Welcome!

News Feed Item

Rabobank Report: Mexico, Brazil, Poland, Nigeria Are Potential High Growth Wine Markets As Well As China, South Korea

Offer Competitive Advantages for Early Entrants

NEW YORK, Nov. 26, 2012 /PRNewswire/ -- Rabobank has published a new research report on the growth potential of emerging wine markets, identifying Mexico, Brazil, Poland and Nigeria as having long-term growth potential for the wine industry, in addition to the traditional emerging wine markets of China and South Korea. 

In the report, titled "The Road Less Travelled," Rabobank's Food & Agribusiness Research and Advisory group says that while China and South Korea probably rank as the most attractive emerging wine markets, Mexico, Brazil, Poland and Nigeria are four "hidden gems" that have the potential to become important growth markets.  Rabobank says that early investments to establish a route to market and build brand awareness hold the key to long term growth in these markets.

Rabobank says that with maturing or declining sales in many traditional markets, wine companies across the globe are increasingly searching for new growth markets.  Emerging markets are attracting the interest of nearly all major wine companies.  But, the bank says, those companies that were late to invest in these markets often have a greater challenge as the competition has already established routes to market and has garnered share of mind with the consumer. 

Hidden gem markets are not currently the largest nor the most attractive wine markets in the world.  These markets offer good prospects for long term growth, but are in earlier stages of development and may thus carry more risk.  However, the rewards for identifying hidden gem markets, investing early and successfully developing a beachhead may be worth the risk for some companies. 

Rabobank's four hidden gems – Mexico, Brazil, Poland and Nigeria – each offer good prospects of medium to longer term growth for ambitious wine exporters willing to make early investments in building their brands in these markets:

  • Rabobank says that the Mexican market may be easy to overlook, but it is proving lucrative for many suppliers.  As well as enjoying a strong economy, the growth in the middle class population is leading to improved wine consumption trends and wine imports grew at a 20 percent compound annual growth rate (CAGR), between 2006 and 2011. 
  • Similarly, imported wine volumes in Brazil grew by nearly 30 percent in the four years from 2007 and 2011 due to growing interest in wine and limitations of domestic producers to match the quality of imports. 
  • Poland too, has seen strong growth in demand for imported wine, and although pricing remains constrained, the relatively low levels of corruption may make it an attractive option for foreign investors. 
  • In contrast, Nigeria is far less transparent than Poland and requires a much higher tolerance for risk, but wine imports have been growing at a 16 percent CAGR in recent years, and the government has made progress in modernizing the economy and reducing social conflict.  With a population of approximately 170 million and large strategic petroleum reserves, Nigeria has a strong foundation for continued economic growth and increased demand for wine.

Stephen Rannekleiv, Rabobank Food & Agribusiness Research analyst, said: "Wine companies are now facing the question of what to do with these four hidden gems.  Although they present opportunities, each has a very different market with much uncertainty for traditional branded wine companies.  Furthermore, along with the opportunities in these markets come risks, and the possibility that the opportunity may not be realized. 

"The flip side is that early exposure to nascent markets gives a company hard-won experience and expertise as well as a head start on the competition that will likely emerge as the markets develop.  Wine companies that manage these opportunities correctly have a chance at securing long-term profitable growth." 

The Rabobank report on the growth potential of these smaller emerging wine markets is available to media upon request.

Rabobank Group is a global financial services leader providing wholesale and retail banking, asset management, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries.  In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry.  Rabobank's Food & Agribusiness Research and Advisory team  is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. www.Rabobank.com

 

SOURCE Rabobank

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...