Ahead of the big industry meeting in Düsseldorf, the mood in the wine industry is subdued. Wine consumption is falling across Europe and supply is outpacing demand. Since the beginning of 2023, the European Union has already approved more than 105 million euros for the so-called “crisis distillations”, i.e. to convert wine that cannot be sold into technical alcohol – this benefited, in particular, French winegrowers, the Portuguese and Italians. In Germany, winegrowers from Württemberg have registered more than 8 million liters of red wine for distillation at the end of 2023 at a gross price of 65 cents per liter.
In addition to reducing consumption, many companies are also grappling with sometimes soaring costs, such as glass. In Bordeaux, the French government already pays huge insurance premiums when winegrowers close their vineyards. Although this is not yet the case in Germany, the Rheinhessen Winegrowers' Association – in Germany's largest wine region – has proposed that plots that do get cleared should be left fallow for six years – they still have to be replanted after three years.
From Sunday to Tuesday, industry representatives will meet at the Pro Wein trade fair in Düsseldorf: with 5,400 exhibitors and 50,000 expected visitors, it will be one of the largest industry meetings of its kind ever. Private individuals do not have access. Figures published in advance by the German Wine Institute (DWI) show how difficult the situation is for German winegrowers: According to the report, wine sales in Germany remained stable in monetary terms in 2023, but only thanks to rising prices. Physical sales fell 4.5 percent, while sales of German wines fell by as much as 9 percent. Only sales of organic wines remain stable, but their market share is small and amounts to 4% of total sales.
German wines are more expensive on the market – on average they cost 4.51 euros per liter, foreign wines – 3.76 euros – and this is an inflation problem. Due to the loss of purchasing power, customers are forced to pay more attention to price, said DWI managing director Monica Roile. Typically, price increases would not offset massive increases in operating costs.