Category: Wine Economics

WineGB Releases its 2023 Industry Report

Last week Wine GB released its 2023 Industry Report, which includes the latest data from producers and figures supplied by Wine Standards.

Here are some key findings:

  • Plantings continue to grow – there are currently just under 4,000ha under vine, with forecasts predicting an increase to 7,600ha by 2032;
  • In terms of production, the mid-range prediction is that production will reach 25 to 29 million bottles by 2032;
  • Wine remains one of the fastest-growing agricultural sectors in Britain;
  • In 2022, total production was 12.2 million bottles: 68% sparkling, and 32% still;
  • Sales channels and distribution in 2022 include:
  • On trade has increased– 22% (from 14%)
  • Exports up from 4% to 7%
  • Off-trade up to 41%
  • DTC now 30% from 57% – this reflects post-pandemic sales returning to hospitality and retail.

Wine Tourism

Wine tourism is buoyant and shows a positive growth trajectory; income is up – now averages 24% of total revenue. Visitor numbers are up 17% from 2021.

Ned Awty, Interim WineGB CEO says: “We are used to seeing rapid growth of plantings and production and this year is no different, with plantings up 74% in five years and a production of 12.2mn bottles, almost a record! Thanks to an overwhelming response to our membership survey, we now have our most comprehensive data set ever for wine production in the UK. The data gives us new insights into the ever-increasing importance of wine tourism, the scale and diversity of employment in our sector and an in-depth view of sales channels from the largest to smallest producers.”

Chair of WineGB, Sam Linter, said: “These truly are exciting times for English and Welsh wine. Our latest report is from the most robust data yet and we are pleased to have this access. It not only sets out where we are today but looks ahead to the next ten years in terms of production and the many opportunities. We have become an internationally acclaimed wine growing region of the highest quality.”

The industry report is available Industry & Statistics Insights

Sources:
WineGB and Wine Standards

Champagne Releases 2022 US Market Update and Outlook

Comité Champagne (Comité Interprofessionnel du vin de Champagne (CIVC) recently released their 2022 US market update and outlook. Global champagne sales boasted the highest in 15 years – 325.5 M bottles shipped, worth over $6.6 billion.

“This is a proof of dynamism of the Champagne market in both volume and value,” said Gaëlle Egoroff, Comité Champagne Director of Protection and Promotion. “We can see the unique place that it holds in the hearts and the minds of consumers.”

Notably, the US remains Champagne’s number one export market outside of France. In 2022, US volumes reached 33.7 million bottles shipped, with a total value of nearly $1 billion. This marks a 1.1 percent decline from 2021 figures, which is a record. The marginal decline stemmed from an overwhelming global demand for Champagne in 2022, coupled with difficulties delivering those demands to the United States.

US Trends

The Comité Champagne credits the uptick in Champagne consumption in the US to emerging trends. These include by-the-glass pours, coupled with a growing thirst for rosé, low-dosage, and prestige cuvée Champagnes.

Remarkably, the US ranks 1st among other countries for rosé Champagne. Prestige cuvées represent the second US largest segment by value. More surprisingly, US imports of low-dosage Champagne exceeded 1 million bottles in 2022, an increase of over 50% from the previous year.

“American people have learned to appreciate Champagne,” said Egoroff. “The more they appreciate Champagne, the more they want to discover the diversity of Champagne.”

It’s also Interesting to note that American consumers lag behind in their EU counterparts in understanding Champagne’s origins, a problem that Comité Champagne plans to tackle with future trade and consumer education.

Source:  Comité Champagne

Smart Technology Helps Wine Tourism Grow in South Africa

Vinpro, together with the Cape Winelands District Municipality is funding a new wine tourism research pilot program to generate tourism intelligence and help South African wineries grow their Direct-to-Consumer business.

Launched in March of this year with sixteen wineries, this new pilot program is a continuation of one of Vinpro and the SA Wine Routes Forum (SAWRF)’s strategic objectives to conduct research focused on industry needs and knowledge gaps. Vinpro, and Vintelligence collaborated last year to release the SA Wine Tourism Visitor Research Report 2022 and this year the goal is smarter use of technology.

“We are extremely excited to have kicked off this amazing pilot program and we want cellars to get involved now,” says Marisah Nieuwoudt, wine tourism manager at Vinpro. “The new pilot program was launched together with Flow Networks, specialists in location analytics, proximity marketing and Guest Wi-Fi. This year we want to use the technology to our advantage to count our visitors and note where they come from, to understand the size and make-up of the total market. We want to help our wineries stay connected to wine tourists between visits, making consumer engagement in the DTC wine space possible.”

A tasting room is both the heart of the DTC sales strategy and the conversion zone for future online sales. The more data you can collect and record about customers, the better your can tailor offers and personalize communication. Flow Networks will work with the cellars involved on their marketing strategy to assist on cross-channel sales, manage their online reputation, build a loyalty and rewards program, or send offers via e-mail. Flow Networks is a reputable service provider, licensed to use Purple, and used by some of the largest brands in the world.

Presence Analytics is a software module that counts the number of mobile devices in range of a producer or cellar’s Wi-Fi router using a built-in location sensor. Visitors do not need to be connected to the farm’s Wi-Fi to be counted. It also measures the time spent in the venue and the frequency of visits.

Wi-Fi Analytics records visitors’ information that connect to a guest Wi-Fi service. A CRM record is created for each guest when they connect and is updated every time they return. This is done by linking up one or more of the farm’s existing Wi-Fi routers to the Purple Wi-Fi platform. Purple is installed on top of the existing Wi-Fi infrastructure, and setup takes less than an hour. The system can be managed via an online portal accessible to wineries. Purple instantly starts building a database via its user-friendly, custom-branded Wi-Fi landing pages once the winery goes live.

“As a region, we believe that wine tourism is not only about enjoying exquisite wines and breath-taking landscapes but also about harnessing the power of data and intelligence to support the growth of wineries and enhance our visitors’ experiences,” says Melody Botha, CEO Breedekloof Wine Valley. “That’s why we are proud to take part in the wine tourism research pilot program. By participating in this program, we aim to unlock valuable insights that can inform strategic decision-making for our wineries, enabling them to optimize their DTC business operations, improve customer engagement, and create memorable experiences for visitors. We recognize the potential of data-driven approaches to drive innovation and foster sustainable growth in the wine tourism industry.”

“We see this pilot program as an opportunity to pool our collective knowledge and expertise, so we can elevate our wine tourism offerings and position our region as a premier wine destination. We envision a future where wineries in our region can thrive in the DTC market, and where visitors can have truly exceptional wine tourism experiences,” Botha concluded.

“The tourism sector is one of the largest economic contributors in the Cape Winelands District. Between our mandated function of generating opportunities through local economic development and our role as Regional Tourism Office, this exciting and technologically advanced project ticks all the right boxes for the Cape Winelands District Municipality,” says Dr Elna von Schlicht, executive mayor of the Cape Winelands District Municipality.

 

Current State of the World Vine and Wine Sector [Web Conference]

The Director General of the International Organisation of Vine and Wine, Pau Roca, will review the current situation of the vitivinicultural sector at a global scale on

Thursday, April 20th  3 PM CET

with presentations and data on: World Wine Trade, World Wine Consumption, and World Wine Production.

The OIV is the intergovernmental organization of a scientific and technical nature of recognized competence for its work concerning vines, wine, wine-based beverages, table grapes, raisins and other vine-based products. It is composed of 49 Member States.

Web Conference:
Register to attend https://bit.ly/3MUDWWT

#wine #winelovers #winetrade #winenews #winebusiness #wineeconomics  #wineindustry #winetasting #vines #oiv #vinho #enologia #vitivinicultura #viticultura #viticulture #vine #news #trending

 

The Think Tank on Talent in Wine Tourism – Part I

The Think Tank on Talent in Wine Tourism took place March 23 and 24 2023, ahead of the 7th UNWTO World Conference on Wine Tourism, November 2023 in La Rioja, Spain.

The overall objective was to address the current situation of wine tourism training at the international level and to identify the specific training needs to respond to the demands of the sector in the coming years.

The Think Tank was Jointly organized by the Government of La Rioja and the Ministry of Industry, Commerce and Tourism of Spain, in collaboration with the World Tourism Organization.  The Think Tank’s 2-day event: the first day was a closed meeting with key relevant experts in the sector, as well as representatives from wine tourism territories from around the world; and the second day was a series of sessions open to the public.

Here is day two of the programme:

  • 7th UNWTO Global Conference on Wine Tourism presentation – Maria Soledad Gaido, Technical Coordinator, Tourism Market Intelligence and Competitiveness, UNWTO
  • Enorregion Strategic Project Presentation – María Jesús Miñana, General Director of Agriculture and Livestock, Government of La Rioja; Pilar Vargas, General Director of the University and Scientific Policy, Government of La Rioja; and Ramiro Gil, General Director of Tourism, Government of La Rioja
  • Introduction to Wine Tourism Training

Panel 1. Origin – Wine Tourism and Training Resources

Rainer Brusis, Director, Innovation Management

Marianna Sigala, Director, Centre for Tourism and Leisure Management (CTLM), University of South Australia (Australia)

Gergely Szonloki, professor of Market Research, Geisenheim
University / Member of the OIV/UNWTO Working Group (Germany)

Panel 2. Destination – Wine Tourism Prospects and Future Profesional Skills

Manuel Romero, Director, Dinamiza Asesores

Claudio Cilveti, President, Enoturismo Chile

Catherine Leparmentier, Managing Director, Great Wine Capitals
Global Network / Oenotourisme et Réseaux Internationaux,Chamber of Commerce And Industries (France)

Niklas Ridoff, CEO, WineTourism.com (Sweden)

Tamuna Kakhidze, Chief specialist, Department of Tourism
Product and Infrastructure Development, Georgian National
Tourism Administration (Georgina)

Panel 3. Action plan – Challenges of Wine Tourism Training

Eduardo Fonseca, Vice Chancellor for Research and Internationalization, Universidad de La Rioja

Eduardo de Diego, Director of Communication and Head of International Relations, Federación Española del Vino

Paula Sousa, Wine Tourism Consultant, Lisbon School of
Economics & Management (Portugal)

Mariette Du Toit-Helmbold, Chief Destineer, Destinate (South Africa)

Watch this space for Part 11 which will include new ideas and solutions the panel members have come up with, and published via report and/or research in the near future.