Argnetine Wines at Publix

Argentine wines compete for Florida supermarket shelf space. The new ad campaign isn't going to help.

Wines of Argentina, the entity uniting over 200 major vineyards with the goal of promoting the Argentine wine industry in foreign countries, has unveiled a new logo and ad campaign designed to reposition the “Wines of Argentina” brand. But rather than simply defining the value proposition of Argentine wines with a few bullet points or salient takeaways, the campaign is a self-absorbed melange of contradictory words and phrases leaving Argentina wine novices more confused than ever.

Instead of emphasizing what makes Argentine wines truly unique (e.g., price:quality ratio, amazing blends, different altitudes, dominant Malbecs, emerging Bonardas and Torrontés), the new campaign addresses dozens of contradictions and personality traits of Argentines in a three-minute YouTube video. Not a single glass of wine appears in the entire video filled with images of BA traffic, glaciers, soccer fans, quilts and nonsensical quotes like “We oscillate between pride and reproach, success and skepticism, love and terror.” Amid the verbal chaos, you halfway expect Derek Zoolander’s Merman to swim to the surface and declare “Malbec is the essence of moisture.”

The new campaign debuts next week at VinExpo in Bordeaux complete with new fuchsia (yes, fuchsia) logo which 52% of MDZ Online readers apparently do not like. Whether France and the rest of the world warm to the new campaign remains to be seen, but it’s hard to imagine how something so introspective, conflicted and 100% Castellano helps sell even one bottle of wine in the hyper-competitive world of international wine sales. (Full Story in Spanish)

Argentine Vineyard

Argentine wineries may be on the verge of cultivating a one-two-red-white knockout combination.

Argentina’s December wine export numbers are now available, so we finally have a figure for full-year 2010 exports of Argentine wine and grape juice: US$864.5 million, a healthy 12% increase over full-year 2009. Export volume rose 6.7% in December compared to 2009, while the total value of Argentine exports reached US$77.8 million, a 21% increase over December 2009.

The 2010 number edges out the US$860 million figure Argentina recorded in 2008, according to Los Andes’ Gabriela Malizia, who points out total volumes keep declining while the quality of wine exported keeps rising. Argentina’s total wine exports actually fell 6.7% in 2010, but the decrease was more than offset by increased revenue thanks to a more favorable product mix: more bottled wines, premium wines, sparking wines and fewer bulk wines and juices.

Malbec continues to be the signature grape rock star among Argentina’s exports, now accounting for 40.1% of all Argentine bottled wine exports (up from 34% in 2009), and the number one most preferred wine in 23 of Argentina’s Top 25 International Wine Markets (the Netherlands imports more Chardonnay and Paraguayans prefer red blends). In those 23 countries, Argentine Malbec typically enjoys market shares in excess of 30% like the United States (60%), Switzerland (48%), Mexico (47%) and Peru (37%).

With Malbec’s dominance in the universo tinto, the timing of Torrontes sudden splash on the world stage could be setting up the perfect one-two-red-white knockout combination for Argentina. Malizia says Torrontes was the second-fastest growing Argentine export in 2010, a trend that will continue in 2011 thanks to articles like Eric Asimov’s piece this week in the New York Times. (Full Article in Spanish)

For more Argentina wine and vineyard news, download the new issue of InvestBA Privada.

Argentine wines being served at Montreal's Passion Vin

Canadian festivals like Montreal Passion Vin are helping bring more Argentine reds to market.

While the U.S. is scheduled to become the world’s largest wine-drinking market by 2012, the neighbor to the north isn’t lagging behind.

“Canadians might have a new passion to add after hockey: being wine connoisseurs,” the country’s Financial Post opined early last year. As one of the world’s fastest-growing markets for wine consumption, Canada is an important export destination for many Argentine vineyards.

Canada also offers an interesting case study in the maturity and increasing diversity, both in terms of blends and geography, of Argentine offerings abroad. While lower-priced malbecs and malbec-shiraz blends from Mendoza helped fuel a 27% increase in wine consumption from 2003-07, Canadian wine connoisseurs are starting to discover the joys of Bonardas, Torrontes, Tempranillos, Pinot Noirs and even Cabernet Francs produced in other Argentine regions like San Juan and La Rioja to the north and Neuquen to the south. (Map)

Canadian wine critics from Edmonton to Montreal weighed in this week with their recommendations which focused on these newer, pricier blends from Argentina. The geographic expansion beyond Mendoza bodes well for foreign investors looking to produce unique blends in the sandy soil of Salta or the cooler climes of Neuquen.

While experimental vineyards have been producing wines in these regions for less than a decade, the results have been phenomenal. Wine Spectator’s Matt Kramer confirmed this with a recent journey to Salta and an excellent review of several southern bodegas titled Into the Patagonia Desert.

For more information about Argentina wine and vineyards, visit our archives and download the new issue of InvestBA Privada.

 

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