The last report published by Rabobank called “Trends and outlook for the international market”, reveals that one of the most outstanding aspects of the global wine trade analysis is the return to ring of the old world’s countries, which have experienced significant rises in exports during 2011.
Subdued by the great decline in the domestic consumption in both Spain and Italy, countries of the Old World have felt obliged to compete in the international market. The report shows that French wine exports, in general, grew by value and volume to a lesser extent, being Bordeaux and Champagne the regions that stood out for their good performances. However, the wines without appellation of origin went down, although French varietal wines saw a boost. China continues to be an important market for wines from that country.
In the case of Italian wine exports, they are still doing well in the United States, Canada, and China markets. “In spite of this, the International Wine Organization (OIV) estimates that Italian wine consumption dropped by more than 6%, and Italian suppliers feel increased pressure to export. Rising grape prices, following the lean 2011 harvest, will pose challenges for Italian exporters in 2012,” pointed out the report.
On the other hand, Spanish exports saw a double-digit increase in both volumes and values, though the volume growth far outstripped the value growth. Stocks of Spanish bulk wine have decreased significantly, and the prices of bulk wine are rising. At this moment, Spain is becoming one of the most important exporters and could be a trouble for new world’s countries.
What happened in the New World?
According to the report, exports for the new world’s leading countries were not so auspicious.
As regards Australia’s top three export destinations: United Kingdom, United States, and Canada, the result was not positive. The report analyzed that the Canadian market, which has represented a bright spot in past years, fell 9.7% by volume in 2011, while trade to other markets such as New Zealand (-18.3%), the Netherlands (-13.5%) and Scandinavia (-14.0 %) also reported significant drops.
In addition, “Chilean exports boosted almost 9% in value, though they underwent a 9% decline in volume. This fall was due to the lower sales of bulk wine. Chilean bottled wine exports performed well during 2011, growing around 11% from 2010. The average export price soared by 7.7%, without resulting in a drop in volumes. This might be the product of a coordinated strategy to focus on higher price ranges. Bottled wine exports within over USD 40/case (FOB) experienced a 37% increase, garnered a total amount of USD 450 million.”
Translation: Carolina Lucesole