Think of international wine markets and Mexico, Brazil,
Poland and Nigeria may not immediately spring to mind.
But those countries have been identified by Rabobank as
"hidden gems" holding the potential to become important
As sales mature or decline in many traditional markets, wine
companies globally were increasingly searching for new growth
Those four countries each offered good prospects of medium to
longer-term growth for ambitious wine exporters willing to
make early investments in building their brands in those
markets, the bank said.
The Mexican market was proving lucrative for many suppliers.
As well as enjoying a strong economy, the growing
middle-class population was consuming more wine, wine imports
growing at a 20% compound annual growth rate (CAGR) between
2006 and 2011.
Imported wine volumes in Brazil grew nearly 30% from 2007 to
2011, while Poland had also seen strong growth in demand.
While Nigeria required a much higher tolerance for risk, wine
imports had been growing at a 16% CAGR in recent years.
Wine companies were now facing the question of what to do
with those four countries.
Although they presented opportunities, each had a very
different market with much uncertainty for traditional
branded wine companies, Rabobank food and agribusiness
research analyst Stephen Rannekleiv said.
Along with the opportunities came risks and the possibility
the opportunity might not be realised. The "flip side" was
that early exposure to nascent markets gave a company
hard-won experience and expertise as well as a head start on
the competition that would likely emerge as the markets
Companies that managed those opportunities correctly had a
chance at securing long-term profitable growth, he said.