South America Vintage Update

Vineyard in Argentina

We take a look at the 2014 vintage conditions for Chile, Argentina, Brazil & Uruguay.


Vintage outlook
• 2014 – Yields are 20% down on previous year overall.
• Frosts affected many regions and yields of Sauvignon Blanc (-30%) & Chardonnay
(-50%) particularly affected.

• Strong national economy over the last 5 years with little debt and unemployment.
• Cost of labour is increasing, leading to some imported labour from Peru & Bolivia.
• Economy has slowed recently due to falling copper prices.

Price movement
• Prices likely to rise – increases expected due to frosts and resulting small
crops, particularly for white varieties Chardonnay and Sauvignon Blanc. Some
of the increases are being mitigated by the reasonable inventories of previous
2013 vintage.



Vintage outlook
• 2014 is an unusually wet and cool vintage with significant rainfall around vintage.
• P redicted 27% down on volume on last year.
• Careful selection will result in good quality but small crop.

• In state of crisis with inflation running at 40% having significant effect on cost of dry
goods, wages etc.
• However, the Peso has lost 30% of its value vs US dollar since early February which
is offsetting inflation to some degree.
• Weak currency is helping wine tourism.

Price movement
• Things are really too volatile to say, but the currency swing versus. inflation is
actually keeping things stable for now.
• Expect some small increases if currency starts to rebound and prices increase due to
small vintage and the government buying bulk wine back to increase pricing.


Vintage outlook
• Fantastic quality overall. In the South a very hot spring and summer meant
reduced crop overall.
• Cooler conditions and a bit of rain towards end of summer has given the wines great
freshness and kept alcohol levels in check.
• Miguel Almeida, winemaker at Miolo “2014 was a year for premium wines with
good freshness and fruitiness without high alcohol levels for red and white wines”

• Continued strong economy.
• Interest building in lead up to World Cup and Olympics.

Price Movement
• Stable – Generic body looking to take advantage of increased visibility during the
World Cup then Olympics. High quality products will become more widespread.



Vintage outlook
• Overall difficult vintage with cool temperatures and lots of rain.
• Pure and fresh Albarino.
• Tannat has benefitted from long, slow ripening period. Softer, more juicy styles have
been made.
• Lots of innovation in white wine production using international varieties like
Sauvignon Blanc, Pinot Grigio and Viognier.

• Stable, wealthy, well-organised and well-run country.

Price movement
• Stable – still a very niche small market.

14th May 2014

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