Wine in Denmark Euromonitor International July 2019 WINE IN DENMARK Passport i LIST OF CONTENTS AND TABLES Headlines ..................................................................................................................................... 1 Prospects ..................................................................................................................................... 1 Warm Weather Drives Sales of Lighter Wines .......................................................................... 1 Non-alcoholic Wine A Strongly Growing Niche But An Anti-trend Is Emerging ......................... 1 Competitive Landscape ................................................................................................................ 2 A Diverse and Fragmented Competitive Landscape................................................................. 2 Amka Strengthens Through Specialisation ............................................................................... 2 Category Data .............................................................................................................................. 2 Table 1 Sales of Wine by Category: Total Volume 2013-2018 .................................. 2 Table 2 Sales of Wine by Category: Total Value 2013-2018 ..................................... 3 Table 3 Sales of Wine by Category: % Total Volume Growth 2013-2018 ................. 3 Table 4 Sales of Wine by Category: % Total Value Growth 2013-2018 .................... 4 Table 5 Sales of Wine by Off-trade vs On-trade: Volume 2013-2018 ....................... 4 Table 6 Sales of Wine by Off-trade vs On-trade: Value 2013-2018 .......................... 4 Table 7 Sales of Wine by Off-trade vs On-trade: % Volume Growth 2013-2018 ....... 4 Table 8 Sales of Wine by Off-trade vs On-trade: % Value Growth 2013-2018 .......... 5 Table 9 Sales of Still Red Wine by Price Segment: % Off-trade Volume 2013- 2018 ............................................................................................................. 5 Table 10 Sales of Still Rosé Wine by Price Segment: % Off-trade Volume 2013-2018 .................................................................................................... 5 Table 11 Sales of Still White Wine by Price Segment: % Off-trade Volume 2013-2018 .................................................................................................... 5 Table 12 Sales of Other Sparkling Wine by Price Segment: % Off-trade Volume 2013-2018 .................................................................................................... 6 Table 13 GBO Company Shares of Still Light Grape Wine: % Total Volume 2014-2018 .................................................................................................... 6 Table 14 NBO Company Shares of Still Light Grape Wine: % Total Volume 2014-2018 .................................................................................................... 7 Table 15 LBN Brand Shares of Still Light Grape Wine: % Total Volume 2015- 2018 ............................................................................................................. 7 Table 16 GBO Company Shares of Champagne: % Total Volume 2014-2018 ........... 8 Table 17 NBO Company Shares of Champagne: % Total Volume 2014-2018 ........... 8 Table 18 LBN Brand Shares of Champagne: % Total Volume 2015-2018 .................. 8 Table 19 GBO Company Shares of Other Sparkling Wine: % Total Volume 2014-2018 .................................................................................................... 9 Table 20 NBO Company Shares of Other Sparkling Wine: % Total Volume 2014-2018 .................................................................................................. 10 Table 21 LBN Brand Shares of Other Sparkling Wine: % Total Volume 2015- 2018 ........................................................................................................... 10 Table 22 GBO Company Shares of Fortified Wine and Vermouth: % Total Volume 2014-2018 ..................................................................................... 11 Table 23 NBO Company Shares of Fortified Wine and Vermouth: % Total Volume 2014-2018 ..................................................................................... 11 Table 24 LBN Brand Shares of Fortified Wine and Vermouth: % Total Volume 2015-2018 .................................................................................................. 12 Table 25 GBO Company Shares of Non-grape Wine: % Total Volume 2014- 2018 ........................................................................................................... 13 © Euromonitor International WINE IN DENMARK Passport ii Table 26 NBO Company Shares of Non-grape Wine: % Total Volume 2014- 2018 ........................................................................................................... 13 Table 27 LBN Brand Shares of Non-grape Wine: % Total Volume 2015-2018 ......... 13 Table 28 Forecast Sales of Wine by Category: Total Volume 2018-2023 ................. 14 Table 29 Forecast Sales of Wine by Category: Total Value 2018-2023 .................... 14 Table 30 Forecast Sales of Wine by Category: % Total Volume Growth 2018- 2023 ........................................................................................................... 14 Table 31 Forecast Sales of Wine by Category: % Total Value Growth 2018- 2023 ........................................................................................................... 15 © Euromonitor International WINE IN DENMARK Passport 1 WINE IN DENMARK HEADLINES ▪ In 2018 wine volume sales remain flat at around 150 million litres ▪ Warm weather boosts the volume sales of still rosé, still white and sparkling wines ▪ Consumer preference for higher quality and organic wines serves to drive up average unit price ▪ Competitive environment remains heavily fragmented ▪ Over the forecast period wine is expected to post a total volume CAGR of 1% to reach sales of 154 million litres in 2023 PROSPECTS Warm Weather Drives Sales of Lighter Wines The summer of 2018 in Denmark was unusually warm, with this helping to drive sales of lighter/chilled wines. For instance, Salling Group, the entity behind the Bilka, Føtex and Netto grocery chains, observed a strong increase in demand for lighter wines during the summer months of 2018. According to Salling, sales of still rosé wine in the summer of 2018 exceeded those of 2017, even reaching a record high. Similarly, the grocery retailer Coop reported a 230% increase in sales of still rosé wine during the months of May, June and July when compared with the previous year. Indeed, certain individual Coop stores reported that still rosé wine sales were three times higher in 2018 than in 2017. Wine importers and food/drink/tobacco specialists also benefited from the warm weather. The Association of Danish Wine Importers, Foreningen af Danske Vinimportører, reported that the hot summer weather in 2018 heavily boosted sales of still rosé, still white and sparkling wines at the expense of heavier/non-chilled still red wines. Non-alcoholic Wine A Strongly Growing Niche But An Anti-trend Is Emerging Wider health trends, specifically the active adoption of healthier lifestyles and a desire to lower one’s alcohol intake, have been the main drivers behind the strong growth of non- alcoholic wine. This is being further supported by a wider array of non-alcoholic wines in retail, especially from renowned wineries, and the perceived success of non-alcoholic wines in replicating the taste of alcoholic wines. Indeed, individual grocery retailer outlets have reported that their offer of non-alcoholic wines has expanded from just a handful of brands to several shelves. This resulted in volume sales increasing by 400-500% over the review period, with retailers confidently stating that growth will continue over the forecast period. According to these retailers, there is a heightened awareness of the need to abstain from alcohol when driving or pregnant and these considerations are also underpinning the soaring demand for non-alcoholic wine. In spite of this, and without disregarding the importance of health as a growth driver, there are also signs of an emerging anti-trend to the health movement. This anti-trend embraces perceived unhealthy foods and beverages. Grocery retailers are reporting that “unhealthy” products such as snacks, desserts, beer and non-red wine are among those which are growing the fastest in actual terms. © Euromonitor International WINE IN DENMARK Passport 2 COMPETITIVE LANDSCAPE A Diverse and Fragmented Competitive Landscape The wine competitive landscape remained hugely fragmented in 2018, largely as a result of a high number of wine importers, which is said to exceed 1,500 registered entities. Around 30 are considered to be “large” wine importers with annual volume sales of more than 100,000 bottles. Given this crowded landscape, smaller wine importers are becoming more specialised and are focusing on niches, seeking to tap into consumer curiosity and a willingness to try new wine types. This is resulting in a more varied array of wines sourced from a greater number of markets, including Albania, Bulgaria, India, Romania and Turkey. Indeed, Foreningen af Danske Vinimportører, the Association of Danish Wine Importers, has reported heightened interest among its members in Bulgarian and Romanian wines. In addition, the association says that its members are also increasingly focusing on specific wine regions, grape