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2016 WINE TRADE MONITOR
“The rising stars of the wine market”
An exclusive trade insight into 7 major international markets
Sopexa has released the findings of the 2016 Wine Trade Monitor,
an international prospective study focusing on still wines[1]. 1,100
key stakeholders including importers, wholesalers and retailers
present their 2-year forecast on market development and key
trends.
[1] Excluding spirits, fortified wines, Champagne and sparkling wines
COUNTRY OF ORIGIN
Key finding 1: France is considered a must-stock Producer
Currently listed by 94% of respondents, France is still the most popular wine-producing
country in trade portfolios, followed by Italy (80%) and Spain (76%).
Key finding 2: Chile leads the way amongst for challenger countries
Listed by 64% of those surveyed, Chilean wines were referenced more often than others
from the New World, including wines from Australia (62%) and the USA (58%).
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Key finding 3: Taste for European wines evolves in Asian countries
In China, Spanish wines are now on an equal footing with their Australian counterparts,
which have lost significant listings compared to 2011. On the contrary, German wines have
lost significant ground in Japan, with a fall of 20 points compared to 2011.
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FUTURE SALES TRENDS
Key finding 1: Spanish wines are expected to rise
40% of all respondents – and 1 in 2 in Korea, Russia and Canada – are
anticipating an uplift in sales of Spanish wines by 2018, an opinion widely shared
across all operator profiles (suppliers, independent retailers or multiple grocers).
Furthermore, in 5 out of the 7 markets studied, outlook for sales increase is more
positive in regards to Spanish than Italian or French wines.
Wine professionals comment on the growth of Spanish wines abroad:
“The attraction of Spanish wines and their anticipated success across a number of
markets is down to their dynamic, versatile offer, including easy-drinking wines for
the everyday and a relatively diverse range catering for different market channels. In
addition, the offer comprises strong brands which drive their quality image”, explains
François Collache, Commercial Director of Drinks, Sopexa
Christian Barré, President of the SPANISH WINE FEDERATION and Managing
Director of PERNOD RICARD WINEMAKERS SPAIN, points out:
“Among the reasons behind the success of Spanish wines, I would mention first of all that
for a great number of consumers, they are seen to offer great value for money, which is a
real selling point in times of economic crisis. In addition, the entire Spanish wine sector,
particularly certain wine regions such as Rioja, has become very aware - faced with this
crisis - of the need to develop exports. It has therefore grouped together to promote the
growth of its wines and brands internationally. The sector has also benefited from
European subsidies to promote European wines outside Europe and in doing so,
supporting wine companies and appellations.”
In South Korea, where Chile is still the leading wine supplier, Spain is regarded as a
strong area of potential development by the wine trade.
According to Suk Young Chung, Director SOPEXA SOUTH KOREA, this success
is down to several factors combined: “Excellent value for money, a savory taste
appreciated by Koreans that can be related to the Japanese word Umami (5th taste),
the warm, welcoming image of Spain and an increasingly popular style of cuisine.
Spanish wines also have a certain novelty factor compared to French, Italian and
Chilean wines already available on the market.”
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Key Finding 2: Rioja, a driving force for Spanish wines
The success of Spanish wines is driven by Rioja, which comes out as the second most
sought-after European wine region after the Languedoc. For the trade, Rioja is
systematically featured in the top 5 high-potential regions, regardless of the country.
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IMAGE BY COUNTRY OF ORIGIN
Key Finding 1: France remains a second to none wine country
In terms of global image, France lies significantly ahead of its competitors,
particularly in Asia. 69% of all respondents consider French wines to be the most
successful, across all criteria[2]. In contrast, Italy lies at the other end of the scale with only
13% of votes.
Key finding 2: France, Spain, Chile and Australia are recognized for their individual
offerings
French wines are still held in particularly high esteem with regards to “wines for
special occasions”, where unsurprisingly, they come out on top, and also for
“sustainably developed” and “supplier relations”, the latter of particular
importance and flagged in Asian markets.
For “attractively priced” and “wines for every day”, Spain and Chile come out
on top, followed by Australia, which stands out as the most successful in terms of
“innovation.”
[2] Image criteria: wines for special occasions, wide range, sustainably developed, attractive price,
innovation, everyday wines, good supplier relations, logistical capacity, successful communication
campaigns, consistent taste, advertising and promotional support materials and available volumes.
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WINE CATEGORY DYNAMICS
Key finding 1: Wine region and appellation remain leading sales driving forces
“Regional wines” criteria will add the most value over the next 2-year period.
Across all criteria[3], regional wines (Bordeaux, Chianti etc.) are anticipated to see
the greatest increase in sales by almost 1 in 2 operators.
In second position come low-cost wines and varietal wines, which will experience
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increases in sales, according to almost a quarter of respondents
Sales forecasts for flavored and light alcohol wines are much less positive,
particularly in North America.
Key finding 2: North-America continues to see the world through rosé glasses
40% of US wine professionals and 21% of Canadians anticipate an increase in sales of
rosé wine. The growth of rosé in these markets has already largely unfolded in the past
several years. In contrast, this figure falls to just 5% of respondents in Korea, 4% in Hong
Kong and 2% in China and Russia.
[3] See Methodology p.6
“In the USA, rosé wines, from Provence in particular, benefit from the combined
effect of two trends: premiumisation, which is driving the demand for quality wines,
and the search for wines that can be enjoyed just as much at home in front of the
Superbowl[4] as in a bar on a night out”, comments Pauline Oudin, Director of
Sopexa USA. “The current range of imported dry rosé wines meets this demand
perfectly, which explains the strong uplift anticipated by operators. Drinking authentic
rosé is currently considered “cool” and “fun”, especially among Millennials (men and
women), who represent 65% of America’s heaviest consumers of rosé wine,” she
adds.
[4] According to a recent Nielsen study published in February 2016, current spend on wine by
American consumers increases by 20m USD the week before the Superbowl, almost as much as
beer, while traditionally considered as an upmarket beverage.
Key finding 3: Organic and natural wines see overriding success in Japan
38% of Japanese professionals anticipate an increase in sales of organic, biodynamic
and natural wines over the next 2 years. They stand out markedly from their Chinese and
Russian counterparts; only 10% of them predict growth in organic wines, and 3% and 1%
respectively in natural wines.
Charles Durand, Director Sopexa Asia, explains:
“The positioning of organic and natural wines gives them stand-out on this extremely
competitive market. A wide range is available on the market and they are particularly
suited to consumers who are increasingly seeking reassurance with regards to the
quality and traceability of the products they buy. The need to provide clear and
accurate information is all the greater since the distinction between different
categories of wine, natural wine and organic wine is not necessarily understood.”
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Carl Robinson, CEO of JEROBOAM, Tokyo importer, also shared his thoughts on
organic and natural wines in Japan:
“Demand for natural wines in Japan is extremely high and many top
restaurants in Tokyo serve them. Some wine drinkers have never even
tasted a wine containing sulphites! After the earthquake and Fukushima,
the people were even more careful about what they ate and drank.
Honesty in labelling has become very important to the Japanese who are
also more demanding than ever when it comes to quality.”
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GRAPE VARIETY DYNAMICS
Key finding 1: Grenache joins the Top 5 performing varietals in the USA
Currently one of the world’s most cultivated grape varieties, Grenache is particularly
sought-after by North-American wine professionals who now rank it among their top 5.
Grenache is positioned 4th overall. On the contrary, Malbec seems to have fallen out of
favor. Just 5 years ago it was at the top of the rankings, particularly in the US.
Olivier Moreaux, Director of Sopexa Americas explains: “The demand for
Grenache-based wines is in line with strong growth over recent years in sales of
Spanish wines, as well as wines from the Rhone and Languedoc-Roussillon. Offering
great value for money, Grenache-based wines beautifully meet consumer needs as
they are well structured, fruit-driven and easy-to-drink. They benefit from the
positive, fun and convivial image of wine regions from southern Europe, which are
particularly popular among young wine enthusiasts. In addition, educational and
communication campaigns for major wine producing regions have accelerated the
increased awareness of this varietal”.
Key Finding 2: The Top 3 grapes in terms of sales increase stays the same
According to respondents, Cabernet Sauvignon, Pinot Noir and Chardonnay remain the
grape varieties set to see the greatest boost in sales.
TRENDS IN PACKAGING FORMATS
Key finding 1 : Screwcap wines are in vogue
According to 62% of surveyed operators, the demand for screwcaps – both 750ml and
liter bottles – will unquestionably increase the most. This increase is primarily
expected in the Japanese, Canadian and American markets (94%, 77% and 67% of
professionals respectively).
Key finding 2: Boxed wine is on the rise in some countries
Boxed wine is set to see an increase in sales in the USA (according to 43% of operators),
Korea (40%), Japan (37%)
Key finding 3: Cork closures remain stable
Sales of bottles with cork closures will remain globally stable according to 64% of
operators, but seem to be losing ground in Japan.
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Methodology
Fieldwork = Sopexa has adopted a unique approach: canvassing local wine trade professionals, true
consumer gatekeepers, harnessing their frontline perception of the wine market in order to
understand and anticipate the latest breaking trends.
Decision makers = The survey was administered on line to a diverse and representative
sample of stakeholders who make up the wine market: 1,100 wholesalers, agents, importers,
supermarket retailers and specialist chains and e-commerce specialists (dealing exclusively
on-line), of which 77% are major decision makers (CEOs, Sales Managers and Buyers).
Almost 50% of respondents sell more than 100,000 bt per annum and 17% in excess of 1 million. NB.
The latter accounts for a third of respondents in Russia and Canada and almost a quarter in the USA.
7 key markets = In 2016, the study focuses on seven key markets: USA, Canada, Russia,
China, Hong Kong, Japan and South Korea.Overall results are presented as an average of all
seven countries, giving each country equal weight within the sample.
Future perspectives = In 2016, priority was given to questions focusing on:
Country of origin of wines listed by wine trade representatives surveyed
Future sales trends and prospects from the perspective of the wine trade;
Perceived image of different countries of origin against selection criteria, including extent of
range or supplier relations;
Market dynamics of different categories, including organic and biodynamic wines, flavored
or aromatized wines, regions, varietals, low cost, rosé, brands, private label, natural, lightalcohol and premium wines;
Grape variety dynamics;
Evolving demand for different packaging formats: screwcaps, cork closures and
bag-in-box.
About Sopexa: the International Marketing and Communication Agency 100%
Dedicated to Food & Drink
An international communications and marketing agency specialized in food, drink and
lifestyle, Sopexa assists companies, brands, collective organizations and institutions
their
communication
strategy
and
development.
With
its
in
280 multicultural experts
around the world, attentive to the latest trends and working closely with local opinion
leaders, the agency operates in 60 countries through tailored consulting & strategy services,
sales activation & international development campaigns, PR & brand content creation, events and
health & nutrition strategies.
Copyright © |2016| |SOPEXA|, All rights reserved.
For further information, please contact
Sopexa Group
Ghislaine PLUS
Media Relations Manager
[email protected]
Sopexa USA
Joanna SYKES-DARMON
Media Relations Manager
[email protected]
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