Greater competitive rivalry in the wine market The wine world has suffered significant transformations in the last decade, and particularly, since the 2008 crisis, the level of the competitive rivalry has increased, according to the last Argentina Wine Report. The changes the trade has suffered in the last few years, in its different facets, are analyzed in the last edition of the Argentina Wine Report (AWR), report made by Área del Vino’s analysis team, exclusively for members of the Argentine Wine Society. The global vineyard transformation has been one of the characteristics that stand out in the last decade. With a reduction of almost 360 thousand hectares in 10 years as a final result, the industry notices a cultivation movement from traditional producers to the new world. Chinese vineyard has registered the fastest growth, whereas in the case of Spain has suffered the greatest fall in terms of surface. Likewise, the total production reveals a considerably drop at a similar rate, attaining the all-time minimum. The reduction registered in the crops of several countries of the Northern Hemisphere was the cause of this lean result in the past year. Yields reached by the different producing countries, is other of the theme developed in this report, with a stress on the producers’ search for profitability, in front of the transformed situation of the global competition. On the other hand, the world consumption still enjoys an upward trend, though at a lower rate than at the beginning of the decade. These conflicting trends of consumption and production have led to a relative balance in the wine market, and even a slight shortage, contrasting with the period of oversupply experienced only few years ago. In addition, wine consumption growth also conceals a profound change in the domestic market. This increase has been driven by new consuming countries, with special preferences and demands, whereas traditional ones show downturns at their consumption levels. Throughout this transformation process, certain aspects became more important, such as mid and low price ranges; the boom of sparkling wines, particularly low-priced ones; the growth of bulk exports; the greatest importance of wine re-exporters, etc. The foreign market has been the wine world’s most appealing facet. It has gone from 29% to over 41% of the global consumption in a decade. All these changes have led all world companies to look for new strategies and formats in order to compete in a scene with increasingly reduced margins. One of the clearest examples of this response from companies is the recent development of bulk wine exports to be bottled in destination, as a way to reduce costs. This way, the business creativity should be sharpened to gain ground in this world market at the expense of competitors, especially considering the own difficulties the Argentine sector is facing today. June 3, 2013 by María Elena Graffigna | in Exports, News (Source: Argentina Wine Report developed for members of the Argentine Society Wine (SAV), sociedadargentinadelvino )
Posted on: Thu, 06 Jun 2013 00:50:07 +0000
Trending Topics
Recently Viewed Topics
© 2015