| When the whole world is reeling under excess supply and sales under pressure, Rioja recorded the highest sales of 262 million liters in 2006, a growth of 4.34% over 2005. The exports of 79 million liters was about 11% more than the previous year and at an all time high.
Rioja wines were extremely popular overseas in the nineties. It had gone up almost three times during the shining era from 992-1998 when it went up from 26 million liters to 72 million liters. However, the producers had been increasing prices continuously, exploiting the tremendous popularity. The consumption crashed in 6 years , in 1999-2000 down to 40 millon liters. The prices were then brought in line with the earlier and more reasonable prices and the exports started going up. During the last 6 years it went up to 79 million liters.
UK is the biggest importer with a figure of 27.84 million liters, almost twice as much as the next nearest importer, Germany which imports less than half, at 13.2 million liters. US has seen the maximum growth of almost 90% during the last 5 years-from 3.9 million liters to 6.8 million liters. It has lost its sheen in Sweden , and Denmark where it has come down by 50% from 3.7milion liters to 1.8 million liters. These countries apparently shifted away to better value substitutes and one finds it difficult to capture this market.
90% of the wines produced are red wines. Rest are almost evenly divided into Rose and whites. Despite focussed efforts, experimentation and promotions, Riojan whites have failed to impress. The government has even made relaxations a couple of months ago allowing more interesting varieties of grapes to hep the producers come out with better and more interesting wines.
Over 85% of wines are still unaged or Crianzas. 12.54% are Reservas which at 42 million liters are growing at the fastest growth rate of 15% annually. Only a small 1.35% are the longer aged Gran Reservas.
Rioja wines have not made a breakthrough in the Indian market. But with the continued awareness and many new importers expanding their portfolios, one will see a lot of Crianzas and Reservas. A duty reduction will result in the import of Grand Reservas and Reservas.
Source: www.riojawine.com |
