International Trends - Europe
Navigating appellations Words Felicity Carter The French were on top of the world. Until they weren’t. In the late 1980s, their ever-reliable British customers were suddenly buying less. After centuries of loyalty, the Brits were choosing the uncomplicated, reliable wines from the New World over the difficult, unreliable wines of the Old. Leading the charge were the upstart Australians, whose technically perfect wines made from fully ripe grapes were an unbeatable offer. It was an assault on centuries of tradition and one that forced European wineries to invest in technology, winemaking knowledge and better viticulture. Now, they’re about to return the favour. Australians have been buying increasing amounts of imported wines in the past decade, sure, but that trickle is about
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to become a flood. And if retailers and educators understand how to sell them, it could be good news for everybody – including Australian producers.
WHY NOW?
The Europeans need new markets, urgently. Not only has Trump has slapped 25% tariffs on French and German wines, making the lucrative US market a more difficult place to do business, but the pandemic has had a catastrophic effect on the international on-trade. Up to 50% of the wine market has simply vanished. And word has been going around that not only do Australian wine buyers know what they’re doing, but they also pay fair prices (which is rarer than you might think). Not only that, but consumers are actively
looking for lower-alcohol, more refreshing wines, which Europe can produce at keen prices. For retailers looking for market share, the wines of the Loire Valley or Picpoul de Pinet are a major opportunity. There’s only one small snag: the European appellation system is incredibly difficult for consumers to navigate. There is, fortunately, a way to deal with this – do what the British retailers do.
THE EUROPEAN APPROACH
Australians have a longstanding belief in the sophistication of Europeans, imagining that they are wine knowledgeable and able to navigate complexity with ease. Nothing could be further from the truth. With rare exceptions, consumers across the continent drink by proximity. Those who
