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Bottled wine exports grew by 25%

April 1, 2014 by Laura Saieg | in Exports, News

In spite of uncertainty, exporting sectors had a good performance in the two first months of the year, except for the United States market, where exports dropped by 9% in value and 8.5% in volume.

The overall Argentine wine exports during January-February 2014 grew by almost 25% in terms of value and 26% in volume, compared with the same period of 2013, according to data from Caucasia Wine Thinking.

One of the markets not showing encouraging figures was United States. Between January and February of 2014, versus the same period of last year, bottled wine exports in this market went down 9% in value, going from USD 45 million to USD 41 million, and 8.5% in volume, registering

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a fall from 1,170,959 of 9-liter cases to 1,071,378 in 2014, according to data provided by Caucasia Wine Thinking. This market is the most important for Argentine wineries, accounting in 2013 for 37% of the overall bottled wine exports in value and 33% in volume. Likewise, during the first months of 2014, this market also reported a downturn of 0.5% in the average price per case reaching USD 38.42. It is worthy to remember that the volume of sales to United States is concentrated in the USD 20 – 50 (FOB) price range, meaning a really tempting segment for wineries, but very difficult to maintain.

However, beyond United States, the other export markets of Argentina showed very positive numbers. All experienced growth in value, resulting in the following ranking: Canada (8.5%), United Kingdom (26.9%), Netherlands (51.6%), Brazil (5.2%), Japan (99.3%), Mexico (7.1%), Switzerland (40.4%), and Sweden (3.5%), while China was in 10th place with a 7% fall.

Finally, analyzing the first two months of the year, in relation to the price range, an increase was noticed in most of segments, except for the highest ones.

Performance of other containers

Among the packaged wines, there is a sharp drop in tetrabrik shipments. However, due to the low popularity of this category, it was easily surpassed by the excellent performance of bottled products. The loss of profitability in this segment continues affecting it, especially in the foreign market.

Considering that 2013 was

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a complex year for bulk exports, 2014 would seem to change this

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situation, as Argentina’s shipments experienced an upward trend during these two months of almost 40% in value and 20% in volume.

Lastly, the performance of stum is similar. Between January and February, its average price went down from USD 2.59 in 2013 a liter to USD 1.95 in 2014, thus revealing a 4.4% decline in value. Nonetheless, in terms of volume, numbers are different, showing a 27% boost, in comparison with this period.

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