2013 German Wines

2. Key figures of the German wine sector Key figures of the German wine sector The 13 German Provided by the German Wine Institute wine growing regions

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1 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Vineyard acreage in Germany 2012 Vineyard acreage worldwide 2009

Region ha Region ha Country in 1000 ha Country in 1000 ha Rheinhessen 26 516 Rheingau 3 135 Spain 1 170 Romania 209 Pfalz 23 489 Saale-Unstrut 765 France 870 Chile 196 Baden 15 815 Ahr 562 Italy 847 Australia 174 Württemberg 11 359 Sachsen 492 China 462 South Africa 133 Mosel 8 765 Mittelrhein 462 USA 397 Greece 117 Franken 6 104 Hess. Bergstraße 448 Portugal 248 Germany 102 Nahe 4 172 total 102 172 Argentina 226

Source: Statistisches Bundesamt Source: OIV

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2 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Wine growers and farm sizes in Germany White grapes vs. red grapes Acerage 1979 1989 1999 2009 in ha < 0.2 25 900 21 600 23 500 16 500 36% 0.2 -0.5 24 800 20 400 17 200 10 900 0.5 –1 14 400 12 000 9 000 5 700 1 –2 11 300 9 200 6 300 4 100 64% 2 –5 9 700 9 100 6 700 4 800 > 5 3 300 5 000 5 900 6 000 total 89 400 77 300 68 600 48 000

Source: Statistisches Bundesamt

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3 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Cultivation of red and white grapes historically Cultivation of red and white grapes historically

120.000 Vineyard White Red Vineyard White Red surface surface 100.000 varieties varieties varieties varieties (in %) (in %) 80.000 red white 2012 64.2 35.8 2004 64.0 36.0 60.000 1980 11% 89% 2011 64.2 35.8 2000 74.0 26.0 ha 2011 36% 64% 2010 64.1 35.9 1996 80.0 20.0 40.000 2009 64.0 36.0 1992 82.0 18.0 20.000 2008 63.6 36.4 1988 85.3 14.7 0 2007 63.2 36.8 1984 87.1 12.9

5 8 0 4 5 6 9 0 2006 63.1 36.9 1980 88.6 11.4 9 9 0 0 0 0 08 0 1 9 9 0 0 0 0 0 1979 1990 1 1 20 2002 2003 2 2 20 2007 2 2 2

total white grapes red grapes Source: Statistisches Bundesamt Source: Statistisches Bundesamt

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4 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Planting authorization for grape varieties in Germany The major white grape varieties: changes and trends

Year Surface in ha Year Surface in ha Grape-variety Acreage (ha) Change % 1956 Gutedel, Gewürztraminer, 1980 Dornfelder 2012 2000-2012 Grauburgunder, Lemberger, Riesling 22 837 3.3 Müller-Thurgau, Muskateller, 1987 St. Laurent Müller-Thurgau 13 108 - 34.5 Portugieser, Riesling, 1994 Chardonnay Silvaner 5 122 - 23.4 Scheurebe, Silvaner, 1995 Regent Grauburgunder 5 042 57.1 Spätburgunder, Trollinger 2002 Cabernet Sauvignon, Weißburgunder 4 449 71.5 1960 Weißburgunder Acolon Kerner 3 131 - 52.1 1965 Elbling 1 841 - 42.6 2012 Merlot, Cabernet Franc Bacchus 1968 Müllerrebe, Huxelrebe Scheurebe 1 503 - 49.0 in Sauvignon Blanc 1969 Kerner process Chardonnay 1 496 145.2 Gutedel 1 149 - 4.3 1971 Frühburgunder Gewürztraminer 881 3.2 1972 Bacchus Total white 65 589 - 15.4

Source: Bundessortenamt Source: Statistisches Bundesamt

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Riesling surface worldwide Riesling regionally (2012)

Country ha % Country ha % Region Ha Region ha Germany 22 837 58.5 New Zealand 719 1.8 Pfalz 5 607 Franken 322 USA* 4 256 11.7 Italy 446 1.1 Mosel 5 303 Mittelrhein 310 Australia 4 184 10.7 Chile 318 0.8 Rheinhessen 4 052 Hess. Bergstraße 207 France 3 524 9.0 South Africa 211 0.5 Rheingau 2 477 Sachsen 70 Austria 1 863 4.8 Luxemburg 163 0.4 Württemberg 2 096 Saale-Unstrut 61 *USA: only California, Washington and Oregon Total 39 395 100 Nahe 1 154 Ahr 46 Baden 1 129

Source: DWI research, various sources Source: Statistisches Bundesamt

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Riesling surface in Germany historically The relative importance of Riesling in Germany Year Surface in ha 1964 17 083 Grape-variety 1979 1991 2012 1972 18 841 Surface white wine (ha) 83 268 85 392 65 589 1979 18 863 Surface Riesling (ha) 18 863 22 013 22 837 1991 22 013 2000 22 117 Share of Riesling 22.7 % 25.8 % 34.8 % 2006 21 197 2008 22 434 2009 22 580 2010 22 599 2011 22 636 2012 22 837 Source: Statistisches Bundesamt

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7 2. Key figures of the German wine sector 2. Key figures of the German wine sector

The major red grape varieties: changes and trends Pinot Noir surface worldwide

Grape-variety Acreage (ha) Change % 2012 2000-2012 Country ha Country ha Spätburgunder 11 769 27.2 France 30 659 Switzerland 4 352 Dornfelder 8 197 87.5 USA 21 037 Chile 2 130 Portugieser 3 825 - 23.9 Germany 11 769 Argentina 1 681 Trollinger 2 350 - 8.3 Italy 5 096 South Africa 962 Schwarzriesling 2 162 - 9.4 New Zealand 5 061 Austria 649 Regent 2 047 355.9 Australia 5 046 Luxemburg 102 Lemberger 1 786 49.3 Total red 36 583 34.5

Source: Statistisches Bundesamt Source: DWI research, various sources

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Pinot Noir regionally (2012) Pinot Noir surface in Germany historically Year Surface in ha Region ha Region ha 1964 1 839 Baden 5 641 Nahe 263 1972 2 944 1979 3 573 Pfalz 1 621 Franken 251 1991 6 449 Rheinhessen 1 421 Hess. Bergstraße 46 2000 9 255 Württemberg 1 295 Mittelrhein 42 2006 11 807 Rheingau 385 Sachsen 40 2008 11 800 2009 11 733 Mosel 372 Saale-Unstrut 30 2010 11 740 Ahr 352 2011 11 756 2012 11 769 Source: Statistisches Bundesamt Source: Statistisches Bundesamt

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Pinot Gris surface in Germany historically Pinot Blanc surface in Germany historically Year Surface in ha Year Surface in ha 1964 1 283 1964 465 1972 2 929 1972 748 1979 3 390 1979 830 1991 2 509 1991 1 282 2000 2 769 2000 2 593 2007 4 413 2007 3 589 2008 4 481 2008 3 731 2009 4 577 2009 3 944 2010 4 705 2010 4 106 2011 4 859 2011 4 280 2012 5 042 2012 4 449 Source: Statistisches Bundesamt Source: Statistisches Bundesamt

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Silvaner surface in Germany historically Silvaner regionally (2012) Year Surface in ha 1964 18 781 Region ha Region ha 1972 16 739 Rheinhessen 2 405 Württemberg 106 1979 10 210 1991 7 585 Franken 1 380 Saale-Unstrut 53 2000 6 691 Pfalz 785 Hess. Bergstraße 16 2007 5 261 Nahe 252 Rheingau 9 2008 5 236 Baden 143 Mittelrhein 1 2009 5 213 2010 5 217 2011 5 185 2012 5 122 Source: Statistisches Bundesamt Source: Statistisches Bundesamt

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11 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Major “German” grape varieties (hectares) Major “German” grape varieties (hectares)

Rank Riesling Grauburgunder Weißburgunder Spätburgunder Rank Müller-Thurgau Silvaner Dornfelder Lemberger 1 22 837 Germany 17 281 Italy 4 449 Germany 30 659 France 1 13 108 Germany 5 122 Germany 8 009 Germany 3 225 Austria 2 4 557 USA* 7 127 USA 3 086 Italy 21 037 USA* 2 2 102 Austria 1 346 France 35 USA* 1 775 Germany

3 4 184 Australia 5 042 Germany 1 995 Austria 11 769 Germany 3 1 312 Italy 244 Switzerland 22 Switzerland 29 USA*

4 3 524 France 3 518 Australia 1 266 France 5 096 New Zealand 4 484 Switzerland 80 Italy 4 Switzerland 5 1 863 Austria 2 747 France 262 USA* 5 061 Australia 5 360 Luxemburg 43 Austria 6 719 New Zealand 1 764 New Zealand 149 Luxemburg 5 046 Italy 6 30 USA* 1 South Africa 7 446 Italy 530 Romania 105 Switzerland 4 352 Switzerland 7 2 New Zealand 8 318 Chile 289 Argentina 27 Argentina 2 130 Chile *USA: only California, Washington and Oregon 9 211 South Africa 261 South Africa 14 South Africa 1 681 Argentina

10 163 Luxemburg 223 Switzerland 13 Chile 962 South Africa

*USA: only California, Washington and Oregon Source: DWI research, various sources Source: DWI research, various sources

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12 2. Key figures of the German wine sector 2. Key figures of the German wine sector

Annual German wine production Wine production in Germany

Year mio. hl Year mio. hl 2012 9.1 2004 10.1 2011 9.3 2003 8.3 2010 7.1 2002 10.1 2009 9.1 2001 9.1 2008 10.0 2000 10.1 2007 10.4 2006 9.1 (1982) (15.4) 2005 9.1 (1980) (4.6)

Source: Statistisches Bundesamt

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Organic winemaking: Ecovin 2012 Wine production worldwide 2011

region members surface in ha Rheinhessen 47 591 Country 1 000 hl Country 1 000 hl Baden 65 286 France 49 633 China 13 000 Mosel 44 203 Pfalz 14 196 Italy 41 580 Australia 11 090 Württemberg 21 129 Spain 33 397 Chile 10 463 Rheingau/Hess. BS 12 72 Nahe 5 62 USA 18 740 South Africa 9 665 Mittelrhein 5 10 Argentina 15 473 Germany 9 611 Franken 2 4 Ahr 2 4 Total 217 1 555

Source: Ecoin Source: OIV Paris, 2011, estimate 27 N.N. © DWI, N.N. 28 N.N. © DWI, N.N.

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Dry vs. sweet in German wine production Major wine consuming countries

80 2011 1 000 hl 2011 1 000 hl 70 60 France 29 936 Russia 11 633 50 dry wines

% 40 USA 28 500 Spain 10 150 30 1985 36 % 20 2011 64 % Italy 23 052 Argentina 9 725 10 Germany 20 000 Romania 5 350 0 5 0 5 4 5 7 8 0 8 9 9 0 0 0 0 1 9 9 9 0 0 0 0 0 China 17 000 TOTAL 244 306 1 1 1 2000 2 2 2006 2 2 2009 2

UK 12 800 sum dry semi dry

Source: OIV

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Quality levels in production The L-word

2012 % 1.200.000 1.100.000 Qualitätswein 87.4 1.000.000 900.000 Kabinett 5.8 800.000 hl 700.000 Spätlese 5.5 600.000 500.000 400.000 Auslese 1.1 300.000

0 2 BA TBA Eiswein 0.2 01 01 1985 1990 1995 2000 2005 2008 2009 2 2011 2 Liebfraumilch Production

Source: Statistisches Bundesamt

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16 3. The domestic market The domestic market Provided by the German Wine Institute Production vs. consumption in Germany Germany Annual average Wine production 9-10 mil. hl Wine consumption > 20 mil. hl Import 15.2 mil. hl Export (German and foreign wine) > 4 mil. hl

>>>> Germany biggest wine importer in the world (together with UK)

>>>> Huge domestic competition

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17 4. The export markets The export markets Provided by the German Wine Institute Development of German wine exports - volume

2500000

2000000

1500000 hl 1000000

500000

5 003 004 011 2000 2001 2002 2 2 200 2006 2007 2008 2009 2010 2

Source: Statistisches Bundesamt

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18 4. The export markets 4. The export markets

Major export destinations 2012 US wine imports Country Value Volume (hl) €/hl % +/- value % +/- volume Country 1000 $ % (1000 €) 2011/2012 2011/2012 USA 89 000 257 000 346 - 13.3 - 13.4 Italy 1 518 140 18 France 1 230 659 24 Netherlands 36 000 217 000 167 5.8 2.8 Australia 553 341 -8 UK 27 000 173 000 156 - 28.1 - 22.3 Argentina 340 970 26 Norway 24 000 61 000 390 10.3 1.5 Spain 305 046 11 Canada 17 000 55 000 312 8.5 10.5 Chile 293 783 7 Sweden 16 000 105 000 153 4.1 11.2 New Zealand 199 669 1 Japan 14 000 34 000 403 7.6 7.2 Germany 143 866 3 China 13 000 34 000 389 - 0.2 - 16.2 Portugal 72 156 7 Russia 7 000 61 000 122 - 65.7 - 71.1 South Africa 44 770 -1 Total 321 000 1 435 000 246 - 7.8 - 15.2 Total 4 900 921 14 Source: Statistisches Bundesamt 37 N.N. © DWI, N.N. 38 N.N. © DWI, N.N.

19 4. The export markets 4. The export markets

US imports of German wine German wine exports to Asia

160.000 40.000 150.000 35.000 140.000 130.000 30.000 120.000 110.000 25.000 100.000 90.000 20.000 80.000

1000 US $ 15.000 70.000 60.000 10.000 50.000 40.000 5.000

3 4 5 6 7 8 * 0 0 0 0 0 0 1 - 0 0 0 0 0 0 009 2001 2002 2 2 2 2 2 2 2 2010 201 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2011

* projected China Japan Singapur SUMME

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20 6. Marketing activities and strategies Marketing strategies and activities Provided by the German Wine Institute DWI marketing strategy 2008-2012

Three core messages

• Uniqueness of German grape varieties - in Germany: Riesling, the Pinot family and the regional specialities - abroad: Riesling and Pinot Noir • Uniqueness of the German wine growing regions (wine and tourism) • Wine = indulgence, culture and modern lifestyle

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21 6. Marketing activities and strategies 6. Marketing activities and strategies

DWI marketing strategy 2008-2012 Riesling & Co. World Tour • 2009 in Grape variety strategy in foreign markets • Kopenhagen • Oslo • Montréal » Get rid of the L-word • Toronto • Calgary » » Establish riesling • Vancouver » » » Establish dry German whites • Tokyo • Osaka » » » » Establish pinot noir • Stockholm • Helsinki » » » » » Establish other German varieties • San Francisco • New York • Dublin • Amsterdam • 400+ participants

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22 6. Marketing activities and strategies Modern wine country Germany ProWein Provided by the German Wine Institute

• Düsseldorf, March every year • Most important trade show world wide for wine • DWI pavilion in hall 6 • International meeting point

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23 7. Modern wine country Germany 7. Modern wine country Germany

Riesling Renaissance Riesling Renaissance Year German wine imports in change • Started in the USA 1000 US-$ • Now a world-wide phenomenon 2001 42,066 • Darling of media and sommeliers 2002 48,394 + 15 • US imports of German wine tripled 2003 70,405 + 45 2004 80,126 + 14 • German white wine no. 1 in Norway 2005 98,654 + 23 • Hundreds of positive articles 2006 119,925 + 22 • Hugh Johnson, Jancis Robinson, Stuart 2007 144,250 + 20 Piggot, Paul Grieco….. 2008 147,247 + 2 2009 120,740 -18 2010 139,724 + 16 2011 143 866 + 3

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Modern cuisine Guide Michelin 3-Star restaurants • Lighter, less fat • More herbs and spices Country Country • More fish and poultry Japan 32 Spain 5 • Regional ingredients France 26 China 5 • Asian influences USA 11 UK 4 • New Nordic Cuisine Germany 10 Belgium 3 Italy 7 Switzerland 2 Netherlands 2

Source: Wikipedia 49 N.N. © DWI, N.N. 50 N.N. © DWI, N.N.

25 7. Modern wine country Germany 7. Modern wine country Germany

Quality leap

German wines ° are of high quality ° are unique due to the cool climate ° belong to the best wines worldwide

German Wines are internationally highly competitive, e.g. ° Decanter World Wine Awards ° International Wine Challenge ° International Wine & Spirit Competition ° Canberra International Riesling Challenge

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26 7. Modern wine country Germany 9. Wine tourism

Wine estates in Gault&Millau WeinGuide Germany Unesco World Heritage sites

• Speyer cathedral, Pfalz year producers wines • Würzburg Residence, Franken 1994 263 1 400 • Trier roman monuments & cathedral, Mosel 1999 387 3 350 • Lorsch abbey and Altenmünster, Hess. Bergstraße 2004 738 4 971 • Maulbronn monastery, Baden 2008 855 6 569 • Reichenau monastic island, Baden 2013 1 080 12 500 • Upper Middle Rhine Valley, Mittelrhein

Source: DWI research, various sources

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Unesco World Heritage sites Wine vantage points

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Wine festivals Wine architecture

29 10. Legal matters 10. Legal matters

II. German Law II. German Law

Quality levels Quality levels Deutscher Wein Landwein Qualitätswein Prädikatswein 100 % grapes from 85 % grapes from 100 % from quality wine region ° Deutscher Wein Germany Landwein region Minimum degrees oechsle ° Landwein (g.g.A.) 44-50 ° 47-55 ° 55-72 ° 70-154 °

° Qualitätswein (g.U.) Chaptalisation allowed No chaptalisation ° Prädikatswein (g.U.) Basic chemical test Official quality test (AP number) Min. & max. alcohol content Min. alcohol content

8.5 % - 15 % 7 % (A), 8 % (B) 9.5 % (A), 10 % (B) BA,TBA, EW 5.5%

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II. German Law II. German Law

Deutscher Wein (German wine) Landwein

° Mention of grape variety on the label is ° Very small part of the production allowed. ° Can only be produced in 26 Landwein ° But: exclusion of major 22 German grape regions which can also be outside of quality varieties! wine regions ° No quality wine test

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II. German Law II. German Law Qualitätswein Prädikatswein ° Kabinett ° Special category ° Lighter style ° Only from typical varieties of the region ° Lower alcohol ° Dryish (up to 15 g/l residual sugar) ° Spätlese ° No mention of geographical designation other than region ° Substantial wines from fully ripe grapes ° No mention of taste profile ° Intense in flavour and concentration

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II. German Law II. German Law Prädikatswein Prädikatswein ° Auslese ° Eiswein ° Only ripe bunches or noble rot grapes ° Frozen, healthy grapes (no rot) ° Colour medium gold ° High acidity, high sugar levels ° Beerenauslese ° Big risk for producers ° Overripe grapes, noble rot ° Trockenbeerenauslese ° Sweet dessert wines ° Individually picked, heavily botrytised berries shrivelled to almost raisins ° Noble sweet dessert wines ° Extremely low yields (1 hl/ha or less)

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II. German Law II. German Law

Minimum must weight (in degrees Oechsle) Oechsle Taste profiles Prädikatswein

160

140

120 Kabinett Spätlese Auslese BA Eiswein TBA

100 dry to sweet usually sweet only very sweet 80

60 150-154 40 110-128 70-85 80-95 88-105 44-50 47-55 55-72 20

0 Deutscher Landwein Qualitäts- Kabinett Spätlese Auslese Eisw./BA TBA Wein wein

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II. German Law III. National organisations

° Legally defined taste profiles VdP (Verband der Prädikatsweingüter) (I) (in g/l residual sugar) ° Founded in 1910 ° trocken (dry) up to 9 ° 200 members ° halbrocken (off-dry) 9-18 ° Ca. 4 000 hectares ° lieblich (mild) 18-45 ° süß (sweet) 45+ ° 391 Erste Lagen ° In all German regions ° Not legally defined taste profile ° “feinherb” – usually used like “halbtrocken”

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III. National organisations III. National organisations

VdP (Verband der Prädikatsweingüter) (II) VdP (Verband der Prädikatsweingüter) (III)

° New classification system from 2012 ° Grosse Lage (grand cru)* ° Aims: ° Erste Lage (premier cru) ° Link between geographical origin and quality ° Ortswein (village wine) (the smaller the origin, the higher the quality level) ° Gutswein (estate wine) ° Identify the best dry wines

° Copied by non-members ° * dry style: Grosses Gewächs

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III. National organisations III. National organisations

VdP (Verband der Prädikatsweingüter) (IV) VdP (Verband der Prädikatsweingüter) (V) Criteria for classification Criteria for classification • Vineyard site • Harvest procedures and ripeness level • Classification based on experience and historical documents • Only hand picking • Grape varieties • At least Spätlese ripeness • Regionally defined (only Riesling, Silvaner, Pinots) • Production procedures • Yields • Only traditional methods • Up to 50 hl/ha • Examinations • Monitoring, sampling

37 10. Legal matters Vielen Dank ! Thank you very much ! III. National organisations

VdP (Verband der Prädikatsweingüter) (VI) Criteria for classification • Style • Dry wines as „Grosses Gewächs “ • Sweet wines with Prädikat classification • Packaging • Erste Lage Logo, vineyard and estate on front label • Marketing • White wines released only on September 1st, a year after harvest • Red wines, two years after the harvest