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
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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)
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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).
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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.
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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:
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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”)
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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)
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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
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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
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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
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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
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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?
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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
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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
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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
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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"
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Wine Marketing: The packaging
Celler del Roure: Setze Gallets
(PDO Valencia)
5 euros / bottle of 750 ml
16 euros / pack (4 bricks of 750ml.)
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Bodega San Ginés: Campos de Benítez
(Without PDO)
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Bodegas Protos
(PDO Rueda)
Bodegas Canopy
(PDO Mentrida)
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Azpilicueta
(PDO Rioja)
Wine Marketing: The brand/label
1. Clasical approach
2. Artisan/Natural approach
3. Modern approach
Rouzet and Seguin (2004)
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Wine Marketing: The brand/label
1. Clasical approach.
Wine Marketing: The brand/label
2. Artisan/Natural approach
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Wine Marketing: The brand/label
3. Modern approach.
Wine Marketing: The brand/label
3. Modern approach.
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Wine Marketing: The brand/label
3. Modern approach.
Bodega Matsu (Vintae Group)
(PDO Toro)
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Heretat de Cesilia: Lizana
(PDO Alicante)
+18%
sales
Cingles Blaus: Auri
(PDO Montsant)
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Cingles Blaus
(PDO Montsant)
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Beso de Vino (PDO Cariñena)
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Wine Marketing: The brand/label
When it tells a story…
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Wine Marketing: Branding
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Berberana
(PDO Rioja)
La Rioja Alta (PDO Rioja)
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Promotion
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Diversification
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Diversification
Thank You!!
[email protected]
@mkalicante
www.marketingandwine.com
Ricardo Sellers-Rubio
www.linkedin.com/pub/ricardosellers-rubio/65/848/7ab
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