Rabobank Report: Global Wine Industry Q3 2013

(BUSINESSWIRE)--Rabobank has published a new report on the global wine industry, looking specifically at the opportunities and challenges of the Argentine wine industry. In the report, the bank’s Food & Agribusiness Research and Advisory says that, following the decline of Argentine wine exports in recent years, Argentina must find ways to regain competitiveness, while maintaining the country’s brand image, through market diversification and innovation to drive growth in the domestic market.

Rabobank’s wine researchers say that the Argentine wine boom has been an impressive story. A growing demand for wines at higher price points saw Argentine exports take off from the early 2000s. However, in 2012, export volumes of Argentine still-bottled wine began to contract, unveiling the challenges the sector is currently facing.

“Wine production costs have increased as much as 100% over the last four years,” notes Rabobank analyst Valeria Mutis. “Movements in the exchange rate are also far from being on par with inflation rates. While the industry has little or no capacity to alter the current economic context, there are a number of strategic steps that it can undergo to improve its competitive position.”

Opportunity Among U.S. Hispanics and Mexicans

Rabobank says that in 2012, Argentina accounted for more than 3% of world wine exports, heavily weighted towards the U.S. The U.S. Hispanic segment, an expanding community, is a natural niche market for South American and Spanish wine producers.