di Werner Engelhard, Chefredakteur WEIN+MARKT Evento organizzato da DuPont: International Wine Grape Symposium. Lazise, 6 aprile 2011

1. the german wine market:
well prepared for the
casting show?
Werner Engelhard
Chefredakteur WEIN+MARKT

2. 2:5
Inter Mailand - Schalke 04

3. frame conditions – key figures
ca. 82 Mio. inhabitants (huge potential)
24,3 l per capita consumption wine and sparkling wine
ca. 20 Mio. hl market volume wine and sparkling wine
ca. 9% of world wide wine and sparkling wine consumption
Germany is like your little finger:
not necessary to survive, but very useful to work successfully and efficiently
especially because the situation in other important wine importing countries like UK, USA
or Russia is no longer as profitable and funny as it used to be
and emerging markets in Asia or South America are not that easy to conquer, as well.

4. Nr. 1 import market (volume):
very attractive, but very aggressive
14,64 Mio. hl import volume (+1,2%)
2,08 Mrd. Euro import value (+2,9%)
1,42 Euro/l average import price
(source: Deutscher Weinbauverband)

6. german “Trinkweinbilanz” 2009/2010:
quite solid and stable, but saturated
during worldwide economic crisis, german wine market was shrinking by only
2,7%.
and it was recovering quite fast in 2009/2010. Volume increased by 1,8% and
almost reached the former level.
this shows: the german market is quite solid and stable, even in times of crisis.
if you believe in what market researchers and economic analysts say, there will
be 7 fat years for german economy.
- german economy was growing in 2010 by 3,6% (BIP)
- according to the forecasts, analysts expect a further increase in 2011 of 2,3%
- the export business of german companies is booming
- the number of unemployed people is shrinking (ca. 3,3 Mio.)
- and the consumer sentiment is improving
--- all this can benefit the wine business
but the long-term comparison of the Trinkweinbilanz reveals as well, that there is
no real growth on the german wine market, as well.
the market is absolutely saturated.
--- growth is possible but it is mainly growth by displacement of others

7. displacement works like this ...
Netto Promotion
2010/2011

8. or like that ...
Lidl Promotion
Jan. 2011

9. even in mailorder business ...
Hawesko Promotion
Jan. 2011

10. 12 bottles of wine
+ 6 specialties
+ 12 plates/crockery
Giordano
Nov. 2010

12. displacement in
distribution channels

13. huge price aggressiveness
entry consumer prices for basic articles in german off-trade*
Bordeaux AC/AOP 1,99
Chianti DOC 1,99/2,49
Gran Reserva 2,99
Chardonnay New World 1,99
Prosecco Frizzante 1,99
German Riesling (l) 2,59
Champagne 11,99
* March 2011

14. the other side of the medal: premium offense
Aldi and Lidl
x-mas 2010

15. discount shops: 4 ways to grow
1. increase of outlets
2. number of articles
3. frequency of promotions
4. increase of margins
… new chances to get in and good times for trading up conceptions
(even if you don‘t get a standard listing)

16. problems
more than 100.000 wines
no demand for any additional wine
all claims are occupied
concentration process: big players become stronger and stronger
- for example takeover of Plus by Netto (Edeka) and Penny (Rewe)
- takeover of Trinkgut by Edeka Rhein-Ruhr
less players = less opportunities for listings

17. problems
concentration process in buying
-for example Rewe Für Sie
(better conditions mean lower margins for suppliers)
concentration process among distributors
-for example Bremen (Eggers & Franke Gruppe)
maximum of 50-70 efficient distributors left
(for thousands of producers)
again: all claims are occupied!
there‘s no need for any additional supplier

18. distributors define key suppliers/brands
pressure on prices, margins and conditions forces distributors to
define key suppliers/key brands on which they focus their
market investment/support
for your success it‘s extremely important to be among the key
suppliers; it doesn‘t help you to be nr. 21 in the portfolio
the way to the wine cellar of german consumers leads through
distributors and buyers in the on- and off-trade
producer --- distributor --- buyer on-/off-trade --- consumer
an efficient distributor is an important key to success

19. wine selling in Germany
is like a casting show !

20. what can you offer to the jury?
better prices?
better qualities?
better price-quality-relationship?
better service?
better margins?
better concepts?
better story (emotions)?
better certificates?
better support in terms of manpower?
better support in terms of promotion budgets?
what else?
if you want to be successful, you have to be well prepared!

21. but what kind of wine concepts does the
german market need?
don‘t ask me, ask your distribution partner
(psychological aspect)
listen to your customers
and develop a strategy together

22. the basic lessons of your homework
first step: analysis - what can I offer to the german market?
what‘s my USP?
where is my market gap, my market niche?
who are my main competitors?
what can I do better than they can?
how big are my capacities?
which distribution channels can I supply in Germany?
who are the relevant distributors for these distribution channels?
is there a gap in their portfolio, I can fill?
or do I have to kick out a competitor?
what makes more sense? one general importer for all my brands, different
importers for my different brands or several regional distributors?
how much do I have to spend for listing fees?

23. the show must go on ...
being listed in the portfolio of a distributor or a trade partner is only
the first step.
it‘s no reason to lean back and relax – as the show must go on
together with your distribution partner(s) ...
define marketable wines (marketable qualities, outfits and prices)
define realistic sales volumes
based on this develop a sales and marketing plan
including a budget for advertising, promotions at the POS,
personal presence at presentations, fairs, events, visits of important
trade partners and, and, and ...

24. showing your flag is absolutely necessary ...

25. ... or you‘ll get lost in the jungle

26. Metro Weinhumidor, Düsseldorf

27. Metro Weinhumidor, Düsseldorf

28. Metro Weinhumidor, Düsseldorf

29. Fegro/Selgros
„Gastromarkt“,
Neu-Isenburg

30. Fegro/Selgros
„Gastromarkt“,
Neu-Isenburg

31. TV Campaign
Edeka

32. TV Campaign
Edeka

33. flagship store
of Edeka Südwest
Scheck-In,
Frankfurt/Main

34. flagship store
of Edeka Südwest
Scheck-In,
Frankfurt/Main

35. flagship store
of Edeka Südwest
Scheck-In,
Frankfurt/Main

36. flagship store
of Edeka Südwest
Scheck-In,
Frankfurt/Main

37. Rewe Aupperle,
Fellbach bei Stuttgart

38. Rewe Aupperle,
Fellbach bei Stuttgart

39. Rewe Aupperle,
Fellbach bei Stuttgart

40. Rewe Aupperle,
Fellbach bei Stuttgart

41. Rewe Aupperle,
Fellbach bei Stuttgart

42. Rewe Aupperle,
Fellbach bei Stuttgart

43. Wasgau Center,
Annweiler

44. Wasgau Center,
Annweiler

45. Wasgau Center,
Annweiler

46. Wasgau Center,
Annweiler

47. Wasgau Center,
Annweiler

48. Torsten Toeller,
CEO trinkgut

49. trinkgut: Nr. 1 GFM chain
more than 500 Mio. Euro,
more than 300 shops

50. Getränkemarkt Freyer,
Leingarten

51. Getränkemarkt Freyer,
Leingarten

52. Getränkemarkt Freyer,
Leingarten

53. Getränkemarkt Freyer,
Leingarten

54. Getränkemarkt Freyer,
Leingarten

55. Getränkemarkt Freyer,
Leingarten

56. good success and
thanks for your attention.