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Sales of Beer Decline as Wine Takes the Fore in the German Drink Market

Business Wire, May 7, 2008

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c90927) has announced the addition of Germany Food and Drink Report Q2 2008 to their offering.

The Germany Food Drink Report provides independent forecasts and competitive intelligence on Germanys food and drink industry.

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While the German beer industry is suffering due to declining domestic demand, the country's wine producers are experiencing a boom as domestic drinkers increasingly prefer wine to beer and the international reputation of German wine grows. This growing appreciation of German wine represents an opportunity for the nations wine industry however the beer industry may need a radical new approach to counter declining sales as discussed in The newly-published Q208 Germany Food & Drink Report. Germans consume the second-largest amount of beer per capita in the world, behind the Czechs, however sales of beer have been steadily declining over the past ten years. Germany's health-conscious population increasingly prefers non-alcoholic drinks or, when they are drinking alcohol, are opting for wine which has less calories and offers health benefits. This lower consumption of alcohol can also be attributed to the country's relatively high unemployment over recent years, with many consumers not having the money to spend on luxuries such as alcohol. Finally younger drinkers are increasingly opting for alternative alcoholic drinks such as cocktails and spirits with mixers.

In December 2007 the German federal statistics office Statistisches Bundesamt Deutschland reported that in 2007 beer sales fell to their lowest level since records began in 1993. Over the year 22bn pints of beer were sold representing a 2.7% year-on-year (y-o-y) decline on 2006. BMI expects this trend to continue with value sales dropping by a further 3.5% over the next five years to 2012. Diversification is one strategy that German brewers may have to pursue if sales of beer continue to decline rapidly and local brewer Bitburger announced in November 2007 that it would be partnering with Austrian fruit juice maker Rauch to add a range of fruit juices to its portfolio to lessen its reliance on beer.

Meanwhile, the country's wine industry is experiencing a mini revival. Over the past five years, sales of wine in Germany have increased by 11.1% and BMI is forecasting value sales growth of 11.3% to US$5.14bn in 2012. Over half of the wine consumed in Germany is domestically produced and this figure is expected to rise as Germany's wine industry continues to market itself successfully. Perhaps even more promising is the growing international reputation of German wine with Riesling and Pinot Noir the most successful grape varieties. In 2007 German wine exports rose by 8% and since 2002 exports to of Riesling to the US have tripled. The UK remains the country's most important export market accounting for a quarter of all Germany's wine exports and here too German wine is increasingly being bought by sophisticated wine drinkers rather than just by price-conscious consumers wanting something sweet.

Companies Mentioned:

Oetker Group

Nordmilch Group

Emig GmbH & Co KG (GerberEmig Group)

Radeberger Group

InBev Germany

Lidl Group

Rewe Group

For more information visit http://www.researchandmarkets.com/reports/c90927

Business Services Industry

Sales of Beer Decline as Wine Takes the Fore in the German Drink Market

Business Wire, May 7, 2008

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