Important Gains in Shrinking Markets Ensure Success
Austrian Wine Wins in Times of Crisis
(AWMB, December 2009) - Over the past year, Austrian wine was very successful despite the economic crisis. In fact, the growth that defined the previous few years continued in 2009, especially in the food retail trade. Market shares increased further, culminating in an excellent result. While the total of exported Austrian goods decreased by almost a sixth in 2009, Austrian wine exports rose throughout the year, gaining market share especially in shrinking markets - even though, in general, lower priced products were sold in all price segments.
This development was influenced partly by the big harvest in 2008. However, the 2009 vintage – with 2.3 million hectoliters currently estimated by Statistik Austria – yielded one of the smallest harvests of the last ten years. Josef Pleil, president of the Austrian Viniculture Association, predicts that the final harvest yield actually will be even smaller, approximately 2.1 million hl.
Regarding origin-typical and DAC (Districtus Austriae Controllatus) wines, even more areas have joined in. Leithaberg dac and Eisenberg dac will be available on the market in 2010.
Market Share Growth in Shrinking Markets Guarantee Stable Export Results
Austrian wine exports in 2009 were highly satisfactory. The first projection of 65 million liters (based on data from Oct – Dec 2008 and Jan – Sept 2009) reflects a hefty 8.3 % increase. Moreover, in terms of export value, the record € 112 million that had been set in the previous year was nearly reached again (- 0.8 %).
"One reason for the increase is the big harvest of 2008, which brought higher barrel wine exports in the following year,” explains Willi Klinger, general manager of the Austrian Wine Marketing Board. “Another reason is that, in general, lower price segments were preferred.” With this, the value of bottled wine exports, which represented nearly 87% of the total export value, was close to the impressive 2008 level (volume -1.1%; value -1.4%). Also, the highest-ever average per bottle price of € 2.58 established in 2008 was almost maintained in 2009.
The crucial factor for the development was the positive growth in Austria’s two most important wine export countries, Germany and Switzerland. The volume of Austrian wine exports to Germany increased considerably, by 8.4%, with the export value increasing as well, by 2.3%.
With this, Austria has in Germany - one of the world’s biggest wine import and consumption markets - a 3.4% market share. For white wine there, Austria ranks third, behind Germany and Italy (and for the first time, ahead of France!) with 6.4%. This is particularly remarkable, as Germany’s total wine imports actually dropped between January and September (- 2% volume; - 6.7% value).
In Switzerland, Austrian wine had a significant increase in export volume of 17.3%, while the export value remained very stable (+0.8%). Also in Switzerland, while the trend towards more favorably priced wines rose, the average price per liter is still a very positive € 4.6.
Because of the continuing weakness of the US dollar, the economic crisis and liquidity problems of some important trade partners, the painful drop in wine exports to the USA during the first half of 2009 could not be totally compensated for during the second half. However, growth is expected again in 2010.
For the First Time - DAC Export Success
The positive export results, especially in Germany, can be attributed to the successful positioning of wines with denomination of origin (DAC). Activities in the food retail trade, in which significant amounts of white denomination of origin wines are sold, will over the long term lead to a further improved image via a more focused profile.
Because of the new regulation for establishing Leithaberg dac (adopted in the Fall of 2009), the number of denomination of origin areas, which feature wines defined by a clear taste profile (DAC), now total six. Moreover, the application of the Südburgenland for Eisenberg dac status already has been approved by the Nationalen Weinkomitee (National Wine Committee) and now can be signed by Federal Minister Nikolaus Berlakovich. Under this designation, fruity, minerally and spicy Blaufränkisch wines in two categories will come on the market this year. Also expected this year is the introduction of a Reserve category for Weinviertel dac wines.
Download:
Chart: Bottled Wine - Stable Despite Crisis: 2000-2009 (jpg, 300 dpi, 557 kB)
Chart: Wine Export Crisis-Proof: 1985-2008/2009 (jpg, 300 dpi, 1,1 MB)
Austrian Wine Exports 2000-2009 (pdf, 48 kB)
Further Information:
>> Further information and photos are available in German
Press information, December 2009
AWMB, Susanne Staggl
Tel.: +43 1 503 92 67
Fax: +43 1 503 92 68
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