Just as we hear that South America is only benefiting from the recession, the Argentinian government announces a $230m fund to assist small producers. So does South America hold the key to future success in the global wine industry?

The New World is certainly giving the Old World a good run for their money during the slump, with the latest export figures indicating that the South American continent has been recession proof thus far. Brazil sparkling wine exports were up 18% in the first three months of the year, Argentina exports were up 15% in volume and 3% in value, and Chile exports were up 21% in March (although value fell by 11% in the first quarter, not helped by the exchange rate).

As consumer budgets tighten, it would seem that some people, who may have spent over €10 per bottle on the more traditional European selections during boom times, are now turning their attentions to South America to benefit from the value on offer under €10. And I’ve no doubt that as soon as things pick up again, we’ll be even better served by this continent.

The aim of Argentina’s latest plans for investment are to help modernise production and increase competition, thus increasing volume (whilst securing the all-important place of small, quality focused wineries) and driving down prices for us. So don’t be surprised if the availability of Argentinian wine in Ireland increases in the coming years – yea!

Whilst the New World wine industry continues to grasp as much global market share as possible, lets not forget the value that can be sought from our European counterparts. In my home, the French Vin de Pays will always be within arms reach.

Statistics sourced from Decanter News.