Market study - Barcelona Export – Consultoria d'exportació

Global wine trends and trade shows

admin on December 28, 2018

Alcohol-free wines, Easy drinking, canned Spritzer, vegan or organic wines – all these are relevant keywords in the latest trends of the wine industry. While the general number of wine consumption decreases, the number of non-drinkers, environmentally and health conscious people is on the rise. By now, many wineries have adapted to these new patterns and are exchanging their novelties worldwide. In the course of this, wine trade fairs have become more and more valuable, since they are great ways for networking, building brand recognition and spotting new trends.

New players shape the industry

France, Italy and Spain have long been well-known players in the wine industry. Within the past years, however, the scene in this sector has drastically changed: Countries of the “New World”, including Chile, Australia, South Africa and Argentina, have stepped up to top positions. Nevertheless, it is China that has developed the most, not only in terms of production but also regarding consumption. And the trend is about to continue. This nation makes up for the world’s largest importer of wine and the growing consumer base makes it an attractive place for growers. Also trade shows have adapted to this change in the industry and besides the major fairs in Europe, also other continents like Asia and America become more and more interesting and interested in hosting trade events.

The major trade shows for viniculture are:

Vinitaly, Italy

Italy is not only the country producing the highest quantities of wine, but also the host of the largest wine trade show worldwide: Bringing together more than 4.000 exhibitors and 128.000 visitors from 143 countries (2018), Vinitaly takes place once a year in Verona, Italy. The next chance for guests to take part at conferences, workshops, tastings and other events is from April 7^th-10^th, 2019.

ProWein, Germany

Germany’s major wine exhibition ProWein also has the reputation to be one of the world’s leading networking events. It is the number 1 meeting place for professionals from viticulture, production, trade and gastronomy. In 2018, 6.681 exhibitors presented their wines to more than 60.000 visitors. By now, the fair itself has expanded to the global level and experts from the wine industry can visit ProWine China in Shanghai (November 13th -15th 2019) or ProWine Asia, either in Hong Kong (May 7th-10th, 2019) or Singapore (2020). In Europe, the next edition happens March 17th-19th, 2019 in Düsseldorf.

Vinexpo, France

Since 1981, Vinexpo has connected experts of the wine industry to boost sales and stimulate the market. Taking place in Bordeaux (May 13^th-16^th, 2019), Hong Kong, Tokyo, Miami and Paris (2020), it is the only trade event of the wine and spirits sector that takes place on all three continents with the highest consumption rate. The new format “Vinexpo Explorer” is an exclusive event to promote one specific region with high potential each year.

ExpoVinis, Brasil

South America’s biggest wine show ExpoVinis takes place in São Paulo, Brazil and is often the market entry point for wine producers from abroad. Various countries from South America, like Chile and Argentina, count to the New World in wines and their importance should therefore not be underrated. The next edition is taking place June 11^th-14^th, 2019.

Asia

Besides ProWine and Vinexpo, also the Hong Kong International Wine & Spirits Fair (HKTDC) might be interesting for insiders of the sector. The HKTDC is one of the most influential Asian Wine trade fair that brought together nearly 20.000 trade buyers and many more public visitors in 2017. How many people will join the fair from November 7^th-9^th, 2019?

Good Food & Wine Show, Australia

Several times every year, the Good Food & Wine Show can be visited in Australia. Melbourne, Sydney, Perth and Brisbane all open their doors to display the latest trends of the wine industry.

More related information:

Vinisud and Vinovision 2019, two major French wine shows

The organic wine market in France

Our service of accompaniment at fairs

Vinisud 2018, the French trade-show of the Mediterranean wines

Case of success: The internationalisation of Singular Spirits’ artisanal spirits

Alimentaria 2018

Girona Gastronomical Forum 2017

How will Brexit affect Spain?

admin on December 21, 2018

After the postponement of the vote and Theresa May’s statements, Brexit returns to the present day and renews the uncertainties it has sown since the beginning of the British process of disassociation with the European Union, leaving that feeling of instability also in Spain where Brexit will affect in different ways, that we are analyzing today.

Why and how Brexit will affect Spain

Far from being a problem that is alien to our society and our businesses, Brexit is also a challenge for Spain and the entire European Union, which has been affected since the beginning of the process, suffering falls in the stock market, political and economic instability on the dates close to the referendum or falls in the IBEX.

With regard to the specific Spanish case, the situation has a much more direct influence added to the commercial relations that exist between all the countries of the European Union, since our country welcomes many British citizens and vice versa, as well as having solid commercial relations, especially in industries such as aeronautics, pharmaceuticals, automobiles and food.

Investments: the first concern

In recent years, Spain has suffered a series of economic ups and downs due to the crisis and has recovered thanks to investments from other European countries, among other things. The United Kingdom is the fifth country with the highest volume of investment and totaling 63,000 million euros spent in the last 11 years, operations facilitated by the special conditions between countries of the European Union.

These figures benefit our country especially in times of economic weakness, and will fall sharply when the Brexit materializes because the investment facilities granted by the special conditions between the countries of the European Union will cease to apply.

Tourism and the real estate sector, two of Brexit’s major players

One of the strong points at economic and commercial level of our country is the tourism sector, as we are one of the favorite destinations for our Mediterranean climate and gastronomic culture, being the United Kingdom one of the largest exporters of tourists to Spain this could change after the Brexit by the sum of difficulties and the installation of customs.

And just as tourism is an important source of employment and economy for Spain, real estate businesses move a large amount of market between nearby countries that decide to invest in second homes or move to our country; in this case the British are the foreigners who buy more homes in Spain.

Gibraltar and everyday life

Another of the keys to our relationship with the United Kingdom that has given much to talk about and has been the protagonist of different negotiations relating to Brexit is Gibraltar, as many Spaniards work in this area every day and vice versa as if it were just another extension of our territory thanks to the mobility facilities between the countries of the European Union.

The situation in Gibraltar is one of the most worrying for Spain with regard to the whole Brexit process, since there is a close spatial relationship due to the geographical proximity and the daily transit across these borders, which is a complicated issue if the resolution is not well tied up between the two countries.

The French gardening market

admin on September 5, 2018

The market of the private gardening represents in France 7.600 million euros in 2014

Habits of the French consumer

The French consumer buys 82% of the equipment in large gardening areas (such as Gammevert, Jardiland, etc.) prefers proximity and choice. Secondly, the large DIY areas (such as Mr. Bricolage, Leroy Merlin, etc.), with 46%, for the same reasons.

Leclerc, Super Uno or Auchan type supermarkets reach the third place with 43%, mainly for price reasons, and finally reach the web with 14%, in commercial places, due to their simplicity. In 54% of cases, the purchase is already planned by the customer, and 65% of the time you buy in the spring or summer. In 29% of cases, customers are willing to buy more than they came to buy. The most visited chains by customers are Truffaut, Jardiland and Leroy Merlin.

The areas where the population feels most passion for gardening is that of Franche Comté, Languedoc Rosselló and Aquitaine. On the other hand, the less important gardening areas come from North of Calais, Ile de France and Pays de la Loire.

The distribution channels

The French market of gardening has registered an annual average growth of 1% during the last decade. This global performance makes evident the disparities between the distribution channels:

– The circuits that have been able to exploit promising background trends (development of environmental sensitivity, increasing the attention of the French to their garden considered as a living room where they invest) show an above-average growth. This is the case of the gardening centers that benefit from the dynamism of outdoor plants, are developed in the related segments and are reinforced in green leisure and GSB that are positioned as multi-habitat / decoration specialists;

– Other channels have less than average growth. GSAs stagnate, sanctioned by a predominantly price-based approach, a reduced supply and a shortfall in the areas of supply and development of advice / service. Motoculture specialists have experienced a decline in sales in recent years as a result of the crisis.

Expansion and diversification of the offer, modernization of concepts

The challenges for distributors are:

– Improve the attendance rate of points of sale. This requires an extension of the offer to the garden but also the opening in other universes (pet store, decoration, outdoor recreation, even eating, textile …);

– Quickly adapt the offer to the effects of fashion and weather conditions;

– Capture novice gardeners by offering ready-to-use products because the garden is not a restriction (kits, custom planters, etc.);

– Increase customer loyalty. The signs seek to cultivate an “expert” positioning by the board (at the point of sale and through its website) and the services (diagnosis, soil analysis, guarantee, freight assistance, etc.);

– Offer attractive prices. In this perspective, the development of the white label is an important strategic focus. This is especially so, if the struggles of low cost to prevail (see the failure of DockJardin), the GSA develops the concepts dedicated to the garden (Jardi @ E. Leclerc, The Gardens of Auchan) and pure Internet players (Cdiscount, Rue takes Commerce) is positioned to the market.

The concentration of the sector

It is characterized by the great heterogeneity of chains and groups in terms of economic weight, size of the network and geographical coverage. This configuration favors a concentration movement, but operators will have to choose between internal or external growth to develop their network given the cost of these operations.

This movement would have to have as a result:

– new reconciliations between central and independent networks (measurement effect, increase in bargaining power);

– the absorption of some networks of insufficient measurement or regional ladder;

– the rise of leading brands with a consolidated reputation and sufficient financial margins to finance the development strategy;

– the decrease in the number of independent centers and lodges that constitute so many objectives for retailers and groups.

In France, 17.2 million people live in houses regularly. More than half of the houses have a garden area of at least 600 m², and 89% of French people have a gardening space at their home. The median surface of the garden is the highest in Europe, and with a median surface area of 500 m².

Current trends

In 2016, the purchasing value of agri-food products from organic farming was estimated to be 7.147 billion euros:

– 6,736 billion € correspond to household consumption (+21.7% in 2015).

– 411 million € of purchases of organic products served in the out-of-home catering. While 229 million € of these are in collective catering (+5% in 2015), 182 million € are in commercial catering (+ 10% in 2015).

Other considerations:

– First of all, 71% of the organic products that are consumed in France come from France

– Furthermore, regarding imported products, 15% come from countries from the European Union and the remaining part from the rest of the world.

– Lastly, 43% of imports are exotic products (banana, cacao, coffee,…) or Mediterranean products (olives, citrus fruits,…), which France does not produce or only has low production.

Details of sales regarding distribution channels:

The used distribution channels

Since 2011, organic sales growth in supermarkets has been relatively weaker than in other distribution channels. In 2016, the importance of developing sales of fruit and vegetables and grocery products in this circuit helped to maintain market share at almost 45%. In comparison, specialized organic distribution is at 37%, direct sales from producer to consumer at 13% and from artisans or traders at 5%.

The distribution of specialized organic products continues to be the most dynamic circuit with a growth rate of almost 24%. This is not only thanks to the opening of new stores, but also due to the increase in the average basket. Direct sales experienced slightly slower growth (+15%). Reasons for this are unfavourable weather conditions for production in 2016 and strong demand for long marketing channels.

The organic wine market in France

admin on June 11, 2018

Peculiarities of the organic wine market

In the distribution of organic wine, it is important to distinguish between:

-the sector specialised in the distribution of organic products (wholesales of organic products, eco-friendly stores and organic grocery store chains on the one side

-and the not-speacialised sector (traders of wine, HORECA, great distribution) on the other side.

Other characteristics of the French organic wines market are:

– 74% of the volume of organic wines marketed are DO (Denomination of Origin)
– More than half of the organic wines consumed are red wines
– 12% of the organic wines consumed are sparkling wines
– Imports of organic wines are very weak (1%)
– Organic wines represent 12% of the organic consumption of households

France, the third biggest producer worldwide after Spain and Italy

France ranks third among the strongest producers worldwide, following Spain and Italy. These three countries represent 73% of the world’s vineyards.

Massive increase in the conversion of vineyards in Europe

In 2016, organic vineyards represent 9.1% of the French vineyards, that is to say that 68,556 hectares are covered by organic vineyards. This shows an important evolution in recent years. In fact, areas converted to organic have increased eightfold since 2007 and we can now count more than 5,200 organic vineyards. In export, organic wine represents 2/3 of sales.

Major increase in vineyard conversion in France

Origin of supplies according to the types of organic products

France produces 99% of the wine it sells.

Consumer habits in France

The consumption criteria are as follows:

– Origin of the wine
– respect for the environment
– AOP reputation
– price
– availability in the shop
– proximity of the product

French consumers have the habit of buying their wines directly from the producer (41% of total consumption in France).

Consumption according to the type of organic products

The consumption of alcohol from organic farming has remained stable over the last 4 years and represents 12% of sales of organic products in France.

Profile of organic wine consumers

Profile of the type of consumer in France

– In France, 1 out of 3 wine consumers consume this kind of wines
– 1 out of 6 environmental-conscious consumers drink them
– 12% of consumers do not consume conventional wines
– 1% of French people only consume organic wine.
– Young people (between 18 and 24 years old) are especially interested in them. They represent 14% of consumers, compared to 8% who drink conventional wines. Young consumers are especially sensible to environmental reasons.
– According to the 2015 edition of the BIO Agengy’s barometer, 11% of consumers of organic wines intend to increase their consumption of this type of product over the next 6 months.
– 51% of French people would like to find a broader range of organic wines in supermarkets.

Conclusions about the market in France

– French wines have a good image, but compete with Spanish or Italian in many countries.

– In order to sell abroad, one has to put even more emphasis on their quality , its particularities and increase its participation at organic fairs (many in Europe), participation at competitions, organisation of tastings (wine shops, shops), in order to make them familiar among prestigious sommeliers.

– There is a good perspective for implementing organic wines more and more in restaurants.

The business opportunities that Mexico offers

admin on March 30, 2018

Barcelona Export has very solid relationships in this market due to the multiple business possibilities that Mexico offers us. Mexico is the leading economy in Latin America, with a very interesting geostrategic position that makes it the gateway to two major economic zones: USA and Canada (NAFTA) in the north and the Spanish-speaking countries in the south. And it has free trade agreements, which are very favourable for our exports, with all of them.

Characteristics of the Mexican market

Mexico is a large, Spanish-speaking, Central American country with a population of 127 million, of which 80% live in cities and the remaining 20% in rural areas. 20% of the population live below the poverty line; about 60% of the population live in precarious conditions and only 30% live watching their purchasing power grow. It is a very young population (the average age is 26 years) with a strong mixture of indigenous and Spanish (60%).

Its capital, Mexico City, is a megacity with 20 million inhabitants, followed by Guadalajara and Monterrey with about 5 million inhabitants, or Puebla and Toluca with 2 million inhabitants each.

The population’s consumption is strongly dominated by North-American habits. Mexicans are loyal to brands and are influenced by quality as well as by price.

Customs duties

For those countries that cannot rely on any free trade agreement with Mexico, the tariffs of the industrial sector are in the range of 10% to 20%, sometimes as high as 35%.

Mexico signed a free trade agreement with the European Union in 2000 and since 2007 all industrial products are duty free. Furthermore, extending the tariff reduction to agri-food products is taken into consideration.

Mexico has a promoter of its export and import, Pro México. This organisation collects all the information concerning imports and exports, tariffs and norms. Furthermore, it is the organiser of the grouped participation of Mexican exhibitors at international fairs.

There is an Import Guide available on the website of Mexican Customs, which includes extensive information on customs management, authorizations, procedures (paperwork) and temporary imports:

http://www.sat.gob.mx/aduanas/importando_exportando/ (choose “Guía de importación”)

What can we export to Mexico?

Exporting to Mexico presents a great business opportunity for Spanish companies, since there is no language barrier and products coming from Spain benefit from acceptance and their good reputation in terms of quality. The cultural affinity allows us to create commercial relationships built on trust – stronger and faster.

Traditionally, we have been exporting the following products from Spain:

– Equipment, parts and components for the automotive industry
– Installation and engineering of power generation plants
– Aircrafts
– Women’s fashion
– Cars
– Steel products

When talking about new business opportunities we encounter strong demand in the following sectors:

– Infrastructure
– Transport
– Telecommunication
– Energy, especially wind and solar
– Industry 4.0
– Quality inspection systems
– Cyber-security
– Electronics
– Construction

New players shape the industry

The major trade shows for viniculture are:

Vinitaly, Italy

ProWein, Germany

Vinexpo, France

ExpoVinis, Brasil

Asia

Good Food & Wine Show, Australia

More related information:

Why and how Brexit will affect Spain

Investments: the first concern

Tourism and the real estate sector, two of Brexit’s major players

Gibraltar and everyday life

Other links of interest:

The market of the private gardening represents in France 7.600 million euros in 2014

Habits of the French consumer

The distribution channels

Expansion and diversification of the offer, modernization of concepts

The concentration of the sector

Other related links:

Current trends

Other considerations:

Details of sales regarding distribution channels:

The used distribution channels

Other related links:

Peculiarities of the organic wine market

Other characteristics of the French organic wines market are:

France, the third biggest producer worldwide after Spain and Italy

Massive increase in the conversion of vineyards in Europe

Major increase in vineyard conversion in France

Origin of supplies according to the types of organic products

Consumer habits in France

The consumption criteria are as follows:

Consumption according to the type of organic products

Profile of organic wine consumers

Profile of the type of consumer in France

Conclusions about the market in France

Other related links:

Characteristics of the Mexican market

Customs duties

What can we export to Mexico?

Traditionally, we have been exporting the following products from Spain:

When talking about new business opportunities we encounter strong demand in the following sectors:

Other related links: