On the Track to Success: German Riesling Exports

Imports to USA Top Million Dollar Mark
Riesling Trend Continues
More than 60% of World’s Riesling is Planted in Germany

29 July 2006

German wine exports remain on the up and up. The value of exports registered in the 12-month period prior to April 2006 increased 11 percent from the year before, with an average value of €183 per hectoliter. Export volume rose by four percent. These figures include wines of foreign origin that were re-exported by German commercial wineries.

Steffen Schindler, director of foreign marketing at the German Wine Institute (DWI), Mainz, sees this development as a confirmation of the marketing strategy pursued by German wine exporters, particularly those who have bet on Riesling. “The reputation of German wines has increased enormously in the past few years. Leading wine writers around the world are raving about our top Riesling wines, and the wine lists of many fine restaurants from New York to Sydney now feature German Rieslings. In addition, more than 60 percent of the worldwide area planted with Riesling is in Germany. As such, German wine-growers are particularly able to profit from the Riesling renaissance.”

Schindler sees yet another reason for the success of exports – namely the pronounced fruity character of German wines. “Our grapes and wines are simply more aromatic, thanks to the longer ripening period brought about by a cool climate.” Coupled with modern, light cuisine – often with an Asian touch – Riesling has made quite a name for itself all over the world. Additionally, the new century has started with a whole series of very good vintages.

Great Britain Remains Most Important Export Partner – USA Catching Up
With an export value of 128 million Euro (-0.5%), Great Britian remains the most important export market for German wines, whereby focus has slowly moved toward the mid-price sector. Increases in higher-priced wines have compensated for losses in the budget sector, i.e. simple wines for under three pounds sterling.

Developments in the USA look quite different. For several years, the American wine market has grown tremendously. In terms of overall volume, it is now the third largest in the world, after France and Italy. Particularly encouraging, sales of German wines in the USA are growing even faster than the market as a whole. Within the period mentioned above, imports of German wines, almost exclusively Reislings, topped the million dollar mark for the first time ever.

Riesling is in high demand demand in The Netherlands, but so, too, are other German varietals. These include Weissburgunder (Pinot Blanc), Grauburgunder (Pinot Gris), Silvaner or Dornfelder – particularly those in the “Classic” segment. Overall, the wines exported in this important market have become increasingly modern over the past few years. The prices and qualities of imports have improved correspondingly. Here, as in Great Britain, this positive development has by no means reached its peak.

The export outlook for German wines in Japan has also perceptibly brightened. After seven straight years of decline, export figures are back in the black with an increase of 9.6 percent. Medium-sized markets, such as Sweden, Norway, Belgium, Canada or Russia, also reported gains. Steffen Schindler is confident that the outstanding 2005 vintage will support this trend.

The influence of the recent World Cup soccer tournament on the sale of German wines abroad remains to be evaluated. The world’s largest sporting event of the year drew the attention of foreign media and consumers to the wines of Germany, and helped improve Germany’s overall image.

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