Austria: Wine Market Defies the Economic Crisis

Despite the turbulent economy, Austrian wine is looking back on yet another successful year. Exports once again are promising record results. And even at home, the market share of Austrian wine has increased, thanks to the stabilization of direct sales (ex-cellar) and the successful development in the food retail market.

This picture shows vineyards coverd with snow

Export Boom - Uninterrupted - with Increasing Added Value

© ÖWM / Komitee Kamptal

Export Boom - Uninterrupted - with Increasing Added Value

So far, all indicators are showing that the record wine exports in 2007 will be surpassed in 2008. Estimates for 2008 (based on Statistik Austria figures from months I - IX plus fourth quarter figures from 2007) are projecting further growth in export quantities as well as in export earnings. Likewise, the Austrian Wine Marketing Board (AWMB) is showing a total volume of 60 million litres (+6, 9%) and a total value of € 113 million Euro (+8, 5%) for 2008. For bottled wine exports, which have already reached 87% of the total exports, the increase is even higher. "Our target is to force the export of bottled wines even further," declares Willi Klinger, general manager of the AWMB.

The most important export trade partners are Germany (57%), Switzerland (12%) and the USA (7%).  But the AWMB sees potential for even more growth in these countries. In recent years, exports to Great Britain and Scandinavia have undergone significant growth.

The new EU sales promotion for non-EU countries has enabled the opening up of markets which, until now, have not enjoyed much focus. This is extremely important for the entire European wine economy. "It was nearly impossible to work in countries like Russia or the entire Asian region because of the financial expense,” says Klinger. “But with the new promotion, the EU has taken an important step in building up, through increasing wine consumption, exports to these future markets." But also in extended countries such as Switzerland, the USA and Norway, distribution could be improved with new programmes in 2009. In these markets, Austrian wine is successful in the top quality ranges, but the share of wine imports overall is still less than 3%.

Targets for 2009: Optimism Despite the Difficult Conjuncture

Austria’s wine economy should develop positively despite the current difficult economic climate. And for this, the AWMB has three main strategic targets:

1. Defend Austria’s high domestic market share
2. Further increase the export of bottled wine to important key markets like Germany, Switzerland, USA, Scandinavia, Benelux and UK
3. Strengthen activities in new potential markets with increasing wine consumption (Russia, Asia, etc.) through utilization of EU extended country promotion

The AWMB underscores these targets with the fact that Austrian wines, especially Grüner Veltliner, fit brilliantly not only with Austria’s traditional cuisine, but also in combination with international cooking styles. The new brochure "Austrian Wine and Oriental Cuisine" was put together through expert workshops conducted in Austria & China. Soon this brochure will be available in the English and Chinese languages.

Wine Harvest 2008 – a Year of Intensive Work

The 2008 vintage demanded from Austrian winemakers one thing most of all: extreme diligence in the vineyards. Because of nature’s disasters such as hailstorms and extensive mould infection (Peronospora, for example), 2008 was one of the most difficult vintages over the last decade. "Also the harvest itself was very labour intensive,” explains Josef Pleil, president of the Austrian Viticulture Association. “More than a few vintners were gathering grapes for up to two months because of the weather. Also, particularly important was the careful selection of grapes for the highly valuable source material."

Presently the AWMB is expecting a harvest volume well above the long-standing annual average of 2.5 million hectolitres. The latest estimate, made by Statisik Austria in October 2008, is at 2.8 million hectolitres.

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