Supply Chain analysis: Lebanon's wine industry

36
Supply Chain Analysis LEBANON’s Wine Industry DE LUSTRAC Aurélie DILIZIEN Tangi LAIZE Elise MOUKARZEL Joseph RENAULT Agathe ROBERT Vincent VILLEDEY Benoit

Transcript of Supply Chain analysis: Lebanon's wine industry

Page 1: Supply Chain analysis: Lebanon's wine industry

Supply Chain Analysis LEBANONrsquos Wine Industry DE LUSTRAC Aureacutelie DILIZIEN Tangi LAIZE Elise MOUKARZEL Joseph RENAULT Agathe ROBERT Vincent VILLEDEY Benoit

10452 km2 18 religions

BEFORE FARM GATE

Imported Materials bull Viticulture

o Rootstocks o Varietals o Additives

pesticides herbicides fertilizers

o Machines

bull Oenology o Oak Barrels o Inox tanks o Machines o Yeast o Oenology materials o Oenologue

bull Final Product o Bottles o Corks - Screw caps o Labels

Domestic Materials bull Viticulture

o Rootstocks o Additives

bull Oenology o Inox tanks o Oenologue

bull Final Product o Bottles

FARM GATE

Vine Grower bull Cooperative bull Independent bull Under-contract

AFTER FARM GATE

Distribution bull Individual effort bull Specialized company Fattal

Massoud Dima Food Vincenti Abed-El-Nour Diageo

POS bull Supermarkets bull Wine Cellars bull Grocery stores bull HORECAs

Consumer bull Showy bull No wine Culture bull Seasonable

Foreign Agent

Wine Maker bull Shareholder Company bull Family Business Exporters Individual effort

Legend Relationships bull Weak bull Medium bull Strong

Relationship location bull Inside Lebanon bull Outside Lebanon

History

Chateau Ksara estate founded in 1857 by the Jesuits Ksara is the oldest modern winery in Lebanon source wwwksaracom

Vineyard Location

Bekaa Valley 1241 ha (57) North of Lebanon 633 ha (29) Mount-Lebanon 256 ha (12) South of Lebanon 50 ha (2) Source ENITA 2003

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 2: Supply Chain analysis: Lebanon's wine industry

10452 km2 18 religions

BEFORE FARM GATE

Imported Materials bull Viticulture

o Rootstocks o Varietals o Additives

pesticides herbicides fertilizers

o Machines

bull Oenology o Oak Barrels o Inox tanks o Machines o Yeast o Oenology materials o Oenologue

bull Final Product o Bottles o Corks - Screw caps o Labels

Domestic Materials bull Viticulture

o Rootstocks o Additives

bull Oenology o Inox tanks o Oenologue

bull Final Product o Bottles

FARM GATE

Vine Grower bull Cooperative bull Independent bull Under-contract

AFTER FARM GATE

Distribution bull Individual effort bull Specialized company Fattal

Massoud Dima Food Vincenti Abed-El-Nour Diageo

POS bull Supermarkets bull Wine Cellars bull Grocery stores bull HORECAs

Consumer bull Showy bull No wine Culture bull Seasonable

Foreign Agent

Wine Maker bull Shareholder Company bull Family Business Exporters Individual effort

Legend Relationships bull Weak bull Medium bull Strong

Relationship location bull Inside Lebanon bull Outside Lebanon

History

Chateau Ksara estate founded in 1857 by the Jesuits Ksara is the oldest modern winery in Lebanon source wwwksaracom

Vineyard Location

Bekaa Valley 1241 ha (57) North of Lebanon 633 ha (29) Mount-Lebanon 256 ha (12) South of Lebanon 50 ha (2) Source ENITA 2003

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 3: Supply Chain analysis: Lebanon's wine industry

BEFORE FARM GATE

Imported Materials bull Viticulture

o Rootstocks o Varietals o Additives

pesticides herbicides fertilizers

o Machines

bull Oenology o Oak Barrels o Inox tanks o Machines o Yeast o Oenology materials o Oenologue

bull Final Product o Bottles o Corks - Screw caps o Labels

Domestic Materials bull Viticulture

o Rootstocks o Additives

bull Oenology o Inox tanks o Oenologue

bull Final Product o Bottles

FARM GATE

Vine Grower bull Cooperative bull Independent bull Under-contract

AFTER FARM GATE

Distribution bull Individual effort bull Specialized company Fattal

Massoud Dima Food Vincenti Abed-El-Nour Diageo

POS bull Supermarkets bull Wine Cellars bull Grocery stores bull HORECAs

Consumer bull Showy bull No wine Culture bull Seasonable

Foreign Agent

Wine Maker bull Shareholder Company bull Family Business Exporters Individual effort

Legend Relationships bull Weak bull Medium bull Strong

Relationship location bull Inside Lebanon bull Outside Lebanon

History

Chateau Ksara estate founded in 1857 by the Jesuits Ksara is the oldest modern winery in Lebanon source wwwksaracom

Vineyard Location

Bekaa Valley 1241 ha (57) North of Lebanon 633 ha (29) Mount-Lebanon 256 ha (12) South of Lebanon 50 ha (2) Source ENITA 2003

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 4: Supply Chain analysis: Lebanon's wine industry

History

Chateau Ksara estate founded in 1857 by the Jesuits Ksara is the oldest modern winery in Lebanon source wwwksaracom

Vineyard Location

Bekaa Valley 1241 ha (57) North of Lebanon 633 ha (29) Mount-Lebanon 256 ha (12) South of Lebanon 50 ha (2) Source ENITA 2003

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 5: Supply Chain analysis: Lebanon's wine industry

Vineyard Location

Bekaa Valley 1241 ha (57) North of Lebanon 633 ha (29) Mount-Lebanon 256 ha (12) South of Lebanon 50 ha (2) Source ENITA 2003

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 6: Supply Chain analysis: Lebanon's wine industry

Technical Data

bull Average vineyard price 25000- 40000 $ minimum (vs 108000 $ in France)

bull Pruning Guyot or Gobelet bull Density

ndash Guyot Max 5000 plants per ha ndash Gobelet Min 1600 plants per ha

bull Yield an average of 5 tons per ha

source JP Bel les paysages viticoles de la Bekaa Liban amp UVL 2011

Source Gregory Demarque

Source Gregory Demarque

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 7: Supply Chain analysis: Lebanon's wine industry

Wineries bull Number 49 and growing (they were 8 in

the 90rsquo(KHACHAN))

bull Size varies between 7 ha and 340 ha however most of them do not own their vineyard or only own a small part The most of the production is under-lease(ENITA)

bull Type 2 types family business or limited company with shareholders

bull Another type Cooperative only 2 in Lebanon

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 8: Supply Chain analysis: Lebanon's wine industry

Domainrsquos name Estate Production Bottles

Exportation ()

Yied Sauvignon Blanc (Monocepage)

Blending with other varieties

Zahle Chacircteau Khoury 15 ha 50 000 20 20-35 hlha --no -- no

Chacircteau Ksara 70+270 under lease

2 700 000 45 55-75 hlha -- no Yes

Coteaux du Liban

6+10 ha under lease

60 000 100 40 hlha -- no -- no

Domaine de Baal

45 ha 12 000 30 18 hl ha -- no Yes

Domaine Wardy

35+10 ha under lease

250 000 65 16-45 hlha Yes Yes

West Bekaa

Cave Kouroum 200 ha 700 000 40 35-40 hlha -- no Yes

Chacircteau Ka 70 150 000 40 30-35 hlha -- no Yes

Chacircteau Marsyas

55 ha 50 000 15 60 hlha -- no Yes

Chacircteau Kefraya

150+210 ha (under lease)

2 000 000 33 40hlha -- no yes

Chacircteau Qanafar

10 + 5 under lease

12 000 -- 10 hlha -- no -- no

Chateau St Thomas

30 + 35 under lease

450 000 65 30-55 hlha -- no Yes

Domaine de Mas Helios

8 ha 3 000 -- -- -- no -- no

Domaine des Tourelles

20 + 20 under lease

150 000 35 45-50 hlha -- no -- no

Heritage 5 + 50 ha under lease

300-400 000

60 -- -- no Yes

Massaya 17 + 23 ha under lease

300 000 85 40-60 hlha -- no Yes

Baalbek

Chacircteau Barka 7 ha 5 000 -- -- -- no Yes

Cocircteaux drsquoHeacuteliopolis

250 ha 6 000 Cooperation

Wineries size in the Bekaa

region Source Zawaq 2012

Ixsir winery

Chateau Ksara

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 9: Supply Chain analysis: Lebanon's wine industry

The Wine

bull Quality wine however lacks identity

bull If my wine is excellent why is it important to know that it doesnrsquot fall within the current ldquopolitically correctrdquo norms - Serge Hochar Chateau Musar

bull Heavy full bodied and strong in alcohol wines Some wines can have a 15 alcohol content due to the hot weather in summer

bull Bernard Burtschy wine editor for the French newspaper Le figaro said If we compare the Lebanese wine to the nearby Israeli wines Lebanon is light years ahead

bull 7500000 bottles produced annually (UVL)

Source vivinocom

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 10: Supply Chain analysis: Lebanon's wine industry

Laws and Regulations Divided into three main areas

1) Production sale and importation of wines

Defining constituents and nature of

- Lebanese wine

- Lebanese concentrated must

2) Fermentation of

bull dry

bull sparkling

bull sweet semi-sweet wines

bull liqueurs and fortified wines

3) - Use and provenance of grapes

- Cultivation methods for grapes used to make wine

- Guidelines for the wine making process

[4) Rules for labeling and origin designation]

Source Union Vinicole du Liban 2011 | infolebanonwinescom

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 11: Supply Chain analysis: Lebanon's wine industry

Vine plants (httpwwwvignevin-sudouestcompublicationsvoyage-etudedocumentssynthese-

libanpdf)

bull Most of the grapes varieties and rootstocks are imported the local ones are of lesser quality

bull Popular grape varieties ndash Carignan Grenache Merlot CS Obeidy Marweh

chardonnay muscat viognier

bull Adaptation of the rootstock to the limestone soil ndash 41B R 110 R 140

Source Greg Demarque

Source grussonmoulinblogspotcom

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 12: Supply Chain analysis: Lebanon's wine industry

Before farm gate ndash imports

Country top 5 USD thousand Share in Lebanonrsquos imports ()

France 130 345

USA 126 334

Syrian of Arab Republic

45 119

Spain 38 101

Italy 35 93

Total 373 995

Presses Crushers and machinery used in the manufacturer of winefruit juices

Source buchervaslincom

Some Inox tanks are locally produced but the quality is mediocre (ENITA) thus leaving the majority imported

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||8435|||4|1|1|1|1||2|1|1)

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 13: Supply Chain analysis: Lebanon's wine industry

Casks barrels vats of wood

Before farm gate ndash Imported

Country USD thousand Share in Lebanonrsquos imports ()

France 1 125 982

Hungary 17 15

Source midwestsuppliescom

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||4416|||4|1|1|1|1||2|1|)

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 14: Supply Chain analysis: Lebanon's wine industry

Before farm gate ndash imports

Glass bottle carboy and other container of glass

Country top 5 U$S thousand Share in Lebanonrsquos imports ()

Egypt 8 787 311

Saudi Arabia 4 961 175

Syrian Arab Republic

3 456 122

Kuwait 3 144 111

Italy 2 833 10

Total 23 181 819

Source wikipedia

(httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422||||7010|||4|1|1|1|1||2||)

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 15: Supply Chain analysis: Lebanon's wine industry

Stoppers including corks and screw caps

(WINE INDUSTRY IN THE BEKAA VALLEY LEBANON

FOOD-PROCESSING INDUSTRY AS A BASIS FOR COMMUNITY DYNAMICS AND LOCAL SOCIO-

ECONOMIC DEVELOPMENT

Country USD thousands Share in Lebanonrsquos imports ()

Portugal 1 453 93

France 66 42

Spain 41 26

China 1 01

Denmark 1 01

Total 1 562 100

Source viezinecom

European Scientific Journal June 2014 SPECIAL edition vol2 ISSN 1857 ndash 7881)

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 16: Supply Chain analysis: Lebanon's wine industry

bull Hubert de Bouard (Chacircteau AngelusIxsir) bull James Palgeacute (Chacircteau Ksara) bull Gabriel Ribeacutero (Chacircteau Sociando Mallet

then Ixsir) bull Serge Hochard (Chacircteau Musar) bull Fabrice Guiberteau (Kefraya)

Source sudouestfr

And Enologistshellip

Source winetimeshkcom

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 17: Supply Chain analysis: Lebanon's wine industry

Wine of fresh grapes (httpwwwtrademaporgCountry_SelProductCountryaspxnvpm=1|422|

|||2204|||4|1|1|1|1||2|1|1)

Country USD thousand

Share in Lebanonrsquos imports

Imported quantity (tons)

Imported growth in value between 2009-2013 ( pa)

France 10 593 876 778t 2

Italy 899 74 129t 14

Spain 309 26 111t 5

Chile 58 05 13t 24

Total 11 859 981

Source Gregory Demarque

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 18: Supply Chain analysis: Lebanon's wine industry

EXPORT MARKETS

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 19: Supply Chain analysis: Lebanon's wine industry

EXPORT MARKETS

Export Turnover $166 million (2014)

In 46 countries

Growth rate2013 +15

22 million bottles

Main actors Ksara Chacircteau Musar Kefraya

Trend and actorshellip

Source Blominvest Bank wwwtrademaporg

wwweconomygovlb

All Lebanese wine producers are doing an individual effort to sell their wines (Khachan)

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 20: Supply Chain analysis: Lebanon's wine industry

EXPORT MARKETS Dynamic marketshellip

wwwtrademaporg

UK ndeg1 pricebtl

Top 5 markets almost 23 of the Export Turnover

Exports in France are dominated with laquo entry level raquo wines whereas wines exported to the UK are of higher quality (ENITA2003)

France ndeg1 volume

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 21: Supply Chain analysis: Lebanon's wine industry

EXPORT MARKETS hellip and perspectives

$739btl (2012) + 60 since 2009

EXPORT MARKETS hellip and perspectives

Source Blominvest Bank

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 22: Supply Chain analysis: Lebanon's wine industry

Local market- statistics bull Consumption 27 bottlecapita vs 15

bottle 10 years ago (Khachan)

bull Half the population is Muslim

bull Tremendous growth over the past decade bull Taxes Excise tax 200LL (010euro per bottle)

duty tax 15 of valueliter (Lebanese Customs)

bull Shipping cost is about 15 Margin should be at least 50 (for expensive bottles-grand cru) and Up to 100 (for cheap wines- cost 1 to 3euros) (Khachan)

Taxes

AOC Dry wine 35

VDF-IGP 53

Champagne 23

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 23: Supply Chain analysis: Lebanon's wine industry

Local market

bull Hillebrand has operations in Lebanon

bull Export sales through diaspora (as consumers)

bull Oenotourism impact of Syria on tourism in Lebanon (75000 tourists -gt 25000 in Ksara) ndash Club grappe still offers tours ndash Vinifest will take place in Oct 15

bull In the local market there is a monopole executed by 5 giant companies for distribution like Fattal Massoud Dima Food Vincenti Abed El Nour and diageo (Khachan)

Vinifestlebanoncom

Clubgrappecom

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 24: Supply Chain analysis: Lebanon's wine industry

Point Of Sale bull Retail Carrefour Spinneys Le charcutier Aoun Monoprix TSC

bull Wine Cellars Enoteca la maison du vin Vintage Aziz La cigale Nicolas Burgundy les caves de Taillevent Le comptoir La cave de Joel robuchon la maison du sommelier vineyards

bull Wine makers shops (direct sales) Domaine des tourelles Chateau Musar Adyar

bull HORECAs ldquoThe gatheringrdquo for example has a wide selection of wines and organizes wine tasting events such as Chateau du Tertre Chateau Giscours Chateau Talbot

bull Wine bars CRU Le merlot V comme vin

bull Centralized in Beirut

bull Many wine tasting events (Les mercredis drsquoEnoteca Nuit blanche des tourelles wine tasting with honor guests Chateau Palmer at Vintagehellip)

bull In a typical wine cellar you will find approximately

ndash 70 French wines

ndash 15 European and new world wines

ndash 10 Lebanese wines

ndash 5 Other alcohol and spirits

Enotecacomlb Source Zawaq

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 25: Supply Chain analysis: Lebanon's wine industry

Consumer trends bull Previously only Arak (an Aniseed

spirit) and whiskey was consumed

bull Now to drink some wine became

the new trend

bull Lack of wine culture and

knowledge

bull Seasonable consumer

bull roseacute in summer near the pool bull red wine in winter near the chimney

bull Search for the cheapest wine but this tendency changed

bull Lebanese spend more and more for good quality wines

bull They drink wine out and discover new tastes and regions

telegraphcouk Source Carlos Khachan

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 26: Supply Chain analysis: Lebanon's wine industry

Lebanonrsquos SWOT Analysis Strengths

Cheap labor

Favorable climate

Quality wine

Diversified soil with a dominance of Limestone which is rare in other areas of the planet

Competition and consumption in growth

Improvements in technical issues and modernization

Weaknesses

Political instability

No terroir knowledge

No collective spirit

Lack of identity

Known under the form of certain brands and not as Lebanese wine

Opportunities

Growing market (+15 export)

Many areas have vine growing potential

Foreign investments Carlos Ghosn

Rich in history and culture touristic and marketing elements

Threats

Islamist threat

Inputs costs

No collective work

Lebanese Wine Chain

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 27: Supply Chain analysis: Lebanon's wine industry

1 Million euros questionhellip

Where to invest

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 28: Supply Chain analysis: Lebanon's wine industry

Invest in a glass factoryhellip hellip and be the leader from the first year

100patates

1 000 000 euro

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 29: Supply Chain analysis: Lebanon's wine industry

Very cheap process Raw material

= wealth of Lebanon

Almost free

YIELD OF 95 1T of melted glass= 950kg of

bottle

Sand and Recycled Bottles

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 30: Supply Chain analysis: Lebanon's wine industry

Take avantage of the market

Consumption of 70 million bottles

95 of import

A 21 million euro turnover market

wwwlorientlejourcom 16122013 wwwtrademaporg

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 31: Supply Chain analysis: Lebanon's wine industry

40

40

10 10

Production line

Raw material

Marketing

Labor

Investment of the century

Production of 50 million bottlesyear

035eurobottle 175 million euro turnover

Versus 21 million euro spent on imports Source Etude de lrsquoimplantation drsquoune verrerie au Seacuteneacutegal AElhadjily and al 1995

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 32: Supply Chain analysis: Lebanon's wine industry

40

40

10 10

Production line

Raw material

Marketing

Labor

The investment

Produce 50 million bottlesyear

035eurobottle 175 million euro turnover

Against 21 million euro on the import market

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 33: Supply Chain analysis: Lebanon's wine industry

BE THE WOLF OF BEIRUT

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 34: Supply Chain analysis: Lebanon's wine industry

References bull Books and journals

ndash Zawaq guide des vins du Liban Muriel Rozelier Edition Tamyras 2012 ndash Le commerce du levant Numeacutero 5623 Lrsquoembellie du vignoble libanais 2011 ndash La filiegravere viticole au Liban analyse et propositions pour une eacutevolution Ministegraveres de

lrsquoAgriculture et de la Pecircche Etude reacutealiseacutee par lrsquoENITA de Bordeaux sous la direction de Jean-Philippe ROBY 2003

ndash Baseline Study for Table Grapes and Potatoes in Lebanon Mohamad Abou Zeid National Consultant 2005

ndash The many faces of the Lebanese wine industry Ministry of economy and trade MOET newsletter Sept 2007 Lebanon

ndash Le paysage viticole de la Bekaa JP Bel Paris 2009 ndash Antoun L B (2014) WINE INDUSTRY IN THE BEKAA VALLEY LEBANON European

Scientific Journal ndash Wehbe La protection juridique des indications geacuteographiques au Liban Retrieved 2014

from httpwwweconomygovlb

bull Interviews ndash Dr Carlos Khachan Sommelier and founder of club Grappe and la maison du sommelier

in Beirut By Joseph Moukarzel ndash Hubert de Bouaumlrd Le Liban peut devenir une tregraves grande reacutegion vinicolelaquo 12-12-2011 |

par Muriel Rozelier | source Le commerce du Levant ndash Steacutephane Derenoncourt faire connaicirctre les vins du Liban comme un produit de qualiteacute

exige de reacuteveacuteler son terroir 12-08-2011 | par MR ndash Karen Matta and Wael Bou Jaoude owners of CRU a wine bar in Beirut by Alex Taylor

The daily star

bull Websites ndash wwwlebanonwinescom ndash wwwcustomsgovlbcustoms ndash wwwtrademaporg

Thank you

Page 35: Supply Chain analysis: Lebanon's wine industry

Thank you