Required Report - public distribution

**Date:** 6/15/2005

**GAIN Report Number:** AR5019

AR5019

**Argentina**

**Wine**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Robert Hoff

U.S. Embassy

**Prepared by:**

Francisco Pirovano

**Report Highlights:**

The CY 2005 crop is of lesser quality than the previous three crops as a
result of an excess of rain just before harvest. The Argentine wine
industry continues to grow locally and internationally. Locally, more
people are adopting the habit of tasting and storing wines.
Internationally, the Argentine wineries and their wines are more and
more known in the world. Exports have increased every year. The typical
Argentine Malbec variety achieved export sales for US\$48 million in CY
(Calendar Year) 2004. Imports have been negligible due to the high cost
of imported product and the inroads made by quality Argentine wines in
domestic consumption.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Buenos Aires \[AR1\]

\[AR\]

# 

# 

# 

# Table of Contents

# 

[**Table of Contents 2**](#table-of-contents)

[Section I. Situation and Outlook 3](#section-i.-situation-and-outlook)

[Production Areas 3](#production-areas)

[Planted Area 3](#planted-area)

[Production 3](#production)

[**Grape Production 3**](#grape-production)

[**Wine Production 4**](#wine-production)

[**Must Production 5**](#must-production)

[Consumption 5](#consumption)

[Trade 6](#trade)

[Factors Affecting Industry Structure
7](#factors-affecting-industry-structure)

[Section II. Statistical Tables 8](#__RefHeading___Toc106525034)

#   {#section-4 .unnumbered}

# Section I. Situation and Outlook

# Production Areas

Fifteen out of the twenty-four provinces in Argentina produce wine.
However, only two stand out as the largest wine producing provinces in
Argentina. The traditional provinces of Mendoza and San Juan cover 90
percent of the total area planted with grapes in Argentina. The three
northern provinces of Salta, La Rioja and Catamarca cover six percent of
the planted area which is the main given to the production of wine
grapes. The Torrontes variety is mainly produced in that region. Another
region that is gaining importance as a wine producing one, is composed
of the valleys of Neuquen and Rio Negro located in southern Argentina
(Patagonia) which cover two percent of the planted area. The remaining
two percent is shared by the provinces of Misiones, Buenos Aires,
Cordoba, Santiago del Estero, San Luis, Chubut, Tucuman, La Pampa.

# 

# Planted Area

Total area planted with grapes in Argentina reached 210,000 hectares in
CY 2004. In the last three years area planted to grape has increased at
an average annual rate of 2 percent. Planted area to wine grapes was
198,000 hectares, 94 percent of the total grape planted area. The rest
corresponds to table grapes and raisins. By mid CY 2004, red grapes
covered 42 percent of the total wine grape area, rose grapes followed
with 34 percent of the area, and white grapes covered 24 percent. Since
CY 2000, planted area with white and rose grapes has declined annually
around 4 percent each, while red grape planted area has increased by 20
percent. If compared with 1990, red grapes area has doubled from 42,000
hectares to 84,000 hectares, white grapes area has decreased from 60,000
hectares to 47,000 hectares and rose grapes area has follen from 100,000
hectares to 66,000 hectares.

This trend seems to be consistent with the change undergone by the whole
Argentine wine industry, where domestic consumption of table rose wine
has decreased, and domestic consumption and exports of red wine have
increased in the past fifteen years.

High quality red varieties account for most of the increase. For
example, the planted area to Malbec variety went from 10,000 hectares in
1990 to 20,000 hectares in 2004. The same happened with Cabernet
Sauvignon (2,000 to 15,000 ha), Syrah (600 to 8,000 ha), Merlot (1,000
to 7,000 ha), and Bonarda (12,000 to 16,000 ha).

# Production

## Grape Production

CY 2005 crop is expected to reach 2.7 million metric tons (MT) five
percent higher than CY 2004 crop as a result of the expanded planted
area and higher yields due to unusual summer rains. This unexpected rain
has been blamed for the reduction in quality of the CY 2005 grape
harvest.

The CY 2004 growing season was characterized by good plant health due to
favorable weather conditions, which entailed an increase in grape
production. Also, good weather conditions (dry and sunny) at harvest
implied evenly matured grapes with an excellent alcoholic grade, which
yielded wines of superb quality. Driven by a higher international demand
for premium wines, demand for top quality grapes increased in CY 2004
and so did their prices.

  ------------------ --------------- --------------- --------------- ---------------
  **Grape Production                                                 
  to Crush (MT)**                                                    

  **Kind/Year**      **2002**        **2003**        **2004**        **2005\***

  **Red**            666,217         683,500         860,000         930,000

  **White**          627,214         600,000         643,000         700,000

  **Rose**           814,401         910,000         999,000         1,000,000

  **Others\*\***     49,670          28,269          55,460          70,000

  **Total**          **2,157,502**   **2,221,769**   **2,557,460**   **2,700,000**
  ------------------ --------------- --------------- --------------- ---------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

\*FAS Forecast

\*\* Table grapes and raisins

## Wine Production

Wine categories

In June 2004 the Argentine National Wine Institute issued a labeling
regulation that shifted the way wines are categorized in Argentina.
Since then, wines cannot be labeled as fine or table wines but only
mentioning the color and variety. For that reason, all the statistics
tables in this report have been modified regarding the previous annual
wine report AR4032.

Quantity

Despite higher vineyard yields in CY 2005, wine production is expected
to decline to 14,1 million hectoliters (Hl) as a result of more grapes
sent to crushing for must.

  ------------------ ------------- ------------- ------------ ------------
  **Wine Production                                           
  (HL)**                                                      

  **Kind/Year**      **2002**      **2003**      **2004**     **2005\***

  **White**          5,000,000     6,200,000     7,000,000    6,300,000

  **Colored**        6,704,000     6,300,000     7,500,000    6,900,000

  **Others**         991,000       725,000       1,000,000    900,000

  **Total**          12,695,000    13,225,000    15,500,000   14,100,000
  ------------------ ------------- ------------- ------------ ------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

Quality

After the harvest is completed, the INV assigns an average alcoholic
grade that the wines for that season must not surpass. The alcoholic
grade is the real alcohol content at the moment of the test and do not
takes into account the potential alcohol in that wine.

In CY 2004, the INV fixed an alcoholic level of 13.39 % volume to volume
(v/v) for the wine produced in Mendoza and 13.07 percent v/v for that
wine produced in San Juan Province. Due an excess of rain during the
summer 2004/2005, CY 2005 wines did not reach the alcoholic grade of CY
2004, i.e., for white wines 12.6 percent v/v and 12.8 percent v/v for
wines produced in Mendoza and San Juan.

## Must Production

The governments of the two largest wine producing provinces, Mendoza and
San Juan, signed an agreement in 2004 which established that a minimum
quota of 24 percent of the crush would be left for must production. This
was done in order to keep wine stocks at reasonable levels and at the
same time satisfy a growing international demand for must.

In CY 2005, this rate was enhanced to 32 percent, which will redound in
less grape destined to wine.

There are 25 must processing plants in Argentina. However only 15 of
them have the capabilities to concentrate grape juice and export it. One
liter of concentrate must at 68 degrees Brix is obtained from four
liters of grape juice at 20 degrees Brix. Currently, Argentina produces
organic and Kosher must for the international market.

The quality of the must will be lower in CY 2005 due to unfavorable
weather conditions in the first three months of CY 2005, when it rained
60 percent of the total annual rainfall; most of the crops were infested
with fungi, which reduced fruit quality. Most importantly, the sugar
content measured in grams of sugar per liter, is the basis upon which
the must producing plants pay farmers. The minimum tolerance is 220
grams. In CY 2005 it will be hard to get to that point, thus prices will
be significantly lower than in CY 2004.

  ------------------ ------------- ------------- ------------ ------------
  **Must Production                                           
  (HL)**                                                      

  **Kind/Year**      **2002**      **2003**      **2004**     **2005\***

  **Concentrated**   4,428,335     4,300,905     4,699,549    5,800,000

  **Others**         1,019         76,560        142,437      200,000

  **Total**          4,429,354     4,377,465     4,841,986    6,000,000
  ------------------ ------------- ------------- ------------ ------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

# Consumption

CY 2004 domestic wine consumption declined 10 percent compared with CY
2003 to 11,112,578 Hl. Although now it is more difficult to sort out
consumption of different wine qualities (see new categorization of
wines), looking into the different containers used in the domestic
market allow us to discern the current trend. The five liters jugs and
the one-liter tetra-brick have always been used to market table wine in
Argentina. Fortunately, Argentine statistics identify wine sold by
container or package. Therefore, while domestic consumption of wine in
five liters jugs and tetra-brick fell 18 and 14 percent respectively,
bottled wine (mostly fine and premium wine) increased nearly 5 percent
in CY 2004. It is hard to tell though, how much table wine is traded in
bottles for the domestic market, so probably fine and premium wine
domestic consumption increased even more.

  ----------------- ------------------ ------------------ ---------------
  **Wine Domestic                                         
  Consumption in                                          
  liters per                                              
  capita**                                                

  **Kind/Year**     **2002**           **2003**           **2004**

  **Wine**          23.89              22.80              N/A

  **Others**        0.45               0.70               N/A

  **Total**         32.9               33.68              29.87
  ----------------- ------------------ ------------------ ---------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

# Trade

Overall wine exports in CY 2004 have dropped 16 percent. However, high
quality fine/premium wine exports increased. Although as in the case of
the domestic consumption, it is not possible to distinguish between
table and fine/premium wine exports anymore, looking at the export
value, which increased 27 percent to US\$232 million, it is clear that
fine/premium wines continue on the upswing. Exports of wines identified
by their variety (varietals) increased in CY 2004 16 percent while
sparkling wine exports grew 23 percent in the same period. At the same
time, exports of unidentified (i.e. lower quality) wines dropped 36
percent.

  ------------------ ----------------- ------------------- ----------------
  **Wine Export                                            
  Volumes (HL)**                                           

  **Kind/Year**      **2002**          **2003**            **2004**

  **Wine**           1,219,000         1,827,000           1,529,000

  **Sparkling**      13,476            15,474              18,988

  **Others**         2,278             9,351               5,499

  **Total**          1,234,754         1,851,825           1,553,487
  ------------------ ----------------- ------------------- ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

The United States continues to be the top importer of Argentine wines in
volume and value with purchases in CY 2004 of 237,000 Hl for US\$45
million (in CY 2003 exports to the United States were 146,000 Hl for
US\$32.5 million). The United Kingdom follows with US\$33 million. In
volume terms, Paraguay is the second largest importer of Argentine wine
with 223,000 Hl. However Argentine wine shipments to Paraguay are mostly
composed by low-priced table wine, which value in CY 2004 was US\$11
million.

  ------------------ ----------------- ------------------ ----------------
  **Wine Export                                           
  Values (US\$ FOB                                        
  Buenos Aires)**                                         

  **Kind/Year**      **2002**          **2003**           **2004**

  **Wine**           121,142,000       163,707,000        224,219,000

  **Sparkling**      7,100,000         4,969,000          6,528,000

  **Others**         161,000           474,000            735,000

  **Total**          128,403,000       169,150,000        231,482,000
  ------------------ ----------------- ------------------ ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

Must exports in CY 2004 totaled 723.819 Hl valued at US\$73.6 million,
making Argentina becomes the top must exporter in the world. The largest
market for Argentine must is the United States with US\$42 million in CY
2004. Other important markets are: Japan (US\$7.5 million), the Russian
Federation, Chile and Canada (US\$5 million each).

  ------------------ ---------------- ------------------ ----------------
  **Must Export                                          
  Volumes (HL)**                                         

  **Kind/Year**      **2002**         **2003**           **2004**

  **Concentrate      700,000          725,178            723,819
  Must**                                                 

  **Alcoholic must** N/A              68,898             51,660

  **Sulfate must**   47,000           3,890              6,523

  **Total**          747,000          797,890            782,000
  ------------------ ---------------- ------------------ ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

  ------------------ ---------------- ------------------- ----------------
  **Must Export                                           
  Values (US\$ FOB                                        
  Buenos Aires)**                                         

  **Kind/Year**      **2002**         **2003**            **2004**

  **Concentrate      50,000,000       50,816,090          69,227,280
  must**                                                  

  **Alcoholic must** N/A              4,906,100           4,215,010

  **Sulfate must**   858,000          51,780              183,320

  **Total**          50,850,000       55,773,970          73,625,610
  ------------------ ---------------- ------------------- ----------------

Source: The National Wine Institute (INV --
[www.inv.gov.ar](http://www.inv.gov.ar/))

Imports of wine have remained insignificant after the peso devaluation
in February 2002. In CY 2004 imports were mainly of cava sparkling wine
from Spain.

  ---------------- -------------------------------------- ----------------
  **Import Tariffs                                        **%**
  and Taxes**                                             

  **Import         **Outside Mercousr area**              21.5
  Tariff**                                                

                   **Inside Mercosur area**               0

  **Statistical                                           0.5
  tax**                                                   

  **Export tax**                                          5

  **Rebate**                                              6
  ---------------- -------------------------------------- ----------------

# Factors Affecting Industry Structure

Policy

The Argentine Government passed Law No 25849, which created the
Strategic Plan for Argentine Wine 2020 (Plan Estratégico Vitivinícola
2002 -- PEVI). Article 3^rd^ of this Law, establishes the creation of an
agency that will be in charge of promotin consumption of Argentine wine
locally and internationally. This new agency is called the Argentine
Wine Corporation (Corporación Vitivinícola Argentina - COVIAR). This
year, COVIAR began operations.

Prices

Domestic prices for wine have not remained accessible for most classes
of consumer. Thus, table wine in 5 liters jugs and tetra-brick is losing
competitiveness against beer and other beverages in the range of 0.5
US\$ per liter for the lower-income population, which used to having a
glass or two of wine at lunch. Good quality variety wines cost between
US\$2 and 5 per liter. Within this range, most wineries compete for a
growing market of middle-income people who have increased their wine
consumption over the last ten years. Top quality premium wines are sold
in the average Argentine supermarket between US\$5 and 12 per liter.
These wines are purchased only for high-income people or for special
occasions. Top varietal wine prices increased in the CY 2005 nearly 20
percent in dollar terms regarding CY 2004. This phenomenon has also
occurred with other food products, and is due to the improvement in the
export prices that are automatically transferred to the domestic market.
In CY 2004, overall variety wines export prices increased 20 percent
from an average annual FOB price of US\$1.79 to 2.16 per liter. In this
category are found white and red, table and regional, and sweet wines.

Investments

During CY 2004, foreign investment continued to enter the Argentine wine
industry. Recently, a new winery was opened through a U.S.-Argentine
joint venture. This new winery, is a joint venture between frito-lay and
its Argentine partner Rutini.

[]{#__RefHeading___Toc106525034 .anchor}Section II. Statistical Tables

+---------------+-------+-------+-------+-------+-------+-------+------+
| ###           |       |       |       |       |       |       |      |
| ### PSD Table |       |       |       |       |       |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Country       | ##    |       |       |       |       |       |      |
|               | ##### |       |       |       |       |       |      |
|               |  Arge |       |       |       |       |       |      |
|               | ntina |       |       |       |       |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Commodity     | ###   |       |       |       | (1000 |       |      |
|               | ##### |       |       |       | MT)   |       |      |
|               |  Wine |       |       |       | (1000 |       |      |
|               |       |       |       |       | HL)   |       |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
|               | 2002  | Re    | 2003  | Est   | 2004  | For   | UOM  |
|               |       | vised |       | imate |       | ecast |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
|               | USDA  | Post  | USDA  | Post  | USDA  | Post  |      |
|               | Off   | Est   | Off   | Est   | Off   | Est   |      |
|               | icial | imate | icial | imate | icial | imate |      |
|               | \[    | \[    | \[    | \[    | \[    | \[    |      |
|               | Old\] | New\] | Old\] | New\] | Old\] | New\] |      |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Market Year   |       | 01    |       | 01    |       | 01    | MM/  |
| Begin         |       | /2003 |       | /2004 |       | /2005 | YYYY |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Grape   | 2219  | 2221  | 0     | 2557  | 0     | 2700  | (    |
| Crush         |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | MT)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Begin Stock   | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| (Ctrl App)    |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Begin Stock   | 21270 | 21264 | 0     | 20161 | 0     | 23024 | (    |
| (Other)       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 21270 | 21264 | 20035 | 20161 | 0     | 23024 | (    |
| Beginning     |       |       |       |       |       |       | 1000 |
| Stocks        |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Prod. from    | 12695 | 13225 | 0     | 15500 | 0     | 14000 | (    |
| Wine Grapes   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Prod. from    | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Tabl Grapes   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 12695 | 13225 | 0     | 15500 | 0     | 14000 | (    |
| PRODUCTION    |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Intra-EU      | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Imports       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Other Imports | 20    | 24    | 0     | 29    | 0     | 0     | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Imports | 20    | 24    | 0     | 29    | 0     | 0     | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL SUPPLY  | 33985 | 34513 | 20035 | 35690 | 0     | 37024 | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Intra-EU      | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Exports       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Other Exports | 1450  | 1852  | 0     | 1553  | 0     | 1500  | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Exports | 1450  | 1852  | 0     | 1553  | 0     | 1500  | (    |
|               |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Dom.          | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Consump(Cntrl |       |       |       |       |       |       | 1000 |
| App)          |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| Dom.C         | 12500 | 12500 | 0     | 11113 | 0     | 10500 | (    |
| onsump(Other) |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 12500 | 12500 | 0     | 11113 | 0     | 10500 | (    |
| Do            |       |       |       |       |       |       | 1000 |
| m.Consumption |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| End Stocks    | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| (Cntrl App)   |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| End Stocks    | 20035 | 20161 | 0     | 23024 | 0     | 25024 | (    |
| (Other)       |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL Ending  | 20035 | 20161 | 0     | 23024 | 0     | 25024 | (    |
| Stocks        |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+
| TOTAL         | 33985 | 34513 | 0     | 35690 | 0     | 37024 | (    |
| DISTRIBUTION  |       |       |       |       |       |       | 1000 |
|               |       |       |       |       |       |       | HL)  |
+---------------+-------+-------+-------+-------+-------+-------+------+

+---------------------+------------+----------------------+-----------+
| #########           |            |                      |           |
| Export Trade Matrix |            |                      |           |
+---------------------+------------+----------------------+-----------+
| Country             | ######     |                      |           |
|                     |  Argentina |                      |           |
+---------------------+------------+----------------------+-----------+
| Commodity           | #          |                      |           |
|                     | ##### Wine |                      |           |
+---------------------+------------+----------------------+-----------+
| Time Period         | CY         | Units:               | Hl        |
+---------------------+------------+----------------------+-----------+
| Exports for:        | 2003       |                      | 2004      |
+---------------------+------------+----------------------+-----------+
| U.S.                | 145591     | U.S.                 | 236563    |
+---------------------+------------+----------------------+-----------+
| Others              |            | Others               |           |
+---------------------+------------+----------------------+-----------+
| Paraguay            | 192849     | Paraguay             | 222452    |
+---------------------+------------+----------------------+-----------+
| United Kingdom      | 174867     | United Kingdom       | 198987    |
+---------------------+------------+----------------------+-----------+
| Russian Federation  | 279383     | Russian Fed.         | 154113    |
+---------------------+------------+----------------------+-----------+
| Brazil              | 59326      | Brazil               | 112036    |
+---------------------+------------+----------------------+-----------+
| Canada              | 59777      | Canada               | 73659     |
+---------------------+------------+----------------------+-----------+
| Japan               | 65955      | Japan                | 67336     |
+---------------------+------------+----------------------+-----------+
| Denmark             | 44263      | Denmark              | 60915     |
+---------------------+------------+----------------------+-----------+
| Netherlands         | 33503      | Netherlands          | 55981     |
+---------------------+------------+----------------------+-----------+
| Germany             | 35502      | Germany              | 52009     |
+---------------------+------------+----------------------+-----------+
| France              | 30946      | France               | 29710     |
+---------------------+------------+----------------------+-----------+
| Total for Others    | 976371     |                      | 1032132   |
+---------------------+------------+----------------------+-----------+
| Others not Listed   | 730298     |                      | 289629    |
+---------------------+------------+----------------------+-----------+
| Grand Total         | 1852260    |                      | 1553391   |
+---------------------+------------+----------------------+-----------+

+---------------------+-----------+----------------------+-----------+
| ######              |           |                      |           |
| Import Trade Matrix |           |                      |           |
+---------------------+-----------+----------------------+-----------+
| Country             | #######   |                      |           |
|                     | Argentina |                      |           |
+---------------------+-----------+----------------------+-----------+
| Commodity           | ###       |                      |           |
|                     | #### Wine |                      |           |
+---------------------+-----------+----------------------+-----------+
| Time Period         | CY        | Units:               | Hl        |
+---------------------+-----------+----------------------+-----------+
| Imports for:        | 2003      |                      | 2004      |
+---------------------+-----------+----------------------+-----------+
| U.S.                | 0         | U.S.                 | 0         |
+---------------------+-----------+----------------------+-----------+
| Others              |           | Others               |           |
+---------------------+-----------+----------------------+-----------+
| Spain               | 2042      | Spain                | 1784      |
+---------------------+-----------+----------------------+-----------+
| Chile               | 101       | Chile                | 307       |
+---------------------+-----------+----------------------+-----------+
| Germany             | 207       | Germany              | 454       |
+---------------------+-----------+----------------------+-----------+
| France              | 66        | France               | 240       |
+---------------------+-----------+----------------------+-----------+
| Italy               | 8         | Italy                | 118       |
+---------------------+-----------+----------------------+-----------+
|                     |           |                      |           |
+---------------------+-----------+----------------------+-----------+
| Total for Others    | 2424      |                      | 2903      |
+---------------------+-----------+----------------------+-----------+
| Others not Listed   | 5         |                      | 29        |
+---------------------+-----------+----------------------+-----------+
| Grand Total         | 2429      |                      | 2932      |
+---------------------+-----------+----------------------+-----------+

+------------------------+----------------+---------------+-----------+
| ###### Prices Table    |                |               |           |
+------------------------+----------------+---------------+-----------+
| Country                | ###            |               |           |
|                        | #### Argentina |               |           |
+------------------------+----------------+---------------+-----------+
| Commodity              | ####### Wine   |               |           |
+------------------------+----------------+---------------+-----------+
| Prices in              | US\$           | per uom       | Hl        |
+------------------------+----------------+---------------+-----------+
|                        |                |               |           |
+------------------------+----------------+---------------+-----------+
| Year                   | 2003           | 2004          | \% Change |
+------------------------+----------------+---------------+-----------+
| Jan                    | 106            | 139           | 31%       |
+------------------------+----------------+---------------+-----------+
| Feb                    | 73             | 154           | 111%      |
+------------------------+----------------+---------------+-----------+
| Mar                    | 118            | 142           | 20%       |
+------------------------+----------------+---------------+-----------+
| Apr                    | 80             | 155           | 94%       |
+------------------------+----------------+---------------+-----------+
| May                    | 88             | 150           | 70%       |
+------------------------+----------------+---------------+-----------+
| Jun                    | 81             | 140           | 73%       |
+------------------------+----------------+---------------+-----------+
| Jul                    | 96             | 143           | 49%       |
+------------------------+----------------+---------------+-----------+
| Aug                    | 82             | 147           | 79%       |
+------------------------+----------------+---------------+-----------+
| Sep                    | 65             | 150           | 131%      |
+------------------------+----------------+---------------+-----------+
| Oct                    | 102            | 178           | 75%       |
+------------------------+----------------+---------------+-----------+
| Nov                    | 119            | 140           | 18%       |
+------------------------+----------------+---------------+-----------+
| Dec                    | 134            | 154           | 15%       |
+------------------------+----------------+---------------+-----------+
|                        |                |               |           |
+------------------------+----------------+---------------+-----------+
| Exchange Rate          | 2.9            | Local         |           |
|                        |                | currency/US   |           |
|                        |                | \$            |           |
+------------------------+----------------+---------------+-----------+
| Date of Quote          | 6/10/2005      | MM/DD/YYYY    |           |
+------------------------+----------------+---------------+-----------+