Dusseldorf The big fireworks are canceled again on New Year’s Eve, balls and dance parties are prohibited. However, even in the pandemic, Germans cannot completely take their champagne mood away. “People are only allowed to toast in a small group, but they treat themselves to something good,” says Andreas Brokemper, head of the world’s largest sparkling wine manufacturer Henkell Freixenet, the Handelsblatt.
German consumers, who are otherwise concerned about low prices, increasingly turn to premium sparkling wine in times of crisis. Sales are developing better than sales – a trend that has been observed for several years.
According to market researcher IRI, sales of champagne and crémant rose by double digits, and that of Prosecco Spumante even increased by over 30 percent. The sales in the German retail trade from January to November were examined in comparison to the previous year.
The cheaper sparkling wine, on the other hand, fell slightly. “Overall, the German sparkling wine market proved to be quite stable in the crisis in the second year of the pandemic,” emphasizes Brokemper. However, the harvests are becoming increasingly unpredictable and certain grape varieties are scarce. This should result in rising prices in 2022.
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In 2020, sales of sparkling wine in Germany totaled around 274 million liters. That was – despite lockdowns in the catering trade and travel restrictions – only 2.1 percent less than in the previous year, determined the Federal Statistical Office. Sparkling wine was mainly bought in supermarkets because the catering, airlines and duty-free sales channels were largely eliminated.
Every German drank 3.3 liters of sparkling wine on average in 2020. That’s around four 0.75-liter bottles. The events have been becoming more and more informal for years. “It used to be a toast for a birthday, wedding or New Year’s Eve, today it’s simply about enjoyment or a festive moment,” explains Christof Queisser, Managing Director of Rotkäppchen-Mumm, the German market leader for sparkling wine.
December with Christmas and New Year’s Eve is still the month with the highest sales for sparkling wine, but the seasonal curve is clearly flat, observes the Rotkäppchen boss.
The company, based in Freyburg / Unstrut, achieved sales of around 1.2 billion euros in 2020 with 330 million bottles – a slight increase compared to the previous year. Every second bottle of sparkling wine that is drunk in this country comes from Rotkäppchen-Mumm. The cult sparkling wine from Saxony-Anhalt is one of the few East German brands that have enjoyed success throughout Germany after the fall of the Wall.
Drinking habits are changing. Germans are drinking champagne, prosecco or cava more and more often at home alone or with friends. 41 percent want to offer their guests a “pleasure experience”, shows a study commissioned by Little Red Riding Hood. “More than usual, sparkling wine has gained in importance as an aperitif drink and has created a lifestyle trend,” states the Association of German Sektkellereien.
Non-alcoholic sparkling wine is on the rise
Alcohol-free sparkling wine is also becoming increasingly popular. The health awareness of consumers has increased significantly and with it the demand in this segment, states the German Wine Institute. “With a market share of four percent, non-alcoholic sparkling wine is still a niche market, but it is growing steadily,” says Henkell-Freixenet boss Brokemper. According to its own information, the sparkling wine cellar is the world’s leading supplier of sparkling wine without alcohol.
The trend towards more premium is also reflected in the growing popularity of Winzersekt, the German answer to champagne. According to the Federal Statistical Office, 1086 winemakers across Germany pressed sparkling wine in 2020.
As with champagne, all sparkling wines go through a second fermentation in the bottle. This must be at least nine months and can take a few years. Only grapes from our own vineyards may be used for the basic sparkling wine of a sparkling wine.
The fact that some discounters are currently luring customers with sparkling wine at competitive prices does not fit in with the higher appreciation of sparkling wine in this country. At Aldi Nord and Süd, for example, the 0.75-liter bottle of “Rotkäppchen dry” was available last week at a promotional price of 2.29 euros: 42 percent cheaper than usual be sold for less than three euros? The sparkling wine tax alone is around 1.02 euros per 0.75 liter bottle plus VAT.
“Our brand is worth more,” says Queisser of enticing retailers. On the contrary, he expects the prices for sparkling wine and wine to rise in 2022. The bottle is expected to be around 20 cents.
Every German drinks an average of four bottles of sparkling wine a year.
(Photo: dpa)
Because the grape harvest in Europe was very mixed this year. “The 2021 vintage is of excellent quality, but there is a lack of quantity,” states Queisser. According to the German Wine Institute, the harvest in Germany was only slightly below the long-term average. The European wine must harvest, on the other hand, at 171 million hectoliters, is likely to be 13 percent lower than in the previous year, estimates the EU Commission.
“In France there was enormous frost damage in the spring,” reports Henkell boss Brokemper. The grape harvest in Germany, Italy or Spain could not compensate for the missing quantities. “Certain origins and grape varieties are becoming scarce,” predicts Rotkäppchen managing director Queisser.
Shortage of Prosecco
Prosecco, for example, is affected. There is a strong shortage there because in 2019 Prosecco Rosé was approved for the first time as a controlled designation of origin “Denominazione di Origine Controllata” (DOC). More than 80 million bottles have been marketed worldwide. “The most successful new launch of all time for sparkling wine has resulted in the prices for Prosecco going up,” explains Brokemper.
Oetker subsidiary Henkell took over the Italian Prosecco manufacturer Mionetto in 2008. In 2018, the Wiesbaden-based company bought 50.67 percent of the shares in the Catalan cava manufacturer Freixenet. With Freixenet, Henkell rose to become the world’s largest producer of sparkling wine. The global market share is nine percent, according to market researcher IWSR.
In 2020, Henkell Freixenet’s sales fell by 7.4 percent to around 1.2 billion euros. The group generates two thirds abroad. Business in Spain, Italy and France collapsed in the meantime because tourism and gastronomy suffered severely in the lockdown. “In the group we will soon be back on the pre-Corona level”, Brokemper is very confident.
In addition to the pandemic, it is not just the capricious weather and scarce grape varieties that are causing problems for the sparkling wine cellars. Costs have exploded across the supply chain. “Wood for pallets and wine crates is scarce and expensive,” says Queisser. Due to the lack of truck drivers, Rotkäppchen has meanwhile shifted many transports to rail. The prices for the glass bottles, labels and cork have also increased significantly, according to Brokemper.
Toasting with sparkling wine or champagne should become a bit more of a tingling luxury in the New Year.
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