Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/346136
www.beveragedynamics.com July/August 2014 • Beverage Dynamics 29 For the Argentine wine industry, it mostly boils down to one word: Malbec. According to QW Wine Experts, a New York-based consulting fi rm specializing in imported wines, including the not-for-profi t orga- nization Wines of Argentina, Argentine wine exports to the U.S. have increased dramatically in the past 18 years, from a market share of 0.5% in 1995 to 8% in 2013. Says its president, Nora Favelukes, "Dur- ing this period, its wine industry went through a bold transformation, stepping out of its comfort zone of producing wines for a huge and vibrant domestic market to exporting worldwide." As much of this revolution comes courtesy of visionary winemak- ers and sought-after brands like Trapiche, Bodega Catena Zapata and Achaval-Ferrer, Favelukes says much of the fanfare stems from the "magic of Malbec," the nation's star grape. "It is a story of being at the right time in the right place. As American consumers became more adventurous, Argentina's emblematic grape captured their senses with its purple hues, rich, ripe spicy aromas, fl avors of plums and dark cherries and its soft and sweet tannins — and of course, its great price/quality ratio." Today, she adds, the U.S. is Argentina's top market, represent- ing 36.78% of their total exports. Malbec alone accounts for close to 5 million cases. Nick Ramkowsky, partner of importer Vine Connections, remem- bers when their fi rst container of Malbec landed in 2000. "I would often have trade buyers mention, 'I don't need Argentine Malbec; I have Chilean Merlot.' How things have changed," he says. "Today, Malbec is synonymous with Argentina and Chilean Merlot is hard to fi nd. Most retailers had a South American section, where Chile and Argentina were mixed together. I would say the tipping point for Argentina was around 2005, 2006. That is when I noticed the con- sumer went from, 'What is Malbec?' to 'What Malbecs do you have?'' In terms of popularity, Alamos, imported from Argentina (Mendoza region) by E&J Gallo, is a consumer favorite, selling 915,000 9-liter cases in the U.S. last year, most of them the Alamos Malbec. Part of the brand's appeal is its value price point, which usually comes in at under $10 a bottle. The brand also includes a Cabernet Sauvignon, a Red Blend (with 60% Malbec), a Chardon- nay and a Torrentes. Smaller in volume but increasing its visibility is Doña Paula Wines, also from Mendoza, Argentina. Imported into the U.S. by Trinchero Family Estates, Doña Paula features its Estate tier, with Malbec being its top-selling label. The brand's Estate portfolio includes three additional varietals (Cabernet Sauvignon, Chardon- nay and Torrontés) as well as Doña Paula 2012 Black Edition Red Blend, introduced earlier this year. The Red Blend is comprised of 60% Malbec, 37% Cabernet Sauvignon and 3% Petite Verdot, and is available nationally at a suggested retail price of $14.99. CHILEAN MAKEOVER Although Argentina's wine growth has been impressive in a short amount of time, Chile is facing a different sort of challenge. Ramkowsky says Chilean wine has been a known entity since the 1990s, but primarily in the value sphere. "The efforts needed by Chile are to build a strong image between the $15-$30 retail category. These price points will allow smaller producers to fi nd a balance between needed margin and volumes," he adds. The country is doing just that. According to New York-based organization Wines of Chile, they exported a total of 16,276,600 cases to the U.S., making it the fourth largest imported wine by volume, and giving it about 4% of the total U.S. wine market. While Chile represented 8% of the imported cat- egory by volume, it was the number one imported bulk wine both by volume and value, accounting for 28% of the imported bulk category. Red Blends and Cabernet Sauvignon take the lead, followed by Sauvignon Blanc, Chardon- nay, Pinot Noir and Carmenère. New terroirs, like Elqui and Leyda Valleys in the north, and Bio Bio and Malleco in the south, are also gaining traction. "Chilean Cabernet Sauvignon is the driving force in Chilean cat- egory sales by far, and will remain so for the foreseeable future, the reason being that regardless of the price range, whether $10, $10-$15 or $20-$125, Chilean Cabs over-deliver in taste, quality and consis- tency from vintage to vintage versus many other Cabernets from more volatile climates around the world — thanks to Chile's singular geographic location and its corresponding combination of climate and terroir," says Marc Goodrich, president of Excelsior Wine Com- pany — which distributes wines from Chilean powerhouse Concha y Toro and Argentine subsidiary Trivento. American consumers are increasingly choosing wines from Argentina and Chile. BY ALIA AKKAM THE LANDS OF MALBEC AND CARMENERE Chile's Emiliana Vineyards are known for their organic, sustainable production practices.