| Bag in Box exports continue at the same level |
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| mircoles, 11 junio 2008 | ||||||||
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Figures indicate that they only grew by 3.7% in terms of value and 3.6% in terms of volume. Even though they still represent a small amount of Argentinian exports, several companies are giving this format a try with quite successful results. Although in 2006, compared to 2005, Argentinian Bag in Box exports yielded good results -with growth by 89.9% in terms of value and 75.4% in terms of volume- the figures for 2007 for this kind of packaging (basically comprising a closed bag with a valve for measuring, within a closed box) were not as auspicious. Even though there was a small growth, the market did not experience the expected movement. Nevertheless, some companies are still banking on this packaging style. Leandro Bastías, Exports Director at Trivento, claimed that “the major export markets of our winery are Denmark, Finland, Norway, Canada, Sweden and Ireland, where we sell around 130,000 cases (each case has 4 bag in box of 3 liters each), adding up to around 1,560,000 liters. Each case is sold at about u$s 20,00, which implies an average price of approximately1.65 dollars.”
According to the data provided by the specialized wine consulting
company Caucasia Wine Thinking, in 2007 Bag in Box exports accounted
for revenue of 6,074,006.2 dollars, which represented a 3.6% rise
compared to the same period of the previous year. In terms of volume, “I don’t think it will ever represent an important share in traditional markets, mainly because of the widespread perception concerning this kind of packaging (as in Argentina),” Bastías commented. One of the main problems this format faces is the prejudice regarding packaging and its content. With regard to this, Bastías reported “that in markets where it is popular, the trend is to consume Bag in Box wines of higher added value and quality; in terms of the share of this kind of packaging in these markets, it tends to grow until it stabilizes around 50% of the total volume. Nonetheless, this 50% was unimaginable a few years ago.” Despite this preconception to which traditional wine consumers are prone, the company Viña Ona decided to package its premium wines in export boxes. “Our idea, which was avant-garde when we conceived it in 2001, was to offer premium San Juan varietals not just in bottles but especially in Bag in Box.” Antoine Dumazer, the company’s winemaker, was the one who foresaw a different approach for a market that was incipient at the time, and was beginning to demand more from traditional offers,” Mariano Monrad, from Viña Ona, indicated. He added that “we launched this product with the illusion of re-launching the concept of ´wine by the glass´ and ´wine of the house´, which is generally associated with lower quality or lower category wines. This idea sought to be the match for gourmet cuisine, which was also on the rise but was not always paired with options that were up to it, in terms of wine, beer and other beverages.” At the domestic level, Bag in Box and its advantages are still little known. “It could be said that we are basically struggling alone at the local level, in order to place it as the valid alternative it comprises; but this is a drawback it has experienced in all the European countries with a winemaking tradition, that were the least willing to adopt this package format, but are now accepting it,” Monrad concluded. Around the world Even though the United Kingdom does not have a great significance for Argentina with regard to the Bag in Box market, according to Reuters figures “the British market for Bag in Box wine is valued in around 390 million euros, with a uniform 2% annual growth, consistent with Tesco’s estimations. With regard to their own facilities, Tesco informs that this format occupies the fifth largest wine category, after bottles from Australia, France, the United States and Italy.” “This kind of packaging is making its way through, its growth indexes are good and sustained and people are beginning to value its advantages compared to other packaging formats,” Monrad, from Viña Ona, reported. Author: winesur.com - María Soledad González
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