German wines around the world

Exports up by about 5.6% /
Riesling boom in the US / new beginning in the UK

Mainz, August 2003

In contrast to the downward economic trend worldwide, German wine producers are increasing their exports to over 120 countries. The latest data from the Federal Bureau of Statistics shows that between April 2002 and May 2003 there was an increase in the value of exports of about 5.6%, around 377 million Euros.

Armin Göring, director of the German Wine Institute (DWI) based in Mainz, reports a boom in exports to the USA: "German Riesling in the US is demanded as never before. Exports have increased by about 36% over the last year and this with an average price of 3.44 Euros per litre. Data shows that we are mainly selling noble aromatic Riesling Spätlesen and Auslesen." Therefore the US is now the second largest export market. Japan (+2%) and the Netherlands (+13%) have been left far behind. The trend is also continuing this year. Many US importers are announcing, after an increase of 10% in the first quarter of 2003, that they have sold out of the 2001 vintage and 2002 cask wines. "Top German wines are regaining the reputation they deserve. I am very optimistic that this situation will continue for quite some time, and that we can also convince consumers about our great dry wines. Many restaurants have already discovered that harmonious dry Rieslings are the ideal menu companion."

England is still no.1
The most important export market is still the UK, where over 36% of German wine exports go. In addition, there are a lot of Britons who travel to the French channel ports, especially Calais, to buy their wines there to avoid the UK's high wine duty. Those 6.1% of German wine exports, which elevate France to the fifth most important wine export market, are mainly consumed in the UK.

In total exports to the UK have decreased (-10%). Above all consumption of sweet white wines in the entry-level price segment has dropped further. Known as "Liebfraumilch" those wines have been a top export for years. Nowadays they are mainly appreciated by an elderly generation, whose wine drinking frequency is low. Happily in recent months the British media has discovered Riesling as the new favourite of the wine world. The major supermarkets (Tesco, Marks & Spencer, Waitrose) have reacted to the positive coverage and the renewal of interest from the consumer. In contrast to the US, they have added mainly dry, high value Riesling wines to their stock. This positive development is supported by top British restaurants, who have (re-)discovered that Riesling is the perfect food matching wine.

In Armin Göring's opinion, Germany's export economy is on the right track: "German wines have increased by around 35% in the mid price segment of £3-5. Looking at the more than positive media coverage and the current international Riesling boom, we look forward to a positive future for German wines on the UK market."

Light and dark in the rest of the world
The picture from the other smaller export markets is very diverse. In Scandinavia German white wines are traditionally well represented, however, they have to struggle with the trend towards red wine consumption. In the major eastern Asian market, Japan, the downward economic trend has taken its toll on the wine market and has led to a decrease in total wine consumption during recent years. On a more positive note sales of dry Classic wines, which seem to match the needs of the consumer very well, have been successful here as well as in Scandinavia, Belgium and the Netherlands. The German wine industry has great expectations for the eastern European markets, mainly Russia and Poland, where a great number of inhabitants, a tradition of wine as well as increasing wealth will lead to growing wine consumption.

The German Wine Institute supports wine exports
To support German wine companies in foreign markets the DWI has established German Wine Information Bureaus in 14 countries - from New York to Tokyo - who undertake advertising, marketing, PR and events around German wines. In addition to participation at international wine fairs such as the 'London International Wine and Spirits Fair' or 'Vinexpo' in Bordeaux, DWI-Overseas Marketing organises day-long tastings in the major export markets. After London, Copenhagen, Tokyo, Nagoya, Osaka and Seoul, there will be presentations in September in Amsterdam, Brussels and Helsinki as well as in New York and San Francisco and next year in Moscow and Warsaw too. The interest of German wine producers in these events has never been higher. For example last year there were 12 estates, who represented themselves at the "Vintage Tastings" in New York, while this year about 55 German estates, co-operatives and cellars from almost every winegrowing region will participate.

Return to News