ProWein S?o Paulo
One of our pillars is to amplify the distribution and positioning of the wines we represent in different markets around the world. We know that trade fairs are key to accomplishing this task, and that is why we always make our best effort to travel to those relevant global fairs.
ProWein Brazil was held for the first time in S?o Paulo from September 27 to 29. Our experience tells us that it will mark an important milestone for the wine business in the southern hemisphere, becoming the most important wine trade fair in the region. The diversity of selected wineries and labels and the countless opportunities to generate new business relationships are the indicators that support our reflection.
In this article, we will share with you some of the impressions we gathered from three intense and rainy days of work.
Unlike other fairs, where end consumers represent the great majority of visitors, ProWein, in general, and S?o Paulo, in particular, is a trade-oriented fair...
...this means that only importers, distributors, restaurant owners, wine shops and professionals working in these places can have access to it.
As access is restricted and tickets cannot be purchased, a balanced volume between the amount of people according to the capacity of the space and the possibility of assisting each visitor with dedication is achieved. This modality, when one already has an importer, brings two very positive aspects: the strengthening of that link and the positioning of the brand in the trade, taking into account that all the main actors of the industry are present there.
Moreover, it is a fair completely focused on business generation, that is why there are plenty importers’ stands where they exhibit the producers they work with. There are also some countries’ stands such as Wines of Argentina, Wines of Uruguay or Wines of Chile, where there is a diversity of wineries.
The fact is that the wineries that did not yet have an importer, took advantage of this fair to find one and those that already had one focused on strengthening their relationship, visiting their customers or taking advantage of the evenings to hold dinners to present their portfolios or the new vintages of their wines.
Brazilian context and considerations
Given the country-context, it is important to mention that Brazil has a very current issue: the distribution or coverage due to the magnitude of the country and the plurality of relevant cities.
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This reality throws up several scenarios that make the market more complex: not all importers cover the entire territory, some of them ask for exclusivity from the wineries to avoid the well-known "price blowouts", others only ask for exclusivity in premium portfolios, some only want to develop a private brand and others are exclusively dedicated to selling very large volumes to supermarket chains such as the well-known P?o de A?úcar. It is necessary to be aware of the winery's business in order not to get lost in a sea of opportunities, some of which may be effective in a short-term sale, but not for a sustainable and organic development in the medium-long term.
In relation to the prices of Argentine wines, it is also important to remember that Brazil has a historical sensitivity to high prices, i.e. they are not willing to pay any value for a wine, even today with a fairly stable official exchange rate. Another point to consider is that in recent years, Argentina has lost some competitiveness in the lower segments, where it is difficult to reach values like those of Chile, Portugal and even Italy and France. The other side of this coin is that Argentina has to face lower logistic costs, due to its proximity and enjoys a favorable tariff regime over European countries, as Brazil and Argentina are part of the MERCOSUR (Common Market of the South). This means that Argentina loses competitiveness when it comes to standard price segments: in relation to wines from other geographies, its entry level prices are higher, contrary to what is expected in this segment: volume increase and market penetration. On the other hand, Argentina is much more competitive in wine segments from USD 4-5 $ onwards.
The other challenge is the Argentine exchange rate split (official dollar vs. parallel dollar) that has generated a smuggling traffic across the border that causes major conflicts with importers who pay the necessary taxes in Brazil.
These aspects, added to the great offer that the Brazilian market has due to importers and wineries that flood the market with labels, generate quite complex dynamics
That is why it is essential to know them at the moment of initiating commercial links to export our wine.
ProWein S?o Paulo 2022 in numbers:
For VinEsence, this first edition of ProWein S?o Paulo was an opportunity to establish new commercial ties, meet face-to-face with importers and distributors with whom we are currently working and, above all, strengthen commercial relations in the Brazilian market to continue positioning wine in the world.
At VinEsence, we are experts in opening international markets for our clients, representing them in commercial tours, rounds of negotiations and international fairs.
If you are about to export your wine and do not know how to do it, please do not hesitate to contact us!
Our Site?VinEsence
Business Partners?Matías Prezioso?/?Sebastián Maggi