Category: Blog

  • ConVINOsation Podcast Brings EUROVINO Wine Fair to Life

    ConVINOsation Podcast Brings EUROVINO Wine Fair to Life

    In collaboration with Messe Karlsruhe, we are proud to launch ConVINOsation, a new podcast dedicated to tackling the wine industry’s most pressing topics. Hosted by industry expert Peter Douglas, Season 1 dives into key issues shaping the wine world, from the rise of alcohol-free wines to the influence of AI and the latest EU regulations on labeling nutritional and ingredient information and much more!

    Each episode of ConVINOsation is available in German on the EUROVINO website, Spotify, and other streaming platforms—an essential listen for anyone in the wine industry!

    Listen to ConVINOsation here

    Host: Peter Douglas
    Producer: Florian Böcking
    In cooperation with the EUROVINO/Messe Karlsruhe team.

  • Live on Wein Verkauft!

    Live on Wein Verkauft!

    I recently had the opportunity to join freelance consultant Diego Weber from Germany on his podcast, On German!. Over the course of the two-hour episode, we had a detailed conversation about key business concepts such as product passes, pricing strategies, and even how I would approach selling wine.

    Throughout the podcast, we explored a wide range of topics and provided practical solutions to common business challenges. If you’re interested in learning more about how to refine your pricing model or better understand the idea of product passes, this episode is packed with valuable insights.

    To hear the full conversation, tune in and enjoy!

    As always, feel free to reach out if you have any questions or would like to discuss these topics further. I’d be happy to continue the conversation!

  • Live on the Morning Show

    Live on the Morning Show

    In July 2024, I had the exciting opportunity to appear on New York’s WTBQ Frank Truatt’s Morning Show, the #1 drive time morning show, with the wonderful daily co-host Taylor. We delved into the fascinating world of wine, discussing everything from wine quality to tasting tips.

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  • Challenging Year for French Wines & Spirits Exports 2023

    Challenging Year for French Wines & Spirits Exports 2023

    In the year 2023, the French wine and spirits sector navigated through challenging waters to post exports worth €16.2 billion. Despite representing a 5.9% decline from the previous year, this figure stands as the second-highest in the industry’s export history. The volume of exports also saw a considerable reduction, falling by 10.4%. However, the sector managed to maintain its status as the leading contributor to France’s agri-food surplus and the third largest in the nation’s overall trade balance, with a trade surplus of €14.8 billion, down by 5.8%.

    The backdrop of 2023 was fraught with global uncertainties, including persistent international tensions and notable inflationary pressures. Gabriel Picard, President of the French Association of Wine and Spirits Exporters (FEVS), highlighted the resilience of the sector amidst these adversities, underscoring the achievement of the second-best export figure in the face of significant challenges.

    A closer look at the export markets reveals a mixed picture. In the United States, the sector experienced a notable decline, with exports decreasing by 22% to €3.6 billion. This downturn was primarily attributed to wholesalers’ efforts to diminish stockpiles accumulated during the Covid-19 pandemic, coupled with subsequent logistical challenges. The decline was particularly sharp in the spirits category, which plummeted by 37%, and sparkling wines, which fell by 16%. Still, wines managed to hold their ground, maintaining stable value. Towards the end of 2023, however, there were signs of a potential recovery in this crucial market.

    Export Performance by Category 2023 (Source: FEVS)
    Export Performance by Category 2023 (Source: FEVS)

    Different Markets, Different Outcomes

    The United Kingdom presented a more stable environment, with a modest 1% increase in export value to €1.7 billion. The market for sparkling and still wines remained largely unchanged in terms of sales, despite a 5% drop in volumes. Spirits showed a slight increase in value (+2%) while experiencing a minimal volume decrease (-1%).

    In the Asian Market the trend was similarly mixed, with overall exports standing at €4 billion, marking a 1% increase. Japan saw a 4% decrease, while South Korea and Taiwan remained stable. China offered a varied scenario, with spirits, particularly Cognac, showing a 3% growth, contrasting with a 20% fall in wine value, reflecting the broader decline in Chinese wine imports by 21%. Emerging markets like Malaysia and the Philippines showed significant growth, albeit from a smaller base, with increases of 20% and 74% respectively, totaling €100 million for both countries.

    The global sales of French spirits were particularly hard-hit, decreasing by 12% to €4.8 billion, with a 13% fall in volume. Wine exports fared slightly better, decreasing by 3% to €11.3 billion, with volumes down by 9.4%.

    Export Performance by Major Markets 2023 (Source: FEVS)
    Export Performance by Major Markets 2023 (Source: FEVS)

    Global Challenges

    icard pointed out that the sector’s challenges in 2023 were exacerbated by high inflation and a dip in consumption due to reduced disposable incomes. The contraction in exports, especially in volume, was partly due to efforts to reduce overstocks in several markets, notably the US.

    The downturn in 2023 serves as a critical reminder for exporters of the need to remain agile and responsive to evolving consumer and market dynamics. Picard emphasized the importance of continued support from public authorities to sustain the export success of French wines and spirits. This includes opening up new markets and safeguarding existing ones against potential trade retaliatory measures. He argued that the strength of France’s export sector contributes to the nation’s sovereignty, underscoring the significance of maintaining a global presence for the wine and spirits industry.

    In conclusion, while 2023 marked a period of adjustment for the French wine and spirits sector, it also highlighted the industry’s resilience and the ongoing importance of strategic adaptation. The FEVS’s analysis provides a comprehensive overview of the challenges and opportunities facing exporters, offering insights into the paths forward in a rapidly changing global landscape. As the sector looks to rebound from the soft landing of 2023, the emphasis on market diversification, responsiveness to consumer trends, and robust support mechanisms will be crucial for sustaining and enhancing France’s prestigious position in the global wine and spirits market.

    Overview Performances

    Market-Specific Performance Highlights in 2023

    United States

    • Spirits: -37%
    • Sparkling wines: -16%
    • Still wines: Stable

    United Kingdom

    • Sparkling and still wines: Unchanged value
    • Spirits: Value +2%, Volume -1%

    Asia

    • Japan: -4%
    • China: Spirits +3%, Wines -20%
    • Malaysia: +20%
    • Philippines: +74%

    Thanks for Reading!

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 

    Source: FEVS Press Release – 2023 Wine & Spirits Export figures Report

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    Peter Douglas DipWSET on Podcast Wein Verkauft! with Diego Weber (Photo: AI generated with Adobe Firefly)

    Live on Wein Verkauft!

    I recently had the opportunity to join freelance consultant Diego Weber from Germany on his podcast, On German!. Over the course of the two-hour episode,

    Read More »
    Peter Douglas Wine Consultant

    Live on the Morning Show

    In July 2024, I had the exciting opportunity to appear on New York’s WTBQ Frank Truatt’s Morning Show, the #1 drive time morning show, with

    Read More »
    French Wine Exports Decline

    Challenging Year for French Wines & Spirits Exports 2023

    In the year 2023, the French wine and spirits sector navigated through challenging waters to post exports worth €16.2 billion. Despite representing a 5.9% decline from the previous year, this figure stands as the second-highest in the industry’s export history. The volume of exports also saw a considerable reduction, falling by 10.4%. However, the sector managed to maintain its status as the leading contributor to France’s agri-food surplus and the third largest in the nation’s overall trade balance, with a trade surplus of €14.8 billion, down by 5.8%.

    Read More »
    DWI Sommelier Cup

    DWI Announces Winner of the Sommelier Cup 2024

    The DWI Sommelier-Cup 2024, hosted by the German Wine Institute (DWI), concluded on January 22, 2024, with Katharina Iglesias from wineBank in Hamburg claiming the title. The event, held at the Atrium Hotel in Mainz, witnessed participation from 28 professionals across various sectors of the wine industry. While the competition’s popularity remains undeniable, a critical examination of its structure and outcomes reveals aspects worth contemplating.

    Read More »
  • DWI Announces Winner of the Sommelier Cup 2024

    DWI Announces Winner of the Sommelier Cup 2024

    The German wine industry witnessed a significant event this past weekend, with Katharina Iglesias, representing wineBank in Hamburg, securing the top spot at the DWI Sommelier-Cup 2024. Hosted by the Deutsches Weininstitut (DWI), this esteemed competition was held on January 21-22 at the Atrium Hotel in Mainz.

    High-Caliber Wine-Competition

    The Sommelier-Cup attracted a diverse array of 28 participants, encompassing experts from fine-dining establishments, wine industry professionals, and students specializing in hotel and wine studies. This broad participation underlines the event’s status as a key fixture in the professional wine calendar.

    Competitors faced a rigorous assessment of both theoretical knowledge and practical skills. The tasting rounds involved 45 domestic wines spanning various categories, including red, white, aged, sweet wines, as well as PIWIs and climate exotics. Participants were tested on their ability to accurately identify the origin, vinification style, and vintages, some dating back to 1992.

    In the theoretical segment, comprehensive knowledge in grape varieties, wine-growing regions, winemaking processes, market dynamics, and wine law was essential.

    The final round, moderated by Master of Wine Romana Echensperger, required the top five finalists, selected by an expert jury, to accurately characterize and identify two concealed wines. Additionally, they demonstrated a perfect decanting service for a Spätburgunder and suggested appropriate food pairings, showcasing their professional demeanor and spontaneity in an open quiz about German wine.

    The panel, comprising industry experts like Jasmin Priller (German Wine Professional), Dominik Trick (Hotelfachschule Heidelberg), Shahzad Talukder (Sommelier Union), Diana Maisenhölder (Vinophilium Wine Academy Stuttgart), Christina Fischer (Genusswerkstatt), and the previous year’s winner Julien Alsoufi, had the challenging task of adjudicating the competition.

    The winners were honored with significant cash prizes, presented by the Deutsche Weinkönigin Eva Brockmann, amounting to €1,500, €1,000, and €750 for the first, second, and third places, respectively.

    Thanks for Reading

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

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    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 
    Photo Credit. DallE

  • German Wine Consumption Plummets in 2023

    German Wine Consumption Plummets in 2023

    In a recent media release, the German Wine Institute (Deutsches Weininstitut – DWI) reported a significant decrease in the percentage of wine-buying households in Germany for the third quarter of 2023 compared to the previous year.

    This data, sourced from NielsenIQ’s household panel, which tracks the purchases of private households, reveals telling shifts in the wine market.

    Decline in German Wine Consumption

    The proportion of wine-buying households fell from 36.9% in 2022 to 33.8% in 2023, marking a decrease of about 3%. Specifically, the share of German wine dropped from 25.4% to 22.6%, and foreign wines from 26.5% to 23.6%. This downturn, which began in the second quarter of 2023, appears to be continuing unabated.

    Less Households are purchasing wine.
    Less households are purchasing wine.

    The rise in prices, particularly of German wines, has been a significant factor in this decline. Despite an increase in average prices by approximately 10%, German wines managed to maintain their market share in terms of revenue at 46.4%. Meanwhile, Italian wines gained 1.6% to reach an 18% market share, while France, Spain, and overseas origins saw slight decreases.

    Italy Wins Again

    In terms of types of wine, Germany saw an increase in the market share for white wine by 4.8%, while red wine experienced a steep decline of 10.8%. Italy emerged as a clear winner across all wine colors, particularly in white wine, with a 27.1% increase. Overseas saw large declines.

    Wine Consumption in Germany by country.
    Wine consumtpion in Germany is declining. (Source. DWI)

    Export and Import Dynamics

    Despite a challenging economic environment, the average export price for German wines in 2022 rose by €0,20, reaching a new high of €3.15 / liters. This led to a 4% increase in the value of German wine exports, totaling €370m, even though the volume decreased by 3% to 1.17m hl.

    The USA, Norway, the Netherlands, the UK, and China were among the top export markets. Notably, exports to China increased by 24% in volume and 22% in value, with an average price of €512/hl

    Suprisingly, German wine exports to Russia witnessed an unprecedented surge, marking a significant shift in the global wine market dynamics. The value of these exports soared by 87.3% to €12,931,000, while the volume increased by 89.4% to 56,745 hectoliters. This remarkable growth has elevated Russia to the 11th wine export market, now accounting for 3.5% of Germany’s total wine exports. The average price of €228 per hectoliter underlines the moderate quality of German wines that are increasingly favored in the Russian market.

    Value up, volume down. The German wine exports remain challenging. (Source. DWI(
    Value up, volume down. The German wine exports remain challenging. (Source. DWI(

    Domestic Sales and Imports

    On the domestic front, the average price for German wines rose to €4.18/L, but volumes sold decreased by over 14%, leading to an 8% drop in revenue. Foreign wines also saw a decrease in both volume and revenue, with an average price of €3.64/L. Italian, French, Spanish, American, and Austrian wines topped the import lists, with significant value increases despite volume losses.

     

    Despite declining volumes, the average price per HL increased to 315€ in 2023.
    Despite declining volumes, the average price per HL increased to 315€ in 2023.

    Off-Trade Remains Significant

    Discounters and Supermarkets remain the most critical channels.
    Discounters and Supermarkets remain the most critical channels.

    The per capita consumption of wine in Germany declined by 4% to 19.9 liters in 2022, while sparkling wine consumption remained steady at 3.2 liters. The majority of wine purchases (64%) were made through retail, with discount stores accounting for 37% of these sales. 

    These figures paint a complex picture of the German wine market in 2023. The shift in consumer behavior, influenced by economic factors and price changes, has led to noticeable changes in market shares and consumption patterns. The resilience of certain segments, like German wine in terms of revenue and Italian wine in market share, highlights the dynamic nature of the wine industry.

    The report can be found on German here.

     

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 

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    Peter Douglas DipWSET on Podcast Wein Verkauft! with Diego Weber (Photo: AI generated with Adobe Firefly)

    Live on Wein Verkauft!

    I recently had the opportunity to join freelance consultant Diego Weber from Germany on his podcast, On German!. Over the course of the two-hour episode,

    Read More »
    Peter Douglas Wine Consultant

    Live on the Morning Show

    In July 2024, I had the exciting opportunity to appear on New York’s WTBQ Frank Truatt’s Morning Show, the #1 drive time morning show, with

    Read More »
    French Wine Exports Decline

    Challenging Year for French Wines & Spirits Exports 2023

    In the year 2023, the French wine and spirits sector navigated through challenging waters to post exports worth €16.2 billion. Despite representing a 5.9% decline from the previous year, this figure stands as the second-highest in the industry’s export history. The volume of exports also saw a considerable reduction, falling by 10.4%. However, the sector managed to maintain its status as the leading contributor to France’s agri-food surplus and the third largest in the nation’s overall trade balance, with a trade surplus of €14.8 billion, down by 5.8%.

    Read More »
    DWI Sommelier Cup

    DWI Announces Winner of the Sommelier Cup 2024

    The DWI Sommelier-Cup 2024, hosted by the German Wine Institute (DWI), concluded on January 22, 2024, with Katharina Iglesias from wineBank in Hamburg claiming the title. The event, held at the Atrium Hotel in Mainz, witnessed participation from 28 professionals across various sectors of the wine industry. While the competition’s popularity remains undeniable, a critical examination of its structure and outcomes reveals aspects worth contemplating.

    Read More »
  • Ensuring Safe Seas for Bulk Wine Shipping

    Ensuring Safe Seas for Bulk Wine Shipping

    In the world of bulk wine shipping, grasping the intricacies of marine cargo insurance is crucial. This field, unlike more uniformly regulated insurance areas such as cars, lacks a standard policy format, leading to a diverse range of coverage options.

    Expert insights from Alison Levit from Albatrans shed light on the evolving nature of shipping risks. While improved schedule reliability has been a positive development, new challenges like increased theft and potential disruptions underline the significance of comprehensive and well-structured insurance contracts.

    The Wine and Spirits Shippers Association Inc. (WSSA) has tailored insurance offerings that cater specifically to the wine and spirits sector. Their policies cover critical aspects such as temperature fluctuations, warehouse conditions, Container Transport Ready (CTR) damage, and issues specific to flexitanks.

    Insurances for Everything

     In addition to these protections, WSSA places a strong emphasis on educating those involved in the shipping process, highlighting the importance of a well-informed approach to risk management.

    All-risk insurance, a popular choice in this field, aims to protect against physical loss or damage from external factors. However, it’s essential to be aware of its limitations. For example, it doesn’t typically cover internal errors, such as improper packing or overloading.

    The financial impact of these risks is substantial. According to the WSSA the ecnonoimic loss rose up to 313 billion USD in 2022 of which about 132 billion USD was insured. The majority of damages occurred due to natural disasters, such as hurricanes or floods.  

    Bulging containers are a common insurance issue during bulk wine shipping. (Photo: Rainer Kexel INCASE AG)
    Bulging containers are a common insurance issue during bulk wine shipping. (Photo: Rainer Kexel INCASE AG)

    Efficient Shipping

    Flexitanks, a significant innovation since their introduction in the 1980s of the US-Army to transport fuel to the front lines , have revolutionized the transportation of bulk liquids. With an impressive capacity—around 24,000 liters, they also offer superior space efficiency compared to drums and Intermediate Bulk Containers (IBCs).

    Despite these benefits, flexitanks face challenges such as leakage and potential damage to container walls due to bulging. Compliance with best practice codes, although not mandatory, is crucial in mitigating these risks.

    Environmental concerns are also significant, with the recycling of flexitanks hampered by materials such as aluminum barriers, essential for contamination prevention but difficult to recycle.Iso tanks present a more environmentally friendly option, offering advantages like reduced plastic waste and multiple uses (up to 100 times). They also provide insulation against extreme temperatures, which is vital in wine transport. However, these benefits come with higher costs and limited availability.

    According to the WSSA, flexibags sometimes burst or ullage wine, resulting in oxidation due to low quality production. IN comparison, a ISO tank is more stable. In the career of a insurance man, he reported, he only had one problem as the rope of the crayon tore and the full tank fell to the ground, still being intact, suggesting it might be the safest option from the insurance point of view.

    Flexibags stand out for their affordability and availability but are generally single-use, contributing to the issue of plastic waste. Insurance costs should be calculated carefully, including the overall value of the shipment and a 10% contingency for unforeseen expenses. Specific regions, like Mexico, may require higher insurance rates due to increased risk factor, including corruption at ports and thefts.

    Statistical data indicates that about 10% of shipments encounter problems, but does not always involve complete cargo damage. The majority of claims are small, but can be beneficial for the importing party.

    The financial impact of any loss, even non-damage related, can be significant. Insuring against CTR damage is particularly important as these costs can be considerable and are typically borne by the shipper.

    Costs and Benefits

    Every insurance comes with a  cost. Looking at the numbers, shipping insurance is a no-brainer.

    Usually the shipping insurance depends on value of the product, adding all related freight charges, shipping costs, delivery costs, customs broker fees + 10%. High risk regions usually have a light increase of about 0,4%.

    Final Thoughts

    The complexity and ever-changing nature of bulk wine shipping highlight the importance of comprehensive insurance. Working with knowledgeable brokers and creating customized policies can provide robust protection against a wide array of risks. Staying informed and adaptable is essential, as is choosing insurance coverage that specifically addresses the unique challenges of shipping beverages.

    If you are interested in learning more on the WSSA, click here

    Thanks for Reading!

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 

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    Peter Douglas DipWSET on Podcast Wein Verkauft! with Diego Weber (Photo: AI generated with Adobe Firefly)

    Live on Wein Verkauft!

    I recently had the opportunity to join freelance consultant Diego Weber from Germany on his podcast, On German!. Over the course of the two-hour episode,

    Read More »
    Peter Douglas Wine Consultant

    Live on the Morning Show

    In July 2024, I had the exciting opportunity to appear on New York’s WTBQ Frank Truatt’s Morning Show, the #1 drive time morning show, with

    Read More »
    French Wine Exports Decline

    Challenging Year for French Wines & Spirits Exports 2023

    In the year 2023, the French wine and spirits sector navigated through challenging waters to post exports worth €16.2 billion. Despite representing a 5.9% decline from the previous year, this figure stands as the second-highest in the industry’s export history. The volume of exports also saw a considerable reduction, falling by 10.4%. However, the sector managed to maintain its status as the leading contributor to France’s agri-food surplus and the third largest in the nation’s overall trade balance, with a trade surplus of €14.8 billion, down by 5.8%.

    Read More »
    DWI Sommelier Cup

    DWI Announces Winner of the Sommelier Cup 2024

    The DWI Sommelier-Cup 2024, hosted by the German Wine Institute (DWI), concluded on January 22, 2024, with Katharina Iglesias from wineBank in Hamburg claiming the title. The event, held at the Atrium Hotel in Mainz, witnessed participation from 28 professionals across various sectors of the wine industry. While the competition’s popularity remains undeniable, a critical examination of its structure and outcomes reveals aspects worth contemplating.

    Read More »
  • Bulk Wine Revolution: Balancing Profit and Planet

    Bulk Wine Revolution: Balancing Profit and Planet

    On the World Bulk Wine Exhibition (WBWE) in Amsterdam, leaders in the wine industry charted a path toward sustainability, aiming to reshape the sector’s future. The Sustainable Wine Roundtable, convened on November 21st, drew around 50 professionals. Their discussion, “Breaking Traditions: How Bulk Wine Can Create Both Business and Sustainability Opportunities,” highlighted the benefits of bulk wine. Defined as unpackaged wine for bottling in the target market, it’s usually shipped in flexitanks or ISO tanks, bypassing the shipping of labeled and bottled wines.

    The Challenges

    About 40-70% of carbon emissions from wine production are attributed to glass bottles. The roundtable’s primary objective, as stated in the SWR Bottle Weight Accord, is to reduce the average weight of 750 ml wine bottles from 550g to 420g by 2026, with plans for further reductions thereafter. However, their ambitions extend beyond packaging. The SWR has recognized the wine industry’s direct experience with the impacts of climate change, as vineyards become unsustainable due to rising temperatures, extreme weather, or drought. Referencing the United Nations, they pointed out that we are on a trajectory towards a 1.9°C increase by 2100, which will significantly affect wine-growing regions, emphasizing that “there is no business on a dead planet.”

    “There is no business on a dead planet”
    United Nations
    United Nations

    Finding Solutions in Bulk Wine

    Barry Dick MW of UK retailer Waitrose initiated the event, discussing the evolving landscape of bulk wine shipping. Once viewed skeptically, it’s now seen as efficient and sustainable. “The old prejudices against bulk shipping have diminished, revealing its potential to enhance both sustainability and commercial value,” Dick said. This mirrors a broader industry trend, with Waitrose leading in using bulk shipping to improve its carbon footprint, a strategy increasingly adopted by other retailers.

    A typical flexitank, made of food-grade polyethylene (PE) with an outer layer of polypropylene (PP), costs about 600-800€. Cheaper versions are available, but likely of lower quality. Flexitanks offer logistical efficiency and increased shipping volume, and wine in a container doesn’t heat up as quickly, unlike bottled wines where temperature increases can push out corks or alter flavor profiles. Shipping in bulk, with volumes between 24,000 and 26,000 liters per 20-foot container, significantly reduces shipping costs, compared to shipping bottled goods.

    The Wine Society, since 1992, has shown adaptability in responding to changing consumer preferences. “Our current goal is ambitious yet crucial: achieving net-zero carbon emissions by 2040,” Mason stated. Their commitment includes optimizing shipping processes and transitioning to UK-based packaging.

    Free Flow Wines’ VP, Barclay Webster, showcased their model of sustainable practices, with over 90% of their wines shipped in bulk. “Our approach aligns with sustainability goals and offers flexibility in wine blending, presenting new opportunities in wine production,” Barclay noted. Their wines, sold in reusable kegs, mitigate oxidation, a common issue in the gastronomic industry. He emphasized that unlike beer or spirits, wine faces unique challenges in service by the glass.

    Simon Mason from the Wine Society introduced innovative packaging alternatives, like Bag in Box (BIB) and recycled PET bottles. “The positive reception of these sustainable solutions by our members marks a shift in consumer preferences towards environmentally friendly options,” he commented.

    Johan Arnø Kryger of the Danish Hans Just Group offered a Nordic perspective, noting the trend of BIB wines being perceived as premium, in line with sustainability objectives.

    Future Taxation?

    The roundtable discussions revealed an industry seeking a sustainability revolution. The upcoming Corporate Sustainability Reporting Directive (CSRD) is expected to be a catalyst for change. According to the EU it: “[EU law] requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment.”  Previously, Robert Malin, CEO of When in Rome, highlighted the likelihood of future taxation on emissions, underscoring the importance of emission reduction.

    The Sustainable Wine Roundtable Panel Discussion
    The Sustainable Wine Roundtable Panel Discussion

    Positive Consumer Preferences

    NielsenIQ data showed that sustainability claims significantly enhance product performance by 17%, signaling a shift in consumer preferences and influencing the industry’s sustainability strategies. Governmental roles in fostering sustainability, such as climate labeling initiatives, were acknowledged as essential, with data-driven policies promoting sustainable practices.

    As the roundtable concluded, it was clear that the wine industry, traditionally bound, is now evolving with a focus on reducing emissions, adopting sustainable packaging, and aligning with consumer preferences.

    About the Sustainable Wine Roundtable:

    The Sustainable Wine, a non-profit with over 100 members from 25+ countries, focuses on environmental challenges in the wine industry. Based in London, its mission is to mainstream sustainability in winemaking. As the online magazine of the Sustainable Wine Roundtable (SWR), it serves as a global platform for promoting sustainability and collaboration in wine. This organization shares news, podcasts with industry leaders, and SWR updates. It also organizes debates, events, and discussions on key sustainability challenges. 

    The SWR, a nonprofit, multi-stakeholder initiative, rallies the wine community towards sustainable practices, providing a framework for sustainability standards, sharing best practices in viticulture and winemaking, and serving as a center for communication and learning. Additionally, the SWR advocates for policies that reward sustainable practices in the wine industry.

    Thanks for Reading!

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 

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    Peter Douglas DipWSET on Podcast Wein Verkauft! with Diego Weber (Photo: AI generated with Adobe Firefly)

    Live on Wein Verkauft!

    I recently had the opportunity to join freelance consultant Diego Weber from Germany on his podcast, On German!. Over the course of the two-hour episode,

    Read More »
    Peter Douglas Wine Consultant

    Live on the Morning Show

    In July 2024, I had the exciting opportunity to appear on New York’s WTBQ Frank Truatt’s Morning Show, the #1 drive time morning show, with

    Read More »
    French Wine Exports Decline

    Challenging Year for French Wines & Spirits Exports 2023

    In the year 2023, the French wine and spirits sector navigated through challenging waters to post exports worth €16.2 billion. Despite representing a 5.9% decline from the previous year, this figure stands as the second-highest in the industry’s export history. The volume of exports also saw a considerable reduction, falling by 10.4%. However, the sector managed to maintain its status as the leading contributor to France’s agri-food surplus and the third largest in the nation’s overall trade balance, with a trade surplus of €14.8 billion, down by 5.8%.

    Read More »
    DWI Sommelier Cup

    DWI Announces Winner of the Sommelier Cup 2024

    The DWI Sommelier-Cup 2024, hosted by the German Wine Institute (DWI), concluded on January 22, 2024, with Katharina Iglesias from wineBank in Hamburg claiming the title. The event, held at the Atrium Hotel in Mainz, witnessed participation from 28 professionals across various sectors of the wine industry. While the competition’s popularity remains undeniable, a critical examination of its structure and outcomes reveals aspects worth contemplating.

    Read More »
  • Exploring Consumer Perceptions of Wine Packaging

    Exploring Consumer Perceptions of Wine Packaging

    In the competitive landscape of the our industry, wine packaging plays a pivotal role in shaping this experience. It’s not just a vessel for storage and transport; it’s a crucial component in consumer decision-making. Packaging serves as a silent salesman: it conveys a story, reflects the brands identity, and significantly influences consumer perception and buying behavior.

    Historical Perspective

    The journey of wine packaging through the ages highlights evolving consumer tastes and technological advancements. Traditionally, wine was stored in amphorae or wooden barrels, with glass bottles coming into prominence in the 17th century.

    The classic Bordeaux bottle, with its distinct high shoulders, and the sloping design of the Burgundy bottle, are more than just containers; they are symbols of heritage and quality. These traditional designs have withstood the test of time, continuing to dominate consumer preferences due to their association with authenticity and prestige. However, the 20th and 21st centuries saw a shift with the introduction of screw caps, synthetic corks, and even box wines, challenging the norms and offering practicality and innovation.

    These changes reflect not only technological advancements but also a shift in consumer attitudes towards convenience, cost, and environmental concerns.

    Psychological Impact of Wine Packaging

    The influence of wine packaging on consumer psychology is profound and multifaceted. Color, for instance, plays a crucial role. Darker bottles are often associated with premium wines, while clear or light-colored glass is typically used for lighter, more refreshing varieties.

    The shape of the bottle also sends subtle cues; traditional shapes are often preferred for classic wines, whereas innovative shapes can attract a younger, more adventurous demographic.

    Material choice further impacts perception—glass conveys quality and tradition, whereas alternative materials like plastic or cardboard can signify affordability or eco-friendliness. Moreover, tactile elements like embossing or unique textures can enhance the perceived value and quality of the wine. These packaging elements work together to create a sensory experience even before the wine is tasted, influencing consumer expectations and ultimately their purchasing decisions.

    The Role of Label Design

    Wine label design is a critical aspect of packaging that directly influences consumer perception and choice. It’s the visual identity of the wine, a blend of art and marketing that speaks volumes to the consumer.

    The label’s imagery, font, and color scheme can evoke emotions, tell a story, and convey the brand’s personality. For instance, classic labels with elegant fonts and subtle colors often appeal to consumers looking for traditional, high-quality wines. In contrast, modern labels with bold colors and innovative designs can attract a younger, more adventurous demographic seeking novelty and experimentation.

    The balance between tradition and innovation in label design is a tightrope walk; it must resonate with the target audience’s preferences while maintaining the essence of the brand. Additionally, the information presented on the label, such as the origin, grape variety, and vintage, plays a crucial role in informing and guiding the consumer’s choice, particularly among more knowledgeable wine enthusiasts.

    Packaging Types and Consumer Preferences

    The diversity in wine packaging types is a response to the broad spectrum of consumer preferences and market demands.

    Traditional glass bottles continue to dominate, favored for their classic appeal and ability to preserve wine quality. However, alternative packaging forms like box wines and canned wines are gaining traction, particularly among younger consumers who prioritize convenience and portability.

    BiB wines, once synonymous with lower quality, have seen a surge in popularity as improvements in packaging technology have enhanced their ability to maintain wine integrity.

    Cans, on the other hand, cater to the growing trend of casual, on-the-go wine consumption. These variations in packaging also reflect regional preferences and cultural influences. For instance, in some European markets, traditional glass bottles remain the preferred choice, while in more dynamic markets like the United States, there’s a growing openness to alternative packaging options.

    Understanding these preferences is crucial for winemakers and marketers to effectively target their audience and adapt their packaging strategies accordingly.

    Moving Away from Glass. The Sustainable Shift

    Have you ever wondered if there’s a sustainable  correlation between the weight of a wine bottle and the perceived
    quality of its contents? It’s a commonly held belief in the consumer market that a heavier bottle indicates a superior wine.

    Sustainability and Packaging

    Sustainability in wine packaging has become an increasingly important consideration for consumers. Environmental awareness and a desire for eco-friendly products are driving changes in packaging choices in the wine industry.

    Glass, while traditional and favored for its inert properties, has a high carbon footprint due to its weight and the energy required in production and recycling.

    In response, there’s a growing interest in lighter glass bottles, recyclable PET bottles, and biodegradable packaging materials. Sustainable practices also extend to label production, with a shift towards using recycled paper and soy-based inks. Some players are actively promoting the reduction of the carbon emissions of the wine industry. The British non-profit organization Sustainable Wine is advocating lighter glass bottles. 

    Some wineries are even adopting minimalist packaging designs to reduce material use. Consumer response to these green initiatives has been overwhelmingly positive, especially among environmentally conscious demographics. This shift not only reflects a commitment to environmental stewardship but also resonates with a consumer base that increasingly values sustainability as a key decision-making factor in their wine purchases.

    Technology and Innovation in Packaging

    As the world turns, even wine packaging is evolving. Emerging technologies like smart labels and augmented reality (AR) are transforming how consumers interact with wine brands.

    Smart labels equipped with NFC (Near Field Communication) chips or QR codes offer consumers a gateway to a wealth of information — from the wine’s origin and tasting notes to food pairing suggestions. This technology enhances consumer engagement, offering a more immersive experience that goes beyond the physical label.

    Augmented reality takes this a step further by bringing labels to life. Through AR apps, consumers can watch a label’s story unfold in front of their eyes, providing a unique and interactive experience. This blend of technology and storytelling is particularly effective in attracting tech-savvy younger consumers, who value both the product and the experience it offers.

    Innovation in wine packaging also extends to functionality. The development of resealable bottles and improved preservation technologies reflects a growing consumer demand for convenience and quality. These innovations cater to a market segment that values flexibility—the ability to enjoy a single glass of wine without compromising the rest of the bottle.

    Wine packaging is getting lighter. The traditional 550g has been reduced to 420g. The next goal is to further reduce bottle weight to 300g. Maybe an alternative would be easier to implement?
    Wine packaging is getting lighter. The traditional 550g has been reduced to 420g. The next goal is to further reduce bottle weight to 300g. Maybe an alternative would be easier to implement?

     

    The integration of technology in wine packaging shows the the industry’s adaptability and commitment to enhancing consumer experience.

    It adds value to the product and creates new avenues for brand differentiation and consumer engagement.

    The world of wine packaging is a complex interplay of tradition, innovation, aesthetics, and functionality. It is clear that consumer perceptions are significantly influenced by various aspects of packaging—from the tactile feel of the bottle to the digital experiences offered by smart labels. As the wine industry continues to evolve, so too will the ways in which wine is presented, sold, and enjoyed.

    Sustainability, technology, and consumer preferences drive continuous change in packaging strategies. What remains constant, however, is the importance of packaging in communicating a brand’s identity and values, and in influencing consumer choice.

    In the future, we can expect to see further innovations in packaging, driven by sustainability concerns, technological advancements, and shifting consumer preferences.

    The challenge for winemakers and marketers will be to balance these dynamic elements while staying true to the heritage and quality that wine enthusiasts cherish.

    The bottle, label, and closure—each element of packaging plays a crucial role in shaping consumer perceptions.

    Understanding and harnessing these elements is key to success in the increasingly competitive and diverse world of wine.

    How are you addressing the consumer needs?

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    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion.

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  • Fine Wine: Market Corrections in the Power 100

    Fine Wine: Market Corrections in the Power 100

    The Liv-ex Power 100 of 2023 reflects the international fine wine market as it undergoes a significant correction. Covering data from 1st October 2022 to 30th September 2023, this annual ranking serves as a barometer of the wine trade, showcasing a landscape defined by caution and recalibration. The rankings are calculated based on various weighted criteria, including price performance, the number of a brand’s wines traded, and the cumulative value and volume of those trades over the specified period.

    Market Corrections

    The past year has seen major indices retreat by over 12%, with trading activity on Liv-ex reflecting this downturn. This correction is most evident in the Bordeaux 500 and the Liv-ex Fine Wine 1000 sub-indices like the Rhône 100 and Champagne 50, which have plummeted by 20.6% and 19.4% respectively. Trade volume and value, mirroring these indices, have also dipped.

    Shifts in Collector Preferences

    In a market characterized by rising risk aversion, collectors are turning towards safer bets. Top brands from Burgundy and California, long favored by connoisseurs, are witnessing a narrowing focus.

    Bordeaux, with its reputation for reliability familiarity and volume, has emerged as a beneficiary, adding five wines to the Power 100. On the flip side, the performance of major red Burgundy producers has been hampered by limited price growth, while white Burgundy labels have enjoyed increased prominence in the Power 100.

    Diverse Fortunes

    California’s Challenge

    The state, a major player in the fine wine market, has seen a decline in its representation in the Power 100. Despite maintaining a steady trade share, high-value brands like Scarecrow have faced price corrections. The market’s pivot towards more secure, well-understood wines like Bordeaux is evident.

    Burgundy’s Mixed Bag

    Burgundy parallels California’s trend but with a mainstream edge. The Burgundy 150 index experienced a rollercoaster, climbing 68.4% from early 2021 to late 2022, then retracting 15.4% annually. The 2023 Liv-ex Classification shows a pivot towards more affordable Burgundy labels, a shift first noted in the 2022 Power 100, driven by the appeal of négociant labels linked to prominent estates.

    However, this rise in certain labels, like Charles Lachaux, wasn’t sustainable, leading to a recent decline in demand. Consequently, in the 2023 Power 100, renowned brands such as Domaine Arnoux-Lachaux felt the impact in both price performance and trade value. Amid these shifts, some, like Kei Shiogai, bucked the trend, recording a significant 185.7% increase in Market Price, landing it in the 94th spot in the Power 100. 

    Bordeaux’s Resilience

    Bordeaux stands out as the clear winner in these turbulent times. Its addition of five wines to the Power 100 underscores its position as a safe haven for investors and collectors. Brands like Vieux Château Certan and Château Léoville Barton, known for their stability, have re-entered the Power 100, reflecting the market’s gravitation towards less volatile investments.

    The High-Performing Fine Wine

    Italy welcomed an additional brand, Vietti, to its ranks, notable for its impressive performance in terms of the number of wines traded (jumping from rank 117 to 62). Similarly, Dominio de Pingus (increased from 119 to 79) emerged as the second Spanish brand to make it into the Power 100, alongside Vega Sicilia, driven by its strong price performance and significant trade value and volume on the exchange, particularly for its PSI and Flor de Pingus labels. Additionally, a Swiss brand, Gantenbein (rising from 194 to 155), marked its entry into the rankings with an outstanding 10.8% price performance.

    The top 10 leaders on the board are (brackets indicate their positions from the previous year).

    1. Domaine Leflaive, Burgundy (3)
    2. Château d’Yquem, Bordeaux (19)
    3. Meo-Camuzet, Burgundy (26)
    4. Opus One, California (82)
    5. Joseph Drouhin/Drouhin-Vaudon, Burgundy (23)
    6. Château Cheval Blanc, Bordeaux (17)
    7. Gaja, Piedmont(38)
    8. Henri Boillot, Burgundy (54)
    9. Château Angelus, Bordeaux (65)
    10. Leroy, Burgundy (1)

    The Biggest Losers

    Burgundy notably dominated both the biggest gainers and losers in this year’s Power 100, supporting the idea that wines that climb rapidly also face steep corrections.

    Major red Burgundy brands, including Arnoux-Lachaux, Prieuré Roch, Coche-Dury, Armand Rousseau, and Domaine de la Romanée-Conti, experienced significant drops.

    The trend shows that for high-ranking wines like Champagne’s Salon, sharp declines can be quite drastic.

    Biggest Fallers Within the Power 100

    1. Arnoux-Lachaux, Burgundy: from 2 to 99
    2. Jacques Selosse, Champagne: from 11 to 92
    3. Prieure Roch, Burgundy: from 5 to 85
    4. Des Comtes Lafon, Burgundy: from 21 to 84
    5. Armand Rousseau, Burgundy: from 4 to 64
    6. De la Romanee-Conti, Burgundy: from 8 to 67
    7. Jacques-Frederic Mugnier, Burgundy: from 9 to 68
    8. Coche-Dury, Burgundy: from 22 to 80
    9. Chapoutier, Rhône: from 37 to 95
    10. Ponsot, Burgundy: from 31 to 87

    A Market in Flux

    The 2023 Liv-ex Power 100 illustrates a fine wine market in the midst of a significant correction. The trends are clear: there’s a flight to quality and safety, with Bordeaux emerging as a haven amid uncertainty. Meanwhile, prestigious regions like Burgundy and California face challenges as the market recalibrates. The Power 100 not only reflects these shifts but also offers insights into the evolving preferences and strategies of collectors and investors in a changing landscape.

    Thanks for Reading!

    Glad you dropped by! If the insights here struck a chord, why not share them? And if you’re eager to talk more, I’m all ears – just reach out. Looking for someone to spark inspiration in your masterclass or brand event? Let’s talk and set up something amazing.

    Disclaimer

    This text was neither commissioned nor compensated. It reflects exclusively my own opinion. 

    Source. Liv-Ex

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