The Norwegian Wine Market 2012 - Wines Of Argentina

The Norwegian
Wine Market
2012
Presented by:
Arne Ronold MW
Mai Tjemsland MW
Cathinca Dege

The country & market
5 mill inhabitants – 2500 km long country
Not a member of EU like Sweden
Steady consumer economy
2000 to 2011 – wine up 50 %
( from 42 mill to 63 mill Lit sold)
State controlled retail monopoly for all
alcoholic beverages < 4,76 % vol.
(beer, wine, spirits)
From 1994 – wine and spirit import
privatized - 252 licenses per Oct. 2011

Monopoly Retailer –
Vinmonopolet (VP)
Vinmonopolet – the only retailer
267 outlets divided into 6 categories
Each category has fixed no. of products
from 220 to 1250 products - plus up to
10 % can be selected by each outlet
No alcohol marketing towards endconsumers
No legal in-store promotions
Staff do not recommend – only advice

Market Accessibility
VP – ensures - all suppliers & products
have same access to the market
Monopoly listing system is based on
volume
Volume means best-sellers over the last 6
month on rotation (for tenders – last 12 )
VP – market plan – selects focus
areas/countries/style of products for
tenders every 2nd month

Market dynamics
Two main product selections:
Basic listing – available in all 267 outlets –
listing based on tenders & volum
Additional listing – available for all
products for pre-order – future listing
based on volum as above
Comprise over 10.000 products
Less than 5 % of sales volum is preordered

The wine market
Still wine volum 2011 63 mill litr
Additional < 10 % is sold in On-trade
69 % is red wine, 24,5 % is white wine
Italy heavily dominating with 30 %, France
second 17 %, (IT + FR + SP cover 60 %)
60 % of white is France & Germany
4 largest countries (+ AU) 72,5 %
Close to 60 % is Bag-in-Box, white/red -
btl volume decrease

Factors influencing the
wine market
High taxation on alcohol
Motivate increasing cross-border
shopping – especially from Sweden
Counts for around 30 %
Currency and lower tax gives 50 %
cheaper wine in Sweden
Increasing Tax-free sale -
international travelling increases

Taxes – per 2012
Alcohol tax:
US $ 0,72 per % per litre (measured pr
0,5 % alc.)
Environmental taxes:
Cardboard/BIB per unit: US $ 0,21
Glass/btl: US $ 0,848
Disposable packaging for all: US $ 0,174
VAT: 25 %

Consumer behaviour
Norwegians are not particular
«innovateurs»
But – loyal consumers towards preferred
brands and preferred price segments –
international or tailored for the market
Scandinavia & Nordic Monopolies - the
last 15 years differ from many markets
with their special preference for Bag-in-
Box packaging (Sweden + Finland)
Bag-in-Box (BIB) – is also used for
Premiums

Bag-In-Box
Tailored for the market – former
production part of the monopoly – Arcus –
largest producer of bulk wine/BIB
International Brands – Lindemans, J.P.
Chenet, Alamos Malbec
3 Lit is the most popular packaging/BIB
1997 BIB - 5,1 mill Lit - today 2011 < 34,5
mill liters
BIB Packaging increasing for Premiums

Chablis - Best selling
Premium - no.21 of
whites listed
NOK 479 – US $ 80

Bestselling
Argentinian Bottle
NOK 107,-
Sold 20.000 litr in
2011(no.99 besteller)

Bestelling BIB
Astica
Chardonnay
Tailored for the
market – no 40
bestselling
NOK 344,90

Alamos Malbec
NOK 325,80 for 3 litr

Why is BIB an important
success factor
The convenience of BIB is key:
– easy to carry – easy disposal – durability
A total of 525 BIB are available
Include popular Premiums like Chablis
BIB for consumers do NOT mean low quality
Leisure/ Week-ends – 2/3 of Norwegians have
access to countryside cottages in the
mountains or by the sea, many without car
access to the door
= BIB - convenience

On-trade
Do not buy wine through the monopoly
Normally buy wine from different
distributors
Can buy wine directly from importer
OW still dominates
Increasing use of screw caps
Increasing offering of exclusive On-trade
brand/labels
BIB – bar/pub/family-restaurant - glass

Food trends
Still influenced by mediterranean Cuisine
Asian influence – Thai and Japanese
«pure food» – organic, eco, lean, light
Use of local ingredienses
Familystyle restaurants – easy italian &
tex-mex

Food & Wine pairing
White: - aromatic, fruity, dry and mineral –
no heavy oak influence – pairing with
pure or spicy seafood, fleshy white fish,
salmon and trout in all versions – raw,
spicy, broiled
Red: - fruity or spicy, blends, softer and
integrated tannins, no heavy ripe berry
concentration or heavy on oak – pairing
with herb-baked chicken, roasted lamb,
classic beef dishes, deer and game
Red wine and cheese

Trends 2012
Increasing volume sold in BIB
Focus from VP towards NW Tenders
Future focus from VP on Food & Wine in
combination
Increasing interests for Wine Courses
More Premiums offered in BIB
Light weight packaging