Wine in Switzerland

PROSPECTS

Health awareness, lifestyle changes and weather patterns all shape wine sales

As a result of Swiss consumers opting to reduce their overall alcohol intake, wine total volume sales continued to decline 2018. Even though the country’s thriving tourism industry, especially during the winter months, offset some of the negative impact, a generally strong fall in demand remained noticeable.

Lighter wines becoming more appealing

The heaviest volume declines in 2018 were recorded by products of a more traditional nature, such as sherry and still red wine. Imported wines in particular faced a strong drop in demand.

Intensified competition requires more creative marketing efforts

Despite the fall in demand for wine, the number of vineyards and retailers offering their own products continued to increase over the review period. Thus, competition between providers intensified notably, putting further pressure on existing players and threatening value growth due to a strong and increasing private label presence.

COMPETITIVE LANDSCAPE

Schenk – a successful company since 1893

In 2018, Schenk maintained its leading position in the otherwise highly fragmented wine category in Switzerland. It continued to benefit from offering both a large portfolio of renowned and award-winning domestic wines as well as a wide variety of imports.

Private label a force to be reckoned with

One of the major threats to growth for existing brand manufacturers and to value sales is the strong positioning of private label in wine in Switzerland. The four leading private label players alone accounted for more than one fifth of overall wine volume sales in 2018.

Sparkling wine performing well

Other brands and manufacturers which recorded positive performances in 2018 were mainly positioned in sparkling wine, for example Moët Hennessy and Freixenet. Their high level of brand recognition, positive image regarding product quality but relatively low pricing compared to champagne, for example, contributed to their ongoing popularity.

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