Review of developments in the global spirits market

Caucasian wine

wine It is difficult to account for the Georgians: The Government of Georgia issued a decree according to which it is willing to allocate money to the peasants for cutting unprofitable grapes and planting in areas of annual crops. And it’s not anywhere, but in areas of Kakheti (Eastern Georgia). The government will allocate 2,000 lari (1300 dollars) to the peasants, which will be removed from their land, some varieties of grape vines and in those places zaseyut annual crops. Last year, the Georgian authorities to determine the facts vine cuttings as a crime against the state and anti-Georgian escapade, pointing out that the vine - a symbol and shrine to Georgia and Georgians. Last year, the Government of Georgia has promised to help enterprises to the wine industry in finding new markets and even in its advertising. Today the Georgian authorities to wine.

Lack of Georgian wine in Russia (he felt) has decided to make the company “Istok”, which withdrew in 2008, semi-sweet red wine “old custom”. The company represents it thus: “a bright image of the wine” old custom “- became the collective image of all Caucasian lands and tells the best traditions of this region.” “The old custom” - democratic, but it is certainly a quality wine in the bottle, reminiscent of an ancient earthen vessel. The product is decorated in typical Georgian style, is still our southern company did not, on the contrary, emphasized the “geographically neutral” wine names and design. Wine to be sold in the segment up to 100 rubles per bottle. Very interesting course and direction - “Caucasian wine. And it’s good that it made a “Source” and not any other manufacturer of the Caucasus: it is “Source” made the market believe in the possibility of quality legal Caucasian vodka.

Moldova

Somehow, Moldovan producers decided that the crisis on their hands and gave them a better chance in Russia to regain past positions. These findings led them to the information that the consequences of the global financial crisis on the market of Russia noted falling demand for expensive wine (consumption of wine cost 300-400 rubles per bottle fell, however, increased demand for wine cost less than 100 rubles per bottle). According to Moldovan media such a situation advantageous to producers who export to Russia, mainly wine-production, is positioned in the lower and middle price segments.
So far in our retail virtually no Moldovan wines at a price below $ 100 (occurs occasionally).

Thus, in January-October 2008, the Moldovan wine producers have put Russia on the market 2.35 million given bottled wines on the total amount of 37,9 mln, 92,1 thousand dal sparkling and carbonated wines (at 1,91 million dollars), 243.2 thousand dal brandy (to 11,8 million dollars). In 2005, only wine was delivered to our market has given 20 million, or 8.5 times greater. The return process is difficult.

But just today the Moldovan wine-makers once again have a chance to return part of the wine in a cheap segment (up to 100 rubles), if they can reduce prices to such an extent. In this case, they can become the only imported wine in the low-price segment up to 100 rubles, with all the ensuing consequences.

In addition, after two years carried the first shipment of Moldovan wine’s products in Russia through a company ILS. According to the official report of the company, December 11, 2008 Customs Broker “Importprodukt (part of the holding ILS) designed the temporary storage of the San Logistics (customs terminal” Sunny “) with the first tank of wine from the Moldovan producer Imperial Vin” designed for “Gatchina distillery. Until 2006, the Moldovan raw worked more than ten Russian wineries. Among them: OOO “Fitch”, “Moscow factory of sparkling wines”, “MMVZ” and OAO “Istok”.

The volume of wine imports to Russia in 2005 amounted to 11.6 million given the share of Moldovan material - about 5.0 million returned. In connection with Russia’s import dependence on wine and wine materials for many years the import of wine’s very promising. In 2008 it was imported to Russia about 38 million and gave the wine’s 24 million made wine in 2008, we planned that the wine’s market will grow to 40 million dal.

There was complete return of Moldovan products to Russia.

Until then sunk the French

According to recent research published by the Research Center Credoc, more than half of French people said that wine is a serious health risk, and put the wine into second place in the list of the most dangerous products. The younger generation of misinformed anti-alcohol lobby, was not aware of the benefits of use of wine, and knew nothing about the cultural role of wine in France. Compared with the results of the last similar study of public opinion, there is nearly a twofold increase in negative perception of wine: 26% of respondents in 2003 to 51% - in 2008. Also according to the poll, wine negatively associated with the bourgeois remnants, which will ultimately be expressed in the refusal of wine as a product of daily consumption. Yesterday, the wine was a symbol of French gastronomy, and is now viewed not only as another kind of alcohol. And this is just the last 60 years. In this problem the wine industry of France, and not in the fact that wine plays in the foreign markets wines of the New World. You sort things out in their country: the consumption of over 60 years per capita decreased by 2 times. In this crisis, and EU wine - to reduce consumption of wine in the traditional countries. This rest of the world so actively does not want to drink wine, as it would like the French, etc.

Australia is filled with wine

In 2008 in Australia were processed 1 800 000 000 kg of grapes, which is 30% higher than a year earlier. Such data led the Australian Bureau of Statistics. Expected to have lower yield because of the ongoing drought, and the uprooting of some vineyards. However, the tenants made serious contributions to the acquisition of water for irrigation.

As a result, Australian wineries produced 25% more wine than the previous year. Production of red and rosé wines increased by 40% and amounted to 67,4 million has given, whites - 15% (55.3 million given). In addition, the country’s exports declined by 9.2%, domestic sales decreased by 5,4%. Total: total production - 122.7 million returned, and exports to the best of times, reached 80 million provided this year will fall to 70 million gave (at best). In the domestic market will give a minimum of 52-53 million. This is to 27 liters per capita Australian average. They do not drink so much. And again - the problem of winemakers.

United States

Because Americans a year are struggling with a crisis (though Russia is struggling with it for a year), for the period January-September 2008 the U.S. wine imports registered a slight decline in volume and value growth. Five of the eight major suppliers to the U.S. market have reduced their supply. However, the main wine-producing countries to partially offset the slowdown of growth of value - except for Australia, New Zealand and Chile - Affirming that the price trend follows the general trend of growth, which is against the background of the current economic situation leads to a reduction in imports.

Italy and especially France have suffered from the decline in exports to the U.S. and the rising euro. The volume of imports from Italy dropped by 7.1%, from France - on 15,1%, which offset the rising cost of wines by 4% and 18% respectively.

In general, for January-September 2008 the U.S. wine imports totaled 50 million gave the value of 2,69 billion dollars, thus, the volume decreased by 6,9%, and the value increased by 3,4%. Americans usually consider and wine in bottles, and wine material together. If we assume also, that in Russia “included” in 2007 for the whole year about 60 million gave the wine. Consumption of wine in the United States has given about 275 million per year (approximately 9 liters per capita). More than 200 million provided annually in the United States is consumed by his guilt.

Painting in Russia: Imports of wine in the U.S. exists primarily for “inflating” the price of a product: Americans drink mostly cheap wine (65% of the wine for another 2-3 years before being bought in retail price from 3 to 5 dollars per bottle, with a view difference in our living standards and income at the pre-crisis time - 20-30 rubles per bottle).

It was a great challenge, “make” the first Americans to switch to more expensive wine $ 5, and then the more expensive 10 dollars per bottle (again, on the level of living standards among the population of Russia - 10 dollars - it is not more than 60 rubles per bottle). This problem also has been largely completed, not less than 45% of wine sold there at a price above $ 5 per bottle, but compare it to “relational” prices.

What they came out (though this is the price of delivery, rather than retail sale): The average price for a liter of imported wine in the first nine months of 2008 amounted to 5.39 dollars for the Italian wines (compared with 4.82 dollars in 2007), 3 , 39 dollars for the Australian wines (compared with 3.56 dollars), 11 dollars for the French (in 2007 - 7.92 USD) 3,27 USD for Chile (3.21 USD in 2007) and 2,45 dollars for the Argentine (compared with last year’s rate of 2.06 dollars). No wonder the French do not grieve for the U.S. market (their wine 2-3 times more expensive than any other) - they are there and have created a great French myth, exports from the French culture!

And now in mid-December confirmed: despite the economic downturn, Americans are drinking more wine than ever in recent days. But if in 2005-2007 GG growth of the wine market have contributed to a greater degree of well-known brands of large companies (and this “udorozhennye” expensive advertising of wine), then the 2008 crisis, the growth of the market to provide wines of medium-sized companies (supplying the U.S. market less brendovannye wine in quantities less than 1 million made each). In 2008, wine consumption in the United States will approach 270 million given (to 9 liters per capita, we have about 5.5 liters of wine per year). The decline in the global economy has resulted in slower growth of wine production, but the total consumption of wine did not prevent the establishment of record consumption over the past 16 years. “Small” brands continue to conquer the American market. Top 50 brands of the country, who sell at least 1 million cases each, is projected to be informed of the general downturn in 2008 at 0,2%. Currently, more than 7 thousands of wine brands sold in the U.S., but less than 300 brands sold more than 100 000 cases a year.

Let’s not start it the “razglobalizatsii” wine market in the United States.

Belarus

How active Belarusians began after the adoption of state program to develop a “secondary” production of alcohol. Thus, the French company Belvedere, which had still not possible to “buy” anything in Russia, set up in Bobruisk production bottling of wines and brandies. Concluded an investment agreement between Belvedere and Mogilev regional executive committee on the establishment of production on the basis of the Bobruisk plant grape drinks. At the present time is how to create a company, the state share the enterprise is not less than 30% (will be in the municipal property Bobruisk administration). Belvedere Company plans to pour at a factory in Bobruisk high quality grape wines and brandies natural home Gautier. Investment in this project to be $ 12.9 million euros. Its implementation is designed for 2008-2011.

At the end of December 2008 “Vitebsk distillery plans to begin bottling of brandy. The volume of the first installment is 2 thousand dal. This will cognac “5 stars” ACE Ukrainian Tavria. According to the plans of producers, next year the volume of cognac production in the company of some 20 th. In addition to the cognac plant will produce brandy liqueur: “Rowan” Cognac “,” Prunes “Cognac” and “currant” Cognac “.

Ukraine

By the way, I would like to apologize to the readers: we all thought conditionally ruble to UAH as 5 to 1, but the course something has changed: has 3.6 to 1. So that the minimum prices for vodka in Ukraine is not 70 rubles a bottle, and already 50.5 rubles. etc.

The most controversial news coming from the Ukraine from different research companies. One has already agreed to the fact that “Ukrainians move to imported wines.” Ostensibly, now in Ukraine, according to research firm Retail audit, wine, low-price segment gives way to a more expensive (likely in a crisis of Ukrainians are getting richer, there is generally some incidents: in October, when we drop the legal production by 15% there is an increase of 38%, now - is the wine). According to the company - in this season, the proportion of wine at a price 11-15 UAH per bottle (39,6 - 54 USD) is about 23%, while last year the figure reached values of 50%. Production cost UAH 7 per bottle (25.2 USD) altogether disappeared from the shelves, while last year its share was 0,5%. From 9,8 to 4,4% reduction in the presence of product in retail price range from 7 to 10 UAH per bottle (25,2 - 36 rubles).

In Ukraine, a strange kind of crisis is the opposite - a cheap wine to drink longer, the illegal production of vodka died (rain, however, results in production in November). And if we in Russia feel that we have a crisis people will go (and is already moving) on the cheap alcohol, then in Ukraine because of Ukrainian crisis, consumers can change the course of high-quality wine on the basis of research company Retail audit.

In turn, products of 20-27 UAH (72 - 97,2 USD) reached a share of 36,4% against 12,9% in the past year. Showed growth and more expensive wines: the proportion of production costs 28-35 UAH per bottle (100.8 - 126 rubles) increased from 2,1 to 6,8%, 36-100 grn. (129.6 - 360 rubles) - from 1,8 to 2,2%. With regard to consumer preferences, the demand for fortified and dessert wines fall, and the dry - grows. Last year, the proportion of the latter was 12-15%. In this - they can count on all 20%. Given the situation of Ukrainian producers have raised prices by 25-30%.

It is difficult to account for the Georgians: The Government of Georgia issued a decree according to which it is willing to allocate money to the peasants for cutting unprofitable grapes and planting in areas of annual crops. And it’s not anywhere, but in areas of Kakheti (Eastern Georgia). The government will allocate 2,000 lari (1300 dollars) to the peasants, which will be removed from their land, some varieties of grape vines and in those places zaseyut annual crops. Last year, the Georgian authorities to determine the facts vine cuttings as a crime against the state and anti-Georgian escapade, pointing out that the vine - a symbol and shrine to Georgia and Georgians. Last year, the Government of Georgia has promised to help enterprises to the wine industry in finding new markets and even in its advertising. Today the Georgian authorities to wine.

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This entry was posted on Tuesday, February 16th, 2010 at 4:43 am and is filed under Wine market, Wine review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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