Wine to Denmark

(Last updated: 12 Aug 2009)

Trends and opportunities

The market

For a non-wine producing country wine consumption in Denmark is high. With a population of 5.5 million, gross imports is steady at around 200 million litres. The latest year has seen downward pressure on price points with the value having dropped by about 15 per cent. There is a strong preference for red wine, which by volume accounts for about 75 per cent of the overall table wine market.

The Danish wine market continues to be very price sensitive with about 80 per cent of wines being sold through supermarkets and other self-service outlets. About 75 per cent of all wine sold in Denmark is retailed off-trade at price points of about A$12 or below.

Unlike the other Scandinavian countries, cask wine still has a relatively small share of roughly 20 per cent of the Danish market. There is no government monopoly on wine retailing in Denmark, as in the other Scandinavian countries.

In 2008, Danish gross wine imports were at just below 200 million litres of which about 90 million litres were in bulk. These figures do not include re-exports and a significant inward bound cross-border trade from mainly Germany.

Denmark remains one of Australia’s key wine export markets. In 2008, Australia exported 26 million litres to Denmark, up from 21 million litres in 2007, with an export value of A$59 million.

Today about 100 importers distribute more than 300 brands of Australian wine in Denmark. The uptake of new Australian brands has slowed down significantly due to a large number of newcomers entering the market over the past five years. Awareness of the variety of wines available from Australia is now beginning to filter down to the average consumer.

Competitive environment

In 2008, the major exporters of wine to Denmark were Chile, France, Australia, Italy, Spain and South Africa. France’s market share of 20 per cent in 2007 fell to 15 per cent in 2008.

Amongst the New World wine suppliers, Chile has been steadily increasing its market share in recent years. By the end of 2008 Chile held 16 per cent of the market. New World suppliers now hold about 40 per cent of the Danish wine market.

Australia's share of the Danish wine market is about 13 per cent.

The 10 major players in the Danish wine trade are:

• COOP
• Dansk Supermarked
• SuperGros
• V&S Wine
• Taster Wine
• Amka
• Chris Wine
• H.J. Hansen
• Philipson Wine
• Sigurd Müller Vinhandel

Tariffs, regulations and customs

The Ministry of Taxation together with the Danish Customs Service, controls tariffs and permissions to import liquor (eg. wine, beer and spirits). These authorities set the regulations and taxes for liquor imported into Denmark.

Import licences are required, but are readily available to the importer, who must provide a deposit in order to guarantee the correct procedures of importation. The deposit is refunded upon import clearance.

Current excise rates

Marketing your products and services

Market entry

Austrade Copenhagen assists Australian wine exporters by offering market entry and expansion services:

• Service to Australian wine exporters seeking a qualified Danish importer: The Business-to-Business Package.
• Service to Australian wine exporters already exporting to Denmark: The Winery Portrait Package.
• A key channel for delivering these services is www.australianwine.dk which provides comprehensive and current information in Danish about wine from Australia to wine trade, press, wine clubs, sommeliers, wine buyers and consumers in Denmark.
• As in previous years, Austrade plans to organise a large annual Australian wine testing event in May 2010 for existing and new-to-market wineries.

For further information please email Thomas Andersen or telephone +45 3527 0050. 

Distribution channels

Most of the larger Danish importers are already distributing one or more Australian wine brands. However, there are still gaps of opportunity for newcomers. With a number of new and established, small- and medium-sized importers without Australian labels in their portfolio, some are seeking to identify suitable suppliers. Many Australian exporters have concentrated their efforts in the Copenhagen area but more can be done to develop business with importers in other regions of Denmark.

In spite of the concentration of distribution in the large supermarket groups there is a tradition for many specialist wine shops in Denmark, both chains/alliances and independent shops. In addition, many hobby-based importers (or ‘garage-importers’) operate in the wine import and retail space. It is estimated that there are at least 1,000 wine importers in Denmark – most are very small with sales to family and friends. Most wine in Denmark is sold through retail rather than on-trade.

Research and direct market feedback suggests that online sales of wine is picking up. There are an increasing number of virtual wine retailers offering a variety of ‘packages’ and online social networks such as Facebook are increasingly being used for referral-promotion.

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au