Viña Montes: loyalty in Japan is hard won, but long lasting
Celebrating 35 years of experience in the Japanese market, what has Chilean producer Viña Montes learned over more than three decades in Asia? db finds out. The post Viña Montes: loyalty in Japan is hard won, but long lasting appeared first on The Drinks Business.
Celebrating 35 years of experience in the Japanese market, what has Chilean producer Viña Montes learned over more than three decades in Asia? db finds out.
Viña Montes Alpha Cabernet Sauvignon and Chardonnay remain the Chilean winery’s best sellers in Japan after three decades, having been launched in the market in 1994 and 1995 respectively.
“Montes Alpha has been surprising Japanese consumers with its ability to overdeliver pleasure, especially when compared with the classic regions already established in the market, namely, Bordeaux,” says Eduardo Stark, EU and Asia area manager for Viña Montes.
Stark notes that among Japanese consumers and industry professionals, Montes Alpha is often “the first wine they enjoyed”.
While this fact fills the team at Viña Montes with great pride, Stark says it also presents a responsibility: “to keep this high quality standard and style consistently”.
Ryo Kasahara is head of the merchandising division for Enoteca Co, Viña Montes' wine importer in Japan. He is confident that Montes has been able to retain its reputation over the decades.
"For over 20 years, Viña Montes has maintained this high standard of quality and communication, which we see as a unique strength," he says. He argues that the winery's consistent efforts over a long period of time have "matched well with the Japanese market".
The journey hasn't been without its challenges. Viña Montes entered the Japanese market a number of years before the Japan-Chile Economic Partnership Agreement (EPA), which came into effect in 2007. The deal led to the gradual elimination of tariffs over 12 years, culminating in a complete removal in April 2019.
"During this 12-year period, the volume of Chilean wine imports expanded approximately fivefold, making Chile the leading country in terms of wine import volume into Japan," Kasahara explains.
Even so, today Chilean wines are still "generally perceived as offering excellent value for money", he says. Between 85% and 90% of Chilean wines in Japan are priced below US$10.40.
Viña Montes is aiming higher. Montes Alpha, priced at approximately US$18 in Japan and "positioned above the usual price range for Chilean wines" has managed to "achieve success in the Japanese market" despite the higher price tag.
This, Kasahara says, is down to the hard work and consistent communication of the winery.
Indeed, "while Japan’s island-nation mentality may contribute to a longer time required to build brand loyalty compared to other countries, once that loyalty is established, it tends to be long lasting," he explains. "The efforts to highlight Viña Montes’s strengths and uniqueness over the past two decades have matched well with the Japanese market."
After making a name for its Montes Alpha range in 1994, the winery released its Montes Alpha M in 1999, competing side-by-side with classic Bordeaux blends from France, Napa Valley and Bolgheri in Italy. Stark says the winery aims to prove to Japanese consumers that Chile can "play a relevant role in fine wine".
Today, Japan is one of the top three markets for Viña Montes wines around the world. Stark describes Japanese consumers as "very discerning" — a factor which continues to motivate the Chilean winery's commitment to the market.
"Today, we are happy to see a good representation of our country’s icon wines in the market. We believe the biggest opportunity comes from growing stronger credentials as a fine wine producing origin," he said.
Viña Montes continues to be motivated to grow its reputation in Japan, its efforts being thanks namely to "its rich culture, the cuisine and the appreciation of quality".
Viña Montes Alpha Cabernet Sauvignon and Chardonnay remain the Chilean winery’s best sellers in Japan after three decades, having been launched in the market in 1994 and 1995 respectively.
“Montes Alpha has been surprising Japanese consumers with its ability to overdeliver pleasure, especially when compared with the classic regions already established in the market, namely, Bordeaux,” says Eduardo Stark, EU and Asia area manager for Viña Montes.
Stark notes that among Japanese consumers and industry professionals, Montes Alpha is often “the first wine they enjoyed”.
While this fact fills the team at Viña Montes with great pride, Stark says it also presents a responsibility: “to keep this high quality standard and style consistently”.
Ryo Kasahara is head of the merchandising division for Enoteca Co, Viña Montes' wine importer in Japan. He is confident that Montes has been able to retain its reputation over the decades.
"For over 20 years, Viña Montes has maintained this high standard of quality and communication, which we see as a unique strength," he says. He argues that the winery's consistent efforts over a long period of time have "matched well with the Japanese market".
The journey hasn't been without its challenges. Viña Montes entered the Japanese market a number of years before the Japan-Chile Economic Partnership Agreement (EPA), which came into effect in 2007. The deal led to the gradual elimination of tariffs over 12 years, culminating in a complete removal in April 2019.
"During this 12-year period, the volume of Chilean wine imports expanded approximately fivefold, making Chile the leading country in terms of wine import volume into Japan," Kasahara explains.
Even so, today Chilean wines are still "generally perceived as offering excellent value for money", he says. Between 85% and 90% of Chilean wines in Japan are priced below US$10.40.
Viña Montes is aiming higher. Montes Alpha, priced at approximately US$18 in Japan and "positioned above the usual price range for Chilean wines" has managed to "achieve success in the Japanese market" despite the higher price tag.
This, Kasahara says, is down to the hard work and consistent communication of the winery.
Indeed, "while Japan’s island-nation mentality may contribute to a longer time required to build brand loyalty compared to other countries, once that loyalty is established, it tends to be long lasting," he explains. "The efforts to highlight Viña Montes’s strengths and uniqueness over the past two decades have matched well with the Japanese market."
After making a name for its Montes Alpha range in 1994, the winery released its Montes Alpha M in 1999, competing side-by-side with classic Bordeaux blends from France, Napa Valley and Bolgheri in Italy. Stark says the winery aims to prove to Japanese consumers that Chile can "play a relevant role in fine wine".
Today, Japan is one of the top three markets for Viña Montes wines around the world. Stark describes Japanese consumers as "very discerning" — a factor which continues to motivate the Chilean winery's commitment to the market.
"Today, we are happy to see a good representation of our country’s icon wines in the market. We believe the biggest opportunity comes from growing stronger credentials as a fine wine producing origin," he said.
Viña Montes continues to be motivated to grow its reputation in Japan, its efforts being thanks namely to "its rich culture, the cuisine and the appreciation of quality". 
