Fine Wines/Champagne and Spirits in Germany

PROSPECTS

Category records solid growth despite challenging environment for alcoholic drinks

In 2018, fine wines/champagne and spirits continued to record solid current value growth, even registering a slightly stronger performance compared to the previous year. That was particularly noteworthy due to the fact that alcohol consumption in Germany is witnessing an ongoing decline due to consumers’ increasing health awareness.

Growth driven by millennials’ increasing focus on premium products

While the growing preference for high quality products can be attributed to all consumer groups, millennials have had a particularly strong impact on driving this development. This is because millennials are increasingly focusing on leading healthier lifestyles, thus opting for non-artificial and natural high quality ingredients.

Luxury spirits benefiting from ongoing innovation and premiumisation

In 2018, fine wines continued to register solid growth in Germany as consumers increasingly focused on higher quality and valuable experiences. Luxury spirits also recorded positive growth, partly due to a more dynamic competitive environment, with a focus on flavour innovation driving demand in whiskies, tequila and vodka.

COMPETITIVE LANDSCAPE

Moët Hennessy maintains its leading position

In 2017, Moët Hennessy Deutschland remained the leading player in fine wines/champagne and spirits. As part of the global luxury company LVMH Moët Hennessy Louis Vuitton, Moët Hennessy Deutschland continued to benefit from the company’s strong image and offer of a wide portfolio of luxury brands in a number of categories, including champagne, cognac, vodka and whiskies.

Start-ups aim to benefit from growing consumer interest in quality

As the alcoholic drinks market in Germany is witnessing a trend towards higher value products, fine wines/champagne and spirits is seeing a growing number of start-ups, such as Berliner Spirituosen Manufaktur, which offers a range of different products. This development is contributing to a higher level of fragmentation in the category.

Internet retailing expected to become more relevant

Established players are not only facing a more dynamic competitive environment as a result of an increasing number of manufacturers but also due to a changing balance in terms of distribution. Aside from grocery retailers, a growing number of online platforms are offering fine wines/champagne and spirits.

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