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Consumer Preference For German Wines on the Rise in U.S.

NEW YORK - May 15, 2002

New Survey Shows Riesling a Hot Favorite
-Second Only to Chardonnay in White Wine Consumption

The popularity of German wines among U.S. consumers is making major strides, significantly noticeable both in restaurant ordering and in retail wine purchases. In the selection of white wines, Riesling takes second place only to Chardonnay, and features more prominently than Pinot Grigio among wines familiar to the American wine drinker. These observations resulted from a recent survey sponsored by the Deutsches Weininstitut (DWI) and the Centre Français du Commerce Extérieur (CFCE), in conjunction with Onivins, and conducted by DMD Research.

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Exploring Opinions, Perceptions, Behavior
Designed in quantitative and qualitative phases, the survey targeted American wine-drinking consumers to explore:
· opinions, perceptions and attitudes toward wine generally;
· frequency and consumption patterns regarding wine type and origin;
· criteria for choice and purchase in retail and restaurant venues.
To activate the survey, a questionnaire was e-mailed to potential participants in two rounds, the first in early December, 2001, and the second in mid-January, 2002. Out of 2,065 responses, 1,114 were found to meet the minimum criterion of drinking wine at least once a month, and became the source of data for the conclusions reached. The majority of respondents surveyed drink wine at least once a week (54 percent), and only a small segment of the group responded that they drink wine only once a month (16 percent).

While domestic wines account for the greater part of consumption in the U.S., the pattern of selection regarding imports indicates a marked preference for French, Italian and German wines. German white wines are now consistently associated with high quality and with good white wines across the board indicating an appreciation for German dry and semi-dry, as well as sweet, white wines.

German Wines Gain Strength in Restaurant Dining
Almost half the wine drinkers surveyed order wine at a restaurant all the time or often. On the restaurant scene, particularly in the metropolitan northeast, German wines have definitely come into their own. Among imported white wines most recently ordered by respondents, German wine purchases outweigh Italian and are exceeded only by French.

Recognition of Quality Across the Spectrum
For purposes of distinction and comparison, survey participants were categorized in three groups:
· The "Wine Enthusiasts" (36 percent) -- generally the most knowledgeable of the wine drinkers surveyed; the most likely to experiment with wine selection; and whose consumption of wine is the most frequent

· The "Tried and Trusted" (28 percent) -- more cautious about trying imports

· The "Occasion-Oriented" (31 percent) -- whose wine consumption is generally linked to special occasions

While all three groups associate German wines with high quality, the knowledgeable Wine Enthusiasts note that the image of German sweet white wines is superior to that of domestic sweet whites; furthermore, they do not view "sweet" as a negative in wine categorization. Of the three, this group drinks German wines the most frequently.

The Tried and Trusted wine drinkers rank German wines as having overall high quality, and consider Germany a reasonable source for all types of white wine, not just sweet whites. This group's consumption of sweet wines is greater than that of either of the others.

The Occasion-Oriented group, too, attributes high quality to all types of German wine. None of the groups has indicated price as a barrier.

Key Findings
Comments from survey participants have indicated three key factors in U.S. consumer perception of-and attitude toward-German wines:
· High Quality - all segments recognize quality in German wines, and the most knowledgeable wine drinkers are the greatest consumers of German wines.

· Sweet is NOT a Negative - sweet whites are regarded as just another variety of white wine, and are rated as highly as dry and semi-dry whites.

· Vague Imagery - although there is perception of good German white wines of all types, this research indicates that German wines are largely unknown and less available than imports from other countries.

Growing the U.S. Market Share for Germany
Enhanced popularity with consumers suggests that German wines are now poised to command a greater share of the U.S. market in imported wines. Marketing opportunities identified by the survey include:
· Building awareness of German wines among American wine drinkers by increased investment in targeted advertising campaigns and public relations programs.

· Increasing availability at point of purchase, both on restaurant wine lists and at retail outlets.

"Some years ago we adopted a strategy to specifically promote Riesling wines, which seems to have been effective in increasing recognition and consumption of the variety," said Carol Sullivan, executive director of the German Wine Information Bureau.

"We were gratified that this survey showed that 72 percent of consumers are familiar with Riesling and that it was the second-most recently consumed white wine variety. Now, our greatest challenge is increasing our share of all white wine consumption occasions by further enhancing 'top of mind' awareness."

New York Leads the Way with Summer Festival
With a high concentration of wine drinkers among diners, New York City's restaurant scene is paying serious attention to the rising popularity of Riesling. Susan Wilber, wine director for Ark Restaurants Corporation and general manager of Lutèce, describes herself as a "dedicated fan" of Riesling and feels its growing prominence on wine lists is proof that "the public is starting to get hip."

Through her work with Eberhard Müller at Lutèce, Wilber met many of Germany's top wine producers. A trip in August 2000 led her to private tastings in the homes of leading producers and became the catalyst for Wilber's campaign to introduce more Riesling wines to her New York customers. The concept for a summer wine festival was born, and came to fruition the following year with Ark Restaurants' launch of "A Riesling for Living" in May 2001.

"It was a natural step," said Wilber-"I had the venues and the passion to promote the wines." The festival's success last year generated solid support from venue managers as well as customers, and laid the foundation for an annual event. Scheduled to run this year at five of Ark's Manhattan restaurants from May 4 through July 31, "A Riesling for Living" is again spearheaded by Susan Wilber, and enthusiasm is running high. "Our restaurant Jack Rose has reported that Riesling is its most requested wine type," she commented, "and the Metropolitan Café's customers have been asking about this year's festival for some time now. It's a great opportunity to try some new wines. I think we're building serious momentum here." (The 2001 Riesling for Living Events Schedule follows.)

German Wine Master Class at Gramercy Tavern
Also hip to the public's penchant for Riesling, Gramercy Tavern last year chose German wines for the focus of an 11-session staff-training program, held monthly from January through November. Called the "German Wine Master Class," this educational program was taught by Wine Director Paul Grieco, who designed the format to offer 30 minutes of lecture/discussion time and 30 minutes for tasting six wines per class. Grieco describes this highly successful course as offering "a view of the historical, geographical, political and vinous background of Germany … and providing credence to the statement that Riesling is the greatest white grape on the planet."

With 16 years in the restaurant business, Paul Grieco serves as beverage director and service director for Gramercy Tavern. Over the past decade he has held key positions with major New York venues that include Remi, Bouley, Gotham Bar and Grill, Gabriel's and Judson Grill. Honoring his maxim that "all new knowledge is power," Grieco puts serious focus on educating his staff, and selects a different wine-producing country each year for his master-class sessions.

A Perfect Dance Partner
"We have created a bunch of Riesling fanatics at Gramercy Tavern," Grieco remarked, "and Riesling-based wines (or Scheurebe, or Huxelrebe, or Rieslander, or Spätburgunder) make a perfect match with the food of Chef Tom Colicchio."

Paul Grieco's overview of German wines makes a compelling statement. "The inherent balance of the wines themselves is the most thrilling thing," he observed. "By itself, a single glass is not enough-the wine urges you to continue drinking-and with food, it is a perfect dance partner."

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