ARGENTINA: Cepas predicts wine sector consolidation
Argentine winery Cepas expects to make acquisitions to grow its domestic business at a time of consolidation in Argentina's wine sector.
Cepas' president, Roberto Ruiz, said that Argentina's wine industry is consolidating to boost price negotiating power with supermarkets and wine sellers.
"We are going to continue growing our business, either through acquisitions or or new product launches," he told just-drinks today (13 June).
Cepas recently merged with rival Dominio de la Plata, The deal will see the former distribute Dominio's brands across Argentina, while the latter brings knowledge of international markets.
"The market is becoming much more competitive with a widening offer from many brands and lower margins due to falling prices, not just in Argentina but the world over," Ruiz said. "These type of alliances help us stay ahead of the curve."
According to industry reports in Argentina, domestic supermarkets seek to discount new wine labels by up to 30%, while specialist wine retailers require 180 days to pay for deliveries.
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