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STATUS QUO

Sergio Correa Undurraga
Agronomist and oenologist from Catholic University of Chile,
finalizing his degree in viticulture and oe nology in France.
He has been technical director of several wineries in Chile, he has
also advised international companies in Europe, Africa, Asia and
America. Creator of hundreds of wines in the world that have
been recognized throughout the planet. His professional career is
crowned by his own brand of sparkling wine “Singular by Sergio
Correa Undurraga”.
Founder of the Cofradía al Mérito Vitivinícola Chile. He obtained
the Knight´s cross of merit awarded by the French government.
Renowned international judge since 1989.
Wines from a long narrow strip

between the Andes and the sea

For more than a year we have been living in which does not imply that they are bad wines,
a chaotic world, due to the pandemic caused but value wines. This includes some younger
by Covid-19 which has affected all sectors and less sophisticated wines, often in pac-
equally, including agriculture and within this, kaging different than traditional glass bottles.
winemaking. This includes boxed containers in different
I believe that this world situation will not be sizes and volumes, cans, and plastic bottles.
resolved in the short term, so we will have to Bag-in-box wines will grow in demand. It is
continue living with abnormal and atypical si- likely that more wines will be offered mixed
tuations. This includes Chile, which is currently with fruit juices and of lower alcohol levels, re-
the fourth country in the world in wine ex- sulting in a new business opportunity not yet
ports and the seventh in production. exploited.
The Chilean wine industry and the wine-con- In the case of Chile, given that the average
suming world experienced notable changes in price of a case of 12 bottles (9 liters) of wine, is
2020, especially in relation to commercializati- only US$27.60 FOB (free on board), it becomes
on, e-commerce having become a permanent very difficult to lower prices. Considering the
change. This offers attractive buying options production costs and the already existing low
and happily Chile is very well prepared. marketing margins, the exporters will be una-
Hospitality consumption continues to be ble to raise prices as the market will not allow
strongly affected, since people are not visiting it. Therefore, I believe that the trend of medi-
hotels, restaurants, bars and cabarets. Today, um and small producers will be to increase
most consumers are staying home, so the the export of bulk wines, given the lower cost
wine industry and their distributors will con- of production. In this market the country will
tinue to sell direct-to-consumer, which leaves have to compete with the large bulk wine ex-
out the face-to-face interaction and the jobs porters from Spain.
that were dedicated to this. This is causing in- As a result, Chilean and worldwide compa-
creased unemployment in this field. nies should not increase the production of
In Chile and the rest of the world, the con- expensive wines, rather they should invest (for
sumer continues to prefer cheaper wines, those with capital) in organic and biodynamic
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