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Archive 2005

Austrian Wine: 2004 Another Successful Year

(Vienna, January 05, AWMB) - Austrian wine has defended its place nationally and internationally. “Strengthened by its high market share at home, we have been able to increase our exports massively, and that despite an indifferent economy and the strength of the Euro. Especially Austria’s red wines were very much appreciated abroad,” sums up Michael Thurner (general manager of the Austrian Wine Marketing Board, AWBM) during the annual press conference of at the Sacher Hotel in Vienna.

Strong at home
Austrian wine is not only appreciated abroad, but also at home. Official market data from the AWMB show for instance that Austrian wine has a dominating market share of 84% in restaurants. Private consumption shows a similar structure: Mr. and Mrs. Austria chose Austrian wines three out of four times (74%). While only 29% of wines are being bought directly from the producer, food retail markets could further increase their market share to 59%.

Austrian sparkling wine to eclipse Prosecco
On 1 April 2005, Austria’s sparkling wine tax will be abolished. Since its inception it has put domestic sparkling wines at a clear disadvantage against foreign competition. Now, there will be a level playing field once again, and Austrian sparkling wines will be able to compete on equal terms. This also contributes to the continuation of base wine production in many Austrian wine growing areas and to the protection of the livelihood of numerous Austrian wine producers. The domestic wine industry expects that the abolition of the tax will result in a shift in the home market away from sparkling wines like Prosecco, and towards Austrian products.

Record value created in the export market – Austrian red wine booming
The positive wine export development of the last years continues. According to AWMB estimates, some 70 million liter of Austrian wines were exported last year, corresponding to 80 million Euros of value. “Our wine producers have earned more in the export than ever before,” comments Michael Thurner. “The result of the continuous quest for quality is an increase in value, and we are on the right way.” Thurner is especially delighted that 60% more bottled wines were exported, while bulk sales continued to fall. “Apart from the huge increase in value for the bottled wines it must be emphasized that our red wines are increasingly popular internationally. Especially Austrian varietals such as Zweigelt, Blaufränkisch and St. Laurent are very sought after,” he remarks proudly. Positive export numbers are coming in from all main export markets. Apart from better average prices in Germany, more wine than ever before was shipped to the US, despite the strong Euro. Switzerland, Norway, Great Britain, the Netherlands and now also Japan are also home to more and higher-quality Austrian wines.

World market under pressure – USP necessary
Despite its successes, Austrian wine producers are not tempted to rest on their laurels. According to the International Wine Authority (OIV) in Paris, world-wide wine production exceeds consumption by some 10 to 20%. It is also expected that more and more better wines will come into the market, creating an even higher excess capacity in the high-quality segment. Thurner interprets this as a challenge to remember Austria’s strengths and to use them for goal-oriented marketing. “Wine economies with small structures like Austria will always have more difficulty asserting themselves on the world market. Only simple messages on the labels and clear, regionally-defined taste profiles will make our wines competitive. This is our unique selling point!” says the marketing expert. A successful example of this approach is Austria’s first wine of origin with a clear profile, the Weinviertel DAC. Asked when the next DAC would be declared, the marketing director keeps his cards close to his chest: “This is a decision for the wine growing areas themselves. Nothing will be dictated from above. Good decisions simply need a lot of time.”
Thurner sees another unique selling point for Austria’s wines in professional training. By creating wine training at university level with a bachelor’s degree in viticulture, oenology and wine economy at the University of Soil Culture in Vienna, a basis has been created for a positive development in this area. At the Fachhochschule in Eisenstadt in the Burgenland, another course, international wine management and wine marketing, has also been started.

Images, photos and other information about wine export and Austrian wines in general can be found and downloaded at: http://www.weinausoesterreich.at/aktuell/index.html

Press Release/January 05
Ö WM/Susanne Staggl
phone.: +43/1/503 92 67
fax: +43/1/503 92 68
info@winesfromaustria.co