The Commanderie de Bordeaux a Oslo spent 3 days in Bordeaux in October 2012 and had fantastic visits to chateaux in Haut Medoc, Pessac- Leognan and Sauternes. We also had a nice visit to M Caroline Delaroche at le Grand Conseil du Vin de Bordeaux. (GCVBX).  I gave her a copy of page 23 of the 2011 annual report from Vinmonopolet, the sole distributor of wines and spirits in Norway.

Page 23 is a statistic overview of the sale of wine during the years 2007 – 2011.It shows that the sale of French red wines in Norway is declining from 7,9 mill hl in 2007 to 5,5 mill hl in 2011. As for Bordeaux wines the figures are 463 thousand l in 2007 to 335 thousand l in 2011. Burgundy is the only region with a small increase, the other regions are declining.

At the same time top Bordeaux wines, GCC experience heavy demand. On the Monopoly’s release end of October of top Bordeaux wines (They have a focus area on their monthly releases of new wines,  and this time it was top Bordeaux wines mainly from 2005 and 2009 but also some older vintages. These releases are in the Monopolys 2 flagship stores, one in Oslo and one in Bergen.)   the store in Oslo sold wines for 11 mill NOK in 2 days. The quantities were limited, and there was a system of quotas, for example 1 bottle of Petrus 2009, and 2 bottles of Margaux.  Some would say prices were low NOK 19.000(1 EUR=7,50 NOK) for Petrus and NOK 7.000 for Margaux, but for many the prices seem very high and building up under the impression that Bordeaux wines is (too) expensive. In December there will be a release of older wines from the world, , and the top Bordeaux ones will probably be an easy sell.

However, Bordeaux wines are not only the GCC. I am sure that there are many interesting wines at a reasonable price, which is value for money. Wines from Bourg, Blaye,Fronsac, St. Emilion satelites,Entre Deux-Mers,Cadillac. Loupiac, and Cotes de Bordeaux and others. The problem is that they are not sufficiently known. That is not so easy, the Monopoly now lists more than 10.000 wines in their more than 200 pages A4 catalogue (www.vinmonopolet.no)  and some 300 from Bordeaux, of them some 200 at more than NOK 200 the bottle. i. e. ca 100 under the NOK 200 mark. Another problem is that the offer from the Monoply is divided in 2 segments, the socalled basis segment, available on the shelves in the stores, and the special segment which has to be ordered in the store (or the internet) and picked up a few days later. Most of the Bordeaux wines are listed in the latter segment.  The third problem is that advertising for alcoholic beverages is prohibited. The lions share for the sales in Norway is 150 NOK and below, the sale of BIB is steadily increasing, (not many Bordeaux wines are available in BIB) ,  and the overall  competition is stiff. Italy is the market leader for reds selling 15 mill hl in 2011. Germany is the market leader for whites, selling 5,2 mill hl.

So, it is indeed a challenge to sell wines which not sell themselves through their known names. Why take the challenge? Why bother? Why not sell the wines on other markets.? Well, I believe there is a market in Norway for Bordeaux wines from the lesser appellations, as I think many of them are good value… I have noticed the promotion article for Bordeaux and Bordeaux Superieur in Decanters November issue, and that a tasting and rating of 2009 Bourg and Blaye will be published in the December issue. It will probably show some good value wines I also think it is a challenge for the industry to get them marketed. Importers and hotel and restaurant people should be the prime target group.

We suggest that a campaign for these wines is included in the GCVB marketing plan for 2013.

The yearly en primeur tasting in August in Oslo attracts lots of people. I think that could be possible also for the wines not so well known, but  I guess there is always the problem of financing and organizing  a wine fair, bringing up the wines and not least people from the producers  to present their wines at a proper venue, inviting the right audience.  Something to consider?

 

Oslo, November 8th 2012

Bjørn Normann Hansen,
Commandeur
Commanderie de Bordeaux a Oslo

(+WSET Higher Certificate with Distinction
German Wine Academy, Post Graduate Certificate)

 

Post Scriptum: The story for 2012 is that Italy sold 16,3 mill l red wine, up from 15 mill l in 2011. France sold 5,4 mill l, down from 5,6 m l in 2011.  Bordeaux 2012 was 393.000 l, up from 335.000 l probably due to the Christmas sale of (expensive) wines.

For white wines Germany sold 5,3 mill l in 2012, up from 5,2 in 2011. France 4,7 mill l, up from 4,6 in 2011. Bordeaux whites 87.000 l in 2012, down from 92.000 l. Bordeaux whites are steadily decreasing since 2007, from 158.000 l in 2007 to 87000 in 2012.

 

Oslo, September 26.th 2013

BNH

 

2013

The figures for 2013 are now available. For red wines Italy continues to grow. Up from 16.3 mill l to 17,4 mill l in 2013. France 5,4 mill l in 2013, the same as in 2012= stagnation.

Germany whites up from 5,3 mill l to 5,5 mill l in 2013. France 5 mill l in 2013, up from 4,7mill l in 2012.

As for red Bordeaux the figures show an increase, up from 393.000 l to 456.000 l in 2013. In my opinion this is due to the Christmas sales of GCC Bordeaux and 2 excellent vintages 2009 and 2010. Bordeaux whites down to 74.000 l in 2013 from 87.000 l in 2012. For whites it is a steady decline from 158.000 l in 2008 to 74.000 l in 2013.

 

2014

The total sale of French still white wines in 2014 showed a modest increase of 2% from 2013, up to 5,1 mill litres. Bordeaux whites is a sad story, almost wiped out selling 108.000 litres in 2014, but the good thing is that it is up from 74.000 litres in 2013 which was all time low. Total sale of whites in 2014 was 18,3 mill litres, and the BIB share was 54%.

Total sale of French red was 5,0 mill litres in 2014, down from 5,4 mill litres in 2013, an 8% decrease. Bordeaux reds were 341.000 litres in 2014, down from 456.000 litres in 2013, a serious fall of 25%. Total sale of red wines was 41,7 mill litres in 2014, down from 42,9 mill litres in 2013. BIB share 59%.

I think this development calls for increased marketing activities from Bordeaux. The market in 2015 will be more demanding due to increased competition and a weakening NOK. The visit on January 12th from the Grand Cercle des vins de Bordeaux was therefore very welcomed, and we hope they come back next year. There are many excellent wines at a favourable price/value to be discovered,

 

2015

The Monopoly has over 300 stores throughout the country and has an excellent reputation among the consumers. However, the monopoly faces major competition from the taxfree shops for the incoming traffic which are present on the airports with international flights.The shops are under international ownership(the German company Heineman) and their presence  with a good selection of wines, combined with an increased taxfree quota  from 4 to 6 bottles(and another 32 at a flat tax rate of NOK 40) has boosted their sales.

It is also stiff competition from Sweden where the government taxes on alcohol are much lower than in Norway

It is likely that the stagnating/decreasing sales will continue, and marketing activities is as important as ever. It will be a stiff competition between the 400 agents/wholesalers delievering to the Monopoly. The 10 biggest importers have a market share of almost 40%. There are 4 major distribution/transportation companies delievering to the Monoplys 300 shops. Together their market share is 90%.

The figures for 2015 show a turnover for red wine of 41,1 mill litres, down from 41,7 mill litres in 2014. Italy is still in pole position with 17,5 mill litres or 42,5% of the total. The region of Veneto alone has sold 5 mill litres. Spain has a total of 5 mill litres, followed by France 4,4mill litres. Italy is down 220.000 litres, Spain is down 400.000 litres and France is down 600.000 litres compared to the 2014 figures.  The French bestsellers are Languedoc-Rousillon 2 mill litres and Rhone South 1,4 mill litres. Bordeaux 2015 was 354.000 litres, up from 342.000 last year.

As for whites the total sale was 17,7 mill litres of which Germany as no 1 stands for 5,1 mill litres.(5,5 mill litres in 2014). France is no 2 with 4,6 mill litres, down from 5,1 mill litres in 2014. The main French sellers are Languedoc-Rousillon 1,2 mill litres(as in 2014) Burgundy  1,2 mill litres(down 200.000 litres) and South West 1,1 mill litres(down 200,ooo litres)White Bordeaux sold 83.000 litres, down from 108.000 in 2014. The development in sales for white Bordeaux should worry someone.

Sparkling wines is the winner for 2015. 4,5 mill litres in 2015(up 300.000 litres. Rose wine is stable at 2,1 mill litres, of which France has 940.000 litres.

As a conclusion 2015 was a difficult year with stagnating sales and stiff competition. The marketing of French wine in Norway is modest. Italy, Spain and Germany are more active. The negociant Sovex will repeat its Bordeaux tasting in August this year. 30 chateaux will participate. The Monopoly will release a bunch of Bordeaux wines in September. It is to hope that this will lead to an increased demand.

 

2016

Total sale of red decreased from 41,1 mill litres in 2015 to 40,5 mill litres in 2016. Italy still in front fell from 17,5 mill to 16,6 mill litres. Spain number 2 increased with 300.000 l to 5,3 mill l. Chile number 3 increased from 4 mill to 4,3 mill litres. France number 4 dropped from 4,4 mill l to 4,2 mills.  In 5 years, the total sale of reds has decreased from 43 mill l to 40,5 mill l

As for whites’ total sales increased from 17 mill l to 18 mill l in 2016 reflecting the trend that consumer preference is for whites. Germnany stable at 5 mill l and France up from 4,6 to 4,8 mill l. Bordeaux seemsto have broken the downward trendfrom kast years and can log an increase of 200.000 l from 83.000 to 305.000 l.

Looking back on the last 5 years we can summarize: Red wines down 2,5 mill l, whites up 1,3 mill l, sparkling up 1,7 mill l, rose up 0,5 mill l

 

2017

Total sale of red wines shows a slow stagnation over the last 5 years from 42,8 mill hl in 2013 to 39,8 mill hl in 2017. Market leader Italy down from 17,4 mill hl in 2013 to 15,6 mill hl in 2017. Spain on second place shows a moderate growth from 5,5 mill hl in 2013 to 5,7 mill hl in 2017.France is third, down from 5,4 mill hl in 2013 to 4,6 mill hl in 2017.  Chile 4 mill hl, USA 3 mill hl, Portugal and Australia, 2,5 mill hl follow.

As for red Bordeaux the sales in 2013 was 456.000 liters with a steady decline in 2014 and 2015, a moderate growth  in 2016 and an encouraging growth in 2017 to 479.000 liters.

As for white’s total sale is stable at 18 mill hl. Germany on top 5 mill hl. Down from 5,5 mill hl in 2013. France is second 4,6 mill hl down from 5 mill hl in 2013.  Italy 2 mill, Chile 1,5 mill and Australia ,3 mill follow.

White Bordeaux is widely varying, 74.000 liters in 2013, 108.000 in 2014, 85.000 in 2015. 305.000 in 2016 and 189.000 in 2017. White Bordeaux remains in the shadow of Burgundy,the Southwest, Languedoc-Roussilion and Loire.

Sparkling wines are on a steady increase, up from 3,7 mill hl in 2013 to 4,8 mill hl in 2017. Another trend is the growth for rose wines, up from 1,7 mill hl in 2013 to 2,2 mill hl in 2017.

 

2018

Total sales of red wines in 2018 decreased with 1 million litres  to 38,7 mill litres. Market leader Italy  down  with 1 mill litres  to 14,6 mill litres. Spain on second place stable  at 5,7 mill liters. France on third place up 300.000 litres to 4,8 mill.. Of the French sales Bordeaux contributed with 672.000 litres up 200.000 litres which is encouraging.. The lions share of the French sales is Rhone and Languedoc-Roussillon wines.

As for whites total sales increased with 1,1 mill litres, up to  19 mill litres. Market leader Germany increased  with 200.000 litres. France on second place  had an increase of 100.000 litres. The lions share of French whites is  Burgundy and Languedoc-Roussillon. Bordeaux whites  down 50.000 litres to 143.000 litres., which is worrying.

Sparkling  wines are steadily increasing, up 400.000 litres  to 5,2 mill in 2018, as is rose wine, up 600.000 litres to 2,8 mill. Cider is also growing every year, up to 200.000 litres in 2018.

 

2019

Total  sales of red wines in 2019 remained stable at 38,6 mill litres. Market leader Italy also stable at  14,5 mill litres. Spain on second place stable at  5,7 mill. France on 3rd place up 350.000 litres to 5,1 mill.. Of the French sales Bordeaux contributed with 638.000 litres, down 40.000 litres. The lions share of French wines is still  Rhone and Languedoc/Roussillon.

As for whites sales remained stable  with 18 mill litres. Market leader Germany stable  at 5,2 mill.. France on second place had an increase of 80.000 litres, mainly Burgundy and Languedoc Roussillon. Bordeaux white further  down 15.000  litres to  127.000litres. 2019 was not an encouraging year for Bordeaux wines.

Sparkling wines are steadily increasing, up 300.000 litres to 5,5 mill in 2019. Rose wines stable at  2,8 mill. Cider  growing  with 20,000 l to  236.000 l in 2019.