The Spanish Wine Market: Where does it go?

27/04/2015
The Spanish Wine Market:
Where does it go?
Ricardo Sellers-Rubio
Index
I. The Spanish wine industry
 Wine in figures: supply and demand
II. Wine marketing in Spain
III. Case study: Bodegas Enrique Mendoza
1
27/04/2015
I. The Spanish wine industry
 Vinyards and wine production
 Wine Industry
 Wine Exports
 Domestic market
Vinyards and wine production
• 954.378 Has.
(MAGRAMA Nov 2014)
• 41,6 mill. Hltrs.
(MAGRAMA Nov 2014)
2
27/04/2015
Wine production (Mill. Hl.)
60
50
40
30
20
10
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
0
30 mill. Hltrs
40 mill. Hltrs
Wine production
• From the 2014 harvest:
– 51.1% will go to red and rose wines
– 48.9% will go to white wines
• The most common grape types in Spain are:
–
–
–
–
Airén (23.5% - W)
Tempranillo (20.9% - R)
Bobal (7.5% - R)
Red Garnacha (R), Monastrell (R), Pardina (W), Macabeo
(W) and Palomino (W).
3
27/04/2015
Wine industry
• Firms: +4.500 wineries
• Sales: 6.465,3 mill. Eur.
• Employees: 24.051 pax.
(INE – 2013)
Wine industry
• It is estimated that about 4.500 wineries make still
wines, sparkling wines and liqueur.
• For the most part, these are small businesses, family
owned, while a great number of them are made up
of agrarian co-operatives.
• It is also highly concentrated: 5 top companies
together hold almost 28% of the market.
4
27/04/2015
Major players in this sector:
•
•
•
•
•
•
•
•
Freixenet
J. García Carrión
Codorníu
Arco Wine Invest Group
Grupo Domecq Bodegas
Grupo Miguel Torres
Félix Solís Avantis
Grupo Faustino.
Regulations Governing Wine in Spain:
5
27/04/2015
Regulations Governing Wine in Spain:
• 90 PDO:
– 67 Denomination of Origin (DO)
– 2 Qualified Denomination of Origin (DOCa)
– 7 Quality Wine with a Geographical Indication
(“Vino de Calidad”)
– 14 Qualified Estate Wine (“Vino de Pago”)
• 41 PGI:
– Country wines (“Vino de la Tierra”)
6
27/04/2015
Winery 1
P.G.I.
Winery 2
Winery 3
Winery 4
P.D.O.
MARKET
Winery 5
Winery 7
Winery 6
P.D.O.
Winery 9
Winery 8
J. García Carrión: Pata Negra
(PDO: Rioja, Rueda, Ribera del Duero, Valdepeñas and
Cava)
7
27/04/2015
Regulations Governing Wine in Spain:
Wine of the
year XXX
Crianza
Reserva
Gran
Reserva
“Cosechero”
Regulations Governing Wine in Spain:
Crianza
Reserva
Gran
Reserva
Oak
Containers
Total Months
(minimum)
(max. 330 lts)
White and Rosé
18
6
Red
24
6
White and Rosé
18
6
Red
36
12
White and Rosé
48
6
Red
60
18
Ageing
8
27/04/2015
Wine exports
•
•
•
•
Firms: 3.897 wineries
Volume: 22,43 mill. Hl.
Value: 2.518 mill. Eur.
Price: 1,15 €/l
(AEAT – 2014)
Wine exports (Mill. Hl.)
Exports
25
2.548 mill. €
20
15
1.244 mill. €
10
5
19
8
19 7
8
19 8
8
19 9
9
19 0
9
19 1
9
19 2
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
1
20 0
1
20 1
1
20 2
13
0
9
27/04/2015
Wine exports
• Europe: 1.755,5 mill. Eur. (69,7%)
– UE (1.567,1 mill. Eur.): Germany, UK and France.
• America: 431,7 mill. Eur.
– USA
• Asia: 212,8 mill. Eur.
– China
• Africa: 90,7 mill. Eur.
• Australia and NZ: 15,2 mill. Eur.
Domestic market
• Value: 2.455,3 mill. Eur.
• Volume: 9,48 mill. Hl.
• Price: 2,59 €/ltr.
• ±18 ltrs./person
(MAGRAMA - 2014)
10
19
8
19 7
8
19 8
8
19 9
9
19 0
9
19 1
9
19 2
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
1
20 0
1
20 1
1
20 2
13
19
8
19 7
8
19 8
8
19 9
9
19 0
9
19 1
9
19 2
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
1
20 0
1
20 1
1
20 2
13
27/04/2015
Domestic market (Mill. Hl.)
Domestic
20
15
10
2.455 mill. €
5
0
Wine exports & Domestic market
Exports
25
Domestic
2.548 mill. €
20
15
10
2.455 mill. €
5
0
11
27/04/2015
Domestic market (by distribution channel)
Home
HORECA
Direct
20
18
16
14
12
10
8
6
4
2
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
0
Domestic market
• The domestic consumption
of wine in Spain shows
worrying figures.
• It is estimated 18 litres per
person per year.
Why do the Spanish drink so little wine?
12
27/04/2015
Reasons for not drinking wine
•
•
•
•
•
•
“I don’t know about wine”
“I don’t understand the wine vocabulary”
“Wine is expensive (specially in restaurants)”
“My parents drink wine”
“Wine is old fashioned”
“Drinking wine is not cool”
Qualitative research (UA – 2013)
II. Wine Marketing in Spain
13
27/04/2015
Wine Marketing
“Success is NOT making great wine!
It is making wine and selling it at a
great profit”.
Paul Wagner
(Balzac)
PRODUCT
PLACE
Marketing – Mix
Strategy
PROMOTION
PRICE
Bottle Red:
4,70 cts
Bottle White:
4,15 cts
14
27/04/2015
Wine Marketing: The product
 Intrinsic attributes:
Organoleptic properties:
 Grape
 Alcohol volume
 Year
 Flavour
 Etc.
 Extrinsic attributes:
 Packaging
 Brand/Label
 Winery
 PDO
 Etc.
LogisticDelivery
Bottle
Packaging
Cork
WINE
Organoleptic Characteristics
Grape
Alcohol volume
Year
Flavour
etc.
PDO
Services
Promotion
Winery
Brand
Label
Back-Label
Credit
15
27/04/2015
Bodegas Bocopa
(PDO Alicante)
Bodegas Valduero: 9 Sobresaliente
(PDO Ribera del Duero)
"con tan sólo 50
kilocalorías por copa“
"igual que una
manzana“
"cuida tu salud desde
dentro“
"con antioxidantes y
aminoácidos naturales"
16
27/04/2015
Wine Marketing: The packaging
Celler del Roure: Setze Gallets
(PDO Valencia)
5 euros / bottle of 750 ml
16 euros / pack (4 bricks of 750ml.)
17
27/04/2015
Bodega San Ginés: Campos de Benítez
(Without PDO)
18
27/04/2015
Bodegas Protos
(PDO Rueda)
Bodegas Canopy
(PDO Mentrida)
19
27/04/2015
Azpilicueta
(PDO Rioja)
Wine Marketing: The brand/label
1. Clasical approach
2. Artisan/Natural approach
3. Modern approach
Rouzet and Seguin (2004)
20
27/04/2015
Wine Marketing: The brand/label
1. Clasical approach.
Wine Marketing: The brand/label
2. Artisan/Natural approach
21
27/04/2015
Wine Marketing: The brand/label
3. Modern approach.
Wine Marketing: The brand/label
3. Modern approach.
22
27/04/2015
Wine Marketing: The brand/label
3. Modern approach.
Bodega Matsu (Vintae Group)
(PDO Toro)
23
27/04/2015
24
27/04/2015
Heretat de Cesilia: Lizana
(PDO Alicante)
+18%
sales
Cingles Blaus: Auri
(PDO Montsant)
25
27/04/2015
Cingles Blaus
(PDO Montsant)
26
27/04/2015
Beso de Vino (PDO Cariñena)
27
27/04/2015
Wine Marketing: The brand/label
When it tells a story…
28
27/04/2015
Wine Marketing: Branding
29
27/04/2015
Berberana
(PDO Rioja)
La Rioja Alta (PDO Rioja)
30
27/04/2015
Promotion
31
27/04/2015
32
27/04/2015
33
27/04/2015
Diversification
34
27/04/2015
Diversification
Thank You!!
Ricardo.Sellers@ua.es
@mkalicante
www.marketingandwine.com
Ricardo Sellers-Rubio
www.linkedin.com/pub/ricardosellers-rubio/65/848/7ab
35