Falabella and Corchos de Argentina (ex ACI-MD) have started to export Altos Las Hormigas products a few weeks ago. This agreement made by the winery, has been encouraged by the Trade and Industry Under -secretariat of Argentina, with the purpose of improving the situation exporters and importers are facing today.
What are the difficulties do you have when exporting?
It is a problem common to all Argentine companies that have a significant percentage of their production in foreign markets. Of course, Altos Las Hormigas is not an exception, as it exports 90% of its production and, at the same time, it consumes goods and services in Argentina.
This situation causes an imbalance of VAT, threatening our regular cash flow, because when we buy supplies in Argentina, we pay VAT; but when we export, we invoice at FOB value (without VAT). In the face of this, states generally correct this imbalance by means of VAT refunds.
This system works very well; however, we have recently suffered important delays in this compensation on the part of the nation, 14 months in our case.
Meanwhile, Falabella and Corchos de Argentina have also had some problems to import their products, affecting their regular operation.
What is the new deal with Falabella y Corchos de Argentina (ACI-MD) about?
For some months now, we are working with both companies. Through this deal, they will be responsible for exporting our wines, getting a credit on the part of the Trade Under-secretariat to import the same amounts. This way, we recover VAT immediately.
Besides this, what other benefits does the deal offer?
The deal with Falabella and Corchos de Argentina gives us an added value, consisting of the contact network that this action generates.
Falabella is a great buyer of products from different Asian countries, and makes this red available to our company, increasing the number of potential customers of our wines. As regards Corchos de Argentina, it boasts strong connections with Europe.
In addition, the association in this project, especially with Corchos de Argentina (ACI-MD), fosters the development of the wine cluster, as they import a supply essential for our final product.
How will you divide the markets?
By means of Falabella, we are exporting to United States, Canada, Asia, and Oceania; while through Corchos de Argentina, we reach Mexico, Central America, Europe, and South Africa.
Translation: Carolina Lucesole