Argentine Wine Gaining Market Share in Brazil, Canada

Argentine wines finally eclipsed Chilean wines in Canada, while market share in Brazil is a healthy 24%.

Canada and Brazil are two of the most important export markets for South American wines, so today’s headline from Gabriela Malizia and Laura Saieg of WineSur is bound to make more than a few home-grown vintners smile, “Argentina wins in Canada and is hot on Chile’s heels in Brazil.”

We’ve reported recently that Brazilians are buying “everything” in Argentina, and wine is no exception according to the country’s Ministry of Development, Industry and Foreign Trade. Comparing the first seven months of 2009 with 2010, Argentine wine exports to Brazil rose 42% from US$17.9 million to US$25.5 million.

Chile remains the #1 wine exporter to Brazil with 35% market share, although Argentina is gaining with a respectable #2 ranking and 24% market share. Portugal, Italy and France round out the top five exporters to Brazil.

In Canada, where Argentine reds have engaged in a bit of playful seduction, the total value of all wines imported is almost ten times that of Brazil, with Italian, French and Australian wines dominating the top three spots. Chile was historically the #5 wine exporter to Canada followed by Canada; however, Argentina finally eclipsed Chile in 2009 with total exports of US$80.9 million versus US$71.4 million. (See graph)

Argentina’s market share in Canada has jumped from 1.7% in 2004 to 6.7% in 2009, according to WineSur, while Chile’s has remained steady around 6%.  (Full Story from WineSur)

For profiles and recommendations of some wonderful Argentine wines, download the new issue of InvestBA Privada.