.
German per capita wine consumption is 22.9 liters (both wine and sparkling wine) in midyear 1997/98 with 9.9 liters in foreign wines, however, an increasing number of households frequently buy and consume wine. This is surely a solid base for further growth. Due to climate and geographic position, annual German wine production is confronted with high fluctuations in quality and quantity. After a series of years with low harvests, the German wine industry lost market share to competitors, since it could not fit the retailer needs.
German Beverage Consumption, Liter per Capita.
1996 1997 1998 1999.
Alcoholic beverage 161.3 160.3 156.3 156.3.
- Beer 131.9 131.2 127.5 127.5.
- Wine 18.3 18.1 18.1 18.
- Sparkling Wine 4.8 4.9 4.7 4.9.
- Spirits 6.3 6.1 6.0 5.9.
The German wine market developed rapidly in 1998. This positive development was based on a growth in red wine that is very popular in Germany. Sales of red wine grew disproportionately until mid 1998. Particularly countries like France, Spain and Italy but also other countries, as Bulgaria, profited from this growth.
The German market for beer, wine and distilled spirits is increasingly split between inexpensive and premium branded alcoholic beverages. German consumers spend approximately $196 billion annually on food and beverages. One third of this amount is spent in restaurants, canteens and other premises where food and beverage are served. The remaining two-thirds of the $196 billion are spent in retail outlets, e.g., supermarkets. In 1998, Germany's food and beverage retailers had a turnover of $135 billion. .
This sector, food and beverage retailing is subject to, and this is one the rise, to a small number of retailers. Top ten food and beverage retailers accounted for 84% of the national sales. Due to such an overwhelming market share controlled by top 10 retailers, local shops are giving way to large hypermarkets. Furthermore, selling food over the Internet is increasingly being used as an alternative.
