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

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Brazilian Wine Market Report
Date: June 2011
EMP Project Report #E09MXBR001
Brazil – Wine “Comprehensive Study of Market Potential, Infrastructure, and Regulatory
Policy for U.S. Wine Exports to Brazil”
Report Highlights:
Brazil provides both tremendous opportunities and challenges for U.S. wine exporters.
Historically wine consumption per capita trails that of other beverage alcohol. The recent
economic expansion has developed a strong middle class more interested in wine. An
emergent domestic wine industry is introducing more Brazilians to wine varieties through
greater distribution and promotion. The neighboring wine producers, Chile and Argentina,
are also enjoying sales increases demonstrating the appetite of the new wine consumer for
New World wines. The distribution and retailing channels are in place in the main population
centers although still often cumbersome and inefficient. The complex panoply of import
regulations and high taxes are not unlike those of other emerging markets such as India,
China and Russia. As Brazil continues to develop its international economy, now the 7 th
largest in the world, it is investing in the infrastructure to improve its capacity to trade
internationally. With the hosting of the 2014 FIFA World Cup and the 2016 Olympics, and
following the Chinese example of hosting the 2008 Olympics, the Brazilian government must
insure that its capacity and infrastructure will meet the demands of those events. Brazilian
goods and services industries must be ready to accommodate over 1 million visitors for those
two events. While many impediments to U.S. wine exports remain, the country with a
population of over 200 million and half of those with disposable income presents a vast and
largely untapped market for U.S. winemakers.