Spanish winemakers have their eye on Brazil as a solid market for their products. Not only is it much larger and home to 4-times as many people, the EU-Mercosur Trade Agreement signed last summer will indubitably help Spain boost its exports there while also protecting EU food and drink with DO and PGI labels. At the moment, per capita consumption in Brazil is quite low: 2 liters per person per year, with the bulk consumption in two areas,
Sao Paulo and Rio de Janeiro. That being said, there is considerable scope for growth as Brazil is the biggest importer of wine in all the region, and Spanish winemakers interested in internationalization will be focusing on this strategic market. Of course, a strategy like this has its challenges. Although Brazilian consumers are interested in Spanish wine, it ranks 6th in terms of exports, while Chile ranks number one. However, at the moment there’s an opportunity for rose wines, as consumption and imports are both on the rise. The biggest challenge has been the import tax, which is 27%. As a result, Spanish wine is expensive at restaurants and other points of sale. This should disappear gradually, over a period of 8 to 12 years, once the free trade agreement enters into force in 2021, should the text be approved. It’s believed that, as a result, the price of Spanish wines could decline by close to 30%, making them much more competitive.