WINE MARKETING Greek wines in the German market Prof. Dr. Gergely Szolnoki Geisenheim University Professorship for Market Research Thessaloniki June 15, 2018
THE GERMAN WINE MARKET
Situation analysis 2016/17 at a glance 1 2 3 4 Vineyard area 102,000 ha Wine production 9,000,000 hl Wine market 20,000,000 hl Per capita consumption Ger. wine Imp. wine Spark. wine 9.1 l 11.8 l 3.5 l 24.4 l Export 1,000,000 hl Import 15,00,000 hl Reexport 2,800,000 hl Source: DWI 2018 3
Summary of the German wine market Germany is/has Nr. 1 by import 15-16 million hl Nr. 1 by sparkling wine consumption 3.5 per capita (l) Nr. 4 by total wine consumption 20.1 million hl Wine tax 0, only VAT No limitation in wine trade: liberal Source: Deutscher Weinbauverband 2018, Weinmarktbilanz 2018 4
1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Import total in volume and value 1950-2016 Volume (million hl) 20 18 16 Still wine and sparkling wine import Value 2.567 Value (million ) 3000 2500 14 12 10 15,179 Volume 2000 1500 8 6 1000 4 2 500 0 0 Wine import to Germany / volume Wine import to Germany / value Source: Stat. Bundesamt 2018 5
Volume hl Value /hl Import volume from Greece 2009-2017 160.000 140.000 120.000 100.000 195 190 185 180 175 80.000 60.000 40.000 20.000 170 165 160 155 150 145 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 140 Volume (hl) Value ( /hl) decreasing volume -> increasing value Source: Stat. Bundesamt 2018 6
Wine imports by country of origin 2015/2016 Source: DWI 2018, Deutscher Wein Statistik 7
1965 1970 74/75 79/80 84/85 89/90 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Consumption in volume by colour (still wine) 1995-2016 million hl 20 18 17,2 Wine total 16 14 12 10,8 Red wine 10 8 6 4 6,3 4,3 White wine German white wine 2 3,1 German red wine 0 Source: Deutscher Weinbauverband 2018, Weinmarktbilanz 2018 8
Beverage consumption in Germany 2008-2016 Source: DWI 2018, Deutsch Wein Statistik 9
Structure of retailers in Germany - 15,000 discounts - 11,000 supermarkets - 4,000 wine shops; 70 % individuals - 50,000 restaurants offer wine, 90 % individuals - 8,000 wine estates (direct marketing) - 111 wine cooperatives (direct marketing) - Large number of online shops Source: HGU, 2018 10
Average margins in the wine sales channels - Discounts 10-20 % - Supermarkets 25-35 % - Wine shops 35-50 % - Restaurants 70-100 % - Wholesale 15-25 %
price level Structure of retailers in Germany Wine stores Online stores Supermarkets Discounter wide of product range 12
CONSUMER BEHAVIOUR
Representative survey 2006, 2008, 2010, 2012, 2014, 2016, 2018 Representative sample 2.000 participants (69 million persons in Germany) Behavioural and lifestyle analyses of wine drinkers in Germany incl. sales channels
Consumption frequency Weighted by volume Wine consume frequency Frequency Percentage Representative for Wine consumption in year (l) Wine consumption of the group Percentage of consumption many times a week 120 6% 4.069.763 121 492.441.378 35% once a week 173 8% 5.872.204 65 381.693.259 27% 2-3 times a month 246 12% 8.344.966 36 300.418.779 21% once a month 204 10% 6.928.826 16 110.861.212 8% less than once a month 493 24% 16.714.341 7,0 117.000.385 8% never 806 39% 27.312.900 0 0 0% Sum 2043 100% 69.243.000 1.402.415.014 100% 14% of the wine drinkers consume 62% of the total volume
Introduction GERMAN WINE MARKET 20.1 million hl 9.0 billion
Structure of the German wine market Total wine market Still wine and sparkling wine Sparkling wine Still wine market offpremise and on-premise On-premise Still wine market retailers 0.3 1.9 Still wine 20.1 9.0 17.1 7.3 14.1 Off-premise 6.2 1.7 5,1 33,0 4.9 52,3 Sales channels /l hl % % Online 10.0 2% 4% 32,5 Cellar door 6.00 14% 19% million hl billion EUR 5.2 15,3 million hl billion EUR million hl billion EUR million hl billion EUR Wine shop 10.0 12% 26% Supermarket 3.80 35% 29% Discounter 2.60 37% 21% Source: Weinmarktbilanz 2018, DWI 2018, Schätzung der HGU
Segmentation based on usage of sales channels Consumption(l/year) 60 Average age over 65 years, average education and income level, in the region middle west 9% Cellar-door-customers 19% Multichannel-customers Rather middle age, high education and high income. 2.5 10.0 Average price ( /l) Younger, lower education level, a clearly higher proportion in the lower income category. 6% Wine-shop-customers Higher income, bigger cities Food-retail-customers 21% Discount-customers Younger, lower education level, a clearly higher proportion in the lower income category. 27% 18% Supermarket-customers Average of the population 20
Publication of the results 2015/2016 2018/2019 Wine Consumer Report Germany 2018/2019 https://www.hs-geisenheim.de
GREEK WINES IN THE GERMAN WINE MARKET
Greek wine German market
Greek wine German market 41 producers Online survey in Greece 2 wholesalers Qualitative interview Wiesbaden, Frankfurt 7 retailers Qualitative interviews Wiesbaden, Berlin, Mönchengladbach 212 consumers Online survey Germany
Summary of the study Consumers - Mainly in restaurants - Limited accessibility - Little to very little knowledge on Greek wines - Theoretical interest high - Mediocre image Retailers - Bad image - Promotion missing - Low expertise - Tendency to list Greek wines Wholesale - Selling mainly to restaurants - Bad image - No promotion from producers Producers - Bad image - Promotion below-average - Joint appearance
Sources Deutscher Weinbauverband e.v. (2018), Geschäftsbericht 2018. Deutsches Weininstitut (DWI) (2018), Deutscher Wein Statistik 2017/2018. Kalpaxidis, K. (2015), Analysis of the image and possibilities of the Greek wine in the German market. Master thesis, Vinifera program, Geisenheim University. Statistisches Bundesamt (2018), Statistik 2017/2018. Szolnoki, G. und Hoffmann, D. (2014), Neue Weinkundensegmentierung in Deutschland. GFHG-Verlag, Geisenheim. Weinmarktbilanz 2018 (2018), Deutscher Weinbauverband e.v. 24
Contact Prof. Dr. Gergely Szolnoki Department of Wine and Beverage Business Research Professorship for Market Research Geisenheim University Tel. +49 / 06722 502 394 Gergely.Szolnoki@hs-gm.de 25