Argentina’s wineries face historic slump as consumption hits record low

Record-low domestic wine consumption in Argentina marks the industry's worst crisis in more than 15 years, accompanied by dwindling exports and low-yielding crops. Expect material downside to producers' revenues and export volumes, increasing sector credit and equity risk and prompting a review of exposures to Argentine wineries and related supply chains.

Analysis

Record-low domestic wine consumption in Argentina marks the industry's worst crisis in more than 15 years, accompanied by dwindling exports and low-yielding crops. Expect material downside to producers' revenues and export volumes, increasing sector credit and equity risk and prompting a review of exposures to Argentine wineries and related supply chains.