Brussels, 09/01/2015 (Agence Europe) - An independent study ordered by the European Commission sets out a number of ideas for improving the competitiveness of EU wines. The recommendations go from promotion on non-traditional markets to relaxation of the requirement that the wine is bottled in the area of production and a single quality indicator.
Between 2000 and 2012-2013, EU wines “improved their overall competitive position” in the world market in value terms, while maintaining it in volume terms “despite an overall loss of market shares” (in value and volume). From this starting point, the study carried out by the Italian Cogea (Consulenti per la gestione aziendale, Rome) proposes a number of ways to improve the sector's competitiveness.
Improving market access. The study, described as “good” or even “excellent” by DG Agriculture, suggests encouraging the wine sector to make use of the funds of the promotion measure of the wine CMO (common market organisation) to break into “non-traditional markets, such as the Republic of Korea, Algeria, the Philippines and Mexico” and give priority, to use of rural development funding and the investment measures of the wine CMO “for structural and organisational adaptation” of export-oriented wineries.
The study says it would be desirable to speed up/start up bilateral agreements between the EU and partner countries in relation to wine. The partners should not only be the traditional ones with which agreements still are not in place (e.g. China, Russia) or negotiations are currently ongoing (e.g. Japan, US), but also other non-traditional markets (e.g. Philippines). The study says that, to improve market access, there is a need to “overcome the self-imposed constraints of many production protocols of European PDO-PGI wines (i.e. obligation to bottle wines within the production area), at least for wines not in the Top range”.
Adapting the product. Adapting the EU product to the market is also recommended by the study. It argues that, with regard to the Top range and Ultra premium segments, it would be appropriate to combine the acronyms used by different member states into a single acronym to be used worldwide, associated with a mandatory logo, as has been done in the organic sector.
The study also says that, with regard to wines in the Commercial and Super premium segments, for which the “Origin of the product” is more important than PDO-PGI labels, it would be appropriate to introduce into EU regulations the indication of the country/region of origin (for example, Italy or Tuscany).
The study notes, too, that “taking into account the increasing complexity of segmentation expected in the future, it does not seem prudent to focus only on high quality wines (PDO-PGI), neglecting wines in the lower ranges for everyday consumption by lower-income families”.
Similarly, given the demand potential for low or zero alcohol wines, “it would be beneficial to ensure a clear legal framework for such products”, the study states, arguing that rural development and CMO funding be used to “encourage the investments needed to develop and implement the innovations demanded by different markets”. (LC)