The need for internationalization: entry of the Denomination of Origin Montilla-Moriles in the BRIC markets

Abstract

Competition in the Spanish wine sector is today harder than ever. They are new exporters as New Zealand or South Africa, which offer wines with considerable quality wines and low price. Besides the economic crisis, and other factors such as the European aids program to pick vineyards have become Montilla-Moriles area in which it is impossible to create profitability, forcing her to have to reposition the product in foreign markets. Given this new situation, we should mention the role of the BRIC (Brazil, Russia, India and China) countries as an opportunity for the sector because they are emerging potential markets. Thus, the aim of this paper is to determine the best way to introduce the wine in the BRIC area. For that end, the paper is based on a methodology with two parts: a descriptive part supported by a statistics analysis, which describe wine sector in quantitative terms; and a second part, based on a PEST analysis (Bueno Campos, 1993). Because the economic crisis has been one of the key factors that have forced the wine sector to export the product, this study covers the period from 2007 to 2011 (most difficult time of the economic and financial crisis in Spain). Finally, the best country to introduce the wine resulted to be Russia.