European Vinhos are already starting to arrive with lower prices for Brazilian consumers. The tariff reduction foreseen in the agreement between Mercosul and União Europeia came into force in May and caused the first movements in the market. Importadoras reports increased interest from Velho Continente producers.
The effect should intensify in the coming months with the replacement of stocks.
Tarifas drops from 27% to 24% since May
The import tariff on European wines decreased to 24%. The forecast is for a gradual reduction until the tax is zero in 2034. Executivos from the sector predict a drop in consumer prices of up to 10% as new batches reach the shelves.
The favorable exchange rate also helps to make the product cheaper. Importações of wines from the European continent rose 12% in value between January and April, according to data from Ministério of Desenvolvimento, Indústria, Comércio and Serviços.
- European Produtores faces pullback in markets like China and Estados Unidos
- Brasil appears as a destination with growth potential
- Concorrência should increase with labels of Portugal, Itália, França and Espanha
Grupo Wine expects 5% increase in imports
Alexandre Magno, CEO of Grupo Wine, one of the largest companies in the segment in the country, confirms the increase in interest from wineries. The company strengthened contacts with suppliers of Itália and França.
Ele projects 5% growth in imports of European labels this year. Prices are expected to fall in the coming months as stocks renew. If the exchange rate remains stable, retail reductions could reach 10%.
Magno highlights that more expensive wines are also gaining ground. Eles are less impacted proportionally by shipping costs. The phenomenon of premiumization, already seen in other segments, tends to strengthen.
Portugueses surpasses Argentines in imports
Dados of Mdic shows that Portugal maintained its position ahead of Argentina among vendors this year. Executivos expects that the share of imports, currently 35% of national consumption, will grow with the agreement.
Dentro of imports, Europeans represent 42.4% of bottles. Chile and Argentina together account for more than half. The dispute is expected to intensify in the coming years.
Malu Sevieri, from ProWine São Paulo, sees greater demand from importers. European Produtores that previously did not support Brasil are now looking for space. Enthusiasm appears in conversations about participating in events and expanding portfolios.
Restaurantes expands orders for Italian and French labels
André Martins, director of expansion at Pobre Juan, a chain with 23 units, predicts a price drop of between 5% and 8%. The company sells around 12 thousand bottles per month and is already talking to importers to include more Itália, França and Espanha options.
The movement benefits the consumer with greater variety at a lower cost. Martins assesses that sales profitability can also improve.
Portuguese Produtores plans new features for Brasil
Frederico Falcão, president of ViniPortugal, an association that brings together more than 500 producers, is betting on an increase of up to 10% in sales for Brasil. The country has per capita consumption below 3 liters per year, much lower than the 60 liters of Portugal.
José Luis Moreira of Silva, CEO of Esporão, confirms that Brasil is the company’s second largest market, behind only Portugal. The company is considering expanding the portfolio with sparkling wines and wines with a lower alcohol content.
Fernando Zamboni, from Winelands, projects growth of around 11% in imports. Ele highlights that European producers are aggressive with prices and need to sell production at a time of global challenges.
Brasil appears as one of the few markets where wine consumption is still growing.
Impacto should consolidate by the end of the year
The next three months are decisive for the perception of prices on the shelves. The end of the year, the period with the highest sales volume, should see the clearest effect of the tariff reduction.
Especialistas of the sector follows the evolution of exchange rates and the international situation. Conflitos on Oriente Médio influence freight costs and can change the pace of the decline.
The agreement paves the way for greater presence of labels from traditional regions such as Bordeaux, Toscana, Douro and Alentejo. Consumidores Brazilians gain diversified options in a market that still has room for expansion.
