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SWITZERLAND LANDSCAPES November 2018 Report

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SWITZERLAND LANDSCAPES November 2018 Report SWITZERLAND LANDSCAPES November 2018 Report Switzerland © Wine Intelligence 20181 Landscapes Copyright © Wine Intelligence 2018 ▪ All rights reserved. No part of this publication may be reproduced in any form (including photocopying or storing it in any medium by electronic means) without the permission of the copyright owners. Application for permission should be addressed to Wine Intelligence. ▪ The source of all information in this publication is Wine Intelligence unless otherwise stated. ▪ Wine Intelligence shall not be liable for any damages (including without limitation, damages for loss of business or loss of profits) arising in contract, tort or otherwise from this publication or any information contained in it, or from any action or decision taken as a result of reading this publication. ▪ Please refer to the Wine Intelligence Terms and Conditions for Syndicated Research Reports for details about the licensing of this report, and the use to which it can be put by licensees. ▪ Wine Intelligence Ltd: 109 Maltings Place, 169 Tower Bridge Road, London SE1 3LJ Tel: 020 7378 1277. E-mail: [email protected]. Registered in England as a limited company number: 4375306 Switzerland 2 Landscapes Management summary Key trends in the Swiss wine market 1. DESPITE A DECLINING VOLUME OF WINE SOLD IN SWITZERLAND, IT REMAINS ONE OF THE MOST ATTRACTIVE WINE MARKETS IN THE WORLD DRIVEN BY RELATAIVLY HIGH PRICE POINTS AND HIGH PER CAPITIA CONSUMPTION ▪ As a mature market for wine, Switzerland has seen the volume of still wine consumed decline between 2013 and 2017 ▪ Although per capita consumption of still wine in Switzerland has declined, it is ranked as the sixth largest market in terms of per capita consumption 2. SWISS CONSUMERS CONTNUE TO HAVE A LOYALTY FOR WINE -PRODUCING NEIGHBOURS AND SPAIN, WITH A LONGER TERM INCREASED PERFORMANCE FROM PORTUGAL ▪ Beyond wines from Switzerland, the Swiss wine market continues to be dominated by wines from France, Italy and Spain, the three countries with the highest market shares in the Swiss still wine market ▪ The three most powerful wine brands in the Swiss market originate from Spain, France and Italy respectively, reflecting the dominance of these three countries of origin in terms of volume Switzerland 3 Landscapes Management summary Key trends in the Swiss wine market 3. A GREATER PROPRTION OF FRENCH-SPEAKING DRINKERS ARE HIGHER-INVOLVED, MORE ADVENETROUS WINE DRINKERS WHLIST MORE GERMAN-SPEAKING DRINKERS ARE LESS EXPEREIMENTAL AND MORE HEALTH CONSCIOUS WITH WINE ▪ Regular wine consumers who live in the French-speaking region of Switzerland are generally more involved in the wine category ▪ Quantitative and qualitative data suggests regular wine consumers in the German-speaking region of Switzerland are more locally driven and health-conscious when purchasing wine 4. FOOD AND WINE PAIRING THE MOST PROMINENT DRIVER WHEN PURCHASING WINE WHICH IS TYPICALLY NOT THE KEY DRIVER IN OTHER WINE MARKETS ▪ Matching or complimenting food is the top driver amongst Swiss regular wine drinkers, with 82% of them claiming that they find it the most important factor when purchasing wine, a driver which is typically not the primary driver of choice for wine in other markets ▪ The increased interest in food and wine matching is also being driven by the fact that the proportion of wine drinkers, especially French-speakers, enjoying wine whilst out at a bar or pub or restaurant has increased since 2013 Switzerland 4 Landscapes Management summary #1. DESPITE A DECLINING VOLUME OF WINE SOLD IN SWITZERLAND, IT REMAINS ONE OF THE MOST ATTRACTIVE WINE MARKETS IN THE WORLD DRIVEN BY RELATAIVLY HIGH PRICE POINTS AND HIGH PER CAPITIA CONSUMPTION ▪ As a mature market for wine, Switzerland has seen the volume of still wine consumed decline between 2013 and 2017 ▪ Although per capita consumption of still wine in Switzerland has declined, it is ranked as the sixth largest market in terms of per capita consumption ▪ In October 2016, the Swiss Government implemented a new way to test for blood-alcohol levels and lowered the legal driving limit, creating much stricter drinking and driving regulations ▪ Trade experts suggest this has led to changes in consumption behaviours, such as a shift in on-trade drinking behaviours, including reducing the volume of alcohol consumed and an increase in lower-alcohol beverage consumption such as beer and cider Still wine volumes in Switzerland Retail price per 0.75LPeople drink much less, as the legal Thousands of 9 CAGR CAGR Market 2013 2014 2015 2016 2017 CAGRlimit CAGR for driving as changed. You can litre cases 13-17 16-17 share 2017 (US$) 13-17see16-17 this especially in restaurants, Total 30,350 29,730 29,565 29,370 28,964 -1% -1% 100% 8.46 1%where1% fewer wines are sold by bottle, Domestic 11,600 10,900 10,670 10,680 10,747 -2% 1% 37% 8.80 3%but instead1% guests just drink a glass Imported 18,750 18,830 18,895 18,690 18,217 -1% -3% 63% 8.27 0% 1%Wine Brand Manager Alcoholic Italianbeverages 6,400 repertoire 6,698 : Tracking 6,665 (2013 6,925 -2018) 6,783 1% -2% 23% 8.01 0% 1% % who have drunkFrench the following 4,200 beverages 4,055 in the past 4,075 12 months 3,955 3,850 -2% -3% 13% 10.69 1% The-1% per capita consumption is Base = All SwissSpanish regular wine 3,200 drinkers (n≥541) 3,605 3,700 3,415 3,294 1% -4% 11% 5.34 -4%decreasing,2% slowly but constantly for Rank Portuguesein Beverage 850 2013980 1,010 1,000 2018 976 Tracking4% -2% 3% 5.06 1% a2% few years now. The total 2018International n= 925 583 541 578 569 1500 553 '13 vs. '18-12% -3% 2% 4.91 -2%consumption0% is stable and there is 1South AfricanRed wine 800 93% 690 595 94% 560 523 -10% -7% 2% 9.48 2%only 1%a very small decrease, as it is US 525 500 515 490 479 -2% -2% 2% 11.84 0%compensated2% by the growth of the 2 White wine 81% 84% German 400 360 380 385 390 -1% 1% 1% 9.55 1% population.0% In the long-term the 3 Beer 66% 77% Chilean 415 345 390 393 375 -3% -5% 1% 10.20 1% market5% will be under pressure 15 Cider 16% 24% Argentinian 360 375 385 375 356 0% -5% 1% 12.45 -1% -5% Retail Buyer Sources:IWSR 2018 Switzerland : statistically significantly higher than previous wave(s) at a 95% confidence level Wine Intelligence trade interviews October 2018 5 Landscapes Source: Wine Intelligence, Vinitrac® Switzerland, Mar ‘13 (n=541) and Mar & Jul ‘18 (n=1,500), Swiss regular wine drinkers Management summary #2. SWISS CONSUMERS CONTNUE TO HAVE A LOYALTY FOR WINE -PRODUCING NEIGHBOURS AND SPAIN, WITH A LONGER TERM INCREASED PERFORMANCE FROM PORTUGAL Overseas wines are declining, due to ▪ Beyond wines from Switzerland, the Swiss wine market continues to be dominated either carbon foot print thinking or by wines from France, Italy and Spain, the three countries with the highest market politics (Trump for US wines) Wine Brand Manager shares in the Swiss still wine market. Region (75%) and country (74%) of origin are the second and third most important cues when choosing a wine ▪ There has been an increase in the proportion of consumers who report drinking The three big countries are, of course, France, Italy and Spain. There wine from Old World countries Italy and Portugal. However, New World countries is no country that is disrupting this Chile, Argentina, South Africa, and Australia have seen a significant decrease in trinity. Portugal has grown a bit, consumption Austria has grown a bit, but their shares stay low Retail Buyer ▪ The three most powerful wine brands in the Swiss market originate from Spain, France and Italy respectively, reflecting the dominance of these three countries of origin in terms of volume Wine Brand Power Index 2018 Country of origin consumption: Tracking (2013-2018) Base = All Swiss regular wine drinkers (n≥541) Rank in Country of origin 2013 2018 Long-term st 2018 n= 541 1500 trend '13 vs. '18 1 1 Switzerland 73% 69% 2 Italy 57% 64% 3 France 59% 58% 4 Spain 43% 45% nd 5 Portugal 12% 19% 2 6 California - USA 24% 18% 7 Chile 22% 16% 8 Argentina 22% 14% 3rd Switzerland Source: / : statistically significantly higher / lower than previous wave(s) at a 95% confidence level Wine Intelligence trade interviews October 2018 6 Landscapes Source: Wine Intelligence, Vinitrac® Switzerland, Mar ‘13 (n=541) and Mar & Jul ‘18 (n=1,500), Swiss regular wine drinkers Management summary #3. A GREATER PROPRTION OF FRENCH-SPEAKING DRINKERS ARE HIGHER-INVOLVED, MORE ADVENETROUS WINE DRINKERS WHLIST MORE GERMAN-SPEAKING DRINKERS ARE LESS EXPEREIMENTAL AND MORE HEALTH CONSCIOUS WITH WINE ▪ Regular wine consumers who live in the French-speaking ▪ Quantitative and qualitative data suggests regular wine region of Switzerland are generally more involved in the consumers in the German-speaking region of Switzerland are wine category: more locally driven and health-conscious when purchasing wine: ▪ French-speaking wine consumers have higher consumption frequencies, a broader alcoholic ▪ German-speaking wine consumers not only drink beverage repertoire and show a more adventurous wine less frequently, but are also less willing to attitude towards trying new styles of wine on a branch out to try different wines regular basis ▪ Trade experts suggest these consumers prefer locally ▪ These consumers consider country and region of grown and lower-calorie alcoholic drinks that allow origin as well as expert validation to be important them to consume alcohol while also being conscious when buying wine about their health ▪ Significantly higher proportions of French-speaking ▪ However, a significantly higher proportion of consumers report purchasing wine from France, German-speaking wine drinkers (38%*) find bottle / Portugal, Côtes du Rhône and Champagne label design as an important driver compared to French-speaking wine drinkers (33%) Consumption frequency: By language (2018) Base = All Swiss regular wine drinkers (n=1,500) French- German- All Swiss RWD I think also in the German part that they speaking speaking are very conscious about buying local.
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