Rabobank has published a new research report on the global wine
industry, predicting that sparkling wine will continue to shift
downmarket in economies that are struggling, and credits a weak Euro and
emerging market growth for supporting suppliers in markets outside of
Europe and the U.S.
In the report authored by Rabobank’s global Food & Agribusiness Research
and Advisory department, Rabobank says that Europe’s sparkling wine
producers continue to face changing consumption patterns in the
traditional European markets. The prolonged economic downturn has played
havoc with demand for sparkling wines, channelling consumers downmarket.
However, Rabobank believes that the current weak state of the Euro and
the growth of emerging economies have provided some valuable support to
the leading houses that dominate the supply of champagne to markets
outside Europe and the U.S.
Europe’s three major producers (the Champagne region, Italy and Spain)
supply roughly 80% of global trade volumes of sparkling wine, and this
export trade has become increasingly important as demand and pricing has
steadily deteriorated in main stay domestic markets. As price conscious
consumers in traditional European markets have sought to explore the
value on offer for champagne at lower price points, previously
overshadowed wines such as prosecco and cava have made a strong comeback
in the European and U.S. markets.
Unsurprisingly, consumption is beginning to rebound in some key markets
as consumers discover more affordable wines. In the UK, sparkling wine
consumption has resumed its upward trajectory and is currently just
short of its historical peak level reached in 2008. Yet, non-sparkling
wine consumption continues to slip and remains almost 9% short of its
peak level. In the U.S., French sparkling wine shipments in 2012 will
likely be below 2011 levels. Italian and Spanish sparkling wine
suppliers are experiencing much greater growth. The lower price points
of these wines have encouraged more “every day” consumption, as
reflected by the more even distribution of sparkling wine imports
throughout the year.
However, it’s not all bad news for the heavyweights of the champagne
industry. Rabobank Analyst Marc Soccio said, “While the big champagne
brands may have lost some of their lustre in traditional markets there
is still room for optimism. Budding demand has been uncovered in the
world’s emerging wine markets of Russia, Brazil, China, Mexico and
Nigeria. In addition, consumption of sparkling wine has displayed strong
growth in already established and premium markets like Japan, as well as
countries such as Canada and Australia.
In addition to the update on the sparkling wine sector, the quarterly
report provides readers with an update on production and marketing
trends for key suppliers, import trends for the US market, bulk wine
pricing trends and a forecast for key currencies of the wine sector.
The Rabobank report on the global wine industry as of Q4 2012 is
available to media upon request.
Rabobank Group is a global financial services leader providing wholesale
and retail banking, asset management, leasing, real estate services, and
renewable energy project financing. Founded over a century ago, Rabobank
is one of the largest banks in the world, with nearly $1 trillion in
assets and operations in more than 40 countries. In North America,
Rabobank is a premier bank to the food, beverage and agribusiness
industry. Rabobank’s Food & Agribusiness Research and Advisory team is
comprised of more than 80 analysts around the world who provide expert
analysis, insight and counsel to Rabobank clients about trends, issues
and developments in all sectors of agriculture. wwww.rabobank.com/f&a
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