• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Latin Today, Profits Tomorrow

Posted on: Friday, 17 March 2006, 06:00 CST

By Anonymous

Fispal Latino offers insight into Latin beverage opportunities

When it comes to Latin America, the alcohol beverages imported to the United States that come to mind are tequila, Corona beer and rum. In reality, this region exports more than $4 billion in alcohol beverages and more than 26 percent of that heads to the United States. Other trendy options in Latin American beverages are Brazilian beers, cachaca, agua ardiente and Argentine wines.

Not only is consumption generated by Hispanics who crave their roots, but among those in the U.S. general market who have either traveled or experienced these drinks. In addition, trends in restaurants and bars have impacted the popularity of these beverages, partly due to the growing Hispanic population that accounts for more than $581 billion in buying power.

From New York to Los Angeles, most of the trendsetting restaurants have at least one Latin drink in the menu. And you don't have to venture out of the mainstream to find them, as restaurants such as The Cheesecake Factory and Outback Steakhouse are keeping in step with these popular drinks.

A particular head-turner has been Argentina's Malbec grape, which is known for its concentrated fruit flavors. A failure in its native Bordeaux due to the soil conditions, it has adapted very well to the arid terrain of Mendoza and San Juan, and has become a top player worldwide.

Argentina is the fifth-largest wine producer in the world after France, Italy, Spain, and the United States, while Chile ranks as the 10th largest producer in the world. In the period from January to October 2005, Argentina's wine exports rose by 30 percent in volume and 26 percent in sales compared to the same period in 2004. This is an equivalent to $320 million in exports for the time period.

The United States imports more than 23 million liters of quality wine from Latin America. The Malbec trend continues to gain strength, as demonstrated by the 25 percent increase in Malbec exports, with most of the product shipping to the United States, according to Argentina's National Wine Institute. Additionally, other varieties of interest to the U.S. market within the Malbac family include the Syrah Malbec, Merlot Malbec and Malbec Cabernet Sauvignon. The Latin American wine industry boasts 14 strong wine varieties in all, and is a strong producer of Cabernet Sauvignon, Chardonnay, Shiraz and Merlot, to name a few.

According to the U.S. Federal Agricultural Service, the government is also looking to bring the industry together with the Strategic Plan for Argentine Wine 2020, which aims to create an "Argentine brand" while increasing the country's world market share from 1.6 percent to 10 percent by 2020. The plan allocates more than $15 million in marketing and export promotion, and has an objective of $2 billion in sales.

Turning trends to profits

Although retailers know about these facts, many question how to go from the concept to reality. How can these retailers reach south of the border to capitalize on the demand? For those who see this as an opportunity to increase profits, a number of tools to reach manufacturers are provided both by the government and private promotional agencies. One, in particular, is Fispal Latino, the largest Latin food show in the world. In its second year, the convention features a number of returning exhibitors who found last year's show full of lucrative opportunities.

Based on after-the-show results, 26 percent of participants in 2005 focused on the beverage industry, and that number already is increasing rapidly for this year's convention.

This is the first event exclusively dedicated to trade integration of the Americas for companies in the food and beverage sector. Slated for May 10-12, 2006, at the Miami Beach Convention Center in Miami, the Fispal Latino show features an International Private Agency for Food Market Development. This provides a seal of quality for exhibitors and attendees, and offers buyers and sellers support and consulting throughout the year. The show boasts a series of programs that will help buyers identify the products that are right for each target group and location.

It also is important to remember the political component in bringing in these Hispanic products to the shelves or consumers' plates, and a series of treaties have been implemented or are in the process of being implemented to facilitate commerce between the Americas. For the first time, Fispal Latino has managed to secure the distinctive Hemispheric Congress, which gathers many political decision-makers who address these issues, to be held within the program.

Fispal has gained the trust of countless companies all over the world as one of the main opinion leaders and integrators operating in the food market. Its projects have introduced a contemporary vision of how to promote products and services in a simple and effective way on behalf of competition and individuality. For more information on Fispal Latino or its events, please visit fispal.com, or contact Oscar Dominguez at 305/448-2400 or by email at oscar.dominguez@fispal.com.

Fispal Latino

May 10-12, 2006

Miami Beach Convention Center, Miami, FIa.

Fispal.com

Copyright Stagnito Publishing Feb 2006

Source: Beverage Industry

More News in this Category