Ciudad Real, may 07-09 2019

Ciudad Real, may 07-09 2019





At FENAVIN Ramón Tamames has warned that the sector's salvation resides in exporting, but at better prices

The Full Professor of Economic Structure has imparted the conference 'Can a wine producing country with 100 wines and 4000 wineries be governed?' on the third and last day of the trade fair

12.05.2011 | 

"Salvation of the wine sector resides in exporting, but at better prices and in promotion, always taking into account the strong competition of the new worlds." This was one of the conclusions reached by the Professor of Economic Structure, Ramón Tamames, at the conference that was held at FENAVIN 'Can an wine producing country with 100 wines and 4000 wineries be governed?', which was sponsored by 'Vinos de la España de Don Quijote'.

The great savant of Spain's economic world, has also pointed out in this critical overview that the culture of wine must be instilled, as it is practically non-existent among the younger generation, while in turn lamenting the lack of progress in the public sector so that wine can be considered a food product instead of a toxic product.

He also warned that the future of the sector is in the great wineries, "intelligent companies that apply R&D and that promote and sell certain brands." He also talked about China's potential as a giant that currently consumes 0.4 liters per capita and year, "but that it is set to turn into the world's supermarket as soon as it reaches half of what is consumed in the United States -15 liters-."

The President of the consultancy firm Efectó Dominó, Vicente Dalda, has been in charge of presenting the conference, describing Tamames as the Gran Monet Chair, a visionary, as already in the year 2002 he anticipated the crisis in a report on construction and infrastructures in a scenario of economic deceleration. He also highlighted the fact that Tamames has been appointed Honoris Causa by several of the world's universities, among them the University of Beijing. He is also laureate of the Rey Jaime I Economy Award.

In Tamames' opinion it is very difficult, yet also very interesting, to govern a mosaic of 121 territorial locations, 3500 wineries and 10,000 brands. A splendid drawing that must overcome a few barriers, such as the "bad culture" that the Government is responsible for impregnating, "having turned this food product into a toxic product", or, quoting his friend Félix López Palomero, "the problem with wine is that it is not glamorous."

New Producers

During the conference held at FENAVIN, the economist has also expounded on the growing competition in exports in the new world, understanding this as not only Chile, Argentina or Brazil, but also South Africa, Australia, New Zealand, Russia and China, "countries that can become great producers, as is the case with the United Kingdom, which is already producing its own wine in its more than 100 wineries," Tamames warned.

He also mentioned the millions that are being invested in the sector, indicating that one of the problems with these investments is defective marketing, "as we must also invest in promotion, logistics and we must learn how to penetrate these markets." Tamames also lamented the lack of investment in brands, highlighting a few exemplary cases such as Pingus or Freixenet.

In Ramón Tamames' opinion the current "alarming" export prices must be improved, as in 2010 these prices stood at 1.09 Euros per liter, which drops to 30 cents a liter in the case of bulk wine. These costs, he added, "are completely intolerable and they are the result of an export structure that we must improve." In order to grow, the expert said, we should take note of companies such as García Carrión, leading supplier in Spain and fifth in the world in its activity, Walmart supplier and main exporter to the United States; or Félix Solís, precursor in the establishment of companies in Shanghai and with wineries located in the main wine producing areas, along with Freixenet and Marta Romero, all of whom consider R&D of paramount importance.

Tamames finally warned about China's potential, where Spain has a market share of 6% at an average price of 76 cents, "which can indeed be improved," (France reaches a share of 40% at 3.72 Euros). At this point he also highlighted that our French neighbors are the greatest buyers of Spanish wine, reaching figures of three million hectoliters. Tamames also showed his appreciation for FENAVIN's organization's dedication to the cause.