Wine losing out to beer: promotion investments are ten times lower

Wine producers' net investments in TV ads annually amount to 1-2m euros, according to the estimates made by the representatives of the National Vine and Wine Producers Association (PNVV) and by some industry players. This is the first public information on this issue.

"I believe TV promotion revolves around 1m euros," said Valeriu Cotea, PNVV chairman.
"If you want to go on TV, it's useless to put up less than 100,000 euros," said the manager of a wine producer, who put net TV investments at 1-2m euros, but who wanted to remain anonymous. He meant that although involved sums are small, few companies in the industry could afford such campaigns.
Unlike the wine industry, brewers are extremely aggressive on the TV segment, and according to the estimates of Shachar Shaine, the chairman of URBB, the fourth largest player on the market, net sums earmarked for TV promotion get to 12m euros. From this point of view, there is no room for competition between the two industries.
While brewers have campaigns during the entire year, gaining steam during the summer, wine producers' initiatives are rather rare and are related to promotional offers.