Rabobank: Global wine exports pick up

Wednesday, 13 July, 2011
www.wineindustryinsight.com
Global exports of wine are generally picking up at a brisk pace compared to the soft start of 2010. Major exporters such as Spain, France, Italy, Chile and Argentina have all seen significant growth in export volumes.
South Africa and Australia appear to be the major exceptions, as the strength of their domestic currency has dampened demand in export markets.

Major import markets are showing mixed signs. In the UK, volumes appear to be growing, but pricing in that market remains a challenge for many exporters. German import volumes are down slightly (-1.1%) but value has risen (+3%) as there are indications of improvements in mid-priced wines. For many exporters, growth is coming not from the major markets such as the UK and the US, but rather from secondary markets such as Canada; emerging markets such as China, Brazil and South Korea; or from regional markets such as Mexico in the case of Argentina, or Kenya and Nigeria for South Africa.

French wine export value growth (20.7%) far outpaced volume growth (8.7%) in the first quarter of 2011. The growth, led by Champagne, Bordeaux, Burgundy and Côtes du Rhône, appears to be gaining momentum. The markets showing the greatest improvement in demand included the US, Germany, Hong Kong, China and Canada.

Italian exports grew 14.7% by volume and 13.7% by value in Q1 2011. The US, Switzerland and Canada were major growth markets by value, and Russia was a major volume growth driver, up 67%.

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