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REPORT ON THE SITUATION OF VDP PREDICTION WINESTERS 2012

REPORT ON THE SITUATION OF VDP PREDICTION WINESTERS 2012

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YEARLY YEAR 2011 MEETS EXPECTATIONS AND PROVIDES WINEMAKERS WITH A POSITIVE BALANCE SHEET IN 2012

Mainz: The VDP wineries look back on a successful 2012 business year: the wines of the 2011 vintage produced excellent qualities and the harvest yield last year also met the expectations of the 202 Prädikat wineries. The sales of the VDP wineries in 2012 could even be increased by about 2 million bottles (0.75 l) compared to the previous year to about 34 million. Last year, a top vintage with moderate acidity, high minerality and density matured in the cellars of the Prädikat wine estates. "The Prädikatsweingüter are very well positioned and were able to successfully stabilise their presence on the national and international wine market despite the small 2010 vintage. The order books are full, thanks to excellent wines from the 2011 and 2012 vintages. The trend of wine lovers all over the world towards top wines, produced in harmony with nature and with passion, will continue in the coming years, summarizes VDP president Steffen Christmann the positive development of the wines of the VDP estates

For the 2013 business year, the VDP vintners expect a positive balance thanks to the stable harvest volume and a high-quality 2012 vintage.

Regular yield - GOOD SALES

N After the small 2010 vintage in terms of quantity, the vintners were able to breathe a sigh of relief in autumn 2011.

On average, they yielded 53 hl/ha and thus achieved 10 hl/ha more than in the volume-small 2010 vintage. For the 2012 marketing year, the higher harvest yield meant that the great demand for wines from the VDP estates could be better met than the year before. Over 2012, sales were around 34 million bottles, bringing in a total sales volume of around 290 million euros, up 7.4% on the previous year and returning to the sales level of the years before.

The bottle price remained on average at the same level as in recent years. For the VDP.GUTSWEIN segment, an average bottle price of about 8.20 euros was achieved. The middle segment around the VDP.ORTSWEIN was at approx. 12.50 Euro and increased by approx. 5% compared to the previous year. This slight increase reflects the qualitative appreciation of these wines. In the premium segment, prices for VDP.GROSS GEWÄCHSEN remained constant at an average price of about 28.00 euros.

The share of sites in total sales corresponds to the classification pyramid as introduced since the Neustadt 2012 decision. The rock-solid foundation of the Prädikat wine estates is formed by VDP.GUTSWEINE with approx. 45% and VDP.ORTSWEINE with approx. 35%. The market share of 20% of the quality levels VDP.ERSTE LAGE and VDP.GROSSE LAGE confirms a stable consumer preference for premium wines in the upper price segment.

WINE MARKETING INLAND

As in the years before, most bottles of the Prädikatsweingüter are consumed in the home country. The lover of German wines continues to appreciate the comprehensive quality promise of the VDP wineries. For this, often no way is too far for the customers, because to a large extent, the bottles are bought directly from the producer. Through this traditional sales market, long-lasting ties are created and purchases are stylized into an experience. In second place among the sales channels is the specialist trade, which offers extensive advice. Proximity, perfect service and a professional approach are desired by consumers as well as gastronomy customers. Special wine experiences are also appreciated away from home in the restaurant, which sommeliers or qualified restaurant staff can arrange. The upscale restaurant trend towards regional products is being pushed in the wine list with fine and authentic wines as released by VDP wineries.

WINE MARKETING ABROAD

Wine exports by VDP wineries continued to enjoy great popularity in the last financial year with a 20% market share. As in previous years, business with countries such as Scandinavia, the USA, Belgium, the Netherlands, Luxembourg, Switzerland and Japan remained consistently stable. The relationship with these traditional import countries is characterised by high-quality VDP wines in the premium segment. Wines of the VDP.GROSSER LAGE classification and especially their dry wines, the VDP.GROSSEN GEWÄCHSE, enjoy great popularity abroad. The demand is currently greater than the supply. Export hits in the semi-dry as well as fruity and noble sweet taste segment are wines from VDP estates in the Mosel growing region, where often up to 80% of a winery's harvest finds its way abroad. But not only the classic import countries are developing positively. Many VDP wineries are focusing on nations like China, Canada and Russia. In general, the interest of Asian countries in German top wines is increasing with growing economic power. Upon request, 70% of VDP wineries are planning sales promotion activities in the respective countries in the near future. Abroad, VDP vintners find an adequate partner in the specialized trade, which knows how to market the terroir wines as well as the VDP classification philosophy with a lot of expertise.

OUTLOOK 2013

The VDP wineries are looking forward to the 2013 business year with confidence. With a solid 56.9 hl/ha, the 2012 harvest from the vineyards cultivated close to nature is slightly above the amount of 2011 and slightly below the long-term average. The hot, sunny August and the warm days in autumn ensured a long ripening period, which allowed for a selective harvest of the grapes in many stages. In some regions, the harvest was not completed until mid-November. In some areas, VDP wineries suffered losses due to late frosts or hail. However, despite these isolated failures, the harvest was satisfactory for VDP vintners. An excellent vintage is stored in the cellars, which raises high economic expectations. However, even the 2012 vintage will not be enough in terms of quantity to meet all demands.

Already after the first young wine tastings in spring, it became clear that the 2012 vintage is characterized by a very fine and ripe acidity. "From the beginning, the vintage was characterized by an extraordinary quality of the grapes. According to today's estimation, great VDP wines have been produced, which can join the series of significant vintages. Thanks to the decent harvest, the 2013 vintage will remain stable , VDP president Steffen Christmann assesses the future of the 2012 vintage of the VDP wine estates.

FURTHER SUBTHEMES VDP -Vintage STRUCTURES GENERAL 2012
.(this is an extrapolation only - not absolute figures)

TOTAL SALES IN 2012 (IN 0.75 FL.) approx. 34,000,000

VDP TOTAL AREA: 4.900 ha

RETURN IN Ø:
59 hl/ha (in the last 5 yrs.)
56.9 hl/ha (vintage 2012)

SALES IN Ø
Domestic 80%
Export 20% <.x>BR</x>(Export share from 0-80 %, especially strong in Mosel)

VOLUME OF SALES IN EURO
Total approx. 290 million Euro
per winery approx. 1.40 million Euro


VDP. Die Prädikatsweingüter<x><BR</x>Press and Public Relations
In the Zollhafen wine storage building, Taunusstr. 61
Tel. 06131-94565-14 - Fax 06131-94565-10

www.vdp.de

40 YEARS MAINZER WEINBÖRSE - 175 VDP-WEINGÜTER PRÄSENTIERE ..
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