Thursday, April 28, 2022

Interest in German Riesling Increases Significantly in the Fine Wine Secondary Market (2021)

Pictures: Tasting with Markus Molitor at Weingut Markus Molitor in Haus Klosterberg, Mosel - Germany-North Tour 2017 by ombiasy WineTours

"Interest in top German wines has skyrocketed in recent years, and demand far exceeds supply. It seems that all serious wine lovers have their eyes on top German wines, especially in Europe and the US," says Alix Rodarie, head of international development at wine auction house iDealwine. Ten years ago, only two German wines were traded on the fine wine trading platform Liv-ex; by 2021, there were already 201.

Pictures: Christian Schiller and Dorothee Zilliken at Frankfurt/Wein in Frankfurt, Germany. See: Dorothee Zilliken, Weingut Forstmeister Geltz-Zilliken Presents her Noble Rieslings at Frankfurt/Wein in Frankfurt, Germany. Annette Schiller and Hanno Zilliken at Weingut Forstmeister Geltz-Zilliken. See: Germany-North Tour 2016 by ombiasy WineTours: Quintessential German Riesling and the Northernmost Pinot Noir

However, the growth drivers are a relatively small group of producers such as Markus Molitor, JJ Prüm, Zilliken, Dönnhoff and Willi Schaefer. At the top are the wineries Egon Müller and Klaus Peter Keller, which are hardly available on the free market any more, but only at auctions, says Alix Rodarie. "Due to the low supply, the hammer prices for cellars increased by 62 per cent in 2021."

Picture: Annette Schiller and Egon Müller in New York City. See: The Annual "Slaughterhouse" Riesling Feast in New York: Rieslingfeier 2017, USA

The regional distribution of top wines on the Liv-ex trading platform is interesting: Mosel accounts for almost 60 percent, followed by Rheinhessen - mainly because of Klaus Peter Keller. A surprisingly low 2.4 percent of the German wines traded on Liv-ex come from the Rheingau. Riesling accounts for almost all of the trade.

Pictures: Annette Schiller, Julia and Klaus Peter Keller at the 2015 Rieslingfeier in New York, see: A German Riesling Feast in New York City: Rieslingfeier 2015, USA

Despite the growing interest in dry wines and Grosses Gewächs, the most traded German wines are Spätlesen or Auslesen. Alix Rodarie from iDealwine reports that Trockenbeerenauslesen continue to break records. The most expensive dry white wine in 2021 was a bottle of Domaine d'Auvenay Puligny-Montrachet at €10,070. In 2018, a bottle of Trockenbeerenauslese from Egon Müller was auctioned for 12,160 euros.

At the same time, German wines are an extremely small market segment in the secondary market: white wines account for only 9.5 percent there, and Germany has a share of only 1.8 percent in this segment.

(Source: drinksbusiness, April 1, 2022) 

Wednesday, April 27, 2022

Export of Mosel Wines Rose Sharply in 2021

Picture: Cellar Visit, Vineyard Walk and Tasting at Weingut Maximin Grünhaus in Mertersdorf, Ruwer, with Owner Dr. Carl von Schubert – Germany-North Tour 2017 by ombiasy WineTours

Export of Mosel wines rose sharply in 2021. 

We visit the Mosel regularly, on the Germany - North Tour by ombiasy. Below, I am combining the press release regarding the export growth of Mosel wines with pictures of Mosel producers from recent ombiasy tours.

Press Release, Deutsches Weininstitut, March 3 2022

The export of wines with the protected designation of origin "Mosel" rose sharply in 2021. Exports of Mosel wine recorded a 36.6 percent increase in value last year, while the volume increased by 27.5 percent compared to 2020.

This emerges from the export statistics of the Association of German Wine Exporters (VDW) in Bonn, as announced by the Moselwein e.V. in Trier, Germany.

Pictures: In the Vineyard with Gernot Kollmann. See: Tasting and Vineyard Visit at Weingut Immich-Batterieberg in Enkirch, Mosel, with Gernot Kollmann - Germany-North Tour 2017 by ombiasy WineTours 

28 Millionen bottles in 100 markets

From January to December 2021, 214,000 hectoliters of wine with a total value of 90 million euros went from the Mosel cellars to 100 countries around the world. This corresponds to around 28 million bottles of 0.75 liters. The average price rose by almost 30 cents per liter to 4.22 euros from the cellar.

In the previous year, the average price was 3.93 euros per liter. The information relates to bottled, white quality wines of the protected designation of origin Mosel up to 13 percent alcohol by volume. Not included in the statistics are red or rosé wines as well as country wines or German wines that are produced in the region and exported.

"After a few difficult years, in which the export of Mosel wines fell due to low harvest quantities and political problems, our export companies have reached the level of 2014 again in 2021," says Ansgar Schmitz, Managing Director of Mosel e.V. Association. At that time, around 214,000 hectoliters of Mosel wine worth 83 million euros were exported.

Pictures: Wine Dinner at Weingut Richard Böcking in Traben-Trarbach, Middle Mosel, with Owner Denman Zirkle - Germany-North Tour 2019 by ombiasy WineTours: Quintessential Riesling

Lates challenges resolved

In recent years, the punitive tariffs on German wines introduced by former US President Trump have had a negative impact on exports. Last but not least, the suspension of these punitive tariffs led to an increase in exports to the USA of 26.9 percent in value and 21.5 percent in volume in 2021.

The USA is still by far the most important export market for Mosel wines. With 92,000 hectoliters, 43.1 percent of all Mosel wines exported in 2021 went to the USA. The US market accounted for 39.1 percent of the value of exports, with a total of 35 million euros. The average price was 3.83 euros per liter.

Pictures: Tasting with Markus Molitor at Weingut Markus Molitor in Haus Klosterberg, Mosel - Germany-North Tour 2017 by ombiasy WineTours

China after USA 2nd best on export-statistics

Other countries are becoming increasingly important for Mosel exports, while the United States' share is steadily shrinking. China has now become the second most important market for Mosel wines, although it is still far behind the USA. In 2021, the wine merchants from the Mosel delivered 12,000 hectoliters worth 7 million euros to China. This represented a volume increase of 62.9 percent compared to 2020, while the value increased by 55.4 percent. The average price for China was 5.90 euros per liter from the cellar. In 2021, China pushed Canada and Norway, where slight decreases in volume were recorded, to third and fourth place in the export statistics for Mosel wines.

Pictures: At Weingut Fritz Haag, with Oliver Haag. See: Germany-North Tour 2017 by ombiasy WineTours: Quintessential German Riesling and the Northernmost Pinot Noir

Comeback of Mosel wine in Great Britain

Mosel wine experienced an almost sensational comeback in Great Britain last year. Once a market for inexpensive entry-level wines, the British now seem to be buying significantly more higher-quality Rieslings which grapes grow on steep slopes. The value of exports from the Mosel to the United Kingdom went up by around 180 percent, to a total of 5 million euros. The volume, on the other hand, grew “only” by 28.5 percent to 800,000 liters. The average price per liter of wine exported to England was EUR 2.71 in 2020 and rose to EUR 5.91 in 2021. Great Britain thus climbed from 9th place (2020) to 5th place in the Mosel export statistics.

Pictures: At Weingut Clemens Busch with Rita and Clemens Busch. See:Vineyard Tour and Wine Tasting at Weingut Clemens Busch – Germany-North Tour by ombiasy WineTours (2014)

Upswing in Japan, Scandinavia and The Netherlands as well

Also in Japan (up around 45 percent in value and volume), Sweden (up 28.5 and 20.1 percent respectively), Finland (up 23 and 16.6 percent respectively) and Denmark (up 39.4 and 24 7%) as well as in The Netherlands (plus 14.6 and 10.3%), the figures for Mosel wines are pointing upwards. With their thirst for Riesling, the Scandinavian countries have been a steadily growing market for Mosel exporters for years. Exports to these four countries totaled 29,000 hectoliters in 2021. That's more than China, Great Britain and Japan combined.

Two other countries neighboring Germany were also drivers of the positive development. Importers in Poland bought 167.4 percent more Mosel wine than in 2020, the value increased by 146.6 percent. The increase in Belgium was even greater: 225.2 percent in value and 177.6 percent in volume. In the Baltic States, the successful course for wines from Mosel, Saar and Ruwer also continued, especially in Latvia with an increase of almost 52 percent in value and 42.7 percent in quantity.

Pictures: In the Vineyards. See: Cellar Visit, Vineyard Walk and Tasting at Weingut Maximin Grünhaus in Mertersdorf, Ruwer, with Owner Dr. Carl von Schubert – Germany-North Tour 2017 by ombiasy WineTours

South Korea and Australia spot Moselwein

Statistically speaking, the Swiss spend almost twice as much as the British on Mosel wines. For the Confederates, the price per liter from the cellar was 11.40 euros in 2021. The small neighboring country recorded an increase in value of 13.3 percent in 2021 and an increase in volume of 8.5 percent to 2,000 hectoliters, according to VDW statistics. South Koreans are also increasingly discovering Mosel wine: the Southeast Asian country also imported 200,000 liters from the Moselle, 60.6 percent more than in 2020. The value rose by 75.5 percent.

And even the Australians appreciate aromatic Riesling wines from steep slopes. After all, 100,000 liters went from the Mosel to "down under" in 2021, at an impressive average price of 8.89 euros per liter. This makes Australia number 20 in the export statistics for the Mosel region. Wine from Germany's oldest wine region is delivered to 80 other countries around the world, from Austria to Vietnam, from Spain to Peru. Exports to countries outside the European Union make up around 70 percent of Mosel wine exports, and even 75 percent in value.

Pictures: Vineyard Tour with Reinhard Löwenstein, Weingut Heymann-Löwenstein in Winningen, Mosel. See: Vineyard Tour, Cellar Tour and Tasting at Weingut Heymann-Löwenstein in Winningen, Mosel, with Reinhard Löwenstein - Germany-North Tour 2017 by ombiasy WineTours 

Ukraine: Mosel estates donate through wine sales

The war in Ukraine and the cost increases for energy, fuel, bottles, cardboard boxes and containers are currently also causing concern for export companies in the Mosel wine-growing region and are clouding expectations for 2022. Ukraine and Russia are not among the most important export markets for Mosel wine, but both countries (just like other Eastern European countries) recorded an high percentage increases in demand in recent years. In 2021, around 1,000 hectoliters of Moselle wines were delivered to Ukraine and Russia, which corresponds to a total of around 266,000 bottles (0.75 liter).

Several Mosel estates and wine companies are currently taking part in charity campaigns for the Ukraine. 

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