A positive note on a growth market in times of crisis

We intend with this section to share some of the issues that may arise in the wine industry here in Spain with a global focus. Lets start with a positive note: This industry despite the global crisis, which has hit Spain with particular ferocity, has grown in the past year and it may be expected to be continueing doing so.

The food and drink industry is the largest manufacturing industry in Spain and we are among one of the largest producers in the EU. It is non-cyclical sector and has been one of the steadiest industries in the past 20 years. Despite the crises it has kept growing, in terms of turnover , R&D, and employment. 

This industry is the second largest sector on exports, as well accounting for over 40% of all exports in our country. Particularly wine & spirits are the leading export product of the food and drink industry. They represent half of the exports in our country and are increasing; Spain is the second largest wine exporter in the world with 17% of the market share, behind Italy with 22%. We are the country where exports have increased most. Trades increased over 15% in 2010, (exceeded those number in 2011 ).

2/3rds of our trade volume is to EU countries. The highest turnover comes from Germany, UK, US and France. By volume, France, Germany, Portugal and Russia are our main destinations. China, Mexico and Canada have also increased our exports significantly.

Stability and growth especially in foreign markets, are the reasons that this sector is receiving so much attention lately. 

In my upcoming posts I will discuss internationalization options for local Spanish players, and we will share some of our experience obtained in M&A operations in the wine industry over the last years.