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Germany: Local Wines in Demand

05/07/2020

In the first quarter of this year, German consumers increasingly turned to domestic wines. As a result, sales of German wines increased by four percent and turnover by two percent compared to the same quarter of the previous year.


These results come from the household panel of the market research institute Nielsen, which was commissioned by the German Wine Institute (DWI) to monitor wine purchases in Germany from this year. As can be seen from the market analysis, the corona-related restrictions in March this year contributed to a particularly strong increase of around 9.5 percent in terms of purchasing volume and revenue compared to March of the previous year.

First Quarter 2020 constant

Amongst wines of all origins, the volume of wine purchased remained constant in the first quarter of 2020, with a slight decline in value of one percent. The average price was € 3.48 / l for all wines, one percent below the same quarter of the previous year and € 3.64 / l for wines from German regions, two percent lower.

The quarterly business survey conducted by Geisenheim University of 844 businesses from the German wine industry (wineries, winegrowers' cooperatives, producers), has shown that during the corona-related closures, wine sales have shifted from gastronomy and the specialist wine trade to the supermarkets and food retail trade.

Major challenges for wine producers

The many wineries that primarily market outside of the food retail trade are therefore facing major challenges. Compared to the previous year, in the first quarter, wineries lost 50% of their sales to gastronomy and 23% of their sales to the specialist wine trade. Due to the global reach of the crisis, wine exports from wineries have also decreased by 33%.

Consumers have also made increased purchases through online retail, which has increased 42% for the wineries, making up for a small portion of the winery's overall quarterly losses of 13%. Due to the ongoing restrictions in public life in April and May, wineries and cooperatives are expected to experience significantly higher losses in the second quarter, while larger producers should continue to benefit from growth in the food retail sector.


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