Wine News ArchiveNext Bordeaux awardsUSA: suggestions to seduce the consumers On the occasion at the annual meeting organised the 10 and 11 July 2002 at Napa in California by wine Vision, the strategical development group from the American wine sector, professionals from all over the country debated orientations to take to integrate to the advantage the wine in the American culture. In this objective, a competion was lanced last spring, which permitted more than 400 publicity slogans destined to drive the place of wine in every day life. The four themes chosen-"Share the wine, savour the moment". "Drink your wine; love your life", "Me, you, wine, us" and "Uncork your life!" - These examples can be used by all professionals that wish to integrate themselves in their communication. China: the consumers appreciate the wine, especially the Chinese wine According to the results of a survey taken by WineMart, a new alcoholised drinks distribution centre in a Chinese village called Guangzhou, the buying and consuming of wine is wide spreading in more and more big Chinese towns, but essentially stick to their locale wine. The survey equally reveals that a big part of the consummation takes place during Chinese holidays and in spring. Amongst the people surveyed, 60% of them said to have already bought wine, notably Chinese. On average, they buy domestic wine 5.1 times a year, and imported products 2.4 times. In revenge, if the population devotes an average 38,40 RMB (4,7 USD) to the buying of a Chinese wine, that means that they are willing to spend almost as ten times more (357,40 RMB either 43,6 USD) on an imported wine. The wine consumers in China generally dispose of an important salary who come from the middle class, and are receptive to the sanitary benefits of wine. They also choose depending on the tastes and aromas, the mark and pricing. Other elements in the choice of product: its collection value, which means the wine itself or the packaging. The opening of the Chinese market to foreign wines should start accelerating thanks to the membership of china to the OMC. USA: Australia arrows upwards The American wine importation went up to 4, 7 million hectolitres in 2001, according to the figures published by the CFCE. This volume has gone up by 6, 5% according to the reports of the year before. Does the firing upwards of Australia last year mean that other countries present on the American market have lost ground: it's the case for Chilli, who have lost 2% in volume but still maintain their forth place, and Germany (-1,5%). Australia: improving the profitability of the small and medium sized companies Recently the federal Australian government have called in a company named ACIL Consulting to study the progress of the vitivinicole and advise them on eventual actions to strengthen on the long term the small and medium sized companies. When looking at Australia's enormous export success, it is only a few of the biggest companies that represent 10% of the 1 465 in the company's repertoires. California wine industry in grip of slump California's wine industry is in the midst of the worst slump for 10 years and as many as 200 wineries may go out of business, experts say. After a decade of massive growth, which saw California's wineries increase by 50%, the industry is facing a threefold threat in the form of a downturn in the economy, overproduction of grapes and cheap imports. A report by industry analysts AC Nielsen says holiday sales of California wines declined in nearly all categories for the first time since the 1991/2 recession. While grape prices are plummeting, the US market is full of cheaper wine from Australia, South Africa and South America. Analysts say the increase in California wineries from 600 to 900 over the past decade is part of the problem. The market cannot sustain that level of production and smaller wineries are going under, or being snapped up by major producers who can afford to keep prices down. As well as this, consumption patterns of baby boomers which grew wine sales by as much as 20% per year have levelled off, while the younger generation is not buying premium wines in the same quantities. One broker told Associated Press he thought as many as 200 wineries could go bust or be bought up. Joe Ciatti, one of California's largest bulk wine brokers said, 'We are going to lose scores of wineries to bankruptcy.' Another wholesaler, Fred Reno of the Henry wine Group said, 'The smaller wineries selling less than 20,000 cases a year don't have the ability to cut prices and stay profitable.' For the consumer there is good and bad news. wine will be cheaper but the high-quality 'hand-crafted' wines for which California is famous will become more scarce as big companies dominate. 'It's the coming homogenisation of the wine imdustry,' Kim Stare Wallace of Sonoma's Dry Creek Vineyard said. 'Small wineries will be grabbed by the big guys.' Wineries are already cutting back. Since last summer, Robert Mondavi Winery has 640ha of prime vineyard land for sale. Andy Bledsoe, vice president of winegrowing, told decanter.com the winery had suffered from oversupply. He warned growers at the time, 'If you call me to try to sell grapes, I'll try to sell some of our surplus to you.' Wine Institute of California spokeswoman Gladys Horiuchi said, 'The wine industry goes through cycles. In the mid-1990s we didn't have enough wine, and everyone planted. Now all those vineyards are coming into production just as there is a downturn in the economy. In five years time there will probably be a shortage again.' Australian yields 'down by half' as drought bites Growers in Australia's top viticultural regions face a 50% reduction in yields as severe droughts begin to bite. Across the state of Victoria the prolonged dry spell - which began in 1997 - has reached critical limits. Without vital reserves of moisture, yields are dramatically reduced. Growers must now decide how much of their grapes to cut off the vine before harvest in a bid to save the remaining crop. There is also a greater risk of frost caused by dry soils and clear cold nights, grape sunburn in the dry, hot weather, and damage by birds and other animals searching for alternative water supplies. 'We currently have wallabies and wild deer chewing up our vines and come harvest we expect extreme pressure from cockatoos, wattle birds, ravens and everything else,' Mount Langi Ghiran grower Damien Sheehan. The Pyrenees, Grampians, Strathbogie, Bendigo and Heathcote areas in central Victoria are at the heart of the drought but other regions across Australia are also taking precautionary measures to preserve vital water supplies, with the threat the drought could be even worse next year. Paul Greblo of Sandhurst Ridge winery, near Bendigo, said a drop in yields would not lead to price rises but some vineyards - including his own - could turn the drought to their advantage. 'In dry years the quality of the fruit is usually very, very good. Depending on how we market our finished produce, we could realise higher prices,' he said. Next Bordeaux awards The 47th wine Contest of Bordeaux will be held on Saturday 24th, May in Bordeaux. The competition should be hard due to an elitist selection. Only 25 to 30% of the wines presented are generally awarded medals. The results will be known less than 2 hours after the end of the tasting session. In 2002, 3 270 wines were tasted, tat is to say only 14% of the regional production, more than 1.3 million hectoliters and some 174 000 bottles! 807 wines were awarded: 174 Gold, 312 Silver and 321 Bronze medals. The birth of a new giant of the wine The Australian BRL Hardy and the American group Constellation Brands plan a merging, this financial operation would create the world #1 of the wine industry. On January 17th, the Administration Council of BRL Hardy accepted a purchase offer presented by Constellation Brands. The total amount of the operation should be nearly two billions of Australian dollars (approximately one billion of Euros). The merge of BRL Hardy, first producer of Australian wine and the wine branch of Constellation (also present in spirits and beer industry) within a new unit, Constellation Wines. This one will get a turnover of 1,6 billion of Euros, which will place it in front of the American Gallo. It will be #1 in Great Britain and Australia, #2 in the United States. However the merge needs to obtain the authorization of BRL Hardy shareholders and several authorities of trade regulation in Australia and in the United States. Mouton 2000's extraordinary bottle Chateau Mouton Rothschild 2000 vintage has been recently presented to the international wine press. Since 1945, French and foreign painters have been commissioned each year to design an unique label. But this outstanding vintage was an exception, the Augsburg Ram, a 16th century silver-gilt drinking vessel, has been reproduced on the bottle, making itself a collector's item. The glassmaker, the French BSN company developed specially for the project a new enamelling technique. 2002: A good vintage for the wines of Rioja The sales of Rioja wines clearly increased last year according to the trade union of this Spanish wine region. Between January and November 2002, volumes sold reached 227 million liters, 15% more than the same period in 2001. However the Spanish domestic market took the majority of the sales (71%). Nevertheless exports rose of 18% compared to the previous year. The red wines represent nearly 90% of volumes (203 million liters), followed by white wines (14 million liters) and rose (9 million liters). In 2001, the sales of the dynamic wines of Rioja rose from 38%. Alcohol and Health... some good news Whatever the beverage (red or white wines, beer), drinking regularity reduce the heart troubles for moderated drinkers. According to a survey published by The New England Newspaper of Medicine, men who drink alcohol three or four times a week are 32% less subjects to heart attacks compared to those who drink less than once a week. For those who drink five to seven times per week, the difference is 37%. On the other hand, person who drink more than two alcoholic beverages per day would draw more advantage for their health. The survey was carried out during 12 years with 38.000 old men from 40 to 75 years. California's wine industry in trouble California's wine industry is in the midst of the worst slump for 10 years and as many as 200 wineries may go out of business. While grape prices are plummeting, the US market is full of cheaper wine from Australia, South Africa and South America. The increase in California wineries from 600 to 900 over the past decade is part of the problem. As well as this, consumption patterns of baby boomers, which grew wine sales by as much as 20% per year, have levelled off. For the consumer there is good and bad news. wine will be cheaper but the high-quality hand-crafted wines for which California is famous will become more scarce as big companies dominate. However since last summer, Robert Mondavi Winery has 640 hectares of prime vineyard land for sale... China: a big market for... Chinese wine! According to a recent survey, wine purchases and consumption are increasing rapidly in big Chinese cities. In Guangdong province, the country's first permanent wine-and-spirits center has just opened. The WineMart is an impressive modern showplace located in Guangzhou (formerly Canton) which has a population of 6.7 million. However, Chinese people are still mainly focused on local production. Furthermore, polls show that chinese people only drink wines on great occasions like traditional holidays and celebrations. On the other hand, although they only spend around $5.00 for a local wine, they do not mind paying over $40.00 for an imported wine. Consumers are generally from the middle-class, earn quite a high income and pay attention to the recognized health benefits of drinking wine. The Chinese market should continue to open itself to exported wines regularly, even though the fictive minimum value which has to be declared at Chinese customs still hampers its development. What about Canada? Today the Canadian market for wines and spirits is strictly controled by a state monopoly. The liquor system is basically a series of government-run monopolies wherein provincial liquor boards buy the products and own and license the retail stores. However, things are moving positively. After British Columbia and Manitoba, private wine and liquor stores are about to open in a third canadian province, Nova Scotia, located East of the country. The number of these stores will be limited and controled by Nova Scotia Liquor Corp. but they will finally enable the population to have access to a wider range of products. Indeed, these retailers will only be authorized to sell other wines than those available in state stores. If this experience starting next September is successfull, there is high chance other shops will soon follow. SAB announces takeover of Miller South African Breweries recently agreed with Philip Morris to take over its brewery, Miller Brewing, for $5.2 billion dollars, while Philip Morris keeps a 36% stake in the new company. The deal will bring SABMiller to a second position in terms of world brewing volume, just behind Anheuser-Busch. The merge with the well-positioned American company will enable SAB to be more competitive on the world stage, while keeping its strong position on local emerging beer markets in Africa and Asia. This new situation is certainly going to force other beer majors into more consolidation and emerging market investment, thus transforming radically the current world brewing landscape. LVMH focused on prestigious spirits The French group LVMH - Louis Vuitton Moet Hennessy - has recently revealed his decision to acquire 40% of Millenium Import Company. Millenium Import Co. owns more than 50% of Zyrdardow, the Polish distillery which markets two prestigious Vodka brands: Belvedere and Chopin. This move will reinforce LVMH's position on this specific luxury spirit market as LVMH will get the exclusivity for the marketing of these brands in the world, except in North America. |
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