Rabobank points out “hidden gem markets”

Rabobank has reminded the trade not to ignore emerging markets such as Nigeria and Mexico as attention becomes increasingly fixed on the Far East.

With China, Hong Kong and South Korea attracting headlines all over the world, Rabobank has singled out Nigeria, Poland, Brazil and Mexico as what it terms “hidden gems that have the potential to become important growth markets”.

It adds that, at present, these countries may not represent the largest or most attractive markets and being in the early stages of development may carry more risk.

Nonetheless, early investment in these markets and the building of brand awareness could pay dividends as they offer good prospects for long term growth.

Rabobank explained that Mexico has seen 20% CAGR in wine imports between 2006 and 2011 thanks to a burgeoning middle class; Brazil’s wine market grew 30% between 2007 and 2011 thanks in part to a growing domestic wine industry; Poland is also seeing strong demand for wine and although pricing may remain an issue it also suffers from low corruption rates.

Of them all, Rabobank concedes that Nigeria would require “a much higher tolerance for risk”, but wine imports have grown by 16% in the last three years and there are on-going efforts to stabilise the country.

Coupled with oil reserves and a large population, “Nigeria has a strong foundation for continued economic growth and increased demand for wine,” concludes the report.

Stephen Rannekleiv, Rabobank Food & Agribusiness Research analyst said: “Wine companies are now facing the question of what to do with these four hidden gems. Although they present opportunities, each has a very different market with much uncertainty for traditional branded wine companies.

“Furthermore, along with the opportunities in these markets come risks, and the possibility that the opportunity may not be realised.

“The flip side is that early exposure to nascent markets gives a company hard-won experience and expertise as well as a head start on the competition that will likely emerge as the markets develop. Wine companies that manage these opportunities correctly have a chance at securing long-term profitable growth”.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Regional Account Manager

Scotland, UK

Retail Assistant Manager

The Whisky Exchange

Retail Supervisor

The Whisky Exchange

Retail Sales Advisor

The Whisky Exchange

Retail Manager

Friarwood Fine Wines
SW London, UK

Assistant Manager

Seven Cellars
Brighton, UK

Key Account Manager

MMI Dubai
Dubai, UAE

Head of Supply Chain

Lanson International UK Ltd
London W1, UK

National Account Executive

Home Based working in Central Belt. Glasgow/Edinburgh, UK

Prowein 2018

18th Mar 2018

The City Wine Show

London,United Kingdom
13th Apr 2018

Prosecco Springs

London,United Kingdom
26th Apr 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more