Sunday, May 28, 2023

Brazil and Peru, two countries to be taken into account by Spanish wineries coming to FENAVIN

Wine consumption is increasing in Latin America, although Spanish wine is still poorly positioned in countries such as Brazil, which is the leading importing country in the region due to its market size (200 million inhabitants). In 2021, it imported $477 million in wine, representing about 40% of wine imports in the region.

However, explains María González Ballester, FENAVIN representative in this country, Spanish wines have difficulty being competitive in price compared to other wines such as those from Argentina or Chile, which enter the Brazilian market with 0% tariffs; and with wines from European countries such as Portugal or Italy, which have better status because of their cultural ties to the country. “The competition is huge, therefore, it is necessary to study the market in advance,” he says. On the other hand, costs in terms of bureaucracy, taxes and logistics have an impact on the final price of the product, so it is important to do research before entering the market. But it is advised to do the price analysis by the exporter.

On his part, Fenavin’s representative in Peru, Elias D. Diaz, indicated that after the pandemic, there has been an increase in wine consumption, with women registering the highest percentage of purchases in its various presentations. And although wine consumption is low in Peru compared to other countries in the region, per capita consumption by Peruvians exceeds 2 liters.

On the other hand, the representative in Peru highlights the process of “democratization” that has entered wine consumption in this Latin American country. Twenty years ago, the consumption of this drink was exclusively associated with A and B households (which represented about 10% of the country’s total); Currently there is a certain demand for these types of products in Level C (which represents about 30% of the country’s total population).

With this evolution, the profile of the Peruvian consumer has also varied in the amount and type of wine demanded. Whereas, until about 15 years ago, most of the wines consumed in the country were of low quality, mostly sweet and locally produced, more recently foreign wines such as Spanish wines have been imported, with high added value and with medium-high prices.

Thus, currently, the bulk of imports go to a segment of the population with medium-high socioeconomic status. “As there is greater demand for wine, its distribution channels have broadened and access to the product has become more affordable, both in terms of availability, variety and price. Euro) and S/120 (30 Euro) for what they consider to be of higher quality.

In any case, even in the Peruvian market, it is a product that still has a long way to go, and it is customary to consume it only for special cases and events, in fact, says Elias D. Diaz “Advantage should be taken of the fact that Peruvian gastronomy is one of the most recognized in the world and that it can be better tasted with a good wine”.

Therefore, Brazil and Peru are two countries to be taken into account by Spanish wineries that will come to do business with FENAVIN. The National Wine Fair, which will be held between May 9 and 11, is considered by Brazilian importers as “the reference fair for Spanish wine”. A place where it is possible to connect with wineries from different DOs and where you can get to know new products and accelerate trade with Spanish products”, the commercial representative in this country signals the end.

The fair’s image is also growing in Peru, where the event is disseminated by Peruvian importers who visit it, and due to its greater exposure and increased consumption of high-quality Spanish wines. “It seeks importers to discover and expand their portfolio of imported wines which they can market and distribute in their respective regions,” concluded the FENAVIN representative in that country.

World Nation News Desk
World Nation News Desk
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