Rabobank Looks At Brazil Market

From News Relase email:

Headlines this quarter:

– The Brazilian wine market has shown strong growth over the past decade, but trends have moderated over the past two years and the market continues to evolve

– Retailers in the Brazilian market continue to improve their management of the wine category, creating opportunities for strong brands

– Direct-to-consumer sales have grown in recent years and are becoming an important channel within the Brazilian market

– Soft economic growth, lack of adequate transportation infrastructure and looming tax hikes set to go into effect in September will limit near-term growth trends

– In the medium and long term, Rabobank believes that the Brazilian wine market continues to offer attractive growth prospects, though it is unlikely to return to previous double-digit growth rates and will continue to experience ongoing volatility

– Wine grape production in the Southern Hemisphere appears to have been quite healthy, with nearly all major supply countries registering above-average crops

– US wine imports registered a reversal of trends in Q1 2013, with bulk wine imports declining and bottled imports showing growth

– Bulk wine prices are generally beginning to soften across regions, supported by the large crops in the Southern Hemisphere

– The USD has strengthened on the back of good economic news, which has provided welcome relief to suppliers in many New World countries, but the prospect of continued quantitative easing may begin to weigh on the recent strength of the US currency.

For the full study, contact Stephen Rannekleiv, stephen.rannekleiv@rabobank.com