Blow to the wine industry: Bodega Norton went bankrupt

[VINO]

Was surprised to hear that Norton Wines declared bankruptcy today. They have been around since 1895. I wonder how the smaller vineyards are doing.

Golpe a la industria: Bodega Norton se presentó en concurso de acreedores

La noticia encendió las alarmas en el sector vitivinícola, que acumula caídas en las ventas en el consumo interno y en las exportaciones

www.lanacion.com.ar

 

[Uncle Wong]

Was surprised to hear that Norton Wines declared bankruptcy today. They have been around since 1895. I wonder how the smaller vineyards are doing.

Golpe a la industria: Bodega Norton se presentó en concurso de acreedores

La noticia encendió las alarmas en el sector vitivinícola, que acumula caídas en las ventas en el consumo interno y en las exportaciones

www.lanacion.com.ar

Vine biz sounds brutal. That reminded me of a guy I follow on X. He posted some stories about the ups and downs of owning a bodega.

 

[Blockchain]

Vine biz sounds brutal. That reminded me of a guy I follow on X. He posted some stories about the ups and downs of owning a bodega.

Ouch. I met a guy that lived in Mendoza. He thought it would be cool to own his own vineyard. He was extremely wealthy but he said it was a severely money losing operation. I would guess this guy is losing tons of money. $55 dollar bottles of wine is pricey for Argentina. I can't imagine he is doing too much volume.

 

[Bingo]

Vine biz sounds brutal. That reminded me of a guy I follow on X. He posted some stories about the ups and downs of owning a bodega.

This is what you call an expensive hobby. There are some wealthy guys in Napa that also toy around with their vineyard but lose money. Many feel like having a toy project like having your own wine but it is difficult to make money.

There are probably a lot of vendors that got stiffed that were owed a lot of money to in that area. I also wonder how many other vineyards are in the same situation.

 

[lemonade]

What is the profit margins like for the typical Argentinean winery? Anyone know?

 

[Bingo]

I met a winemaker in a restaurant at Don Julio a few months ago. I asked him how the business was and he said it was very difficult in Argentina. He mentioned some of the things in that article. High inflation, increasing costs (bottles, yeast, corks), weakening local demand, difficult export conditions. He said that Argentine wineries make 1/3 of the typical winery in other countries. I was shocked he said only in the 5% to 10% range.

 

[VINO]

Argentina is at a disadvantage with all the taxes. Hopefully after the tax overhaul it will get more competitive.

Argentina’s Vineyard Tax Burden in International Comparison

Explore Argentina’s vineyard tax burden in international comparison and how it impacts the wine industry and producers.

gatewaytosouthamerica-newsblog.com

 

[VINO]

To give you a better idea of how many taxes there are on wine in Argentina. 41.8% in taxes!

This far exceedsthat applied by the rest of the wine producing countries, according to a report by the AAWE and the consultant firm Invecq

Italy: 18%
Spain: 17.4%
France: 16.7%
Chile: 16%

 

[Jenn]

Wow almost 42% in taxes?? No wonder someone told me they were in London and a particular bottle of Argentine wine was cheaper in London vs. BA. But do they not charge export taxes?

 

[GraceHill]

To give you a better idea of how many taxes there are on wine in Argentina. 41.8% in taxes!

This far exceedsthat applied by the rest of the wine producing countries, according to a report by the AAWE and the consultant firm Invecq

Italy: 18%
Spain: 17.4%
France: 16.7%
Chile: 16%

View attachment 10144

42% in taxes is mind boggling!