- Published on Tuesday, 22 May 2012 17:33
- Written by Gemma McKenna
What's more, the road to China is paved with red wine - its red wine sales are set to account for 90% of this growth.
Emerging markets' low unemployment and young aspirational consumers - compared to their mature counterparts, are setting the scene.
Malandrakis admitted that "volatility is a problem with emerging markets, but they're showing growth rates that mature markets would kill for".
In Brazil, red is the most established category with imports from neighbours Chile and Argentina supplying the majority. Meanwhile the Russian market is volatile, thanks to legislative issues coming from the Kremlin, while the Indian market is "non-existent in the comparative sense". However, Malandrakis said opprtunities in India in the medium to long-term are still there and they are massive."
China is storming ahead - primarily for cultural reasons, but also because of the perceived cardiovascular benefits of drinking red wine, as well as a desire to emulate the West, he said. Unsurprisingly French wine is leading the way: "They were smart enough to be there a decade ago," said Malandrakis.
Comparing the BRICs to the West, he said that in the UK, rosé is still doing well, thatnks to its "informal, easy to understand nature". The US is doing "comparatively better" than the UK, and although growth rates are not "skyrocketing", there are signs that premiumisation is coming back, he added.
Internet sales have taken "massive leaps forward" in the BRICs - China sells US$450 million of wine online; Russia $225 million and Brazil $320 million.
Malandrakis said that opportunities exist in mature markets for lighter wines - especially given the surge in obesity - and where retailers take a more relaxed approach, such as Oddbins matching wine to your mood or music.