According to a press release on the economic situation, Verband Deutscher Prädikatsweingüter VDP (Association of German Prädikat Wine Estates) members were able to increase their turnover to 489m euros in 2022. In the previous year, the association had estimated the value from a member survey at 444m euros. This means that on average a VDP member winery has a turnover of 2.45m euros The increase in volume was even greater than the increase in value, rising from 33 million to 39 million 0.75-liter bottles.
The VDP adds that prices have not yet risen in line with production costs. For the most part, prices had increased by a maximum of €1 at each level of the quality pyramid. It is to be expected that "many wineries will be forced to adjust prices in 2023 in order to meet the challenges of cost development".
VDP strong in exports
Exports by VDP wineries have recovered. Their share of sales rose from 21% to 27%, returning to pre-pandemic levels. The VDP's main export markets are Scandinavia (especially Denmark and Norway) and the USA. China has been in decline since 2018.
Important domestic market
In Germany, cellar door sales remain a central pillar of the businesses, accounting for 30% of the volume. Catering and specialized trade remain stable, accounting for 26%, while cooperation with grocery retailers decreased. The share of VDP wineries involved in the food retail trade had fallen by 1% to 9%. Furthermore, wineries achieved an average of 12% of their sales through their own web shops.
Sufficient volume
With a significantly higher average yield of 62 hl/ha, the VDP members will have almost as much wine available as they last had after the particularly large 2018 vintage with 71 hl/ha. In 2021, the average was 53 hl/ha.
"We are grateful that even in difficult times our craftsmanship is valued and our terroir-driven wines are in high demand. The restrictions, but also the clear profiling of the last few years are now paying off. Nevertheless, we are concerned about the overall economic situation, especially in German viticulture as a whole. There are enormously increased material and labor costs as well as increasingly stringent regulations in markets where demand is declining. We are all the more convinced that high-quality wines of origin from our wine-growing regions are a great success and defy any interchangeability," said Steffen Christmann, President of the VDP.
VDP more organic than sustainable
The VDP also published figures on the progress of its sustainability offensive. 43 wineries have already obtained a sustainability certificate, representing more than one-fifth of all wineries. With a 34% share of the vineyard area, there is a disproportionately high representation of large wineries. 76 wineries are certified organic, representing 40% of the vineyard area. CG
