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A toast to mendocinos

I propose a Malbec glass of wine toast to all mendocinos entrepreneurs who are making this miracle a reality!

In spite of the horrendous US recession which was extended to many corners of the world, Mendoza and its wineries keeps crashing its own exports benchmarks when it comes to varietal wines. A recently published article in a main argentine journal mentions that fine wine exports are growing at an annual rate of 17%. This is not the case of other types of wines, namely the ones that are less sophisticated. Although a good chunk of the rise in exports relates to Spain, Brazil seems to keep expanding their taste for the good life.

According to the “Ministerio de Desarrollo, Industria y Comercio Exterior de Brasil”, imports have grown close to 33% in dollar terms in the first 8 months of this year. More than half of this increase was due to higher volume. Lucas Lowi with Bodegas Chandon believes that growth is happening around the high end products and not so much at the lower end. The immediate conclusion is that brazilian consumers are willing to pay up to drink it in. And this trend towards more sophisticated product lines can be seen in other segments and in different brands as well. Evidently, Brazil’s continued economic growth has been good to an ever expanding middle class.

Alejando Panighini, export manager for Bodegas Norton, also remarked that about 60% of business with Brazil is based on wines that are FOB priced in the range of $26, completely changing the trading style of prior years. He then mentioned that Norton Malbec DOC and Perdriel were seeing renewed growth as brands in the brazilian market.

According to a research conducted by the Oficina Económica y Comercial de la Embajada de España en Brasilia imports are tagged at around u$d 165 millions a year and about 50% of this represents imports from Argentina and Chile. Not a surprise, considering a population of 190 million in a country that continues to offer great growth prospects going forward.

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