One of the most significant conclusions that AWBR (Academy of Wine Bussines Research) arrived at in its research about Malbec’s position in the main restaurants in the 10 most important states in the wine market, is that “Malbec is everywhere”.
This data was presented during the last US market conference carried out by Sociedad Argentina del Vino (SAV) in which the current situation of this destination was analyzed. The presentation was given by Fernando Trollano, part of the Analysis team of Área del Vino.
According to AWBR data, the expansion of Malbec in the on-trade is a recent phenomenon: 58% of the channel has included it since 2005.
It is indicated that 69% include from 1 to 5 alternative brands of Malbec in their wine lists.
Though the emblematic varietal of Argentina can be found in every price range, the most common is the USD 30 –USD 100 per bottle range.
A relevant detail is that this category has played an essential role in on-trade wine sales. “In 40% of the restaurants, Malbec is responsible for at least 10% of the growth in sales,” reads the report.
A change of habit in the US
The American market is characterized by changes in the buying patterns. On the one hand, in the face of fall in profitability, due to cost increase and higher profit percentages in the traditional channels, the American wineries have witnessed the increase in direct to consumer and online sales. In the first case, in 2012, as opposed to 2011, this channel grew 9.3% on a volume basis and 12.5% on a dollar basis.
As Merino explained, “a large percentage of transactions come from the wineries’ wine clubs. For instance, Mondavi has 3500 members that must buy 4 cases each.”
What is direct to consumer sales target? “At first it was targeted at baby boomers (consumers between 47 and 65 years old). However, the growth in consumption is to Older Millennials (26 to 34 year olds) who have encouraged part of the growth in sales in nontraditional channels.”
Nowadays, consumption is segregated in this way