German wine: Making Waves

Germany is a small, mature wine producer and is also one of the largest importers of wine in the world. Christian Davis reports

German wines are coming of age in more ways than one. They have been dogged by the epithets “cheap and cheerful” and “cheap and sweet”, from years gone by, but discerning, knowledgeable buyers and consumers now know that Germany makes world-class wines, particularly (but not only) Riesling and Pinot Noir or Spätburgunder.

Ernst Loosen of Dr Loosen Estate in the Mosel, is a high-profile, and at times controversial, figure in the German wine trade. Asked about German wines’ weaknesses he says: “The difficulty for people to read the labels and the past errors of marketing it as cheap and sweet.” As to its strengths, he says: “Its versatility. Many wines claim to be good with this or that meal for marketing purposes, but with German wine you can find a match from the starter to the dessert that really works.

“I see Germany as a country that can offer the perfect style wine to the given market, and we are able to create slowly a trend for the other style – for example dry Riesling in traditionally sweeter markets. It is an exciting variety from dry to dessert style and everything in between, and in emerging markets that are just experiencing it for the first time it is very popular,” says Loosen.

Marian Kopp, managing director of premium Wurttemberg cooperative Lauffener Weingaertner, says: “German wine exports had suffered too long from the ‘bad days’ with the Liebfraumilch craze in the ’70s and ’80s. In the meantime, due to solid work by the German exporters and the wine institute, it has regained some good reputation, especially with its crisp Rieslings and delicate Pinot Noirs.”

David Motion is a well known figure in the UK/London wine trade. His Winery retailing business specialises in German wine. As to perceptions about German wine, Motion has strong views: “The prejudice that existed in the UK between the late 1970s and the present day simply doesn’t exist in Scandinavia and the low countries. Dry Riesling and Spätburgunder are found on all the top gastronomic restaurants’ wine lists and heavily recommended by their sommeliers.

“In the US Riesling trocken is hard to find, largely because the key German importers and writers are besotted by the sweeter styles. That said, the US market is not as fixated on residual sugar as the UK, so you do see them around. Spätburgunders are scarce. 

“Anecdotally I hear that German wine imports into the US and Japan have fallen from 2008, reported to be related to the financial crisis. Again anecdotally, China hasn’t started properly with German wine yet. India? Storage and knowledge are issues, volumes are tiny,” he says.

“Germany’s only weakness is nothing to do with the wine itself but an out-of-date lack of confidence within the trade,” claims Motion.

Kopp used to head up the Racke Group then worked in California promoting South African wine brand Golden Kaan before returning to Germany. He says: “About 52% of all wine consumed (domestically) by value is German wine. There is a stable, solid consumer base and, due to the market shortages in 2010, 2011 and 2013 the wine prices had gone up. Consumers accepted the price hikes as OK,” says Kopp

German Wine Institute marketing director Steffen Schindler takes up the theme. “Last year domestic sales of German wine increased by 2.5% compared to 2012. While we are still gaining back market share that was lost due to the smaller 2010 vintage, we have now reached the level of 2011 again,” he says.

“With just over 100,000ha of vineyards and an annual production of about 9 million hectolitres, Germany is a relatively small wine-producing country with a very large and competitive domestic market.”

He points out that Germany is one of the biggest wine-importing countries in the world at about 18 million hectolitres. So, wine consumption is more than twice as high as production.

“In terms of quality we are certainly among the top wine producers of the world,” says Schindler. “Due to limited yields our aim is not to export more but to export better quality wines and the increase in the average price of German wine globally in recent years demonstrates that we are on the way to achieving this.”

In terms of hectarage, German vineyards have hardly changed in 25 years. The planting trend, according to the institute, has veered towards the Pinot varieties, especially Pinot Blanc and Pinot Gris or, in German, Weissburgunder and Grauburgunder. The share of 64% white and 36% red wine varieties has not changed since 2006.

Things are more gloomy in the Mosel, Loosen reports. “Our region of the Mosel is on the decline. If you have ever been here you know how steep the vineyards are and for the low prices that some producers are only able get for their wines it is difficult to stay in business.

“If you are close to retirement and your children do not want to take over as it is too much work then the vineyard is either sold or left unattended. We have people asking us if we would like to take their vineyards. If the parcels are neighbouring our vineyards and are big enough, we still buy, but if they are in so many different places (a few vines here and a few vines there) that it just is not an option for us,” said Loosen.

Motion agrees. “Several growers we work with have bought more parcels in favoured locations as they become available. I do see parcels abandoned on the Mosel, although not in famous vineyards, as elderly growers feel they
are no longer able to work the very
steep slopes.” 

Bullish approach

But Motion is extremely bullish about German wines. “In my opinion, dry German Riesling is the finest dry white wine on the planet and Pinot Noir/Spätburgunder is right up there with Burgundy.

“In our shop dry German wines, 75% dry Riesling and 25% Spätburgunder, has grown to a third of our range and a third of our sales. Customers seek us out specifically for these wines.”

Patrick Langguth, international sales director of FW Langguth Erben winery, based in Traben-Trarbach, also agrees about declining vineyard ownership but he is, nevertheless, optimistic. Langguth has one of Germany’s oldest and best-known brands.

“German wines are very well received internationally and known for their authenticity, quality and fresh taste,” he says. “With our brand Blue Nun we have a long-time experience and long-standing tradition of classic German white wines and red wines sold in nearly every market on the planet. Innovation in packaging and design as well as new varieties such as lower-alcohol options, are our ways forward.

“German wine lovers are either connoisseurs of fine Riesling wines or people who like to drink wine that is fresh and fruity with lower alcohol. The main trends we see are authenticity of wines, diversity of regions and lower alcohol content,” says Langguth.

Motion has another spin: “Someone who loves food and wine and is fascinated by the sensuality, complexity and variety of German Riesling and Pinot Noir. Someone who thinks for themselves.”

Unsurprisingly, Reh Kendermann is equally bullish about German wine prospects. Kendermann claims to be the largest exporter of branded wines in Germany, specialising in branded business and premium own-label for the off-trade sector. Black Tower is the number one wine brand from Germany with sales of more than 14 million bottles last year around the world.

Managing director Nik Schritz, says: “The UK is undoubtedly our most established and successful market, with one in three bottles of wine sold in the German segment in the last quarter being from Reh Kendermann and with our 5.5% abv brand B by Black Tower outselling the lower-alcohol market leader in the week of Christmas 2013 (Nielsen MAT 4/1/14).

“We still see potential for further growth in our established markets – the UK and Scandinavia in particular. Moreover, Riesling has been booming in Norway for some time and we see a growth opportunity for our food-friendly drier style of Riesling,” he says.

Export sales director Alison Flemming MW, says: “In our leading export market, the UK, we continue to see outstanding growth of 6% volume and 8% value for Black Tower and 12% volume and 14% value for Kendermann against a declining off-trade market (Nielsen MAT 4/1/14), with our recent NPD Black Tower Pink Bubbly and B by Black Tower 5.5% making particular waves.”

She says Black Tower is also faring well internationally, particularly in Scandinavia and Canada. The brand is the best-selling German wine brand in Scandinavia, powered by a redesigned bag-in-box line. Black Tower White Bubbly is being launched simultaneously in Sweden and the UK. Kendermann hopes it will do as well as Pink Bubbly did past year.

Turning to sommeliers, Romain Bourger is head sommelier at The Vineyard at Stockcross in Berkshire, UK, a well-known wine-oriented hotel and restaurant. He says: “German wines are underestimated and are, for me, some of the greatest wines which age very well.

“In term of on-trade German wines have great potential. I realise more and more sommeliers love Riesling for example. I do too. For me it represents the wine identity of Germany, even if other grapes produce amazing wines. It is by that way that German wines are upcoming.

“Consumption is growing, very slowly though. It is rare to have a guest ordering a bottle of German wine straight from the list. What’s interesting is that, often, it suits the guest’s palate. Lots of young people would prefer a slightly sweeter style of wine. You can then easily recommend a Riesling Kabinett or Spatlese Trocken to them. If they want a light red, why not go for a Pinot Noir from the Ahr or Baden,” says Bourger.

Hand-selling

Michael Raebel is a sommelier at Pearl in London. He says: “German wines are still not selling by themselves. You need a sommelier to recommend those wines. It is easier to sell German wines to older people as they usually have more experience and knowledge. I usually find English customers very open-minded, besides the cliché that German wines are sweet, and the off-trade is not very helpful as you will find just sweet German wines in supermarkets.

“Most people think Germany is Riesling and are surprised to find high quality Pinot Noir, Pinot Gris and other grape varieties. Some of the grand cru Rieslings are quite expensive, but as prices mostly depend on popularity they could achieve higher prices in the future. The quality definitely justifies the cost, the same for Pinot Noir,” says Raebel.

“I believe German producers are missing out in specifying themselves. Rather than focusing on one wine to establish a name, such as Yquem, Petrus, Opus One, they are losing themselves in Qualitätswein bestimmter Anbaugebiete (QbA), Kabinetts, Spätlese, from different vineyards. 

“They should introduce vineyard classification like France. Erstes Gewächs and Grand Cru is the first step in the right direction but again too much diversity,” says Raebel.

“Food and wine pairing with German wines is as diverse as the styles Germany is offering. In general the sweeter styles go well with Indian and Chinese cuisine. 

“A few of my favourite pairings are pot au feu with an aged Riesling, or seared tuna with sour cherries and a Pinot Noir from Rheingau. Bouillabaisse with a powerful Riesling from red slate terroir,” he says.

As to exports, Loosen says: “The US and the UK are obviously established and Norway and Sweden as well. As far as up-and-coming markets, China is obvious, but it is not as easy as people think. Germany is many times forgotten as a market for German wine as we are such a large importer of wines from around the world. 

German consumers

“But for years now, German wines are more and more appreciated by German consumers. Last year’s sales statistics showed the first time that more German wines had been consumed in Germany than imported wines.”

Langguth says: “Established markets are certainly the US, the UK and Scandinavia, while we experience best potential still in the US as well as in Asia. With our two major wine brands Blue Nun and Erben, we offer a diversity of classic German white wines to contemporary German red wines, such as our Erben Pinot Noir. The response to these wine styles is encouraging for us.”

Schindler nails it: “The US, Netherlands, the UK and Norway are hugely important export markets for Germany. These markets all vary in terms of style and size – the US is very much Riesling led. The UK is currently experiencing double-digit growth above £5, and in Norway, every third bottle of white wine comes from Germany. 

“Then we have a whole range of long-established export markets such as Sweden, Finland, Canada and Switzerland, where German wine has a very sound fan-base. On top of that we are seeing a growing demand for our wines from Asia, especially in China and Hong Kong but also in Japan, Korea and Singapore.

“We think it’s fair to say that in all markets, the shift we’re seeing is towards growth at the top end with quality German Riesling driving this shift, and a growing demand for our dry and our red wines,” says Schindler.

Bourger concludes: “It takes someone to recommend the wine but I think in a few years German wines will be more successful.”