Mexican wine sales explode on the internet

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They opened their store in the Mercado Libre marketplace with their entire portfolio, in addition to investments in delivery applications, such as Cornershop and Rappi.

Last year the pandemic caused the closure of one of the sales channels for wine: restaurants; However, Concha y Toro México, a wine company, managed to capitalize on changes in habits, beer shortages, even the trend of cooking at home and growing by 20%, however, it also made a strong commitment to electronic commerce, where its sales increased up to 300%.

The director of Business and Marketing of the brand, María Fernanda Loyo Loyola, told Forbes Mexico in an interview that 2020 was good, since although there were many industries that were affected by Covid-19, in the case of the company the consumer favored them when making a purchase choice.

“ We had to adapt and make e-commerce one of our points too, where we participated before was self-services … since last year we did a meticulous job from the catalog, that the name of the products was correct, the photos were up-to-date or the technical sheets ”.

They opened their store in the Mercado Libre marketplace with their entire portfolio, in addition to investments in delivery applications, such as Cornershop and Rappi, to be closer to the consumer

What allowed them that their sales by electronic commerce registered an advance of 300%, although the bases were very small; but the trends are still positive and internet sales currently maintain a greater dynamism compared to the traditional channel.

“ We had a total company growth of approximately 20% in sales in value and 19% in volume, which was also complex, since we had to redo all our plans, especially to communicate at a time when people were not leaving. to self-service and the digital channel became more relevant than before ”, he affirms.

And it is that, he says, that the channel of specialized stores, such as La Castellana or La Europea, was more affected for the category because it is who supplies the restaurants, so the purchase was turned over to the retail channel and Mexicans began to purchase wine for their homes.

“The total category of wine in Mexico did not show growth, there was only a switch of channels, what was consumed in the consumption centers was allowed to consume and was taken home, which in principle could be influenced by the shortage of beer, however, wine has been positioned over time as an accompaniment to food, in this trend of cooking at home, recipes with friends, wine has become an accompaniment ”.

María Fernanda Loyo highlights that the consumer opened the door to their home, a trend that she hopes will continue throughout 2021, which, added to the reopening of restaurants, would boost wine growth in the country this year.

In fact, it points out that the wine category is still small in Mexico, the per capita consumption is 850 milliliters, it has great potential, where the purchase decision point becomes fundamental.

Wine Market in Mexico 2020-2021

The wine market in Mexico has shown annual growth of approximately 8% during the past 5 years.

Importations have increased during the past 10 years, increasing its value by 88%.

Mexico has the second-highest consumption growth rate worldwide according to the International Organization of Vine and Wine (OIV).

Current Trends in Mexico

Mexican wines accounted for 29% of Mexico’s consumption, while the remaining 71% corresponds to imported wines.

Wine consumption is primarily concentrated in 3 cities, Mexico City, Monterrey, and Guadalajara, with a potential increase in touristic locations.

Due to the health contingency generated as a result of the COVID19, online sales of the various supermarkets have increased by 300% during 2020.

Digitalization of processes represents a huge potential in terms of sales increase, and are expected to grow by 40% yearly.

Consumers in Mexico are under 45 years old, having a pretty good balance in terms of gender (55% male and 45 female).

Types of wine consumed (71% red, 11% white, 9% sparkling, and 9% rose and others).

Source: legalmondo.com, forbes.com.mx

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