Wine in Chile

2020 IMPACT

Pandemic and social unrest add up to difficult times for wine sales

Having already been impacted since October 2019 by the social unrest in the country, which left 33% of Chilean supermarkets looted or destroyed, according to the Chilean Supermarkets Association, Chilean wine sales were then further hit in 2020 by the pandemic, which resulted in confinement measures and the closure of on-trade channel outlets. With the restrictions implemented to curb the spread of COVID-19, the off-trade channel also had to operate with limited opening hours and store visitor numbers, with the long lines and fear of infection while purchasing goods in physical stores resulting in changes in wine shopping behaviour, seeing consumers spend less time in stores and therefore having less time for choosing between different wine labels, reducing migration between brands.

Channel shifts represent an opportunity for players

The restrictions and long lines at supermarkets prompted a change in wine distribution. One of the “winners” during the pandemic was the online channel, which experienced strong share growth, with companies hurrying to establish online sales operations through their own websites, such as CCU’s labarra.

“Fresh” drinks trend benefits rosé and sparkling wines

Unlike other types of wine, rosé wine and other sparkling wine showed resilience during the pandemic and were able to register positive sales growth in 2020. Supported by the marketing impetus coming from industry players as well as their versatility in terms of matching with different types of food, offering additional consumption occasions, rosé and other sparkling wine continued to grow, also helped by more women entering the wine market, leveraging increasing global temperatures and the search for “fresher” drinks.

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