Latin American Wines Bourgeos Aude Brisou Charles Duprez Noémie Fernandez Marie

Spanish colons  Seeds of spanish wine in central america : Failure necessity to make wine of mass First succeses  Mexico, Peru, Chile XIX  Import of French types of wine Recrutment of French specialists to improve the quality Development of the industry in the central region of Chile and the region of Mendoza in Argentina attractive thanks to the climate. End of the XIX: first exportations 80’: discovery of the potential of the wine production from the new countries in the international market  Modernisation of the industry  lots of investment  Investment from foreign countries History

Current situation Desapear of family owners. Creation of corporatives and foreign investment. Production in millions of L Exportation in millions of L N° of countries Chile Argentina The main importers of Argentine and Chilean wines are the United States and Great Britain. But Argentine table wine is mainly imported by South American countries such as Paraguay and Uruguay when fine wine is exported to the United States.

Argentina Consumption : –Way of consumption is the same as the european one –Historically, it is a big consumer of wine table but these last years the demand rather goes to vintage wines –The consumption of vintage wines tripled and the one for table wine dropped. Strategy: –Production oriented on vintage wines –Focus on new target to find new consumers to rise the sells: young and women by advertizing ccampaigns

Characteristics –The small exploitations are majority. –The number of exploitations decreases. –Big groups are developping due to globalization of the sector: « El grupo de los siete » invested m$50 in the production. –A strict rule: Rule of origin (IP, IG, AOC), Namings relative to the quality of products, wine practices. –Major argentina wines importators : South Africa, Great Britain, United States, Paraguay, France.

Chili Culture : - Very mixed race people - Wine approach completely different from Argentine’s one - Chilean people do not consume wine regularly (only 17 liters per people per year) - Wine consumption only for upper classes - Natural conditions responsible for quality: climate, ground and stump

Strategy:  Production oriented on quality for exportation: - The best wine exported from South America -But wine for local consumption absolutely ordinary (local market not demanding) Characteristics - Red wine dominant and with a good value for money -White wine quality and quantity progressing because of international demand -Improvements of wine quality in the 90’s -Explosion of volumes exported: 40 million liters in 1990 and 200 million in 1999

Perspectives and Challenges: Chili –Wine activities considered as a priority –Good resistance of the vintage chilean wine Challenges: –Manage the special skills of the country –Consolidate its exportations –Make New investments –Make intensive efforts in communication

Perspectives and Challenges: Argentina Future based on the PEVI strategic plan –Creation in 2004 of COVIAR Challenges: –Create value thanks to internal integration –Improve the quality of the wine –Improve the export capacity of the country –Create image and special Argentina’s identity –Bet on wine tourism –Significaly improve communication and packaging (No more wine in Tetra Pack bottles!)

Globalisation: New challenges for all the actors –Gloomy situation on the world market –Importation of good quality wines at good prices –Quality norms are more and more important « Hot » challenges: –Foreign competitors –Necessity to grow the number of consumers –Create a clear position with strong study of prices –Audit all the systems to realise margin at all nivels –Integrate vertically to decrease costs and improve efficiency –Focus on the profitable products of the range –Being close to the market expectations and work hardly on packaging (« Bag In Box », alternative corks, catalog selling)

Questions Time