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Home
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Working Papers
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Strategies of Argentinean Wineries in Export Markets 2009-2011

Working Paper No. 166

Published: 2014
Category:
Business

Strategies of Argentinean Wineries in Export Markets 2009-2011

Xavier Brevet, Jimena Estrella Orrego & Alejandro Gennari
Full Text PDF
Abstract
Argentinean wineries experienced a tremendous 4-time growth in their export value between 2000 and 2012, while for the same period the average rise of world wine exports was around 70%. Today, Argentina is the 9th biggest wine exporter in the world. The country has succeeded in building ”king of Malbec” notoriety and many of its wines rank as best sellers in foreign markets. This impressive growth is the result of the winning strategies wineries implemented years ago. Indeed, in the late 90’s the industry changed its model to focus on the production of quality wines and the development of foreign markets. New marketing and communication tools were created and have strongly contributed to wineries ́ success. Two decades later, new challenges for this quality model appear. On the one hand, wineries ́ margins are threatened by high inflation in Argentina. On the other hand, higher buyers ́ concentration in foreign markets defines wineries ́ reduced bargaining power. A descriptive analysis, based on Argentina Customs Office data, was carried out to understand last years ́ performance and identify possible trends. Grape varieties, vintages, price, marketplaces and bottle sizes are described. Main differences between foreign markets are pointed out. Four different categories of wineries are described based on their export volume. Their specific strategies in terms of price segment are assessed allowing an identification of their different profiles. Results show the price upgrading strategy of the Argentinean industry. Cheap wines have traded up towards premium category as the only way to deal with inflation pressures. Whereas some expensive wine have traded down towards premium category in an attempt to conquer consumers threatened by the ongoing economic crisis.

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

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