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Balance of power shifts between major wine countries at ProWein

Published:  25 March, 2013


The balance of power between the main wine-producing countries is there to see at this week's ProWein, with all facing their own difficulties while trying to exploit new opportunities.

The balance of power between the main wine-producing countries is there to see at this week's ProWein, with all facing their own difficulties while trying to exploit new opportunities.

Andrew Maidment, UK head of Wines of Argentina, told Harpers: "Every country seems to have, to lesser or more degree, their own Achilles' heel at the moment. The key is how you deal with that while at the same time capitalising on the opportunities that are there for growth."

Gary Greenfield, managing director of Distell Europe, said it is fascinating to see the different challenges that face each of the major wine countries and the impact the overall lack of wine in the global marketplace is having on the industry. "But it all goes round in cycles. New Zealand and Australia have their problems with currency and supply, while Italy and Spain are facing up to wine shortages of their own. For us in South Africa we are seeing we have lost a little ground in many of the key markets like the Netherland and Sweden, but I am confident it will come back."

The pressures on dry costs and overall supply chain difficulties are also holding back many of the wine countries. Greenfield said the cost base in South Africa, for example, was putting further pressure on growers and farmers and that inflationary pressures were hitting net incomes.

Argentina, added Maidment, is also facing its own dry cost issues and that all wineries were working hard to "keep costs under control".

The growth and impact of bulk wine on key wine countries is a key trend at this year's ProWein. Greenfield said it was a concern that so much wine coming out of South Africa was now being shipped in bulk. "It is a big challenge for our industry. It is imperative, in our view, that we try and keep as much bottling as we can in South Africa. We need it for our industry, for our workers and for the stability of the industry."

Maidment said that while there were those who "fight against" bulk wine, there is no doubting it is the right commercial model for wineries of a certain scale. "It is important after all that we find the most efficient way to get wines to market at a price that consumers can afford."

For those involved in bulk wine it was important to look at bulk wine trends in all markets and not just the country you are looking to buy wine from, stressed Anya Robson, business manager for bulk wine brokers Murphy Wine Company. "If you are looking to buy bulk wine, say, from Spain, it is important you also know the situation in South Africa and how the availibility of wine at different price levels there can then impact the demand and price of wine in Spain."

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