POLISH WINE MARKET AND IT’S

PERSPECTIVES

DECEMBER, 5, 2019

SZYMON MILONAS, WINE REPUBLIC

Wine importer, Wine republic company

Board member of Polish Sommelier

Association, responsible marketing and

partnerships

WSET courses provider, wine school owner

Szymon Milonas

Consumption perspective – alcohol, wine

Legal perspective

Distribution Chanels

How to deal with importers

Content - polish wine market

Alcohol sales 38,5 mld PLN (~8,953 mld

euro), premium craft beers 2018-17 +41%

The wine market is dynamically growing

(average 9% per year). Poles see wine as a

product of high quality and prestige

Figures

9,37

9,45

9,55

9,25

9,3

9,35

9,4

9,45

9,5

9,55

9,6

2016 2017 2018

100% ALCOHOL CONSUMED

PER CAPITA

Poland revenue in the Wine segment amounts to US$1,441m in 2019. The market is expected to grow annually by 8.9% (CAGR 2019-2023).

In relation to total population figures, per person revenues of US$38.03 are generated in 2019.

The average per capita consumption stands at 4.5 L

Revenue in the Fortified Wine segment amounts to US$65m in 2019. The market is expected to grow annually by -11.200578% (CAGR 2019-2023).

In relation to total population figures, per person revenues of US$1.71 are generated in 2019.

The average per capita consumption stands at 0.2 L in 2019.

Fortifed wines expected decrease

Statista.com

S

Sale of alcoholic beverages in

Poland - value

47%

30,70%

8,60%

5,40%

4,30% 4%

Beer Vodka Wine Liquors Whisky Other

Import doubled from 2010 to 2018.

Volume 131,5 mln litres

Value - 1 mld PLN in 2018 (232 – 300 mln euro),

General Sales 2,16 mld PLN.

Wine consumption

Italia 25%

Spain 17%

Germany* 16%

USA 15%

France 12%

Chile 8%

Moldova 7%

VOLUME SHARES

Import directions

20%

15%

12,30%

9,70%

9,60%

8,50%

6,40%

4,80%

4,70%

2,70% 6,30%

Italy Bulgaria Spain Germany USA France Portugal Chile Moldova Hungary Other

What is your favorite alcoholic

beverage?

26,90%

19,40%

11,00%

10,20%

7,80%

4,70%

4,30%

15,70%

Beer Wine Liquor Whisk(e)y Vodka Cider Champagne Other

Retail sales

TOTAL POLAND MAT NOV'17 MAT NOV'18 zm. dyn

sales volume (l trs ) 96 973 99 953 2 980 3,1%

sales value 1 998 465 2 145 779 147 313 7,4%

av prix/ btl 0,75 15,5 zł 16,1 zł 0,6 zł 4,2%

sales volume (ltrs)

distr channels MAT NOV'17 MAT NOV'18 zm. dyn sh MAT 18

MTT 29 420 29 408 12 - 0,0% 29%

MTD 39 099 39 693 594 1,5% 40%

TT 28 453 30 852 2 399 8,4% 31%

TOTAL 96 972 99 953 2 981 3,1% 100%

sales volume (ltrs)

colours MAT NOV'18 zm. dyn sh MAT 18

RED 51 497 1 372 - -2,6% 52%

ROSE 15 990 1 616 11,2% 16%

WHITE 32 043 2 719 9,3% 32%

OTHER 422 17 4,3% 0%

TOTAL 99 953 2 980 3,1% 100%

sales volume (ltrs)

taste MAT NOV'18 zm. dyn sh MAT 18

SWEET 12 312 2 366 23,8% 12%

SEMI SWEET 34 842 41 - -0,1% 35%

DRY 29 475 342 1,2% 29%

SEMI DRY 19 832 38 - -0,2% 20%

OTHER 3 492 350 11,1% 3%

TOTAL 99 953 2 980 3,1% 100%

Carlo Rossi/ Mogen

David

Produkty bez oznaczeń

Produkty bez oznaczeń

S: ACN

11

Trends in wine segmantation

Shares and trends – price categories

sales volume (ltrs)

prix segments MAT NOV'18 zm. dyn sh MAT 18 RSP PLN

ECONOMY 32 174 838 - -2,5% 32% do 12

MAINSTREAM 49 028 771 1,6% 49% +12 do 20

PREMIUM 14 876 2 758 22,8% 15% +20 do 25

TOP PREMIUM 3 817 284 8,0% 4% +25 do 30

ULTRA PREMIUM 57 5 8,7% 0% pow 30

TOTAL 99 953 2 980 3,1% 100%

S: ACN

12

BANDEROLS

Number of licences

A (beer),

B (4,5-18% - no tawny port),

C - spirits licence

No e-commerce allowed

No ads (propaganda) allowed

Legal perspective

Obstacles

Legal restrictions. Polish ‚sober law’ was created in

1982. In last year it was amended. It practically

bans on-line alcohol sale, restricts advertisment of

alcoholic beverages (even the apperance of

storefronts is under control). Another obstacle is the

duty of banderolas on the top of every alcohol

bottle (exception: beer). It increases the cost of

import.

Excise for wine is (fortunately) generally low – 173 pln

per 100 l (about 40 Euro)

Off-Trade Modern Trade Discounts – Biedronka (Jeronimo Martins), Lidl, Netto) – some with own import

Modern Trade - Carrefour, Auchan, Polish Chains (Dino, Stokrotka, Zabka, Lewiatan, Eurocash) – some with own import

Traditional Trade –

On-Trade – restaurants - Warsaw, Kraków, Poznań, TriCity, Wrocław.

Polish Sommelier Association.

Education importance.

Distribution chanels

Sales channels

Wine market in Poland belongs to big players:

hiper- and supermarkets (46% and 43% of buying

consumers) and discounts

(44%). 20% of consumers

buy in wine stores.

32

18

15

34

4

0

5

10

15

20

25

30

35

40

Discounts Super Hiper Others Restaurants

SALES VOLUME

On-trade channel is weak (5% of sales volume). Poles prefer to

drink wine at home. Dinning outside is not popular. The big cities are only exception.

Due to forecast it will change – in 2023 - 19% wine should be

consumed out of home (in Portugal 87%)

Emails, emails, emails

English, English, English

www, www, www

What is important for importers

(like us)

Key questions

Key factors in buying alcohol are premiumisation, locality and

value for money

Main import directions are EU Countries, USA and Moldova

Main sale channel is off trade, especially markets and discounts

Main obstacles in development of this part of market are

bureaucratic regulations, fragmentation (numerous and weak

importers), consumers lack of wine knowlege

Obstacles

Fragmentation of import. In Poland there is

about 800-1000 wine importers. Majority of

them are small and weak, They have no

economic power to fight on the market

Consumers lack of knowlege. Poles know

very little about wine. It limits their choices to

known and cheaper product – the price is

main gauge at buying

WORSKHOP

„HOW TO ENTER POLISH MARKET”

If you are ready

Name your advantage – price, label,

price/value ratio, unique story

To stick banderols

Negotiate a price

Sent your wines 3200 km away

Be on the emerging market

You need to choose sales channel

Deep discounters - ?

Modern trade or traditional trade (importers

like AN.KA, Eurocash, TiM) – value for money

Specialised Stores and Horeca (importers like

Ambra, Wineonline, Wine rePublic) -

premiumisation

Sometimes it’s easier to start than to

continue…

Price „updates”

Vintages variations

On time delivery

Payment terms

Visits, trips for importers and customers

Start and Continue

Contact stages

https://www.act365.com/sales-funnel-template/

Sales funnel

https://www.mytechelite.com.au/what-is-a-sales-funnel-clickfunnels-ultimate-guide/

Please work in small groups on stages of

contact-starting cooperation written below.

What are the ways to succeed on them?

Exercise „from contact to relation”

Email contact

-winery presentation

-price list/price point

-next steps

Telephone call

Wine Broker

Sending Samples

Fairs

Trade shows

Exhibition

Dedicated tasting e.g. wines

from region organised with

trade agency

somms/importers