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September 20 th, 2013 PVE Owners’ Conference. How do I get my wines outside the U.S.? How The Vines can help Led by Pablo Giménez Riili.

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Presentation on theme: "September 20 th, 2013 PVE Owners’ Conference. How do I get my wines outside the U.S.? How The Vines can help Led by Pablo Giménez Riili."— Presentation transcript:

1 September 20 th, 2013 PVE Owners’ Conference

2 How do I get my wines outside the U.S.? How The Vines can help Led by Pablo Giménez Riili

3 AGENDA FOR SESSION ARGENTINE WINE EXPORTS EXPORT STATISTICS - SEMESTER 1, 2013 TARGET MARKETS BRAZIL CANADA CHINA DENMARK MEXICO UNITED KINGDOM

4 ARGENTINE WINE EXPORTS EXPORT STATISTICS - SEMESTER 1, 2013 Total wine exports (wine & must) USD million and million liters. Bulk Wine Exports continue to decline. 70 % of bottled wine exports sent to 5 main destinations: US, Canada, UK, Netherlands and Brazil.

5 WINES OF ARGENTINA’S TARGET MARKETS ANNUAL CHANGE OF SHARE IN US$ FOB

6 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.

7 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)

8 TYPE OF WINE AND COLOR ANNUAL CHANGE OF SHARE IN VOLUME

9 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.

10 BRAZIL

11 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.

12 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.

13 BRAZIL IN NUMBERS 3 rd 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 USD 261 million). 80% of wine consumption is of Brazilian origin; Imported wines are increasing their presence.

14 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.

15 BRAZIL’S WINE IMPORTS

16 BRAZIL

17 WINE CONSUMPTION PER CAPITA 1.8 Lts. per capita (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. BY REGION

18 CANADA

19 CANADA Second main destination for Argentine wine exports, after the United States. 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. ARGENTINE WINE EXPORTS TO CANADA

20 CHINA

21 CHINA Significant growth over the last 10 years. 6 th largest market for Argentine exports (Compared to the 18 th 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).

22 DENMARK

23 DENMARK Very promising outlook for Argentine exports in the near future. Among the main markets for Argentine wine exports, Ranking 11 th in exports by value in High consumption : 43 liters per capita. Argentine exports totaled USD 9.5 million and 4.3 million Lts. in the 1 st semester. Export growth rates were of 39% and 87%, respectively, compared to 2012.

24 MEXICO

25 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 & heavy tax burden.

26 UNITED KINGDOM

27 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 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.


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