Germany BUSINESS

Question 1

Outline average vineyard holding and associated trends (3)

Answer 1

Half own 3ha

Number of growers has fallen

Area under vine has grown but mainly on flatter slopes

Question 2

Outline why production costs are high for some growers (3)

Answer 2

1. Steep slopes –> labour costs
2. Botrytis –> selective picking –> labour costs
3. Vintage variation –> cash flow pressure

Question 3

How has Germany tried to combat the fall in growers?

Answer 3

1. Generation Riesling promotion for young winemakers
2. New geographic system should help higher costs sites command better pricing

Question 4

How do estates vary? (3)

Answer 4

Size: 5ha - 100ha

Age: new growers to centuries old institutions

Purpose: charitable organisations e.g. Burgerspital

Question 5

How important are co-ops and merchants in Germany?

Answer 5

Co-ops process 30%, A LOT in Baden and Wurttemberg.

Declined, but still essential.

More co-ops including quality focussed wines

Merchants remained main source of high-vol wines to serve large, price-sensitive domestic market

Question 6

Outline trends in German wine consumption

Answer 6

1. Increased demand for drier whites
2. Increased demand for reds
3. 4th-largest wine consuming country
4. Large importer of wine

Question 7

Outline trends in German wine exports

Answer 7

1. Export volumes down
2. Export value up
3. Above trend driven by reduction in bulk shipping wine and increase in bottle shipping
4. Largest markets are US, NL, UK, Norway, Sweden - large % of exports to UK is inexp Liebfraumilch

Question 8

How is German wine promoted abroad?

Answer 8

German Wine Institute:

1. Riesling Weeks in 13 countries