Emerging markets not the solution

Published: 13 May, 2009

Emerging wine markets are not the solution to the world's oversupply, leading industry figures have warned.

At a seminar on emerging wine markets, experts stressed the risks involved and advised the majority to develop their existing markets.

Arend Heijbroek, wine sector specialist at Rabobank said: "The emerging markets are often said to the be the opportunity the solution for the wine industry. Many ask where should if these new outlets could solve problems of excess wine. But they should look at their current markets and develop them. Most don't understand the risk involved.

"For the big guys it's good to enter but for medium-sized companies should be careful where they are putting their money," he added.

Constellation Europe's vice president Troy Christensen supported the advice. "The emerging markets are an opportunity but Old World consumption is going back too quickly. Stemming the decline and grubbing up some excess supply would be more helpful in bringing back the balance," he said.

The Constellation chief also called for wine companies and generic bodies to collaborate to promote wine as a category rather than individual brands and countries.

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