The bulk wine market continues to be solid and robust for the Chilean wine industry. According to experts, its main risk lies in its high dependence on product availability in foreign markets and variations in international demand.
In the period from January to May 2019, 140.7 million liters of wine were exported in bulk, which meant a fall of 19.3% compared to the first five months of last year. However, shipments in value accumulated sales of US $ 140.7 million, which translated into just a slight 0.1% decrease compared to the same period of 2017.
Why is it that the sector has registered a decrease in volume, but not in value? The answer lies in the rise in the price that wine has recorded in bulk. In the January-May period, the average value of the product was US $ 1 per liter, which reveals an increase of 23.5% compared to US $ 0.81 in the same period last year.
However, the scarce availability of the product is not exclusive to Chile, a country affected by the weak vintages of last year and ancestor. The situation in the world is also complex.
Analysts say that with the harvest this year there is more wine available. Despite this, due to the increase in the price of wine, the local industry has seen the flight of many buyers, who have turned to Argentina, where wine has begun to fall. The problem with an expensive product is that the Chilean bulk industry becomes less competitive.
Bulk wine has increased its value by several factors. One of them is linked to Europe, which suffered its worst harvest in 50 years. In addition, South Africa registered a drought of large proportions. Australia, another important country in the segment, also saw an increase in its product. In the case of Argentina, the price of bulk has dropped, but it has a serious image problem. Unlike Chile, it is not a recognized exporter.
Of the total exports between January and May, almost US $ 38 million (26.8% of the share) was sold to the United States, US $ 36 million was sold to China (25.7% of the total) and the United Kingdom was sold. more than US $ 19 million (it represented 13.9% of commercialization). Given the shortage of bulk wine in Europe and other countries, virtually all major importers have registered an increase in purchases from Chile. In fact, China has seen its imports grow from Chile by more than 60%, France by 53.5% and Mexico by 38.2%.
Other experts say that Chile continues to be more recognized for its wines in bulk than bottled wines. The relevance of bulk wines to Chile is a reality.
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