Wine Industry Report

Export strategy of the German Wine Institute favors value over volume | Spätburgunder (Pinot Noir) follows Riesling in export markets | New markets on the export horizon: Poland, Switzerland and Ireland

According to the institute’s managing director, Monika Reule: “We see greater growth potential for our wines in these three markets, and because they are relatively small, we can make an impact with relatively low budgets.” Nevertheless, some 70% of the export marketing budget will continue to be invested in the four most important export markets, namely: Great Britain, USA, The Netherlands, and Japan. In addition, activities will continue in Canada, Belgium, Sweden, Norway, Finland, Denmark, Russia and Korea.

Other potential markets that bear close watching include China and India. Successful business relations have already been established, but the German Wine Institute does not foresee establishing a direct presence in these markets as yet, since the level of investment necessary is much higher than present overall budget commitments permit.

Create Enthusiasm Among Opinion Leaders
All activities in foreign markets are geared to reaching opinion leaders in the trade, hospitality branch (restaurateurs/caterers/hoteliers), and the press. German Wine Institute export marketing concentrates on promoting the image and sales of German wines in the middle price and premium segments. “The goal of our future export marketing efforts is not to increase the volume of exports, but rather the value of wines exported. Recent years have shown that simultaneous increases in domestic and foreign demand are quickly at odds with the supply available,” says Monika Reule.

In foreign supermarkets with high sales, for example, where consumers are not particularly wine savvy, consumer reach for German wines means supplying attractive visuals, uncomplicated designations, and value for money. Enjoyment at a reasonable price.

Riesling has Opened Doors
Riesling remains the German Wine Institute’s leitmotif. The worldwide success of German Rieslings in recent years has sparked an interest in German wines in general – thereby opening doors for other varietals “made in Germany.” This is particularly true of Spätburgunder (Pinot Noir), the Burgundian varietal. German versions are second to none in terms of quality, and there are also sufficient quantities available for export markets. After France and the USA, Germany is the world’s third-largest producer of Spätburgunder wines. Spätburgunder is the ideal red-wine complement to Riesling – internationanl demand for both grapes is strong at present. Both thrive in cool climates, clearly reflect their terroir, yield wines with a fruity character, and are excellent partners with food.

Measures to Foster Sales and Image
For quite some time, the wine institute’s international efforts have been geared more to wine and lifestyle, i.e. “experiencing wine,” than a purely educational approach. The institute has tried to rejuvenate the image of German wines, for example, by incorporating the dynamic, younger generation of wine-growers, collectively known as “generation Riesling,” into its activities.

Once again, in the coming year, there will be more than 40 informative trips through German wine country for members of the press and the trade, as well as sommeliers, from around the world. Themes range from modern lifestyle cuisine to mature vintages and wine tourism.

In addition, the wine institute will support German wine producers by providing a national presence with joint stands at important international trade fairs, e.g. Vinexpo Hong Kong, or offering auxiliary programs for international visitors to ProWein in Düsseldorf, or organizing special presentations at trade fairs, e.g. “Riesling & Co. Room” at the London International Wine & Spirits Fair.

The successful “Riesling & Co. World Tour” series of wine presentations with up to 70 German exhibitors will be repeated again in 2008 – to acquaint wine professionals from San Francisco to Tokyo with German wines. All activities will be accompanied by PR measures, including press releases and conferences, and information will be accessible via Internet in ten different languages.

Continuity Pays Off
In closing, Monika Reule summed up: “Ongoing export growth confirms that our strategic efforts during the past few years – in cooperation with wine producers – are on the right track. This is the path we’ll continue to follow.”