Considering just bottled wines, from January to June, 305.5 million dollars and 10.4 million 9-liter cases were exported to United States, which means an increase of 18.8% in value and 12.2% in volume, compared with the same period last year. This data was provided by Wines of Argentina based on a report from Caucasia Wine Thinking.
The most significant price segment of bottled wine was the medium one (from 18 to 38 FOB dollars per case) which accumulated 50.5% of the total turnover and 57% of volume.
The lower segment (under FOB USD 18 per case) was the only one that had a negative rate of currency and volume, while the higher segments had a very good performance, growing more than the average rate.
United States, Canada and Brazil are consolidating themselves as the most important markets of bottled wine, with a joint share of 59% in dollars and 55% in volume during the first six months of the year. Among the most important markets, some of them stand out by their high year-on-year growth. Such markets are Brazil (64.7% in dollars), Mexico (45.2%), Paraguay (102.6%) and China (71.2%). Among the 20 main export destinations of bottled wine, only United Kingdom and Germany suffered a year-on-year decrease: 5.3% and 35.2% respectively.
United States with dropping values
United States keeps on being the most representative destination for Argentinian exports. In the accumulated value of the first six months, exports amounted to 114.91 million FOB dollars, which means a growth of 17% compared with the same period last year. As regards volume, the increase was around 20%, exporting 3,599,280 9-liter cases. Unlike other markets, in the period January-June 2010, the average price fell 2.3%, decreasing from 32.69 to 31.93 dollars.
This phenomenon may be related to the fact that two of the most important market brands have lowered their average price. One of them is Álamos, which, according to the data provided by MRT, is lowering the price year after year. The accumulated January-April decreased 7.8% in comparison with 2009. Last year, the case value was at FOB USD 33.14, while this year is at FOB USD 30.57. The other brand is Don Miguel Gascón, from the joint venture Gallo-Escorihuela, which until April it had dropped 14.8% its FOB value per case, according to MRT.
Canada with excellent prospects
Canada is the second most significant market for Argentina. The most sold wine to this destination is from Zuccardi, it is called Fuzion and its FOB price grew from 21 to 26 dollars per case in the analyzed period. José Asensio, Zuccardi’s Export Manager, explained that in the period January-June 2010, the brand has achieved an increase of 24% in volume and 22% in value, in comparison with 2009, while the average price has remained at FOB USD 35 per case.
The Brazilian boom
Brazil is another very positive market for Argentina. It grew 64.7%, increasing in value from 13.74 to 22.63 million dollars, comparing the first six months of 2009 with the same period this year. In the case of volume, it grew 43%, increasing from 579.73 to 828.19 thousand 9-liter cases, comparing the same period of 2009 and 2010.
Furthermore, in the analyzed period, the average price grew from 23.71 to 27.32 dollars per 9-liter case, which means an increase of 15.3%
According to Lucas Lowi, Business Development Manager at Terrazas de los Andes and Cheval des Andes, “we have noticed that Super Premium and Ultra Premium wine segments have grown in the last years, which means that Brazilian consumers are becoming more sophisticated and are willing to pay more for Argentinian wines.”
United Kingdom, head-to-head with Netherlands
United Kingdom has been falling both in value and volume. In the accumulated volume from January to June 2009, Exports amounted to 890,996 cases, while in 2010 this figure amounted to 725,189 cases, which means a drop of 18%. As regards value, the decrease was not so drastic: 5.3% at 18.22 million dollars.
In the case of Netherlands, it is important to bear in mind that exports to this market grew 12% both in value and volume in the first six months of the year; and the average price increased from 24.24 to 24.34 dollars, in comparison with last year.
Comparing both markets, Netherlands shows greater affinity but its population is much smaller, approximately 16 million people, whereas England has more than 60 million inhabitants, allowing important growth.