Wine sales on the national market grew in the first half by 14.3% in volume and 52.8% in value to a total of 130 million litres, worth 503 million euros. Figures that ‘hide’ the downturn in large distribution, but also the enormous boom in the catering industry, as a result of the recovery of tourism.
Thus, and according to Nielsen data released yesterday by the Instituto da Vinha e do Vinho (IVV), wine sales in major stores fell 9.8% in volume and 4.8% in value between January and June. of 92 million liters (10 million less than in the same period last year) and 240.2 million euros (12 million less than in 2021).
On the other hand, restaurant sales are up 221.8% in volume and 241.8% in value. In total, 38 million liters were consumed in the first half of the year, amounting to 263 million euros. The fact that the restaurant was closed in the first quarter of last year due to the Covid-19 explains much of the growth, along with the substantial increase in tourism demand.
Average price rising
Also according to Nielsen, the average price per liter sold in large retailers is 2.61 euros and 6.91 euros in restaurants. In terms of regions, Alentejo wine is the firm favourite, with a total market share of 23%. Douro and Verde wines follow, with shares of 13.6% and 9.1% respectively.
For the chairman of the IVV, these are “very positive” data, especially given that the restrictions to fight covid have not completely disappeared. Therefore, says Bernardo Gouvêa, “it is so positive that wine sales in the national market are already 3.5% higher than in the pre-pandemic period, although they are still 2% lower in volume”. The “extraordinary” growth of restaurants is “excellent news”, namely for the opportunities it generates for the premium and ultra premium.
Due to the growth of sales in restaurants, but also due to inflation, the average price of wines is already 4% above the pre-covid period, increasing from 3.71 euros in 2019 to 3.87 euros this year . A value that, Bernardo Gouvêa admits, “doesn’t reflect inflationary pressures, especially in terms of packaging and logistics components, but is a good indicator”.
As for the outlook for 2022, the IVV chairman acknowledges that the second semester will be “very complicated”. “There are many producers in a complicated situation trying to control the inflationary effect and the constraints at the logistics level. Especially smaller producers,” he emphasizes.
declining production
Harvest forecasts already promise a short harvest, practically across the country, insofar as only four of the 14 national wine regions foresee a production increase this year. In total, according to IVV data, a total production of 6.7 million hectoliters is expected, 9% less than last year. However, the IVV recalls that this production represents a growth of 2% compared to the average of the last five harvests.
In terms of regions, Douro and Lisbon are the ones with the highest estimated percentage declines, in the order of 20%. Beira Atlântico expects to maintain the same production as in 2021, while the Algarve and the Tagus expect growth of around 5%. Terras de Cister and the Vinhos Verdes region, in turn, expect more wine in the next harvest, with an estimated increase of 10%.
Ilídia Pinto is a journalist for Dinheiro Vivo
Source: El heraldo
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
