Tuesday , July 27 2021

In 2018, under the influence of the sharp decline in consumption, premium wineries are betting on exports

The "North" for boutique wineries was to use the element of the crisis itself: appreciation of the dollar. This allowed them to recover the country in sales through the export and penetration of new markets, both in Asia and Europe.

In a dialog with domain.com, Francisco Do Pico, Director of Institutional Relations Bodega Trapiche, from the Peñaflor groupHe said that 2018 was a challenge both in the internal and external market.

"In general, the general state of mass consumption has caused a decline in sales of the industry in all segments, other than premiums. In terms of exports, it is possible that wine bottles have come to an end as well as in 2017. Although there was improvement in recent months, half was not good, "he said. It should be clarified that the final number will be known when the annual industry data is consolidated.

Asked about the effects of the mega-devaluation of 2018 and the high interest rates in the wine sector, he noted that the devaluations in the wine sector did not generate large immediate jumps in exports, as the guilt put by Peñaflor Group in 130 countries depends on the category construction, brand and stable price point. "Bearing in mind this, the exchange rate jump helps to improve contributions, freeing up resources to invest in advertising or activating with importers, supermarkets and restaurants," he said.

He added that the current rate level "is a problem for a company operating on the local market and a double problem for which it also exports, as Argentinian export wineries compete with companies from Chile, Australia, New Zealand and Europe that have access to loans with low and very long-term rates ".


In this line, Noelia Torres, a completely new oenologist of the Hand Malen (a boutique winery for the Molinos group), he maintained a dialogue with this portal, that although in the quality and volume last year "was wonderful for the winery", the sale "was a complicated year".

"Domestic consumption is tough, but the export margin is good." With Hand Malen we reach the United States, Canada, the United Kingdom and Brazil, and we have something in Peru in Uruguay and Paraguay ", he explained.

Torres said the winery exported to China and added that the idea is to increase and make it in all markets. "50% of our production goes to exports, and the other 50% of domestic consumption," he said.

Regarding the 2019 projections, Did Pico suggest that "the wine sector must first consider how to transfer Malbeck to its main market, the United States, where it sharply declined as an industry in 2018.

"We also need to address the problem of tariffs in key markets such as Europe, China and Mexico, and get strong resources for the generic promotion of Argentine wine abroad. Also, we must carefully monitor the evolution of the real exchange rate, especially since the fall in fees and the rise in retention means that our dollar is five pesos below the market price, "he said.

According to the Bodega Trapiche Institutional Relations Director, Free Trade Agreements or Resources for Promotion are needed. "Our competitors generally have both instruments to make use of exports." In what the internal market does, we must innovate more in communication, product and packaging. "We are a conservative industry and we are learning to innovate", he stressed.

Regarding the pricing strategy in the context of high inflation, he said they are trying to preserve the profitability of each product with increases in line with the context of consumption. "The category this year falls on average 6%, and we lost 20% of the volume in five years as an industry. You have to know how to have competitive prices that generate a reasonable return, but that does not reduce demand. hyper atomized and competitive. There is no fixed price for the winery, "he said.

On the other hand, the winner of Ruka Malen says that in connection with international business, the brand has been launched in Brazil and successfully re-opened in the United Kingdom and the United States.

"In the course of 2019, Ruka Malen will continue to bet on growth by extending brand communication to continue generating knowledge about it in consumers. In return, we will have some novelties as a proposal for innovative wines that express the restless spirit of winery ", he assured.


And he concluded: "What we are looking for is that the varieties are very marked, but at the same time they are complex wines, long and good in the mouth, and for this we need the vineyard to be great. there are good temperatures, that there is no humidity and that there is good health in the plants.

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