Wine Industry in Chile Wines of Chile

Transcription

1 Wine Industry in Chile Wines of Chile October 2008 Agenda National Wine Industry WoC Objectives and Strategy WoC Programs Challenges

2 Chilean Wine Industry Very decentralized Geographical Region Ha. % Valleys IV: 2,271 2% Elqui Limari V: 5,540 5% Aconcagua Casablanca San Antonio RM: 10,791 9% Maipo VI: 33,856 29% Cachapoal Colchagua VII: 50,315 43% Curico Maule VIII: 14,000 12% Itata Bío Bío Malleco Actual surface: ha. 61% classical varieties Cabernet Sauvignon, Merlot, Chardonnay y Sauvignon Blanc 76% red varieties, 24% white varieties Chilean Wines in the World Chile is tenth in output and fifth in exports The wine industry in Chile represents 2.3% of total exports and 11% of agricultural exports

3 Wine Exports by Product PRODUCT September August 2007 September August 2008 Variation % 2007/2008 Litres US$ Average Price Litres US$ Average Price Litres US$ Average Price US$/ LTRS US$/ LTRS Bottled 336, , ,636 1,143, % 14.6% 9.8% Other packed wines 22,205 38, ,437 45, % 17.1% 15.5% Bulk 240, , , , % 9.0% 28.8% Sparkling and others 2,632 8, ,911 13, % 62.7% 9.5% TOTAL 602,731 1,169, ,583 1,338, % 14.4% 19.1% Bottled wine exports reached US$ (AUGUST 2008), with a growth rate the last 12 months of 4.4% in volume and 14.6% in value, increasing average price in 9.8% Of the total value, an 85% corresponds to bottled wine and a 10% to bulk wine Of the total volume, an 58% corresponds to bottled wine and a 37% to bulk wine Bottled Wine Exports Evolution

4 Exports Market by Geographic Area Bottled Wine Main Destination Markets Bottled Wine Country SEPTEMBER AUGUST 2007 SEPTEMBER AUGUST 2008 Variation % 2007/2008 Cases (9 LT) US$ Average Price Cases (9 LT) US$ Average Price Cases (9 LT) US$ Average Price US$/ Case US$/ Case UK 8, , , , % 10.1% 12.5% USA 6, , , , % 10.0% 3.1% Canada 1,589 56, ,711 67, % 19.1% 10.6% Netherland 1,692 44, ,978 57, % 29.0% 10.4% Denmarc 1,244 39, ,378 49, % 26.2% 13.9% Brasil 1,951 46, ,988 49, % 6.2% 4.2% Ireland 1,340 42, ,340 47, % 13.1% 13.1% Germany 1,784 47, ,594 45, % -4.9% 6.4% Japan 1,086 30, ,398 39, % 28.5% -0.2% Belgium , , % 22.1% 15.5% Subtotal 26, , , , % 13.1% 9.0% Others 10, , , , % 18.1% 11.6% TOTAL 37, , ,071 1,143, % 14.6% 9.8% Main Markets: UK (19%), EE.UU. (16%), Canadá (6%) Markets with Higher Average Price: Canada, Denmarc, Ireland Most Dinamic Markets: Netherland, Japan, UK, Denmarc

5 Wine Exports to Vietnam Total Wine Exports RNK Bottled Other Packed Bulk Sparkling and Others Total US$ LTS Litres US$ FOB Litres US$ FOB Litres US$ FOB Litres US$ FOB Litres US$ FOB 39º 40º Bottled Wine Exports September August 2007 September August 2008 Variation % RNK Cases US$ FOB Average Price Cases US$ FOB Average Price Cases US$ FOB Average Price 39º , ,83 212,4 212,2 0,0 Wine Exports to Vietnam Bottled Wine Exports by Winery SEPTIEMBRE AGOSTO 2007 SEPTIEMBRE AGOSTO 2008 VARIACION % RNK EMPRESAS CAJAS US$ FOB Precio Promedio CAJAS US$ FOB Precio Promedio CAJAS US$ FOB Precio Promedio 1º VIÑA MONTES , ,12 210,5 211,5 0,3 2º VIÑA CONCHA Y TORO , ,00 234,2 218,9-4,6 3º VINA VENTISQUERO LTDA , ,76 134,9 340,3 87,5 4º VIÑA SAN PEDRO , ,03 206,6 268,9 20,3 5º BODEGA CASAS DE MAULE LTDA , ,49 759,0 757,3-0,2 6º VIÑA SANTA RITA , ,89 257,4 348,1 25,4 7º Chilean Wines and Friut Co , ,85 100,0 100,0 100,0 8º VIÑA MONTGRAS , ,43 93,4 306,7 110,3 9º VIÑA CARTA VIEJA , ,23 153,0 72,6-31,8 10º BARON PHILIPPE DE ROTHSCH , ,41 24,1 17,0-5,7 11º VIÑEDOS Y BODEGAS CORPORA , ,28 113,4 158,8 21,2 12º VIÑA VALDIVIESO , ,09-13,4 8,0 24,7 13º Viña Errázuriz S.A , ,06 161,3 227,3 25,3 14º TERRAUSTRAL 0 0 0, ,14 100,0 100,0 100,0 15º VIÑA LA ROSA 0 0 0, ,59 100,0 100,0 100,0 16º CHATEAU LOS BOLDOS , ,41 146,9 224,0 31,2 17º VIÑA ESTAMPA 0 0 0, ,59 100,0 100,0 100,0 18º VIÑA VERAMONTE 0 0 0, ,13 100,0 100,0 100,0 19º SOCIEDAD VINICOLA DE AGUIRRE 0 0 0, ,60 100,0 100,0 100,0 20º ARESTI CHILE WINE 0 0 0, ,48 100,0 100,0 100,0 OTROS , ,46 116,6 108,7-3,7 TOTAL PAIS , ,83 212,4 212,2 0,0

6 Why Chile Produces World Class Wines? Chile: A Viticultural Paradise A combination of: Geography Climate Latitude Soils Chile: A Viticultural Paradise Geographic Isolation Hinder the entrance of plagues Soil variety Healthy soils, well drained, with good airing and great variety of texture. Mediterranean Climate Rainy winters, healthy soils well drained; warm summers, scarce rains and low atmospheric humidity; Thermic Differential between day and night Almost absolute lack of rains and other climatic accidents between September and April in almost all the viticulture-viniculture zones, which allows to cultivate an extraordinarily healthy vineyard, almost free of fungous, viral and parasitary diseases. Lots of sun hours Extense period of growth and maduration Great variety of agroecologycal conditions with a huge potential

7 Chile: A Viticultural Paradise Current of Humbolt When the sea breezes carried by the Cold Current of Humboldt, which climbs along the West Coast of South America towards the North, it finds masses of hot air of the coast, low clouds and fog build up, which penetrate towards the valley. During the night, the central valley receives the cold air descending from the snow- covered peaks of the Andes. Chile: A Viticultural Paradise In the vineyards, the alternation between the night s coolness and the diurnal heat during the period of growth favour the development of the acidity, the concentration of sugar, the colour and the fragance of the grape. For this, the production of grapes is natural, practically organic, for which producing organic wines results easy and accessible. Huge investments in technology and first level human resources

8 Foreign Viticulture Investment in Chile Miguel Torres. (Spain) Domaines Barons Philippe de Rothschild (Laffite) Viña los Vascos (France) Chateau Larose Trintaudon Viña de Larose (France) Baron Philippe de Rothschild Maipo Chile (France) Produits Marnier Lapostolle Casa Lapostolle (France) Soc. Du Vignoble William Fevre Viña William Fevre Chile (France) The Robert Mondavi Corporation (United States) Franciscan State Selection (United States) Kendall Jackson (United States) Viña Domaine Oriental at Maule Valley (France) Villard Fine Wine (France) Château Los Boldos (France) Viña Aquitania (Domaine Paul Bruno)(France) Mildara Blass (Australia) Viña Selentia S.A. (England and Spain) Odfjell Vineyards S.A. (Norway) Sogrape Viña Château Los Boldos (Portugal) Industry Perspectives World Industry Channel consolidation High level of competition Chilean Strength Natural conditions of Chile among best in the world for viticulture/winemaking Infraestructure in place Human resources at international level Chile Positioning Lack of country positioning Chilean wines position as value wines

9 Wines of Chile Mission Strengthen the category of Chilean Wines in International Markets by Increasing Brand Value (Wine of Chile) and Improving Industry Exports and returns (sell more expensive wines). Objectives Reach a level of exports FOB by 2012 of US$ 1,700 millions, increasing the average price (10% annual growth in value) Increase and strengthen the image of Chilean Wine, positioning Chile as a quality producer with great value wines in every price bracket, specially in the segment between USD 12 and USD 25 retail.

10 Strategies Market Positioning in key segments: Develop Positive perceptions in key segments (Gate Keepers): consumers, buyers, importers-distributors and journalists, among others. Increase presence in different distribution channels: special focus: ontrade and specialists Define price focus for all the activities: ALLWAYS above USD12 retail Define geographic coverage in each market Programs WoC has programs operated by marketing and public relation agencies in: Canadá, operated by three agencies in Vancouver, Montreal y Toronto EE.UU. with an agency in Nueva York Ireland Denmarc An office in UK With ProChile we cover 12 to 15 complementary markets in Asia, Latin America and Europe The main focus of most of the activities is to educate and to influence the gate keepers, with only a few activities with focus in consumers.

11 Activities Journalist, Buyers and Sommeliers Visits Activities Tastings and Seminars

12 Activities Consumer and trade fairs Activities Inserts and newsletters

13 Activities Specialize Magazines Market Intelligence Activities

14 Sommelier Summit Activities On trade promotions Activities

15 Activities Point of sale promotion Activities Awards: AWOCA, Innovation Awards.

16 Challenges Strengthen Wines of Chile Financing Incorporate the whole value chain in the financing of WoC Increase state financing Communication and information Continue investing in market intelligence and share it withing associates. Make sure that the information gets to the desicion makers Improve the communication between WoC, their associates and agencies. Improve the content and funtionality of the web page. Develop a Business Plan that includes a UNIQUE SELLING PROPOSITION, a vision and a process to reach it. Wine and suistainability (Triple Bottom Line: environmental, economic, social). We are missing an ambicious agenda. Fitosanitary condition of Chile: it could be the base of a comparative and competitive advantage. Conclusions We are optimistics: Natural conditions of Chile among best in the world for viticulture/winemaking The investments are in place Excelent human resources The industry is aligned behind the same strategy We have government support The suppliers are in our side and are investing in WoC El timing es favorable; the wine consumption ins increasing in key markets