In dialogue with @GrapeConviction following his reading of my post on Generational Roles in the Demise of the French Wine Drinking Culture, two questions were raised: (i) did I expect to see continuing declines in French wine consumption? and (ii) what steps could producers take to mitigate this problem? I will address these two questions over the course of my next two posts, this one inclusive.
First, as regards future consumption, French National Institute for Agricultural Research (INRA) and Viniflhor projections (in Comité national des conseillers du commerce exterieurs de la France (CCE), "Wine in the world as we approach 2050: the 21st century market challenges," September 2009) show that, in a market of 51 million wine drinkers: regular drinkers will decline from 20% in 2005 to 17% in 2010 and 13% in 2015; non-consumers will represent 39%, 41%, and 43% of the market, respectively, in the same years; and occasional drinkers will rise from a base of 41% in 2005 to 43% over the forecast period. The projected decline in regular drinkers, and the increase in occasional drinkers, signals further erosion in consumption as, according to INRA (CCE), occasional drinkers consume five to six times less wine than does a regular consumer.
The CCE report has identified two fronts on which the French wine industry should battle the decline in wine consumption: (i) seek growth in international markets to offset the declines at home and (ii) target the large, and growing, occasional and non-wine-drinking segments. To these I will add the options of (i) exiting the market completely (available only to individual producers) and (ii) seeking to increase the amount of wine drunk by foreign tourists while in France (At this time it is not clear how tourist consumption maps into the overall domestic consumption figures.).
Initiatives focused on combating the consumption problem can be broadly categorized as being at the institutional or producer level. In this post I will cover institutional initiatives.
Initially the European Union saw declining consumption as a supply problem and sought to address it by mandating the grubbing up of vineyards and reducing subsidies to farmers. In its August 2000 Common Market Organization (CMO) for wine, the EU began to take a broader view of the problem. The 2000 CMO sought to (i) enhance quality, (ii) protect quality wines produced in specified geographic areas, (iii) increase industry market orientation, and (iv) subsidize renewal of old vineyards. As the data have shown, this initiative did not solve the declining-consumption problem. This then led to the August 2009 CMO for wine.
The August 2009 CMO sees improving wine producer competitiveness as both a foil against foreign wines in the domestic market as well as a tool for helping to win business in foreign markets. One of the significant aspects of the CMA is its simplification of the quality level scheme (to essentially three levels: AOP, IGT, and Vin de Table; the German sweet wine levels is retained) with the option of using varietal names at the Vin de Table level. In this scheme, a producer who wants to use a varietal name can do so providing the wine is labeled VdT, regardless of actual quality level. This initiative seeks to protect the domestic market by protecting place names (something the local consumer would, ostensibly, be familiar with) while giving the local producer the flexibility of using varietal names where that is the preferred mode for communicating the contents of the bottle.
It may be a statement of the obvious but the French wine industry is important to France. According to CCE, the industry: is responsible for 350,000 upstream and downstream jobs; is a key part of France's heritage; is, in some rural areas, the only economic activity; and is a key contributor to the country's balance of payments. Given the industry's importance, one would expect the French government to seek a role in addressing the declining-consumption problem. And it has. As a direct offshoot of the 2009 CMO, the French wine authorities have launched a 5-year program to modernize French viticulture. In addition, the Inspector General of French agriculture has been charged with developing programs aimed at improving industry promotional activity in international markets.
These initiatives by themselves will not solve the problem (assuming it is soluble). They are, instead, designed to create an environment wherein producers and marketers can apply creative solutions. The task is daunting, however, as they attempt to change course in the face of implacable competitors, unenthusiastic consumers, and tepidly religious marketers and producers. My next post will focus in on this area.
Showing posts with label Wine drinking culture. Show all posts
Showing posts with label Wine drinking culture. Show all posts
Friday, October 21, 2011
Tuesday, October 11, 2011
Generational Roles in the Demise of the French Wine Drinking Culture
French wine drinking culture is dead. So says Marion Demoisser in her book French Wine Drinking Culture ..., where she details a number of changes in French wine production and consumption which have had material, deleterious effects on the "strong national wine drinking culture." According to Demoisser, a key indicator of the death of the French wine drinking culture is a decline in consumption, a decline that can be attributed to a number of factors: (i) wine has been replaced by water and other beverages in many instances as the liquid accompaniment to meals; (ii) a government clampdown on drinking and driving; (iii) an increased focus on healthy living, especially among the younger generation; and (iv) an increase in beer consumption among young people. In a recent journal article ("The representation of wine in France from generation to generation: a dual generation gap." Int. J. Etntrepreunership and Small Business 13(2), pp. 162-180, 2011), Lorey and Poutet provide additional insight into French wine consumption and the roles played by successive generations in its decline. We examine the Lorey and Poutet research and findings in this post.
The table below shows the decline in French wine consumption using a number of different indicators. The table shows both overall and per capita consumption declining markedly, even in the face of an almost 50% population increase since the beginning of WWII. It also shows the precipitous decline in people who drink wine on a daily basis and a significant increase in the people who self-identify as non-drinkers of wine.
Looking at the declines in consumption, the authors wondered whether they were reflective of a shift in the way that wine was imagined or thought of (The way of thinking or imagining about an item is called representation and is "... a dynamic structure which evolves and becomes different with the passing years and social changes, under the influence of culture and social practices."). Further if such a shift had taken place, could its tracks be followed across generational cohorts.
The table below shows the decline in French wine consumption using a number of different indicators. The table shows both overall and per capita consumption declining markedly, even in the face of an almost 50% population increase since the beginning of WWII. It also shows the precipitous decline in people who drink wine on a daily basis and a significant increase in the people who self-identify as non-drinkers of wine.
Looking at the declines in consumption, the authors wondered whether they were reflective of a shift in the way that wine was imagined or thought of (The way of thinking or imagining about an item is called representation and is "... a dynamic structure which evolves and becomes different with the passing years and social changes, under the influence of culture and social practices."). Further if such a shift had taken place, could its tracks be followed across generational cohorts.
In order to answer these questions, the authors undertook a research study whose objectives were to (i) describe and assess the representation of wine, and its relation to consumption, for a generational cohort comprised of people over 65 years of age; (ii) conduct similar exercises for a 30-40-year-old cohort and a post-1980-birth cohort; and (iii) compare and contrast the results. Data for the study were collected from subjects in face-to-face interviews.
The research shows the over-65 generation as key markers for a French wine drinking culture: they consume wine on a daily basis; they view wine as a symbol of French culture; they feel very strongly about the generational transmission of this very French patrimony and were very forceful in identifying the father as the person responsible for transmission; they see wine as a healthy, therapeutic drink; and they are not impacted by drunk-driving campaigns.
In examining the data for the 30-40 year-old cohort, the authors note what they call "the first generational gap." This group drinks wine occasionally and wine becomes the preserve of social groups -- rather than society wide as in the older generation -- that seek to promote it as a status symbol. It is also in this group that we first begin to see concerns about drunk-driving beginning to take hold.
There is a second generation gap for the cohort born after 1980. Wine drinking in this group is reminiscent of the way that champagne is drunk in the US -- occasionally and for special events -- and wine loses its cultural identity as fathers from the prior generation fail to pass on the patrimony. It is in this group that wine begins to take on the mantle of a "hazardous product."
With the insights provided by this data, the demise of the French wine drinking culture is easily tracked. The baseline group (over-65) represents the epitome of French wine drinking culture; and they continue to consume wine according to their beliefs but in declining amounts as members of their cohort die off. The 30-45 group has elements of the wine drinking culture passed on to them but they begin to go their own way and drink wine occasionally or as a part of a special group. So during the time when these two generations are in their "wine-drinking years," the over-65 generation is fully engaged while the 30-40 group is only partially so. And the consumption numbers reflect this situation. Then along comes the post-1980 generation and they contribute almost nothing to the pot: occasional/exceptional drinkers; no wine culture; and, furthermore, beginning to look at wine with upturned noses. So now in society as a whole, we have the older generation fully engaged (but their numbers declining), the middle generation partially engaged, and the post-1980s acting as a drag on the system. The picture that emerges is of a declining national engagement in wine drinking with the resultant decline in consumption. Hence the statement regarding the death of the French wine drinking culture.
The French wine drinking culture has given way to what I call the Unitary wine drinking architecture. According to Demoisser, the forces in France have led to the culture transitioning from a perception of ubiquitous wine knowledge to a three-tiered society with (i) 38% of the population (2005 figures) self-identifying as non-wine-drinkers; (ii) a middle grouping -- which she characterizes as the "wandering drinker" -- that has limited knowledge and only drinks occasionally; and (iii) the wine lover. Given the technologies available today, and the international nature of wine opinion making, this architecture will likely prevail.
The research shows the over-65 generation as key markers for a French wine drinking culture: they consume wine on a daily basis; they view wine as a symbol of French culture; they feel very strongly about the generational transmission of this very French patrimony and were very forceful in identifying the father as the person responsible for transmission; they see wine as a healthy, therapeutic drink; and they are not impacted by drunk-driving campaigns.
In examining the data for the 30-40 year-old cohort, the authors note what they call "the first generational gap." This group drinks wine occasionally and wine becomes the preserve of social groups -- rather than society wide as in the older generation -- that seek to promote it as a status symbol. It is also in this group that we first begin to see concerns about drunk-driving beginning to take hold.
There is a second generation gap for the cohort born after 1980. Wine drinking in this group is reminiscent of the way that champagne is drunk in the US -- occasionally and for special events -- and wine loses its cultural identity as fathers from the prior generation fail to pass on the patrimony. It is in this group that wine begins to take on the mantle of a "hazardous product."
With the insights provided by this data, the demise of the French wine drinking culture is easily tracked. The baseline group (over-65) represents the epitome of French wine drinking culture; and they continue to consume wine according to their beliefs but in declining amounts as members of their cohort die off. The 30-45 group has elements of the wine drinking culture passed on to them but they begin to go their own way and drink wine occasionally or as a part of a special group. So during the time when these two generations are in their "wine-drinking years," the over-65 generation is fully engaged while the 30-40 group is only partially so. And the consumption numbers reflect this situation. Then along comes the post-1980 generation and they contribute almost nothing to the pot: occasional/exceptional drinkers; no wine culture; and, furthermore, beginning to look at wine with upturned noses. So now in society as a whole, we have the older generation fully engaged (but their numbers declining), the middle generation partially engaged, and the post-1980s acting as a drag on the system. The picture that emerges is of a declining national engagement in wine drinking with the resultant decline in consumption. Hence the statement regarding the death of the French wine drinking culture.
The French wine drinking culture has given way to what I call the Unitary wine drinking architecture. According to Demoisser, the forces in France have led to the culture transitioning from a perception of ubiquitous wine knowledge to a three-tiered society with (i) 38% of the population (2005 figures) self-identifying as non-wine-drinkers; (ii) a middle grouping -- which she characterizes as the "wandering drinker" -- that has limited knowledge and only drinks occasionally; and (iii) the wine lover. Given the technologies available today, and the international nature of wine opinion making, this architecture will likely prevail.
Wednesday, June 15, 2011
Towards a Unitary Wine Drinking Architecture
With regional/commune wine-production centers, and local foods that are perfectly matched to these wines, the Mediterranean countries of France, Italy, and Spain have long stood as the epitomization of national wine culture. In her book French Wine Drinking Culture ..., Marion Demoisser details a number of changes in French wine production and consumption which have had material, deleterious effects on the perceived "strong national wine drinking culture." These forces are not unique to France, as both Spain and Italy are experiencing generational change in the choice and place of drinks. I posit that these tectonic changes are a forcing function for a decline in the national wine drinking culture.
According to Demoisser, French wine consumption stood at 170 liters per capita on the eve of WWII but had fallen to 54.8 liters by 2007 (it was 45.23 liters per capita at the end of 2009, the last year for which data are available), an almost 300% decline in a period wherein the population increased by 48%. This decline is attributable to a number of factors: (i) In 1980, 50.7% of the population drank wine on a daily basis compared to only 20.7% in 2005; (ii) wine has been replaced by water and other beverages in many instances as the liquid accompaniment to meals; (iii) a government clampdown on drinking and driving; (iv) an increased focus on healthy living, especially among the younger generation; and (v) an increase in beer consumption among young people.
Along with the reduction in consumption, France has seen changes in the profile of wine drinkers as well as in the types of wine being consumed. Prior to 1970, the bulk of the wine being consumed was Vin de Pays and it was being drunk primarily by the urban and working poor. In recent years AOC wines have been consumed in greater volume while the "plonk" wines have been on a steady downward slide. AOC wine production went from 15,535 hectoliters in 1994-1995 to 17,536 hectoliters in 2005-2006.
In contrast to the negative forces highlighted above, the country has experienced, and,in some cases, continue to experience, a number of "new architecture" forces. According to Demoisser, France has seen, among others: (i) a post WWII economic transformation and the emergence of a new middle class; (ii) a flight from villages to towns; (iii) transformation of the French diet and the rise of the "chef king"; (iv) acceptance of the bourgeois model of wine drinking as "moderate, ritualized, and status-oriented" as opposed to the prior working-class model; (v) the rise of wine as a focus of consumption rather than an accompaniment to a meal; (vi) the birth of wine tourism; and (vii) a proliferation of clubs, activities and discourses devoted to wine.
These opposing forces have seen the demise of wine as a staple of the French diet and "its rise as a cultural and aesthetic object" and the culture transitioning from a perception of ubiquitous wine knowledge to a three-tiered society with (i) 38% of the population (2005 figures) self-identifying as non-wine-drinkers; (ii) a middle grouping --- which she characterizes as the "wandering drinker" -- which has limited knowledge and only drinks occasionally; and (iii) the wine lover. A large number of activities, media, and locales have sprung up to meet the needs of the wine lover resulting in a situation where, in France, "... there have never been so many wine lovers with such a prolific knowledge of wine."
I posit that the architecture described by Demoisser as the new French reality already exists in the US. As pointed out in my most recent post, 90% of the wine in the US is drunk by 20% of the population and we have about 44 million "wandering drinkers." There are a wide range of wine-related activities available for the initiated in both wine- and non-wine- producing areas and the opportunities for dialogue with like-minded individuals are endless. The ease of interaction and communication with self-professed and acclaimed experts, flying winemakers, and oenologists allows the wine lover to readily expand his/her base of knowledge and create a wider chasm between that group and the wandering drinker.
I posit that this architecture will be the dominant wine drinking architecture for the foreseeable future given the technologies available today and the ease of transit between nations. The architecture will drive dialogue with like-minded people wherever they are and will increase the challenge of wine marketers as they strive to bring new wine drinkers aboard.
According to Demoisser, French wine consumption stood at 170 liters per capita on the eve of WWII but had fallen to 54.8 liters by 2007 (it was 45.23 liters per capita at the end of 2009, the last year for which data are available), an almost 300% decline in a period wherein the population increased by 48%. This decline is attributable to a number of factors: (i) In 1980, 50.7% of the population drank wine on a daily basis compared to only 20.7% in 2005; (ii) wine has been replaced by water and other beverages in many instances as the liquid accompaniment to meals; (iii) a government clampdown on drinking and driving; (iv) an increased focus on healthy living, especially among the younger generation; and (v) an increase in beer consumption among young people.
Along with the reduction in consumption, France has seen changes in the profile of wine drinkers as well as in the types of wine being consumed. Prior to 1970, the bulk of the wine being consumed was Vin de Pays and it was being drunk primarily by the urban and working poor. In recent years AOC wines have been consumed in greater volume while the "plonk" wines have been on a steady downward slide. AOC wine production went from 15,535 hectoliters in 1994-1995 to 17,536 hectoliters in 2005-2006.
In contrast to the negative forces highlighted above, the country has experienced, and,in some cases, continue to experience, a number of "new architecture" forces. According to Demoisser, France has seen, among others: (i) a post WWII economic transformation and the emergence of a new middle class; (ii) a flight from villages to towns; (iii) transformation of the French diet and the rise of the "chef king"; (iv) acceptance of the bourgeois model of wine drinking as "moderate, ritualized, and status-oriented" as opposed to the prior working-class model; (v) the rise of wine as a focus of consumption rather than an accompaniment to a meal; (vi) the birth of wine tourism; and (vii) a proliferation of clubs, activities and discourses devoted to wine.
These opposing forces have seen the demise of wine as a staple of the French diet and "its rise as a cultural and aesthetic object" and the culture transitioning from a perception of ubiquitous wine knowledge to a three-tiered society with (i) 38% of the population (2005 figures) self-identifying as non-wine-drinkers; (ii) a middle grouping --- which she characterizes as the "wandering drinker" -- which has limited knowledge and only drinks occasionally; and (iii) the wine lover. A large number of activities, media, and locales have sprung up to meet the needs of the wine lover resulting in a situation where, in France, "... there have never been so many wine lovers with such a prolific knowledge of wine."
I posit that the architecture described by Demoisser as the new French reality already exists in the US. As pointed out in my most recent post, 90% of the wine in the US is drunk by 20% of the population and we have about 44 million "wandering drinkers." There are a wide range of wine-related activities available for the initiated in both wine- and non-wine- producing areas and the opportunities for dialogue with like-minded individuals are endless. The ease of interaction and communication with self-professed and acclaimed experts, flying winemakers, and oenologists allows the wine lover to readily expand his/her base of knowledge and create a wider chasm between that group and the wandering drinker.
I posit that this architecture will be the dominant wine drinking architecture for the foreseeable future given the technologies available today and the ease of transit between nations. The architecture will drive dialogue with like-minded people wherever they are and will increase the challenge of wine marketers as they strive to bring new wine drinkers aboard.
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