Argentina : Wine Law and Business Flashcards
Argentina: Wine Law
Three tier system of geographical indicators :
1. IP -can cover large geographical areas but no the country as a whole
2. IG - wines that meet a certain qualilty made from. a specific geographical area that is considered to produce quality wines
3. DOC - specific region with legislated winemaking criteria - only two : Lujan de Cuyo and San Rafael ( in Medoza)
GI - most correspond with political divisions . There can ve multiple levels of division from regions ( the largest) to GI’s within districts ( the smallest)
**Eg:
Region: Cuyo
Province: Mendoza
Sub Region: Uco Valley
Department : San Carlos
District: La Consulta
GI inside District: Paraje Altamira **
GI’s can also be created on soils, climate etc
Under law, wines lableed with GI or DOC must use grapes grown in the area.
Vintage must be 85%
Single Variety must be 85%
2-3 Variety- must make up 85% of blend
Reserva - 12 months for reds, 6 months for whites and roses
Gran Reserva - 24 months for reds and 1 yr for whites and rose
Argentina: Wine Business
- with the exception of the El Nino years, production is steady
-Export volumes show the trend :
2020 , 4 mill hL of wine
USA is the main export market by volume and 27% by value
then UK, Canada and Brasil ( MERCOSUR free trade ) - weak peso in the early 2000’s showed a boom in exports to US for inexpensive, good wines
2011 -2021 showed a variation in wine exports - two reasons:
Low yields from the heavy rains of el nino and restirctions on foreign investment
60% of exports are Malbec, celebrated by Malbec World Day -0 Wines of Argentina
seeking to promote and retain interest in diverse wines
–Less focus on Malbec, in case it falls out of fashion with consumers
COVIAR brings national and local governments , producers and professionals to gether - overseas ‘Strategy 2020’ to promote Argentian wine in both markets
Modernise image to attract millenials
Exports are only 20% of production and with large decrease in domestic consumptioon ( from 90L to 21L ) .
Rise in infaltion have resulted in decreased purchasing powder and domestoc consumers are looking to drink less but drink higher quality
Size of Vineyard varies, 29% are under 10ha , 12% more than 100ha
Many are still family owned
eg. of Bodega Catena Zapata and Familia Zuccardi
FeCoVita - collective of 29 co-ops and Grupo Penaflor are the one of largest prodcuers in the world and account for most of the production
Foreign invstment to build and create new wineries are coming from the within Argentina but also, France, Spain , Italy and Chile
