Argentina: More export, but no best prices

The average export value fell in box 9 of the top 10 markets. Slightly improved bulk shipments for the second half but the prospects remain low. Bottled exports increase in volume and fall in value. Brazil, the big question.

The first five months of the year marked a slight increase in shipments of wine to bulk exports showed signs of recovery and mark a 18% increase in volume. Bottled in the average price at which Argentina sold fell 5.2%, according to a report by the consultant Caucasia Wine Thinking.
Even with lower growth than expected in both 2013 and 2014, the performance of exports of wine was measured in average price. It is that with this scenario, Argentina ended improving mix, keeping the volume sold and also began to market segments of higher prices, rather than from the industry, extolled for its long-term positioning.

Latin America is always a market with opportunities for Argentine wine. But what impact the recession will end in Brazil in exports of wine from our province raises a big question, given that the destination is the fourth volume market for Argentina.
So, in so far this year, exports to the neighboring country showed a decline of 8.47% in volume and 11.87% in value, says a report by the INV.
Lucas Lowi, business development manager of Terrazas de los Andes, Cheval des Andes, Bodegas Chandon, said “I think the expectations are complex in Brazil; Our first half was not so negative compared with Chile, but estimates that in the second half of the year will begin to feel the contraction of the Brazilian economy. ”
Meanwhile, other markets like Mexico and Colombia remain attractive, even if Argentina reach those destinations without FTAs.
“Mexico has a fairly strong economy and today is a very important market in which we are working not only with still wines, but we are also looking to enter the Chandon brand. We are focused on a niche market medium-high. And frankly we see opportunities in these niches. ”

In 2014 Argentine exports to Mexico recorded sales of over $ 20 million, with an average price of $ 33 a box of wine.