the market for organic wines in sweden, by bkwine, per karlsson

The Swedish Wine Market and

Organic Wines Per Karlsson

BKWine BKWine.com

Millésime Bio 2015

Per Karlsson, BKWine • Journalist and writer

– BKWine Magazine

• Wine photographer – BKWine Photography

• Tour operator, specialist on wine tour and oenotourism – BKWine Tours

• Swedish, but based in Paris since many years

• Co-author of book on organic and biodynamic wines and environ-mental issues in wine production

http://www.bkwine.com/our-books/biodynamic-organic-and-natural-winemaking-sustainable-viticulture-and-viniculture/introduction/

Per Karlsson, BKWine Magazine, Millésime Bio, 27 January 2015






















Sweden, a small(ish) country

1. United Kingdom, 3944M€

2. USA, 3938 3. Germany, 2393 4. Canada, 1540 5. China, 1229 6. Japan, 1225 7. Belgium, 964 8. Switzerland, 925 9. Netherlands, 872 10. Russia, 817

11. Hong Kong, 806 12. France, 631 13. Sweden, 540 14. Denmark, 498 15. Australia, 464 16. Singapore, 369 17. Norway, 318 18. Italy, 305 19. Ireland, 247 20. Brazil, 234

The world’s biggest wine importers (2012, source OIV), millions euro:


But a growing wine market

But difficult but improving for France… Main suppliers to Sweden: 1. Italy, 52.6 Mhl (+) 2. South Africa, 27.9 Mhl (--) 3. France, 21.6 Mhl (+) 4. Spain, 18.4 Mhl (-) 5. Australia, 17.1 Mhl (-) 6. Chile, 14.5 Mhl (+) 7. USA, 11 Mhl (-) 8. Germany, 7.5 Mhl (-) 9. Argentina, 7.2 Mhl (++) 10. Portugal, 5.1 Mhl (-)


Sales Evolution Organic

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Organic Wine Sales (litres)

OrganicWine Sales(litres)

+100%

-3% +0%

+40% +45%

+64%

+82%

+24%

April 2012 Natural wines

Year-on- Year Change

November 2013 “Cold Facts”. (& SB targets?)


Huge increase in Organic sales! +100%

• Why?

• The monopoly! – Favouring organic

– Special tenders

– Special shelf markings

– Self-service shops

– Sales target: 10% by 2020

• But also a big(ish) consumer trend – Organic food +30% H1-14


Total Wine Sales in Sweden

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

OrganicWine Sales(litres)

Total WineSales

Of which Organic 1% 10.8%


Biggest Selling Organic Wines

Product name Producer Type Price SEK Packag

e Country Sales Liter 2014

1 Ecologica Shiraz Malbec La Riojana Red 199 BiB Argentina 1,634,904

2 il Nostro Catarratto Grecanico Nordic Sea Winery White 164 BiB Italy

1,462,056

3 Gosa Monastrell Bodegas Juan Gil Red 185 BiB Spain 1,362,861

4 Tommolo Chiusa Grande Red 199 BiB Italy 966,870

5 Adobe Cabernet Sauvignon Syrah Carmenere Viñedos Emiliana Red 199 BiB Chile

802,137

6 ¿Qué Pasa? WineWorld AB Red 229 BiB Chile 790,539

7 Prosecco Pizzolato La Cantina Pizzolato

Sparkling 79 Btl Italy

748,868

8 Mandala Sauvignon Blanc Chenin Blanc Chardonnay Stellar Winery White 188 BiB

South Africa

607,641

9 Pasqua Sanzeno Garganega Chardonnay Pasqua White 199 BiB Italy 538,737

10 Las Moras Reserve Chardonnay Finca Las Moras White 229 BiB Argentina 525,090


Biggest Selling French Organic Product name Producer Type Price SEK Package Country

Sales Liter 2014

17 Brochet Facile Sauvignon Blanc Nordic Sea Winery White 69 Btl France France 304,481

24 Le Bistro Tina Les Domaines Auriol Red 69 Btl France France 241,847

28 Tina Chardonnay Reserve Les Domaines Auriol White 239 BiB France Languedoc-Roussillon

194,886

32 Biecher Riesling Jean Biecher White 79 Btl France Alsace 188,879

37 Coteaux d'Aix en Provence Gassier Gassier en Provence Rosé 251 BiB France Provence 172,053

40 Terre de Mistral Reserve Côtes du Rhône Organic

Les Vignerons d'Estezargues Red 245 BiB France Rhonedalen

160,812

54 Marie d'Alsace Jean Biecher White 77 Btl France Alsace 124,052

55 Château Pech-Latt Château Pech-Latt Red 99 Btl France Languedoc-Roussillon

123,607

56 Mas Louise Duseigneur Red 95 Btl France Rhonedalen 120,653

61 Brochet Facile Sauvignon Blanc Nordic Sea Winery White 219 BiB France France 105,828

87 Montmija La Chapelle GSM Les Domaines Auriol Red 69 Btl France Languedoc-Roussillon

52,920

95 Les Pious Côtes du Rhône REMI POUIZIN Red 90 PET France Rhonedalen 40,319

106 Paul Sapin Chardonnay Paul Sapin White 69 PET France Languedoc-Roussillon

34,409


A monopoly, but…

• Alcohol consumption comes from

– Systembolaget: 59% (what a monopoly!)

– Foreign travel: 16%

– Restaurant sales: 10%

– Smuggling: 6%

– Grocery shops (low alcohol beer): 6%

– Home-made: 1.7%

– Internet shops: 1.7% (*)


Selling to Systembolaget

Potentially very big gains. But not all rosy.

• You have to go through an importer.

• Much (but not all) sales are done through requests for tenders

• There are no long term contracts

• It can be a curse in disguise. Winning a tender might engage you to large supplies. If you cannot supply you may be delisted.

• A monopoly is not like other customers


Selling almost through the monopoly

The On-Order Range (Bestallningssortimentet), also called “private import”

• Anything that a licensed importer wants to sell

• Mostly small quantities (unless very cheap)

• Expensive way to sell the wines

• If it sells very well it is a back-door

Thank you EU!


Selling to Restaurants

An interesting option for smaller wineries

• You have to go through an importer

– But some restaurants are importers too

• Some restaurants see it as a competitive advantage to have wines that are NOT available at the Systembolaget monopoly

• Possibly less price pressure

• Easier client relationship (perhaps)


New Opportunity: internet shops

• It is legal to sell direct to consumers, if…

– Seller is outside Sweden but in the EU

– VAT and taxes paid in Sweden

– Plus some other stuff

• 40+ “Swedish” internet wine shops

– Some even specialised in Organic

A list on BKWine.com! http://www.bkwine.com/features/more/swedish-internet-wine-merchants/


http://www.bkwine.com/features/more/swedish-internet-wine-merchants/









Sell to Systembolaget?

• If you want to sell in the traditional way:

• Find an importer

– Big and successful, or small and specialised?

• Understand the system of “tenders”

• Go to Sweden to meet…

– …journalists, importers, Systembolaget, consumers


Finding an importer

• Look at our list – “all importers”

– Biggest players

• Big player or niche?

• Monopoly focus or restaurants?

• Organic specialist?

• A list on BKWine.com http://www.bkwine.com/features/more/swedish-wine-importers/

and http://www.bkwine.com/features/more/swedens-10-largest-wine-importers/

• Top 10 (2013, 63% mkt share)

– Altia Group (Philipson Soderberg, Bevco, Bibendum…)

– Vingruppen (Vinunic, Vinovum, Kajsa, Wineworld…)

– Primewine (BGS, Mondo, Multibev…)

– Oenoforos (Carovin)

– Viva Group (Chris, Giertz, Mero, Wine Team…)

– Hermansson – Pernod Ricard – Enjoy – Treasury – Winepartners


http://www.bkwine.com/features/more/swedish-wine-importers/







http://www.bkwine.com/features/more/swedens-10-largest-wine-importers/










Challenges

• BIG confusion in “labellings” and certifications: organic, biodynamic, “krav”,…

– Both consumers and media are confused

• BIG confusion with “sustainable” as well as “ethical” labellings, Fair Trade…

• Few people know what it is!


More challenges

• Consumers and media (!) often think certification is useless. – Or even that it is just for “marketing”

• Some consumers and media (!) are ferociously negative (and often misinformed on what it is). Especially negative to biodynamic.

• Few purposefully choose organic wine, but are OK with it if they get it

• Has had a reputation for lower quality (but now perhaps the opposite)


Even more challenges, or not

• Swedes are very much influenced by media

• Journalists have big impact on wine consumer choices

• Sweden tend to be a one-issue country also for wine:

– South Africa, Italian amarone, … Organic?


Swedish consumers like…

• Bag in box (look at sales statistics!) and screwcap

• Full-bodied wines (New World, amarone…) – Wine is not only drunk with food

• Modern packaging design

• Not very interested in “appellations”

• France is gaining ground (a little) – France has a strong position in premium

• Trends…


What to do?

• Go there and see for yourself • Find an importer or a local partner (e.g. web

shop) • Understand

– the different channels to market – the Swedish taste – Swedish market dynamics (journalists, press, bloggers)

• Adapt your product if needed (taste profile, packaging, labelling)

• Start small


Thank you!

Per Karlsson

BKWine

BKWine Magazine

www.bkwine.com

BKWine Tours

www.bkwinetours.com

www.bkwinevinresor.com

[email protected]

This presentation will soon be available as an article on BKWine Magazine here: www.bkwine.com. Subscribe to our newsletter, the BKWine Brief!


http://www.bkwine.com/

http://www.bkwinetours.com/

http://www.bkwinevinresor.com/

http://www.bkwine.com/

the market for organic wines in sweden, by bkwine, per karlsson

Food

karlsson bkwine

bib italy

organic sales

millsime bio

bkwine journalist

bib argentina

bib chile

bib spain