Analysis of the Brazilian wine market with particular attention at Casa Vinicola Zonin and its strategy

1. Gio vanni Br u segan
Fe der ico Curto lo
Anto nio De Luca
Ale ssandra Mag ro
Ta t j a n a M i h a j l o v i c
Fe d e r i ca Pat r o n
Je ssica Pe ssotto
Mauro Smaniotto

2. CARTA DO VINHOS
Ta ç as de vinho Garrafas de vinho
Prosecco DOC……..15 R$
Pinot Grigio…..….13 R$
Dom Perignon
vintage 2002………1000 R$
Amarone della
valpollicella………..500R$
#Intro d uctio n
#Data anal isys
#Bu reaucracy and tar iffs
#Dis tr ibutio n
#The co mpany: Casa Vinico la Zo n in
#Zo n in in Bra sil
#The n ew s trategy
#Swot
#Co nclu sio ns

3. Brazil
BRICS + Emerging
medium class
-More and more
people buy wine
-Growing interest
in wine culture
-Travel
-European/North
American life style
-Status symbol
-Sophisticated products

4. - 4172,5 million $ +4.9/year
(‘08
–
’12)
Brazilian wine market value
- 290,2 million $ -­‐3%
(‘12
–
’13)
Value of the Brazilian imported wine market
Recorded alcohol per
capita (15+) consumption
(in litres
of pure alchohol) by the
type of alcoholic beverage
Spirits Wine Beer Other

5. Data Analysis
Italy Chile
Argentina France
Portugal Other
Chile Argentina France Portugal
Italy Others
Import market shares by country
Import in value : million $

6. Data Analysis
Bottled wine (imported and still)
Liters (HL) Dollars $/l
Chile 2830000 9.084.300 3,21
Argentina 1270000 4.495.800 3,54
Portugal 930000 3.924.600 4,22
Italy 830000 3.220.400 3,88
France 330000 2.468.400 7,48
Others 610000 3.050.000 5
Total 6800000 24.820.000 3,65
Liters
Dollars
Chile Argentina Portugal
Italy France Others

7. Data Analysis
Bottled wine (imported and sparkling)
Liters (HL) Dollars $/l
France 1.306.606 22.873.679 17,51
Italy 944.968 4.223.637 4,47
Spain 777.931 3.917.939 5,04
Argentina 705.001 2.545.215 3,61
Chile 122.900 478.646 3,89
Portugal 64.497 331.054 5,13
Others 43.587 282.353 6,48
Total 3.965.490 34.652.523 8,74
Liters
Dollars
France Italy Spain
Argentina Chile Portugal
Others

8. Bu reaucracy and Tar iffs
PRODUCT II) IPI ICMS PIS COFINS AFRMM
Wine)of)fresh)grape,)Must)of)grapes)different)from)the)item)no.)2009
Champagne/others 20% 20% 25% 1,65% 7,60% 25%
In)container)with)capacity)equal)or)lower)than)2)liters 27% 10% 25% 1,65% 7,60% 25%
Other)must)of)grapes 20% 10% 25% 1,65% 7,60% 25%
Vermouth)and)other)wine)of)fresh)grapes)flavoured)with)plants)and)aromaNc)substances
In)container)with)capacity)equal)or)lower)than)2liters 20% 30% 25% 1,65% 7,60% 25%
Others 20% 30% 25% 1,65% 7,60% 25%
# Legislation does not impose any particular difficulties with regard to
imports of Italian products
# However, it is slow ,comports cost management and put some constraints:
-Wine composition may not exceed 13% alcohol
-Anyway , we find "fortified wine“ linked to an higher taxation (27% for
g wine compared to 40% of liqueur wines)

9. Bu reaucracy and Tar iffs
Needed documents:
- Export invoice (drafted in English or Portuguese,
presented in 5 copies to the customs authorities)
- Customs Declaration
- Transport documents (Bill of Lading or Air Way Bill)
- Packing List
- Certificate of Origin (Certificate of goods’ Origin, issued by the competent authority
of the country of origin)
- Analysis Certificates (it must be contain analytical parameters inspect in Anexo VIII)
- Wine labeling ( it can be in the country of origin language but with a back-label
translated in Portuguese)
- Packaging (certificated treaty wood pallet, or in plastic)

10. Dis tr ibutio n C hannel
About the 56% of invoices
come from GDO big chain like
Hypermarket National Chains
-Carrefour
-Wallmart
-Cencosud
-Companhia
Brasileira De
Distribuicao
-Companhia Zaffari
-Irmaos Muffato
Difficulties of the
Brazilian market:
-The average consumer consider all
European wine as the same
-High escalation of prices
-It’s not easy to find an importer
willing to sell new product
-Federal state (many distributors to
approach)
-Storytelling needed

11. Ca sa Vin i co la Zo n in
- The largest family-owned
grape growing and wine
making company in Italy.
- 10 estates located in the
most highly regarded
winemaking regions in Italy
- 550 employees
- 154’000’000 €
- “Family business and a
business of families”

13. Key s tre ngt hs in
inter natio nal market
-Multi-branded portfolio with dedicated
range to OFF and ON trade.
-Wide assortment covering all the price
segments from daily consumption to top
fine wines.
-Strategic partnerships in each market.
-Attention to the global market trends
and opportunities through tailor made
marketing strategies.

14. Casa Vinico la Zo nin
Internatio nal Department
International director
Zo n in USA
39 peo ple
43’400’0 00 €
Zonin UK
39 people
24’200’000 €
Export sales director
Area manager Area manager Area manager
Country
manager
in loco
Country
manager
in loco

15. Casa Vinicola Zonin +
Italian wine +
Brazil =
Succe ss

16. The h is to r y…f ro m t he beg inn ing
- Early 90’s
- Long-term relationship with
two main importers, one in
Sao Paulo and the other in
Bahia.
- The dimension of the
market has continuously
increased year by year

17. The fall
-2011: peak of sales of the
company -> 300000 bottles
-2012: lost more than half of
their market, bankrupt of its Sao
Paulo importer -> 120000 bottles

18. THE REACTION:
three alternatives
-Look for another
importer
-Open a branch of
the company in
Brazil
-Direct importation
?
?
?
NEW STRATEGY
? ? ?
?
?
?
?

19. The Idea to relaunch sells in Brazil was
to establish a new branch in the country
By having their local branch Zonin could be able to:
-Evaluate directly market trend
-Evaluate consumer Need
-Grasp different business opportunity
-Set up a Marketing campaign
-Enhance corporate image
-Minimize the Tax base for entering the country
This strategy has been quickly set a-side because the forecast of
the sales volume was not enough high to justify the investments

20. The n ew appro ach
This distribution
process in 4 step is
too costly, the sum of
markups is too high
With a 3 steps
distribution channel
Zonin can export at a
higher price without
pushing his product out
of the market

21. The n ew appro ach
Avoiding the importer passage the prices of
Zonin change radically.
The price of a “Linea classici” bottles passes
from 35–50 RBL to 25–35 RBL
Lower prices -> more competitive in the market

22. A class
B class
C class
wines over 100 R$
wines from 50 to 80 R$
wines from
30 to 40 R$
The mos t important vo lumes are
so ld in the pr ice range that goes
from 30 to 60 R$
Zo n in Linea
Je w e l s
Zo n in Linea
Classi ci
R$R$
R$
R$
Zo n in Lin ea
Spumanti

23. d is tr ibution sys tem
A cla ss
B class
C class
R$R$
R$
R$
Who lesales
Regional
high-end
supermarket
International
chain
Discount
St Marchè
Zaffari
Perini, Muffato,
Angeloni, Zona Sul
Walmart, Carrefour
Cencosud

24. OUR TARGETS:
REGION SUPERMARKET
Sao Paolo
Rio de Janeiro
Distrito Federal
Bahia
Paranà
Santa Catarina
Rio Grande do Sul
St Marchè
Zona Sul
Dona de Casa
Perini
Muffato
Angeloni
Zaffari

25. SWOT ANALISYS
Good reputation of Italian
wine
Tailor-made products
Large portfolio of products
Country manager in loco
Good value for money
Bureaucracy and tariffs
Price escalation
Strong power and low reliability
of importers
Weak brand awareness
Pro-capita consumption is growing
Increase of GDP per capita and purchasing power
Wine culture is expanding
New emerging class
Italian wine is fashion
Appeal of European lifestyle
Wine as status symbol
Domestic production is increasing
Market growth is slowing down
Changes in the legislation
Italian sounding wine
Different legislation region by region
Competition from South America
S
W
O T

26. Thank you for your attention