Blog: Two into one does go in Chile
Olly Wehring | 5 January 2007
It’s an interesting start to 2007 for the Chilean wine industry, with the news that the country’s two wine associations are to merge. The Asociación de Viñas de Chile and Chilevid will formally join forces in March to form a new body, Vinos de Chile, or Wines of Chile.
A single promotional association makes sense - united we stand, divided we fall, and all that.
The motivation behind the merger is more confusing. According to just-drinks’ sources the associations decided to work together after it became clear Chilevid (which traditionally handles the interests of the smaller wineries) was having more success lobbying the Chilean government on behalf of its members than Viñas de Chile, which looks after the larger rivals.
Apparently, the Chilean government has been more interested in developing and helping the smaller vineyards in Chile and, as a consequence, Viñas de Chile was losing power in its relations with the Government.
“Smaller vineyards use a greater percentage of labour and also have more potential to grow. If the Government wants to increase the amount of wine we export, it has to help smaller wineries. Sales from bigger wine producers do not change as much,” our source said.
What is interesting about this is that it flies in the face of the perceived wisdom that it’s the larger companies that should lead the export charge, and in doing so open doors for smaller compatriots.
Of course the cynic may point to our source’s first point about percentage of labour, but if the new Wines of Chile can push the boutique wineries on the export market it could effectively create a halo effect for the cheaper mass brands below it. Any new strategy will be keenly observed in this tough global market.
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
No, this is not PepsiCo's new ad slogan for its Mountain Dew brand....
Major wine players flocked to China ready for online giant Alibaba's 9.9 Global Wine and Spirits Festival, which took place on 9 September....
In May, Heineken's CEO, Jean-François van Boxmeer, called Vietnam the "poster child" for international beer thanks to strong demographics and growing demand....
- Will Coca-Cola Co’s Dunkin’ Donuts move pay off?
- Five ways small brands can beat big players
- Alcohol brands and the 'better-for-you' trend
- Heineken's Q3 2016 results - Preview
- Ten ways to successfully target older consumers
- Diageo weathers Thailand alcohol ban
- Heineken's YTD performance by region - Focus
- SWA's David Frost to leave for foreign office role
- Stock Spirits appointments provoke investor unrest
- Diageo unveils new Bundaberg Rum packaging
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends