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

Infrastructure
6
Brazilian Wine Market Report
As host to the 2014 FIFA World Cup and the 2016 Summer Olympics, Brazil has seen its
infrastructure under constant scrutiny in recent years. Brazil has 4,000 airports, the second
most in the world behind only the United States. Brazil also has 28,857 km of railways (10 th
in the world), 1,751,868 km of roads (4 th in the world) and 50,000 km of waterways (3rd in
the world). While these statistics appear promising, much of the current infrastructure is
underdeveloped or poorly maintained. For example, 82 percent of its roads are unpaved,
many port facilities are outdated and many of the airports are too small or too crowded for
business. All of these factors increase transportation costs. While the infrastructure in the
less developed center of the country is insufficient because it is underdeveloped, the
infrastructure in the more populated cities is inadequate because it is overcrowded.
In 2007, the Brazilian government took on an accelerated growth project, PAC, to increase
the economic welfare of the country and to develop the infrastructure to address the current
problems, in preparation for the upcoming games and the future increase in commerce and
tourism. This has put infrastructure on the forefront of Brazilian politics. The program will
invest significant resources in seaports, airports, roads and railways. The program should
drastically facilitate the movement of goods throughout the country in the upcoming years.
The major ports and terminals of Brazil are Guaiba, Ilha Grande, Paranagua, Rio Grande,
Santos, Sao Sebastiao, Salvador, and Tubarao. Santon, the main port of São Paulo, is the
largest port in South America. The largest airport in Brazil is Guarulhos International in São
Paulo.
Strategy for Market Entry
Research the Market
Using this report and relevant contacts (in both the U.S. and Brazil) as initial resources,
prospective exporters can make informed decisions about export opportunities to Brazil.
Members of the Wine Institute international program can contact that department for further
information on the market and opportunities to participate in trade shows. Members of
WineAmerica can contact their offices and the authors of this study to further investigate
market opportunities. Likewise, members of the California Association of Winegrape Growers,
Winegrape Growers of America, and the general public can contact JBC International and
other entities listed in the “Relevant Contacts” section of this study.
Find an Importer/Distributor
The choice of which importer and distributor to work with in Brazil is a crucial decision for
U.S. wineries and exporters, since these agents will function as product line representatives
and facilitate many of the market intricacies, such as navigating the regulatory import
requirements and distribution chains. Depending on the agent and the expectations of the
winery, it can assist in marketing the product and ensuring its quality integrity. Many of the