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Posted: Wednesday, June 11 2008. 11:56

Southern Hemisphere Gaining Market Share

According to OIV, Southern hemisphere wine producers will continue to gain share in the world market with a 5% growth in 2007, because of their aggressive marketing which targets only a few brands according to a report by Reuters

OIV, The International Organisation for Vine and Wine is a leading world body for vines and wines. It forecasts a growth in production to 51.4 million hL (in 2007) and expects a rise in the southern hemisphere's share of world wine exports to almost 25 percent.

"In general we have seen an overall increase in production and there have been big developments in exports in all the southern countries," said Federico Castellucci, the Italian Director-General of the Paris based OIV.

Southern hemisphere producers are focusing on their key export markets – UK, USA and Germany -- where they are steadily eroding the market share of traditional European producers like France, Italy and Spain. Chilean producers in New York said they would be aiming their wines at the U.S. palate and pocket, where wine consumption is still rising unlike Europe.

Despite strengthening their overseas presence, southern hemisphere producers have struggled to enter the French market although there has been growing interest among young people.

In 2006, sale of foreign wines in French supermarkets was just two percent of the total volume sold, according to the latest statistics from French agricultural body Viniflhor.

 

       

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