Tribulations of Exporting Argentine wine On November 3, 2004, just 36 hours after he got off a plane from Los Angeles to Buenos Aires, Daniel Karlin has met the girl he would marry. They just got married in July.
In the meantime, Karlin, with the help of his wife Lourdes, began Anuva Wines, a company that buys, imports, distributes and markets wines of Argentina shop for the U.S. market. The initial impetus came from the company on a simple fact that tourists to Argentina fell in love with the quintessential Malbec and Torrontes Argentina-varieties as Karlin did when he arrived. The problem was that they had virtually no way to recover more of these rare gems in the U.S.
Karlin has created a wine club for wines specially selected vessel from Argentina directly to American tourists who visited Argentina. They could then take advantage of these various collections of wines, all selected by hand Karlin and a group of wine experts and all from Argentina, at home after returning from their travels. Anuva these wines now ships wine to 34 states in exclusive collections containing limited production of Malbec and Torrontes and conventional varieties as unique as Bonarda and Tannat. Implementing this service delivery at home, however, was not as simple as Karlin thought it would.
"We spent a lot of money on lawyers to be able to understand how to ship wine to people," Karlin said with a smile. The alcohol industry in the United States is highly regulated. In addition Anuva shipping service for customers and wine club members across the United States, they have the only service of tastings for tourists in Buenos Aires. Anuva also offers wine tasting at home in some cities to U.S.
Karlin grins again when he speaks of his discovery of Julian Cavagnaro Via±a Maraa vineyard. great-grandfather immigrated to Mendoza Cavagnaro from Italy and settled their ancestral lands in 1891. Now Julian has given its name, is still a little known award-4000-bottle production, single vineyard Malbec Reserva called Cavagnaro. "I shared with some retailers in New York and Los Angeles. They all guessed that the retail price should be double what we sell, "says Karlin.
Because of its success with brands such as Cavagnaro, Anuva is now operating the wholesale side of the business where they see further upsides. "Since the financial crisis, we realized that the points are all costs and that is where Argentina won," said Karlin.
With a lower average cost per liter than any other major wine producing country in the world, Argentina is growing by leaps and bounds. Not only have they increased their market share of imported wines to 400% over the last 10 years, surpassing Chile to become the number four wine imported by country (after France, Italy and Australia), but they were the only countries other than Chile to grow in value and volume at a time when comparing data from H1 2009 to H1 2008. imports from Argentina to the United States increased by more than 30% in volume and value. The only other country to approach these values is Chile, while imports of all other countries in the United States have dropped dramatically. France is down 27% in value and 11% by volume, in Italy 20% and 7%, Australia 5% in value, and Spain, South Africa, New Zealand and Other minor areas are all down too. Interestingly, the global wine market continues to grow in the U.S. for the 15th consecutive year in addition to the fact that imported wines as a segment are also growing.
"We think we're in good company at the right time," said Karlin. "Malbec and tourism in Argentina are very popular at the moment but we need this trend to continue."
So why is not everyone jumping on this case? Karlin said barriers to market entry of competence in Spanish.
Posted on February 1, 2010.