| On November 3, 2004, only 36 hours after | | | | even more upsides. “Since the financial crisis, |
| stepping off a plane from Los Angeles to Buenos | | | | we realized that price points are everything and |
| Aires, Daniel Karlin met the girl he was going to | | | | that’s where Argentina wins,” says Karlin. |
| marry. They just got married in July. | | | | With a lower average cost per liter than any |
| In the interim, Karlin, with the help of his wife | | | | other major wine-producing country in the world, |
| Lourdes, started Anuva Wines, a company that | | | | Argentina is growing by leaps and bounds. Not |
| sources, imports, distributes and markets boutique | | | | only have they increased their market share of |
| wines from Argentina for the U.S. market. The | | | | imported wines by 400% over the last 10 years, |
| original impetus for the business came from a | | | | surpassing Chile to become the number 4 |
| simple observation that tourists to Argentina fell in | | | | imported wine by country (behind France, Italy |
| love with Malbec and Torrontés—the | | | | and Australia), but they were the only country |
| quintessentially Argentine varieties—just like | | | | besides Chile to grow in both dollar value and in |
| Karlin did when he arrived. The problem was that | | | | volume when comparing the data of 1st |
| they had virtually no way of getting more of | | | | Semester 2009 to 1st Semester 2008. |
| these rare gems in the U.S. | | | | Argentina’s imports to the U.S. grew over |
| Karlin created a wine club to ship specially selected | | | | 30% in both volume and dollar value. The only |
| wines from Argentina directly to American | | | | other country to come close to those values was |
| tourists who had visited Argentina. They could | | | | Chile, while every other country’s imports to |
| then enjoy these different collections of | | | | the U.S. have fallen dramatically. France is down |
| wines—all hand selected by Karlin and a panel | | | | 27% in value and 11% in volume, Italy 20% and |
| of wine experts and all from Argentina—in their | | | | 7%, Australia 5% in value, and Spain, South |
| homes after returning from their trips. Anuva | | | | Africa, New Zealand and other minor regions are |
| Wines now ships these exclusive wines to 34 | | | | all down as well. Interestingly, the overall wine |
| states in collections featuring limited productions of | | | | market continues to grow in the U.S. for the 15th |
| the classics Malbec and Torrontés and also | | | | consecutive year in addition to the fact that |
| unique varieties like Bonarda and Tannat. Setting | | | | imported wines as a segment are also growing. |
| up this home delivery service, however, | | | | “We think we’re in the right business at |
| wasn’t as simple as Karlin thought it would be. | | | | the right time,” says Karlin. “Malbec and |
| “We spent a lot of money on lawyers to be | | | | tourism to Argentina are very popular right now |
| able to understand how to ship wine to | | | | but we need that trend to continue.” |
| people,” Karlin says with a smile. The alcoholic | | | | So why isn’t everyone jumping on this |
| beverage industry in the U.S. is highly regulated. In | | | | business? Karlin says barriers to market entry |
| addition to Anuva’s shipping service to clients | | | | include proficiency in Spanish, the cultural gap, |
| and wine club members across the U.S., they | | | | wineries without websites, wineries with websites |
| have the only wine-tasting service for tourists in | | | | but with incorrect contact information, corruption |
| Buenos Aires. Anuva also offers in-home wine | | | | and dishonesty, stolen domestic shipments in |
| tastings in select cities in the U.S. | | | | Argentina, poor understanding of label regulations, |
| Karlin grins again when he talks about his | | | | brettanomyces (a bacteria found in older wineries |
| discovery of Julian Cavagnaro’s Viña | | | | creating a “barnyard” aroma and |
| María vineyard. Cavagnaro’s great | | | | flavor—a big problem for some Argentine |
| grandfather immigrated to Mendoza from Italy | | | | wineries) contamination, the ins and outs of |
| and settled their ancestral land in 1891. Now Julian, | | | | international shipping of controlled substances and |
| the namesake, makes a little-known yet | | | | U.S. import law and logistics issues. |
| award-winning, 4000-bottle production, | | | | “Our learning curve was steep and |
| single-vineyard Malbec called Cavagnaro Reserva. | | | | treacherous and we made a lot of mistakes,” |
| “I shared it with some retailers in New York | | | | Karlin says, listing such setbacks as delayed |
| and Los Angeles. They all guessed that the retail | | | | shipments, extra costs, interactions with customs |
| price to be double what we sell it for,” Karlin | | | | officials, and complicated paperwork. Only now, |
| remarks. | | | | after three years of operation, does he feel |
| Because of its success with brands like | | | | ready for his expansion into wholesale. |
| Cavagnaro, Anuva is now branching into the | | | | “We’re getting better with age. |
| wholesale side of the business where they see | | | | |