The chilean wine industry

Abstract

The Chilean wine industry has had an outstanding development since the 1980s to present days, which has resulted in a new viticulture and business environment. This was due to a significant change in the sector, which implied an adaptation of the wine offer to international demand. Some examples that support this adaptation, among others, are related to the use of stainless steel tanks, the constant search for the best expression of the grape variety linked to the territory, the identification of markets and their requirements and the adoption of management practices in business. Today Chile has around 137,000 hectares of cultivated area, distributed and concentrated mainly in Coquimbo and Araucania Regions, although there are some experiences that are expanding our wine-growing areas in southern Araucania and northern Coquimbo. The red grape Cabernet Sauvignon and the white grape Sauvignon Blanc are the two most cultivated in Chile. In terms of market structure, the Chilean wine industry is rather concentrated and strongly export oriented. Today wine exports represent more than 1800 million dollars and represent more than 80% of wine produced, which reach more than 130 countries. The domestic market is about 20% and currently registers a per capita consumption of about 13 liters, one of the lowest historically, because in the year 2000 it was close to 20 liters, and before the 1970s it was above 50 liters. Concha y Toro is the biggest company and one of the largest in the world.