WINE MARKETS IN COVID 19 TIME
Yesterday we attended an interesting Webinar organized by the Tierra de Viñedos Foundation and given by the Spanish Observatory of the Wine Market. This type of exhibition makes us see the situation of wine exports worldwide.
From March to June 2020 there has been a notable decrease in exports, significantly affecting all producer markets. On the other hand, it should be noted the notable increase in exports of wine in bag in box format.
By markets, it can be mentioned that wine imports in China have decreased, a process that began before the appearance of COVID-19. This process began in April 2018 and has been accentuated in the first months of 2020.
Wine imports into Russia have declined in the first half of 2020, mainly due to new regulations affecting bulk wine imports.
The volume of wine exports from Spain has decreased by 7% in the March to June period, with signs of recovery since June, despite the sharp drop of 24% in May.
The workhorse of Spanish exports continues to be the average sale price, which we still have considerable differences with respect to other countries. In sparkling wines the world average is € 7.00 while Spanish exports are on average in this category at € 2.31. In the rest of the categories in bottled wine, the Spanish average stands at € 2.31 while the world average is € 3.96.
Among the markets in which Spain has increased its exports are: Norway, Latvia, Ireland, Brazil, and South Korea.
Regarding the exports of wine from Castilla La Mancha, they represent 51% in volume of Spanish exports and 23% in value with an average price that is less than a third of the average Spanish value.
The recovery of sales in bottled wines from Castilla La Mancha has occurred from June to September.
Regarding the exports of wine from Castilla La Mancha to the United Kingdom, they have not been affected by the BREXIT and they continue a positive trend, especially in value. However, wine exports from our region to the United States continue to decline considerably due to both the pandemic and heavy tariffs.
As current challenges of our wineries are:
- Defend prices.
- Improve the sales portfolio mix.
- Promote those that target final consumer markets.
From Foobespain we help to export.