Hospitality is constantly going through renewal in the UK. Wine has a significant part to play in how service is delivered and the consumer experience.
The wine world has many influences, being one of the most globally traded consumer goods so who better to speak to about some of the trends and influences on it than CEO Guillaume Deglise, head of the highest profile wine trade show in the world. He spent 30 minutes with me describing how the world of wine looks from Vinexpo’s authoritative position.
Vinexpo is the highest profile wine trade show in the world. It has shows in Bordeaux since 1981, of course, Hong Kong for 20 years, Tokyo, New York and Paris in 2020.
Has Champagne had its day?
Guillaume comes from a 15 year Champagne career and I wonder if he believes that Champagne is threatened by Prosecco – has it had its day?
Guillaume believes that there is a bright future for Champagne however it is, and will be affected (by the growth of Prosecco). But if you ask the consumer to name 5 Champagne brands and 5 Prosecco brands, then they will be able to name the former, but not the latter. Prosecco has become the brand name as opposed to Champagne where the region and the brand are important.
The world is changing and Champagne is in competition with many other categories for example in the aperitif sector where we now see Rose being drunk often by men.
China leads world growth
According to IWSR statistics presented at the press conference China’s growth will dominate the rest of the world with value growing by a staggering 39.97% in the next 5 years. The UK market, second to the USA currently in value size, will drop to third largest by 2021.
With Guillaume already speaking 5 languages, perhaps he should learn Mandarin?
Perhaps his daughter, will and maybe he should, he replies, semi- seriously!
Is Vinexpo Davos of Wine?
Guillaume set out with Vinexpo in 2014, at a time when the show had been through a rough patch. His agenda was to re-set it to become the ‘Davos’ of wine.
It has always been a great meeting place for the industry and the important aspect was to be able to take its customers to the important markets in the world; hence Hong Kong, Tokyo and now New York. Who knows Africa and S.America next, but not before a new Paris Show in 2020.
Although each expo is different, Bordeaux, Guillaume believes, is still the centre of the wine world and they are happy and proud to be based there. It is a special experience to be able to experience these historic vineyards at the same time as being able to network at the show.
Vinexpo – 3 Continents
Hong Kong is the leading and only premium wine event in its region, where many brands from all over the world gather.
New York opens next month for the first time, having been over-subscribed and having high pre-registration from visitors.
Tokyo is the only single market expo, which because Japan is so unique as a market deserves its own spot.
And now there is Paris opening in 2020.
I wonder if there is any confusion with the long standing Bordeaux event?
Paris is more about the short-term, whereas Bordeaux is more long-term. When you go to Bordeaux you are thinking about the next 5 years, in Paris it will be the first show of the year and opportunity to discuss the following years campaign.
2017 Harvest – Affects?
As reported in these columns previously, 2017 was the worst grape harvest for 50 years with serious shortages across Europe, S.America, drought affecting S.Africa, and only California & Australia having reasonable vintages. Guillaume believes that consumption will be affected, but it is difficult even at this stage to predict how.
Did the EU make a mistake in 2008 by actively restricting production?
No he doesn’t believe so. It serves better quality and premiumisation of the wine category is the evidence for that. The IWSR reports that in the UK premiumisation will drive growth by 10.7% over the next 5 years period, whilst volume will decline by 11%.
Spirit of Openness – Trump & Brexit
Vinexpo’s strategy is conducted, according to their own words ‘in the spirit of openness’. With the advent of BREXIT, Trump and a generally more isolationist governmental policy will that affect the wine and spirits industry?
The IWSR statistics demonstrate that this industry is an increasingly global industry with demand for domestic product remaining flat and the growth in imported across the board especially in the United States.
Australia has been named the Country of Honour ahead of Vinexpo Hong Kong, which Guillaume is delighted about. It is the achievement of his strategy set when he became CEO and it is a pleasure to have the Aussies back in the Vinexpo fold. They have 65 different regions and many different terroirs and varieities. They are producing many lovely wines, which are no threat to Bordeaux. It is part of the strategy to get closer with many other wine producing countries developing their awareness and image.
Climate change – Global Warming or Ice Age?
It would be pretentious of Guillaume to advise winemakers in either direction, however Vinexpo can be and is a forum for industry notables, scientists and others to discuss and hopefully resolve answers to the questions.
Will Alcohol become like Tobacco?
With premiumisation becoming a ‘thing’ now across Europe, will wine and alcohol come to be treated as a scourge of society in 20 years time? Guillaume doesn’t believe so. In France Wines and Spirits is still the second largest industry after aeronautics and in other countries it takes pride of place such as Argentina. In any current perspective there is no chance of it becoming like tobacco.
Do Expos have a future with increased Social Media?
Absolutely and they will continue to grow because of social media. Social media is complimentary and Vinexpo uses social media to promote, as well as including all participants with posting widely used.
Wine is an experiential product.
No strong wine brands – Threat?
It depends on how the millenials respond, as we don’t really know that now. However we do know that millenials are more into craft, organic, limited edition and not in favour of big players. These suggest wine will do well.
That may mean the industry misses out on big data trends, but at this stage it is difficult to say.
Guillaume’s Favourite Wines
He is lucky enough to travel the world and taste many different regions and grape varieties, and is always intersted in the new wines.
However when he goes home tradition tends to takeover – Burgundy, Champagne (of course), or if his wife is in charge then Spanish becomes the order of the Deglise household.
He is particularly fascinated by the recent Pol Roger Champagne story, which declared the re-discovery of up to 1.5Million bottles of the famous fizz lost in a cellar collapse nearly 120 years ago.
Conclusions for the Hospitality Industry
Wine will continue to play a significant part of the hospitality business, but you need to be on your game. Ignore premiumisation at your peril – consumers want better wines and will be prepared to pay more for them, but they will drink less. So the credibility of your establishments choice and how it markets that is critical to wine selling to optimum profit and volume. The 2017 presents some short term issues which will need to be carefully handled and negotiated. Be prepared to change traditional favourites that go up in price, but justify your choice at every stage.
Alistair Morrell, Hospitality & Catering News, Wine & Drinks Editor