It has tough competition. Wine is not among the drinks most in demand by Mexicans, but they want to shorten the distance. In the last five years, its consumption in the country increased from 450 milliliters to 1.2 liters per person per year, according to data from the Mexican Wine Council (CMV). But the figure is far from other producers in the region, such as Chile, where consumption rises to 14 liters per person per year. And even further away from beer: each Mexican consumes around 68 liters a year, according to Cerveceros de México.
With this space to grow and fill more cups, the challenge for the future is to increase production to meet local demand, which has an estimated market value of 2,468 million dollars. The industry in Mexico is young, but it already wants to mature.
Hans Backhoff, president of the CMV and CEO of Monte Xanic, comments that in the last 15 years the demand for national wines has grown in double digits, although current production has not responded to this increase. Hence, in the medium term, the first step is to double the hectares of vines, so that they go from 7,000 to 14,000 and, with this, grow the share of the national product from 30 to 50% of the market.
“There is a natural evolution of wine culture and there are countries that have very long traditions. Mexico does not have this evolution, but we are creating it. Everyone puts a grain of sand, and this is leading us to make better wines, to produce on a larger scale, with lower prices and greater efficiency,” says Backhoff.
There are 14 grape-producing states in the country, where nearly 400 wineries are located that produce 2.5 million cases of wine per year. The objective is that, as demand and production increase, the number of producers also increases with a view to consolidating the sector.
grow with tourism
Another of the big bets is wine tourism: offering experiences that allow travelers to get to know the regions, the wineries and the production of the labels. In Mexico there are six wine routes, two of them in Baja California, to which are added those of Coahuila, Aguascalientes, Querétaro and Guanajuato, while those of other producing states, such as Chihuahua, where some wineries already have their doors open to the public. This arm of the industry, which represents up to 25% of income for some wineries, was hit hard by the pandemic.
Paz Austin, general director of the CMV, comments that the organization is now working on the reactivation of events such as harvests, festivals that are held between July and August. One is even planned in Mexico City for the first half of the year. Producers also plan to link the wine routes, as is the case in the Bajío region.
“Wine tourism is key in several regions, where the economic impact of this activity is very strong. We think that it has to go hand in hand with wine production: a winery cannot exist without wine tourism. Consumers are looking to discover new places and we must be ready,” says Elías Torres, president of the Guanajuato Grape and Wine Association.
The changes to come
With an industry that seeks to consolidate, the wineries are also promoting measures that allow them to compete on price in stores against other countries. For example, they seek to reduce the tax burden for producers. In Baja California, last year, the local government waived the payment of the 4.5% tax on wine, corresponding to the State Tax on the Final Sale of Beverages with Alcoholic Content.
Added to this is the proposal to update the payment scheme for the Special Tax on Production and Services (IEPS), so that this is not calculated by the final price of the product, but by the degree of alcohol contained in each bottled drink, a measure that would apply to all craft drinks.
Jorge Luis Ornelas, director of the Pasado Meridiano winery and president of the Chihuahua Vid Product System, says that taxes raise the final price of wine and make it difficult to compete with imported wines, which reach the market with a lower price due to support. for export in their countries. “Ideally, the IEPS would disappear, it is the only way to compete. We must take it as if it were a food instead of an alcoholic drink. Taxing it based on the degree of alcohol would help us a lot, but the ideal would be for them to consider wine as a food,” he points out.
The CMV also promotes the creation of an Official Mexican Standard (NOM) for the sector, as it now adheres to the rules that apply to all alcoholic beverages produced and sold in the country. “We want a NOM that simplifies everything and that leads us to regulate the commercial part, the labeling part, the technical part and, with this, begin to form a block that protects and promotes Mexican wine as such,” says Backhoff.
The industry does not stop, and there are several wineries that promote the sector based on teamwork and win medals for the quality of their wines at an international level. All with one goal: that Mexican wines have their place on the tables of the country and the world.
