINE CAPITALS RESEARCH Thank you! 41