WINE INDUSTRY INFORMATION
Domestic natural wine sales increased by 1.6% for the period March 2012 to February 2013. Exports of natural wine in bulk increased with 48.6% and exports of packaged natural wine decreased with 8.3% for the period April 2012 to March 2013; overall an increase of 21.2%.
- Global wine production declined significantly by approximately 6% in 2012 to 25 361 million litres.
- Global consumption outpaced production and inventories are at 10 000 million litres, the lowest since 2000 and 7 500 million litres less than the highs reached in 2006.
- Consumption will come under pressure from rising prices; it is currently less clear where the decline in consumption will occur and which countries will be most affected.
- Western Europe currently accounts for 150 million litres of brandy and cognac. Brandy consumption has been steadily declining at a rate of 6% per year from 2006 to 2012. The removal of EU distilling subsidies also impact negatively on the cost structure resulting in a significant reduction in demand for bulk wine by European distillers.
- The growth in value of exports of countries in the Southern Hemisphere was significantly lower than the growth in volumes as a result of increased bulk wine trading.
- The impact of tighter global wine inventories has mainly been felt in Europe and in the lowest price segments to date.
- Russian bulk wine buyers have been adjusting sourcing as European bulk prices have risen, but have yet to purchase significant quantities of higher priced New World bulk.
- For the time being, price premiums have kept highly price-sensitive bulk wine buyers from bidding more aggressively on New World supplies.
- Preliminary expectations are for a larger Southern Hemisphere wine harvest in 2013, with the potential to lower bulk wine prices from those regions (Rabobank International).
Bottle Information to the UK
Bottle information of wine exported to the UK in 2012 averaged a weight of 582 grams per 750ml, slightly less than the overall average of 598 grams, 81% was in 750ml size, highest percentage was claret and burgundy types with amber, dark green, dark leaf green en antique the most used colours.
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