The wines hit the mark in April and rose well above inflation for the month, according to Vinodata. This is a survey conducted by Nicolás Grosman and Andrés López for the Interdisciplinary Institute of Political Economy (IIEP), linked to the UBA and CONICET.
The monthly change in the wine price index (IPV) in April 2023 has reached 21.3% compared to March. That jump far outpaces monthly inflation: Last month, the consumer price index (CPI) rose 8.4%, the biggest increase for a month in 21 years.
The sharp correction in wine prices in April came after two months in which the adjustments were lower than those of the CPI. In March they had increased by only 1.7% and in February by 5.1%.
However, in the cumulative between October 2022 and April 2023, the IPV added a change of 59.2%, while in that period inflation was 46%.
“This suggests a possible seasonal pattern in rebranding strategiesn of prices in the sector (or an acceleration in the rate and/or extent of rebrands),” indicate from Vinodata.
To carry out this survey, approximately 6,000 bottles are monitored which meet certain minimum criteria of continuity in the publication of prices month by month. Moreover, extreme observations are discarded, the inclusion of which could unduly distort the results of the estimates.
More frequent redials
In addition to the jump in prices, another piece of information that explains the impact of inflation is that of last month Over 80% of the bottles surveyed to calculate the IPV recorded increases, against 51% in February and 28% in March.
In April, the simple average price of the labels surveyed exceeded $6,500.
“This may suggest that, in a context of high inflation and slowing economic activity, the wineries have preferred to concentrate the increases on the more expensive labels, where demand is likely to be more inelastic to price changes,” they said.
As regards the types of grapes in the October-April period, the highest price increases occurred in orange (77%) and rosé (64%) wines.while sweet wines were the ones that increased the least (44%).
By province of origin, the greatest increases were observed in wines from Neuquén (68%), Río Negro (63%) and San Juan (62%). Those in Salta recorded the smallest increases (55%), again in the last six months.
By type of grape, the most expensive wines were oranges -a variety of whites that are fermented with the skin of the grape, as if they were red-, with the typical bottle of that variety in $7140. At the other extreme was the price of a bottle of sweet wine $1,263. Red wines average 3,944 pesos.
The price ranking by province of origin is led by the “emerging” group (the average price is at $5,400), followed by Río Negro (nearly $4,500). San Juan ($1,450) and La Rioja ($1,964) wines have the lowest relative prices. Those of Mendoza, the province with the highest incidence in wine production, average $3700.
AQ
Source: Clarin
