For the sixth consecutive year, the International Wine Forum was carried out. Organized by Bodegas de Argentina and operated by Área del Vino, once again, the event resulted in the right place for discussing the course of the national and international viticulture.More than 600 businessmen of Argentina’s wine industry were present at Mendoza’s Ángel Bustelo Auditorium on 2nd September. This time, the focal point of the conferences was “Times of Saturated Markets”.
Kym Anderson opened the series of conferences talking about globalized markets and the role of the New World. He pointed out the challenges that wine producers may face and explained that in the medium and short term, “both United States and the European Union will suffered a decrease in wine consumption as a result of recessions affecting both sides of the Atlantic.”
Afterwards, Isabel Bardaji Azcárate highlighted that France, Italy and Spain received a benefit (798 million euros) granted by the EU for external promotion. Then, she explained that “since these countries do not have the chance to promote consumption in their own countries -due to anti-alcohol laws-, the EU members directed all their efforts for external promotion with 5-year plans in United States, Canada, Switzerland, Russia, Japan and China.”
The wine industry
Nelson Pérez Alonso, from the consultant Claves, pointed out that “the market has not finished absorbing the increase in prices and the year will conclude with a growth of 22% in the case of wine.” Besides, he anticipated that “the great fragmentation of the wine industry in Argentina will prevent companies from consolidating their profitability quickly.”
Furthermore, Osvaldo del Río, Retail Service Manager at Nielsen in Argentina, explained the off premise consumption and emphasized that Malbec consumption grew 16% in volume, just like Chardonnay. “The difference is that the red varietal weight is 30% in volume concerning wine sales in supermarket shelves,” he added.
Sustainability, the future business
The following conference was in charge of Yerko Moreno, the director of Centro Tecnológico de la Vid y el Vino (Vine and Wine Technological Centre) at the University of Talca, Chile. Moreno maintained that the future viticulture will demand a further study of the soil. “From my point of view, it is essential to plan suitable rootstocks, clones and varietals,” said Moreno. As regards this last point, the professional pointed out that “Argentina may not only be Malbec and Torrontés. This is a country with the potential and obligation to be much more than that.”
The stiff competition
“Strategies for stiff competition scenarios” was the focal point of Javier Merino’s conference. The director of Área del Vino pointed out Argentina’s main competitors as well as the national and international context where Argentina exports its wines.
“Argentina is the star of the last five years, which is mainly explained by its productivity and exchange rate advantage. Malbec stood out but there are some supplying shadows,” said Merino, the director of Área del Vino.
Afterwards, Liz Thach, Professor of Management and Wine Business at Sonoma State University, California, spoke about marketing for saturated markets and highlighted some factors that inevitably cause the worldwide saturation of the wine market. “Production increased 1.1 million hectoliters in the period 2008-2009, while consumption decreased 8.7 million hectoliters.”
Thach pointed out three different strategies to overcome this problem. The first strategy is based on a clear positioning, the second one is to know as much as possible about consumers and the third strategy is about marketing and innovative ways to reach consumers.
Web 2.0
The journalist, founder and current director at TercerClick (a new media and digital marketing agency), Leandro Zanoni, opened the last part of the International Wine Forum. He highlighted the importance of virality in communications and the high profile achieved by users, who are the authority since their comments, especially in social networks, influence the success or failure in products and services.
Furthermore, Paul Mabray, Chief Strategy Officer at VinTank (a digital media that aims to revolutionize the wine industry through e-business and innovative digital products), emphasized that “social networks grant wines the chance to get closer to consumers of other alcoholic beverages. Every major industry has used the Internet effectively to increase sales, develop market products and create meaningful customer connections.” Mabray also maintained that the wine industry lags behind other industries. “The future of the wine industry is better use of the web,” he concluded.
Finally, Mabray highlighted: “The most recommended social networks for wineries are Facebook.com, Twitter.com, Linkedin.com, Youtube.com, Vimeo.com and Scribd.com. In the specific case of wine, the recommended sites are CellarTracker.com/ Grapestories.com, Winelog.net, Corkd.com, Adegga.com and yourwineyourway.com.”
Written by by S. Gonzalez, G. Malizia, L. Saieg, and M. Zalazar for Winesur.com
Translation: Ana Tagua
Source: http://www.winesur.com/top-news/times-of-saturated-markets
