Spain's worthy reinforcements
By Wine Atlas, Saturday 25 June 2005 :: Wine - Spain :: #2 :: rss
Five years ago, I predicted here that Spain would enjoy dramatic gains during this decade in consumer appreciation of its wines.
This prediction is faring quite well at this point, but Spain must now respond to a major new challenge.
In 2004, total Spanish wine sales in the United States were 72 percent higher than in 2000, according to U.S. Department of Commerce figures. A major obstacle has arisen, however, in the form of a steep decline in the value of the dollar against the euro. This has inevitably translated into higher shelf prices for all European products. Particular Spanish wines that looked inexpensive a couple of years ago now look notably less affordable.
Even with the price increase, though, the value offered by Spanish wines has not necessarily decreased. Quality continues to rise at an impressive pace across many growing regions such as Rioja, Ribera del Duero and Toro. But that is not the end of the issue. Since continuing growth requires that new consumers be attracted to Spanish wines, and because newcomers tend to be more price-sensitive than devotees, the question for Spain is clear: As these regions' wines increase in price, will other regions fill the breach and offer attractively priced alternatives?
By Michael Franz
Special to The Washington Post
Source : azcentral.com
