United-Kingdom---Portuguese-Wine

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United-Kingdom---Portuguese-Wine Introduction .................................................................................................................................3 United Kingdom: general characterization ...................................................................................4 Geography e Demography .......................................................................................................4 Territorial organization ............................................................................................................4 Economy...................................................................................................................................6 Production and Wine Consumption .............................................................................................8 Production ................................................................................................................................8 Consumption ..........................................................................................................................10 Foreign Trade .............................................................................................................................11 General Overview ...................................................................................................................11 Wines of Portugal ...................................................................................................................12 Portugal’s Positioning in the British Market ...........................................................................13 Forecasts ....................................................................................................................................15 Additional Information ...............................................................................................................16 Market Access ........................................................................................................................16 Useful Contacts ......................................................................................................................16 Institutions .........................................................................................................................16 Imports, Trade and Distribution .........................................................................................17 Annex 1 – Total Imports and Imports by Segment .....................................................................21 Annex 2 – Suppliers with market share above 1 %, in volume and value. ..................................26 Annex 3 – Price by segment .......................................................................................................27 Annex 4 – Comparative Matrix between suppliers with market share above 1%, in 2002 and 2012 ...........................................................................................................................................29 Annex 5 – Comparison of Portuguese Wine Export to the United Kingdom between the first halves of 2012 and 2013. ...........................................................................................................30 2 In the past, Britain colonized large nations like the United States of America, India and Australia, which gave to it the status of a major world power since the nineteenth century until the early twentieth century. It was also the first industrialized country in the world, due to having been the birthplace of the Industrial Revolution and, today, it is the 2nd largest European economy after Germany and the 7th in the world, after Brazil. It is, therefore, a highly developed economy, generating wealth and where citizens have a purchasing power well above the global average and, therefore, a market to be taken into account not only in the wine sector as in others. This document aims to study the British wine market imports, between 2002 and 2012, by analyzing its evolution and finding which countries have stood out, as well as by analyzing the performance of Portuguese wines. Firstly, the geography and demography of the UK will be analyzed in detail. Subsequently, the evolution of production and consumption of wine in this country, for the period indicated, will be observed, to then perform the same analysis for the imports made by the UK in the same period. Finally, Portugal’s position relatively to its competitors within this market will be disaggregated, for the purpose of commenting on the current situation, observing the history over the last 10 years and also coming up with some predictions for the coming years. Portugal is the 10th largest wine supplier in the UK and the 5th in Europe, with a market share of nearly 2%. Portuguese wine exports have increased slightly since 2002, with the greatest advantage of Portuguese wines focusing on price, which increased and is only surpassed by the French, greatly influenced by the sparkling; without the Port wine, the Portuguese price goes down one place, being, nonetheless, only surpassed by New Zealand. 3 Being an insular and political union consisting of 2 main islands and 4 nations over 244 thousand square kilometers, the UK is the 80th largest country in the world, corresponding to about 6% of the EU territory and almost 3 times the size of Portugal. To contextualize, it has a similar size of Romania and a slightly smaller size than New Zealand or Italy. It is also situated 35 kilometers northwest of France, linked by rail – through the English Channel - and is washed by the North Atlantic Ocean. It is also the 22th country in the world with the largest population, with about 63 million inhabitants (2011 Census), which corresponds to 6 times the Portuguese population, with around half of the UK population lying in the age group of 25 - 54 and only 25% of the population being young (<24 years). However, the resident population has not grown much, and the average life expectancy has been increasing, standing at 80 years (78 for males and 82 for females). The population consists of various ethnic groups, with the largest urban centers having significant foreign communities established. The GDP per capita of this country is in the top 50 worldwide (34th), being higher than the EU average and also higher than in countries like Japan and France, but lower than in Germany. The United Kingdom, whose capital is London, is a monarchy constituted by 4 nations, England, Scotland, Wales and Northern Ireland. Map 1 - Administrative subdivisions of the United Kingdom England, the largest state of the United Kingdom, has the majority of the population and territory (Table 1), highly diluted in large urban centers such as London, Birmingham or Liverpool (Table 2). Only London, the capital of England and also from the UK, has almost 13% of the population. Edinburgh is the capital of Scotland, the second largest nation in the UK; this 4 is the 2nd largest city in Scotland, behind Glasgow, the largest of this country and the fourth of the UK. This nation has a population of just over 5 million inhabitants and a vast rural territory and mountainous on the north. Wales is, as well, essentially a mountainous nation, with the major cities and industrial centers, Cardiff (capital), Swansea and Newport, being situated in the south and bathed by the Bristol Channel. Finally, the smallest nation in the UK is Northern Ireland, with a population of nearly 2 million inhabitants (Table 1). Its capital is Belfast and the economy is mainly based on agriculture and industry. Table 1 – Population distribution by nation (2011). Population % of the United Territory Density (Millions; 2011) Kingdom (km2) (inhab/km2) England 53.01 83.9% 130,395 388 Scotland 5.30 8.4% 78,782 64 Wales 3.06 4.8% 20,779 140 Northern Ireland 1.81 2.9% 13,843 122 Fonte: UK Office for National Statistics, 2011 Census. London is the largest urban center in the UK, accounting for almost 13% of the total population, eight times more than Birmingham, the second largest city. By comparison, only the 7th largest urban center in the UK, Manchester, equals the population of Lisbon, the Portuguese capital, with about half a million inhabitants. In the list of the 20 largest cities (Table 2), England has 16 cities represented, against two Scottish, one Welsh and one Northern Irish. Table 2 - Most populous cities in the United Kingdom (2011) City Nation Population % of the UK London England 8,173,941 12.94% Birmingham England 1,073,045 1.70% Leeds England 751,485 1.19% Glasgow Scotland 593,200 0.94% Sheffield England 552,698 0.87% Bradford England 522,452 0.83% Manchester England 503,127 0.80% Edinburgh Scotland 495,360 0.78% Liverpool England 466,415 0.74% Bristol England 428,234 0.68% Cardiff Wales 346,090 0.55% Leicester England 329,839 0.52% Coventry England 316,960 0.50% Nottingham England 305,680 0.48% Belfast Northern Ireland 280,962 0.44% Newcastle England 280,177 0.44% Hull England 256,406 0.41% Plymouth England 256,384 0.41% Wolverhampton England 249,470 0.39% Stoke-on-Trent England 249,008 0.39% Fonte: UK Office for National Statistics, 2011 Census. 5 In 2012, the United Kingdom GDP reached 1,504 thousand million pounds, equivalent to 1,753 thousand million euros (Chart 1) and almost 11 times the Portuguese GDP. Chart 1 – GDP Evolution in the United Kingdom, in the period of 2002-2012 Real GDP Annual Growth Rate 1.900 € 6% 1.800 4% 1.700 2% 1.600 Thousands of millionsof Thousands 0% 02 03 04 05 06 07 08 09 10 11 12 1.500 -2% 1.400 -4% 1.300 02
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