German Wine - Industry Structure

Industry Structure

The German wine industry consists of many small vineyard owners. The 1999 viticultural survey counted 68 598 vineyard owners, down from 76 683 in Western Germany in 1989/90, for an average size of 1.5 ha. Most of the 40 625 operators of less than 0.5 ha should likely be classified as hobby winemakers. Many smaller vineyard owners do not pursue viticulture as a full-time occupation, but rather as a supplement to other agriculture or to hospitality. It is not uncommon for a visitor to a German wine region to find that a small family-owned Gasthaus has its own wine. Smaller grape-growers who do not wish to, or are unable to, commercialise their own wine have several options available: sell the grapes (either on the market each harvest year, or on long-term contract with larger wineries looking to supplement their own production), deliver the grapes to a wine-making cooperative (called Winzergenossenschaft in Germany), or sell the wine in bulk to winemaking firms which use them in "bulk brands" or as a base wine for Sekt. Those who own vineyards in truly good locations also have the option of renting them out to larger producers who will handle the entire operation of the vineyard.

5 892 vineyard owners owned more than 5 ha each in 1999, accounting for 57% of Germany's total vineyard surface, and it is in this category that the full-time vintners and commercial operations are primarily found. However, truly large wineries, in terms of their own vineyard holdings, are rare in Germany. Hardly any German wineries reach the size of New World winemaking companies, and only a few are of the same size as a typical Bordeaux Grand Cru Classé château. Of the ten wineries considered as Germany's best by Gault Millau Weinguide in 2007, nine had 10,2 — 19 ha of vineyards, and one (Weingut Robert Weil, owned by Suntory) had 70 ha. This means that most of the high-ranking German wineries each only produces around 100,000 bottles of wine per year. That production is often distributed over, say, 10-25 different wines from different vineyards, of different Prädikat, sweetness and so on. The largest vineyard owner is the Hessian State Wineries (Hessische Staatsweingüter), owned by the federal state of Hesse, with 200 ha vineyards, the produce of which is vinified in three separate wineries. The largest privately held winery is Dr. Bürklin-Wolf in the Palatinate with 85,5 ha.

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