Premiumisation to Enhance Chile Spirits Industry: Ken Research


Chile produces inexpensive, fruity and consistent wines because it is a home to near-perfect viticultural conditions. The country has almost 500-year wine making history, and possesses few of the biggest and most efficient wine-producing companies on the planet. Chile has relatively inexpensive labour and land that is well-suited to grow most sought-after international red and white grapes. Spirits are known by different name in different region such as hard liquor and liquor. All variants of spirits are manufactured using distillation, vaporization and condensation processes. Almost all the distilled beverages or spirits consist of more than 10% alcohol. Various spirits available in Chile are vodka, gin, tequila, rum, whisky, brandy, cane, natural spirits and flavoured spirits. Beer, wine and cider are not considered as spirit as alcoholic content in these products is less than 10%.

According to the study “Country Profile: Spirits in Chile”, Chile is one of the major wine-importing nations in terms of supply and manufacturing inexpensive spirits or wines. The country has repositioned itself as a producer of top quality, higher-priced wines over the recent years. All the manufacturing companies in Chile collaborate with huge supply chain and the most leading competitive spirit markets. The spirit products in Chile are desirable in terms of taste, style, varietal composition, crucially and price. Therefore, the country is a mainstream market more broadly for spirits and better than any other spirit or wine-producing country outside of Europe. The country is aiming to re-establish its spirits market with premium and quality products.

The leading players in Chile’s spirits industry are Thai Beverage Company, Pernod Ricard SA, Diageo plc, Bacardi Limited, Gonzalez Byass S.A., Miguel Torres SA, Davide Campari-Milano S.p.A, Distell Group Limited, Brusco Family, Fehrenberg Y Cia Ltda and Lorch. Brandy accounts for a major share in consumption of Chilean spirits market followed by vodka. The leading brands within the Chilean spirits sector are Capel, Johnnie Walker, and Campanario. The major distributors within the Chile’s spirits industry are hypermarkets, supermarkets, department stores, convenience stores, food & drinks specialists, dollar stores, vending machines, e-retailers, on-trade and other general retailers. All the spirits manufactured in Chile use glass, rigid plastics, rigid metal and others packaging materials which are dispensed in the form of bottles and cans.

Chile possesses great wines and there is a great need for premiumisation to drive the spirits market over the next few years. To drive a healthy growth within the spirits industry over the next few years, the industry is implementing a four-pronged approach in terms of boosting international image, sustainable wine making credentials, need for innovative winegrowing approaches and promoting Chile’s viticultural areas.

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Ankur Gupta, Head Marketing & Communications