The main culprit in the drop in sales is the fall in the grape harvest in the Southern region of the country. Compared to last year, the harvest fell 57%. Additionally, the rise in taxes on the products resulted in lower sales.
"With the increase in the IPI and ICMS taxes in a lot of states, taxes now account for 56% to 77% of the product's final price," said president of Ibravin, Dirceu Scotta.
Before federal tax accounted for just R$0.73 per bottle, but now represents 10% of the value of the unit.
Up to 2015, the market fought back the country's economic crisis and sales rose 1.68% in comparison to 2014.
"The strong dollar had a positive impact at first, but with the high tax rate we lost the competitive advantage we had obtained."
Harvesting at the Salton Vineyard in Rio Grande do Sul fell from 15 million kg to 6 million kg this year stated the executive-director, Luciana Salton. "Before the stocks that were problematic ended up being our salvation."
Salton is expected to limit its product line of wines and sparkling wines due to the lack of natural resources. One solution is to launch products using Malbec grapes from Argentina. "Our first importation will be 40,000 boxes."
Despite the problems in the sector, sales for the company in the first half of the year were stable. According to Salton, in 2015, the company had revenues of R$338 million.
Read more at Supermercado Moderno (in Portuguese) Wine Sales Fall
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