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Argentina’s wine industry withers on the vine as consumption hits a record low

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Argentina’s wine industry withers on the vine as consumption hits a record low
News

News

Argentina’s wine industry withers on the vine as consumption hits a record low

2026-03-17 13:09 Last Updated At:13:21

BUENOS AIRES, Argentina (AP) — Argentina’s once thriving wine industry is facing its worst crisis in more than 15 years, with record-low domestic consumption, dwindling exports and low-yielding crops.

Against this sobering reality, hundreds of wine enthusiasts still gathered last week in Mendoza, the heart of Argentina's wine region, to celebrate the annual National Wine Harvest Festival. Attendees watched dance performances, enjoyed live music and voted for the new queen of the Vend Imia festival.

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An employee works in an office above the barrel room at Cuvelier Los Andes winery in Vista Flores, Mendoza province, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

An employee works in an office above the barrel room at Cuvelier Los Andes winery in Vista Flores, Mendoza province, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A dog rests next to wine-shaped structures in the Uco Valley, near Mendoza, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A dog rests next to wine-shaped structures in the Uco Valley, near Mendoza, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A worker carries a crate of harvested grapes at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

A worker carries a crate of harvested grapes at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

Worker load crates of grapes onto a truck at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

Worker load crates of grapes onto a truck at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

A worker serves red wine to tourists during a tasting at the Lagarde Winery in Mendoza, Argentina, Thursday, March 12, 2026. (AP Photo/Rodrigo Abd)

A worker serves red wine to tourists during a tasting at the Lagarde Winery in Mendoza, Argentina, Thursday, March 12, 2026. (AP Photo/Rodrigo Abd)

The festival was marking its 90th year as domestic wine consumption in Argentina plummeted to an all-time low of 15.7 liters (4.1 gallons) per person in 2025, according to the National Institute of Viticulture, or INV. Compare that to 1970, when Argentines consumed as much as 90 liters (24 gallons) per person annually.

Furthermore, 1,100 vineyards have shut down across the country and 3,276 hectares (8095 acres) of grape production have vanished.

Fabián Ruggieri, president of the Argentine Wine Corp trade group, attributes the drop largely to a “sharp decline in purchasing power” that began in 2023. This trend, he said, is most acute among middle- and low-income consumers who traditionally consumed wine on a daily basis.

For Federico Gambetta, director of the Altos Las Hormigas winery, a medium-sized winery in Mendoza, the crisis is exacerbated by a shift in consumption patterns.

“People no longer consume wine en masse,” said Gambetta, noting that consumers now seek “coherence” and a sense of purpose behind their purchase.

While older generations favored high-alcohol, full-bodied wines, younger consumers prioritize other attributes, such as “approachability, freshness and lightness” — qualities typically found in white wines and rosés.

One of Gambetta’s red wines — Malbec Los Amantes 2022 — was recently ranked 41st among the world's 100 best wines. Yet, he notes that starting in 2010 his winery began to modify its wine — once defined by a traditional, heavier profile — to appeal to a new generation of consumers seeking lighter styles.

“Everything has mutated,” Gambetta said. “If you're not dynamic, you're lost.”

The U.S. is experiencing a similar shift as the older wine-focused demographic ages out and younger adults fail to fill the gap. A report by Silicon Valley Bank found that millennial and Gen Z drinkers are spread across more categories and drinking less overall, particularly those under 29.

The international market offers little relief. As the world’s 11th largest wine exporter, Argentina saw its exports fall to 193 million liters (51 million gallons) in 2025 — a 6.8% year-on-year decline and the lowest volume since 2004, according to INV.

Ruggieri notes that exports are being hampered by financing issues, high logistics costs and a lack of competitiveness resulting from external tariffs. While its neighbor and wine competitor Chile enjoys free trade agreements with over 60 economies — often reaching markets like China with tariff rates close to zero — Argentina faces tariffs between 10% and 20% in most markets.

Local producers like Gabriel Dvoskin, owner of the 10-hectare Canopus winery that produces approximately 50,000 bottles of wine each year, also struggles with inflation.

Dvoskin, who exports to 15 countries, with the U.S. as his main market, acknowledges that Argentina’s high production costs and rampant inflation place his wines at a disadvantage compared with international competitors.

“Our inflation makes us a bit expensive,” Dvoskin said. “My equivalent in France has a much lower cost for dry inputs — bottles, corks, etc. — than I do.”

For Gambetta, the current crisis reinforces a key lesson for the industry: product quality is non-negotiable.

“Right now, everything is very delicate, and one wrong step can bankrupt you,” Gambetta said.

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

An employee works in an office above the barrel room at Cuvelier Los Andes winery in Vista Flores, Mendoza province, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

An employee works in an office above the barrel room at Cuvelier Los Andes winery in Vista Flores, Mendoza province, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A dog rests next to wine-shaped structures in the Uco Valley, near Mendoza, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A dog rests next to wine-shaped structures in the Uco Valley, near Mendoza, Argentina, Monday, March 9, 2026. (AP Photo/Rodrigo Abd)

A worker carries a crate of harvested grapes at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

A worker carries a crate of harvested grapes at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

Worker load crates of grapes onto a truck at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

Worker load crates of grapes onto a truck at the Canopus Farm in El Cepillo, Mendoza province, Argentina, Tuesday, March 10, 2026. (AP Photo/Rodrigo Abd)

A worker serves red wine to tourists during a tasting at the Lagarde Winery in Mendoza, Argentina, Thursday, March 12, 2026. (AP Photo/Rodrigo Abd)

A worker serves red wine to tourists during a tasting at the Lagarde Winery in Mendoza, Argentina, Thursday, March 12, 2026. (AP Photo/Rodrigo Abd)

MIAMI (AP) — Venezuelan players danced in the dugout before the first pitch, then pranced past Italy and into their nation's first World Baseball Classic final.

Ronald Acuña Jr., Maikel Garcia and Luis Arraez hit run-scoring, two-out singles in a rapid seventh-inning rally that sparked a 4-2 victory Monday night and vaulted Venezuela into a title matchup against the United States.

Players celebrated in the clubhouse before quickly turning focus to the final.

“A lot of dancing,” Garcia said. “We have to show the world who Venezuela is.”

Before each WBC game, Venezuelan players gather around a drum in the dugout for the tambor, coastal Afro-Venezuelan music and dance. They circle and shake, chant and enchant as they prepare to take the field in their nation's yellow, red and blue.

“That’s us. That’s our country,” manager Omar López said. “That’s winter ball. That’s how we enjoy our baseball.”

And who is tops at the tambor?

“Honestly, I think my cousin is the best dancer,” Garcia said in the postgame interview room, turning to Acuña, who was seated next to him and laughed at his relative's remark.

Eduardo Rodríguez is slated to start Tuesday night against the Americans’ Nolan McLean. Because both teams are 5-1, a coin toss was held earlier Monday to determine the home team, and the U.S. won.

Players avoided discussing the political turmoil between the U.S. and Venezuela.

“We’re here to speak baseball,” Acuña said. “Our country deserves the game tomorrow.”

Venezuela overcame a 2-0, fourth-inning deficit after climbing out of a three-run hole to beat defending champion Japan in a quarterfinal. The Venezuelans reached the championship round for the first time after losing to South Korea in their only previous semifinal appearance in 2009.

In 2023, Venezuela wasted a two-run, eighth-inning lead in a 9-7 quarterfinal loss to the U.S. in Miami as Trea Turner hit an eighth-inning grand slam.

“Baseball gives you these kind of opportunities,” Acuña said. “Life is so ironic.”

Italy, the first European nation to reach a WBC semifinal, had been 5-0 in the tournament and sparked attention with an espresso-sipping ritual after home runs and victory celebrations featuring Italian wine.

But a team with three Italy-born players, a handful of major leaguers and many from the minors couldn't hold a late-inning lead against a batting order that got three straight RBIs from All-Stars as a pro-Venezuelan sellout crowd of 35,382 at loanDepot park roared.

“In three years they are going to take us seriously,” Italy manager Francisco Cervelli said. “I just told the guys that they are the champions of this tournament. ... They revolutionized Italy. They put another sport on the map.”

Italy went ahead in the second when Keider Montero forced in a run with three straight walks, the last to J.J. D’Orazio. Dante Nori hit into a run-scoring forceout against Ricardo Sánchez, the first of six relievers who combined to finish a five-hitter.

Eugenio Suárez's fourth-inning homer off Aaron Nola started the comeback, and winner Ángel Zerpa escaped a bases-loaded jam in the sixth when he threw a sinker on the outside corner past Sam Antonacci.

Gleyber Torres walked leading off the seventh against loser Michael Lorenzen, and Jackson Chourio's two-out single put runners at the corners.

Acuña grounded to the shortstop hole and beat Antonacci's throw from the outfield grass as pinch-runner Andrés Giménez scored. Garcia lined a 2-0 fastball to left, driving in Chourio with the go-ahead run, and Arraez chased Lorenzen when he singled on a full-count fastball.

Daniel Palencia got three straight outs for the save, striking out Antonacci to end the game.

As Venezuelans jumped and screamed, Italy players spent 10 minutes in front of their dugout hugging each other and saluting fans. Team captain Vinnie Pasquantino talked about the millions thought to have watched on television in Italy, where the first pitch was thrown at 1:08 a.m. Tuesday.

“We weren’t successful on the field tonight, but we were successful in Italy,” he said. “And that’s what this is all about.”

AP MLB: https://apnews.com/MLB

The Venezuela team celebrates after defeating Italy at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

The Venezuela team celebrates after defeating Italy at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

The Italy team console each other after losing to Venezuela at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

The Italy team console each other after losing to Venezuela at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Andres Gimenez scores on a single by Ronald Acuña Jr., during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela Andres Gimenez scores on a single by Ronald Acuña Jr., during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela pitcher Daniel Palencia reacts after the team defeats Italy during a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela pitcher Daniel Palencia reacts after the team defeats Italy during a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela Ronald Acuña Jr. (21) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Ronald Acuña Jr. (21) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

The Venezuela team celebrates after defeating Italy at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

The Venezuela team celebrates after defeating Italy at a World Baseball Classic semifinal game, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela catcher William Contreras cheers as Luis Arraez hits a single during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela catcher William Contreras cheers as Luis Arraez hits a single during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela Ronald Acuña Jr. (21) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Ronald Acuña Jr. (21) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Jackson Chourio (1) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Jackson Chourio (1) celebrates after scoring during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Jackson Chourio (1) scores during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Jackson Chourio (1) scores during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Lynne Sladky)

Venezuela Maikel Garcia reacts to first base coach Gerardo Parra (8) after getting on the base during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

Venezuela Maikel Garcia reacts to first base coach Gerardo Parra (8) after getting on the base during the seventh inning of a World Baseball Classic semifinal game against Italy, Monday, March 16, 2026, in Miami. (AP Photo/Rebecca Blackwell)

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