Why major off-trade wine producers are switching resources to premium on-trade and specialists
By Richard Siddle
You don’t win any prizes for standing still in the globally competitive world of wine production and buying ... Look at E&J Gallo. One of global industry’s biggest and most important and influential wine companies. It has increasingly recognised over the last 10 years that it cannot continue to grow like it has in the past relying just on supermarket-focused, mass market wine brands. Seventy percent of Gallo’s revenues now come from brands that did not exist in Gallo 15 years ago - 40% of its business is with brands it did not have 10 years ago ... all of which means 30% of its global turnover now is in premium wines...
The Origin Vineyards approach This week VINEX caught up with Bernard Fontannaz, founder of Origin Wines, that has up to now only been interested in building up what has become an impressive and well established business focused on supplying branded, own label and exclusive labels to supermarkets in major markets like the UK. Origin has now set up a separate premium wine business, Origin Vineyards...
Commercial but premium approach Gallo and Origin Wines are just two of a growing number of producers and brand owners that have been prepared to change the way they work to better guarantee and secure their own futures...
"In Europe the harvest will be reduced compared to 2018, which was extraordinary large..." Ignacio Sanchez Recarte, European Wine Companies Committee (CEEV)
France The French Ministry of Agriculture estimates the imminent harvest at 430 million litres, down 12% on 2018. The smaller yields will lead French bottlers to import... Buying opportunities in France: Now is the time to source and finalise competitive prices on ...
Spain Harvest is ongoing, but it seems inevitable that the total volume will be below the large 2018 harvest, that produced some 500 million litres. According to our best estimates, 2019 will be... Buying opportunities in Spain: This is the time for buyers to take advantage of the end-of-last-vintage prices...
Italy "We are back to the average of the last few years, a marked decline compared to last year's exceptional production with a variable quality, between good and excellent depending on the zone" ... Buying opportunities in Italy: After last year's record harvest, bulk wine prices fell an average of 27%...
"This harvest will probably be the toughest harvest that North Coast growers have experienced since 2010" ... Jeff Bitter, Allied Grape Growers of California
At this stage the harvest is expected to be slightly above average size, but events late in the harvest can significantly change the prospects, such as the wildfires of 2017... Buying opportunities in the US: Storage space prices are high at the moment, a signal that that there is still large quantities of 2018 wines available...
The VINEX Grape Exchange is a comprehensive trading exchange allowing growers and producers to offer and source fresh grapes using sophisticated trading methods, prior to each harvest.
As a result, grape growers and buyers from a plethora of countries can use the real-time exchange to offer or source grapes prior to harvest, in either the northern or southern hemispheres. In addition, the Grape Ex enables pre-harvest contracts to be traded over the 5 months prior to a countries harvest commencing, and then throughout the harvest period.
Benefits for Buyers
Target specific new sourcing requirements, including quality level, region and/or variety
Expand supplier base with new grower relationships
Negotiate one-off price competitive parcels, including Reverse Auction your requirements
Growers verified and approved by VINEX
(All purchase contracts are subject to the buyer's acceptance of the fruit, technical specification, and vineyard documentation)
Benefits for Growers
Transparent, independent reporting of market pricing
Easily target more buyers and expand your sales opportunities
Discreetly invite known buyers to counter-offer on your supply
Offer one-off price competitive parcels, including Auction highly sought-after varietals