Posts Tagged ‘Down’

German beer consumption hit a 20 year low. But why?

German beer consumption hit a 20 year low. But why?

Following the news that beer consumption in the UK was down by 50 million pints in the first quarter of this year, comes the news that sales in Germany have slumped as well.

According to figures released by Germany’s Federal Statistical Office, in March domestic sales of beer fell by 10.9% year-on-year; exports were also down, falling by 13.3% over the same period.

Over the first quarter of this year German beer sales dropped to 19.9 million hectolitres, the lowest amount for at least 20 years. Volume dropped 4.3% to the lowest level since 1993, when the data were adjusted to exclude alcohol-free beer.

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The wine business continues to do things no one expects, and the latest Champagne sales numbers are a striking indication of what’s going’s on.

This French wine service story is stunning in its conclusions: “Champagne was dominant 10 to 15 years ago, but the world has changed.”

The story, though written for the European market, is well worth reading because it documents the trend we’re been talking about here for several years (and not just because I’m trying to put together The Cheap Wine Book). Today, when consumers have a choice between two quality products, they’re more likely than ever to buy on price. Champagne exports declined 2.8 percent last year,… read on

 

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Ouch!

 

Unlike most other wine categories, Champagne sales were not sufficiently buoyed by surging demand from Asia and North America to compensate for declining shipments to Europe in 2012. A large share of consignments are Europe-bound and because of this, the economic crisis hit the region with a full frontal attack.

 

According to Champagne marketing board CIVC, sales of Champagne for the first eleven months of 2012 were down 3.8 percent on the previous year. The fall is primarily due to a drop in sales in France – the region’s largest market – where they declined by 5.2 percent to 144.35 million bottles, though also to falling volumes in Europe. Moving annual totals within Europe dropped by 8.3 percent due to markets such as the United Kingdom and Germany. However, Thibaut Le Mailloux, spokesman for the marketing board, said the figures should be put into perspective: “the downturn comes on the back of two years of strong growth that followed the 2008-2009 financial crisis”.

Fortunately, although many of the region’s sales outlets are in Europe, non-EU countries came to the rescue with a rise of 3.5 percent in sales. The Chinese market may well be geared to red wines, the first half of 2012 saw it reach a turning point with China entering the top 10 export destinations for Champagne for the first time ever. Sales surged by almost 100 percent to 947,713 bottles over the half-year. Fellow Asian market Japan also rose significantly (+26 percent) to over 4.5 million bottles.

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Hong Kong wine scene.

Hong Kong wine scene.

 

After climbing steadily over the previous three years, 2012 was not a great one for the wine auction market.

 

Sales of fine and rare wine slumped 19 percent last year, according to Wine Spectator, with worldwide revenues falling from $478 million in 2011 to $389 million last year. However, the details reveal a more nuanced picture, with the numbers coming out of Hong Kong far more grim than those from the United States.
According to the report, auction revenues were down 10 percent in the U.S. and a full 32 percent in Hong Kong. Richard Harvey, the senior international director of wine at Bonhams, attributed the drop in revenues to decreasing prices for Bordeaux wines, particularly Chateau Lafite Rothschild, which was wildly popular in China for a short period before demand cooled in late 2011.

There is, of course, an argument to be made that the wine market is… read on

Cider sales down in the UK!

 

C&C has reported an 11.9% volume decline in its third quarter UK cider sales, adding weight to recent moves within the sector to pursue growth in other markets.
Although the Magners brand owner pointed out that this result represented an improved performance on first half sales, which it attributed to increased off-trade promotional activity, it remarked: “There has been little discernible improvement in the trading environment for UK LAD [Low Alcohol Drinking] in the third quarter.

“It remains a tough market for brand owners and the increased competition in cider is adding to pricing pressure.”
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All3

Australia’s commodities boom created the $200,000 high-school dropout, the world’s richest woman, and the least affordable housing market on earth. And it could soon put a dent in the makers of Yellow Tail, the best selling Australian wine in America. From the WSJ’s Caroline Henshaw:

Australia’s largest family-owned winery relies on the U.S. for three-quarters of its sales, but the Australian dollar’s rise against the U.S. dollar has made its products less competitive against wines from rival regions such as California’s Napa Valley and South America.

Casella Wines is looking to shave costs and secure a deal with lender National Australia Bank ahead of an extended Jan. 30 deadline. A failure to secure a new loan could force the company to sell off vineyards or other assets, Chief Executive John Casella told The Wall Street Journal.
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Kangaroo Crossing

The Australian wine industry is awash with change and we have identified the key alterations taking place Downunder.
From new style whites to single block reds, winemakers and brand owners are displaying a restless urge to experiment, embracing new practices in the vineyard and cellar.

As for plantings, there’s a surprisingly broad array of grapes going into the ground (particularly from the Mediterranean) as producers search for the best match between variety and climate, along with soil type.

Meanwhile, it’s clear Australia is embracing its cooler-climate regions, creating lighter wines, and working harder to express specific sites.

Improved viticultural practices in particular are key to Australia’s vinous evolution, with more suitable clones, older vines and better soil management all making their mark.

Helping capture changes in the vineyard are earlier harvest times, gentler fermentation practices and reduced new oak use, and overall, as Mark Lloyd from McLaren Vale’s Coriole told db, “Today the Australian wine industry is in a sweet spot.”
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Rather down, than up during 2012!

Champagne shipments will fall by around 3% in 2012 back to the level of 2005 and 2006.

A poor November saw sales down year on year by between 6% and 7%, and overall sales during the year are expected to be between 312m and 314m bottles, 3% down.

When 42m bottles were sold in December 2012 it was the lowest figure for that month since 2004, said Michel Letter, managing director of Pernod Ricard-owned GH Mumm and Perrier-Jouët. ‘If we do the same this December, that will make 312m bottles for the whole year.’

With ‘a lot of promotion on the French market recently’ where prices in hypermarkets have regularly dropped below €10 a bottle, Letter expects that level at least to be reached.

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