Essay: why chile is attractive to wine industry investors?

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  • Publicado : 30 de agosto de 2012
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Why Chile is attractive to wine industry investors? Is it good for the Chileans?
It is easy for investors of the wine industry around the world to realize that Chile is a country with a powerproject within the industry, mainly due to the comparative advantages, unlike its competitors. One of these advantages is the country's geography, which results in a varied climate and excellent barriersthat prevent risks. This creates an attractive and safe call for investors, it is easy to imagine a successful scenario, with reliable future earnings, and it is difficult to imagine threateningsituations as great as to be able to ruin the business. Chile's geography provides many favorable climates for the cultivation of different stocks of grapes, including some unique ones in the world, such asthe one favoring the Carmenere wine production, which, as stated in the article "Top marks for a highly palatable Paradise" (page 17), would have disappeared from European vineyards in the mid-19thcentury, but was rediscovered thriving among Chile’s Merlot vines 100 years later. With this historic event we can also reaffirm the effectiveness of natural

barriers provided by the geography, whichprotect the crop from pests and other natural disasters. It is also interesting for investors, that Chile is already positioned in the industry, being the eighth largest producer and the fifthlargest exporter of wine in the world according to the article "Wines of Chile represent a world of taste" (page 17). Being already well established in the market, it is not necessary to make many effortsto achieve recognition or trust from customers, it’s enough for people to know that it is Chilean wine for them not to doubt about its quality and this is something that has been achieved with years ofeffort that mean a big step for advanced investors. According to my point of view about the previous point, the popularity of Chile abroad is very important and it is something we should take...
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