Mendoza Faces 6.5 Months of Wine Surplus as Domestic Consumption Falls and Exports Become Key

On October 6, the Advisory Council of the Banco de Vinos de Mendoza met to address the current challenges facing the wine sector in the province. The meeting brought together government officials, producers, cooperatives, and winery representatives. The main focus was on the ongoing decline in domestic wine consumption and the need to boost exports to stabilize the market.

According to data presented by the council, wine consumption in Argentina has been falling steadily. This trend is not unique to wine but affects the entire mass consumer market, as confirmed by statistics from INDEC and the Directorate of Economic Research and Statistics. Despite this drop in demand, Mendoza currently holds a total wine stock equivalent to 8.5 months of sales. However, about two months of this stock consists of aging wines that are not immediately available for sale, reducing the effective stock to around 6.5 months.

Council members expressed concern that, given these stock levels, the market should not be experiencing such low prices. They cited information from the National Institute of Viticulture (INV) to support their view that current price levels are not justified by inventory alone.

The council reached a consensus that immobilizing wine stocks is not a viable solution under these circumstances. They warned that holding back wine would only put further downward pressure on grape prices during the next harvest. Instead, they recommended channeling surplus wine into export markets as the best way to balance supply and avoid distortions in domestic pricing.

To support this strategy, the council called on provincial authorities to urgently implement financing mechanisms for pre-export activities, with a particular focus on supporting third-party wines stored in wineries. They emphasized that access to credit for harvest, transport, and production is essential for the upcoming season.

The council also rejected any form of state intervention involving government purchases of wine. Members argued that such measures would benefit only a small number of wineries and would not have a meaningful impact on the broader community of producers.

Representatives from the cooperative sector reported some positive news, noting that foreign buyers have already begun placing orders for Mendoza wines. This development was seen as an encouraging sign that could help stimulate the market. Producers and bottlers present at the meeting agreed with this outlook.

The meeting concluded with several key decisions: to avoid immobilizing wine stocks and repeating past policies deemed ineffective; to actively promote exports as a way to bring order to the market; and to await new export promotion tools from provincial authorities in the coming days.

The Banco de Vinos’ message is clear: in a context of weak demand and low prices, temporary interventions are not the answer. Instead, opening new markets and strengthening Mendoza’s export profile are seen as essential steps for supporting the region’s wine industry through its current challenges.