Price Wars & Excessive Mass Production Threatens Chile's Hold on the Wine Industry

Chile may very well lose its hold on the wine industry, thanks to persistent price wars and excessive mass production. Should Chile's hold on the British wine industry slip, this would further add to the country's economic and political woes.

According to The Drinks Business, Mario Pablo Silva, director of Viña Casa Silva, said that "competitive price wars and excessive mass production have threatened the potential of the Chilean wine industry" in the United Kingdom. The UK is Chile's largest export market.

Currently, Chile is the fourth largest exporter of wine in the world. It comes after France, Italy and Spain. It is currently considered to be the largest New World exporter of wine. 

The United Kingdom currently receives 23% of Chile's wine exports. These figures make up 17% of all value sales, according to figures given by the winery.

Silva said that the Cabernet Sauvignon mass production in Chile is potentially damaging to other markets such as Carmenere. Silva recognizes the brand as one of the most potential of all the brands in the emerging wine market.

Since 2010, Viña Casa Silva has conducted its research into the different territories across Chile, and has identified "excellent potential" for cool-coast wines and the Carmenere variety.

"Chile should be championing Carmenere over Cabernet Sauvignon, which currently has the biggest volume production," he said.

"Chile has to identify its strengths, redefine the category and ensure we are only producing wines of quality," he added. 

According to Silva, UK imports nearly 900 million litres of wine every year. This means that Chile needs to step up its game, and offer its finest wines in order to be deemed a major competitor in the wine market.

Silva's assessment came when Viña Casa Silva announced a new proposal with its distributors in the UK in order to promote its premium wines so as to "ensure the longevity of Chilean wine in the UK."

Silva challenged the Chilean wine industry to focus on premium wines, should they want to thrive and make it big in the wine industry, a report with Harpers says.

The report says that Wines of Chile aims to make the country the leading producer of premium wines by 2020. Silva has been working closely with the Chilean government to ensure that Chilean wine becomes the heart of the Chilean image. He also added that wine makers and the tourism industry must do more in order to communicate the diversity of Chile's wine culture.