O.I.V.2013

World Vitiviniculture situation in 2012

XXXVIth World Congress of Vine and Wine

Bucarest, 3rd June 2013

Federico Castellucci Director General

O.I.V.2013

State of the vitiviniculture world market 2012

Surface area

Grape production & yield

Wine

Focus on wine trade

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Surface area of vineyards

• Surface area of world vineyards

• European vineyards

• Southern Hemisphere & USA vineyards

• Asian vineyards

• Emerging vitiviniculture countries

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Surface area of vineyards worldwide

Source: OIV

7528 mha is the total worldwide area under vines in 2012 (including the areas under vines not yet in production or harvested). Surface are of vineyards continued to decline at a lower rate than that of the previous years. Between 2000 and 2012 it has decreased of – 319 mha, this decrease is mainly due to the reduction of European vineyards.

7 300

7 500

7 700

7 900

8 100

8 300

2000 2002 2004 2006 2008 2010 Forecast 2012

1000 haWorld surface area under vines

62.5%

56.0%

19.4%22.7%

12%13%

4.3% 5.2%2.0% 2.7%

2000 2012

Continental evolution area under vinesas % of global vineyard

2000-2012Europe

OceaniaAfrica

America

Asia

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European vineyards

0

500

1000

1500

2000

2500

3000

3500

2000 2002 2004 2006 2008 2010 Forecast 2012

1000 ha

Trends, 2000-2012

Portugal

Italy

France

Spain

-17%

-12%

-15%

-3 %

Source: OIV

The period of 3 years (2008-2011) during which the EU offered permanent abandonment premiums for vineyards has ended: 2012 area under vines is the first in 4 campaigns that has not been marked by the influence of these premiums: 4216 mha (- 339.4 mha between 2007 and 2012).

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Southern Hemisphere + USA vineyards

0

200

400

600

800

1000

1200

1400

2000 2002 2004 2006 2008 2010 Forecast 2012

1000 haTrends, 2000-2012

South Africa

New Zealand

Australia

USA

Chile

Argentina

+10%

+18 %

-1%

+21%

+168%+5%

Source: OIV

In the Southern Hemisphere and USA, new vine-planting has continued: a relatively moderate increase of 0.3% in comparison with 2011.

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Asian vineyards

0

200

400

600

800

1000

1200

1400

2000 2002 2004 2006 2008 2010 Forecast 2012

1000 haTrends, 2000-2012

Iran

China

Turkey -10%

+90%

-18%

Source: OIV

With 1705 mha areas under vines, Asia continues to see its vineyards growing: +12 % between 2000 and 2012 (+122 mha).

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USA 407 mha 1%

Chile 205 mha 4%

Argentina 221 mha -2%

South Africa 131mha -1%

Brazil 91 mha -1%

New Zealand 37 mha 7%

China 570 mha 19%

Australia 169 mha -2%

Increase Stability Decrease

Portugal 239 mha -3%

Italy 769 mha -7%

Spain 1018 mha -13%

Romania 205 mha -1%

France 800 mha -7%

Hungary 64 mha -11%

Greece 110 mha -4%

Turkey 517 mha 1%

Source: OIV

Surface under vines 2012 Evolution in % 2008-2012

O.I.V.2013

Surface area of vineyards has grown by 5% and more in the last 5 years

Emerging vitiviniculture countries

In addition to a rapid growth of an overall planted area…grape production growth is particularly significant

0% 50% 100% 150% 200%

Canada

Egypt

Brazil

India

Peru

Grape production: evolution 2000-2012

Growth rate 2000-2012

0

20

40

60

80

100

120

1401000 ha

Area under vines: evolution

Peru

India

Brasil

Egypt

Canada

Source: OIV

O.I.V.2013

These countries are getting more and more sensitive to the taste of wine

0500

100015002000250030003500400045005000

2007 2008 2009 2010 2011 Forecast 2012

1000 hlEvolution of wine consumption

India

Brazil

Peru

Canada

1000 hl 2007

Forecast 2012

Variation %

India 120 150 25%

Brazil 3254 3399 4%

Peru 683 809 19%

Canada 4018 4476 11%

Wine consumption

Emerging vitiviniculture countries

Source: OIV

O.I.V.2013

Global grape production & Yield

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Global grape production

Source: OIV

In 2012 world production of grapes (691 Mql) decreased: - 23 Mql between 2011-2012. An increased trend in grape production (+7%/2000), despite decrease in area under vines : this can be explained in part by an increase in yields.

200

400

600

800

1 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Forecast 2012

Mql

World grapes production

62,5%

39,0%

19,4%

31,2%

12%

21%

4,3%6,3%

2,0% 2,7%

2000 2012

Continental evolution grapes prouctionas % of global production

2000-2012Europe

OceaniaAfrica

America

Asia

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Global grape production & Yield

020406080

100120140160

Yield evolution (total grapes/total area including vines not in production yet)

World Total

Africa

America

Asia

Europe

Oceania

ql/ha

Source: OIV

Yield is the measure of amount of grapes or wine produced per unit surface of vineyard: the trend has increased at world level to 91.7 ql/ha. Productivity is growing especially in the countries that produce non-fermented products and table grapes.

O.I.V.2013

Major grapes producers: all usage

Source: OIV

Grapes production growth is particularly significant in Cina, India and Cile. Cina with 100 Mql produces the 14% of the world grapes production, followed by Italy (68.4 Mql, 10% of the world grapes production) and USA (66.3 Mql, 10% of the world grapes production).

-50% 0% 50% 100% 150% 200% 250%

China

Italy

USA

France

Spain

Cile

India

Argentina

Iran

World production

Growth rate 2000-2012

0

20 000

40 000

60 000

80 000

100 000

120 000

China Italy USA France Spain Cile India Argentina Iran

1000 ql

Trends , 2000-2012

2000

2005

Forecast 2012

O.I.V.2013

Wine Production of wine

• World production • Major producers

Consumption of wine • World consumption • Major consumers

Focus on wine trade

• World wine trade: value & volume • Top world Exportes • Top world IMporters

O.I.V.2013

Wine production • World wine production

• Major producers

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220

240

260

280

300

320

Europe72,7%

Asia4,5%

America17,0%

Africa4,3%

Oceania3,1%

Europe62,3%

Asia6,9%

America19,8%

Africa5,1%

Oceania5,9%

millions hl

World production of wine

Source: OIV

State, 2000 State, 2012

World wine production in 2012 is estimated at 251.7 Mhl. This is a low level especially for Europe, caused by the reduction in vineyards and poor weather conditions: -6% in comparison with 2011.

O.I.V.2013

Major wine producers

Source: OIV

Within the EU, production may be described as very low: • France: 41.4 Mhl (-18%/2011) • Italy: 40 Mhl (-6%/2011) • Spain: 30.3 Mhl (-9%/2011)

USA recorded a high level of wine production at 20.5 Mhl (+6.9%/2011). In South America, Chile recorded a new production record reaching 12.6 Mhl (+20%/2011), Argentina recorded a markedly reduced wine production (11.8 Mhl, -24%/2011).

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

1000 hl Trend, 2000-2012

20002005Forecast 2012

-60% -40% -20% 0% 20% 40% 60%

Roumania

France

Spian

Italy

Brazil

Greece

World Total

Germany

Portugal

Argentina

USA

China

South Africa

Growth rate 2000-2012

O.I.V.2013

Increase Decrease

France 41422 mhl -3%

Spain 30392 mhl

-15%

USA 2051 mhl

-1%

Argentina 11778mhl

-20%

Australia 12660 mhl

2%

Chile 12554 mhl

45% South Africa

1037 mhl -1%

Germany 9012 mhl

-10%

Russian Federation 6400 mhl

-10%

Portugal 6141 mhl

8%

Brasil 2917mhl

-21%

New zeland 1940 mhl

-5%

Hungarie 1874 mhl

-46%

Bulgaria 1337 mhl

-17%

Czech Rep. 470 mhl -44%

Romania 3311 mhl

-36%

Italy 40060 mhl -15%

Greece 3150 mhl -19%

China 14880 mhl

18%

Source: OIV

Stability

Production of wine in 2012 Evolution 2008-2012

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Wine consumption • World consumption • Major consumers

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World consumption of wine

2012 world wine consumption rose to 243.2 Mhl: a confirmed recovery of internal demand.

Source: OIV

150

170

190

210

230

250

270

290

2000 2002 2004 2006 2008 2010 Forecast 2012

millions of hlWorld wine Consumption

69.3%

62.0%

6.0%10.0%

19.8%22.0%

3.0%3.0%1.9%3.0%

2000 2012

Continental evolution total wine consumption as % of world

consumption 2000-2012

Europe

OceaniaAfrica

America

Asia

O.I.V.2013

Wine Consumption

Source: OIV

Countries that are historically big producers and consumers have reduced their level of consumption:

• France (-12%/2000);

• Italy (-27%/2000);

• Spain (-34%/2000)

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

1000 hl Trend, 2000-2012

2000

2005

Forecast 2012

-60% -40% -20% 0% 20% 40% 60% 80% 100% 120% 140%

Russian Federation

China

Australia

USA

United Kingdom

Chile

World Total

Brazil

Greece

Germany

Portugal

South Africa

France

Argentina

Italy

Spian

Roumania

Growth rate 2000-2012

Source: OIV

USA is becoming the largest internal market in the world in terms of volume, internal consumption: 29 Mhl in 2012 (+37%/2000). Wine consumption is rising sharply in Asia: continued growth in China (+67%/2000).

O.I.V.2013

*in collaboration with the Spanish Observatory of Wine Markets (OeMv)

Focus on Wine trade* • World wine trade: value & volume

• Top world Exportes • Top world IMporters

NOTE: data for world trade are taken from GTA, which, in turn, take them from official administration bodies in more than 80 countries of the world. Not all countries are, therefore, included.

O.I.V.2013

International wine trade

According to data officially provided to the OIV in 2012 : world market, considered as the sum of exports from all countries reached 102.2 Mhl

world import stood at 97.9 Mhl

Data for the special focus on world trade are taken from GTA, representing more than 80 countries.

O.I.V.2013

2.27 2.30 2.12 2.19 2.13 2.14 2.17 2.20 2.29 2.08 2.23 2.32 2.55

13 767 14 16614 964 15 259 15 775

16 39317 750

19 924 20 042

17 953

20 947

23 345

25 290

6 066 6 1577 061 6 958 7 413 7 643

8 1979 048 8 749 8 614

9 38510 073 9 903

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

World wine trade in Euros and LitresSource: GTA, OIV,OeMv

€/L

Mill €

Mill l.

World trade of wine and must increased in 2012 by 8.3% in value, up to 25.290 million Euros (exporters’ data) but fell by 1.7% in volume, to 99 Mhl, with average prices up by 10.2%

Less wine traded, though more expensive

O.I.V.2013

In value terms, since the beginning of the Century, Sparkling remains with the same share (around 17% of total), whereas 2 percentage points are exchanged between bottled wine (less) and wine sold in bulk (more).

Changing the composition: value

16.9% 15.4% 16.2% 16.8% 17.1% 17.9% 18.6% 19.7% 19.9% 16.5% 16.7% 17.0% 17.1%

73.7% 76.1% 75.6% 74.3% 73.3% 73.2% 72.6% 71.6% 70.7% 73.1% 73.2% 72.4% 71.5%

9.0% 8.2% 7.8% 8.6% 9.2% 8.6% 8.6% 8.4% 9.2% 10.0% 9.7% 10.2% 11.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Must

Bulk

Bottled

Sparkling

+ 2%

- 2.2%

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More clearly, in terms of volume where wine in bulk and containers above 2 l. are getting close to 38% of total market (up 3 percentage points since 2000), bottled wines reduce their share from 60% to 55% in the same period.

Bottled and bulk categories: volume

60.1%

62.9%64.5%

60.6% 59.9%61.6%

59.4%57.7% 57.7% 57.2% 56.8%

54.9% 55.4%

33.6%30.9%

29.1%

32.6% 33.5%32.0%

34.5%35.8% 35.1% 36.1% 36.3%

37.8% 37.5%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Bottled

Bulk

O.I.V.2013

Top wine exporters account for almost 90% of total value and more than 92% of total volume. With “traditional” producers growing in 2012 at a rate of 7.2% in Euros, versus 11.7% for “new” exporters. However, sales for the traditional producers decreased by 6.2% in volume whereas that of “new” producers increased last year by 6.4%.Similarly, export average prices grew faster in the “old world” (14.4%) than in the “new” (5%).

Top world Exporters

Top wine world exporters

2011 2012 Variation 2011 2012 Variation 2011 2012 Variation France 7 194.1 7 836.6 8.9% 1 419.4 1 499.2 5.6% 5.07 5.23 3.1%Italy 4 404.7 4 690.6 6.5% 2 323.8 2 120.0 -8.8% 1.90 2.21 16.7%Spain 2 215.1 2 359.9 6.5% 2 254.9 1 947.2 -13.6% 0.98 1.21 23.4%Germany 981.4 973.7 -0.8% 415.1 396.0 -4.6% 2.36 2.46 4.0%Portugal 657.8 707.5 7.6% 307.6 338.6 10.1% 2.14 2.09 -2.3%

Australia 1 426.7 1 523.7 6.8% 720.5 734.9 2.0% 1.98 2.07 4.7%Chile 1 220.5 1 399.5 14.7% 666.6 751.7 12.8% 1.83 1.86 1.7%USA 966.7 1 077.4 11.5% 421.8 400.9 -5.0% 2.29 2.69 17.3%New Zealand 646.5 767.0 18.6% 168.1 175.8 4.6% 3.85 4.36 13.5%Argentina 610.1 711.3 16.6% 317.1 364.7 15.0% 1.92 1.95 1.4%South Africa 541.8 566.1 4.5% 375.2 412.8 10.0% 1.44 1.37 -5.0%

Rest of the world

2 479.4 2 676.7 8.0% 682.4 761.6 11.6% 3.63 3.51 -3.3%

WORLD TOTAL 23 344.8 25 290.0 8.3% 10 072.6 9 903.3 -1.7% 2.32 2.55 10.2%

Mill. € Mill. l. €/l

7.2%

11.7%

-6.2%

6.4%

14.4%

5%

O.I.V.2013

Top 26 world importers of wine in terms of value (2012) account for 93% of world imports, divided into 5 major areas.

Top world Importers

TOTAL "OLD"

TOTAL "NEW"

Other exporters

TOTAL WORLD import

% total world

imports

Evolution in %

2011-12United Kingdom 2 712.9 1 157.7 73.1 3 943.74 15.8% 13.6%Germany 1 934.9 330.7 128.0 2 393.55 9.6% 0.6%Netherlands 572.0 199.8 101.2 872.97 3.5% 4.6%Belgium 823.8 68.5 71.9 964.18 3.9% 4.4%France 412.8 84.2 134.3 631.26 2.5% 1.5%Sweden 320.2 160.1 60.7 540.93 2.2% 5.9%Denmark 333.4 128.6 36.6 498.65 2.0% -1.6%Italy 248.3 38.0 19.2 305.46 1.2% 2.5%Austria 187.9 15.2 4.5 207.55 0.8% 15.4%Ireland 111.0 113.6 22.6 247.15 1.0% 9.2%Finland 92.3 61.9 30.4 184.67 0.7% 5.1%Poland 123.0 20.8 35.4 179.16 0.7% 7.6%Tchek Republic 106.1 6.6 58.6 171.34 0.7% 4.0%Lithuania 141.1 4.0 18.1 163.21 0.7% 32.8%TOP EU 8 119.6 2 389.7 794.5 11 303.81 45.2% 6.8%

Switzerland 823.8 70.2 33.0 926.98 3.7% 8.3%Norway 265.1 37.7 15.6 318.49 1.3% 10.4%Russia 517.4 96.5 203.7 817.51 3.3% 18.4%TOP OTHER EUROP 1 606.3 204.4 252.3 2 062.98 8.3% 12.4%Other importers 1 026.1 437.9 206.4 1 670.3 6.7% 9.9%WORLD TOTAL 17 110.6 6 325.2 1 559.4 24 995.2 100.0% 9.8%

2012 mill €

EURE

ST O

F EU

ROPE

North America

22.5%

EU45.2%

Rest of Europe

8.3%

Asia14.5%

Other top2.8%

Rest6.7%

World wine imports 2012: value

With different developments last year, North America, non-EU Europe and Asia were the most dynamic in €uros.

O.I.V.2013

Top 26 world importers of wine in terms of value (2012) account for 93% of world imports, divided into 5 major areas.

Top world Importers

TOTAL "OLD"

TOTAL "NEW"

Other exporters

TOTAL WORLD import

% total world

imports

Evolution in %

2011-12USA 2 625.2 1 240.7 73.0 3 938.96 15.8% 13.8%Canada 793.5 731.3 15.3 1 540.16 6.2% 12.1%México 96.6 50.8 0.9 148.30 0.6% 9.9%N. AMERICA 3 515.3 2 022.8 89.3 5 627.42 22.5% 13.2%

China 800.7 397.4 31.8 1 229.98 4.9% 18.5%Japan 937.7 276.9 10.6 1 225.15 4.9% 27.5%Hong Kong 517.3 144.6 145.0 806.97 3.2% -10.9%Singapour 278.5 71.9 19.3 369.70 1.5% 7.4%TOP ASIA 2 534.2 890.8 206.8 3 631.79 14.5% 11.8%

Australia 205.0 253.3 6.3 464.52 1.9% 21.8%Brazil 104.1 126.4 3.9 234.36 0.9% 10.6%OTHER TOP 309.1 379.7 10.1 698.88 2.8% 17.8%

Other importers 1 026.1 437.9 206.4 1 670.3 6.7% 9.9%WORLD TOTAL 17 110.6 6 325.2 1 559.4 24 995.2 100.0% 9.8%

OT

HE

R

MA

JOR

2012 mill €

NO

RT

H

AM

ER

ICA

ASI

ANorth America

22.5%

EU45.2%

Rest of Europe

8.3%

Asia14.5%

Other top2.8%

Rest6.7%

World wine imports 2012: value

With different developments last year, North America, non-EU Europe and Asia were the most dynamic in €uros.

O.I.V.2013

In regards to volume of imports, the EU remains the largest wine & must buyer despite a decrease in 2012, as opposed to North America and Asia.

Major groups (importers’ perspective)

North America 1,589 mill Ltrs 16.7% of total

Evolution 2011/2012:

11.9%

EU 5,293 mill Ltrs 55.8% of total

Evolution 2011/2012: :

-3.9%

Other Europe 763 mill Ltrs 8% of total Evolution

2011/2012: : -0.7%

Asia 738 mill Ltrs 7.8% of total

Evolution 2011/2012:

12.5%

O.I.V.2013

Perspectives and trends

Decline of surface areas (and production): will this trend continue? (Slight) recovery of world consumption: notably outside Europe, the evolution is a positive one although 2008 levels have not yet been met. Decrease in available volume of export resulting in a reduction from the bulk wine, particularly for European producers.

O.I.V.2013

Thank you for your attention

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