Argentina's wine industry faces deepest crisis in two decades

[sergio]

I'm curious about your take on this. It's been my experience that Argentinos are fiercely loyal to the wines of Argentina, even when there are high quality options available at a competitive price. Imported wines are and would be considerably more expensive than domestic, making the domestic choices a no-brainer for everyday consumption, and the imports a luxury.

There is very little imported wine in Argentina. I think the loyalty you speak of is because there are no options. There is a lot of quality wine, especially from places like South Africa, that could be competitively priced. Of course it would depend on how open the market is. High tariffs would be a problem. I'm not advocating opening the market, just commenting on how the situation would be worse if there were competition.

 

[sergio]

What is really happening here is that in Argentina, the USA, the UK and possibly others areas of the world young people are consuming little or no alcohol.
Part of the reason for this is that young people have far less disposable income than they used.
The other part is that there are now limitless entertainment options (dozens of streaming services) available at home that do not involve going out to a bar/nightclub, consuming alcohol, and spending money; young people meet other young people on dating apps (not at bars as used to be the case) and interact with each other either at a residence or via social media etc.

It's true that younger people are drinking less but based on what I have seen over many years, wine drinkers in Argentina tend to be middle aged and older for the most part. But I'm sure there is a decline in younger people buying wine.

 

[LongtimeExpat]

It's true that younger people are drinking less but based on what I have seen over many years, wine drinkers in Argentina tend to be middle aged and older for the most part. But I'm sure there is a decline in younger people buying wine.

What's this world coming to?

 

[wineguy999]

There is very little imported wine in Argentina. I think the loyalty you speak of is because there are no options. There is a lot of quality wine, especially from places like South Africa, that could be competitively priced. Of course it would depend on how open the market is. High tariffs would be a problem. I'm not advocating opening the market, just commenting on how the situation would be worse if there were competition.

Yes, I'm familiar with imports in ARG, but the loyalty I speak of extends to Argentinos in the US as well as Europe, hence "even when there are high quality options available at a competitive price." Any imported wine that could be competitively priced in ARG would probably be less than plonk (and don't ask my opinion on S African wines in general).

 

[sergio]

Yes, I'm familiar with imports in ARG, but the loyalty I speak of extends to Argentinos in the US as well as Europe, hence "even when there are high quality options available at a competitive price." Any imported wine that could be competitively priced in ARG would probably be less than plonk (and don't ask my opinion on S African wines in general).

South Africa produces high quality wine. But that isn't the issue here. France has a massive surplus of wine. If there were free trade, why couldn't it sell well in Argentina? I am not convinced that all Argentines living abroad buy only Argentine wine. Some may buy what they are familiar with if it's available. I believe Argentines will buy what is competitively priced. Status also plays a role which would give French wine an advantage if it were competitively priced.

 

[LuckyLuke]

What is really happening here is that in Argentina, the USA, the UK and possibly others areas of the world young people are consuming little or no alcohol.
Part of the reason for this is that young people have far less disposable income than they used.
The other part is that there are now limitless entertainment options (dozens of streaming services) available at home that do not involve going out to a bar/nightclub, consuming alcohol, and spending money; young people meet other young people on dating apps (not at bars as used to be the case) and interact with each other either at a residence or via social media etc.

Color me skeptical about that one. A lot of chatter about Gen-Z being low consumers of alcohol but the generation is 14-29 years old. Half aren't even of drinking age. It's too early IMO to call some generational shift. I would say in 10 more years we'll see if it's true. That being said, drink prices, tipping culture and declining real wages have certainly given many an excuse to stay home regardless. The same could be said about the restaurant industry where even Chipotle and Pizza Hut are now struggling.

 

[wineguy999]

I am not convinced that all Argentines living abroad buy only Argentine wine. Some may buy what they are familiar with if it's available. I believe Argentines will buy what is competitively priced. Status also plays a role which would give French wine an advantage if it were competitively priced.

As I said, "It has been my experience...", and I never intended to imply the absolute. Of course there are Argentinos who will buy from the competitive set, and I've done what I can to promote that in my Argentine friends abroad.

I just think it's funny that our group of friends in Valencia had a fideuà party last November, and only one in five Argentinos showed up with a bottle of Spanish wine - the rest brought wines from Argentina. That's a common experience for me. (Don't get me started on bringing Malbec to have with fideuà!)

 

[ArgentinaVet]

Color me skeptical about that one. A lot of chatter about Gen-Z being low consumers of alcohol but the generation is 14-29 years old. Half aren't even of drinking age. It's too early IMO to call some generational shift. I would say in 10 more years we'll see if it's true. That being said, drink prices, tipping culture and declining real wages have certainly given many an excuse to stay home regardless. The same could be said about the restaurant industry where even Chipotle and Pizza Hut are now struggling.

I'm in the bar/nightclub/restaurant business in both the USA and Argentina. It pains me to have to report the declining alcohol consumption among the under 30 crowd and declining attendance at bars/nightclubs. In the USA, the legalization of THC products has also greatly contributed to the falling alcohol consumption. The under 30 crowd are still willing to pay up for culinary experiences and live entertainment.