The Dutch wine market is experiencing a notable shift as consumers increasingly reach for higher-priced bottles. Despite the Netherlands' reputation for competitive and low-priced wine, the average cost of a supermarket bottle has risen from €2.71 in 2007 to over €3.00 by March 2008. This trend reflects a broader change in consumer behavior and market dynamics.
The Dutch wine market is undergoing a transformation, with consumers increasingly opting for higher-priced wines. The average price of a bottle in supermarkets has risen from €2.71 in 2007 to over €3.00 by March 2008. This shift is driven by a combination of factors, including increased consumer willingness to pay more for quality and market adjustments. Industry experts predict that this trend will continue, with potential further price increases on the horizon.
According to Nielsen, a leading market research firm, the average price of a bottle of wine in Dutch supermarkets has seen a significant increase. Marten Suurmeijer, a senior consultant at Nielsen, notes that the average price rose to €2.82 between January 1, 2008, and August 8, 2008, compared to €2.68 during the same period in 2007 and €2.61 in 2006. This upward trend is expected to continue, with prices potentially reaching even higher levels by the end of the year.
Suurmeijer highlights two key changes in consumer behavior:
Frederik Wilbrenninck, a group buyer at Baarsma, confirms Nielsen's findings. He observes that consumers continue to purchase their favorite wines despite price hikes. For example, the price of Alsace Pinot Blanc at C-1000 increased from €3.69 to €4.19, a more than 10% rise, yet it remains popular among buyers.
Nielsen's study of 60 wines in broad distribution found an average price increase of 9% compared to the previous year. This indicates that consumers are indeed purchasing wines at significantly higher prices. While the duty increase on wine can be seen as a contributing factor, it has had mixed effects on different market segments.
Rudolf Bijleveld, managing director of on-trade specialist OudReuchlinBoelen, notes that the duty increase and other cost hikes have been passed on to the horeca (hotel, restaurant, and café) sector. The Dutch horeca has faced several challenges, including a smoking ban from July 1, 2008, poor summer weather, and reduced consumer confidence in the economy. According to CBS, these factors have led to a decrease in on-trade sales for the fourth consecutive quarter.
Both Wilbrenninck and Joris Snelten of DGS express concerns about potential further price increases for glass bottles later this year. Snelten points out that suppliers like Owen Illinois and Saint Gobain are not only raising prices but also refusing to supply each other's customers. This situation has prompted the industry to consider building a case with the European Commission.
The Dutch wine market is experiencing a significant shift as consumers increasingly opt for higher-priced wines. This trend is driven by a combination of factors, including increased consumer willingness to pay more for quality and market adjustments. While the on-trade sector faces challenges, the overall market is expected to continue evolving, with potential further price increases on the horizon.
For more insights on the Dutch wine market, visit Nielsen and CBS.
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