Presentacin de PowerPoint

September 20th, 2013PVE Owners Conference

How do I get my wines outside the U.S.?

How The Vines can helpLed by Pablo Gimnez Riili

AGENDA FOR SESSIONARGENTINE WINE EXPORTSEXPORT STATISTICS - SEMESTER 1, 2013TARGET MARKETS

BRAZILCANADACHINADENMARKMEXICOUNITED KINGDOM

ARGENTINE WINE EXPORTSEXPORT STATISTICS - SEMESTER 1, 2013 Total wine exports (wine & must) USD 517.8 million and 179.7 million liters. Bulk Wine Exports continue to decline. 70 % of bottled wine exports sent to 5 main destinations: US, Canada, UK, Netherlands and Brazil.

WINES OF ARGENTINAS TARGET MARKETS ANNUAL CHANGE OF SHARE IN US$ FOB

ARGENTINE WINE EXPORTSEXPORT STATISTICS - SEMESTER 1, 2013 Bottled Wine Price Segments Steady decline in lower segments; Significant growth in upper segments (middle and high). Leading Segment Ranging from USD 40 to USD 90 per case. Wineries avoid exports to lower segments.

ARGENTINE WINE EXPORTSEXPORT STATISTICS - SEMESTER 1, 2013 Sparkling Wines Chile continues to be the main destination and growing; Brazil remains stable.

Consumers Preference 56.2 % of bottled wine exports consisted in red varietals (Malbec and Cabernet Sauvignon)

TYPE OF WINE AND COLORANNUAL CHANGE OF SHARE IN VOLUME

ARGENTINE WINE EXPORTSEXPORT STATISTICS - SEMESTER 1, 2013 Brazil Outstanding growth in both revenue and volume. Except for Brazil, all South American destinations fell in volume

Europe Russia, Ireland and the UK had the most outstanding rates; Denmark and Germany also increased but are still recovering from last years decline.

Asia The situation worsened, especially in Japan, China and Hong Kong.

BRAZIL

KEYS TO THE WINE MARKET DEVELOPMENT OF BRAZIL

Significant export market for Argentine bottled wines.

Relative high value of the Brazilian real compared to the Argentine peso.

Countrys economic growth.

Expansion of the Brazilian middle class with increasing purchasing power.

BRAZIL

In 2011, Brazil became the third largest export market for Argentine wines in value, replacing the U.K., and the fourth largest market in volume.BRAZIL IN NUMBERS

3rd USD FOB destination for Argentine exports (USD 55,000 in 2012; 1,500 cases of 9Lts.)

Estimates show that in 2016 the wine import market will represent USD 372 million (42% increase compared to the current USD 261 million). 80% of wine consumption is of Brazilian origin; Imported wines are increasing their presence.ARGENTINA AND CHILE LEAD BRAZILS IMPORT MARKET

Argentina & Chile:

Account for 60% of the import market (182 Argentine wineries; over 800 Argentine wine brands in the market)

Are exempted from a 27% import tax rate Wines imported from Portugal, Italy, France, Spain, South Africa, Uruguay, Australia, the United States have higher prices on account of taxes.

Argentine wines have in Malbec a very big advantage to Chile.

BRAZILS WINE IMPORTS

BRAZIL

WINE CONSUMPTION

PER CAPITA

1.8 Lts. per capita (338 M Lts.)

0.73 Lts. per capita Fine Wine (140 M liters) 30 M Brazilian / 110 M Imported Wines

It could reach 9 Lts. per capita in the next 10 years.

BY REGION

CANADA

CANADA

Second main destination for Argentine wine exports, after the United States.

Expected to continue to be the largest export market for Argentine wine together with the United States.

Per capita, Canadians consume four times more Argentine wine than Americans.

Strong switch in consumption habits from beer to wine.

Malbec is by far the favorite variety of the Canadian market.

Growing interest in the culture of wine.

ARGENTINE WINE EXPORTSTO CANADA

CHINA

CHINA

Significant growth over the last 10 years.

6th largest market for Argentine exports (Compared to the 18th market only two years ago)

In 2012, 130 Argentine wineries sold wine to China (Compared to 76 wineries in 2009)

Attention is drawn to Cabernet Sauvignon and Merlot (With Malbec coming third on the list)

Strong marketing promotion programs (By the Argentine wine industry and the government of the province of Mendoza)

Consumers look for elegance, distinction, and original, good quality packaging, (Aspects that are present in a large number of Argentine products)

.

DENMARK

DENMARK

Very promising outlook for Argentine exports in the near future.

Among the main markets for Argentine wine exports, Ranking 11th in exports by value in 2012.

High consumption : 43 liters per capita. Argentine exports totaled USD 9.5 million and 4.3 million Lts. in the 1st semester. Export growth rates were of 39% and 87%, respectively, compared to 2012.

MEXICO

MEXICO Majorbusiness opportunity.

Wine Consumption: 27 million Lts. in 1010 / 55 million Lts. In 2012 (more than 100% growth)

30% of wines consumed are ofnationalorigin.

In 2018: 180 million liters of wine will be consumed three times more than the current figure national participation will pass from 30% to 50%.

Significant barriers: Struggle for water shortages & heavy tax burden.

UNITED KINGDOM

U.K.

Total UK wine sales are expected to stagnate further in 2013 as the austerity environment continues.

The wine market may return to growth, but it is unlikely to experience the level seen before 2007.

While consumers limit consumption volume and opt for better-quality wines.

The fastest-growing red and white wines were in the ($8) price range.

Consumers become more environmentally responsible.