South African wine producers Distell have become the first local manufacturers to move into the Brazilian wine market, now being courted assiduously by other international producers because of signs of an economic recovery.
Distell said on Monday it had secured a multi-brand wine listing with giant Brazilian retailer Companhia Brasileira de Distribuicao (CBD), the biggest multiple grocers’ chain in Brazil.
Brazil has been cited by international research specialists Euromonitor as one of the fastest growing wine markets in the world, expected to reflect a growth of 24% in sales volumes between 2001 and 2006.
Don Gallow, Distell’s group general manager for international operations, said growth was being propelled by improved distribution resulting from the expansion of supermarkets and hypermarkets in the country.
This, coupled with the appeal of wine for consumers in their twenties, now increasingly seeking out fine wines, particularly reds, has led to the market’s considerable expansion, he said.
Gallow said the CBD listing, which covered the Distell brands Two Oceans, Fleur du Cap and Oracle, had been negotiated by Distell’s Latin American office.
”The listing was achieved because of the highly competitive price/quality offering of these brands that compare most favourably with those from neighbouring Argentina and Chile. We are confident that, backed by the shelf space and branding support negotiated with CBD, these wine ranges will gain a strong foothold,” Gallow
said.
The Distell brands will be competing head on with such well-known labels as Chile’s Concha y Toro and Santa Rita, and Argentina’s Don Valentim and Fina Flichman wines.
”The specially trained wine assistants can play a major role in building awareness of South Africa as a wine producing country and pave the way for other local wineries to follow.
”In many respects, Latin America takes its cue from North America, where both South Africa and Distell are building an excellent track record for the quality, diversity and value of their wines.
”We also believe a Brazilian presence can serve as a springboard into other parts of Latin America, which already have a strong wine drinking culture and are receptive to wines from new areas,” Gallow said. – Sapa