The importance of bulk wine in the global markets

In a year shadowed by the lowest global wine harvest in six decades, as estimated by the International Organisation of Vine and Wine (OIV), the wine industry gathered at the Amsterdam World Bulk Wine Exhibition 2023. This event has gained particular significance due to the reduced wine production, sparking renewed interest and pressure in the bulk wine market. Notable buyers from retail, distribution, and import sectors are keenly seeking to secure wine supplies for the coming months. A specific focus has been placed on lower-alcohol wines, primarily to cater to the United Kingdom market.

Industry expert Angela Mount, a former leading supermarket buyer, engaged with her colleagues to dissect the opportunities and challenges in the global bulk wine market. The event, aptly titled "Where Wine Brands are Born," served as a pivotal meeting point for the buying and selling of wine on a global scale.

The bulk wine market has undergone a radical evolution over the past 15 years, positioning itself at the forefront of industrial development. This change spans from the producer to the final consumer, including supermarkets, retail stores, hospitality groups, independents, and regional wine traders. Reports indicate that bulk wine now accounts for over 34% of global wine sales in terms of volume, though its value is considerably lower, at around 7%.

This market shift has been profound; the bulk wine market is now critical for the entire industry, enabling retailers, brand owners, and the hospitality sector to offer exclusivity, differentiation, and hit key price points. The benefits in terms of cost savings and sustainability are also significant.

This year's Amsterdam World Bulk Wine Exhibition (WBWE) featured an impressive lineup of seminars and panel discussions, with participation from leading industry professionals. Key topics included alternative packaging, sustainability, the role of the bulk wine market in Canada, and opportunities in the low and non-alcoholic wine sector.

WBWE's marketing director, Cristina Miranda, highlighted the fair's importance as a space for brand creation and development with a consumer-centric approach. This year's highlights included the revolution in alternative packaging, the growth of the non-alcoholic sector, and exploration into de-alcoholized wines.

The shift in the importance of the bulk wine market has been striking. Several supermarket buyers emphasize the advantages of bulk shipping, including cost efficiencies, sustainability, carbon footprint, and availability and replenishment at store and depot levels. The quality of bulk-shipped wine has improved considerably over the last decade, and retailers are adopting strategies reflecting a commitment to sustainability.

However, there is a counter-argument in the debate over bulk shipping, particularly regarding sustainability. Some importers and producers advocate for bottling at the source to support local economies, especially in countries grappling with high unemployment and severe poverty.

Buyers and importers are observing trends like the increase in mid-range wines shipped in bulk and a growing focus on alternative packaging. The WBWE is emerging as a key event for consolidating relationships and exploring new opportunities, adapting to market changes and discovering innovations in packaging and producers, particularly in the New World.