Global Wine Production Lowest Level Since 1961

Global wine production has fallen this year to its lowest level since 1961 as vineyards were pummeled by extreme weather events, according to a statement issued this week by the International Organization of Vine and Wine (OIV).

Output reached 244.1 million hectoliters, down 7% from last year, the intergovernmental body said as it presented its first estimates.

“Once again, extreme climatic conditions — such as early frost, heavy rainfall, and drought — have significantly impacted the output of the world vineyard,” said the organization, which provides data to grape and wine producing and consuming countries.”

Australia, Argentina, Chile, South Africa and Brazil all saw output drop between 10 and 30%.

Italy lost the title of top world producer as its output fell 12%, allowing France to reclaim first place as its production held steady.

Spain held onto its position as the world’s third largest wine producer although its production fell by 14% and was down 19% from its five-year average.

The silver lining, if any, for the industry is that it may help alleviate the market imbalance.

In “a context where global consumption is declining and stocks are high in many regions of the world, the expected low production could bring equilibrium to the world market,” said the OIV.

Wine News: Trade in Wine and Vine Products Continues to Raise

The first edition of the Vine and Wine World Trade Forum was held a few weeks ago in Dijon, France. It has revealed that international trade in wine and vine-related products has grown significantly over the past two decades.

The market has also become more diversified as consumer tastes have changed. While traditional winemaking economies, such as France, Italy and Spain, maintain their dominance in wine exports, “new world” winemakers, such as Australia, Chile and the United States, are also making major inroads. However, the share of China as an importer has declined following a period of growth, possibly due to global disruptions, such as the COVID-19 pandemic.

According to the World Trade Organization, International trade in wine and vine products, have almost tripled over the past two decades. Its value steadily rising from US$ 17.7 billion in 2000 to over US$ 50 billion in 2021 and 2022. Wine accounted for the majority of this trade (76 per cent in 2022), while the remaining 24 per cent consisted of fresh and dried grapes and grape juice.

The “old world” continues to dominate wine exports with France, Italy and Spain holding the top three positions in both value and volume. From the “new world,” Australia, Chile and the United States are the main suppliers in terms of value, although their shares in the international market remain smaller than those of the top three.

On the imports side the primary wine-importing countries include Germany, the United Kingdom and the United States. They are closely matched in terms of volume, but the United States takes a clear lead in value. A surge in China’s wine imports began in 2005 and peaked in 2017, but it has more than halved since then. This decline may be due to short-term disruptions, such as the COVID-19 pandemic, as well as longer-term structural shifts, such as increased domestic production and possible changes in consumer preferences.

For further stats and details: https://www.wto.org/english/blogs_e/data_blog_e/blog_dta_20oct23_e.htm

Source: World Trade Organization

Announcing Liz Palmer is Guest Speaker at the 7th UNWTO Global Conference on Wine Tourism

I’m so thrilled to have been invited as a guest speaker at the upcoming 7th UNWTO Global Conference on Wine Tourism!!

The topics for the 7th Edition include “Inclusive, Sustainable and Digital Wine Tourism: Building Stronger Territorial Cohesion”

This yearly conference has become a leading international forum on trends, tools and opportunities to advance global wine tourism. It also provides opportunities for experts and professionals, as well as consolidated and emerging destinations in this tourism segment to exchange knowledge and experiences.

Since 2016, the Conference has highlighted the importance of wine tourism to the socio-economic development of destinations and has served as a platform to exchange experiences, identify good practices and promote wine tourism as a tool for sustainable development.

The 7th UNWTO Global Conference on Wine Tourism will be held November 22 – 24 in Logroño, Spain. Participants include government officials from international and national tourism administrations and organizations, regional and local authorities, international and national destination marketing organizations, UNWTO affiliate members, private sector representatives, wine estates, infrastructure providers and international academia.

I believe everyone in the wine tourism industry can certainly attest to Massimo Garavaglia, Italian Minister of Tourism, statement at last year’s conference, in Alba Italy: “Wine tourism is much more than just selling wine, which clearly is important.  When you sell a bottle of wine, you are selling the territory behind that bottle, the culture of that territory, the history of the men (and women) who designed these landscapes with the rows of vines.”

I have the extreme privilege of sharing insights on the topic of:

Unlocking the Benefits of Digitalization
Digital transformation can revolutionize and enhance wine tourism experiences, provide data and insights, optimize marketing strategies, and foster sustainable growth.

Conference Link: https://www.unwto.org/7-UNWTO-Global-Conference-Wine-Tourism

Hope to see you there!

Liz Palmer

 

US Adults 55+ are drinking more alcohol according to research

The percentages of 18 to 34-year-olds, who report that they either don’t drink, drank the past week, or sometimes drank more than they should, are all lower than they were 20 years ago, according to research conducted by American analytics company Gallup.

Yet, drinking on all three metrics has trended up among Americans 55 and over, while holding fairly steady among middle-aged adults.

These results were based on an analysis of Gallup trends on Americans’ self-reports of their alcohol drinking habits. To allow for reliable analysis of the trends by age, the data was reviewed in three three-year time periods: 2001-2003, 2011-2013 and 2021-2023.

  • Adults under the age of 35, 62% reported that they drink alcohol, down from 72% two decades ago; and
  • Drinking has increased among adults aged 55 and older, from 49% to 59% in the same 20-year period.

This shows that drinking habits among younger adults may be on a downward trend, while the opposite can be said of people 55+. According to the research, there are still more drinkers under the age of 35 (62%) than in the 55 and over category (59%).

While these groups on either end of the age spectrum now report similar drinking rates, those in the middle, aged 35 to 54, maintain a higher drinking rate, at 69%, on par with the prior 67% readings for this age group.

The same trend can be seen among those classed as regular drinkers. Younger adults who drink are less likely than they were in the past to say they had an alcoholic drink within the past seven days, down from 67% to 61% over the last two decades. Older adults, aged 55 and over, have done the opposite, with figures rising from 63% to 69%.

Among all Americans (both drinkers and nondrinkers), fewer than four in 10 young adults (38%) now appear to be regular drinkers, on par with older adults (40%) with middle-aged adults (48%) more likely.

Research Results:  https://news.gallup.com/poll/509501/six-americans-drink-alcohol.aspx

Wines of Ukraine launch UK Head Office

Wines of Ukraine has recently established a UK head office to help further grow its reputation on the international stage.

The organization, formed in 2021, is made up of 15 members, comprising craft wineries with an overwhelming majority of pre-war sales rooted in the domestic market. The organization has had a strong presence at this year’s London Wine Fair and Prowein.

With the proposed UK import operation now beginning to take shape, Wines of Ukraine will host its inaugural tasting for the UK trade and media on Monday, October 9th at 67 Pall Mall in London

At its first UK tasting, there will be 11 wineries from six wine regions, that will show 60+ wines, covering different styles, including sparkling wines, unfiltered orange wines and sweet wines, reds, whites, and rosés.

Tania Olevska, marketing and PR director of Wines of Ukraine UK, states: “Our producers are excited to meet and present their bottles to wine professionals in the UK this autumn.  Now is the right time to bring the wines of Ukraine to the UK, when we have a high quality and a good range of styles – all of which are confirmed by high ratings at international wine competitions and great feedback from both professionals and consumers.”

The full-scale war unleashed by Russia has significantly affected the state of Ukraine’s wine industry with some wineries being occupied, and others being damaged and looted. Some of the vineyards are mined and not cultivated, and the local market has shrunk. However, in 2022, Ukrainian wines began to be discovered worldwide and today they are represented in the UK, USA, Japan, Poland, Baltic, and Nordic countries, amongst others.

Svitlana Tsybak, co-founder of Wines of Ukraine, added: “The mission of our team is to promote Ukrainian wines worldwide, present Ukraine as a winemaking country, and tell everywhere and everyone that Ukraine has its place in the winemaking world.

“For the last two decades, Ukrainian wine has experienced a renaissance, and now it is time to show our wines in the UK.  This is one of the most important markets for us, not least because the country supports Ukraine, which we very much appreciate.”

To register for the event click here:  https://shorturl.at/ADE04

Wineries that will be showcased, include:

Beykush Winery, Mykolaiv

Stakhovsky Wines, Zakarpattya

Chateau Chizay, Zakarpattya

Biologist Craft Winery, Kyiv

Vynkhol Oksamytne /TM Villa Tinta, Odesa (Bessarabia subregion)

Kolonist Wine, Odesa (Bessarabia subregion)

Frumushika Nova, Odesa (Bessarabia subregion)

Shabo, Odesa

Tiras Winery /TM My Wine by Eduard Gorodetsky, Odesa

Graevo, Zaporizhzhia

Father’s Wine VB, Ternopil