Required Report - public distribution

**Date:** 12/29/2005

**GAIN Report Number:** GM5044

GM5044

**Germany**

**Wine**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)William W. Westman

U.S. Embassy

**Prepared by:**

Dietmar Achilles

**Report Highlights:**

U.S. wine sales to Germany in terms of value increased slightly by 0.6
percent to \$77 million in 2005, although the total volume decreased
nearly ten percent to 430,000 hectoliters (hl). In 2004, American
exporters shipped 480,000 hl of wine to Germany. Almost two thirds were
in bulk. In 2005, the German wine crop was 10 percent smaller than last
year\'s harvest. The smaller crop and lower wine stocks are reportedly
pushing wine prices up at the producer level. German per capita
consumption reached record highs in 2004 (20.1 liters) although it
appears to be leveling off in 2005

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Berlin \[GM1\]

\[GM\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[Consumption 4](#consumption)

[Trade 7](#trade)

[Stocks 8](#stocks)

[Policy 8](#policy)

[Marketing 8](#marketing)

[Statistical Section 11](#statistical-section)

# Executive Summary

In 2005, German vintners are expected to harvest 9.1 million hectoliters
(hl) of grape must, which is about one million hl less than in 2004.
This wine is expected to be of average or better quality, but not
comparable with the so-called "century wine" of 2004.

Grapes for wine are harvested from a productive area of 98,300 hectares,
which are spread over 14 different wine growing regions. The predominant
wine regions are in the states of Rheinland-Pfalz, Baden-Wuerttemberg,
and Hessen. Due to climate and geography, German wine production can
vary significantly in quality and quantity from year to year. However,
strict maximum harvest regulations based on the EU wine regime should
limit fluctuations in annual production.

Germany is predominantly a white wine producing region accounting for 64
percent of planted area. However, due to consumer preferences, vintners
are gradually increasing their production of red wines. In 1991, only 20
percent of the grapes were of red varieties compared to 36 percent now.
About 50 percent of the re-plantings are currently in red wine
varieties. Based on area, Germany is the 17th largest wine grape
producing country in the world and ranked eighth in 2003 in terms of
wine production, just recently surpassed by Australia.

Total wine consumption in MY 2004/2005 (Aug/Jul) is estimated at 20.1
million hl, 62 percent sourced from imports. Germany is the world's
biggest importer of wine, predominantly from other EU countries. U.S.
exports of mostly high quality red wines had been growing steadily until
2004 and but dropped again by about ten percent in 2005**.** Total U.S.
wine shipments to Germany amounted to 480,000 hl in CY 2004 compared to
450,900 hl in 2003. On a value basis, the U.S. had been the largest
non-EU supplier of wine in Germany until CY 2003. Strong competitors for
U.S. exporters are vintners from Chile, Australia, and South Africa, who
-- in value terms -- sell more wine to Germany than the United States.
Due to the strengthening of the Euro versus the dollar, New World wine
shipments to Germany have increased.

In CY 2004, Germany exported about 2.8 million hl of wine, mainly to
other EU countries. It exported about 7.2 percent of its wine exports to
the United States, or 200,400 hl. In its export markets, Germany is
promoting Riesling wine for the medium and higher price markets. The
German Wine Institute spent about Euro 3.67 million (\$3.29 million) on
export promotion in CY 2001.

Note: In recent years the U.S.\$/EURO exchange rate has been as follows:

> 2000: \$1 = Euro 1.0827 2003: \$1 = Euro 0.8840
>
> 2001: \$1 = Euro 1.1166 2004: \$1 = Euro 0.8039
>
> 2002: \$1 = Euro 1.0575 Oct 2005: \$1 = Euro 0.8323

# Production

In the fall of 2005, German vintners harvested about 9.1 million hl of
grape must, which is about 1 million hl less than in 2004. Vintners
attributed the decrease to adverse weather conditions. However, first
impressions are that this year's wine quality is of average or better
than average quality but not as good as last year's century wine.

In 2004, Germany was the EU's 6th largest wine producing region with
102,241 hectares under wine grape cultivation. It was also the world's
7th largest wine producer with an annual production of approximately
nine to ten million hectoliters. There are 14 different growing regions
in Germany. The names of these regions are used for region of origin
labeling. The commercial production of wine beyond these designated
areas is not permitted. Based on the rules of the EU wine regime, the
German wine law allows regional authorities to stipulate which grape
varieties can be produced in the production regions. In 2004, 64 percent
of the grapes produced in Germany were white wine varieties. Six years
ago, white wine vines covered 77.4 percent of Germany's wine production
area. The leading Riesling and Mueller-Thurgau varieties are grown on
about 35 percent of the grape area. White Burgundy, Chardonnay, and
Rulaender grapes are growing in popularity, while the planting of the
Mueller-Thurgau variety is decreasing. Red wine is only planted in about
36 percent of the grape area, but its production area is growing by
about 1,500 to 2,500 hectares every year. The popular red grape
varieties are Blue Burgundy, Dornfelder, and Blue Portuguese. For
re-plantings, the preferred grapes during the past five years have been
the Dornfelder and Blue Burgundy varieties (see Table 3.)

To assist vintners in responding to consumer demand, the EU offers a
restructuring program for vineyards. During MY 2004/05 (Aug/Jul) the EU
subsidized the uprooting of unwanted grape varieties in Germany and the
subsequent replanting of modern varieties. These subsidies totaled Euro
12.7 million (U.S.\$ 10.2 million). For MY 2005/06, the EU granted
restructuring subsidies of Euro 12.5 million for a restructuring area of
1,998 hectares. This program is available to all the wine-producing
countries within the EU. Under this program, a total of 1,975 ha in
Germany were replanted with new grape varieties. The varieties
Mueller-Thurgau, Kerner, Bacchus, Morio Muskat or other high yielding
varieties are no longer preferred by German consumers. Also, subsidized
replanting with the high yielding red Dornfelder variety was stopped in
MY 2001/02 since this risked meeting maximum yield limits stipulated by
production region and quality level.

Four consecutive years of lower wine production have led to price
increases in 2004 and 2005. The exception has been the prices for
Dornfelder, Germany's top selling red wine for the past seven years,
which have dropped considerably because more red wine is being produced
in Germany. During the past two years, vintners selling their wine in
bulk experienced the highest profit margins. However, this group also
suffered the highest losses in prior years. Bulk wine is primarily
marketed through the food retail chains and this market channel is
extremely price competitive. Total bulk wine sales represent about 40
percent of German wine production. Vintners who market their wine
directly generally have more control of their product pricing compared
to bulk wine producers. During previous years, producers of bulk white
wine had problems selling to sparkling wine producers. These companies
still prefer to import their bulk wine from low-priced Mediterranean and
eastern European sources. The disadvantages faced by domestic vintners
are their small operation size and inability to offer sufficient volume
for sale in retail chains. A direct marketing strategy may be a
marketing tool that helps overcome these disadvantages.

## 

# Consumption

The economic situation in Germany has not improved significantly from
2004. After almost stagnant growth during recent several years, GDP
growth for 2006 is still expected to be only 1.2 percent. High energy
prices, high unemployment, and high budget deficits are adversely
affecting domestic demand. Recently published economic indicators,
however, point to a somewhat more optimistic direction for 2006.
Turnover numbers in the hotel and food and beverage sectors have been
relatively stable in 2005. These sectors hope that the 2006 World Cup
will inspire additional demand for their respective industries.

Over the past 15 years, wine has been gaining in popularity among German
consumers (see Table 4). Wine consumption by volume has not been
affected by Germany's negative economic conditions. Wine consumption
actually grew while demand for all other alcoholic beverages decreased.
Good product quality, creatively designed bottles, and labels have made
wine more attractive to all consumers. Per capita consumption in 2004
was estimated at about 20.1 liters. However, sparkling wine demand
dropped approximately twenty percent after the millennium year. In 2004,
a consumer panel revealed that 67.5 percent of German households are
occasionally buying wine. Although this is the lowest level during the
past four years, it indicates that the vast majority of Germans still
appreciate at least a sporadic glass of wine.

Wine consumers are generally not affected by economic difficulties,
thus, it makes it easier to market to this segment Studies done by the
Deutsches Weininstitut (DWI) indicate that the domestic wine market
follows the general purchasing behavior of the majority of consumers.
For example, German customers primarily purchase items by price and
quality differences come in second.

![](media/image2.wmf)

DWI studies also found that food retailing is increasingly handled by
price aggressive discount retailers. These studies also revealed that
imported wines are being placed on discount shelves in larger numbers. A
majority of domestic wines are still sold in supermarkets, which usually
offer a much wider variety of wines compared to discount chains. As a
result, imported wines are selling on average at somewhat lower prices
compared to domestic wines. Food discounters have excellent marketing
staffs, who know what their customers want and have developed a very
good reputation in the market. Due to the large volume of good wine
available on the global market, these discounters have managed to import
the desired wines in bulk and are bottling them locally. Consumers do
not appear to necessarily care about the brand name and are more willing
to buy generic products or discount brands.

Average prices for domestic wines in the first half of 2005 were
recorded at Euro 2.58 per liter (US\$ 3.10) and Euro 2.41 per liter
(US\$ 2.90) for imported wines. Due to the rising market share of hard
discounters in the wine market, the market segment of a maximum two
Euros per bottle is growing significantly.

An important trade channel for domestic wines is direct sales between
the vintner (or the cooperative) and the consumer. About 36.5 of
domestically sold German wines are sold directly. These wines sell at
higher prices than retail wines and represent 46 percent of market sales
(in value terms). The long-term trend, however, indicates that this
trade channel has been continuously losing customers. Vintners claim
that this trend reversed in 2004 and 2005 as younger customers are
finding their ways to the vintners and make it a shopping event to
search for their personal vintner.

In Germany, the majority of wines are sold by production region and by
grape variety. To overcome the labyrinth of thousands of different
regional identifications and quality classes, the DWI developed two new
wine categories, "Classic" and "Selection". (see GAIN Report GM0041).
Vintners contract with DWI for the use of the Classic and Selection
label. DWI also controls the production methods and the quality of the
wine sold under these labels. In 2001, the first Classic type wines were
put on the market numbering somewhere between 20,000 to 30,000 hl. In CY
2004, the market penetration of "Classic" labeled wines was rather
limited with an estimated volume of only 120,000 hl, which is 1.04
percent of total German wine production. The objective of the Classic
line was to improve the quality of bulk wine and, in turn, the image of
German wines. The Classic label focuses exclusively on dry wines. The
target price range for Classic wines is between EUR 3.50 and EUR 5.00
per bottle of 0.75 liters. The target price for Selection wines is
between EUR 7.50 and EUR 15.00. The target of this product line is not
only the domestic market but also the export market.

Per capita wine consumption has been rising over the past ten years from
about 18 liters to the present level of slightly more than 20 liters.
The Lebensmittelzeitung, a weekly food retail magazine, fears, however,
that this positive trend might have come to an end in mid 2005 as retail
sales dropped by three percent. The only exception is sales through the
hard-discounter Aldi. Sherry and Portwine sales are also down.

Looking at wine consumption by region within Germany, it is notable that
people in the eastern part of the country consume significantly less
wine than the more affluent population in the West. However, more
wealthy clusters in and around the city of Leipzig and along the
coastline to the Baltic Sea may provide some marketing opportunities.

With respect to taste, German consumer preference for dry and semi-dry
wines is steadily growing. Industry data collected in 2000 indicate that
54.4 percent of the German quality label wines were of the dry/semi-dry
market segment, compared to 35.9 percent fifteen years before. Trade
reports indicate that this has not changed five years later.

The most popular bottling size for Germany is the 0.75 liter bottle.
Wines sold in one liter bottles are often of the lower price segment or
sold directly through the vintners. About 94 percent of German wines are
in glass bottles, of which about 27 percent are returnable. The industry
has recently looked into packaging alternatives for glass bottles and
also tested PET (plastic) bottles, but concluded that PET is not a
packaging alternative for wine in Germany. An alternative to the glass
bottle is the five-liter bag-in-the-box system, which is frequently used
for French wines.

Another point of interest is the issue of corking. According to an
opinion poll among the German food and beverage sector, about 28 percent
prefer screw caps, 56 percent natural cork, and 6 percent plastic cork.
In the same opinion poll, a majority of the respondents preferred a
corked wine for a higher-priced wine. In the retail sector, 90 percent
of the wine is corked.

Sparkling wine consumption in Germany reached a temporary high of 4.9
liters per capita in 1999 due to the millennium celebration**.** Since
then, demand for sparkling wine (including champagne), has fallen to 3.8
liters per capita in 2004. Preliminary reports for 2005 do not show a
reversal of this downward trend.

Much of this information was extracted from market reports of the
Deutsches Weininstitut.

# Trade

Germany is the world's most important import market for wine. About 54
percent of Germany's wine consumption is comprised of imported wine.
Total imports in CY 2004 increased by 8 percent to 13.4 million hl
compared to 2003. However, during the first eight months of 2005, German
wine imports dropped by about 2.3 percent to 8.6 million hl. According
to official German trade statistics, the import reduction in 2005
occurred predominantly in imports from Spain and France with price being
the main factor. The big winner in the wine import market in 2005 is
Italy, which increased its export shipments by about 15 percent to 3.1
million hl. During the past four years, Spain had been increasing its
sales to Germany, but during the Jan/Sept. 2005 time period, Spanish
wine sales dropped by almost 40 percent to 1.3 million hl.

Imports from southeastern European countries such as Bulgaria,
Macedonia, Romania, and Cyprus are marketed at below 50 percent of
normal import prices. These wines are primarily used as base wines for
the production of sparkling wines. These countries exported about
600,000 hectoliters of wine to Germany in 2004.

Of significantly growing importance to the German wine trade have been
New World wines. These wines comprised of 12.8 percent of all German
wine imports in 2004, compared to 4 percent in 1999. In 2005, sales from
Australia improved by about 20 percent to 2.9 million hl (Jan/Sep).
South Africa also increased its 2005 sales to Germany from 1.9 to 2.9
million hl during the Jan/Sep period. While prices for U.S., Australian,
Argentine, and South African wines are noticeably higher than the
average import price, Chilean wine is marketed less aggressively.

Average prices for wines from the United States have fallen during the
past five years, which is a result of the shift from shipments of
bottled wine to bulk shipments. In 2005, average prices for U.S. wines
shipped to Germany increased again by more than ten percent. The
strength of the Euro currency compared to the US dollar made it possible
for U.S. wines to be marketed through the mass retail system, thus
increasing its sales potential. Despite the recent appreciation of the
dollar in relation to the Euro, importers are quite optimistic that the
situation will not hinder exports to Europe noticeably.

U.S. (mainly California) and other New World wines have increasingly
captured space on many of the retail shelves. These are no longer exotic
products. More importantly, they are selling at above average prices
(except for Chile) and are of wine varieties that are popular with
German consumers. Retailers like to advertise wines of international
origin in their weekly offer bulletins. As a result, consumers are more
familiar with these wines, but the downside is that these wines need to
be very price competitive. About 80 percent of the imported U.S. wines
are high-quality red wines. U.S. red wine shipments to Germany make up
for 4.5 percent of total red wine import volume or 3.3 percent in terms
of value. In previous years, the market share of U.S. wine in terms of
value was higher than the market share in volume. This changed because
of the transition from bottled to bulk wine exports. The portion of U.S.
wine shipped in bulk to Germany is now about twice as high as the volume
shipped in bottles.

California wines are relatively well known in Germany and German
consumers expect high quality when they purchase California wines. Wines
from other regions or states in the U.S. are not yet well known. Total
U.S. wine exports to Germany amounted to 480,000 hl in CY 2004. In 2005,
trade statistics show U.S. wine exports down about ten percent in volume
(see Table 7 ff.). In terms of value, U.S. exports are increasing
marginally mainly due to sales of higher priced bottled wine.

German wine exports amount to 20 to 25 percent of domestic production.
In 2004, Germany exported 2.8 million hl, the same volume as in 2003. In
terms of value, German exports increased by ten percent to US\$ 615
million. The positive export trend for German wines continues in 2005 as
preliminary trade figures show a five percent increase in export volume
and 15 percent in value. The leading markets for German wine exports are
the United Kingdom, the Netherlands, and the United States. Germany is
working hard to improve its image as a supplier of quality wines. The
export marketing is focused primarily on dry Riesling wine. The German
Wine Institute spends about EUR 3.5 million annually on export
promotions

# Stocks

German wine stocks in 2005 amounted to 13.156 million hl, which is
500,000 hl more than in 2004. Compared to four years ago, this
represents a noticeable reduction in surplus stocks of 3.4 million hl.
Of the 13.2 million hl of stored wine, about 53 percent are held by
vintners and 47 percent are in trade storage. Approximately 63 percent
of the stored wine is white wine and the remaining 37 percent is red
wine. Roughly 75 percent are German wines and 25 percent are imported
including those from EU countries. Storage build-up took place in both
the domestic and imported sectors. More importantly, the reduction of
these surpluses (decrease of 3.3 million hl) could translate into a more
lucrative market and better prices for German businesses.

# Policy

The German government has voiced the strongest opposition in Europe
against the U.S./EU wine agreement, which was finally approved by the EU
Agriculture Minister Council on December 20, 2005. The main issue for
Germany is the omission of mutually recognized wine making practices set
by the International Wine Office (OIV). The Germans are also demanding
stricter rules for the use of semi-generic, traditional expressions, and
an extended list of protected geographic indications. Another core issue
for the German vintners is their appeal to have all major wine making
countries become members of the OIV. The OIV sets the framework for good
and accepted wine making practices. It is feared that the United States,
which is not under the supervising authority of the OIV, has the
potential to approve enological practices, which allow the manufacture
of so-called artificial wines. Numerous media reports during the past
several months stigmatized wine makers from New World Wine countries, in
particular the United States, as a potential threat for the good image
of the "traditional" wine. German vintners are fighting for the
preservation of "authentic wines" and oppose any attempts to approve the
use of the "spinning" cone column or the adding of water. German
vintners are demanding a new regulation that requires a different label
for wine not made according to OIV approved rules. In recent press
interviews, Germany's Federal Minister for Agriculture insisted that the
EU ban wines from the EU market if they are not made according to EU
enological rules.

# Marketing

Effective November 25, 2005, all wine products must have labels
indicating their sulfur level if it exceeds 10 milligrams per liter.
This new requirement is a result of EU directive 2003/89/EC that governs
allergen labeling in alcoholic beverages. For further information see
http://www.useu.be/agri/label.html#Allergen

Sales of California wines have been very successful in Germany during
recent years. California wines have an excellent reputation in the
German market and so far consumers appear to be willing to pay above
average prices for these wines. However, since they are no longer a
novelty in the German market, growth rates may level off. They have to
compete intensively with other New World wines, in particular wines from
Chile, South Africa, Australia, and New Zealand that also have a good
quality reputation in Germany. Also high quality wines from Romania and
Bulgaria are expected to make inroads in the German market within
several years. Their biggest disadvantage is their reputation as low
priced and low quality products.

Other American wine growing regions are encouraged to test the German
market and take advantage of the positive California image. Wines from
the Mid-West have done some tastings/promotions in Germany during recent
years.

The somewhat weaker value of the Euro compared to the U.S. dollar since
mid-2005 has the potential to complicate U.S. wine sales to Germany. In
addition, the stagnant economic situation in Germany limits
opportunities to sell high value and high priced wines to restaurants
and the hotel sector. Companies are increasingly cutting back on travel
and representation funds, which limit marketing opportunities in the
higher priced market segment. Trade servicing efforts such as European
storage, presentations, tastings, and selling on commission will become
a more important marketing tool to successfully compete with other New
World and European suppliers.

On the lower end market segment, significantly increased bulk shipment
of wines to Germany/Europe for bottling in the destination country has
opened up marketing opportunities for U.S. wine. These include
placements on retail shelves of all types of retailers including the
price aggressive discount stores. Price aggressive food discounters
often use special sales to market higher quality wines for a short
period of one or two weeks. These special sales prices often range
between EUR 5 to EUR 10 per 0.75 liter bottle. Lower priced U.S. wines
are also found on discount retail shelves.

The German Wine Institute conducts generic marketing for the industry.
It is responsible for marketing and promoting German wine within Germany
and around the world. It receives most of its funds as royalties from
German wine growers and processors. Overall, the German wine marketing
strategy aims to improve the image of German wine and promote German
wine in the high and medium priced market segments. These promotional
efforts have the potential to also generically support marketing
opportunities of imported high quality wines. Promotional efforts are
particularly targeting the lucrative medium-priced segment of the wine
market (between \$5 and \$9 per bottle), a segment in which German wines
are under-represented. Besides the traditional export markets in Europe,
North America, Eastern Europe, the East Asian markets are also targets
for international promotion of German wines.

German politicians are increasingly using German wines as an
"Ambassador" for Germany. The Deutsches Weininstitut will be a major
sponsor of the Soccer World Championship in Germany in 2006.

For marketing domestic wines, quality seals and wine awards have proven
to be very effective and efficient marketing tools. Consumers perceive
these marketing labels as an assurance of quality. Examples include the
golden or silver plaque of the Chamber of Agriculture or DLG quality
seal (DLG = Deutsche Landwirtschaftsgesellschaft).

Helpful addresses for marketing wines in Germany and general information
about the German wine market are available from the following:

California Wine Institute or Wine Institute of California

Sabine Weyrich European Office

Rheingaustrase 85 The Netherlands

65203 Wiesbaden, Germany

Tel.: +49 611 9200 736 Tel.: +31 172 471 571

Fax: +49 611 9200 263 Fax: +31 172 475 545

<wineinstitute@weyrich-pr.de> <molleman@zwart.nl>

Deutsches Weininstitut

Postfach (POBox) 1660

Gutenbergplatz 3-5

55006 Mainz, Germany

Tel.: +49 6131 2829 0

Fax +49 6131 2829 20

<info@dwi-dwf.de>

[www.deutscheweine.de]{.underline}

The major international trade show for wine in Germany is the ProWein,
held every spring in Duesseldorf. Next show: Mar 26 - 28, 2006. ProWein
is an excellent opportunity to meet importers, wholesalers, wine buyers,
media contacts, and to taste‑test your wine against the competition. In
addition to individual U.S. exhibitors, California has a large Pavilion.
MIATCO also organizes a Mid‑West Wine Pavilion, which has become
increasingly popular in recent years. Visiting ProWein would be a first
step for U.S. exporters that want to market their wines in Germany.
Exhibiting at the show is particularly effective because it gives trade
visitors a point of contact for questions and provides an opportunity to
taste the wines. The next step would be to generate tastings for wine
buyers in various German cities.

ProWein - International Trade Fair Wines and Spirits

Messe Duesseldorf GmbH

Stockumer Kirchstrasse 61

40474 Duesseldorf, Germany

Tel.: +49 211 4560 01

Fax +49 211 4560 668

[www.prowein.de]{.underline}

[info@messe-duesseldorf.de]{.underline}

Another interesting regional trade fair is the Forum Vini, which is held
every November at the fairgrounds in Munich (Muenchen). Forum Vini is a
consumer fair with 326 exhibitors. In November 2005, it attracted more
than 9,400 visitors, about 85 percent of the attendees were private
customers. Forum Vini provides a good opportunity to test the German
market in a large scale public tasting and selling environment.

Forum Vini

ALBRECHT, Gesellschaft fuer Fachausstellungen und Kongresse mbH

Oettingenstr. 25

80538 Muenchen

Tel.: +49 89 2729 4820

Fax: +49 89 2729 4822

[www.forum-vini.de]{.underline}

[Info@forum-vini.de]{.underline}

# Statistical Section

  -------------------------- ----------- ----------- ----------- ----------- ------------ -----------
  Table 1: German Wine                                                                    
  Production by Type and                                                                  
  Quality, in 1,000 hl                                                                    

  Calendar Year              2000        2001        2002        2003        2004         2005\*

  White Wine                 **6,819**   **6,071**   **6,364**   **5,397**   **6,034**    **5,650**

  Table Wine                 708         359         592         230         526          

  Quality Wine               3,984       3,545       3,314       1,757       3,390        

  Quality Wine w/ Spec.      2,127       2,166       2,459       3,410       2,118        
  Attributes\*\*                                                                          

  Red Wine                   **3,032**   **2,820**   **3,521**   **2,713**   **3,973**    **3,350**

  Table Wine                 69          25          31          18          60           

  Quality Wine               2,736       2,539       3,216       1,854       3,478        

  Quality Wine w/ Spec.      227         256         274         841         435          
  Attributes                                                                              

  Total Wine                 **9,852**   **8,891**   **9,885**   **8,110**   **10,007**   **9,000**

  Table Wine                 777         384         623         248         586          

  Quality Wine               6,720       6,085       6,530       3,611       6,868        

  Quality Wine w/ Spec.      2,355       2,422       2,732       4,251       2,553        
  Attributes                                                                              

  \* Preliminary                                                                          

  \*\* Quality attributes                                                                 
  shown on the label                                                                      

  Source: German Wine                                                                     
  Growers\' Association                                                                   
  -------------------------- ----------- ----------- ----------- ----------- ------------ -----------

  ------------------ -------- -------- -------- -------- -------- --------
  Table 2: \'German                                               
  Grape Must                                                      
  Production by Type                                              
  and Quality, in                                                 
  1,000 hl                                                        

                                                                  

  Calendar Year      2000     2001     2002     2003     2004     2005\*

  White Wine         7,005    6,071    6,563    5,549    6,141    5,930

  Red Wine           3,076    2,820    3,573    2,740    4,006    3,670

  Total Wine         10,081   8,891    10,136   8,289    10,147   9,600

  \* Forecast                                                     

  Source: German                                                  
  Wine Growers\'                                                  
  Association                                                     
  ------------------ -------- -------- -------- -------- -------- --------

  ----------------- --------- --------- --------- --------- --------- ---------
  Table 3: Grape                                                      
  Variety                                                             
  Distribution,                                                       
  1,000 hectares                                                      

                    1999      2000      2001      2002      2003      2004

  White Varieties   79,081    77,525    73,882    70,605    67,663    65,389

  Riesling          22,355    22,118    21,514    21,053    20,765    20,627

  Mueller-Thurgau   20,672    20,023    18,609    17,287    16,042    14,983

  Silvaner          6,859     6,691     6,422     6,101     5,819     5,578

  Kerner            6,828     6,543     6,054     5,557     5,041     4,606

  Bacchus           3,282     3,209     2,967     2,756     2,515     2,320

  Rulaender         2,637     2,769     2,905     3,146     3,433     3,786

  Scheurebe         3,126     2,948     2,693     2,436     2,190     2,003

  White Burgundy    2,396     2,593     2,795     2,984     3,104     3,192

  Chardonnay        531       610       719       821       891       958

  other white       10,936    10,021    9,204     8,464     7,863     7,336

                                                                      

  Red Varieties     25,152    27,245    29,723    32,384    34,826    36,852

  Blue Burgundy     8,643     9,255     9,806     10,637    11,029    11,371

  Dornfelder        3,765     4,372     5,530     6,661     7,693     8,200

  Blue Portogese    4,878     5,026     5,039     4,980     4,931     4,879

  Trollinger        2,530     2,593     2,615     2,607     2,597     2,578

  Black Riesling    2,289     2,405     2,481     2,518     2,514     2,491

  other red         3,047     3,594     4,252     4,981     6,062     7,333

                                                                      

  Total             104,233   104,770   103,605   102,989   102,489   102,241

  Source: German                                                      
  Wine Growers\'                                                      
  Association                                                         
  ----------------- --------- --------- --------- --------- --------- ---------

  ------------------------------------------------------ --------------- ------- ------- ------- ------- -------
  Table 4: Wine Market Developments in Germany                                                           

                                                         Unit            2000    2001    2002    2003    2004

  Wine Consuming Households                              \%              68.5    68.6    69.5    67.5    

  Market Share                                                                                           

  \- German Wine                                         \%              48.7    47.8    45.3    46.2    

  \- Import Wine                                         \%              51.3    52.2    54.7    53.8    

  \- White Wine                                          \%              43.3    41.1    41.2    40.0    

  \- Red + Rose Wine                                     \%              56.7    58.9    58.8    60.0    

  \- Wine in 0.75 l Bottles                              \%              52.2    51.8    49.0    49.0    

  \- German Wine in 0.75 l Bottles                       \%              43.0    45.0    44.0    43.0    

  Average Prices                                                                                         

  \- All Wine                                            EUR/l           3.11    3.21    2.94    2.87    

  \- German Wine                                         EUR/l           3.32    3.48    3.36    3.21    

  \- Imported Wine                                       EUR/l           2.73    2.68    2.60    2.58    

  \- White Wine                                          EUR/l           2.92    3.05    2.77    2.72    

  \- Red Wine                                            EUR/l           3.36    3.29    3.12    3.09    

  Trade Chanels                                                                                          

  \- Vintners + Coops                                    \%              18.7    19.0    18.3    17.1    

  \- Super Markets                                       \%              23.9    22.9    22.3    22.2    

  \- Specialty Stores                                    \%              7.2     5.6     4.7     3.7     

  \- Discount Stores                                     \%              37.2    39.0    43.1    45.2    

  \- other                                               \%              13.0    13.5    11.6    11.8    

  Source: German Wine Institute, Annual Report                                                           

  [www.deutscheweine.de](http://www.deutscheweine.de/)   Statistiken +                                   
                                                         Graphiken                                       
  ------------------------------------------------------ --------------- ------- ------- ------- ------- -------

  ------------------ ------- ------- ------- ------- ------- ------- -------
  Table 5: German                                                    
  Beverage                                                           
  Consumption, Liter                                                 
  per Capita                                                         

                     1998    1999    2000    2001    2002    2003    2004

  Alcoholic Beverage 156.3   156.3   154.4   152.2   151.6   147.0   145.5

  \- Beer            127.5   127.5   125.5   122.4   121.5   117.5   115.8

  \- Wine            18.1    18.0    19.0    19.8    20.3    19.8    20.1

  \- Sparkling Wine  4.7     4.9     4.1     4.2     3.9     3.8     3.8

  \- Spirits         6.0     5.9     5.8     5.8     5.9     5.9     5.8

                                                                     

  Non-alcoholic Bev. 240.7   248.3   253.1   261.5   273.2   291.8   284.8

  \- Mineral Water   100.1   104.2   106.8   113.6   120.0   135.0   131.3

  \- Soft Drinks     99.6    103.7   105.7   107.4   112.8   114.8   113.2

  \- Fruit Juice     41.0    40.4    40.6    40.5    40.4    42.0    40.3

                                                                     

  Hot Drinks + Other 275.1   277.3   320.3   320.6   319.2   319.7   319.1

  \- Coffee          159.1   159.4   158.9   159.0   156.1   153.5   151.8

  \- Coffee          3.2     3.0     3.0     3.0     3.1             
  Substitute                                                         

  \- Herbal Teas                     44.5    44.6    45.8    49.8    51.4

  \- Black Tea       27.1    28.2    26.7    26.2    26.2    25.2    24.1

  \- Milk            85.7    86.7    87.2    87.8    88.0    91.2    91.8

                                                                     

  Grand Total        672.1   681.9   727.8   734.3   744.0   758.5   749.4

  Source: Ifo                                                        
  Institut                                                           
  Muenchen -                                                         
  Weinbauverband -                                                   
  Zahlen, Daten,                                                     
  Fakten                                                             
  ------------------ ------- ------- ------- ------- ------- ------- -------

  ------------- --------- --------- --------- --------- ----------- -----------
  Table 6:                          MY                              
  German Wine                       Aug/Jul                         
  PS+D -                                                            
  1,000hl                                                           

                2000/01   2001/02   2002/03   2003/04   2004/05\*   2005/06\*

                                                        Estimate    Forecast

  Beg. Stocks   17,846    16,495    14,765    14,278    12,623      13,156

  Production    9,950     8,980     9,984     8,191     11,500      9,550

  Imports       11,616    12,434    12,056    13,068    12,464      12,500

  Total Supply  39,412    37,909    36,805    35,537    36,587      35,206

  Exports       2,569     2,509     2,703     2,920     2,733       2,750

  Processing    607       600       450       540       600         500

  Dom Wine Cons 19,741    20,035    19,374    19,454    20,098      20,000

  Ending Stocks 16,495    14,765    14,278    12,623    13,156      11,956

  Total Distrib 39,412    37,909    36,805    35,537    36,587      35,206

  Per Capita    23.9      24.3      23.5                            
  Cons                                                              

  Source:                                                           
  German                                                            
  Vintners\'                                                        
  Association                                                       

  \* Source FAS                                                     
  Bonn                                                              
  ------------- --------- --------- --------- --------- ----------- -----------

  ------------- --------- ------- --------- ------- --------- ------- --------- -------
  Table 7:                                                                      
  German                                                                        
  Imports of                                                                    
  Wine, 1,000                                                                   
  hl, Million                                                                   
  Euro                                                                          

                2002              2003              2004              Jan/Sep   
                                                                      2005      

  Quality White 1,000hl   Mill.   1,000hl   Mill.   1,000hl   Mill.   1,000hl   Mill.
  Wine                    \$                \$                \$                \$

  Total         1,052.3   195.4   1,003.2   225.4   1,046.8   231.0   614.4     150.0

  Intra-EU\*    1,052.2   195.4   1,003.2   225.4   1,046.8   231.0   614.4     150.0

  Extra-EU\*    0.1       0.0     0.0       0.0     0.0       0.0     0.0       0.0

  United States 0.0       0.0     0.0       0.0     0.0       0.0     0.0       0.0

                                                                                

  Other White                                                                   
  Wine                                                                          

  Total         3,240.5   201.1   3,231.9   251.4   3,960.9   321.6   2,994.7   245.8

  Intra-EU\*    2,904.8   154.4   2,801.8   190.1   3,488.5   243.0   2,664.0   191.6

  Extra-EU\*    335.7     46.7    430.1     61.3    472.3     78.7    330.7     54.2

  United States 61.9      11.1    94.7      16.8    101.6     16.7    63.3      8.6

                                                                                

  Quality Red                                                                   
  Wine                                                                          

  Total         2,296.1   554.2   2,322.9   641.9   2,220.6   672.9   1,440.0   403.9

  Intra-EU\*    2,296.1   554.2   2,322.9   641.9   2,220.6   672.9   1,439.6   403.8

  Extra-EU\*    0.0       0.0     0.0       0.0     0.0       0.0     0.3       0.1

  United States 0.0       0.0     0.0       0.0     0.0       0.0     0.0       0.0

                                                                                

  Other Red                                                                     
  Wine                                                                          

  Total         4,103.7   429.2   4,462.7   546.7   4,709.8   625.6   3,016.2   350.7

  Intra-EU\*    2,491.4   228.2   2,789.8   312.8   2,716.9   346.5   1,734.6   213.4

  Extra-EU\*    1,612.3   201.1   1,672.6   233.9   1,992.9   279.1   1,281.6   137.3

  United States 241.3     50.8    356.0     67.8    378.0     59.7    202.9     24.9

  \*Beginning                                                                   
  2003 Intra +                                                                  
  Extra EU 25                                                                   
  ------------- --------- ------- --------- ------- --------- ------- --------- -------

  ------------- ---------- --------- ---------- --------- ---------- --------- --------- ---------
  Table 7                                                                                
  con\'t:                                                                                
  German                                                                                 
  Imports of                                                                             
  Wine, 1,000                                                                            
  hl, Million                                                                            
  Euro                                                                                   

                2002                 2003                 2004                 Jan/Sep   
                                                                               2005      

  Vermouth      1,000hl    Mill. \$  1,000hl    Mill. \$  1,000hl    Mill. \$  1,000hl   Mill. \$

  Intra-EU\*    674.7      27.4      657.7      33.3      488.1      27.2      274.8     18.9

  Extra-EU\*    656.3      26.6      607.3      30.9      467.5      26.0      254.7     17.8

  Extra-EU      18.4       0.8       50.4       2.4       20.6       1.1       20.1      1.1

  United States 0.1        0.0       0.2        0.0       0.2        0.0       0.0       0.0

                                                                                         

  Wine Cooler                                                                            

  Total         502.1      47.2      319.7      39.3      313.9      43.1      270.6     33.5

  Intra-EU\*    493.1      45.4      307.0      37.2      292.8      39.6      253.7     31.2

  Extra-EU\*    9.0        1.8       12.7       2.0       21.1       3.5       16.9      2.4

  United States 1.2        0.3       2.5        0.3       2.1        0.4       0.2       0.3

                                                                                         

  Liquor/Wine                                                                            
  Spirits                                                                                

  Total         174.0      37.0      145.3      39.6      123.8      42.1      102.4     31.6

  Intra-EU\*    172.7      36.4      144.1      38.9      122.5      41.0      101.9     31.2

  Extra-EU\*    1.3        0.5       1.3        0.7       12.9       1.1       0.5       0.5

  United States 0.1        0.2       0.1        0.2       0.2        0.4       0.0       0.1

                                                                                         

  Sparkling                                                                              
  Wine / Base                                                                            
  Wine for                                                                               
  Sparkling                                                                              
  Wine                                                                                   

  Total         1,367.6    370.6     1,294.7    431.8     1,349.2    494.6     818.7     287.0

  Intra-EU\*    1,349.9    365.7     1,280.9    427.1     1,334.8    488.6     812.3     284.6

  Extra-EU\*    1.8        4.9       13.8       4.7       14.4       6.0       6.4       2.4

  United States 0.2        0.1       0.0        0.0       0.0        0.0       0.0       0.0

                                                                                         

  Total Wine                                                                             

  Total         13,410.9   1,862.2   13,437.9   2,209.5   14,213.0   2,458.0   9,924.8   1,645.0

  Intra-EU\*    11,416.4   1,606.3   11,257.1   1,904.4   11,690.3   2,088.5   7,925.3   1,334.4

  Extra-EU\*    1,994.5    255.8     2,180.8    305.1     2,522.6    369.6     1,999.5   310.6

  United States 304.8      62.6      453.5      85.2      482.0      77.3      329.0     54.7

  \*Beginning                                                                            
  2003 Intra +                                                                           
  Extra EU 25                                                                            

  Source:                                                                                
  Federal                                                                                
  Statistics                                                                             
  Office                                                                                 

                                                                                         
  ------------- ---------- --------- ---------- --------- ---------- --------- --------- ---------

  ------------- --------- ------- --------- ------- --------- ------- --------- -------
  Table 8:                                                                      
  German                                                                        
  Exports of                                                                    
  Wine, 1,000                                                                   
  hl, Million                                                                   
  Euro                                                                          

                2002              2003              2004              Jan/Sep   
                                                                      2005      

  Quality White 1,000hl   Mill.   1,000hl   Mill.   1,000hl   Mill.   1,000hl   Mill.
  Wine                    \$                \$                \$                \$

  Total         1,374.8   216.8   1,450.3   280.4   1,436.6   310.9   1,008.3   239.4

  Intra-EU\*    982.9     117.9   1,072.3   151.9   1,051.8   171.5   687.5     122.0

  Extra-EU\*    391.9     97.5    376.2     126.8   383.5     138.6   320.4     117.2

  United States 138.4     41.8    164.5     67.5    184.0     74.6    167.7     66.6

                                                                                

  Other White                                                                   
  Wine                                                                          

  Total         501.5     47.9    604.7     71.3    546.7     79.4    446.6     69.9

  Intra-EU\*    468.8     42.7    563.1     64.2    500.6     70.1    400.4     56.0

  Extra-EU\*    32.3      5.1     41.0      6.9     46.0      9.2     46.1      9.9

  United States 1.3       0.3     2.1       0.7     4.5       1.3     10.8      2.0

                                                                                

  Quality Red                                                                   
  Wine                                                                          

  Total         95.1      43.3    97.8      57.2    139.8     60.3    157.3     49.3

  Intra-EU\*    65.4      28.9    68.2      38.4    115.1     42.4    133.3     33.1

  Extra-EU\*    28.3      12.5    28.1      16.4    24.0      16.9    23.7      15.8

  United States 3.9       2.1     4.0       3.3     2.7       2.2     3.9       3.1

                                                                                

  Other Red                                                                     
  Wine                                                                          

  Total         316.0     51.8    448.7     84.7    479.6     98.8    301.5     59.7

  Intra-EU\*    271.5     41.7    393.2     70.1    419.7     82.6    254.3     47.5

  Extra-EU\*    43.8      9.6     54.7      14.0    59.6      16.0    47.0      12.1

  United States 3.4       0.9     2.0       1.1     4.4       2.0     3.8       1.3

  \*Beginning                                                                   
  2003 Intra +                                                                  
  Extra EU 25                                                                   
  ------------- --------- ------- --------- ------- --------- ------- --------- -------

  ------------- --------- --------- --------- --------- --------- --------- --------- ---------
  Table 8                                                                             
  con\'t:                                                                             
  German                                                                              
  Exports of                                                                          
  Wine, 1,000                                                                         
  hl, Million                                                                         
  Euro                                                                                

                2002                2003                2004                Jan/Sep   
                                                                            2005      

  Vermouth      Mill. \$  1,000hl   Mill. \$  1,000hl   Mill. \$  1,000hl   Mill. \$  1,000hl

  Total         155.4     15.9      181.6     22.9      210.0     29.4      137.8     16.4

  Intra-EU\*    141.9     12.5      165.5     18.6      191.1     24.1      124.1     12.2

  Extra-EU\*    12.4      2.9       15.0      3.8       18.5      5.0       13.6      4.1

  United States 1.9       0.2       1.4       0.3       1.9       0.3       1.6       0.2

                                                                                      

  Wine Cooler                                                                         

  Total         181.2     18.2      191.4     21.9      151.5     21.4      86.2      11.8

  Intra-EU\*    158.2     15.0      166.1     18.4      128.9     17.4      73.2      9.4

  Extra-EU\*    22.9      3.2       25.2      3.4       22.5      3.9       12.9      2.5

  United States 0.2       0.1       1.0       0.2       0.4       0.0       0.5       0.1

                                                                                      

  Liquor/Wine                                                                         
  Spirits                                                                             

  Total         31.1      9.7       34.1      12.1      32.0      12.5      26.4      10.1

  Intra-EU\*    30.6      9.2       33.7      11.6      31.5      12.1      26.0      9.7

  Extra-EU\*    0.3       0.2       0.2       0.2       0.3       0.3       0.4       0.4

  United States 0.1       0.1       0.0       0.0       0.0       0.0       0.0       0.0

                                                                                      

  Sparkling                                                                           
  Wine / Base                                                                         
  Wine for                                                                            
  Sparkling                                                                           
  Wine                                                                                

  Total         136.7     49.1      137.1     47.1      143.9     53.1      88.3      34.5

  Intra-EU\*    96.5      32.9      95.5      28.2      103.1     32.0      64.8      22.1

  Extra-EU\*    38.7      13.7      40.3      15.9      40.2      19.5      23.2      11.7

  United States 4.3       1.4       4.2       1.8       4.6       2.2       3.6       1.5

                                                                                      

  Total Wine                                                                          

  Total         2,791.8   452.7     3,145.9   597.6     3,140.0   665.7     2,326.3   514.1

  Intra-EU\*    2,241.1   300.8     2,557.8   401.4     2,541.9   452.3     1,836.2   337.9

  Extra-EU\*    543.5     144.6     580.8     187.4     594.6     209.4     488.7     174.8

  United States 153.5     47.0      179.3     74.9      202.7     82.7      192.1     74.9

  \*Beginning                                                                         
  2003 Intra +                                                                        
  Extra EU 25                                                                         

  Source:                                                                             
  Federal                                                                             
  Statistics                                                                          
  Office                                                                              
  ------------- --------- --------- --------- --------- --------- --------- --------- ---------

  --------------- ---------- --------- ---------- --------- ---------- --------- --------- ---------
  **Table 9:                                                                               
  German Wine                                                                              
  Imports by                                                                               
  Country of                                                                               
  Origin**                                                                                 

                  2002                 2003                 2004                 Jan/Sep   
                                                                                 2005      

                  1,000 hl   Mill. \$  1,000hl    Mill. \$  1,000hl    Mill. \$  1,000hl   Mill. \$

  U.S.A.          303.4      62.3      450.9      84.8      479.8      76.8      327.2     54.4

  Italy           5,125.1    635.8     4,518.5    725.7     4,796.2    803.2     3,631.8   542.9

  France          2,644.2    542.1     2,721.0    659.5     2,485.5    695.7     1,588.9   420.0

  Spain           1,471.4    250.3     2,064.1    316.8     2,733.8    387.4     1,518.3   226.7

  Greece          208.0      31.1      222.3      38.1      196.8      39.2      114.3     22.6

  Austria         462.7      28.5      451.7      37.6      329.3      36.8      254.9     29.1

  Portugal        138.0      26.5      147.9      35.6      208.3      39.2      118.8     25.7

  Hungary         183.4      16.8      202.8      20.5      166.3      18.7      117.9     13.9

  Romania         183.3      10.0      171.3      11.3      142.0      10.8      110.3     8.7

  Bulgaria        155.6      11.1      119.3      10.8      88.4       9.2       49.8      4.6

  Macedonia       453.2      17.6      303.4      15.2      366.4      18.9      318.9     16.1

  Tunisia         14.2       0.8                            15.4       1.1       17.0      1.2

  South Africa    148.0      29.8      187.0      40.6      242.7      55.9      291.1     56.1

  Chile           343.4      43.0      458.1      53.9      628.4      81.6      431.9     71.3

  Argentina       37.0       6.0       35.1       5.4       51.4       8.1       45.5      7.1

  Australia       211.1      51.9      238.0      53.7      320.0      71.0      294.1     64.5

  Other           152.2      24.0      169.0      27.4      160.3      34.2      121.5     26.0

  World           12,234.2   1,787.6   12,460.4   2,136.9   13,411.0   2,387.8   9,352.2   1,590.9

  \* Preliminary                                                                           

  Source: Federal                                                                          
  Statistics                                                                               
  Office                                                                                   

                                                                                           

  NWW %           8.5        10.8      11.0       11.2      12.8       12.3      14.9      15.9

  NWW Vol.        1,042.9    193.0     1,369.1    238.4     1,722.3    293.4     1,389.8   253.4

  NewWorldWines                                                                            
  --------------- ---------- --------- ---------- --------- ---------- --------- --------- ---------

  ------------- --------- ------- --------- ------- --------- ------- --------- -------
  Table 10:                                                                     
  German Wine                                                                   
  Exports by                                                                    
  Major                                                                         
  Countries of                                                                  
  Destination                                                                   

                2002              2003              2004              Jan/Sep   
                                                                      2005      

                1,000 hl  Mill.   1,000 hl  Mill.   1,000 hl  Mill.   1,000 hl  Mill.
                          \$                \$                \$                \$

  U.S.A.        151.4     46.7    176.9     74.4    200.4     82.3    190.0     74.5

  Great Britain 896.5     112.4   986.0     148.8   1,007.3   166.3   674.4     119.3

  Netherlands   315.3     39.9    387.3     54.2    404.8     69.4    312.7     58.7

  Sweden        133.0     20.5    161.4     28.3    151.5     26.2    142.9     22.7

  Japan         100.7     30.7    87.3      30.8    69.6      30.6    48.9      22.5

  France        139.7     26.5    135.5     28.2    122.2     28.9    88.0      21.3

  Bel/Lux       96.3      14.6    103.3     18.3    104.0     24.0    81.9      19.4

  Denmark       74.9      6.2     68.6      8.4     78.8      12.5    61.5      11.4

  Austria       56.7      15.5    65.3      22.9    73.0      25.7    53.3      17.0

  Canada        49.7      13.3    52.1      14.8    54.9      16.4    37.2      12.1

  Ireland       31.2      4.8     56.2      9.3     53.5      12.2    32.5      8.0

  Poland        37.6      5.4     47.8      7.0     52.5      9.6     42.3      7.5

  Norway        55.1      10.0    61.0      12.9    65.7      16.5    59.1      17.1

  Switzerland   21.7      10.6    28.3      13.8    26.0      15.8    16.0      8.8

  Latvia        48.8      7.7     53.6      9.8     21.2      4.1     6.4       1.6

  Other         246.6     53.8    302.4     70.8    293.2     74.5    252.2     63.1

  World         2,455.2   418.6   2,773.0   552.7   2,778.6   615.0   2,099.3   485.0

  \*                                                                            
  preliminary                                                                   
  data                                                                          

  Source:                                                                       
  Federal                                                                       
  Statistics                                                                    
  Office                                                                        
  ------------- --------- ------- --------- ------- --------- ------- --------- -------

  --------------- ----------- ------- -------- ------- -------- ------- --------- -------
  Table 11:                                                                       
  Average Prices                                                                  
  for Imported                                                                    
  Wine                                                                            

                  2002                2003             2004             Jan/Sep   
                                                                        2005\*    

                  Euro/L      \$/L    Euro/L   \$/L    Euro/L   \$/L    Euro/L    \$/L

                  Quality                                                         
                  White Wine                                                      

  WORLD           1.96        1.86    1.99     2.25    1.78     2.21    1.94      2.44

  U.S.A.          \-          \-      \-       \-      \-       \-      \-        \-

  INTRA-EU        1.96        1.86    1.99     2.25    1.78     2.21    1.94      2.44

  CHILE           \-          \-      \-       \-      \-       \-      10.00     13.10

  SOUTH AFRICA    \-          \-      \-       \-      \-       \-      \-        \-

  AUSTRALIA       \-          \-      \-       \-      \-       \-      5.00      6.03

                  Other White                                                     
                  Wine                                                            

  WORLD           0.66        0.62    0.69     0.78    0.65     0.81    0.65      0.82

  U.S.A.          1.91        1.80    1.57     1.77    1.32     1.64    1.08      1.36

  INTRA-EU        0.55        0.52    0.60     0.68    0.56     0.67    0.57      0.72

  CHILE           1.45        1.37    1.02     1.15    1.05     1.30    1.03      1.30

  SOUTH AFRICA    1.49        1.41    1.37     1.55    1.40     1.74    1.12      1.40

  AUSTRALIA       1.99        1.89    1.72     1.95    1.83     2.27    1.55      1.96

                  Quality Red                                                     
                  Wine                                                            

  WORLD           2.55        2.41    2.44     2.76    2.44     3.03    2.21      2.81

  U.S.A.          \-          \-      \-       \-      \-       \-      \-        \-

  INTRA-EU        2.55        2.41    2.44     2.76    2.44     3.03    2.21      2.81

  CHILE           \-          \-      \-       \-      \-       \-      3.30      4.06

                  Other Red                                                       
                  Wine                                                            

  WORLD           1.11        1.05    1.08     1.23    1.07     1.33    0.92      1.16

  U.S.A.          2.23        2.11    1.68     1.91    1.27     1.58    0.97      1.23

  INTRA-EU        0.96        0.91    0.99     1.12    1.03     1.27    0.97      1.23

  CHILE           1.31        1.24    1.04     1.18    1.04     1.30    0.89      1.13

  SOUTH AFRICA    2.59        2.45    2.25     2.54    2.09     2.59    1.12      1.41

  AUSTRALIA       2.86        2.70    2.10     2.38    1.77     2.20    1.27      1.59

                  Liquor Wine                                                     

  WORLD           2.25        2.13    2.41     2.72    2.74     3.40    2.44      3.09

  U.S.A.          24.00       22.70   15.10    17.09   21.13    26.24   12.28     15.55

  INTRA-EU        2.23        2.11    2.38     2.70    2.69     3.34    2.41      3.06

  CHILE           4.31        4.08    5.59     6.32    2.63     3.27    \-        \-

  SOUTH AFRICA    2.41        2.28    3.98     4.50    8.94     11.10   7.06      8.84

  AUSTRALIA       13.18       12.47   18.42    20.84   8.42     10.46   16.54     20.75

                  Sparkling                                                       
                  Wine                                                            

  WORLD           2.87        2.71    2.95     3.34    2.95     3.67    2.77      3.51

  U.S.A.          4.55        4.30    10.00    11.30   7.38     9.17    6.76      8.77

  INTRA-EU        2.87        2.71    2.95     3.33    2.95     3.66    2.77      3.50

  CHILE           4.52        4.27    3.00     3.40    4.09     5.08    4.15      5.13

  SOUTH AFRICA    2.99        2.83    3.31     3.75    2.72     3.38    2.50      3.16

  AUSTRALIA       5.36        5.07    5.20     5.88    5.81     7.22    5.15      6.58

                  Vermouth                                                        

  WORLD           0.43        0.41    0.45     0.51    0.45     0.56    0.54      0.69

  U.S.A.          3.11        2.95    2.35     2.66    2.24     2.79    1.76      2.16

  INTRA-EU        0.47        0.41    0.45     0.51    0.45     0.61    0.55      0.70

  SOUTH AFRICA    10.00       9.50                     20.00    24.85   9.09      11.54

                  Wine                                                            
                  Coolers                                                         

  WORLD           0.99        0.94    1.09     1.23    1.11     1.37    0.99      1.24

  U.S.A.          2.53        2.39    1.11     1.25    1.73     2.15    1.43      1.81

  INTRA-EU        0.97        0.92    1.07     1.21    1.09     1.35    0.98      1.23

  SOUTH AFRICA    1.07        1.01    2.50     2.83    2.29     2.84    1.42      1.75

  \* Beginning                                                                    
  2004 EU 25 -                                                                    
  Before 2004 EU                                                                  
  15                                                                              

  Source: Federal                                                                 
  Statistics                                                                      
  Office                                                                          
  --------------- ----------- ------- -------- ------- -------- ------- --------- -------

  ------------ -------- -------- ------- -- ---------- ---------- -------- -- ----------- ----------
  Wine                                                                                    
  Stocks -                                                                                
  July 31,                                                                                
  Million hl                                                                              

                                                                                          

               Total    White    Red        Domestic   Imported               Sparkling   

                                                       EU         non-EU      Domestic    Imported

                                                                                          

  2001         16.495   12.163   4.332      12.776     3.037      0.689       0.956       2.024

  2002         14.765   10.708   4.058      11.089     3.037      0.639       0.860       1.916

  2003         14.278   9.700    4.578      10.889     2.790      0.599       0.832       1.802

  2004         12.620   8.400    4.200      9.200      3.400                  0.700       1.770

  2005         13.156   8.266    4.890      9.809      2.771      0.576       0.613       1.719

  Source:                                                                                 
  German                                                                                  
  Federal                                                                                 
  Statistics                                                                              
  Office                                                                                  
  ------------ -------- -------- ------- -- ---------- ---------- -------- -- ----------- ----------