Axel Vuylsteke: "Wine consumption is declining worldwide."

The company, a world leader in synthetic closure solutions for wines, operates in South America from its plant in San Juan. During his visit to the province, the executive met with representatives of the local wine industry and visited key clients, with the goal of strengthening the company's regional presence and gaining a firsthand understanding of the dynamics of the Argentine market. The agenda also included meetings with the sales office team in Mendoza.

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In this interview, he spoke with Los Andes about the pillars guiding the group's global strategy: sustainability and technological innovation. Since 2021, Vinventions has been producing at its San Juan plant to supply the entire South American market, while Mendoza has established itself as its regional operations center , with offices managing sales in Chile, Peru, and Bolivia.

The company leads the global market for synthetic closures with its Nomacorc line, based on recyclable materials. This technology, combined with oxygen control systems, optimizes wine preservation and reduces risks such as TCA, present in natural cork closures.

- How do you see the business dynamics in Argentina compared to other countries?

Argentina is going through a unique economic situation. In our case, our operations in the country are doing quite well and are producing good results. However, we hope the situation will improve so we can contribute even more to the group. For now, our performance is positive.

- And, for example, until last year, a major problem was product imports. Now, what would be the main component?

- For us, one of the main advantages is that we produce locally in Argentina, which allows us to be close to the market. Although we must import raw materials, having domestic production has allowed us to remain relevant in the country, even in a difficult economic climate. That's why we continue to focus on maintaining our activity and production here.

Regarding our business, the main challenge today is the decline in global wine consumption . There is a crisis in the sector, and naturally, when fewer bottles are sold, fewer closures are used and fewer corks are sold. This is a reality we are already seeing. Even so, we continue to look for opportunities within this challenging market because we believe that, even in difficult contexts, there is always room for growth. And we have several solutions to do so.

- What material are the caps produced here made of?

- Our corks are made of LDP, a synthetic material from various sources. One of them comes from sugarcane, a fully recyclable biopolymer with zero carbon impact. This also allows us to offer very good and consistent performance.

Another of our advantages is the ability to offer winemakers options regarding oxygen ingress and control, thanks to the material we use. Our mission is to support producers so their wine reaches the consumer just as they envisioned. Because although the closure may seem like a minor detail, it's actually the final piece and one of the most crucial to the final product.

- Currently, how many wineries buy your product in Argentina?

- In Argentina there are about 300, and we sell around 260 million caps a year.

- Globally, is what you were talking about regarding the decline in wine consumption impacting sales?

- Over the last year, we managed to maintain our volume globally. It's true that the decline in consumption was felt more in markets like the United States, but we managed to hold our own in other regions. Even in Argentina, we grew by more than 15%, which allowed us to maintain our market share. Even so, we are aware that the context remains challenging.

- In terms of projections, what are your views on sales in Argentina this year or in the first half of the year?

In Argentina, we project growth of 5 to 7% compared to last year, although that depends in part on how consumption evolves. With such a high market share, close to 35%, our growth prospects are closely tied to the overall performance of the industry. If the market grows, we will support that growth; if it remains stable, we still see room to gain market share, especially through new customers. So far this year, the first four months have shown a slight positive trend, which is encouraging.

- And globally, how is the industry taking this sustainable proposal?

- Globally, we're defending our market share, even growing with a fairly stable volume in an industry that's declining. We're defending ourselves primarily because we have a solution, a product that solves a problem. An economical, sustainable, and high-quality solution. So yes, we believe we're gaining customers, even in fairly large wineries, whether in Italy, Spain, France, or around the world.

- What added value do you offer besides being sustainable?

The most important thing is that we have a high-quality product that can assure winemakers that their product will turn out as intended. If you look at other cork-based products, for example, you have the problem or risk of TCA (trichloroanisole) in wine, a defect that causes an unpleasant odor and taste, often described as "cork taint." The resulting wine is not good, and that's the biggest advantage we offer. At a good price, too, given the technology we use.