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International news
Further increase in world wine consumption predicted
The world wide wine consumption for 2000 is estimated at 210 million hectolitres, which implies an increase of 5,6% since 1994. According to a report that has just been released by VinExpo, wine consumption in all the most important countries is expected to increase. Asia (China, Japan, South Korea, Singapore and Taiwan), Northern Europe (Denmark, Sweden, Finland and Norway) and North America (USA and Canada) experienced the biggest increases with 68%, 30% and 24% respectively.
Over the same period consumption decreased in two regions only, namely Eastern Europe (Romania, Hungary, Bulgaria and Poland) which decreased by 5%, and South America which is down by 11%. The reason for this decrease is encouraging, however, in the sense that on the whole, consumers in these countries are busy changing their drinking habits and switching to higher quality products.
The individual countries who experienced the biggest increases, were Taiwan (106%), Poland (89%), Japan (87%), Singapore (73%), Finland (71%), Norway (48%), Belgium (43%) and the UK (31%). According to the VinExpo report, the world wide wine consumption will increase even further to 221 million hectolitres in 2006, which means further growth of 5%.
Stricter code for liquor marketing in the UK
The UK's liquor ombudsman has recently adjusted its 'Code on Marketing Standards' to restrict the use and abuse of alcohol by minors. This code is aimed at the restriction of irresponsible promotions, sponsorships, websites and brands.
It is important for local wine companies who are exporting to the UK to take note of these developments and obtain more information about it, since it may have certain implications for their marketing strategies for this market.
In 1996 organisation issued a code to regulate the promotion of "alcopops" and with this most recent adjustment, the code is extended to broader promotional activities. Since 1996 more than 60 products have been removed from the market since their design was appealing to children or encouraged anti-social behaviour.
So for example teddy bears and other toys with liquor brand names are not allowed. Equally prohibited are brand websites that encourage dangerous liquor games. Rules with regard to the names and packaging of products have also become stricter. Alcoholic liquor marketed as food, such as jellies and liquor in ice form, will also have to comply with the Code's requirements. In future alcoholic liquor will not be allowed to be packaged or promoted in a way that portrays bravado, sexual or social success or popularity.
Survey about wine corks produces mixed results
An Internet survey in June and July, with more than 4 000 people giving their opinions and thoughts about wine corks, produced interesting results. The survey was conducted by APCOR, the Portuguese Cork Association, and the results should therefore be seen in this context.
Eighty per cent of the respondents were wine drinkers, while almost 20% were represented by wine specialists, wine journalists, wine dealers, wine importers or agents, and winemakers.
About 56% of the respondents are of the opinion that real cork is the best kind of seal, the reasons being that it is natural, traditional and romantic. Almost 60% of the respondents want more information about the cork when they select their wine, for example on the label or the supermarket shelf.
Approximately 61% prefer their favourite wine to be sealed with a cork, and indicated that they were prepared to run the risk of a wine that could possibly have cork taint.
Only 18% of the respondents like plastic corks. Those who do not like it, said it was hard to extract plastic corks from the bottle and equally hard to reseal the bottle, or even that the plastic corks gave the wine a strange taste.
About 25% of the respondents reckon that screw caps are acceptable, especially for light or young wines. As in the case of corks, screw caps have the advantage that the bottle can be sealed again. Those who are not in favour of screw caps feel that they are cheap and influence the taste of the wine.
These results show clearly that the opinions regarding corks are widely divergent. It is therefore important that the kind of seal for a specific wine be given serious consideration and that the targeted market segment, the image desired for the wine, and primarily the needs of the targeted end consumer dictate the kind of seal.
EU increases financing of vineyard transformation
For the 2002/3 marketing year, the European Union has increased its financing for the restructuring and transformation of vineyards in the EU by 5% to E443 million (approximately R4,43 billion). This allocation will be supplemented by approximately E42 million that was not employed in 2001/2.
Approximately 30% of the total amount (approximately E157 million) will be paid out to Spain. Second most will go to Italy (E124), followed by France (E95). Approximately 86% of the supplementary amount will be made available to Spain.
Australia prepares for shortages
The AWBC (Australian Wine and Brandy Corporation) has just expressed their concern about a possible shortage situation as a result of drastically reduced plantings. This, despite their short term "supply challenge" in red wine. Plantings peaked at 14 000 hectares in 1998, but after warnings about overproduction less plantings took place. In 2001 just 1 000 hectares were planted. Their projections are that Australia will move into a shortage situation in 2006, given the current downward pressure on the prices of red grapes and bottled wine.
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Wynboer is incorporated in WineLand, magazine of the SA wine producers.
