THE MENDOZA WINE COUNTRYArgentine Wines in NumbersArgentina has the most vineyards of all of South America, with more than 210,000 producing hectares, and is the fifth producer of wine in the world. Argentine wine exportations have been growing at an annual rate of 30%, and in 2005 hit a record of $410 million, much higher than the $210 million in 2004... There are over 1200 bodegas in the country, which produce about 1500 million liters a year, of which 1200 are consumed domestically. This is equal to the sum of the exportation of the so called “new wine world” (Australia, New Zealand, South Africa, Chile, USA). Over the last ten years they have received over $1.5 billion dollars in investment. It is estimated that each year the crops employ about 30,000 people. The sector generated about 3.6 billion pesos domestically and more than 200 million dollars with wine exports. Annual internal wine consumption places Argentina sixth as a market and fifth as a producer globally. Furthermore, wine production in Argentina is the main agro-industrial activity as far as labor and high added value are concerned. |
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Some visions: "The British consumer is an adventurer, with an open mind, and knows Argentine wines very well. Wine importation from there has grown a lot, but more than anything the quality has increased. Before, it was always associated with cheap wine imported in bulk." (August, 2005, James Murray, Executive Director of London International Wine and Spirits Fair). |
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"Although the country has problems, the Argentine wine industry continues to be very attractive, even without space for many projects..." Many of those who invested in a bodega didn’t do it as a business venture, but rather for pleasure. Thus, they are more than willing to continue losing money on these ventures.” (July, 2005, Herve Joyaux Fabre, founder of Fabre and Montmayou. He bought his first 15 hectares in the Mendocino municipality of Vistalba, which is now worth three million dollars. Today he has 80 hectares of vineyards and a bodega-boutique with an annual production of 450,000 liters. Seven years ago he also bought land outside of General Roca, where he began to develop a line of Patagonian wines: Infinitus). Exporting Wines During the first six months of last year Argentine wine exports grew by 27,2% with respect to the same period in 2007, according to a report by Mendoza consultancy Caucasia Wine Thinking, compiled using official customs-based trade data. According to the statistics, in the first six months of the year sales figures reached $US 213,3 million compared to US$167 million registered in the same period of 2006. If grape must exports are also included, exports between January and June of this year rose to US$ 283,3 million, 24% more than in 2006. The market that showed the greatest growth was Russia, with 106% growth, followed by Canada and the United States. According to the information released, the most demanded variety on the international market is Malbec, representing 29,6% of the exports. The second place is occupied by Cabernet Sauvignon, with 11,5%, and in third place is Chardonnay with 7,6% of the total. Amongst the market leaders, Chandon recorded the greatest increase in exports. The winery sold 1,8 million litres, worth 8,9 million dollars and obtained the highest average bottle price for its Terrazas de los Andes and Chandon labels: $US 4,94. |
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