2020 is the year with the largest volume of Brazilian wine sales. Contrary to other industries, wine sales have increased significantly this year.
This phenomenon is closely related to the new crown epidemic and social isolation. Because restaurants and bars are closed, drinking wine has become a way of entertainment for residents at home.
According to data from IDEAL CONSULTING, the sales volume in July this year reached 63.4 million liters, a three-fold increase from March when it was 21.3 million liters. These months have been the worst period of social isolation in Brazil. From January to August, 313.3 million liters have been consumed, an increase of 37% over the same period last year.
The decline in sales is sparkling wine, which is mostly used for parties and celebrations. During this period, sparkling wine sales fell by 5%, from 9.3 million liters to 8.8 million liters. This number includes supermarkets, shops, restaurants, etc.
The challenge for wine producers now is to keep their customers. Because in August, wine sales have shown a decline of 21%, the reason is related to the opening up of the society and the resumption of work in various industries.
“Such a growth trend cannot be guaranteed, but the decline should not exceed the level of 2019.” said Philippe, the head of IDEAL CONSULTING.
The growth of the US dollar exchange rate has made Brazilian wines more competitive and made Brazilian wine merchants more confident. This year, the exchange rate of the U.S. dollar has increased by 40% over the real, which has increased the price of imported wine. It is estimated that by August, the sales volume of Brazil’s domestic wine will increase by 93% compared with last year.
The proportion of Brazilian domestic wines in the domestic market is only 6%, and low-priced wines usually account for 67% of the market.
Wine lovers usually love red wine from Argentina, Chile and Uruguay, and brands from France, Portugal and Italy are also very competitive.
Due to the issue of the exchange rate of the US dollar, the market share of imported wine has dropped from 32% to 27%. This phenomenon has opened up the market for domestic wine merchants.
A winery in ESPIRITO SANTO DO PINHAL in the interior of São Paulo State hopes to develop eco-tourism activities by taking advantage of the opportunity of the citizens to focus on domestic wine. They organize tourists to visit the vineyards, and the schedule is full until the end of the year.
“People’s travel routes have become shorter. We are only 2 hours away from São Paulo by car, and people come to visit even during the week,” said Fabrisa, the head of the winery.
SALTON is one of the important wineries in Brazil. They have many products. It is said that their sales have increased by 40% this year.
The hot climate, high prices, and difficulty in importing have made Brazil not a major wine consumer. According to statistics from IDEAL CONSULTING, this year may reach the highest record of 2.8 liters of wine consumed per national. In the last statistics in 2018, the average Brazilian wine consumption per year was 2 liters.
In Portugal, the average consumption per person in 2018 was 62 liters, a world record. It is 50 liters in France, 44 liters in Italy, and 25 liters in Argentina.
“Brazil has opened the market for high-end wines for 30 years. At that time, the Geller government approved wine imports. We will continue to improve the taste and production of wine.” said Gustavo, chairman of the Brazilian Wine Tasting Association.
Important wine production bases in Brazil are Sul Catarina and Santa Catarina. At present, there is also a production base in the northeast, and there is also a wine garden in the Mantiqueira mountain area in São Paulo State.
“Brazilians will produce wine, we can find the lost time, but we can not compare with Bordeaux, they have a history of 3,000 years, and we only have 30 years.” Gustavo said.
Another obstacle for wine in Brazil is price. The price of domestic high-end wine is often no less than 40 reais a bottle, half of which is tax, while Brazilian wine is only exported to Japan.