Wine Industry in Chile Wines of Chile Agenda

Wine Industry in Chile Wines of Chile Agenda

Wine Industry in Chile
Wines of Chile
October 2008
Agenda
• National Wine Industry
• WoC Objectives and Strategy
• WoC Programs
• Challenges
Chilean Wine Industry
• Very decentralized
Geographical Region
IV:
Ha.
2,271
%
2%
V:
5,540
5%
RM:
VI:
10,791
33,856
9%
29%
VII:
50,315
43%
VIII:
14,000
12%
Valleys
Elqui
Limari
Aconcagua
Casablanca
San Antonio
Maipo
Cachapoal
Colchagua
Curico
Maule
Itata
Bío Bío
Malleco
• Actual surface: 116.793 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
Wine Exports by Product
PRODUCT
September 2006 - August 2007
Bottled
Other packed wines
Bulk
Sparkling and others
TOTAL
Litres
1000
336,935
22,205
240,959
2,632
602,731
September 2007 - August 2008
US$
Average Price Litres
US$
1000
US$/ LTRS
1000
1000
997,563
2.96
351,636 1,143,231
38,543
1.74
22,437 45,149
125,354
0.52
202,599 136,674
8,280
3.15
3,911
13,468
1,169,740
1.94
580,583 1,338,522
Average Price
US$/ LTRS
3.25
2.01
0.67
3.44
2.31
Variation % 2007/2008
Litres
US$
Average Price
4.4%
1.0%
-15.9%
48.6%
-3.7%
14.6%
17.1%
9.0%
62.7%
14.4%
9.8%
15.5%
28.8%
9.5%
19.1%
• Bottled wine exports reached US$ 1.143 (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
Exports Market by Geographic
Area
Bottled Wine
Main Destination Markets
Bottled Wine
Country
SEPTEMBER 2006 - AUGUST 2007
Cases (9 LT)
1000
UK
8,687
USA
6,271
Canada
1,589
Netherland
1,692
Denmarc
1,244
Brasil
1,951
Ireland
1,340
Germany
1,784
Japan
1,086
Belgium
836
Subtotal
26,479
Others
10,959
37,437
TOTAL
US$
1000
193,925
169,852
56,627
44,878
39,426
46,527
42,225
47,434
30,616
25,447
696,957
300,606
997,563
Average Price
US$/ Case
22.32
27.09
35.64
26.53
31.69
23.85
31.51
26.59
28.19
30.46
26.32
27.43
26.65
SEPTEMBER 2007 - AUGUST 2008
Cases (9 LT)
1000
8,506
6,690
1,711
1,978
1,378
1,988
1,340
1,594
1,398
883
27,465
11,605
39,071
US$
1000
213,595
186,766
67,471
57,905
49,748
49,392
47,746
45,111
39,348
31,071
788,153
355,078
1,143,231
Average Price
US$/ Case
25.11
27.92
39.43
29.28
36.11
24.85
35.63
28.30
28.14
35.18
28.70
30.60
29.26
Variation % 2007/2008
Cases (9 LT)
US$
Average Price
-2.1%
6.7%
7.7%
16.9%
10.7%
1.9%
0.0%
-10.6%
28.8%
5.7%
3.7%
5.9%
4.4%
10.1%
10.0%
19.1%
29.0%
26.2%
6.2%
13.1%
-4.9%
28.5%
22.1%
13.1%
18.1%
14.6%
12.5%
3.1%
10.6%
10.4%
13.9%
4.2%
13.1%
6.4%
-0.2%
15.5%
9.0%
11.6%
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
Wine Exports to Vietnam
• Total Wine Exports
RNK
Bottled
US$
LTS
Litres
39º
40º
925.609
Other Packed
US$ FOB
Litres
3.478.945 121.011
Bulk
Sparkling and Others
Total
US$ FOB
Litres
US$ FOB
Litres
US$ FOB
Litres
US$ FOB
188.017
458.314
285.062
333
851
1.505.267
3.952.876
• Bottled Wine Exports
September 2006 - August 2007
September 2007 - August 2008
Variation %
RNK
Cases
US$ FOB
Average Price
Cases
US$ FOB
Average Price
Cases
US$ FOB
Average Price
39º
32.924
1.114.171
33,84
102.845
3.478.945
33,83
212,4
212,2
0,0
Wine Exports to Vietnam
• Bottled Wine Exports by Winery
SEPTIEMBRE 2006 - AGOSTO 2007
SEPTIEMBRE 2007 - AGOSTO 2008
VARIACION %
CAJAS
US$ FOB
Precio Promedio
CAJAS
US$ FOB
Precio Promedio
CAJAS
1º
VIÑA MONTES
2.499
169.640
67,89
7.757
528.467
68,12
210,5
211,5
2º
VIÑA CONCHA Y TORO
4.002
100.629
25,15
13.374
320.954
24,00
234,2
218,9
-4,6
3º
VINA VENTISQUERO LTDA
2.241
46.329
20,67
5.264
203.994
38,76
134,9
340,3
87,5
4º
20,3
RNK EMPRESAS
US$ FOB
Precio Promedio
0,3
VIÑA SAN PEDRO
1.380
48.205
34,93
4.231
177.848
42,03
206,6
268,9
5º
BODEGA CASAS DE MAULE LTDA
1.344
18.169
13,52
11.548
155.763
13,49
759,0
757,3
6º
VIÑA SANTA RITA
1.064
33.000
31,02
3.803
147.879
38,89
257,4
348,1
25,4
7º
Chilean Wines and Friut Co.
0
0
0,00
3.555
113.221
31,85
100,0
100,0
100,0
8º
VIÑA MONTGRAS
9º
VIÑA CARTA VIEJA
10º BARON PHILIPPE DE ROTHSCH
1.329
26.179
19,70
2.570
-0,2
106.470
41,43
93,4
306,7
110,3
1.650
61.017
36,98
4.174
105.313
25,23
153,0
72,6
-31,8
2.750
88.661
32,24
3.413
103.774
30,41
24,1
17,0
-5,7
11º VIÑEDOS Y BODEGAS CORPORA
1.546
39.880
25,80
3.300
103.197
31,28
113,4
158,8
21,2
12º VIÑA VALDIVIESO
2.047
83.840
40,97
1.772
90.527
51,09
-13,4
8,0
24,7
13º Viña Errázuriz S.A.
480
27.225
56,72
1.254
89.105
71,06
161,3
227,3
25,3
14º TERRAUSTRAL
0
0
0,00
3.300
86.264
26,14
100,0
100,0
100,0
15º VIÑA LA ROSA
0
0
0,00
2.100
85.230
40,59
100,0
100,0
100,0
245
22.674
92,55
605
73.453
121,41
146,9
224,0
16º CHATEAU LOS BOLDOS
31,2
17º VIÑA ESTAMPA
0
0
0,00
2.063
73.430
35,59
100,0
100,0
100,0
18º VIÑA VERAMONTE
0
0
0,00
1.500
67.700
45,13
100,0
100,0
100,0
19º SOCIEDAD VINICOLA DE AGUIRRE
60.494
20,60
100,0
100,0
100,0
0
0
0,00
1.910
58.220
30,48
100,0
100,0
100,0
OTROS
10.348
348.723
33,70
22.416
727.643
32,46
116,6
108,7
-3,7
TOTAL PAIS
32.924
1.114.171
33,84
102.845
3.478.945
33,83
212,4
212,2
0,0
20º ARESTI CHILE WINE
0
0
0,00
2.937
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
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
Foreign Viticulture Investment in Chile
•Miguel Torres. (Spain)
•Kendall Jackson (United States)
•Domaines Barons Philippe de Rothschild
(Laffite) – Viña los Vascos (France)
•Viña Domaine Oriental at Maule Valley
(France)
•Chateau Larose Trintaudon – Viña de
Larose (France)
•Villard Fine Wine (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)
•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)
•Franciscan State Selection (United
States)
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
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.
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.
Activities
• Journalist, Buyers and Sommeliers Visits
Activities
• Tastings and Seminars
Activities
• Consumer and trade fairs
Activities
•Inserts and newsletters
Activities
• Specialize Magazines
Activities
• Market Intelligence
Activities
• Sommelier Summit
Activities
•On trade promotions
Activities
•Point of sale promotion
Activities
•Awards: AWOCA, Innovation Awards.
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