In Chile, between 2016 and 2017 a series of natural disasters such as frosts, droughts, high temperatures and wildfires of great magnitude affected harshly the Chilean vintages, whose immediate consequence was 30% less collection of grape volume than registered in previous years.
To this described situation must be added the complex effect derived from the implementation of the Brexit that -among other things- led to the exit of the United Kingdom from the European Union, and that as a first consequence caused the British currency to fall in mid-2016 in a 13.9 %. Together with this, the US, which is an important buyer of Chilean wines, received a large number of offers with very competitive prices from other international vineyards of this product. In short, the effect of all this was the loss of the sale of some of our iconic wines in those two important markets.
Against this background, the Chilean vineyards changed their look and focused on the growing Chinese market, which is consistently showing a tendency to consume wine.
The evidence is that today China is one of the main consumers of wine in the world. They currently buy 52 million boxes and it is expected that by 2020 these can reach 92 million boxes.
During the year 2018, the vintage has presented a performance closer to periods considered normal. Also, some of the markets that had been depressed, show a recovery, thanks to the efforts of the vineyards themselves to reposition their products in the lost markets. On the commercial side, the exchange rate has shown a positive recovery.
In this second semester, there are already winds of recovery and a tendency towards an improvement in all aspects that were negative for the industry. Finally, with these positive symptoms, the long-awaited growth should come.
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Chilean wines occupy an important place in this booming market. According to Vinos de Chile, the trade association of wine producers of Chile, in 2016, exports from Chile to China rose 18 percent, making the Asian country the largest destination of Chilean wines, while the Latin American country is the second country of origin of the Chinese import of wine.
According to experts, Chilean wines have to advance in China’s high-end market. Until recently, French wines were privileged among Chinese consumers, but this is changing thanks to the great potential offered by Chilean wines, as they have a very good quality and really convenient prices, even cheap, in terms of price / quality ratio
Currently, Chinese consumers are paying more attention to wine quality, and higher quality products are coming out of Chilean vineyards, through the improvement of production processing and the incursion in what is called organic agriculture.
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