Wines Of Chile

Claudia SolerPlanning and Research Manager WoC

THE CHILEAN WINE INDUSTRY

THE CHILEAN WINE INDUSTRY

• Surface increase from 54.000 (1995) to 118.000 hectares (2007)

• Growth in wine production from 382 millions of liters in 1996 to 961 millions

in 2009 (8,9% annual growth)

• Moderate growth in domestic consumption from 218 million liters in 1995

to 298 millions in 2007 (2,6% annual growth)

• Wine Exports: Represent 2.8% of total chilean exports and 11% of

agroinduustrial exports. They grew from 129 to 615 millions of liters and

from US$182 millions to US$1.360 millions in 1995 – 2009 (17% annual

growth). 85% is bottled wine.

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

• Total Exports by Product (MAT August 2009)

• Bottled vs Bulk – Volume: 1,5 times – Price per Liter: 4,6 times– Value: 6,7 times

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

• Chile is the country with the biggest export/production proportion : 68%

CHILEAN WINE INDUSTRYCHILEAN WINE INDUSTRY

Vinos de Chile A.G.

• The Vinos de Chile Trade Association (www.vinosdechile.cl) is a private, not-for-profit entity that represents the country’s vitivinicultural producers.

• It was created on April, 2007 after an historic agreement between the two pre-existing associations—both now inactive—Viñas de Chile A.G. and ChileVid A.G., which allowed Chilean producers to unify the industry’s representation for its trade and promotional efforts.

• Vinos de Chile currently has 89 member wineries, which represent over 92% of Chile’s exports of bottled wine.

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Vinos de Chile A.G. – DescriptionVinos de Chile A.G. – Description

• To facilitate the growth and strengthening of Chile’s wine industry, participating in the analysis and development of relevant governmental policies, trade negotiations and regulations.

• To promote Chilean wine in the domestic and international markets.

• To coordinate the research, development and communication of new technologies and best practices throughout the industry’s chain, from production to marketing.

• The promote the advancement of industry workers through technical training, certification, and other instructional programs.

• Take leadership in developing the environmental, social and sustainability standards for the Chilean wine industry.

• To communicate valuable information to its members.• Be a meeting point for its members and guide them in the

different phases of the business without affecting their individual identities.

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Vinos de Chile A.G. – The Association's RoleVinos de Chile A.G. – The Association's Role

AREAS OF THE ASSOCIATION

Vinos de Chile A.G.Vinos de Chile A.G.

Vinos de Chile A.G. – OrganisationVinos de Chile A.G. – Organisation

Wines Of Chile

Mission and Objectives of WoC• Mission:

– Strengthen the category of Chilean Wines in International Markets by Increasing Brand Value and Improving Industry Exports and returns.

• Objectives– Reach a level of exports FOB by 2012 of US$ 1,700 millions,

increasing the average price (10% annual growth in value)– Increase and strengthen the image of “Chilean Wine”,

positioning Chile as a quality producer with great value wines in every price bracket, specially in the segment between USD 12 and USD 25 retail.

Strategies– Improve positioning in key segments (Press, Buyers, Sommeliers &

Consumers) through a mix of educational programs aligned with the desired positioning.

– Develop strategies to penetrate principal distribution channels:• On-Trade: stimulate demand through better exposure & education

– Create and nurture memberships with members of the on-trade.– Build interest in tasting and experiencing more Chilean wines. – Reinforce the use of this information as a sales tool/argument.

– Off-Trade (supermarkets and specialty shops): stimulate demand through education and promotions

– Educate the educators (Distributor training)– Reinforce the “Outstanding Value” message in all price ranges– Actions to support points of sale

– Country Image: Incorporate the positioning of wine, the country’s differentiating attributes, geography, culture, and people and invite people to experience Chile and its wines.

– Price focus for activities: ALWAYS above USD 10-12 retail– Geographic focus in each market

Programs• WoC has programs operated by marketing and public relation

agencies in:–Canadá, operated by three agencies in Vancouver, Montreal y

Toronto–EE.UU. with an agency in Nueva York– Ireland–Denmarc

• An office in UK (London) and US (NY)

• With ProChile we cover 12 to 15 complementary markets in Asia, Latin America and Europe

• The main focus of most of the activities is to educate and to influence the gate keepers, with only a few activities with focus in consumers.

• PROWEIN (Germany), 39 a 31 de March, 33 wineries• LIWSF (UK), 12 a 14 de May, 31 wineries• VINEXPO Bordeaux (France), 21 a 25 de June, 20 wineries

Wine Fairs

• Annual Tastings: NY (june), Londres (sept.), Irlanda (march), Vancouver, Montreal and Toronto (Oct.)

• Regional Tastings and seminars in all markets

Tastings and Seminars: Education, Education, Education

Tasting NY

Tasting Londres

Tasting NY

Seminar Copenhague

Tasting London

Tasting Irlanda

Seminario Copenhague Vancouver

Montreal

Toronto

On-Line Blogger Tastings

Bloggers

2 USA Sommelier Summit• Total Immersion: Wine, Food and Culture

Market Intelligence !! Helps the decision making….

•Brasil•Japón•Corea•Rusia

•Consumer research in Canada•On trade Research in the US

Seminar for small wineries

• Irlanda, UK, USAPress Tasting:

Irish Times

Irish Examiner

On trade Promotions: creating oportunities• Salud! Chile: NYC - Washington (18-30 sept.)• Legal Seafoods - USA

• UK: Harrod’s• NY: Salud! Chilean Wine Fest (15 retailers)

Point of Sell Promotion: Facilitating the trial

Wines of Chile Awards

• January 2010: Focus Canada• 10 judges•Canadian Market Seminar•111 wineries•467 wines

Conclusions

• The future for Chilean wines is bright:– Optimal climatic and geographic conditions to

grow grapes– High level of investment in infrastructure and

human resources– Grapes planted looking for optimal terroir– As a consequence quality keeps on improving