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Frizzantes are dropping behind

July 10, 2014 by Laura Saieg | in Business, News

The domestic consumption and exports of this product have suffered a downturn. According to producing companies, this is because small companies have discontinued their products and the business has been concentrated on the biggest ones.

Frizzantes and carbonated wines are categories experiencing two-digit growth in the past few years, mainly due to the high domestic consumption driven by young consumers in nightspots. This trend led many wineries to go for this segment, launching products and brands that today are left behind. In this respect, only the biggest wineries and brands have managed to remain. Likewise, their sales have grown in both the domestic and foreign market; whereas the smallest ones are relegating their production and gradually disappearing.

Considering this panorama, it is possible to explain the performance of the wine sent to the domestic and foreign market. Based on data provided by the National Institute of Viticulture (INV), in the total sales from January to May 2014, in both frizzantes and carbonated wines, a decline of 11% and 24%, respectively was reported in terms of volume.

In addition, according to data from CCR consulting firm, during 2013, frizzantes accounted for 6% of the overall wine sales in the domestic market, falling a 13% compared to the previous year. The 74% of the product was sold in self-service and grocery stores, while the rest in superstores, supermarkets, and discount stores.

Peñaflor group owns one of the hottest brands, “Frizzé”, which accounts for around 70% of the domestic market of frizzantes. Eduardo Casademont, winemaker of Peñaflor group, pointed out that 10 years ago, Frizzé sold annually 700 thousand liters of wine in the domestic markets, while today it sells 12 million of liters, an average growth of 33% a year. On the other hand, in the case of foreign market, its exports amount to 500 thousand liters. In order to cope with this growth, the company has made a great investment in its plant located in Mendoza.

Mariano Cunille, Brand Manager of Casa Bianchi’s New Age, explained that in the case of foreign market, the brand is #1 in the ranking of Argentine white wines exported to United States, #3 in the ranking of Argentine wines, and it is considered the fastest-growing product in US, according to Nielsen. Apart from this destination, New age is also exported to over 30 countries, among them, Paraguay, Switzerland, Uruguay, Denmark, based on data from CCR.

In relation to investments, Casa Bianchi focused on the launch of the New Age sparkling wine, campaign in which Zaira Nara is the image.

Finally, Carlos Crotta, of the homonymous winery and producer of Strip Tease wine, commented that the general exports, including winery’s exports, have gone down. The main reason of this decline lies in the low prices offered by other wineries or countries. Consequently, for the firm, this is a segment that is gradually disappearing.

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