Argentina exported to Brazil between April 2012 and March 2013 a total amount of USD 53.396 billion, presenting a 20% drop in relation to the previous period (April 2011–March 2012). In terms of volume, the poor performance was similar, going from 2.016 billion to 1.565 billion cases. On the contrary, the average price experienced a different reality, registering a 3% increase, being this last year USD 34.12 per 12-bottle case.
Top 5 of Argentine brands
The five leading brands accounted for 16% of export turnover of bottled wine to Brazil and 17% in volume. According to the ranking by value, the brand number 1, in the period April 2012 – March 2013 was Benjamin Nieto Senetiner, followed by Catena, Angélica Zapata, Santa Ana Selección, and finally, Nieto Senetiner Reserva.
Benjamin, the most exported brand to Brazil, apart from reaching the top of the ranking, it presented the best performance, with a 34% growth in value and 27% in volume. This wine is priced at BRL 21.90 (Brazil’s currency), according to data provided by the winery.
Roberto Gonzalez, winemaker of the winery, said that the positioning of the brand was the result of the 4 Ps of marketing: place, price, product, promotion. In relation to the first brand, he commented that it is the flagship line of Nieto Senetiner.
Likewise, he highlighted that in order to consolidate and maintain the position in Brazil, the company started looking for a distributor with a good potential in this market, then it closed strategic marketing deals similar to the ones reached in Argentina, and finally, it made a TV advertisement. Besides, he explained: “this was achieved by opening a sales office of Nieto Senetiner in Brazil to support our distributor. All these actions were made under the umbrella image of Argentine Malbec with an excellent value for money. There were other important points such as the sales force and the deals closed with Brazil’s most important chain of supermarkets. It was a challenge to play a big game in such a concentrated space as it is Sao Paulo, and then to use the same strategies in Río de Janeiro, Curitiba and Porto Alegre”. Moreover, he added that the company used the same strategies with Nieto Senetiner Reserva brand, ranked in #5.
Downwards, in second and third position, two brands of Catena Zapata were included, Catena and Angélica Zapata. The former experienced a growth of around 5% in value and volume, whereas the latter suffered a fall of around 11%. The retail prices of these brands in Brazil are BRL 70 in the case of Catena, BRL 145 for Angelica Zapata, BRL 175 for Catena Alta, BRL 850 for Catena Zapata Estiba Reservada, among others.
Cecilia Razquin, Catena Zapata’s Export Manager, commented: “Brazil is a very important market for us, especially in the segment where we sell the brands Angelica Zapata and Catena Alta. In this segment, in 2012, our market share was over 40% (considering all the Argentine brands sold in this segment). Historically, in this price range, Brazil is our top market.”
“Our importer in that country, Mistral, has made an excellent work with our brands in the past 15 years, consolidating not only our company, but also Argentina as a high-quality producing region. We think this market is a good example of what Argentina can reach in terms of market positioning,” concluded Razquin.
In fourth place Peñaflor Group’s Santa Ana Selección was included, with a plummet of 46% in both value and volume. Whereas, the average price per case did not change, comparing the two mentioned periods, being USD 13 per 12-bottle case.
Finally, other brand of Molinos Rio de la Plata was comprised in the list: Nieto Senetiner Reserva. USD 48.37 a case and BRL 31.90 (retail price), this product enjoyed a boost of 6% in value and 4% in volume.