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Wines of Argentina: Pioneering Sustainability and Export Growth in the National Wine Industry

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23/08/2024 Transforming Argentine Wine: Sustainability, Strategic Alliances, and Innovation Drive Global Growth

Wines of Argentina (WofA), the organization at the forefront of promoting Argentine wine on the global stage, has embarked on several innovative initiatives aimed at elevating the country's wine industry. These efforts focus on sustainability and expanding exports, marking a new chapter in the evolution of Argentine wine as it faces modern challenges.

Driving Sustainability with "Sustenta Vitis"

One of WofA's flagship initiatives is the "Sustenta Vitis" program, launched in 2023 with substantial backing from the European Union's AL-INVEST Verde program. The program emphasizes the transition of Argentine wineries toward more sustainable practices. Partnering with Interco Nouvelle-Aquitaine, this initiative is designed to foster environmentally and economically sustainable practices across Argentina's wine regions.

With €930,000 in external funding secured for green initiatives, WofA is enabling wineries, both members and non-members, to access financial incentives and technical support. These resources are geared towards obtaining coveted certifications, improving waste management, and enhancing water and energy efficiency. The program aligns with the Sustainability Protocol of Bodegas de Argentina, which has already certified 237 production units. This focus on sustainability not only meets the growing global demand for eco-friendly products but also positions Argentine wine as a leader in the premium, sustainable wine market.

In a bid to further innovation in sustainability, WofA has also introduced "VINO LA IDEA," an innovation challenge in collaboration with Lodo. This competition seeks innovative solutions to pressing industry challenges, with the winning idea earning a spot at the prestigious Vinitech-Sifel 2024 Fair in Bordeaux and participating in the "Sustenta Vitis Innovation Tour."

Catena Zapata Winery; source: Wines of Argentina

Strategic Alliances for Export Growth

WofA's commitment to increasing Argentine wine exports is evident in its recent partnership with the British Argentine Chamber of Commerce (BACC). This strategic alliance, formalized in June 2024, aims to strengthen commercial and cultural ties between Argentina and the United Kingdom. As the UK represents the third-largest market for Argentine wine exports, this partnership is crucial in expanding the presence of Argentine wines abroad.

In the first quarter of 2024 alone, Argentina exported 19 million liters of wine to the UK, generating USD 71 million in revenue. This partnership is expected to further boost these figures by promoting Argentine wine as a premium, sustainable choice in the UK market. Alejandro Vigil, President of WofA, emphasized the importance of this agreement, noting that such collaborations are vital for showcasing the quality and diversity of Argentine wines on the international stage.

The strategic alliance will also explore reciprocal membership benefits between WofA and BACC, fostering deeper business connections and expanding the network of Argentine wineries in the UK. The initiatives planned for the latter half of 2024 are expected to accelerate project execution and uncover new commercial opportunities in this key market.

Evolving Strategy for a Changing Industry

Looking ahead, WofA is revising its strategy with an eye toward 2030. This strategic overhaul responds to global shifts in wine consumption and the changing relationship younger generations have with wine and alcohol. A newly formed Executive Committee, comprising members of WofA's Board of Directors, will spearhead this evolution, ensuring the diverse needs of its member wineries are met.

Central to this strategy is a thorough reassessment of the "Argentina’s Got Range" communication campaign, which was first implemented in 2022. The campaign highlights Argentina’s premium sustainable wines, the success of Malbec as a flagship variety, and the country's innovation in viticulture. The upcoming revision aims to refine this messaging and ensure that it resonates with the next generation of wine consumers while continuing to bolster Argentina's market share globally.

In support of this, WofA has established a partnership with Georgetown University to conduct market research among U.S. consumers, the largest market for Argentine wine. This research will provide valuable insights into consumer perceptions, price points, and preferences, helping to fine-tune WofA’s promotional efforts and maintain Argentina’s strong presence in the U.S. market.

A Vision for the Future

Wines of Argentina's recent efforts reflect a dynamic and forward-thinking approach to the challenges and opportunities facing the national wine industry. Through strategic alliances, sustainability initiatives, and a commitment to innovation, WofA is not only boosting exports but also ensuring that Argentine wine remains competitive and relevant in a rapidly changing global market. As these initiatives unfold, they promise to solidify Argentina's reputation as a producer of high-quality, sustainable wines that appeal to consumers worldwide.

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