1. Enovitis in Campo ORGANIC WINES ON GERMAN MARKET 5. Guigno 2015 The German wine market and the position of organic wines vis à vis supply and demand based on current market data and research Dr. Hermann Pilz, Chief Editor WEINWIRTSCHAFT

2. THE GERMAN WINE MARKET ORGANIC MARKET AND ORGANIC WINE PRODUCTION AND OFFER GERMAN ORGANIC WINE CONSUMERS Structure

3. The German Wine Market

4. Wine Market Balance Germany (million hl.) 1979-2014 Verbrauch Import Weinerzeugung Export Nettoexport Consumption Import Production Exports Exports netto

5. Market Shares of the Wine Colours 2014 White Rosé Red

6. Market Share for Wines of Germany Total Volume 20 Mill. hl German Wines 7,5 Mill. Hl Foreign Wines 12,5 Mill. hl

7. Basis: Food retail total + DM incl. Aldi – Q1-2009 – Q4-2014 Wein nach Farben - Preis Euro/Menge Price Development: Average Price Increase WINE Red White Rosé 1/2009 4/2014

8. Retail Stores: Where is Wine Purchased? 14.6 million hl. of still wine purchased by households Vintners & Coop Σ 8.000 6,00 € Special Trade, Highstreet Σ 4.000 10,00 € Supermarkets Σ 40.000 3,60 € Discount Σ 16.000 2,50 € Average price of wine: 4.65 €/l

9.  Demographic development is reducing wine consumption – The German population is declining – The percentage of older people is growing, lower consumption – Proportion of people is increasing who, for cultural reasons, do not drink wine – Market penetration is dropping The Climate for Wine in Germany Remains Positive, but...

10. Organic Wine Production and Offers

11.  The German market for organic foods is the biggest in Europe  2014 sales of organic food: 7.91 billion euros  German eco-area: 1,089,000 ha. (+ 2,7% compared to last year)  Number of organic farms: 23,937 (2,9% of the total agriculture)  2013 -> 2014 German households spent 4.8% more on organic food  Constant changes in the market and the consumers  Food retailers and discounters offer organic food in a variety of product groups  Target group has expanded and is more difficult to narrow down Current Situation 11 BÖLW 2015

12. Retail Stores: Where to buy? 12 Sales 2014 Percentage 2014 Sales 2013 Percentage 2013Growth Billion €% % Supermarkets / Grocery Stores4.2153%4.554%9% Health Food Shops2.6233%2.432%3,6% Other1.0914%1,115%-0,6% Total7.91100%7.6100%4,8% BÖLW,2014

13. Discount Special Offer: Bio Wine from Abruzzo

14. Global Organic Vineyard Acreage (2013) 14 Countries Organic Vineyards (ha.) Percentage of Vineyard Acreage Percentage of the Global Organic Vineyard Acreage 1 Spain79,0167.6%30.4% 2 France61,0557.5%23.5% 3 Italy52,8126.7%20.3% 4 USA11,4482.8%4.4% 5 Turkey8,8711.7%3.4% 6 Germany7,4007.3%2.7% 7 Greece5,0014.5%1.9% 9 Chile4,5672.3%1.8% 10 Austria4,1789.1%1.6% 11 Argentina3,1931.5%1.2% 12 Portugal2,5231.1%1.0% 13 China2,0000.4%0.8% Own representation in accordance with DWI, 2013

15.  Since 2007, the area of German organic vineyards has doubled  2012: 7,400 ha – 7.6% of all Germany’s vineyards  A total of 700 organic wineries – 3.7% of all wineries Situation 2013/2014 15 AssociationBusinessesSize (ha) ECOVIN2501,900 Bioland1261,025 VDP49980 Demeter47450 Naturland34285 Biokreis231 EU-certifiedX2,730 According to the associations and AMI 2013

16. Calculation on German Market: Model Calculation 16 Organic wine market in Germany: 1,160,000 HL German production 1 : 560,000 HL (45%) Imports 2 : 600,000 hl (55%) 8,000 hectares of organic vineyards (corresponds to 8% of the entire German vineyard area) Percentage of entire German wine market: 6.60% Number of organic vineyards: 700 Consumption per head in litres in Germany: approx. 1.4 litre/head 1: Estimate: Hochschule Geisenheim University; 2: Weinwirtschaft 2015/2, p. 50-52

17. 17 German Organic Wine - Consumers

18. Regularly Purchased Products with Organic Seal 18  Small changes – similar structure  Fruit, vegetables, dairy products, eggs and meat are ahead n=1225/1322 2009 Hoffmann & Szolnoki, 2010

19. Regularly Purchased Organic Products acc. to Social Class 19  More organic products in the upper classes n=1322

20. Regularly Purchased Organic Products acc. to Gender 20  Women buy more organic produce n=1322

21. Purchase Frequency of Organic Wine 21  22% of wine drinkers (8.9 million) deliberately buy organic wine now and again  78% of wine drinkers (31.8 million) do not n=1322

22. Comparison of Wine Consumers 22 Non-organic wine purchasers 78% of wine drinkers 31.8 million consumers Organic wine purchasers 22% of wine drinkers 8.9 million consumers

23. Positive developments in the organic sector in the past five years Positive image of organic products in the minds of consumers High proportion of organic products in Germany More and more wineries are converting to organic Approx. 8000 ha. organic vineyards Organic wine – higher social classes Summary 23 Only 3% regularly buy organic wine 18% buy organic wine less than once a month Consumers’ attitude: “100% natural” Recognition Deliberate purchase of organic wine

24. Bund Ökologische Lebensmittelwirtschaft (BÖLW) (2014), Zahlen, Daten und Fakten der Biobranche 2014. Bundesprogramm Ökologischer Landbau und andere Formen nachhaltiger Landwirtschaft (BÖLN) (2012), Präferenzen und Zahlungsbereitschaft deutscher Verbraucher bei Öko-Wein. Deutsches Weininstitut (DWI) (2013), Öko-Weinbau in Deutschland. Römmelt, W. (2015), Unruhe trotz Wachstum. Weinwirtschaft, 2015/2, S. 50-52. Wechsler, B. (2014), Intensivinterview am 11.11.2014 um 16:00 Uhr, Weinbaudomäne Oppenheim, Weinmarketing: Dienstleistungszentrum ländlicher Raum-Rheinland- Pfalz. Hoffmann, D. & Szolnoki, G. (2010), Verbrauchereinstellungen zu Bioweinen in Deutschland. 33rd World Congress of Vine and Wine (OIV), Tiflis, 20.-27.06.2010. Bibliography 24

25. Thank you