1. Value Chain Analyses
for

2. Contents
• History wine production
• Tourism
• Regions
• Grapes
• Exports
• Quality
• Corporate Social Responsibility (CSR)
• Supply Chain
• Stakeholders
• Bottlenecks summary
• Value Chain Map
• Market opportunities

3. History
• XV century start of viticulture with Spanish and Portugese traders
• Cinti region in 1584, registered in Tarija in 1606, followed by 1618 in Samaipata
• Through mining ‘Singani’ became popular against low winter temperatures
• Priest Alejandro Corrado wine exported to Tucuman and Potosi in 1755
• XXth century grape production > 1000ha
• Increasing professionalism in production and distribution now reaching estimated 3000ha
• Sector provides 5000 direct and 11000 indirect jobs

4. Tourism
• Wine route started in Tarija 10 years ago
• New project led by FAUTAPO include
quality certification system for wine
route, increasing tourism

5. Regions
• in 2013 estimated increase to 2700ha (90% area in Tarija and Chuquisaca)
• 50 wineries active in Tarija, of which 33 registration SENASAG (health) and SIN (tax)
• 2200 small family growers in Tarija and Chuquisaca (0,5 - 1ha)
• 260 small size growers (1 - 5ha)
• 100 growers (>5ha)
Bottleneck - large local consumption of grapes and production of singani and artisanal
Bottleneck - small economies of scale resulting in relative high cost prices

6. Grapes
Type of wine" Grape Variety" Quintal (qq)" Percentage (%)"
• Most planted varieties are Moscatel, Table white wine" Moscatel de Alejandria" 28,960" 28.7"
Cabernet Sauvignon and Tannat. Table red wine"
Varietal red wine"
Black criolla grape"
Favorita Diaz"
10,231"
9,197"
10.1"
9.1"
Moscatel is mainly used as base for Varietal red wine"
Varietal red wine"
Cabernet Sauvignon"
Syrah"
8,044"
5,523"
8.0"
5.5"
Singani Table red wine" Grenach" 4,761" 4.7"
Table red wine" Alfonso La Valle and/or Rivier" 4,296" 4.3"
• International quality varieties as Varietal red wine" Malbec" 3,717" 3.7"
Cabernet Sauvignon, Chardonnay,
Table red wine" Cariñena" 3,183" 3.2"
Varietal white wine" Chenin" 2,742" 2.7"
Sauvignon Blanc, Merlot, Syrah, Malbec Varietal red wine"
Varietal red wine"
Merlot"
Tempranillo"
2,569"
2,237"
2.5"
2.2"
and Riesling account for only 22% of Varietal white wine" Ugni Blanc" 1,948" 1.9"
Varietal white wine" Franc Colombard" 1,735" 1.7"
total grapes. This includes some local Varietal red wine" Barbera de Asti" 1,702" 1.7"
yet interesting varieties such as Tannat Table red wine" Cereza"
Varietal white wine" Riesling"
1,296"
1,087"
1.3"
1.1"
(Uruguay) and Torrontes (Argentina) Varietal white wine" Sauvignon Blanc" 1,063" 1.1"
Table red wine" Vischoqueña" 969" 1.0"
Others (includes 18 varieties) " 5,760" 5.5"
TOTAL! 101,02! 100%!
Bottleneck - available grape varieties for exports

7. Grapes
• in 2009 Cadastre registered 539ha table
grapes, 689 wine grapes and 360ha
singani
Bottleneck - local consumption of 10 million liters - limited interest for exports

8. Exports
• Very limited exports, less then USD 50,000 per year (of which large proportion to China)
Bottleneck - limited knowledge and experience with exports
Bottleneck - limited awareness of Bolivian wines in destination countries

9. Quality
• No ISO registrations and limited quality assurance (HACCP)
• Complicated quality registration process (SENASAG)
Bottleneck - no Certificate of Origin without quality registration

10. Corporate Social Responsibility (CSR)
• Large proportion of family growers (limited social requirements)
• Environmental standards are implemented scarcely
• Required training and education to wineries and grape growers
• Alcohol abuse (Singani)
Service to be delivered by Associations
Bottleneck - linking Singani with Wine brands might have negative effect on awareness
and involvement of wine sector

11. Supply chain
• No glass factory - limited local demand
• Imports required for raw material such as glass and cork
• Complicated and lengthy procedures for import
Bottleneck - dependency on import procedures

12. Stakeholders

13. Stakeholders
• Wine Associations (ANIV, AMEVIT,
ASOBOC, AVISA)
• Limited budget, limited awareness,
limited grapes, limited wineries
• Co-operation, co-operation, co-operation
Bottleneck - co-ordination and sharing information between different associations

14. Stakeholders
• Large institutional landscape with individual service providers (IBCE, FAUTAPO, CENAVIT,
SENASAG, IBNORCA, CAINCO, CADEX, CANEB, FTE)
• Some funds available for viticulture, export promotion (CBI, Dutch Embassy, BID)
Wine Sector Platform required to
co-ordinate efforts

15. supporting functions
bso’s donor’s wine bso’s
informing & communicating
grape importers
growers
wineries consumers
dry goods
suppliers retailers
quality control, taxes, permits
ministry of agriculture
rules & regulations

16. Bottlenecks summary
• large local consumption of grapes and production of singani and artisanal wines
• small economies of scale resulting in relative high cost prices
• available grape varieties for exports
• local consumption of 10 million liters - limited interest for exports
• certificate of origin without quality registration
• linking Singani with Wine brands might have negative effect on awareness and
involvement of wine sector
• dependency on import procedures
• co-ordination and sharing information between different associations
• limited knowledge and experience with exports
• limited awareness of Bolivian wines in destination countries

17. Market opportunities
• There are a few EU markets that have potential
• Open consumer opinion; markets that are open to new trends
(UK, Netherlands and to lesser extend Sweden, Denmark and Germany)
• New wine markets; short wine drinking tradition, are open to try new things.
(Poland)

18. Market opportunities
United Kingdom
Netherlands
Germany
Denmark
Relative high production / export prices Sweden
Relative small available export volumes Poland
Bolivian wine focus on (Super) Premium category.
Specialist retail
Horeca

19. Market opportunities - UK
• Retail - 72,5% marketshare - nearly 1 billion liter
• Specialist channel 8,3% market share - nearly 80 million liter
• South American category 10% - approx. 8 million liter
• Potential Bolivia 10% of South American category ?

20. Market opportunities - NL
• Retail - 80% marketshare - 200 million liter
• Big focus on wines below € 4,99 price point
• South American category within Specialist channel 2,5 million liter
• Potential Bolivia 10% of South American category ?

21. Market opportunities - DK
• Retail - 80% marketshare
• Large number of small importers with own specialist wine shops 27% of wines come
from Developing Countries - 10 million liter
• Potential Bolivia 5% of Developing Countries category

22. Market opportunities - Sweden
• Retail - monopoly market (1 buyer) nearly 200 million liter
• No specialist channel available
• Small Horeca market
• Potential Bolivia for a small tender with Systembolaget?

23. Market opportunities - Poland
• New wine market - growing consumption, now estimated 50 million liter
• Specialist channel - nearly 3 million liter
• Potential Bolivia 1% of specialist wine sales ?

24. Market opportunities - Germany
• Large market (50% own production/50% imports) nearly 2 billion liter
• Only 3% of sales > € 5,00 - still nearly 70 million liter
• Potential Bolivia 0,5% of premium category ?

25. Are we late?
• In 2011 total Brazilian exports amounted to 705.000 liter
• Brazilian exports to Netherlands started in 2011: 65.000 liter at $6,30 FOB
• Largest quality international varieties planted:
• Cabernet Sauvignon 1900ha
• Merlot 1000ha
• Moscat 775ha