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The Argentine wine gains position in Denmark

August 28, 2013 by María Eugenia Aznar | in Exports, News

In the first half of the year, Argentine exports to this destination garnered USD 9.5 million and 4.3 million liters, according to data from the National Institute of Viticulture (INV). The growth rates were 39% and 87%, respectively, compared with 2012.

Danish consumers drink mainly beer, registering a share of 65% of the total consumption of alcohol beverage in 2011, according to Euromonitor’s data. On the other hand, wine consumption is in second place, with a 30% share. However, in the past few years, wine consumption has been gaining positions at the expense of beer. One of the most influential factors is that wine is considered a healthier and more sophisticated drink than beer.

There are other aspects to bear in mind when entering into the wine market of Denmark. Firstly, this market has a high wine consumption, amounting to 43 liters per capita a year. Secondly, the wine trade in this country is very concentrated; around 80% of the wine marketed in the off-trade channel is in the hands of three large supermarket chains, COOP, Dansk Supermarked, and Super-Gros. This leads to the fact that, usually, there are exclusivity agreements with these chains, so it is very important to have a good long-term relationship with them and maintain the level of quality and prices over time. Moreover, Danish consumers are very sensitive to prices. The largest volume of sales is concentrated within the lowest price ranges, mainly due to the promotions offered by these supermarket chains.

In 2012, 58% of Denmark’s wine imports correspond to wines in containers up to 2 liters, according to data coming from the International Trade Center. Italian wines lead the market of imports, in both turnover and volume, enjoying a share of 27% and 32%, respectively, in 2012. On the other hand, Argentine products were in 9th place in volume and 10th in turnover, having a share of 2.9% and 2.6% respectively, in the same year.

The Danish market is one of the main destinations for Argentine wine exports, being in 11th position in the ranking of exports by value in 2012. Most of Argentine wines sent to Denmark are bottled, with a share of 80% of the total exported value. In addition, almost 90% of these wines are glass-bottled products. Argentine exports of bottled wine have showed a drop since 2011 in volume, but in terms of turnover, they grew by 4% between 2011 and 2012. It is worthy to highlight that from 2009 now, an upward trend has been observed in the average export price, attaining USD 3.8 per liter in 2012. The good performance in the first six months of the year gives a really promising panorama in this market for Argentine exports, in the near future.

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