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

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Brazilian Wine Market Report
importers in the “Brazilian Wine Importers” section found at the end of this report are also
distributors with either a wine boutique or a retail store location.
Arrange Market Strategy and Fulfill Compliance Needs
U.S. wineries that are successful in exports usually take one to two trips to the target
country before making sales. The first visit is used to research and develop strategies for
accessing the target markets, whether regional or sector-based (hotels, restaurants or
retail). The same visit can be used to meet with importers in order to evaluate their
operations before making a decision on whom to approach with a potential agreement. If
necessary, the exporter will travel back a second time to finalize the arrangements with the
selected importer/distributor and ensure that both they and the importer/distributor are
ready to do business together. This step is oftentimes needed to ensure that all regulatory
approval issues and import processes are addressed before orders can be solicited and
subsequently fulfilled.
Continue Market Promotion and Research
The growing market opportunities in Brazil for U.S. wine exporters are primarily in the South
and Southeast regions of Rio Grande do Sul and São Paulo; also major production regions.
For wineries that are members of the Wine Institute International Program (based in San
Francisco, CA), they can coordinate trade visits and market promotion with a group of
participants. Additionally, representatives of USDA’s Foreign Agricultural Service (FAS) in
Brazil share a common mission to promote trade with the United States. Representatives of
USDA’s Office of Agricultural Affairs (OAA), headquartered at the U.S. Embassy in Brasília as
well as those of USDA’s Agricultural Trade Office (ATO) at the U.S. Consulate General in São
Paulo can offer free assistance with understanding the market and identifying future business
opportunities. The FAS representatives can help U.S. wine exporters by supplying them with
up-to-date market information, importer lists, and distributor data, as well as by endorsing
U.S. Pavilions at trade shows and organizing various marketing events. The U.S. Alcohol and
Tobacco Tax and Trade Bureau (TTB) has an International Trade Division and website
(www.ttb.gov) that can similarly assist U.S. wineries and exporters with market information
and regulatory compliance issues.
Potential Risks
There are several risks present when attempting to
enter the Brazilian marketplace. These include:
a) Uncertainty of government regulations. Over
the past two years, the Brazilian Government
has issued multiple regulations concerning wine
producer registration, labeling and production
processes. Most are implemented without
advance notice and in the case of the
production processes; no final rules have been
published.
b) Domestic and imported wine competition. Brazil
NOTE: AS OF THE PREPARATION OF THIS
REPORT, REGULATIONS CONCERNING
WINEMAKING PRACTICES WERE BEING
REVISED. NO FINAL RULE ON SUCH
PRACTICES HAS BEEN PUBLISHED BY THE
BRAZILIAN GOVERNMENT. THIS REPORT
WAS DELAYED FOR SIX MONTHS
EXPECTING NEW RULES TO BE
AVAILABLE. THE AUTHORS RECOMMEND
PRIOR TO SHIPMENT OF WINE TO BRAZIL
THAT THE EXPORTER VERIFY WHAT
REGULATIONS ARE IN PLACE.