National wine sale rehearses at the end of year reaction

Brazilian wineries are facing a tough year. Until October, the accumulated sales of almost 16% retraction. Thanks to a resumption in November and December, the forecast now is stability in sparkling sales and falling 8% for other categories of wine.
In addition to the consumer in terms of unemployment and retracted the fall in income, and an increase of 900% in the IPI, the industry faced a drop of 57% in the crop of grapes, which encareceu the price of the raw material between 60% and 150% from 2015.
The sector reports a 15.9% drop in sales in January and October, compared to the same period in 2015, according to data of Ibravin (Brazilian Institute of wine).
On the supply side, the greatest difficulty faced by manufacturers was the fall grape harvest, which went from 702,900 tonnes in 2015 to 300,300 tonnes in 2016, due to climate problems. Due to the scarce supply, the price of a kilo of grapes rose from 60% to 150%, depending on the variety, according to the companies. This scenario prompted the wineries to make significant changes in their production lines, in an attempt to get more revenue with less product.
Salton Winery, second largest in volume after the cooperative Aurora Wine no longer produce this year table wines and juices, concentrating only on production of sparkling wines, which have higher added value, and distillates, such as vodka and cognac. The company also used old stocks of grapes processed in production.
With that, the Salton should close the year with a fall of 15% to 20% in sales volume. By revenue, will have a 20% order growth, to 390 million, according to Daniel R$ Salton, President of Salton. "Everything indicates that next year the grape crop will be normal, then we can resume the production lines were stopped", says the Executive.
The entrepreneur said that in recent days, major retail chains began to issue several requests for 40000 to 70000 wine boxes. "The expectation is of a strong growth this year," said Salton.
The winery Peterlongo was another who has decided to focus the use of purchased grapes for the production of sparkling and fine wines. The production of sparkling wines was expanded in 20% in the year, taking advantage of stocks from previous years also. Production of juices have been reduced by half, with a reduction of 1.1 million litres. Luiz Carlos Sella, partner and Director of Winery Peterlongo, said the company had a 50% drop in production volume this year. He added that he expects growth in sales in December, but did not give a specific index.
Aurora, in turn, managed to maintain stable production volume because made contracts with cooperatives to ensure supply of raw material. In addition, used previous years stocks of wine and grapes processed. Hermínio Ficagna, President of the Aurora Winery, estimates that the cooperative will close the year with stable sales volume and high of 15 percent in revenue, to 500 million R$.
"For next year, the weather is contributing to a beautiful crop. This will cause the price of the raw material is more favorable. We operate in 2016 with a raw material of 150% to 200% more expensive, "said Ficagna.
Dirceu Scottá, President of Ibravin, estimates that the price of the raw material tends to be stable in 2017 with the standard harvest. The indications for the crop that''s starting to be harvested in January is production of 650,000 tons.
The Dunamis wines, specializing in fine wines and sparkling wines, reported stable production this year, close to 80000 bottles. Celso Gromowski, its General Manager, said that this was possible because the vineyards of the company faced a better climate compared to other regions of Rio Grande do Sul. The company, he said, managed to stabilize sales expanding distribution in the country.