EU FARM MINISTER PLEADS FOR REFORM
European wine-producers are still having a hard time agreeing on reform. The EU’s Farm Commissioner Mariann Fischer Boel stresses the need for European winemakers to simplify labels and produce more desirable wines if they ever want to recover world market share, but many in the industry are having trouble making changes.
The main problems for EU wineries seems to be their determination to stick with tradition, despite losing out to newer wine countries, like Australia and South Africa, who have implemented newer technology, labeling practices and more palatable blends for today’s consumers. Fischer Boel believes the complicated labels from France, Italy and Germany are confusing for consumers, leading them to purchase more attainable looking wine bottles from Australia and the U.S.
"The consumer decides what is taken down the shelves in the supermarkets. The consumer wants simple, clear labeling," Fischer Boel said after meeting with farm ministers from the 25 EU member nations to discuss reforming Europe's wine sector.
She pointed out that new world wines use varietals in the labeling, such as Chardonnay and Merlot. "We need to head in the same direction," she said.
However, there is a lot of opposition in Europe to that new way of thinking. Because of dwindling sales and recent gluts, EU nations agree there is a need to reform, but still can’t agree on what exactly should be done. Many winemakers believe they should stick to the traditional labeling requirements that have been around for centuries, even though those practices might be hurting them now.
The hardest hit sector for European wines is the mid-price range where EU vintners are being passed up for new world rivals and their straightforward labels, which is why Fischer Boel believes reform is the key to success.
“Those in the sector that want to use the same tools as our successful competitors from outside the EU should be allowed to do so,” she said to EU officials.
But while European countries try to increase exports, U.S. wine-producers worry about competition with imports. If old world wine producers start looking more like U.S. wines, it could pose even more of an issue for domestics. ACNielsen data shows that imports already account for 21% of case volume and 26% of dollar sales, and will likely continue growing if future trends follow current patterns.
The most popular category for imported wine sales is the $7-$11 per bottle range where imports have the largest stake at 33%. California wines, on the other hand, have the biggest hold on the premium market ($20 and up). But what’s to keep consumers from trading up to a more expensive version of their favorite $7-$11 import?
The main problems for EU wineries seems to be their determination to stick with tradition, despite losing out to newer wine countries, like Australia and South Africa, who have implemented newer technology, labeling practices and more palatable blends for today’s consumers. Fischer Boel believes the complicated labels from France, Italy and Germany are confusing for consumers, leading them to purchase more attainable looking wine bottles from Australia and the U.S.
"The consumer decides what is taken down the shelves in the supermarkets. The consumer wants simple, clear labeling," Fischer Boel said after meeting with farm ministers from the 25 EU member nations to discuss reforming Europe's wine sector.
She pointed out that new world wines use varietals in the labeling, such as Chardonnay and Merlot. "We need to head in the same direction," she said.
However, there is a lot of opposition in Europe to that new way of thinking. Because of dwindling sales and recent gluts, EU nations agree there is a need to reform, but still can’t agree on what exactly should be done. Many winemakers believe they should stick to the traditional labeling requirements that have been around for centuries, even though those practices might be hurting them now.
The hardest hit sector for European wines is the mid-price range where EU vintners are being passed up for new world rivals and their straightforward labels, which is why Fischer Boel believes reform is the key to success.
“Those in the sector that want to use the same tools as our successful competitors from outside the EU should be allowed to do so,” she said to EU officials.
But while European countries try to increase exports, U.S. wine-producers worry about competition with imports. If old world wine producers start looking more like U.S. wines, it could pose even more of an issue for domestics. ACNielsen data shows that imports already account for 21% of case volume and 26% of dollar sales, and will likely continue growing if future trends follow current patterns.
The most popular category for imported wine sales is the $7-$11 per bottle range where imports have the largest stake at 33%. California wines, on the other hand, have the biggest hold on the premium market ($20 and up). But what’s to keep consumers from trading up to a more expensive version of their favorite $7-$11 import?
posted at 1:12 PM
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