John E Fells & Sons will no longer be the exclusive UK distributor for Bordeaux producer Baron Philippe de Rothschild’s (BPhR) wines. Rothschild has announced a new distribution strategy for the UK, and BPhR will now deal with the UK multiples directly and it is establishing a system of regional agents. “We decided the best way to approach the UK is to go direct”, said trade relations manager for BPhR. (Source: Harpers)
Western Australian producer Palandri Wines will now be known as 3 Oceans Wine after being purchased by Chinese businessman Xibo Ma. He was previously the second biggest shareholder in Palandri. (Source: Harpers)
In the first half of 2008, imports of Argentine wine into the US exceeded 2.1 million 12-bottle cases, worth more than €48 million, an increase of 44.5% compared to 2007. (Source: VSB)
The European Union’s rumbles with India continued as it started new dispute proceeding against the country at the World Trade Organization. Last year, the EU halted proceedings against India after the government agreed to lower so-called ‘additional duty” on imported wines and spirits. According to the EU, the three states involved in the current dispute proceedings, Goa, Maharashtra and Tamil Nadu, have continued to penalise imports by imposing discriminatory taxes and restrictions on European wine and spirits. (Source: The drinks business)
The improvement of relations between Russia and Moldavia has had a direct influence on exports of French and Bulgarian table wines and other non-AOC wines. In the first half of 2008, French exports lost 18.9% of their volume, while Bulgarian wine exports decreased by 20% in the first three months alone. (Source: VSB)
Australian group Foster’s has posted its first loss in 16 years, down €238.1 million. This negative result is mainly attributable to decreases in its wine business amounting to a 5.7% fall in volumes sold and to the effect of the climbing Australian dollar. (Source: VSB)
Bernard Arnault the chairman of luxury group LVMH and Albert Frère the Belgian millionaire businessman, who are already co-owners of Château Cheval Blanc, have just taken over another Saint-Emilion property – the 15-hectare (37-acre) estate of Château Quinault. (Source: La lettre CHR-CHD)
Japan’s sake industry is facing a serious consumer scare with the discovery of contaminated rice used in the production of its rice based alcoholic beverages.
The sake industry is already facing tough market conditions, with sales failing steadily. According to finance industry figures, consumption has fallen every year since 1995 to a record low of 700.000 kilolitres in 2006.
But at the same time, sake consumption is on the rise overseas, benefiting from the global popularity of Japanese food: exports rose to a record high of 11.334 kilolitres last year, up from 7.051 in 2001. (Source: Decanter.com)
"A product that has been banned, condemned in its own original country, cannot succeed in the long term as an export. Can’t it be understood that talking about wine is not encouraging people to abuse alcohol? Surely, those who condemn it can try to understand and give us a chance to prove our point?”
Jean-Marie Chadronnier, former MD of wine merchants CVBG and Bordeaux winegrower. (Source: Le Point)
In 2008, exports of Uruguayan wines, whose production is currently being developed, should break an all-time record at 13 to 14 million litres. The main importer of this small producer is Russia. (Source VSB)
According to a statement from the main Italian wine producers union, Italy will harvest an estimated 48m hectolitres of wine, while French estimates are in the region of 43-44m hectolitres. It is about 4m hectolitres more wine than France. (Source: Wine Business International.com)
The value of French wine exports in the first half of 2008 increased by 8.2% to reach €3.2 billion. However the volumes exported decreased significantly by 8.7% compared to last year. The main categories to be forsaken by foreign drinkers were table wines and vins de pays. AOC wines, meanwhile, pushed the overall market upwards with exports increasing in value by 18%, despite a slight fall in volume of 1%. (Le Figaro)
A major step forward in efforts to protect Scotch Whisky in on of its most important markets has been welcomed by the Scotch Whisky Association (SWA). Following an SWA application, the Chinese Trade Mark Office under Administration of Industry & Commerce (AIC) has agreed to protect “Scotch Whisky” as a Geographical Indication (GI) by registering it as a “collective trade mark”. (Source: The Scotch Whisky Association)
Following a survey carried out by the European Confederation of Independent Winegrowers (CEVI) amongst its members concerning problems met in the supply of glass bottles, responses received from France, Portugal, Spain, Switzerland, Luxemburg and Slovenia are alarming.
90.1% of the winegrowers who were questioned, had to pay higher prices for bottles, 63.6% met with problems of late delivery and 55% faced breakdowns in supply.
CEVI forwarded its findings to the European Commission’s General Directorate for Competition. (Source: European Confederation of Independent Winegrowers)
In order to meet a growing demand for rosé, Provencal winegrowers have had to reduce their production of white and red wines. Thus today, rosé accounts for 87% of the Côtes-de-Provence and Coteaux Varois AOCs, and 73% of Coteaux d’Aix. Well ahead of the Val de Loire with 20% of French production, Provence is the country’s leader on the AOC rosé market. (Source: Var Matin)
Diageo, one of the leading wine and spirits company, is launching an innovative website designed to promote responsible drinking worldwide. The website, DRINKIQ.com, is a global resource for all interested parties to share programs and tools designed to fight alcohol misuse and help individuals make responsible choices about drinking. (Source: Diageo)
The popularity of rosé has been confirmed as new figures show the number of regular wine drinkers who drink rosé has risen by over 60% in the last three years. According to research commissioned by the WSTA, six of ten wine drinkers now drink rosé compared to less than four out ten in 2005.
This growth comes in part at the expense of red, with consumption of red wine falling by 10% over the past tree years. (Source: Decanter.com)
The market share of non-French wines in French super- and hypermarkets has stagnated at around 1.5% to 2% of sales for about ten years. Spanish wines have the lead, accounting for 50% of the volumes. Wines from North Africa come second with 20% of the total volume, followed by Portuguese (8%) and Italian wines (6%). New World wines only represent 14% of the volume of non-French wines sold. (Source: Boissons de France)
Cava, which originates from Catalonia in Spain, has in a short period of time undoubtedly become one the most important sparkling wines in the world, now representing 10.4% of the global sparkling market. In 2007, over 20 m 9-litre cases of Cava were made, of which 56% were exported. Germany, which bought 41 m bottles in 2007, is by far the largest client for Cava, followed by the UK with 32.7 m and the US with 14.4 m. (Source : Wine Business International)
Australian wine exports to Asia showed value growth in the year, increasing by 6% to €149m, according to the Australian Wine and Brandy Corporation. In particular, growth in China (+17%), Hong Kong (+24%) and South Korea (+10%) was very strong. (Source: Wine Business International.com)
An increase in a fatal vine disease known as “maladie du bois” in Bordeaux, Cognac and Gascony, has led to calls for an area of southwest France to be declared in state of emergency. The disease attacks the wood part of the vine plant, and the rate of infection depends very much on the region and the grape variety, but globally the disease is progressing due to the wetter weather. (Source: Wine Business International.com)
Despite a decline of 1% in volume to 200m litres, exports of German wines rose by 2% in value to €398m in the 12 months through June 2008, according to statistics released by the Deutsches Wine Institute (DWI). Announcing the figures, Monika Reule, the managing director of the DWI, declared herself satisfied with the results, adding: “Turnover of all German wine exports has increased by 43% since 2000. Given the limited size of Germany’s vineyard area, we are more interested in value than volume”. (Source: Wine Business International.com)
Low prices for agricultural land and high customs duties on wine are encouraging Russian entrepreneurs to invest in local vineyards. While ten years ago the wine regions of southern Russia looked deserted, a growing number of premium local brands from this region are now on the market. In five years Russia will celebrate the 400th anniversary of the first vineyards planted. (Source: Wine Business International.com)
Burgundy, the French region that exports the largest percentage of its wine, had a record-breaking year in 2007, but has been hit by dollar weakness in the first part of 2008. Export values for 2007 were up 21% on 2006. The total sales value for the year was €718m, for a volume of 110m bottles. The main buyers of Burgundy are the US and the UK, but there is a growing demand from Sweden, Finland and Norway, as well as Asia, notably Hong Kong, Taiwan, Singapore and South Korea. (Source: Wine Business International.com)
Pernod Ricard plans to invest €7 million in Graffigna over the next three years to make it the number one selling brand in the UK. In the next 12 months, the San Juan-based winery aims to increase UK sales from 60.000 to 100.000 none-litre cases. The winery is located 100 miles north of Mendoza, an area that has traditionally been seen as a quantity rather than quality producing area, but Pernod Ricard has spent €5.6 million in the past five years improving technology in the winery. (Source: Harpers.com)
Bacardi Limited has appointed Seamus McBride, 53, as its new president and CEO, effective September 1, 2008. Andreas Gembler, has led the company since 2005. “During each year of Andrea’s tenure, Bacardi produced record sales and earnings. He set the company on a transformative path that will serve us well into the future”, said Bacardi Ltd chairman. (Source: Impact)
The French wine sector has accused the French government of ‘legal injustice’ over the banning of alcohol promotion on the Internet. Wine producer unions from across the country have written a strong letter of protest to the government. The letter accuses the Ministers of Health and Agriculture of taking no decision regarding ‘this catastrophic legal deadlock’. (Wine Business International.com)
International sales of the exceptional Bordeaux 2005 vintage have saved French wine export figures for the first half of 2008. If exports from the more expensive Bordeaux region fell by 1.52% in volume, exports rose by a significant 42.5% in value. (Source: Wine Business International.com)
Canadian Ministry of Industry figures point to a decrease in the market share of French wines in Canada from 32% to 26% between 2002 and 2006. France stills holds on to the lead, but is closely followed by Australia with a 20% share. French wine imports grew by 16% in the period from 2002 to 2006, while Australian imports increased by 209% and Argentinean sales grew by 394%. (Source: Le Figaro.fr)
Italy’s spumante sales for the first six months of 2008 registered a 60% increase in value and a 10% increase in volume over 2007 exports. This equates to €1.3bn and 320m bottles. Consumption of both imported Champagnes and locally produced sparkling wines are rising rapidly in Italy. In 2007, Italy’s champagne imports registered a 11% increase on 2006, selling over 10m bottles. (Wine Business International.com)
Rosé, long dismissed by purists as uncultured plonk, has overtaken white wine in volume of sales in France. While much of France’s wine growers battle lower consumption and persistent overproduction, pink wine is enjoying as never before. It is estimated that more than one in five bottles of wine sold in France is a rosé. (Source: Telegraph.co)
Pioneer and world leader in supplying wine in tin cans, the Australian company Barokes Wines has launched an operation in France focussed exclusively on the Paris region. Consumers who have “taken the plunge” are keen supporters, according to Barokes’ French distributor. (Source: VSB)
Mezcal, similar to blue agave, is rapidly gaining in popularity as e new alternative to tequila, and is expected to take sales away from tequila in Mexico. After decades of being perceived as a poor man’s drink, mescal is finally gaining respect among spirits connoisseurs. Source: The Drinks Business)
“We already have the world-class infrastructure, logistics, financial and communication systems required and, more importantly, the discerning palate and ample appetite to become a wine trading and distribution centre in Asia”. Henry Tang, Hong Kong’s Chief Secretary. (Source: The Australian)
Anthony Perrin, the owner Bordeaux chateau Carbonnieux, has died at the aged of 68. He was one of the main figures in Bordeaux's winemaking circles. Along with his father Marc, he is credited since 1956 with reviving the fortunes of Carbonnieux, situated in the Pessac-Leognan area of southern Bordeaux. (Source: Decanter.com)
On August, CEO of Diageo, Paul Walsh insisted on the morose economic environment which is triggering changes in consuming patterns that imply major marketing adjustments for Diageo’s products. “We are seeing there is a migration from the on-premise (pubs and bars) to the off-premise. We have to capture that off-premise occasion”, said Paul Walsh. (Source: Times online)
South Africa wine exports have broken all records and are soaring in spite of the international economic slowdown. Over 363 m litres were exported during the 12 months to July 2008, an increase of 27% on the previous year. In particular, exports have been fuelled by rising rosé sales, up 60% on the previous year. (Source: Wine Business International.com)
Out of the 17 billion 75 cl bottles of wine produced worldwide each year, 2.5 billion should receive screw caps in 2008, compared to only 300 million in 2003. The challenge is to eliminate any cork taste while ensuring good conservation of the wine and absolute uniformity between bottles. Corks, both real and synthetic, do however account for 85% of the market of bottled wines. (Source: Le Figaro - Vinexpo)
World spirits leader Diageo, whose growth objective was announced to be 9%, has declared an 11% increase in its net profit for the financial year 2007-2008. Diageo revises the growth forecast for its operational profit in 208-2009 to a level between 7% and 9%. (Source: Reuters)
French wine authorities predicted that 2008’s harvest will be smaller than the previous one due to poor weather and fewer vineyards. Production is expected to reach 43.6 million hectolitres, close to the five percent less than last year’s 46.54 million. (Source: AFP)
ASC, the leading wine importer in China with outlets in most of the Chinese cities, will open an office in Hong Kong in October. ASC is aiming to take advantage of the abolition of customs duties there to offer a better service to local customers as well as the increasing numbers of tourists and other visitors flocking in from China in search of better priced products. (Source: VSB)
Didier Dagueneau, one of the greatest Sauvignon Blanc producers in the world, has died in a flying accident at the age of 52. He was known worldwide as an outspoken and brilliant winemaker. (Source: Sud-Ouest)
Christie’s International Wine Department, world leading auctioneer of fine wines had not held a sale in Asia since 2001. To celebrate its return, a major auction will be organised on 29 November in Hong Kong at the Hong Kong Convention & Exhibition Centre, consisting of 250 lots, including 150 remarkable selections from the highly reputed Château Latour. (Source: Christie’s)
Augusta de Alba, a young 22-year-old woman, has been elected Best Argentinean Sommelier in 2008. Since 2000, when the first school of sommellerie was founded in Argentina, four schools have awarded official diplomas to more than 200 sommeliers. The profession is soaring in this major wine consuming nation, which is moving progressively to quality wines. (Source: VSB)
The Cabinet of the Quebec Government has nominated Philippe Duval to take the position of President and Managing Director of the Quebec Alcohol Corporation (SAQ). Mr Duval had been fulfilling these roles in a temporary capacity since November 2007. (Source : VSB)
Compared to 2006 - 2007, cognac deliveries have decreased by 3.8% in volume, but turnover has grown slightly to reach more than 1.6 billion euros (152.8 million bottles), up 0.8%. (Source: Décisions Boissons)
This year’s California grape harvest is expected to be smaller than in 2007. California’s 2008 grape harvest is project at around 3.2 million tons, down 3% from last year. (Source: Impact)
In July, Italy’s agricultural minister and the U.S ambassador to Italy guaranteed that Brunello would continue to flow into the United States thanks to the introduction by Italy of a certification process for Brunello producers who export to the United States. “We can rely on the Italian government to give the necessary guarantees”, said U.S ambassador Ron Spogli. (Source: Wine Spectator)
Thunderstorms brought hail and 100km winds, devastating a range of Italy’s Brunello di Montalcino vineyards. The mid-August storm was concentrated in the south western part of the zone. Though it is difficult to assess the total damage, it is estimated about 600 hectares of production were hit, equal to between 30%-35% of the total production. (Source: Wine Business International)
According to the Indian Policy Alliances (IAPA), 21% of adult Indian males drink alcohol, 17% of them regularly, with the average age of initiation down to 19 years, from 28 years in the 80s. About 10% of adult females drink alcohol and around 62.5 people altogether imbibe alcohol. (Source: Wine Business International)
Cilaos is the only wine on Reunion Island. 35,000 bottles of its 4 “country” wines are produced, so it is still only at an experimental stage, but despite quite adverse conditions of climate, insular isolation and local geography, there is a steady demand. The objective in 2009 is to move from the present 15 hectares (37 acres) of vines to 20, thereby leaving the status of experimental vineyard to become a fully-fledged wine-producing estate. (Source: Revue Vinicole Internationale)
Vinexpo SAS has just reorganised itself and introduced a Supervisory Board and an Executive Board. As a result, Xavier de Eizaguirre was appointed as President of the Supervisory Board of Vinexpo Bordeaux, the international wine and spirits exhibition.
The executive director remains General Manager Robert Beynat, who is also member of the 4-man Executive Board chaired by the President of the Bordeaux Chamber of Commerce and Industry, Laurent Courbu.
The same Executive Board was set up for the subsidiary Vinexpo Overseas and Ms. Dominique Hériard Dubreuil continues to preside over the exhibitions organised outside France. (Source: Vinexpo)
Australia has overtaken the UK as the biggest export market for New Zealand wines, according to the country’s winegrowers’ association. Although exports to the UK increased by 8% last year, Australian market grew by 37%. The increased consumption of New Zealand wines in Australia means the country’s market is now worth €115 million, overtaking Britain, which consumed marginally less - €113 million. (Source: Decanter.com)
Having set up a Sustainable Development Charter in 2007, the French Spirits Federation has published a practical
