Austria

The world’s 17th biggest producer

The Austrian vineyard

• 48,900 hectares of vines
  
  
• 30,000 producing entities, only 2,500 of which have vineyards of more than 5 hectares and 18 have vineyards of more than 50 hectares.
  
  
• Average production of 250 million litres of wine.
  
  
• Vinification often carried out at the property itself.
  
  Vine-growing regions
  
  
• Weinland Osterreich (Lower Austria and Burgenland): 44,600 hectares (or 19.79% of the vine-growing area). Lower Austria makes 62% of the wine and Burgenland 30%.
  
• Styria: 3,820 hectares (6.77% of the vine-growing area).
  
• Area surrounding Vienna: 500 hectares.
  
• Bergland Osterreich: 34 hectares.
  
  Principal grape varieties
  
  Essentially, local varieties.
  
  Red varieties: 37.64% of production. The most frequently planted is Blauer Zweigelt (9%), followed by Blaufrankisch.
  
  White varieties: 62.36% of production, with Gruner Veltliner (37% of the vine-growing area), Welschriesling and Rheinriesling.
  
  It should be noted that French varieties (Cabernet Sauvignon and Merlot) are growing in importance, especially in Styria.
  
  The entities involved in the process
  
  
• The OMV (Osterreichische Weinmarketing Service gmbh): coordinates the advertising of Austrian wine.
• Weinakademie Osterreich GmbH. This institute responds to the increasing demand for information from Austrian consumers who want to find out more about wine.
• Verband der osterreichischen Sektinudstrie. A federation of Austria’s large producers of sparkling wines.
  
  Wine consumption
  About 2.5 million hectolitres a year. 53% of consumption takes place at home. 87% of the wine consumed is Austrian. French wines account for only 3% of national consumption. 77% of the bottles of wine sold originate from Austria.
  
  Wine imports: Italy leads, followed by Germany and France (3rd biggest in volume but 1st in value).
  
  Legislation
  
  Since 1st April 2005 Austria has eliminated the specific tax charged on champagnes and sparkling wines, improving the positioning of sparkling wine prices.

The market for sparkling wines

Austria’s total production of sparkling wines is estimated at 15 million bottles, or 11.25 million litres, in 2003. The principal producing regions are Vienna, Lower Austria and Burgenland.
There are 42 producers of sparkling wines, five of whom are large. The three principal local brands of sparkling wine are Kattus/Hochregi, Schlumberger and Henkell. These three account for 8% of the market share.

The grape varieties used are Gruner Veltliner, Rheinriesling, Welschriesling, Chardonnay and Pinot Noir. Production methods are based on fermentation in the bottle. Producers are increasingly moving towards producing lightly sparkling wines of the “fizzy” type.

Austrian imports of sparkling wines represented 12.3 million litres for a value of 36.2 million euros. Imports of lightly sparkling wines from Italy increased. Consumption of sparkling wines is about 24.8 million litres.

• 54% of consumption represents sparkling wines. Sekt, a locally produced sparkling wine, dominates the market for this category.
• 46% represents lightly sparkling wines (Frizzante, Prosecco) - there has been a steady rise in the consumption of lightly sparkling wines (20% on average).
• Champagne is drunk occasionally (1 million bottles a year on average). Its image is that of a luxury product. The market is dominated by the large brands.
  Price is a determining factor in buying sparkling wine. The average price of Sekt is 5.99 euros compared with the price of champagne which ranges between 20 and 40 euros.
  
• Good prospects for sparkling wines. Experts are forecasting that sales of sparkling wines will increase by 3% and sales of lightly sparkling wines will stagnate at a high level.
  
  Development potential
  
• Austrian vineyards are not densely planted. This is characterised by a cultivation method called LENZ MOSER with a distance of 1 to 1.20 m between each plant and closely packed rows to improve the quality of the vineyard.
• New vineyards (about 1,000 hectares a year) are planted in narrow rows (90 cm to 2.5 m). Average planting rate at present: 4,000 plants per hectare.
• White varieties are being uprooted to be replaced by red varieties. Conversion sustained by European subsidies. 7,500 hectares of vines have been reconverted.
• Restructuring the industry: small operations are being closed, the vineyards being incorporated into bigger estates, and some operations are being taken over.
• Considerable need for vine stocks. On average, 12 million vines have been grafted per year. A promising market supported by European subsidies.
  
  Languages used: German, English.
  
  Source: Note by the Economic Mission - February 2006.