Tag: europe

8 Keys to understanding how Brexit might affect the wine industry from a Spanish perspective

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Almost a month since the ‘no’ came from the UK to Europe, the most immediate response in consequences on the economy was the low level of the pound.

The time passed since the referendum has inspired one to envision various possible economic scenarios, especially in the field of food and wine, in which the UK has a primary role as a buyer.

Consequences for the export of Spanish and European wine

Following the referendum, it has opened a horizon of difficult questions for the future. The question is how Brexit will affect the economy? The truth is that it is difficult and complicated to try to provide an answer, although we can highlight some keys to try approach the question.

1. Lowering of the purchase power of the British people. If there is a factor that may affect the current export of wine, we are at the lowest concerning consumption capacity of the English as a result from a weak pound. If this trend is maintained in the future, it could ultimately affect the export of wine to the UK.

2. More depreciation of the pound against the dollar than against the euro. According to information published by the Spanish Observatory Wine Market (OEMV), the pound has depreciated more against the dollar than against the euro, so in this sense, could affect the  Americans wine industry more than the European wine industry. And this, a priori, could be positive for the Spanish and European market.

3. Free trade Tradition and raw material shortages. It is unlikely that the United Kingdom decides to impose new tariffs on European products because of its need for raw materials and its pro-free trade political tradition. Thus, given the circumstances, these two factors could facilitate exchange agreements.

4. The time needed for negocación of new trade relations. As pointed out in the article Brexit for wine lovers, published on Jancisrobinson.com, renegotiating agreements with the United Kingdom as a third country could take up to a decade, considering that within two years it will be necessary to determine the legal precepts from the United Kingdom. Therefore, a span this long could ultimately affect exports.

5. A healthy economy in Spanish wine exports. Despite the uncertainty, the current situation regarding Spanish wine exports to the UK is good, especially in terms of value. Thus, while the future is unclear, the Spanish market is in a good position, which can help offset possible negative effects.

In this sense, according to figures OEMV 2015, Spain exported to the UK a total 159.3 million liters of wine worth 343 million euros, representing an increase of 0.1% in terms of volume and 0.5% in terms of value. In fact, over the past 20 years, the average annual growth was 3.3% in volume and 4.9% in value. We can say, therefore, that the UK is buying Spanish wine, and does so with a growing trend of wines with O.D.

6. Competitive advantage in the price of Spanish wine. Although France, Italy, and Portugal top the list of wine suppliers to the UK, the fact is that the prices of Spanish wines are more competitive than those of other countries, a factor that undoubtedly plays a role for them. By contrast, wine of Burgundy which has been more costly since 2012 and that due to the adverse conditions of the current crop, could do even more- it would be most affected by the loss of purchase power of the English population.

Consequences from the English point of view

The consequences of Brexit, however, may not only affect exports, but also domestic business and exports from the United Kingdom.

7. Boost for English wine. For example, according to the analysis of Brexit for Wine lovers, producers of English wine could benefit from a hypothetical increase in the price of European wine, as they could position itself as a cheaper alternative for British consumers. Due to the fact of having more attractive prices, English wines could also gain a better position in the international market.

8. Loss of advantageous agreements for other industries. Although we have spoken mainly of wine, we can not forget that there is another large industry that could be affected in the medium and long term: namely the whiskey industry.

According to the specialized portal The Drinks Business in late June, the Scotch Whisky Association, they conceive the single European market as “a key to the success of Scotch” and for giants like Diageo and Pernod Ricard which voted to stay, the industry has substantially benefited from free trade agreements with South Korea, Vietnam, and Colombia. It is unclear, therefore, what will be the situation of the industry following the departure from the EU.

A lot at stake, a lot to decide

To conclude, if anything is clear, is that with so much at stake, decisions that will be taken at a high level will not be easy. The coming months will be decisive for the future, but the view must be set already and change is coming. Future scenarios, although not catastrophic, still represent a challenge for the wine- and spirit sector.

Young people drink less wine, but better

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In recent years, wine consumption among young people is smaller, depending on the country, but they prefer higher quality wines. The rise of wine tourism and the spread of wine consumption has made new generations to know more about the language of wine and the main Appellations of Origin.

The trend for young people to know how to drink quality wine spreads all along Europe. According to a report by Rabobank -a Dutch bank-, this idea is confirmed, since it states that key generations of wine consumers are those between 20 and 50 years.

These generations bet for premium wines and show great interest in artisan producers who care for their wines, make small productions and live to their customers.

Young people who drink quality wine in Europe equate to a rather sophisticated and semi-luxurious life. Moreover, young people are betting largely for the Internet, and buy wine online, and really know what brand they are purchasing, where it comes from, compare prices and watch the opinions of other users.

Other sources suggest these trends, since they do not drink much wine because the places where they offer good wines, are usually somewhat elitist, and young people who go there, do it when they have money. In addition, in Spain this is not entirely true, because there are taverns at lower prices where there are reference wine, care for their wine list and wine is something valued, both by young and adults.

Other data show that in Spain, the Spanish Wine Market Observatory states in its 2009 studies, that 5.5% of young people between 18 and 25 states consuming wine regularly, while just 10% of young people aged 26 to 35 years consumes it quite often.

 

 TAGS:Numanthia 2005Numanthia 2005

Numanthia 2005  a red wine with Toro DO with a blend based on tempranillo and tinta de Toro of 2005 and 14.50º of alcohol.

 

 

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Francis Ford Coppola Diamond Collection Silver Label Pinot Noir 2012  a wine red with DO California made with pinot Noir of 2012 and with 14º of alcohol content.

 

 

 TAGS:Protos Reserva 2009Protos Reserva 2009

Protos Reserva 2009 is a red wine with Ribera del Duero DO made with tinto Fino of 2009 and has an alcohol content of 14º. 

The 10 most sold beers (I)

 - Without any doubt, beer is the most refreshing and worldwide recognized drink because of its variety and by the time its importance has grown that much that there are even beer sommeliers that evaluate and approve each type of this drink made out of barley.

But which ones are the best and the most recognized beer brands? Quality and sale not always goes together but if you want to know which beers are the most sold in the world, today we give you a ranking of the 10 most sold beers in the world, starting with the last 6:

 10. Asahi Super Dry: This beer  with 12,3 barrels sold in 2011 became Japan’s most favourite beer and it also expanded to 50 countries more, with great acceptance in Europe. Asahi is the golden japanese beer most sold in Europe.

 9. Brahma: With a sale record of 17,4 million barrels in 2011 Brahma tries to position itself among the most famous beers and best valuated ones, also because of the spots thast are remote-controlled to a brasilian audience, played by Jennifer Lopez.

 8. Miller Lite: This brand with 18 million sold barrels in 2011 is popular between lovers of light beers and it reached position 4 in the United States. It is as well the sponsor of the internationally recognized events of NASCAR.

 7. Coors Light: This beer is one of the growing brands of the United States with 18,2 million  barrils of beer sold in 2011, beating Budweiser and becoming the second most popular among consumers. Since today its sale has increased year after year although it is still a small brand compared to the market leaders. Its future is promising if this trend persists. Concerning the advertisinig, there are new commercials protagonised by Jean Claude Van Damme.

 6. Heineken: Recognized worldwide and with 26 million barrels sold in 2011, this green bottles with etiquettes with a red star is one of the most favourites because of its lagertype. In 2012 this brand decreased in popularity in the United States and in Europe because of its price augmentation. Its sale decreased 1,7%. Concerning the advertising and campaigns, the popularity of Heineken grew from the moment James Bond starting to drink beer instead of a classical vodka.

 5. Skol: With 29,4 million bottles sold in 2011, it positions itself on place 5 of the sales. This beer is growing on the american, british and chinese market and is extremely popular in Africa and South America. For advertising Skol used social networks and created a webpage on which you can see a brazilian music festival. Legendary, whereever you can find it, it has had a great comeback.

Next monday: The 4 first ones! Can you wait for that?