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

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Brazilian Wine Market Report
consumption patterns of wine are also evolving for the benefit of sales. More retail outlets
are growing their listings with a wider selection including New World such as those from the
United States. Mass retailers like Wal-Mart and Carrefour are becoming significant
opportunities for the sale of imported wine.
Brazil is still a developing country. Lack of capacity, corruption and legacy policies must be
carefully considered. President Obama’s recent visit and the priority the U.S. has devoted to
its relationship with Brazil should assist in limiting the negative images and difficulties of the
past. Brazil is a market that should be seriously considered for any winery looking to expand
its export portfolio.
Project Background
In October 2009, JBC International—as Wine Institute’s International Trade Counsel
undertook to execute a U.S. Department of Agriculture, Emerging Markets Project (USDA-
EMP) titled #E09MXBR001, a “Comprehensive Survey of the Brazilian Wine Market.” This
project represents a collaborative effort between Wine Institute and USDA-EMP that was
designed to address the interest voiced by many Californian wineries to understand and
identify strategies for expanding business opportunities into the BRIC countries, Brazil,
Russia, India and China. JBC has completed previous studies of India and Russia.
The prime objective and focus of this study has been to provide practical information needed
to develop a strategy for market entry, one which exposes the risks, provides a guide to
developing that strategy and outlines the potential rewards for U.S. wine exports to Brazil.
This report serves as a critical educational resource for U.S. companies by:
1. Providing detailed information concerning:
- The economic environment for consumers to purchase wine;
- The regulatory environment for wines in Brazil;
- The existing trade barriers restricting wine imports from the United States;
and,
- The identification of the challenges and strategies for entering the market and
selling wines in Brazil.
2. Forecasting developments in Brazil’s wine market, supply chain and distribution
network and trade activities; and,
3. Reporting on where the market opportunities exist for imported wine by specific
market, supply chain, importer and distributor throughout the country.
The State of the Brazilian Economy
A combination of increased domestic and foreign demand for Brazilian products led to
considerable growth in the Brazilian economy since the early 2000s. While the Brazilian
government has traditionally had problems with inflation, President Dilma Rousseff is
committed to inflation targeting by the Central Bank. Under Rousseff, the government has
focused on fiscal restraint, a floating exchange rate and adhered to a policy for sustainable
growth through foreign trade. This has led to significant improvements in the stability of