Brazil Wine Market Report JBC EMP July 2011 - California Wine ...

12
Brazilian Wine Market Report
recognized as one of the major wineries in the country and celebrates being familiar and 100
percent Brazilian. http://www.salton.com.br/novo/home.aspx
Bacardi-Martini do Brasil Indústria e Comércio Ltda
Estimated Production: 10.3 Liters
Vinícola Miolo Ltda
Estimated Production: 7.4 Million Liters
The winery began producing bulk wine for sale in 1989 and started bottling with a family
name in 1994. The company faced growing demand and was forced to develop a plan to
sustain the growth. The Miolo Wine Group was established in 2006 to assemble a line of
more than 70 products from national and international partnerships. The group’s goal was to
formulate a line of products with a variety of qualities that can reach many different
segments. The group today has eight projects: Vinícola Miolo (Vale dos Vinhedos, RS),
Fortaleza do Seival Vineyards (Campanha Gaúcha, RS), RAR (Campos de Cima da Serra,
RS), Lovara Vinhos finos (Serra Gaúcha, RS), Fazenda Ouro Verde (Vale do São Francisco,
BA), Costa Pacifico (Chile), Osborne (Spain and Portugal) and Los Nevados (Argentina).
http://www.miolo.com.br/en/company/miolo_wine_group/
Brazilian Wine Market
Highlights
With over 203 million citizens and a 2010 GDP of over $2 trillion,
Brazil is truly a sizable market. Since 2003, Brazil’s economy has
grown increasingly stable through a commitment to fiscal
responsibility by building up foreign reserves, reducing its debt
profile and adhering to an inflation target. Brazil’s debt was
granted investment grade status but like many of the world’s
economies, Brazil suffered during the recent economic crisis with
a decline in global demand for Brazilian goods. The economy grew by 7.5 percent, a rate
unmatched since 1986. Since the currency started 2010 strong and ended it stronger, a
GDP of 3.675 trillion Reals converted at the year’s average exchange rate into US $2.089
trillion. This meant that Brazil overtook Italy to rank as the world’s seventh-biggest
economy. Income per head in Brazil has surpassed that in Mexico.
The Brazilian consumers have led the way to economic expansion, as the growing middle
class stocks up on status symbols and domestic comforts once out of their reach. The export
recovery has stimulated lower unemployment rates, higher monthly incomes and an overall
rise in the middle class. All of these factors contribute to larger expendable incomes. As the
home to the 2014 World Cup and the 2016 Summer Olympics, it is expected that increased
interest and investment by the government to accommodate those international events will
lead to further economic growth and greater consumer demand.
Consumers are loyal to brands; including the low income population. More well-off
consumers pay particular attention to quality, after-sales service and the company's social
commitment (protection of the environment, sanitary standards, etc.) National pride is
reflected in consumer habits, but Brazilians remain attached to foreign products as exterior
signs of wealth (technological equipment, American sports brands, etc.) Consumption