Good news for Chilean winemakers
Michael Cox from wines of Chile has just sent through the following information, based on Nielsen data for the UK market:
- Despite only modest growth in total wine market Chile’s sales are growing faster with increases in the past year of +7% by volume and +15% by value
- Chile's market share is at its higher ever with 8.2% by volume and 7.9% by value (France and Australia are falling substantially)
- Chile making strong progress in the Independent sector with growth of +25% by volume and +27% by value
- Chile sales above £5 are at their highest ever with growth over last year of +40%. Sales over £5 now exceed 1 million cases and represent 13% of total Chile sales (last year it was 10%)
- Chile's average bottle price is at its highest ever at £4.13
- In a rapidly shrinking on-trade wine market Chile’s sales are up +4%, one of only 3 countries to show growth. Its share has risen to 9.5% - the highest ever
The secret of Chile's success? I think it's that the wines offer good value for money and meet customer expectations at their price points. The Chilean industry seems innovative and attentive to the demands of export markets - most of the big players seem willing to listen and also willing to all pull together for the greater good. There's a relative lack of internal politics - at least of the disruptive, problematic source. And it helps that Chile's biggest wine company, Concha y Toro, do such good work with their wines.
However, I suspect that many readers of this blog - I'm talking here about wine nuts - don't buy many Chilean wines. Chile still struggles in its fine wine dimension. Of course, you could argue, with the commercial success it enjoys, why bother with a fine wine dimension at all?