| All the way from Argentina, Brigitte Roué de Barreiro of Trapiche writes:
I read with special attention Subhash Arora's article 'Don't cry for Argentina ! Market It' (July 28). Let's hope the market will open up in the future to Argentine wines. Chileans have led the way for South American wines in many countries, as they started exporting 25 years before Argentina did! But we can see that in some key markets ( USA and Brazil ), the trend is now changing and Argentina is getting stronger every day.
Trapiche, the leading exporter of bottled wine from Argentina , is represented in India by Sula Wines. I enclose our first Newsletter, which will give you an insight on our wine industry and on Trapiche.
Editor Note: delWine would like to share certain interesting bits of information from the inaugural number of the Trapiche newsletter. Here's what the newsletter has to say about Argentina 's wine industry and the minuscule, but rising, presence of Argentine wines in the international market.
Argentina's Wine Industry at a Glance
Argentina is the fifth wine producer in the world and has a total cultivated planted area of 210,000 hectares . It directly employs 100,000 people. Its share in the international wine trade is a mere 1.5%. This low presence is explained by a traditionally strong domestic market. With a population of 38 million, Argentina is the sixth wine consumer in the world. Argentina has always been a large consumer of wine.
Domestic consumption reached in 34 litres per capita in 2005, but it was 90 litres in 1970. In the past 20 years, the domestic market has dropped by 40%, but sales of premium to icon wines grew by 80%. Today, 930 wineries are operating in the country.
Investments in the industry reached US$1.5 billion in the last 15 years and will increase by another US$ 200 million by 2010.
Bottled-wine exports reached US$250 million (FOB) in 2005 and are expected to grow by 30% in 2006 . Argentina exported nearly 12 million nine-litre cases in 2005. The top export destination (in value) in 2005 was the US (23% of the total); the US market has registered a 37% growth compared to 2004. The UK is second with 13% of the total. Brazil is third with 8%; Canada and The Netherlands ranked fourth and fifth.
Scandinavia is the region that registered the most significant growth in 2005: Finland grew 67%, Norway 64%, Sweden 34% and Denmark 30%. By 2020, according to the Plan Estratégico Vitivinícola (Viticulture and Winemaking Strategic Plan), Argentina 's wine business (domestic and exports) would reach US$2 billion and it will command a 10% share of the international market.
From January to March 2006, Argentine bottled-wine exports were valued at US$66 million, registering an increase of 28 % compared to the 2005 figures. Among grape varieties, Malbec is the leader, with 30% of the share, but the varieties that grew the fastest were Pinot Noir (+70%) and Sauvignon Blanc (+46%). As many as 215 wineries exported 886 brands.
To view the newsletter, go to www.trapiche.com.ar
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