September 20th, 2013
PVE Owners’ Conference
How do I get my wines
outside the U.S.?
How The Vines can help
Led by Pablo Giménez Riili
AGENDA FOR SESSION
ARGENTINE WINE EXPORTS
EXPORT STATISTICS - SEMESTER 1, 2013
TARGET MARKETS
BRAZIL
CANADA
CHINA
DENMARK
MEXICO
UNITED KINGDOM
ARGENTINE WINE EXPORTS
EXPORT STATISTICS - SEMESTER 1, 2013
• Total wine exports (wine & must)
USD 517.8 million and 179.7 million liters.
• Bulk Wine
Exports continue to decline.
• 70 % of bottled wine exports sent to 5 main
destinations:
US, Canada, UK, Netherlands and Brazil.
WINES OF ARGENTINA’S TARGET MARKETS
ANNUAL CHANGE OF SHARE IN US$ FOB
ARGENTINE WINE EXPORTS
EXPORT STATISTICS - SEMESTER 1, 2013
• Bottled Wine Price Segments
Steady decline in lower segments;
Significant growth in upper segments
(middle and high).
• Leading Segment
Ranging from USD 40 to USD 90 per case.
Wineries avoid exports to lower
segments.
ARGENTINE WINE EXPORTS
EXPORT STATISTICS - SEMESTER 1, 2013
• Sparkling Wines
Chile continues to be the main
destination and growing;
Brazil remains stable.
• Consumers’ Preference
56.2 % of bottled wine exports consisted
in red varietals (Malbec and Cabernet
Sauvignon)
TYPE OF WINE AND COLOR
ANNUAL CHANGE OF SHARE IN VOLUME
ARGENTINE WINE EXPORTS
EXPORT STATISTICS - SEMESTER 1, 2013
• Brazil
Outstanding growth in both revenue and volume.
Except for Brazil, all South American destinations fell in
volume
• Europe
Russia, Ireland and the UK had the most outstanding rates;
Denmark and Germany also increased but are still recovering from last
year’s decline.
• Asia
The situation worsened, especially in Japan, China and Hong
Kong.
BRAZIL
KEYS TO THE WINE MARKET DEVELOPMENT OF BRAZIL
• Significant export market for Argentine
bottled wines.
• Relative high value of the Brazilian real
compared to the Argentine peso.
• Country’s economic growth.
• Expansion of the Brazilian middle class
with
increasing purchasing power.
BRAZIL
In 2011, Brazil became the
third largest export
market
for Argentine wines in
value, replacing the U.K.,
and the
fourth largest market in
volume.
BRAZIL IN NUMBERS
3rd USD FOB destination for Argentine
exports
(USD 55,000 in 2012; 1,500 cases of 9Lts.)
•
Estimates show that in 2016 the wine
import market will represent USD 372
million (42% increase compared to the
current
million). is of Brazilian
•
80% of USD
wine261
consumption
origin;
Imported wines are increasing their
presence.
•
ARGENTINA AND CHILE LEAD BRAZIL’S IMPORT MARKET
Argentina & Chile:
Account for 60% of the import market
(182 Argentine wineries; over 800 Argentine wine brands in the
market)
Are exempted from a 27% import tax rate
Wines imported from Portugal, Italy, France, Spain, South Africa,
Uruguay, Australia, the United States have higher prices on account
of taxes.
Argentine wines have in Malbec a very big advantage
to Chile.
BRAZIL’S WINE IMPORTS
BRAZIL
ARGENTINE WINE EXPORTS TO BRAZIL
BY PROVINCE OF ORIGIN
Mendoza 92,53%
San Juan 2,94%
Salta 1,85%
Neuquén 1,64%
La Rioja 0,72%
Río Negro 0,1%
•
WINE CONSUMPTION
PER CAPITA
• 1.8 Lts. per capita
BY REGION
São Paulo 50%
(338 M Lts.)
• 0.73 Lts. per capita
Fine Wine
(140 M liters)
30 M Brazilian
/ 110 M Imported Wines
It could reach 9 Lts. per capita
in the next 10 years.
RJ and
Midwest 19%
South/SouthEast 20%
North/NorthEast 11%
CANADA
CANADA
• Second main destination for Argentine wine
exports, after the United States.
ARGENTINE WINE EXPORTS
TO CANADA
• Expected to continue to be the largest export
market for Argentine wine together with the
United States.
• Per capita, Canadians consume four times more
Argentine wine than Americans.
• Strong switch in consumption habits from
beer to wine.
• Malbec is by far the favorite variety of the
Canadian market.
• Growing interest in the culture of wine.
CHINA
CHINA
• Significant growth over the last 10 years.
•
6th largest market for Argentine exports
(Compared to the 18th market only two years ago)
• In 2012, 130 Argentine wineries sold wine to China
(Compared to 76 wineries in 2009)
• Attention is drawn to Cabernet Sauvignon and Merlot
(With Malbec coming third on the list)
• Strong marketing promotion programs
(By the Argentine wine industry and the government of the province of
Mendoza)
• Consumers look for elegance, distinction, and original, good
quality packaging,
(Aspects that are present in a large number of Argentine
products)
DENMARK
DENMARK
• Very promising outlook for Argentine exports in the
near future.
• Among the main markets for Argentine wine exports,
Ranking 11th in exports by value in 2012.
• High consumption : 43 liters per capita.
• Argentine exports totaled USD 9.5 million and 4.3
million Lts.
in the 1st semester.
Export growth rates were of 39% and 87%,
respectively, compared
to 2012.
MEXICO
MEXICO
• Major business opportunity.
• Wine Consumption: 27 million Lts. in 1010 / 55
million Lts. In 2012
(more than 100% growth)
• 30% of wines consumed are of national origin.
• In 2018:
180 million liters of wine will be consumed
three times more than the current
figure
national participation will pass
from 30% to 50%.
•Significant barriers: Struggle for water shortages &
UNITED KINGDOM
U.K.
• Total UK wine sales are expected to stagnate
further in 2013
as the austerity environment continues.
• The wine market may return to growth, but it is
unlikely to
experience the level seen before 2007.
• While consumers limit consumption volume and opt
for
better-quality wines.
• The fastest-growing red and white wines were in
the ($8) price
range.
• Consumers become more environmentally responsible.