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O.I.V.1 IL MERCATO MONDIALE DEL VINO: SFIDE E OPPORTUNITA Fondazione Mach San Michele all Adige 9 gennaio 15 federico@castellucciconsulting.eu Area under vines Vitiviniculturalproduction potential: the vineyards in the world O.I.V.1

O.I.V.1 Surface area of vineyards worldwide Area under vines Europe Evolution share of global vineyard in % -13 6.5% 55% 1 ha 8 3 8 1 7 9 7 7 7 5 7 3 in 13 the total worldwide area under vines represents 7519 mha % Asia Source: OIV 19.% America 1% Africa Oceania 1% 5%.3%.% 3% 13 The total area under vines :the world s total vineyard surface area, is decreasing mainly due to the reduction of European vineyards. This reduction has been partially offset by the increase in the planted surface areas in the rest of the world: Europe sshare of the world vineyards has declined from about 6% of the total in to 55% in 13. the share of all other regions is increasing, in particular in Asia, which now accounts for % of the world s vineyards. Area under vines 1 1 1 8 6 Recent developments of the leading vineyards 1 ha Area under vine from to 13 % world total 13 Spain 15.7% 13.6% France 11.6% 1.5% Italy 11.6% 1.% China 3.8% 9.% Turkey 7.3% 6.7% USA 5.% 5.% Since area under vine has fallen considerably: Spain (-17% ), France (-13%), Italy (-17%) While vineyards and plantations are reducing in Turkey (-1%) and Iran (-3%), they are increasingin China (+17%) and India (+177%), while New Zealand (+179%) and Australia have remainedmore or less stablein the USA and in South Africa. O.I.V.1

O.I.V.1 Grape Europe Continental evolution as % of global production -13 5.9% Global grape production Mql World grapes production Asia America.3% %.9% 9.8% 1% 1 8 6 Africa 5.% 5.8% Oceania.1%.9% 6 8 1 1 13 In 13 the world production of grapes (751 Mql) increased by 8% compared to 1. While the area under vine decrease, grape production has been increasing since (+17%) : this partly due to an increase in yields. Wine production Trends in world wine production World wine production (excluding juice & musts) 35 3 5 71 15 1 The global wine production, excluding juice and musts, is likely to reach71 millions hectolitres in 1 a decrease of 6% compared to 13 O.I.V.1

O.I.V.1 Wine production 1 wine production in the 1 main producing countries Wine production Table 1: Wine production (excluding juice and musts) (1) 13 1 1/13 1/13 Variation in Variation Ranking 1 hl 1 11 1 Provisional Forecast volume in % France 381 5757 158 6151 17 1% 1 Italy 855 77 5616 59-85 -15% Spain 35353 33397 3113 565 37-865 -19% 3 United States () 89 191 17 35 5-1 -% Argentina 165 1573 1178 198 15 16 1% 5 Australia 11 1118 16 131 156 5 % 6 China (3) 13 13 1381 1178 1178 % 7 South Africa 937 975 1568 198 11 % 8 Chile 88 16 155 186 19-817 -% 9 Germany 696 913 91 89 975 1316 16% 1 Portugal 718 56 637 638 5886-35 -6% 11 Romania 387 58 3311 5113 93-1 -% 1 New Zealand 19 35 19 8 3 7 9% 13 Greece 95 75 3115 333 9-3 -13% 1 Brazil 59 36 967 71 81 1 % 15 Hungary 176 75 1776 666 73 68 3% 16 Austria 1737 81 15 39 5-1 -6% 17 Bulgaria 1 137 1 1755 19-56 -3% 18 Switzerland 13 11 1 8 9 6 7% 19 Croatia 133 19 193 19 87-375 -3% OIV World Total() 637 673 56 876 786-16736 -6% (1): Countries for which information has been provided with a wine production of more than 1 mhl (): OIV estimate (USDA basis) (3): Report for the year 13, 1 figures not yet available () Range used for 1 world production: 66. mhl to 75.5 mhl O.I.V.1

O.I.V.1 Trends in wine production 5 15 1 5 Countries with an increasing trend USA Argentina Australia China* 1 & trends in production South Africa Chile New Zealand Brazil - 5-9 1-1 Forecast 1 *Report for the year 13, 1 figures not yet available In 1, compared to the last 15 years trend: almost all countries confirm their increase in vine production Moving towards consolidation of consumption 8 7 6 5 3 1 World wine consumption Wine consumption forecast At this time of the year, no reliable information is available on the level of consumption in the different markets for 1. The data available show a consolidation of the global consumption, at around 3. 1 O.I.V.1

O.I.V.1 Major wine consumers 1 hl 35 3 Trends, -13 New consumershave entered the scene, due to increasing incomes and changes in eating habits 5 15 1 5 USA France Italy Germany China United Russian Argentina Spain Kingdom Federation Australia Wineconsumption seems to be decreasing in the traditional wine countries of southern Europe 11 Wine consumption Shift in wine consumption geography Oceania % Europa 69% America % Africa 3% Asia 6% 13 Oceania 3% Europa 61% Africa 3% America 3% Asia 1% The increased global in trade over the past years has resulted in a shift in the wine consumption patterns. The -13 period has been characterized by a transfer of the wine consumption : today about 39% of the wine is consumed outside European countries, compared to 31% in. 1 O.I.V.1

O.I.V.1 World wine Export /l. Bill 1 1 6 61 World wine exports in Euros and Litres 1 18 18 16 15 15 16 9 93 87 85 81 7 73 76 69 Bill 5 6 3 1 1 98.8.31.1..15.16.17..31.9.5.3.53.6 1 3 5 6 7 8 9 1 11 1 13 In 13the trade inwine decreased by.% in volume, representing 98 million of hl, even though the growing prices allowed an increase in total revenues of 1.5% up to 5.7 billion Euros. By type of product 1% By type of wine in volume terms Bulk &> l Sparkling Bottled Bulk &> l Sparkling Bottled 6 9% 8% 5 7% 63% 67% 65% 61% 6% 6% 6% 58% 58% 58% 57% 55% 56% 55% 6% 5% 3 % 3% 5% 5% 5% 6% 5% 5% 5% 6% 6% 6% 6% 6% 6% 7% % 1% % 3% 8% 3% 3% 35% 3% 35% 36% 36% 36% 37% 38% 37% 38% 1 3 5 6 7 8 9 1 11 1 13 1 In the -13 period, the composition of exports significantly changed : the share of bottled wines reduced by.5 points in value and 6 points in volume, while bulk wines increased. 1 O.I.V.1

O.I.V.1 Top 1 world exporters of wine Billion of Euro Trends exports in value: 8 to 13 9 8 7 6 5 3 1 6.9 7.8 3.7 5...5 1. France Italy Spain Australia Chile Germany United States 1.3 1..9 1. 1..8.7.8..6.7.7..5.6 New Zealand Portugal Argentina South Africa Since the beginning of the Century, all the top 1 exporters increased their value. France remains clearly the leader. After the 9 world crisis in wine consumption, Italy and to a lesser extent Spain, performed particularly well in thelast years ; Chile also increased its value. 15 Top 1 world exporters of wine Trends exports in volume: 8 to 13 5 15 13.8 18.1 1.6.3 16.9 17.7 1 5 7. 7.1 5.9 8.8 3.7..6.1 France Italy Spain Australia Chile Germany United States 1. 3. 1.8.3. 3.1 3. 5.6 New Portugal Argentina South Zealand Africa In volume, Italy and Spain are the leaders, although suffering from a lowcrop in 1 in the Northern Hemisphere. In 13, Chile overpassedaustralia, and South Africa took advantage of lower inventories in the North. 16 O.I.V.1

O.I.V.1 Top world Exporters 1 hl 13 5 15 1 5 Among the top wine exporters, the first 5 account for more than 7% of total exports in value and volume 9 8 7 6 5 3 1 Million of Euros 13 Top 6 world Importers of wine Billion Euro Trends imports in value: 8 to 13 5 3.9 3.6 3.7 3. 3.6 3. 1.5 1. 1. 1.1.9 1 1.3 USA UK Germany Canada Japan China 6 countries import for more than 1 billion eurosof wine each : USA overpasseduk as top world importer, Germany and Canada grows slowly, and China reached Japan s level although declining in 13. O.I.V.1

O.I.V.1 Top 6 world Importers of wine Trends imports in volume: 8 to 13 18 16 1 1 1 8 6 15. 1.1 13.1 1.7 11.7 8.3 5.8 5.9 5.8.9 1.6 Germany UK USA France Russia China 3.9 In terms of volume, France and Russia are among the top 6 Importers, while Germany, UK and the USA import above 1 million Hl of wine. 19 Top world Importers Top world wine Importers differ depending on volume or value ranking...an indication of who buys more expensive wine 16 1 1 1 8 6 1 hl 13 Germany UK USA France Russia China 5 35 3 5 15 1 5 Million of Euros 13 USA UK Germany China Canada Russia Among the top world markets for wine, the first five in value account for more than half of total imports in Euros: USA, UK, Germany, Canada and China reached a total of about 13 billion Euros. O.I.V.1

O.I.V.1 Sparkling Production has increased significantly: + %in 1 years 1,7 17,6 About 18 of sparklingwinewas producedin 13-accountingfor 7% of the world wineproduction 1 Sparkling 15, Sparkling wine consumption by country 11,8 5 3 1 Germany France Russia United States Italy United Kingdom Other countries The German and French markets remain the largest, with about 3 and consumed in 13 A growing interest in these wines outside the EU, particularly in the United States, Australia, Russia and Eastern European countries, whose consumption has significantly increased over the past 1 years. O.I.V.1

O.I.V.1 Sparkling The sparkling wine trade has increased steadily over the past 1years 1 8 6 Millions of hectolitres Billions of euros 1 3 5 6 7 8 9 1 11 1 13 Billions of euros 6 5 3 1 Since, world exports of sparkling wines have more than doubled, with an average growth of 9% per year, from 3.11 to 8.7 in 13 and reaching the.3 billion euros in 13 3