Analysis of Brazilian wine competitiveness

Abstract

The objective of this work was to evaluate Brazilian wine competitiveness in domestic market in relation to imported wines marketed in Brazil. The work is based on quantitative sources provided by different institutions: International Organization of Vine and Wine (OIV), Brazilian Union of Viticulture (UVIBRA), Ministry of Agriculture, Livestock, and Food Supply (MAPA) and Brazilian Agricultural Research Corporation (EMBRAPA). The data referring to marketing of Brazilian and imported wines refer to the period from 1993 to 2016; and for sparkling wines data refer to the period from 1998 to 2016. During the periods evaluated, there was a 73.86% increase in wine sales and a 446% increase in sparkling wines sale; however, when we compared the volume of Brazilian wines and Brazilian sparkling wines sold, there was a reduction of 38% in the marketing of these wines, while sparkling wines commercialization recorded an increase of 518% in the volume sold. Regarding the volume of imported products, there was an increase of 737% in imported wines marketing, and an increase of 275% in imported sparkling wines marketing. In 1993, only 19.3% of imported wines were sold in relation to the total volume marketed. As of 2016, imported wines accounted for 82.1% of the volume of wines sold in Brazil. For sparkling wines, there was an inverse situation, with a reduction in the marketing of imported sparkling wines in relation to the total sold, since in 1998 imported sparkling wine accounted for 29% of Brazilian sparkling wine market and in 2016 this percentage dropped to 18.2%. It is concluded that sparkling wines are the products with greatest potential of Brazilian wine market. While still wines presents low competitiveness in relation to imported wines, being necessary to create market strategies that propitiate a greater acceptance of Brazilian wines, besides fiscal incentives to the grape producers and winemakers, reducing production costs, resulting in a lower price paid by final consumer.