Nora Z. Favelukes

Adult
Population
Gallons per
Adult
134
1.05
147
1.78
222
211
194
184
164
173
154
2.98
2.81
2.58
2.46
2.29
2.13
1.96
For the 19 th year in a row wine sales have continued to grow in the US market, at a rate of 2.9% in
2012
228
3.08
70 75 80 85 90 95 00 05 10 12
Source: Census Bureau – Wine Information Group
Source: Census Bureau, Beverage Information Group

(millions by segment)
100
78
50
Beer / Liquor
Source: Wine Market Council 2012
Non Drinkers Wine Drinkers

(Percentage by segment)
Source: Wine Market Council 2012

2012
(Percent by generation)
40
Older Millennials
19%
Younger Millennials
9%
28
Source: Wine Market Council 2012
Millennial
20
Gen X Baby Boomer 67+
12

( Percentage )
Source: Wine Market Council 2012

Wine Shipments by Volume 9 L Cases
January / July – 2012/2013
18,000.00
16,000.00
14,000.00
12,000.00
10,000.00
1%
8,000.00
6%
6,000.00
14%
4,000.00
7%
13 %
10%
2,000.00
17%
0.00
Italy France
2012 15,557.20
4,941.60
Australia
7167.6
Argentina
New
Zealand
Spain Chile
3,321.80
1,518.70
2,517.70
3,449.60
2013 15,685.90
5,622.00
7562.2
3,561.60
1,779.80
2,839.90
3,806.90
Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Imported Wine Shipments by Value
January/July - 2012/2013
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
6%
12%
5%
12%
19%
0
Italy France Australia Argentina
2012 696,153
2013 739,491
439,506
491,405
221,207
233,049
131,522
146,751
Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates
New
Zealand
105,281
125,169
15%
Spain
108,457
125,071
10%
Chile
112,500
123,507

Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Nielsen Report FDL
(Food, Drug & Liquorstores)
Argentine Wine Sales:
4 Weeks period ending on August 17, 2013:
Volume +7.5%
Dollars + 10.2% %
52 weeks ending on August 17, 2013
Volume 6.3%
Dollars 12.6%
Retail wine numbers are strong at $13.3 billion in 2012 (Nielsen)
Source:
Nielsen Report FDL (Food, Drug & Liquorstores) August 2013

Nielsen Report FDL
(Food, Drug & Liquorstores)
Malbec Wine Sales:
4 Weeks period ending on August 17, 2013:
Volume +12.1%
Dollars + 11.5%
52 weeks ending on August 17, 2013
Volume 13%
Dollars 12.7%
Source:
Nielsen Report FDL (Food, Drug & Liquorstores) August 2013

U.S. Imports: Bottled Dessert and Table Wines Over 14%
2012 -2013
Value in Dollars
Country
2012 2013
Change
%
Shipment in Cases
2012 2013
Change
%
Italy $ 43,517.00 $ 57,353.00 32% 293.1
406.3
39%
Argentina $ 38,606.00 $ 44,180.00 14%
France $ 31,576.00 $ 42,654.00 35%
Spain $ 25,089.00 $ 31,334.00 25%
Australia $ 32,693.00 $ 29,522.00 -10%
Portugal $ 20,917.00 $ 23,185.00 11%
Chile $ 9,000.00 $ 10,895.00 21%
Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates
610.3
212.2
395.1
411.8
217.6
118.3
691.9
13%
263.2
24%
486 23%
336.2
-18%
235 8%
138.8
17%

Top 15 Varietals Exported to the U.S
August 2012-2013
Varietal
Malbec
Torrontes
US$ FOB
$ 188,629,731
Generic Reds $ 20,659,091
$ 6,761,368
$ 2,710,940
$ 1,809,591
9 Liter Cases
US$ FOB
Per Case
4,817,697 $ 39.15
588,113 $ 40.89
397,255 $ 52.00
212,382 $ 35.19
186,919 $ 36.17
129,753 $ 24.54
55,250 $ 49.07
55,969 $ 32.33
80,370 $ 22.11
42,145 $ 37.61
45,648 $ 30.39
38,713 $ 34.73
21,797 $ 53.36
29,293 $ 36.36
39,633 $ 25.90
Source: Top Varietals Exported to US 2012-2013 – Vinos de Argentina

% Change by Color YTD to June, 2013
Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

 Millennial generation wine of choice
 It gave Argentina a unique identity in the world
 Critical success factors for sommeliers: competitive pricing and delivering taste/quality
 Sold at all price levels:
 Retail mostly in the $ 8 - $30 a bottle range
 Restaurant mostly in the $30 -$100 a bottle range.
Source: Bordeaux Management School – BEM – France

Argentine Malbec Exports to the US: 2004 - 2012
YEAR US$ FOB CHANGE
SHARE
OVER
TOTAL
2004
2005
2006
2007
2008
2009
2010
14,714,189
21,038,556
33,144,822
49,800,539
79,999,908
112,489,268
147,173,588
///
43.0%
57.5%
50.3%
60.6%
40.6%
30.8%
35.1%
36.7%
43.8%
48.9%
54.6%
59.3%
65.1%
2011 173,204,448 17.7% 67.3%
2012 187,919,808 8.5% 68.7%
Source: Argentina Exports Statistics from Wines of Argentina
9 LITERS
CASES
CHANGE
477,569
626,572
901,645
1,314,011
2,114,945
3,159,340
4,164,909
4,581,445
4,713,094
///
31.2%
43.9%
45.7%
61.0%
49.4%
31.8%
10.0%
2.8%
SHARE
OVER
TOTAL
25.5%
27.8%
34.9%
40.3%
47.8%
54.3%
59.9%
64.7%
67.3%

Argentine Malbec Exports to the US: 2004 - 2012
200 000 000
180 000 000
160 000 000
140 000 000
120 000 000
100 000 000
80 000 000
60 000 000
40 000 000
20 000 000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
9 Liters Cases
Source: Argentina Exports Statistics from Wines of Argentina
U$D Value

Bottled Wine Exports to U.S.
Price Segments 2012-2013
Price Segment
SEG 1 - Px ≤ US$ 18
2012
14,860,149
SEG 2 - US$ 18 < Px ≤ US$ 29 80,072,708
US$ FOB
2013
Change
%
VOLUME (9 LITER
CASES)
2012 2013
Change
%
9,174,706 -38.30% 986,285 601,962 -39.00%
77,999,371 -2.60% 3,387,441 3,270,468 -3.50%
SEG 3 - US$ 29 < Px ≤ US$ 40 90,590,884 102,196,844 12.80% 2,632,397 2,964,684 12.60%
SEG 4 - US$ 40 < Px ≤ US$ 90 132,239,689 139,464,470 5.50% 2,394,692 2,557,665 6.80%
SEG 5 - Px > US$ 90
TOTAL BOTTLED WINE
30,910,987 31,012,811 0.30% 215,273 227,534 5.70%
348,674,417 359,848,202 3.20% 9,616,087 9,622,311 0.10%
Source: CAUCASIA Wine Thinking

More wine is being sold in drug stores and other chains such as Walgreens and Dollar General
The sweet spot for wine pricing is
$10 – $14.99
Online wine sales are finally coming into their own, with 74% of consumers purchasing wine from winery websites and
68% from Wine.com
Source: Trends in the US Wine Industry in 2013
– Liz Thach MW

The hottest varietals are still Moscato,
Malbec and sweet
red blends.
Americans still enjoy buying wine from Argentina, New
Zealand and Spain, but wine purchases have declined from Australia and
Germany.
Source: Trends in the US Wine Industry in 2013
– Liz Thach MW
The US still imports almost 30% of all wine sold in the country.

Top 25 Argentine Exporters to the U.S.
$ FOB / 9 L
Winery $FOB 9 L CASES
CASE
Esmeralda
Peñaflor
Trivento
Escorihuela
Norton
Puerto Ancona
$43,241,584.22 1,060,035
$24,426,798.69 871,411
$11,935,159.95 461,902
$10,617,613.55 262,260
$ 9,106,814.16 187,648
$ 8,249,660.88 155,553
$ 40.79
$ 28.03
$ 25.84
$ 40.49
$ 48.53
$ 53.03
Chandon
Zuccardi
$ 8,029,701.79
$ 7,535,341.89
138,397
210,626
$ 58.02
$ 35.78
Dominio Del Plata $ 7,304,834.35 140,055
Doña Paula  $ 6,081,209.00 134,048
$ 52.16
$ 45.37
Source: Top Argentine Exporters of Argentina – Vinos de Argentina

Top 25 Argentine Exporters to the U.S. – Cont’d
Winery $FOB 9 L CASES
$ FOB / 9 L
CASE
Diageo Argentina
Finca La Celia
Valentin Bianchi
Lavaque
Pascual Toso
Leoncio Arizu
Salentein
Flichman
Fincas Patagonicas
La Rural
Florida Del
Tupungato
Bodegas Fabre
Pernod Ricard
Alta Vista
Viña Cobos
$ 4,939,806.40 82,784.00
$ 4,498,478.51 211,221.00
$ 4,436,676.70 171,635.00
$ 4,102,160.32 130,291.00
$ 3,975,821.42 110,451.00
$ 3,740,393.53 74,549.50
$ 3,541,245.24 99,594.00
$ 3,419,196.67 98,040.00
$ 3,030,063.80 82,172.83
$ 2,981,288.01 77,181.33
$ 59.67
$ 21.30
$ 25.85
$ 31.48
$ 36.00
$ 50.17
$ 35.56
$ 34.88
$ 36.87
$ 38.63
$ 2,890,177.99 19,101.08 $ 151.31
$ 2,819,394.01 64,859.00
$ 2,757,542.24 71,468.00
$ 2,612,446.82 49,700.83
$ 2,587,115.00 31,457.17
$ 43.47
$ 38.58
$ 52.56
$ 82.24
Source: Top Argentine Exporters of Argentina – Vinos de Argentina