Wine in bulk: how to compete in the world?

The goal is to install Argentina as an international supplier of bulk wines permanently and sustainably. Today, the country exports less than 1% of the volume of a world market of 4,000 million liters.

The challenge is to recover in 5 years the peak of external sales, which reached 160 million liters and 31 million. The public and private sectors – Ministry of Economy, via Promendoza, and the Chamber of Bulk Wine Exporters – are working together to achieve this goal which has several edges, and aims to move grape varieties and generics, depending the demand of each market, each country.

Thus, the promoters of the project focus on the recovery on the market of Russia of the prominence of generic wines of Mendoza. England, China and Germany present opportunities, which involves competing with Spain, the world's leading bulk wine exporter.

The first steps began early in the year and already have an extensive program covering until 2019. The next contact destination is San Francisco. Between the morning and past -25th and 26th of July- 6 wineries of Mendoza -Eclipse, Tittarelli, Belhara, Corveau Wines, Cecchin and Carbonero- next to 4 of San Juan will offer Argentinean wines to some 400 commercial agents and vineyards in the area. International Bulk Wine Exhibition & Show San Francisco, USA

Visibility to Integrate the World Trade Circuit

To this end, ProMendoza has been promoting a program since the beginning of this year which began with the presence at Prodexpo Russia and continues with the trade mission to Germany, England, the Netherlands and France. Then came the California mission with the Argentine Chamber of Exporters and Bulk Wine Merchants. And they are already making the bags to land in San Francisco. In a few months Mendoza will be at World Bulk Wine in Amsterdam, scheduled for November

Beyond the relationships and business that can take place in each of these places in the world, the ultimate goal is to install a fair International Wine Festival. Bulk every year in our province, as the first bulk wine tour of Argentina and the southern hemisphere. It will be in May and in coincidence with the new production, as it is in the northern hemisphere. And this participation will give Mendoza visibility to join the international circuit and be the commercial headquarters of bulk trading in the South.

The Wine Tours of May 2019 aims to reach out as much as possible to the major international players in the wine sector. in bulk, who will also visit vineyards and participate in conferences and debates, media interviews, business meetings and personalized meetings between professionals. At the same time, the local producers present will realize a complete immersion of Argentina in the face of their future commercial strategies.

The axes of activity in Europe and opportunities for Argentina

Wine in bulk 4 000 million liters per year in the world. Today, the grapes that the world market requires the most are Cabernet and Chardonnay. Malbec as varietal helps and distinguishes Mendoza

Bulk wine marketing in Europe has a growing trend, where three factors coincide: ecology, private or white brands and the economy.

The Impact or Ecological Footprint The emission of carbon by gases that are emitted into the atmosphere is one of the determining factors of European industry and the northern hemisphere in general. Clean production is a value for the European consumer.

More and more Northern brands in Europe and the United States have their wine labels. This is why supermarkets, caterers and hotels are interested in the import and bottling of wine, to show their identity and logo on the label of their wines. red and white wines.

The third stage of the bulk wine trade revolves around lowering costs. The special tank that is filled with wine, something like a giant bag in the box and known as the flexitank, gets into a container and loads 24 thousand liters, instead of the 9,000 liters that could be transported if the wine was in bottles of 750 cm3. This wine reaches its destination in the container and then packaged in places near the points of consumption. There are large bottling complexes in northern Germany and England, the large high-tech factories stand out by working 24 hours a day at very low costs.

Germany, the United Kingdom and France are three important markets for Argentine wine. in bulk, to which we must add Russia and China. Of course, Argentina has to compete with Spain and Chile, first and second place in unpacked wine exporting countries. Other potential markets are the United States, Canada, Mexico, Peru, Russia, Germany, the United Kingdom, Japan, Denmark, Switzerland, Belgium, Italy. , Portugal, the Czech Republic and the Netherlands. higher logistics costs compared to its competitors such as Chile, Spain or South Africa, in addition to differences in trade agreements in different countries. Today, the shipping of a container through the port of Buenos Aires has a cost of 700 USD / 800 only for port charges, plus the transfer of the product by land, which s & # 39; 39, raises to 1,900 USD / 2,000.

Chile has a port of 250 USD / 300 USD and a similar land transport. In short, we are three times more expensive than the neighboring country, which is at the same time our biggest competition in the region.

The New Chamber of Exporters

In the Mendoza Repositioning Project The Chamber of Bulk Wine Exporters plays an important role as a supplier. Although still in training, he is already active, which is why he will attend the California Fair. Members of the House are companies that have a history in exports and also traders with a real ability to generate business. These are Sul Mineira, Fecovita, Marañón, San Carlos Sud, Crotta Wineries and Vineyards, Royal Mount and Los Haroldos.

The room is national and covers all regions and wine provinces, such as La Rioja, Salta and the South. Country. The President of the Chamber, José Bartolucci, said: "Our country has excellent qualities both generic and varietal, and the INV is the body that approves with official badysis all the qualities of our wines. "

Unpackaged wines They have been sold forever, but what has changed is the domestic consumption of Argentina before, there was no surplus and today consumption has decreased in the last 10 years, for 2007 we had a per capita consumption of more than 29 liters and in 2017 we are on the order of 20 liters per capita

"Today we have the obligation to let the world know that Argentina will be a reliable exporter.First, because the 2018 crop was stable – there were two crop failures in 2016 and 2017 – and today, there is an export surplus of about 350 million liters .If climatic stability continues in the next harvests, it is predictable surplus similar to 2018 and guarantee the supply to the countries Importers. "

Source: Prensa Gobierno of Mendoza