German Wine Exports Boom

Highest export values since 1985
Double-digit growth in the most important export markets
Riesling remains the drawing card

On the rise since 2001, German wine exports continued to grow in 2005. Last year they reached a value of 475 million Euros – the highest level since 1985. Compared with the year before, this means an increase in value of ten percent. Exporters were able to increase their average per-liter export profits by ten cents and export volume by four percent, equivalent to an overall volume of 265 million liters. These figures also take into account re-exports of foreign wines.

Great Britain continues to be Germany’s most important export market, accounting for some 27% of export revenues, followed by the USA (16%) and The Netherlands (12%). Yet, the British market showed little growth. The export value increase of +0.7% was offset by a negative export volume of -7.6%. According to Armin Görng, managing director of the German Wine Institute/Mainz: “Stable value and lower volume are the result of the repositioning of German wine in the middle-price segment of the British wine trade. As such, the increase in value of higher-priced wines compensated for the lower volume in trade with simple quaffing wines.”

Growth of Export Values Exceeds 20 Percent in the USA and The Netherlands
Progress on the export front is doubtlessly related to the German wine industry’s successful efforts to improve quality and to focus its marketing stategies on Germany’s leading varietal, Riesling. In the USA, Germany’s second largest export market, the value of exports has nearly doubled within the past four years. It reached 77.8 million Euros in 2005, an increase of 20% compared with the year before. Furthermore, the average value per liter – a healthy 3.13 Euros – underscores the overall upswing.

The Dutch market has also developed nicely. Exports to The Netherlands also increased by 20% and are now worth 58.7 million Euros. Growth in this important market is due primarily to increased sales within the grocery trade, where modern German wines, such as Classic, have been well received and Riesling, as well as other varietals, are in demand. It is also worth pointing out that not insignificant quantities of German wine enter Holland through direct sales, i.e. on-site sales to Dutch tourists during visits to German wine country.

The restructuring of the range of wine exported to Japan is slowly, but surely, bearing fruit. For the first time since 1998, export values registered a plus (+1%). This bodes well. Among the smaller markets, Norway showed dynamic growth with a 29% increase, valued at some 17 million Euros. After a short interim in which Italy was market leader in the white wine segment, Germany has resumed this position in Norway.

Armin Göring believes that there is potential for additional export growth: “With our diverse range of modern wines, above all in the medium- and premium-price segments, we’re in a good position, and thoroughly optimistic that our exports will continue to increase in the coming years. Our stated objective is to be the international leader in quality in the white wine sector and to generate more interest in our red wines among consumers and the trade.”

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