Chile BUSINESS

Question 1

Chile is the world’s 4-largest exporter. What is a key challenge for the country?

How is the country responding? (5)

Answer 1

Low ave value per unit - only Spain and SA are lower

1. Wines of Chile - focus on mid-SP priced wines
2. Free-trade agreements e.g. China (now Chile’s largest export market) and MERCOSUR
3. Attempts to focus on unique varieties e.g. Carmenere, Pais
4. FDI from companies such as Robert Mondavi and Sena
5. Movimiento de Viñateros Independientes (MOVI) - grouping of small producers to promote in domestic and export

Question 2

To what extent is Chile’s wine production concentrated?

Answer 2

Highly concentrated - 80% produced by 4 companies incl. Concha y Toro

Wineries own large swathes of land and source grapes from growers