German wine writer Matthias Stelzig took us though a look at the importance of supermarkets in the German wine industry

1. Cheap is cool?
Fine wines in a rough environment

2. Wine-growing areas
•
•
•
•
•
•
Winelands are small
Limited variety
Long tradition
Don‘t cover demand
Open market
Not very patriotic

3. Who is in the market?
• France, Italy, and Spain
top players
• Rounded 11 of 14 million
hectoliter
• Small middle class
• Rest are also rans

4. Wine consumption 2012
France
US
in million
hectoliter
Italy
Germany
UK
0
10
20
30
40
• High
consumption in
total
• Not too many
wine drinkers
• Still five times
more beer

5. Household expenditures
• Spend more on wine
than on beer
• Nevertheless price
crucial role
• Trade very competitive
• Wine drinkers want wine
handy
• Quick choice at the shelf
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
32
29
25
9
5
Wine
Beer
Spirits
Sparking
Others

6. End up in discounter
• Most discounters in Europe
• Aldi wirtschaftswunder
success story
• New concept: one of every
item, no service, no frills
• No price tags
• No PR, no ads
• Turnover 50 bn Euro in 4000
stores, little loans, big profit
(750 mn Euro) – still privately
owned

7. Public notice of an authority?

8. Aldi & Audi
•
•
•
•
•
•
Clients mostly lower class
Invested in credibility (tests, panels)
No brand, brands themselves
New type of consumer
Buy prestigeous goods with service
For other goods look for best offer even with high
income
• Smart shoppers successful in discounters
• Aldisation

9. Low price warriors in pursuit of wine
• Discounters try to
achieve credibility
• Parker points,
consultants
• Consumer panels
approve that

10. 14.6 million hectoliter - who sells
them?
1,2
specialised retailers
2,6
cellar door
in million hectoliter
5,1
supermarkets
5,7
discounters
0
1
2
3
4
5
6

11. Driving the market
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•
•
•
Create new stars
Mean hell to some famous names
Work wonders on bubbles
Miraculous multiplication of chianti

12. How much is a bottle?
discount
2,6
supermarket
3,8
price per liter in €
cellar door
6
specialised
retail
10
0
2
4
6
8
10
12

13. Fine wines in a rough environment
•
•
•
•
•
Borolo, champagne and their kind
Germans get their share
S.A. Prum
Fritz Keller
Clever idea: subcontractors to make the
quantity
• First outcry went through top producers
• Everybody make their money, even the
family businesses, on once a year

14. New cellar at Keller‘s

15. Where does it all lead to?
•
•
•
•
Decay of quality wines?
Decline in prices?
Germans spend more for less
Specialised retailers have gained better shares

16. How to get a slice of the pie
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•
•
•
•
•
•
•
Hope for tide
Do things discounters don‘t do
Trading down no fun
Create ambiance, easy access, offer service
Focus on special wines, orange, natural, amphora
Be a pleasure, provide lifestyle: QR with message
Convenience (shop in the net, quick delivery)
Discounters die where zest for life begins