Forty Argentinian wineries were present at the latest Hong Kong Fair. Find out what importers and distributors in the region were looking for, as well as consumers’ perceptions of Argentinian wines.
Vinexpo Asia-Pacific has become a major prestigious event in the world of wine, where in the course of three days, wineries from all over the world have the chance to meet distributors, experts and enthusiasts face to face. This time, the event took place in Hong Kong from May 25 to 27, bringing together 842 exhibitors from 32 producing countries, among which Argentina stood out.
According to the representatives of the attending Argentinian wineries, Argentina still has a long way to go. It is yet unknown as a winemaking country, and Malbec has failed to achieve the same prestige it has gained in other markets.
One of the problems that not only our country but also other producers encounter is that France has managed to dominate that market. Consumers want only French wines, especially the Chinese, who are world traveling businessmen interested in showing off: they buy French wines because they are expensive symbols of status and tradition.
Luis Suriani, from Don Manuel Villafañe winery, pointed out that “Chinese consumers buy 90% French wine and the rest is a mix of wines from all over the world, and that is where we are. It is going to be difficult to change that habit.”
In this case, according to export managers, the problem is that “the rest of the world” segment means cheap wines. That segment only wants to satisfy the demand for volume, leaving the demand for expensive wine to France.
Jorge Crotta, Asia export supervisor for Catena Zapata, explained that “within this continent, Japan and Korea are a step ahead in terms of the discovery of Argentinian wines. But there is a lot of field work to be done if we are to develop different markets, as Argentina is not very well known. Argentinian wines are almost completely absent from stores. However, Bordeaux has enormously greater shelf presence, and Chile has been doing an excellent job at positioning its wines for many years now: that shows in the exports and the presence of our neighboring country.”
What are importers and distributors looking for?
Alejandro Panighini, Bodega Norton’s Export Manager, stated that “in general, importers and distributors at this fair were looking to complete their portfolio with Argentinian wineries. We, for instance, were visited by importers from new markets such as the Philippines, Thailand, Malaysia, etc., and by our importers from several markets, who wanted to broaden their portfolio and increase the sales of our wines.”
Leandro Bastías, Trivento’s Export Manager, said that “it is difficult to generalize, since every distributor and every market has its own special needs. The Chinese were interested in products at very competitive prices, which I think will be very hard to find, given the current situation in Argentina.” Asia represents 5% of the company’s sales in volume (a slightly higher share than what they represent for Argentina). “It is definitely a region with great potential and great strategic importance. Our average price in Asia is higher than that of the rest of the exports, which shows that it is a region which is willing to consume Premium wines.”
Once again, Suriani explained that during the fair, Asians were looking for wines at USD 1.80 FOB per bottle. “A problem we found is that they think Argentina is a synonym of cheap wine, that is to say, their views are opposite to those of mature wine markets. The fact is that it is very difficult to sell our wine in China. However, the key is to find an importer that focuses on the New World. It is only in that case, and with the support of Chile’s success, that we will move forward.”
Sebastián Pizarro, from Casa Montes, observed that “besides their focus on France, importers are eager to find new alternatives, particularly wines from the New World. They also want to get to know new varietals and wines offering good value.”
“Asians look for reliable winemakers to start negotiations and establish long term relationships, in addition to good packaging, price and quality. They assign great importance to the history behind each wine, and even more so to the personal relationships with the winery; that is why commercial negotiations to include a new company often take longer than usual,” explained Leandro Rigo, Viniterra’s Export Director.
Although Argentinian wines are not all that well-positioned yet, Marcelo Marasco, Bodega Séptima’s Export Manager, stressed the fact that there was more interest in them this year, as well as higher recognition. “In general, they look for attractive price ranges. Those who already have Argentinian wineries in their portfolios were interested in expanding the category and going along with the growing world trend to consume our wines.”
The conclusion that Nicolás Cornejo, from Familia Muñoz, drew from this fair was that Asians are looking for “wines to complete their New World portfolio, good price/quality ratio and suppliers who can offer medium to large volumes.”
What do consumers think about Argentinian wine?
It should be noted that Asian consumers, in general, are still beginners in the world of wine. To them, everything revolves around France and there is very little interest in other countries. Marcelo Marasco remarked that there is a broad range of consumer types from Japan to Malaysia, from the most daring to the most conservative. “Argentinian wine is quite new for them, so it is appealing to those who are seeking new experiences.”
According to Leandro Rigo “Asian consumers are not familiar with our wines. However, when they taste our products, they are surprised by the good value and the great diversity our country has to offer beyond Malbec and Torrontés. I personally believe that Argentina should invest more in promoting its products, as Europeans (and particularly the French), Australians and Chileans have been doing for years.”
In addition, Mauricio Lorca highlighted that something that calls their attention is the fruit in our wines. “At the fair they were impressed by the tastiness and fruit expression of our products. Argentina should keep on exploiting its potential for ripe tannins and fresh fruit in order to be competitive. They were also quite keen on oak, but in the right amount, as they are not interested in very oaky wines.”
“In Asia, Malbec exports have a smaller share than the rest of the export varieties (about 22%, against a 40% share of Malbec in total exports),” Leandro Bastías explained. That is why he pointed out that “Argentina has a long way to go in terms of generic promotion and category building in Asia, since consumers are choosing more ‘international’ varieties and not our flagship variety. Argentina, as a winemaking country, and Malbec, as a variety, are unknown to Asian consumers.”
Furthermore, Sebastián Pizarro noted that “Asian consumers identify themselves more with wines from France, a country that captures the greatest share of the Asian market. However, importers are slowly looking for new alternatives with different styles, from new winemaking regions, and it is in that sector where Argentina is competing. Still, we need to be aware that those who buy our wine are not low-income consumers, and neither do they live in their country of origin.”
Translation: Inglés del Vino
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