The CCR`s measurement provided by Fondo Vitivinícola points out a 2% decrease in volume stabilized by a 19% increase in the total turnover of wines marketed in supermarkets, drugstores and grocery stores. This growth is driven by wines sold between AR$28 and AR$33.
The volume of wine marketed in supermarkets, drugstores and grocery stores -measured in the whole country by the consultant CCR- decreased 2% in the first quarter of 2010 compared with the same period in 2009. Nevertheless, the total turnover increased 19%, which is mainly due to an increase of 22% in the turnover of high-priced wines (between AR$28 and AR$33). The sales volume of this segment grew 12% in the analyzed period, while the average price of those wines increased 8%.
The decrease in the general volume is related to the tetra brick wine segment (-3%), in wines under AR$8 with a decrease of 10% and -4% in the low-priced ones (between AR$8 and AR$11). Concerning turnover, it grew 14% in wines under ARS$3.50 and 15% in wines under AR$5.50, which is explained by the average price of these products, which increased 27 and 19% respectively.
As regards red and white wines without varietal distinction, the red wine consumption fell 9% and the white one 8% between 2009 and 2010, contrary to what has happened with red and white varietals, which consumption grew 11%.
The market share (in volume) of the tetra brick segment remains as the most important one with 63.7% of the total wine consumption in Argentina -in the measured channels, which do not include consumption in hotels, restaurants, pubs, etc.-, while the wine segment of bottles under AR$8 is gradually dropping and today is at 14.5%.
Moreover, we should bear in mind the performance of the low-to-medium price segment (between AR$11 and AR$17) and the medium price segment (between AR$17 and AR$20) doubling its market share between 2003 and 2010, always analyzing the first three months of the year.
Market development and prices
Even though the total wine consumption is dropping, the first quarter of this year was less traumatic than in 2009, when the international crisis makes itself felt. The CCR`s measurement provided by Fondo Vitivinícola shows that in the same months last year, the decrease in monthly consumption -tetra plus bottle- was at least 2 points over the current one. Concerning bottled wine, it dropped 1% and 2% in the measured months, but it shows an increase in the average price per liter around 25% between February and March.
In the case of tetra brick, there has been negative development in almost every month, compared with the previous year: the worst month in 2009 was March, with a drop of 9%, while the worst month in 2010 was February, with a 6% decrease in consumption in liters. The tetra price has had an interesting development, according to the statistical curves, growing from AR$3.57 in March 2009 to AR$4.29 in March this year. In March 2008, the average price per liter was around AR$2.56. Moreover, the average price per bottle increased from AR$9.80 in March of the previous year to AR$12.13 in the same period this year. In March 2008, the price of this same item was AR$7.90
Re-print of the article "Domestic market: 19% increase in the total turnover of wines on the off-trade" written by Gabriela Malizia for Winesur.com
Source: http://www.winesur.com/news/business/19-increase-in-the-total-turnover-of-wines-on-the-off-trade
