polish wine market and it’s -...
TRANSCRIPT
POLISH WINE MARKET AND IT’S
PERSPECTIVES
DECEMBER, 5, 2019
SZYMON MILONAS, WINE REPUBLIC
Wine importer, Wine republic company
Board member of Polish Sommelier
Association, responsible marketing and
partnerships
WSET courses provider, wine school owner
Szymon Milonas
Consumption perspective – alcohol, wine
Legal perspective
Distribution Chanels
How to deal with importers
Content - polish wine market
Alcohol sales 38,5 mld PLN (~8,953 mld
euro), premium craft beers 2018-17 +41%
The wine market is dynamically growing
(average 9% per year). Poles see wine as a
product of high quality and prestige
Figures
9,37
9,45
9,55
9,25
9,3
9,35
9,4
9,45
9,5
9,55
9,6
2016 2017 2018
100% ALCOHOL CONSUMED
PER CAPITA
Poland revenue in the Wine segment amounts to US$1,441m in 2019. The market is expected to grow annually by 8.9% (CAGR 2019-2023).
In relation to total population figures, per person revenues of US$38.03 are generated in 2019.
The average per capita consumption stands at 4.5 L
Revenue in the Fortified Wine segment amounts to US$65m in 2019. The market is expected to grow annually by -11.200578% (CAGR 2019-2023).
In relation to total population figures, per person revenues of US$1.71 are generated in 2019.
The average per capita consumption stands at 0.2 L in 2019.
Fortifed wines expected decrease
Statista.com
S
Sale of alcoholic beverages in
Poland - value
47%
30,70%
8,60%
5,40%
4,30% 4%
Beer Vodka Wine Liquors Whisky Other
Import doubled from 2010 to 2018.
Volume 131,5 mln litres
Value - 1 mld PLN in 2018 (232 – 300 mln euro),
General Sales 2,16 mld PLN.
Wine consumption
Italia 25%
Spain 17%
Germany* 16%
USA 15%
France 12%
Chile 8%
Moldova 7%
VOLUME SHARES
Import directions
20%
15%
12,30%
9,70%
9,60%
8,50%
6,40%
4,80%
4,70%
2,70% 6,30%
Italy Bulgaria Spain Germany USA France Portugal Chile Moldova Hungary Other
What is your favorite alcoholic
beverage?
26,90%
19,40%
11,00%
10,20%
7,80%
4,70%
4,30%
15,70%
Beer Wine Liquor Whisk(e)y Vodka Cider Champagne Other
Retail sales
TOTAL POLAND MAT NOV'17 MAT NOV'18 zm. dyn
sales volume (l trs ) 96 973 99 953 2 980 3,1%
sales value 1 998 465 2 145 779 147 313 7,4%
av prix/ btl 0,75 15,5 zł 16,1 zł 0,6 zł 4,2%
sales volume (ltrs)
distr channels MAT NOV'17 MAT NOV'18 zm. dyn sh MAT 18
MTT 29 420 29 408 12 - 0,0% 29%
MTD 39 099 39 693 594 1,5% 40%
TT 28 453 30 852 2 399 8,4% 31%
TOTAL 96 972 99 953 2 981 3,1% 100%
sales volume (ltrs)
colours MAT NOV'18 zm. dyn sh MAT 18
RED 51 497 1 372 - -2,6% 52%
ROSE 15 990 1 616 11,2% 16%
WHITE 32 043 2 719 9,3% 32%
OTHER 422 17 4,3% 0%
TOTAL 99 953 2 980 3,1% 100%
sales volume (ltrs)
taste MAT NOV'18 zm. dyn sh MAT 18
SWEET 12 312 2 366 23,8% 12%
SEMI SWEET 34 842 41 - -0,1% 35%
DRY 29 475 342 1,2% 29%
SEMI DRY 19 832 38 - -0,2% 20%
OTHER 3 492 350 11,1% 3%
TOTAL 99 953 2 980 3,1% 100%
Carlo Rossi/ Mogen
David
Produkty bez oznaczeń
Produkty bez oznaczeń
S: ACN
11
Trends in wine segmantation
Shares and trends – price categories
sales volume (ltrs)
prix segments MAT NOV'18 zm. dyn sh MAT 18 RSP PLN
ECONOMY 32 174 838 - -2,5% 32% do 12
MAINSTREAM 49 028 771 1,6% 49% +12 do 20
PREMIUM 14 876 2 758 22,8% 15% +20 do 25
TOP PREMIUM 3 817 284 8,0% 4% +25 do 30
ULTRA PREMIUM 57 5 8,7% 0% pow 30
TOTAL 99 953 2 980 3,1% 100%
S: ACN
12
BANDEROLS
Number of licences
A (beer),
B (4,5-18% - no tawny port),
C - spirits licence
No e-commerce allowed
No ads (propaganda) allowed
Legal perspective
Obstacles
Legal restrictions. Polish ‚sober law’ was created in
1982. In last year it was amended. It practically
bans on-line alcohol sale, restricts advertisment of
alcoholic beverages (even the apperance of
storefronts is under control). Another obstacle is the
duty of banderolas on the top of every alcohol
bottle (exception: beer). It increases the cost of
import.
Excise for wine is (fortunately) generally low – 173 pln
per 100 l (about 40 Euro)
Off-Trade Modern Trade Discounts – Biedronka (Jeronimo Martins), Lidl, Netto) – some with own import
Modern Trade - Carrefour, Auchan, Polish Chains (Dino, Stokrotka, Zabka, Lewiatan, Eurocash) – some with own import
Traditional Trade –
On-Trade – restaurants - Warsaw, Kraków, Poznań, TriCity, Wrocław.
Polish Sommelier Association.
Education importance.
Distribution chanels
Sales channels
Wine market in Poland belongs to big players:
hiper- and supermarkets (46% and 43% of buying
consumers) and discounts
(44%). 20% of consumers
buy in wine stores.
32
18
15
34
4
0
5
10
15
20
25
30
35
40
Discounts Super Hiper Others Restaurants
SALES VOLUME
On-trade channel is weak (5% of sales volume). Poles prefer to
drink wine at home. Dinning outside is not popular. The big cities are only exception.
Due to forecast it will change – in 2023 - 19% wine should be
consumed out of home (in Portugal 87%)
Emails, emails, emails
English, English, English
www, www, www
What is important for importers
(like us)
Key questions
Key factors in buying alcohol are premiumisation, locality and
value for money
Main import directions are EU Countries, USA and Moldova
Main sale channel is off trade, especially markets and discounts
Main obstacles in development of this part of market are
bureaucratic regulations, fragmentation (numerous and weak
importers), consumers lack of wine knowlege
Obstacles
Fragmentation of import. In Poland there is
about 800-1000 wine importers. Majority of
them are small and weak, They have no
economic power to fight on the market
Consumers lack of knowlege. Poles know
very little about wine. It limits their choices to
known and cheaper product – the price is
main gauge at buying
WORSKHOP
„HOW TO ENTER POLISH MARKET”
If you are ready
Name your advantage – price, label,
price/value ratio, unique story
To stick banderols
Negotiate a price
Sent your wines 3200 km away
Be on the emerging market
You need to choose sales channel
Deep discounters - ?
Modern trade or traditional trade (importers
like AN.KA, Eurocash, TiM) – value for money
Specialised Stores and Horeca (importers like
Ambra, Wineonline, Wine rePublic) -
premiumisation
Sometimes it’s easier to start than to
continue…
Price „updates”
Vintages variations
On time delivery
Payment terms
Visits, trips for importers and customers
Start and Continue
Contact stages
https://www.act365.com/sales-funnel-template/
Sales funnel
https://www.mytechelite.com.au/what-is-a-sales-funnel-clickfunnels-ultimate-guide/
Please work in small groups on stages of
contact-starting cooperation written below.
What are the ways to succeed on them?
Exercise „from contact to relation”
Email contact
-winery presentation
-price list/price point
-next steps
Telephone call
Wine Broker
Sending Samples
Fairs
Trade shows
Exhibition
Dedicated tasting e.g. wines
from region organised with
trade agency
somms/importers