Wine consumption in Spain
Rafael del Rey
General Manager
XVIII Giornata Internazionale Vitivinicola - Siena, 28 maggio 2005
How much is consumed?
How has consumption evolved?
What type of wines are consumed and where?
At what prices?
By whom?
2
Unfortunately, nobody really knows how
much wine is actually consumed in Spain…
Source
Ministry of Agriculture
(viticultural balance: rest of…)
Ministry of Agriculture
(Inquiry on food & Beverage consumption)
Institute of Statistics*
* Total sales minus exports
Nielsen
Latest year
Figure
MM Hltrs
Jul 2004
13,90
Dec 2004
11,98
Dec 2003
16,85
Dec 2004
6,58
...
Although
it should
be around
12/13
million
hectoliters
3
Therefore, differences arise on
how has consumption evolved…
1988 to
2004
18,5
17,2
18,1
16,6
16,8
16,3
15,9
16,0
15,3
16,2
14,5
14,5
14,6
-24,8%; -4,6 Mill.
14,8
14,3
15,2
14,2
14,7
13,5
13,9
13,2
14,2
13,5
12,3
1988
1989
1990
12,0
11,6
M of Ag (balance)
M of Ag (inquiry)
Inst. Stat.
AC Nielsen
1987
13,9
13,1
12,0
6,7
13,8
13,7
13,0
12,9
13,8
12,0
-25,9%; -4,2 Mill.
6,7
1991
6,5
6,7
1992
1993
6,7
1994
6,5
6,4
6,5
6,6
6,3
1995
1996
1997
1998
1999
6,2
2000
6,5
2001
6,8
6,7
6,6
2002
2003
2004
4
… although most indicators show clear decrease.
Something similar (different
sources) happens in terms of value…
2.461
2.414
2.461
2.795
2.422
2000 to 2004:
+334 Mill. €
(+3,2% p.a.)
M of Ag (inquiry)
Inst. Stat.
AC Nielsen (still wine)
2.060
1.875
1.894
2.050
1.812
1995 to 2003:
+956 Mill. €
(+8,2% p.a.)
1.472
1.305
1.094
1.129
1.190
1.108
1.354
1.164
1996 to 2004:
+518 Mill. €
(+6,1% p.a.)
983
858
1995
1996
1997
1998
1999
2000
2001
1.376
2002
2003
2004
… although most reliable figures show increase.5
In terms of per capita wine consumption:
46,6
Total wine (Ltrs/capita)
41,4
38,8
The same decrease in wine (-39% since 1987) takes place...
37,3
34,3
33,3
35,1
34,1
35,6
34,3
33,0
32,6
32,7
30,6
30,5
1987
1988
1989
1990
1991
1992
Total
beberages 1987 2004
(Lit per capita)
1993
1994
1995
1996
1997
1998
1987-04
Ltr/pers
on/year
1999
2000
2001
1987-04
1987 2004
Ltr/pers
on/year
%
93,8
-23,7
-20,2%
151,1
63,8
73,1%
244,9
40,1
19,6%
%
AO
Table
Sprakling
Other
Total wine
Beer
Other alcoholic
Fruit juice
Mineral water
Soft drinks
6,3
36,4
1,9
2,0
46,6
64,4
6,5
6,7
23,0
57,6
8,2
18,2
1,1
0,9
28,4
59,1
6,3
18,4
66,6
66,0
1,9
-18,2
-0,8
-1,1
-18,2
-5,3
-0,2
11,7
43,6
8,4
30,3%
-50,0%
-43,2%
-56,0%
-39,1%
-8,2% 117,5
-3,1%
175,2%
189,7% 87,3
14,6%
Total beverages
204,8
244,9
40,1
19,6% 204,8
29,6
2002
28,2
28,4
2003
2004
… which is
not caused
by the
increase of
other
alcoholic
beverages,
but is due
to growth
of nonalcoholic.
6
Horeca;
714,44;
60%
By type of wine:
Home;
483,35;
40%
Sparkling;
45,7; 4%
Table;
768,2;
64%
By place of
consumption:
Other;
37,1; 3%
AO;
346,7;
29%
7
By type of wine and place of consumption:
Products & channel
2004
(million ltr)
Horeca
Sparkling
2%
%
Home AO
103,8
Home table
327,8
483,4
40,4%
30
Home sparkling
25,9
Home other
25,8
70
Horeca AO
242,9
Horeca table
440,4
714,4
59,6%
Horeca sparkling
19,8
Horeca other
11,3
Total wine domestic 1.197,8 1.197,8 100,0%
EVOLUTION Var. 1987-04
BY PRODUCT By product
AND CHANNEL
Home AO
Home table
Home sparkling
Home other
Horeca AO
Horeca table
Horeca sparkling
Horeca other
Total wine
domestic
Mill Ltrs
35,78
-565,02
-22,83
-12,46
65,89
-81,36
-6,99
-28,77
-615,75
Var. 1987-04
By channel
%
Mill Ltrs
52,6%
-63,3%
-564,52
-46,8%
-32,6%
37,2%
-15,6%
-51,23
-26,1%
-71,7%
-34,0%
-615,75
%
-53,9%
Horeca other
1%
Home AO
9%
Horeca table
37%
Home table
27%
Horeca AO
20%
Home
Sparkling
2%
Home other
2%
Home AO
Home table
Var. 1987 - 2004 in million Ltrs
36
-565
-23
Home sparkling
-12
Home other
66
Horeca AO
-81
Horeca table
-6,7%
-7
Horeca sparkling
-29
Horeca other
-51,4%
Total wine domestic
-616
8
By average price
(according to Nielsen)
:
62% of total wine is sold below 1,50 € /bot-Ltr, which only
represent 32% of total value of domestic wine consumption
Price per unit offtrade (year 2004)
8,13€/bot
3,3
4,82€/bot
8,8
3,33€/bot
7,6
10,6
20,6
2,46€/bot
19,0
13,1
1,49€/bot
31,0
0,73€/litro
30,3
23,9
26,2
5,7
IN VOLUMEN
IN VALUE
9
By region of consumption
1.999
Cantabria
País Vasco
Cataluña
Asturias
Galicia
Baleares
Navarra
Total España
Madrid
Castilla-LM
Castilla y León
Valencia
Aragón
Andalucía
La Rioja
Murcia
Canarias
Extremadura
Wine at
home
26,81
22,34
21,08
19,30
19,21
15,57
15,57
15,20
14,99
14,50
13,70
13,60
12,36
11,78
11,75
11,52
8,62
6,91
2.004
Cantabria
Cataluña
Baleares
Asturias
Galicia
País Vasco
Total España
Navarra
La Rioja
Castilla y León
Madrid
Valencia
Andalucía
Castilla-LM
Aragón
Extremadura
Murcia
Canarias
Wine at
home
21,19
16,99
13,61
13,29
11,89
11,63
11,51
11,15
10,86
10,80
10,41
10,40
10,38
9,93
9,22
8,90
7,85
7,63
(home consumption):
Var. 2001 - 04 in Ltrs/person/year
Cantabria
-5,62
-21%
Cataluña
-4,09
-19%
-1,96
Baleares
-6,01
Asturias
-38%
-10,71
-48%
-3,69
Total España
Navarra
-31%
-7,32
Galicia
País Vasco
-13%
-24%
-4,42
-28%
La Rioja
-0,89
-8%
Castilla y León
-2,90
-21%
Madrid
-4,58
-31%
-3,20
Valencia
-1,40
Andalucía
Castilla-LM
Aragón
-4,57
Note: Large increase in population in recent years
Canarias
-12%
-32%
-3,14
-25%
1,99
Extremadura
Murcia
-24%
-3,67
29%
-32%
-0,99
-11%
Spain is divided
into northern
consumers with
10 Lit/head and
over, and central,
southern and
eastern
consumers below
the average,
with:
•The Balearic
Islands in the
leading group;
and
• Aragon in the
North though
well below the
average
10
Wine consumption at home by region:
Above 15
Lit/person/year
Between 11 an 15
Lit/person/year
Between 10 and
11 lit/person/year
Below 10
Lit/person/year
Is it more difficult to drink wine in warmer areas?
11
More detail on consumers at home (1):
By color (home still wine): two thirds are
red wine, 23% white and 13% rosé
Lit/person/year 2003
Change 1992-2003
Rosé;
55.341,15;
13%
White;
100.686,57;
23%
14,36
Red;
275.635,28;
64%
12,86
11,63
-1,84
11,69
11,55
-2,82
-3,02
-3,91
-5,12
Less than
2.000
2.000 to 10.000
10.000 to
100.000
100.000 to
500.000
More than
500.000
Lit/person/year
Change 1997-2003
12,16
-3,89
Low
11,64
-6,43
Medium-low
-3,14
Medium
consumption): more wine is
consumed in small towns than in
larger cities
By socio-economic status
12,83
11,55
By size of the city (home
-3,97
High and
medium-high
(home consumption): slightly
more wine is consumed in houses
with a medium and high status
and larger decrease takes place
in medium-low and low income
families.
12
More detail on consumers at home (2):
Lit/person/year 2003
Change 1997-2003
19,74
15,04
!!!!
6,14
-4,83
(home consumption): wine
consumption is clearly associated
to elder age
9,65
-4,84
By age of the house lady
-3,64
-4,95
Below 35 years old Between 35 and 49 Between 50 and 64
years old
years old
65 years old and
more
Lit/person/year 2003
Change 1997-2003
13,51
Does wine in our countries have a problem
of acceptance among young people?
By activity of the house
lady (home consumption): much
more wine is consumed in
traditional houses, where,
however, decrease has being
much larger.
9,64
-1,89
-4,88
Working outside home
Work at home
13
More detail on consumers at home (3):
Lit/person/year 2003
Change 1997-2003
20,09
By size of the family
19,2
12,08
2,03
9,72
-4,22
1
2
-6,41
8,05
-4,87
-4,45
3
4
(home consumption): the larger
the family, the lesser wine is
consumed, and only in houses
with one person (old / young??)
consumption has grown
5 and +
More children probably means younger
Lit/person/year 2003
Change 1997-2003
By age of the children
16,21
9,26
-4,5
6,29
-3,79
(home consumption): more wine is
consumed in houses with no
children and those with elder
children, as compared to houses
with young sons and daughters
-3,75
No children
Children > 6 yr
Children between 6 and 15
14
Conclusions:
•
•
•
Clear decrease of wine consumption in Spain (as in the other traditional wine
producing countries)
Mainly in table (popular) wine consumed at home, while AO wine is growing,
particularly on-trade (also AO regions grow)
Probably due to changes in patterns of consumption
–
–
–
–
•
•
•
Less basic products in exchanged for few higher quality
Less traditional lunch (big, quite, followed by a “siesta”), though good dinners outside
More quick meals
Problems with traffic (How much can be consumed?)
Affected (distribution, presentation, advertisement) by the consideration of wine as a
dangerous alcoholic drink (legally associated with drugs)  need to separate wine
from other drinks  Wine Act 24/2004
Not very attractive for younger generations (“a parent’s drink”); consumption directly
link to age  urgent need to make it an attractive beverage (presentation, degree of
alcohol, innovation, etc), also as way to learn/enter moderation
Not due to prices, although too expensive in restaurants  innovation in distribution
(direct sales? Enoturism?)  growth of firms (balance of powers between wineries
versus distributors)
15
Conclusions (2):
• We are loosing a generation of consumers while wine is less attractive to
young people (as opposed to young generations in Anglo-Saxon markets) 
need to innovate, marketing, presentations
• The great importance of on-trade consumption
– makes it comfortable for small bodegas to exist and limits possible entrance of
foreign competitors, but,
– on the other hand, limits growth of domestic firms, increases power of
distributors (and regional administrations and unions) on the medium term and
makes needed export less attractive.
• Off-trade distribution is concentrating everywhere and may contribute to
increase consumption at home (following trends in northern countries).
• The need to supply larger amounts of quality wine in stable terms at
competitive prices, both domestically and abroad, generates doubts on the
EU policy regarding quality wine associated to specific producing regions 
increasing need of flexible laws on presentation and AO
16
At the end,…
… two questions arise:
• Is it reasonable to expect a large increase in domestic
demand to absorb our larger production?
If not, export will be required, but then:
• Can we face export markets with the same criteria and
mentality than we do our domestic markets?
17
Thank you
Rafael del Rey
XVIII Giornata Internazionale Vitivinicola - Siena, 28 maggio 2005