Varietal Vs. Generic

The primary focus between Varietal or Generic Grapes lies in the need to develop a new wine market upon a faltering one, steering producers toward original productions techniques. In order to determine the future demand of wine products we considered Argentina, which is a fairly new player to the industry and currently holds the rank of 11th largest producer.

In Argentina the most significant changes were brough about in the middle of the XX Century, responding to the need for evolution in the face of a more educated client. The phenomenon which demanded the most attention was to increase the quality of production and steer away from quantity . In the time between 1970 and 1990 there was an estimated 20 % reduction in the average consumption of wine internationally. The reduced consumption was attributed to the introduction of alternative beverages (Beers, Liquors, etc). Producers realized a demand  to increase the range of wine products. Thus, new varietals were produced to supplement the displacement in the market.

European (Old World) varietals were extremely popular in international markets, and appropriately became the popular grape choice for the New World (U.S. , Australia, New Zealand, Argentina, Chile, South Africa).  Considering the time frame required to build a strong market share, the following figures display the creation and success of the varietals in the New Wold countries;  during the late 1980′s Europe supplied approximately 92% of the wine market,  while in 2003 the consolidated exportation of New World wines expanded to supply 30% of the wine market.

The consumption figures in Argentina’s domestic market, painted a similar picture depicting a need to diversify. A 50% reduction of wine consumption has been recorded in the period between 1976 and 2006. In addition to low domestic consumption figures, it should be noted that only 10% of the total wine produced is exported.