Spanish wine in Latin America: a growing market. Rafael del Rey
Spain exported 43.5 million liters of wine to Latin America, amounting to 120 million euros, at an average price of 2.76 euros per liter. It is a relatively small amount in the total sales of Spanish wine on world markets, just 1.8% of the total volume but up 4.6% of total exports in value, to allocate to these a type of wine markets higher average value than those that allocate mostly to Europe. From all Spanish wine sales to Latin America, Mexico accounts for almost half.
According to reports by the Spanish Wine Market Observatory, growth in sales of Spanish came to this continent is gaining increasing importance, as evidenced by the figures of the first half of 2015. In volume, the Spanish came to Latin America grew year on year to June at a rate of 23.5%, compared with 20% that made him the average of world exports from Spain. In euros, the difference is much greater and the year sales to Latin America are growing at a rate of 15.3%, compared with the Spanish average of worldwide sales of just 2.9%.
This trend is also positive for the subcontinent if the latest figures compare with those of the century. In just 15 years, sales of Spanish wine to Latin America went from 13.5 to 43.5 million liters, with an average annual growth of 8.1%, above the average of Spanish exports to the whole world. In monetary terms, Spanish wine exports to Latin America grew from 46 million in 2000 to over 120 million in the year to June 2015, with average growth of 6.6%, also higher than the overall Spanish average. All of which means that Latin America is becoming increasingly important for business outside Spanish wine.
The interest aroused by these markets for Spanish wine, in addition to its strong performance, growth in demand and the good average prices, is the kind of wine that they are intended. If in Europe, an important part of Spanish wine sales are bulk products we supply to our French neighbors, Italians, Portuguese and Germans, in the case of Latin American markets for 77% of the total exported by Spain are wines packed , of which the vast majority of designated origin, and 16% are quality sparkling wines and champagnes.
By country of destination of Spanish exports, palm takes certainly Mexico, which represents nearly half of all sales in terms of value (47.7%) and volume (47.9%) of wine that Spain intended the subcontinent. If we add Mexico to Spain makes sales to Brazil, Dominican Republic and Cuba, all over 10 million, these four countries they amount to 74% of Spanish exports to Latin America in value and 78 % of liters sent. But the growth of such sales is important in many of these markets. Thus, the annual figures through June 2015, are spectacular growths targeted sales to Costa Rica (83% in volume and 37% in value) and Colombia (21% and 18% respectively). By contrast, last year sales are declining to Guatemala, Venezuela and Uruguay involving smaller amounts.
But, among every Latin American markets for Spanish wine, the most important is by far Mexico. Spanish wines take many decades of success in the Mexican market and have an enviable leadership position representing more than 30% market share in terms of value and volume. Far behind are growing wine sales in France in terms of value and volume and Chile within the economic sectors, but still threaten the dominance of Spanish wines. Spanish wines, also in this 2015 are growing considerably in Mexico, with amazing rates of 25.7% in value to over 57 million euros and 57% by volume to go from 17.5 million liters to which closed in 2014 to over 20.8 million achieved year on year to June 2015.
A dominance of Spanish wines in Mexico, companies are dedicated to caring for and pampered by the great interest that the market arouses among Spanish brands. A position reinforced by high quality products and renowned brands that have for many years with a magnificent national distribution. A place, in short, of Spanish wines in Mexico, far from allowing relaxation, forcing more work and perseverance. As work and perseverance and great interest they are showing in these recent years the Spanish brands move their wines to other major markets in Latin America where, despite strong competition from Chile and Argentina, we believe there is still some way to go.
Rafael del Rey, chief executive of the Spanish Observatory Wine Market (OeMv)
