1. The Value Chain Analysis
CBI - Ministry of Foreign Affairs

2. Objective
 The Validation of the CBI’s Export Value Chain Analysis of
Bolivian Wines:
“ What are the Key Bottlenecks preventing Exports?”
 Presentation of contents
 Feedback
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3. Contents
•History wine production
•Tourism
•Regions
•Grapes
•Exports
•Quality
•Corporate Social Responsibility (CSR)
•Supply Chain
•Stakeholders
•Bottlenecks summary
•Value Chain Map
•Market opportunities
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4. History
• XV century start of viticulture with Spanish and Portugese traders
• Cinti region in 1584, registered in Tarija in 1606, followed by 1618 in
Samaipata
• Through mining ‘Singani’ became popular against low winter
temperatures
• Priest Alejandro Corrado wine exported to Tucuman and Potosi in 1755
• XXth century grape production > 1000ha
• Increasing professionalism in production and distribution now reaching
estimated 3000ha
• Sector provides 5000 direct and 11000 indirect jobs
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5. Tourism
• Wine route started in Tarija 10
years ago
• New project led by FAUTAPO
include quality certification
system for wine route,
increasing tourism
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6. Regions
• in 2013 estimated increase to 2700ha (90% area in Tarija and Chuquisaca)
• 50 wineries active in Tarija, of which 33 registration SENASAG (health) and
SIN (tax)
• 2200 small family growers in Tarija and Chuquisaca (0,5 - 1ha)
• 260 small size growers (1 - 5ha)
• 100 growers (>5ha)
Bottleneck – Focus on local consumption of grapes and production of singani and artisanal
Bottleneck - small economies of scale resulting in relative high cost prices
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7. Grapes
Type of wine Grape Variety Quintal (qq) Percentage
(%)
Table white wine Moscatel de Alejandria 28,960 28.7
 Most planted varieties are Table red wine Black criolla grape 10,231 10.1
Moscatel, Cabernet Sauvignon Varietal red wine Favorita Diaz 9,197 9.1
and Tannat. Moscatel is mainly Varietal red wine Cabernet Sauvignon 8,044 8.0
used as base for Singani Varietal red wine Syrah 5,523 5.5
Table red wine Grenach 4,761 4.7
 International quality varieties as Table red wine Alfonso La Valle and/or 4,296 4.3
Rivier
Cabernet Sauvignon, Varietal red wine Malbec 3,717 3.7
Chardonnay, Sauvignon Blanc, Table red wine Cariñena 3,183 3.2
Merlot, Syrah, Malbec and Varietal white
wine
Chenin 2,742 2.7
Riesling account for only 22% of Varietal red wine Merlot 2,569 2.5
total grapes. This includes some Varietal red wine Tempranillo 2,237 2.2
local yet interesting varieties Varietal white Ugni Blanc 1,948 1.9
wine
such as Tannat (Uruguay) and Varietal white Franc Colombard 1,735 1.7
Torrontes (Argentina) wine
Varietal red wine Barbera de Asti 1,702 1.7
Table red wine Cereza 1,296 1.3
Bottleneck for exports – Available grape variety Varietal white
wine
Riesling 1,087 1.1
Varietal white Sauvignon Blanc 1,063 1.1
wine
Table red wine Vischoqueña 969 1.0
Others (includes 18 5,760 5.5
varieties)
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Foreign
TOTAL 100%

8. Grapes
• In 2009 Cadastre
registered 539ha
table grapes, 689
wine grapes and
360ha singani
Bottleneck – local consumption of 10 million liters assumes limited interest for exports
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9. Exports
• Hardly any exports of Bolivian Wines:
Less then USD 50,000 per year (of which large proportion to China)
Bottleneck – Limited expertise and experience with exports
Bottleneck – Limited awareness of market potential
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10. Quality
• Limited quality assurance (HACCP) nor ISO registrations
• Complicated quality registration process (SENASAG)
Bottleneck – No certificate of Origin without Quality registration
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11. Corporate Social Responsibility (CSR)
• Large proportion
of family growers
(limited social
requirements)
• Environmental
standards are
implemented
scarcely
• Required training
and education to
wineries and
grape growers
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12. Supply Chain
• Complicated and lengthy procedures for imports of raw material such as
glass and cork
• No glass factory - limited local demand
Bottleneck – A great dependency on complicated Imports of raw materials
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13. Bolivian Wine Stakeholders
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14. Stakeholders
• A variety of Wine
Associations exist (ANIV,
AMEVIT, ASOBOC,
AVISA)
• Limited budget, limited
awareness, limited
grapes, limited wineries
• Co-operation? A
collective sectoral
approach is the challenge
Bottleneck – No coordination & structural information sharing between associations
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15. Stakeholders
• Large institutional
landscape with individual
service providers (IBCE,
FAUTAPO, CENAVIT,
SENASAG, IBNORCA,
CAINCO, CADEX, Wine Sector Platform required to
CANEB, FTE) co-ordinate efforts
• Some funds available for
viticulture, export
promotion (CBI, NL
Embassy, BID)
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16. supporting functions
BSOs donors Wine BSOs
informing & communicating
grape importers
growers
wineries consumers
dry goods
suppliers retailers
quality control, taxes, permits
ministry of agriculture
rules & regulations

17. Bottlenecks for Exports: Summary
 Insufficient supply of grapes for the Export Market
 Quality of supply of grapes for the Export Market
 Lack of certification bodies
 Black Markets and illegal imports
 Dependency of imports raw materials
 Local market is sufficient to current offer
 Small economies of scale resulting in relative high cost prices
 Zero awareness of Bolivia and Bolivian wines in target markets
 Lack of efficient and collaborative approach for the whole sector
 Lack of export knowledge and skills
 Percepciones del mercado desde las empresas (inteligencia)
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18. Cuellos de Botella
 Reactivación SENAVIT: Laboratorio para la certificación del producto,
Investigación de producto
 Asistencia financiera (productos específicos), mecanismos de
financiamiento.
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19. Opportunities in exports
There are a few EU markets that clearly have potential:
 Open consumer opinion; markets that are open to new trends
(UK, Netherlands and to lesser extend Sweden, Denmark and Germany)
 New wine markets; short wine drinking tradition, are open to try new things.
(Poland)
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20. Market Opportunities
Relative high
United Kingdom
production / export
Netherlands
prices
Germany
Relative small Denmark
available export Sweden
volumes Poland
Bolivian wine focus on (Super) Premium category
Specialist retail
Horeca
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21. Market Opportunities: UK
Retail - 72,5% marketshare - nearly 1 billion liter
Specialist channel 8,3% market share - nearly 80 million liter
South American category 10% - approx. 8 million liter
Potential Bolivia 10% of South American category ?
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22. Market Opportunities: Netherlands
Retail - 80% marketshare - 200 million liter
Big focus on wines below € 4,99 price point
South American category within Specialist channel 2,5 million liter
Potential Bolivia 10% of South American category ?
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23. Market Opportunities: Denmark
Retail - 80% marketshare
Large number of small importers with own specialist wine shops 27% of wine
come from Developing Countries - 10 million liter
Potential Bolivia 5% of Developing Countries category
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24. Market Opportunities: Sweden
Retail - monopoly market (1 buyer) nearly 200 million liter
No specialist channel available
Small Horeca market
Potential Bolivia for a small tender with Systembolaget?
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25. Market Opportunities: Germany
Large market (50% own production/50% imports) nearly 2 billion liter
Only 3% of sales > € 5,00 - still nearly 70 million liter
Potential Bolivia 0,5% of premium category ?
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26. Market Opportunities: Poland
New wine market - growing consumption, now estimated 50 million liter
Specialist channel - nearly 3 million liter
Potential Bolivia 1% of specialist wine sales ?
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27. Your input and Feedback
Complete overview of bottlenecks?
Validation: is the contents of the VCA in line with your view?
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28. Bottlenecks
Bottlenecks Validated
Conocimiento y experiencia en la exportación
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