Wine Economics Archives

The Think Tank on Talent in Wine Tourism – Part I

The Think Tank on Talent in Wine Tourism took place March 23 and 24 2023, ahead of the 7th UNWTO World Conference on Wine Tourism, November 2023 in La Rioja, Spain.

The overall objective was to address the current situation of wine tourism training at the international level and to identify the specific training needs to respond to the demands of the sector in the coming years.

The Think Tank was Jointly organized by the Government of La Rioja and the Ministry of Industry, Commerce and Tourism of Spain, in collaboration with the World Tourism Organization. The Think Tank’s 2-day event: the first day was a closed meeting with key relevant experts in the sector, as well as representatives from wine tourism territories from around the world; and the second day was a series of sessions open to the public.

Here is day two of the programme:

7th UNWTO Global Conference on Wine Tourism presentation – Maria Soledad Gaido, Technical Coordinator, Tourism Market Intelligence and Competitiveness, UNWTO
Enorregion Strategic Project Presentation – María Jesús Miñana, General Director of Agriculture and Livestock, Government of La Rioja; Pilar Vargas, General Director of the University and Scientific Policy, Government of La Rioja; and Ramiro Gil, General Director of Tourism, Government of La Rioja
Introduction to Wine Tourism Training

Panel 1. Origin – Wine Tourism and Training Resources

Rainer Brusis, Director, Innovation Management

Marianna Sigala, Director, Centre for Tourism and Leisure Management (CTLM), University of South Australia (Australia)

Gergely Szonloki, professor of Market Research, Geisenheim
University / Member of the OIV/UNWTO Working Group (Germany)

Panel 2. Destination – Wine Tourism Prospects and Future Profesional Skills

Manuel Romero, Director, Dinamiza Asesores

Claudio Cilveti, President, Enoturismo Chile

Catherine Leparmentier, Managing Director, Great Wine Capitals
Global Network / Oenotourisme et Réseaux Internationaux,Chamber of Commerce And Industries (France)

Niklas Ridoff, CEO, WineTourism.com (Sweden)

Tamuna Kakhidze, Chief specialist, Department of Tourism
Product and Infrastructure Development, Georgian National
Tourism Administration (Georgina)

Panel 3. Action plan – Challenges of Wine Tourism Training

Eduardo Fonseca, Vice Chancellor for Research and Internationalization, Universidad de La Rioja

Eduardo de Diego, Director of Communication and Head of International Relations, Federación Española del Vino

Paula Sousa, Wine Tourism Consultant, Lisbon School of
Economics & Management (Portugal)

Mariette Du Toit-Helmbold, Chief Destineer, Destinate (South Africa)

Watch this space for Part 11 which will include new ideas and solutions the panel members have come up with, and published via report and/or research in the near future.

New Index “WB Stock Index (WBIX)” Tracks Performance of Public Wine Companies

A new tool rooted in publicly traded wine companies and offering insights into the health of the wine sector has launched on winebusiness.com.

The WB Stock Index (WBIX) is a composite metric representing a portfolio of 13 publicly traded wine companies, weighted by each company’s annual wine revenue. The index reflects the daily percentage change in stock price at the end of the previous business day according to the significance of each producer in the marketplace.

The baseline for the index is Jan. 1, 2020, a time of strong performance by other indices and well before the onset of pandemic disruptions. The index stood at 119.02 as of March 1, indicating that publicly traded vintners have seen fortunes strengthen during the pandemic. The market’s confidence in the sector as a whole remains high. The index is intended to provide a snapshot in time and help benchmark a company’s performance against its peers. Performance can vary depending on the interval chosen, meaning a comparison across several intervals can be helpful.

Some of the strongest performers have been the luxury wine companies LVMH and Pernod Ricard, which have both performed well as aspirational and discretionary spending remained strong over the past year. LVMH’s share price has increased 28% over the past year to $170.45 while Pernod Ricard’s increased 3% to $42.22. The gains continued in the latest three months, with LVMH up 14% and Pernod Ricard up 7%, underscoring the long-term momentum underpinning each company.

The least fortunate company among those tracked by the index has been Vintage Wine Estates, which has seen its share price fall 83% versus a year ago to $1.39, with much of the slide registered in the past three months after the company restated earnings for the first quarter of fiscal 2023, released preliminary numbers for the second quarter that projected lower than expected revenue and gross margins for the year, and withdrew guidance on expectations for the remainder of the fiscal year, which ends June 30. The company also made a change at CEO with founding partner Pat Roney moving to the role of executive chairman and Director Jon Moramarco assuming the role of interim CEO. Moramarco is also the editor of the Gomberg Fredrikson Report and founder of bw166. On March 10, the company announced it had sold a 42-acre vineyard in Napa Valley for $11 million to reduce its overall debt. Following the sale, Vintage reported it owns approximately 1,600 acres of vineyards and leases an additional 800 acres.

Vintage is significant enough to influence the index but not sway it. Two of the largest components are instead LVMH and domestic vintner Constellation Brands, which has increased 2% over the past year but fallen 11% in the latest three months as its most recent earnings report underwhelmed the investment community. This is in line with the challenges other public companies have seen.

While a value decline can indicate a lack of confidence by the markets, it also creates a buying opportunity for long-term investors. The Duckhorn Portfolio, for example, has underperformed the index with a 19% drop in its share price over the past year. Currently trading in the range of $14.99, its shares have ranged between $12.64 and $22.29 over the past 52 weeks. Despite a lower price, several analysts have maintained a buy rating on the stock, an expectation that its share price will increase and reward investors. Bank of America analysts are among them, while Barclays upgraded its rating on the stock because of its latest earnings report.

This is in contrast with response to shifts in Vintage’s stock price, where sentiment has shifted in favor of “sell” from a uniform “buy” rating a year ago. Canaccord Genuity Group is among the bears, noting that it had more questions than answers about the company’s financials and future.

When it comes to public perception, however, the market is largely in favor of the wine sector. WBIX has outperformed the S&P 500, rising nearly 4% over the past year as the S&P 500 fell nearly 7%. The latest three months have seen it increase 2%, or twice the growth posted by the S&P 500.

Link to Index: https://www.winebusiness.com/finance/wbix

Source: Wine Business

Winelikes and Balzac Communications partner to launch social networking app

The new social networking app “Winelikes” will be released as a beta version in a few weeks, connecting wine drinkers, wineries, bars and restaurants. The new app is designed to grow consumers’ wine knowledge, wine palates and help them share experiences along the way.

The app will allow you to generate a taste profile that will guide you towards the types of wines that you will most likely enjoy. As well, you can scroll through the interface and interact with the “Winelikes Community” which connects other users and locations, sharing photos and reviews.

Wineries, wine bars and restaurants will have a direct pathway to connect with customers. They will be able to target audiences within the app by easily creating advertisements and sending direct messages while also posting regularly.

Before starting Winelikes, Owner and CEO Jeff Gillis worked as a food and beverage director at numerous five-star properties. He believes the app will bring new people to wine and give current enophiles a way to chat with like-minded individuals.

“Learning about wine and finding out what you like is so difficult alone,” he said. “Our app will provide a fun way for people to discover wines that might appeal to them. They can learn more about wine through fun quizzes and conversations with others. Our simple yet modern interface makes it easy for Winelikes to serve individuals from every generation.”

Gillis also notes that Winelikes won’t use algorithms to suggest content, which differentiates it from many existing social media apps. “When you connect with others, you see their posts and not content a computer (or AI or algorithm) thinks you’re interested in,” he noted.

Gillis selected Balzac Communications and Marketing to help recruit influencers and build buzz for the app because of the firm’s expertise in both technology and wine. “Winelikes is a wine app, so it’s important to work with someone who is knowledgeable and has access to wine regions,” he said. “But we’re also a social media company that relies on technology. Balzac has the perfect balance of wine expertise and technology experience to make this company successful. Their location in the heart of wine country and connection to influential people in the industry will help us expand our reach and do it more quickly.”

“There are dozens of wine apps in the various marketplaces,” said Mike Wangbickler, president of Balzac Communications and Marketing. “Some are quite good, but none are truly social networking apps with a focus on wine. Winelikes is. Wine is a social beverage. We use it to toast to those we care about and share time with friends. The existing, big social networks are OK at connecting wine lovers and enthusiasts, but there is a ton of noise and wine is not their primary focus. With Winelikes, users can geek out as much as they want, or simply find friends with similar interests. In addition, companies selling wines have a receptive and available audience to tell their unique stories and grow their brand engagement.”

The Comité Champagne Announces 10 Year Investment Plan

The Comité Champagne today lifts the veil on the sector’s plan for the next decade, defining a global trajectory to face the challenges of the next 10 years. The main objective of this plan is that Champagne is always available, always desirable and always exemplary. In addition, the Comité Champagne will increase its annual budget by an additional €10 million ($10.72 million), which will be invested in areas including R&D, the sustainable development of the Champagne industry and strengthening its foundational missions.

Champagne Remains the Standard

The results for 2022 confirm the overall dynamism of the Champagne market, with 326 million bottles shipped globally in 2022 (up 1.6% from 2021). Champagne has quickly recovered from the shock of the 2020 health crisis and unquestionably retains the unique place that it holds in the hearts and minds of consumers.

An Interprofessional Committee that Meets the Challenges of Tomorrow

However, the vineyards are fragile; they suffer from unpredictable weather patterns and the development of diseases that cause the vines to wither, such as flavescence dorée, which has been referred to as the 21st-century phylloxera. Faced with these new challenges, and because the power of Champagne is based on the collective efforts of the industry as a whole, the Champagne winegrowers and houses once again take their destiny into their own hands.

A Revamped Research, Development and Innovation Center

To meet the challenges of production and quality, the Champagne sector will be equipped with a new center of research, development and innovation. This new site, which will be launched by 2025, will increase the surface area of the existing laboratory by 40%. It will also contain state-of-the-art equipment, including a new resized fermentation room/experimental cellar, a new tasting room twice as large as the existing room, and a new one-hectare experimental platform.

Preparing the Viticulture of Tomorrow While Preserving the Character of Wines in a Changing Climate

Grape varietal research is a strong tool for adapting to climate change and a response to societal expectations for the reduction of phytopharmaceutical products. In response, Champagne joined the INRAE varietal innovation program in 2010 and created its own regional program in 2014.

To sustain the availability and quality of its wines, Champagne is experimenting with new varietals, researching new techniques to combat the various forms of decline in the vineyard, defining new soil maintenance protocols, and implementing new oenological strategies to anticipate the effects of climate change while also meeting the requirements of the agroecological transition.

An Ambitious New Sustainable Development Plan Towards “Net-Zero Carbon” by 2050

Champagne has been at the forefront of sustainable development in the wine industry. In the 1980s, the Comité Champagne began work on wastewater treatment, biological control in the vines and vineyard zoning. The Champagne sector has fought against a changing climate and adapting to new conditions is a key priority. As such, the sector is particularly proud of its results to date: 100% treatment of wine effluents and more than 90% of industrial waste, a 20% reduction in the carbon footprint per bottle since 2003 and 63% of the vineyard areas receiving environmental certification (with a target of 100% certified by 2030).

That said, this plan must also reinforce the economic and social ambitions of Champagne. These ambitions go through improving the resilience of the sector, its workforce and the attractiveness of the region.

“It’s not just about responding to changing consumer demands, it’s about ensuring the productivity and sustainability of the Champagne vineyards, designing and promoting a viticulture in balance with the ecosystem and producing a sufficient quantity of quality grapes” said Maxime Toubart, President of the Syndicat Général des Vignerons and co-president of the Comité Champagne. “This is the goal of our industry plan and the course which we are setting for ourselves.”

The plan also aims to strengthen the training mission with the establishment of a large, coherent and impactful education ecosystem, with the goal of being recognized as the gateway and key player in Champagne training and education.

Today, Champagne has offices in 10 of its largest export markets, including the United States, which are responsible for promoting the appellation in their respective countries. This network of Champagne embassies will expand to make Champagne stronger globally.

“The investment we make embodies the social responsibility of our sector,” said David Chatillon, president of the Union des Maisons de Champagne and co-president of the Comité Champagne. “It is an absolute priority that Champagne remains an exceptional wine supported by a united, responsible and committed industry. It is a new goal at the service of new ambitions for our appellation and our terroir.”

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What Are The 10 Most Expensive Countries to Buy a Bottle of Wine?

As we are all aware, the average price of a bottle of mid-priced wine can vary drastically from country to country. CompareMyJet has researched and compared the price of wine across 38 OECD countries (converted to GDP) to reveal the most expensive countries to buy a bottle of wine.

Here are the results:

Country	Capital city	Average price of a bottle of wine (£)
Iceland	Reykjavík	14.97
Norway	Oslo	14.35
South Korea	Seoul	12.79
United States	Washington	12.33
Switzerland	Bern	11.07
Australia	Canberra	10.96
Finland	Helsinki	10.47
Ireland	Dublin	10.47
United Kingdom	London	9.36
Mexico	Mexico City	9.14

Wine drinkers not wanting to spend extra may want to avoid Iceland, with the average price of a bottle costing £14.97. But the extra cost may be worth it when enjoying a glass of wine with a view of the northern lights.

Source: CompareMyJet

#Sunday #sundayfunday #sundayvives #wine #winelovers #winetourism #winenews #vino #winetasting #vin #travelling #winetravels