the spanish wine market: where does it...
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27/04/2015
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The Spanish Wine Market:
Where does it go?
Ricardo Sellers-Rubio
Index
I. The Spanish wine industry
Wine in figures: supply and demand
II. Wine marketing in Spain
III. Case study: Bodegas Enrique Mendoza
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I. The Spanish wine industry
Vinyards and wine production Wine Industry Wine Exports Domestic market
Vinyards and wine production
• 954.378 Has.(MAGRAMA Nov 2014)
• 41,6 mill. Hltrs.(MAGRAMA Nov 2014)
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Wine production (Mill. Hl.)
0
10
20
30
40
50
60
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
30 mill. Hltrs 40 mill. Hltrs
• From the 2014 harvest:– 51.1% will go to red and rose wines– 48.9% will go to white wines
• The most common grape types in Spain are:– Airén (23.5% - W)– Tempranillo (20.9% - R)– Bobal (7.5% - R)– Red Garnacha (R), Monastrell (R), Pardina (W), Macabeo
(W) and Palomino (W).
Wine production
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• Firms: +4.500 wineries
• Sales: 6.465,3 mill. Eur.
• Employees: 24.051 pax.
(INE – 2013)
Wine industry
Wine industry
• It is estimated that about 4.500 wineries make stillwines, sparkling wines and liqueur.
• For the most part, these are small businesses, familyowned, while a great number of them are made upof agrarian co-operatives.
• It is also highly concentrated: 5 top companiestogether hold almost 28% of the market.
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Major players in this sector:
• Freixenet• J. García Carrión• Codorníu• Arco Wine Invest Group• Grupo Domecq Bodegas• Grupo Miguel Torres• Félix Solís Avantis• Grupo Faustino.
Regulations Governing Wine in Spain:
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• 90 PDO:– 67 Denomination of Origin (DO)– 2 Qualified Denomination of Origin (DOCa)– 7 Quality Wine with a Geographical Indication
(“Vino de Calidad”)– 14 Qualified Estate Wine (“Vino de Pago”)
• 41 PGI:– Country wines (“Vino de la Tierra”)
Regulations Governing Wine in Spain:
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Winery 8
Winery 7
Winery 5
Winery 4
Winery 2
Winery 3
Winery 9
MARKET
Winery 1
P.D.O.
P.D.O.
P.G.I.
Winery 6
J. García Carrión: Pata Negra(PDO: Rioja, Rueda, Ribera del Duero, Valdepeñas and
Cava)
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Wine of theyear XXX
“Cosechero”
Crianza Reserva GranReserva
Regulations Governing Wine in Spain:
Ageing Total Months(minimum)
OakContainers(max. 330 lts)
CrianzaWhite and Rosé 18 6
Red 24 6
ReservaWhite and Rosé 18 6
Red 36 12
GranReserva
White and Rosé 48 6
Red 60 18
Regulations Governing Wine in Spain:
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Wine exports
• Firms: 3.897 wineries• Volume: 22,43 mill. Hl.• Value: 2.518 mill. Eur.• Price: 1,15 €/l
(AEAT – 2014)
0
5
10
15
20
25
1987
1988
1989
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1994
1995
1996
1997
1998
1999
2000
2001
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2007
2008
2009
2010
2011
2012
2013
Exports
1.244 mill. €
2.548 mill. €
Wine exports (Mill. Hl.)
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• Europe: 1.755,5 mill. Eur. (69,7%)– UE (1.567,1 mill. Eur.): Germany, UK and France.
• America: 431,7 mill. Eur.– USA
• Asia: 212,8 mill. Eur.– China
• Africa: 90,7 mill. Eur.• Australia and NZ: 15,2 mill. Eur.
Wine exports
Domestic market
• Value: 2.455,3 mill. Eur.• Volume: 9,48 mill. Hl.• Price: 2,59 €/ltr.• ±18 ltrs./person
(MAGRAMA - 2014)
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0
5
10
15
20
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Domestic
Domestic market (Mill. Hl.)
2.455 mill. €
0
5
10
15
20
25
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Exports Domestic
Wine exports & Domestic market
2.548 mill. €
2.455 mill. €
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0
2
4
6
8
10
12
14
16
18
20
1990
1991
1992
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1994
1995
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1998
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2000
2001
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2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Home HORECA Direct
Domestic market (by distribution channel)
• The domestic consumptionof wine in Spain shows
worrying figures.• It is estimated 18 litres per
person per year.
Why do the Spanish drink so little wine?
Domestic market
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Reasons for not drinking wine
• “I don’t know about wine”• “I don’t understand the wine vocabulary”• “Wine is expensive (specially in restaurants)”• “My parents drink wine”• “Wine is old fashioned”• “Drinking wine is not cool”
Qualitative research (UA – 2013)
II. Wine Marketing in Spain
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Wine Marketing
“Success is NOT making great wine!
It is making wine and selling it at a
great profit”.
Paul Wagner(Balzac)
Bottle Red: 4,70 cts
Bottle White: 4,15 cts
PRODUCT
PRICEPROMOTION
PLACEMarketing – Mix
Strategy
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Intrinsic attributes:
Extrinsic attributes:
Wine Marketing: The product
Organoleptic properties: Grape Alcohol volume Year Flavour Etc.
Packaging Brand/LabelWinery PDO Etc.
WINEOrganoleptic Characteristics
GrapeAlcohol volume
YearFlavour
etc.
Bottle
Label
Back-Label
Winery
PDO
Brand
Packaging
Cork
Services Credit
PromotionLogistic-Delivery
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Bodegas Bocopa(PDO Alicante)
"con tan sólo 50kilocalorías por copa“
"igual que unamanzana“
"cuida tu salud desdedentro“
"con antioxidantes yaminoácidos naturales"
Bodegas Valduero: 9 Sobresaliente(PDO Ribera del Duero)
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Wine Marketing: The packaging
Celler del Roure: Setze Gallets(PDO Valencia)
5 euros / bottle of 750 ml
16 euros / pack (4 bricks of 750ml.)
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Azpilicueta(PDO Rioja)
1. Clasical approach
2. Artisan/Natural approach
3. Modern approach
Rouzet and Seguin (2004)
Wine Marketing: The brand/label
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1. Clasical approach.
Wine Marketing: The brand/label
2. Artisan/Natural approach
Wine Marketing: The brand/label
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3. Modern approach.
Wine Marketing: The brand/label
3. Modern approach.
Wine Marketing: The brand/label
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3. Modern approach.
Wine Marketing: The brand/label
Bodega Matsu (Vintae Group)(PDO Toro)
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