Category: Wine Economics

Drinks E-commerce to grow exponentially in three years – IWSR Report

The total value of the e-commerce sector in headline markets is expected to grow at an unprecedented rate between 2022-2025, according to IWSR.

Over the next five years e-commerce sales of alcohol across key global markets are predicted to expand by +66% to reach more than US$42 billion, according to a comprehensive strategic study published by IWSR Drinks Market Analysis.

Among the 16 focus markets examined in the IWSR report (Australia, Brazil, Canada, China, Colombia, France, Germany, Italy, Japan, Mexico, Netherlands, Nigeria, South Africa, Spain, the United Kingdom and the United States), e-commerce value increased by about +12% in 2019, and then by almost +43% in 2020 during the height of the pandemic.

The report states: “Looking ahead to 2025, e-commerce is projected to represent about 6% of all off-trade beverage alcohol volumes, compared to less than 2% in 2018. The greatest forecast e-commerce value growth will come from the US, thanks to average annual growth in the country of about +20%, which will see it become the top global market for online beverage alcohol.”

The newly released IWSR study also found that online business models for alcohol sales are becoming more diverse, leading consumers to increasingly shift between channels and retailers according to their specific needs at any given time.

“In general terms, the online beverage alcohol space can be perceived as two distinct, but overlapping, worlds: more ‘traditional’ e-commerce – often omnichannel or online specialists – accessed via websites and used by older consumers seeking good prices and known brands and who are prepared to wait for delivery; and more ‘modern’ app-driven e-commerce – often on-demand or marketplaces – used by younger legal drinking age consumers willing to pay for rapid delivery and looking for interesting/premium brands,” the report states.

Guy Wolfe, strategic insights manager, IWSR Drinks Market Analysis, commented: “Given the pandemic and overall changing consumer shopping behavior, it’s certainly not surprising that alcohol e-commerce is growing very quickly. But what’s interesting is to see the significant variations that have developed both across and within markets in how different consumer groups shop via e-commerce and what their priorities are.

“E-commerce has clearly become engrained for many consumers, cementing its place as the third sales channel for beverage alcohol purchase,” confirms Wolfe.

 

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“OIV must embrace the digital revolution to stay relevant” – Pau Roc, OIV Director General

 

Pau Roc, the Director General of OIV has alerted the global wine industry to quickly embrace the opportunities afforded by new technologies, in order to stay relevant in a fiercely competitive world.

Speaking at the recent inaugural symposium on the Digitalization of the Vine and Wine Sector, Pau Roca, Director General of the International Organisation of Vine and Wine, said “digital tools and data sciences are driving the most innovative changes seen in our lifetime, transforming societies and the world economy.”

Rau Roca continued: “It is important to be mindful that these new technologies will offer invaluable opportunities – they will transform viticultural analysis. In order to remain relevant to our stakeholders, we need to expand our influence, reach new horizons and enhance cooperation amongst the main actors.”

Roca further added that the OIV needed to accept “a paradigm shift” towards embracing digital innovations.

“The next generation of OIV experts will continue this work, building on the foundations we lay today,” said Roca.

The symposium brought together leading experts from the academia, governments, international organizations and the private sector from different countries: Dr Adriaan Oelofse the Research, Development & Innovation Manager at WINETECH who spoke about the concept of smart vineyards, the professor expert in Artificial intelligence Dr. Bernard Chen from the University of Arkansas, professor at the Comillas Pontifical University and Blockchain expert Dr.Javier Ibañez, Mr. Fabián Torres who is a Principal Consultant at SICPA and also an expert in Digital Transformation and Guidance, and Mr Olivier Oram, expert in Blockchain and founder of Chainvine, a business that helps to reduce the cost of trust in moving wine all over and around the world.

 

#wineindustry #winetrade #wine #instawine #winesymposium #oiv #digitalmarketing #digitalinnovation #vin #vine #vineyards #OIV #smartvineyards #winenews

Masseto, Ornellaia, Tenuta Luce and CastelGiocondo to open offices in Bordeaux       

The prestigious Tuscan estates and the first wine estates in Italy to make such an investment, Masseto, Ornellaia, Tenuta Luce and CastelGiocondo are opening representative offices in Bordeaux during the first quarter of 2022.  These new offices will be set-up for the purposes of strengthening their worldwide sales network, starting with the French stronghold of fine wines.

Masseto, in 2009, was the first Italian wine to be distributed through La Place de Bordeaux. Ornellaia followed suit in 2015. In the wake of their success, in 2019 Tenuta Luce and in 2021 CastelGiocondo Brunello also embraced the international distribution of La Place de Bordeaux. Since 2009, this choice has resulted in ever-increasing results. The Négociants boast a centuries-long history of the sale of fine wines at an international level.

“Making top-tier wines is not enough,” explains Giovanni Geddes da Filicaja, CEO of the Frescobaldi Group. “Knowing how to communicate this quality and choosing the perfect distribution is essential. By considering these years with La Place de Bordeaux as the first step and examining potential sales growth, it now seems logical for us to open a representative office in Bordeaux. Our goal is to strengthen our position by developing a deeper and more integrated relationship with the Négociants, no longer working from a distance, but in close contact with our partners.”

This new venture has been entrusted to Patrick Lachapèle, who will take on the role of Director of the representative office, returning to France after 16 years in Asia where he worked as the Asia-Pacific Export Manager for Baron Philippe de Rothschild and then as Director, Asia-Pacific, Middle East, Africa and South America for Ornellaia and Tenuta Luce. Patrick will work alongside the commercial directors of the four estates, which will remain individually managed.

Masseto wines are available to all markets through La Place de Bordeaux with the exception of Italy, United States and Canada where Masseto retains direct distribution. Ornellaia wines are available as well through La Place de Bordeaux with the exception of Europe, United States and Canada. In the case of Tenuta Luce, La Place de Bordeaux holds the distribution in Asia (with the exception of Japan), Africa and Middle East; meanwhile, CastelGiocondo is available with the Négociants in China only.

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Fine Wine’s Benchmark Index Sets a New Record

Fine wine prices have risen consistently over the past 17 months, the market’s most bullish period to date.

 The Liv-ex Fine Wine 100 index, which tracks the price performance of the 100 most sought-after fine wines on the secondary market, rose 2.2% in October to close at 372.44 – an all-time high.

This is according to a recent article from Liv-ex (the London International Vintners Exchange) titled ‘Fine wine’s benchmark index sets a new record’, which explores how and why the index has set a brand-new record in October.

The article looks at the history of the Liv-ex Fine Wine 100 index, which can be found on Bloomberg terminals. It was officially launched in December 2003 but backdated to July 2001, in its first two decades, it has increased 272.4%, survived three global financial crisis and returned more than the S&P 500.

With fine wine prices consistently rising over the last 17 months, the longest bullish period in the fine wine market to date, it indicates high investor confidence and a healthy market.

Liv-ex is the London-based global marketplace for the wine trade, where 550 fine wine businesses from around the world buy and sell wine. What happens on the exchange is a reliable indicator of the health of the secondary wine market.

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Beaujolais Nouveau Prices Increased by 50%

The Beaujolais Nouveau sales campaign got off to a flying start this week, taking negociants by surprise! The trade expects prices to be capped at 250 euros/hectolitre for Beaujolais Nouveau and €270 /hl for Beaujolais Villages Nouveau, one operation launched this year’s ‘blitzkrieg’ with prices of €300 /hl for Villages primeurs.

As co-operative wineries began selling their wines, the campaign remained firmly on track at these launch prices. Initial market price lists issued by the Beaujolais wine marketing board show that the prices of Primeurs are in excess of €280 /hl for Beaujolais Nouveau and €300 /hl for Villages, an increase of 50 % compared to the ceiling price of €190 /hl which led to winegrower demonstrations last year. After the frost and mildew, “the crop is small and there is nothing to panic about”, said David Ratignier, chairman of the producers’ organisation, in a bid to put the hikes into perspective. He claims that “prices are not skyrocketing but increasing due to a small crop (barely 35 hl/ha for Beaujolais and 30 hl/ha for Villages). Constrained yields are compounded by lack of inventory and record sales”.

Compared to last year’s downward pressure on pricing, Olivier Richard, secretary of the Greater Burgundy wine brokers’ organization, claims “we’re going from one extreme to the other. I’ve never seen anything like it – a quota system for Primeurs. There are so few wines and so few unspoken-for volumes that even if the trade is reluctant to pay the prices, the ball is in the court of the winegrowers”.

 

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