Category: Wine Economics

Institute of Masters of Wine Webinar: Climate Change & Global Wine Trade – February 17th, 2021

The Institute of Masters of Wine is continuing its webinar series next Wednesday February 17, 2021 with a session on “The Impact of Climate Change on the Global Wine Trade.”

This webinar will examine the impact of climate change from vine to glass with leading experts climatologist Dr Greg Jones, economist Mike Veseth and CEO of Wine Intelligence Lulie Halstead sharing their views in a discussion covering the impact on growing grapes and wine quality, trade and distribution and on wine consumers. 

Climate change is having an impact on wine production. Increasing temperatures affect vine phenology with reduced winter dormancy, and earlier physiological ripening. They also affect the spread of disease and pests. Climate change is leading to more frequent and more extreme, extreme weather events with increased drought conditions and wildfires in regions such as Australia, California, Spain and South Africa, spring frosts and more violent storms leading to flooding. This means greater variation in quantities of wines produced from one year to the next with increased volatility in wine prices. Climate change imperils the smooth flow of goods as transport infrastructure and ports are vulnerable. Wine consumers are increasingly concerned about climate change and are becoming more demanding in terms of wanting to know what goes into the products they buy and how they are made. This discussion will cover each of the aspects across the entire global wine supply chain.

The event will be moderated by Jane Masters MW and there will be an opportunity for attendees to ask questions.

The panel includes:

Dr Greg Jones – Chair, Evenstad Center for Wine Education / Wine Studies
Lulie Halstead – CEO Wine Intelligence
Jane Masters MW (moderator) – view MW profile
Mike Veseth – Wine Economist, Professor emeritus of International Political Economy at the University of Puget Sound (Tacoma, Washington)

This webinar is open to everyone, but capacity is limited. Follow this link to register.

Wine News: Bourgogne wines held up on the International Market in 2020

BIVB has announced their 2020 export report –  After a very good November in terms of volumes, exports of Bourgogne wines over the first 11 months of 2020 were slightly higher than over the same period in 2019 (up 0.5%), confirming a trend already witnessed in October. Revenue was also close to the record level seen in 2019, down just 2.6% by the end of November, having recovered from being down 9% just a month previously.

However, these figures should be set within a sluggish economy, impacted by both COVID and the 25% Boeing/Airbus tax, which severely penalized sales to the United States, down 14% by volume and 21% in terms of revenue, representing a loss of some €44 million. However, with volumes up 16% equating to 2.2 million bottles, the British market almost entirely offset the loss in volumes from the United States and once again became the leading export destination for Bourgogne wines.

Several territories saw big upticks in numbers, like Sweden, up 18.4% by volume and 14.2% in terms of revenue compared to the same period in 2019, and Denmark, up 24% by volume and 25.6% for revenue. Others enjoyed more moderate growth but for big volumes, like Canada (up 6.4% by volume and 6% in terms of revenue) and Belgium (1.2% and 5.5% respectively).

In France, Bourgogne wines grew their position in the retail sector, up 4.7% by volume and 5.7% in terms of revenue over the first 10 months of 2019, thanks in particular to their popularity in convenience stores and via click-and-collect. As yet, there is no data regarding the restaurant sector, which is in free-fall, or for wine stores that are enjoying a boom.

#winenews #wineeconomics #wineexports #frenchwine #Burgognewines #winesales #winemarketing #winelovers #wine #bivb #burgundy #winetrends

 

Vivino Raises $155 Million in Series D Funding

Vivino, the world’s most downloaded mobile wine app and largest online wine marketplace closed (this week) a $155m Series D funding round led by Swedish based investment firm Kinnevik with Sprints Capital accompanying as a new investor. Additional participants include GP Bullhound and existing early-stage investor Creandum. This latest round brings Vivino’s total funds raised to date to $221 million and includes a mix of primary and secondary investment.

Vivino currently boasts a community of 50 million wine enthusiasts, who turn to the platform for its personalized recommendations, unbiased rating system, and expansive selection of wines from more than 700 marketplace partners worldwide. The new capital will enable Vivino to improve its core technology and artificial intelligence platform to create better and more personalized recommendations for Vivino users. The company will also deepen its focus on select markets with the greatest potential for growth, including the US, Germany, the UK, Italy, Japan, and Portugal.

“This is a testament to the remarkable work that our teams around the globe have done to build an extraordinary business,” said Heini Zachariassen, Vivino’s Founder and Chief Executive Officer. “This round has raised important capital for our rapidly growing company and drawn some exceptional new leaders to our board. The funding will enable us to continue to build on our core strengths, expand industry partnerships drawing more merchants and wineries to our marketplace, and support our continued global growth.”

Alcohol e-commerce sales worldwide have grown immensely, and it is estimated that by 2024, they will exceed $40 billion. Zachariassen credits the company’s growth to this continued shift in consumer behavior. “Our user retention rates are high, and we’re seeing a steady conversion of app users to wine buyers. That’s a good move in the right direction. By creating more value for our users, we also create more value for the company and industry at large.”

Since its Series C raise in February 2018, led by Vivino’s current board chairman, Christophe Navarre and former CEO and Chairman of Moët Hennessy, Vivino has increased its user base from 29 million to 50 million and has significantly grown its marketplace business, which connects wineries and wine merchants to its community. The company has posted a 100% annual growth rate for the last seven years and a 103% increase in year-over-year sales in 2020.

#vivino #vivinonews #winenews #ecommerce #winemarketing #winesales #consumerbehavior #AI #mobleapp #economics #winebusiness #winelovers #winelover #wine #wineapp #vivinoapp #winetrends #winetechnology

Wine Australia is launching a new global 24/7 virtual platform

Wine Australia is launching an (always-on) 24/7 virtual platform “Australian Wine Connect” in March which will bring the global wine community together to experience and explore Australia’s wine scene.

The interactive platform will be a go-to resource for Australian wine over the next twelve months. Featuring wineries from across 65 regions; connecting winemakers, buyers, importers, distributors, media, educators and more; and offering a diverse program of engaging events and experiences.

Australian Wine Connect will create a bold new world of opportunities for Australian wineries to promote their products across the UK, Europe, the US, Canada and Asian markets.

Wine Australia chief executive officer Andreas Clark said, “We’re proud to bring this same spirit of innovation to the way we do business and have been working hard to develop a valuable opportunity for Australian wineries to continue marketing and selling their wines overseas this year”.

“Australian Wine Connect has been designed to offer similar benefits to an international trade show, however it also enables wineries to reach and engage with multiple markets across the globe and it will be live and offering various virtual business opportunities for a full twelve months,” he said.

Clark said it will allow buyers from across the world to network and meet producers, discover new wines, link up with distributors and enable sales conversations. It will also offer ongoing live thought-leadership sessions, tasting sessions, variety and regional explorations to showcase the people, places and processes that make Australian wine unique.

Australian Wine Connect will go live on 31 March 2021 and registrations for the virtual showcase are now open to Australian wineries. Eligible wineries can apply for the Wine Export Grant to help cover the cost of participation.

The Australian wine community is renowned for its creativity in the pursuit of creating the most diverse and distinctive wines in the world.

The multi-faceted platform will host virtual events and collaboration tools to help wineries stay up to date in market and will promote Australian wine in a new and exciting way to raise awareness and increase demand amongst an international trade audience.

For further details, click here

The INAO approved six new grape varieties in Bordeaux

The Institut National de l’Origine et de la Qualité (INAO) has officially approved the use of six new varieties in Bordeaux, which were first proposed in 2019.

The French agricultural governing body has approved the use of four new red varieties, as follows: Arinarnoa, Castets, Marselan and Touriga Nacional, and two white varieties: Alvarinho and Liliorila; with plantings authorized for 2021.

The varieties were put forward by winemakers in the Bordeaux and Bordeaux Supérieur AOCs (not Pauillac and Margaux ) in the summer of 2019, as a potential means of dealing with different growth cycles and ripening periods, in the face of a changing climate.

Scientists in Bordeaux looked at fifty-two varieties for potential future use before settling on the final six which were considered particularly suitable for their ability to handle hydric stress and for being later ripening.

When plantings begin, the new varieties will be limited to just 5% of an estate’s total surface area and no more than 10% of the blend in either red or white.

These new varieties will sit alongside the already permitted varieties: Cabernet Sauvignon, Cabernet Franc, Merlot, Malbec, Carménère, Petit Verdot for red – and Sémillon, Sauvignon Blanc, Sauvignon Gris, Muscadelle, Colombard, Ugni Blanc, Merlot Blanc and Mauzac for white.