How South America offers price, volume and quality for the new wine season
by Richard Siddle
For football fans around the world there is nothing quite like the start of a new season. No matter what happened to your team the year before, this is a fresh, new start and anything could happen. Everyone starts with zero points and this could be the year that your team finally gets to win something.
Most football fans also know that even if your team does come out top, then you need to make the most of it as the balance of power is always shifting, and your moment in the spotlight could be gone the next season.
Now wine buyers don’t exactly spend their summer months looking at the pages of the trade press for the latest wine transfer news. But if they are following the market closely then they could have a good idea which of the world’s major wine producing countries are going to be fighting it out at the top of the wine league for the year ahead.
For just like the ups and downs of the average football season, wine also has its winners and losers every year, based on the vagaries of the weather, and the turbulent currency markets that suddenly make one wine team far more attractive to follow than other.
So who is looking like having a good wine season come September? Well, Paul Schaafsma is a good man to ask. The former Australian Vintage and Accolade Wines chief, who is now running his own wine agency business, Benchmark Drinks, is well versed in how the wine transfer market works. Particularly when it comes to investing in or partnering with the right wine producer and brand owner from the most competitively placed wine country at the same time.
Global wine industry faces threats on "multiple fronts" according to new report
The global wine market has grown by 1.2% in the past year, but is facing a number of threats on "multiple fronts" according to a new report by Compass from Wine Intelligence.
“The good news from Compass 2019 is that more people are paying more money for their wine around the world than ever before,” said Luis Osorio, Compass' senior project manager and editor.. “On the other hand, large numbers of wine drinkers are moderating their consumption of wine, perhaps because of health reasons, perhaps because other alcohol categories are taking a share.”
Overall, the worldwide trade in wine is worth $204bn, although the total volume of wine decreased slightly. The US remains the world’s most attractive wine market, with consumers willing to trade up in price, though growth there has slowed.
Elsewhere, China, Australia and Russia are experiencing a slowdown, while Eastern European countries such as Poland, Romania, Hungary and Slovenia are growing.
“South Korea has also seen a significant increase in attractiveness, making it into the top 10 for the first time,” said Wine Intelligence.
India’s market is also looking slightly more positive for wine exporters, as wine imports are growing, albeit from a very small base.
“The key uncertainty remains how the global trade picture changes during the next 12 months,” said Osorio. “An escalation of the Trump tariff war and the threat of a disorderly Brexit are known factors, but unquantifiable at the moment given the range of possible outcomes they represent.”
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