Mendoza wine merchants fail to feel the benefit

Wine merchants in the seemingly on-the-up region of Mendoza in Argentina are perhaps feeling the least amount of benefit from the global surge in sales of Malbec.

The grape itself grows well in Mendoza as it prefers consistent weather conditions such as those found in the region, and that has made Argentina a major supplier to the global Malbec market.

However, in spite of this, local wine merchants are not enjoying the increase in profits that might be expected, in part due to the real-terms impact of inflation.

According to a report from Wine Intelligence, local wine producers are suffering from the 'Mendoza blues', with inflation officially at 10% according to the Argentinean government, but believed by some analysts to be closer to 25%.

Over the past three years, for instance, the value of the peso has dropped by 40% compared with the US dollar, wiping out much of the additional profit gained from increasing North American sales of Malbec.

Juan Park writes for Wine Intelligence: "Despite these barriers, the Argentinean wine community looks in good shape, resilient, and with an increasing diversity of styles to communicate and share the world from neighbouring countries to as far as Asia."

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