Simon Tarmo - Brazil<>Australia

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2010-08-21T03:58:00.000-07:00

about
This site provides a range of articles I have written about the sport business and wine industries in Brazil. Navigate via the side archive menu...

As of May 2010 I am also delivering, in conjunction with Austrade Sao Paulo, a news and information site on key developments involving the 2014 World Cup and Rio 2016 - 2014 Brazil FIFA World Cup & 2016 Rio Olympic Games - News & Opportunities.

contact
TEL Belo Horizonte: (31) 9196 0069 or ((31) 3245 1911
sttarmo@gmail.com

World Cup 2014: just what is going on in Brazil?

2010-07-24T05:13:00.000-07:00

In three years and 10 odd months the 2014 FIFA World Cup Brazil will begin. Quite predictably, the conclusion of the widely acclaimed South Africa 2010 event has already driven a wave of pessimistic Brazil-focused journalism...
...and just plain bad behaviour throughout the world´s sport and international affairs commentator ranks, not to mention by every other half literate football blogger who has seen where Rio is on a map. While Brazil’s chequered history certainly provides some easy targets, what is the real situation 46 months out from the next World Cup?

To begin with, a condemnation: journalists and ‘specialists’ in major events making derogatory comments about the politics and development of a 500 year old country with 190 million odd people is simply not on. It is as if any sense normal, considered commentary goes out the door just because Brazil, sport and FIFA is involved. Furthermore, speaking of FIFA, how the judgement of a sporting body with a bunch of controversies hanging over its own head can be held in such high esteem in relation to massive nation building schemes is beyond me. How about actually ensuring the integrity of the sport you are responsible for rather than making loose, one-dimensional and often arrogant comments about the marginally more important issue of a country´s development, just because you’re holding an event there. It’s alright, people will still watch the Cup even if there are still favelas, crime, poverty, traffic jams and slightly smelly stadium toilets in the country in which it is held. Now let the adults discuss the real issues.

A few days after the 2010 Cup final Brazil’s President Lula made a number of retaliatory remarks to the kind of reports and questioning described above and I say bravo, any president would and should about their homeland, particularly when faced with ridiculous and boorish speculation about their (rapidly developing) nation´s ability to host a major event four years in the future. Lula said, essentially, “do you think we are idiots?.” And that really is it; who are you, what the hell is going on? What possible qualifications do you have to cast dispersions at a place you maybe travelled to once or twice and saw in a few movies? Phrases like “it´s just incredible” and adjectives like “unbelievable” are straight out of prime time, un-researched, inflammatory, current affairs program nightmares that should have their own cable TV comedy channel. Yes, some Brazilian politicians and commentators have also used such phrases and raised such issues and to report this is valid, but only as valid as, say, a southern senator´s belief on anti-abortion laws or the ranting of a pro or anti climate change crusader. If no alternative view is provided, or available, the reports become problematic. Such shoddy, unbalanced work may be tolerable for neighbourhood bully stories but please not for foreign affairs. It’s kind of important.

Oh, but we´re just doing our job, say the journos and commentators. No. A good deal of the recent reports on Brazil 2014 are not respectable journalism but some flimsy babbling based on either straight out ignorance, laziness and/or political ideology. Reporters have been unashamedly using old news and statements, often from months ago, mixed with translated reports from particular bloggers, politicians and fellow biased editorial journalists in Brazil to justify their unsubstantiated criticisms, as if an up-to-date and researched appraisal is just too hard or maybe beyond them. What tripe. Is it too much to ask for some actual coverage of what is going on in Brazil, here and now, rather than massive generalizations and outdated commentaries followed by silly, weak statements like ‘let´s just hope they are fixing all that bad stuff over there’.

Oh, but you don´t have to read it, you say. Sure, great response. Unfortunately you are an opinion maker and, unfortunately, when it comes to Brazil, there ain´t that much in the way of English-language reporting, so the few bits and pieces that get through are always influential. To give you a tip, Brazil´s media sector is strong, multi-faceted, polemical, and while it has its own problems there is still a wealth of information and analysis out there, certainly enough to be able to check the different angles on any given topic, and maybe even some original material. Hopefully automatic Portuguese translators improve over the coming years, but somehow I don´t see that making a big impact.

Having just mentioned Brazil´s media sector, a few more words are called for. News coverage here is plentiful, with many different media sources and alternatives, however a word of warning must be issued. When it comes to its own standing on the international stage, there is a noticeable tendency towards negativity and self deprecation. Blame it on years of corrupt, unstable government, or shame stemming from the country´s many ongoing social problems, or simple, political manoeuvring, blame it on what you will, but the fact remains that there is always a wealth of highly critical commentary and opinions on any given issue involving Brazil´s development and how it compares with the rest of the world. A good thing, no doubt, but that is only in an environment of balanced reporting, where alternative views and objective information can be found, as they always can be, even if the negativity tends to win the day more often than not. With this in mind, it is not difficult to see how international media develops a pessimistic tone when it comes to Brazil, even if that does not make it right.

To offer some type of counterbalance, based on a couple of years of living here and researching the 2014 World Cup, the ‘real’ situation in Brazil 46 months out from the event is that, sure, the country is probably a bit late on a few fronts, but ‘bit’ and `few` are the operative words, considering there are a bunch of things to take into account other than just the ‘ideal’ timeline that the gods at FIFA have set and a good portion of the world’s media seems intent upon worshipping. As these such vital preparations for a sporting event unfold, presidential and state government elections, both considered reasonably important, are also approaching, while other little things like national disasters, corruption, sustainable development, favela crime and some other such issues are also to be taken into account. These are Brazil’s problems and realities and it is dealing with them in its own way, while also organising the 2014 World Cup.

Indeed, much of the tardiness currently affecting a number of Cup preparations is directly linked to the very noble cause of overcoming corruption still lingering from days and political systems gone by. Brazilians, due to a factor closely linked to the negativity mentioned above, are now so very intent on transparency and due process that the country´s resultant overly-bureaucratic government takes a quite a while to get things done. In an ironic twist, this sluggishness recently prompted President Lula to controversially preside over a legislation change enabling quicker tender processes and negotiations involving Cup preparations. Naturally, the opposition and national media have reacted with all kinds of warnings about collusion and conspiracy, but why the hell should that be of interest to you, international opinion maker, as long as the 2014 World Cup goes off without a hitch? Who cares if there are a few backhanders along the way, that’s not the big issue is it?

To address some real issues, then, reports claiming that just about every 2014 Cup project in Brazil is behind schedule are not only wrong but incredibly stupid. There are an unprecedented twelve World Cup host cities for Brazil 2014; that’s twelve city councils, twelve state governments and, thankfully, just the one federal government, all working together to get a bunch of things done by an immovable deadline while also representing Brazil´s 190+ million residents. I don’t know about you, but that sounds like a %$&# fight to me, no matter where you are in the world, excepting maybe Monaco or Singapore, or North Korea for different reasons.
Apart from this unavoidably scary organisational structure overseen by a plethora of competing interests, there´s also the matter of five or six key areas of preparatory works incorporating hundreds of projects of various shapes and sizes, most requiring multiple funding sources, construction stages and regulatory approvals. (I know, why don´t they just build the damn things and be done with it...).

So, amongst all this really complicated stuff and more Brazil has reached the 46 months to go mark and, apparently, everything is behind schedule. All of it. Not only would I like to meet the person who researched each one of these projects and determined the ideal versus real timelines based on previous major event experiences, but I´d also like to see their credentials, including maybe an MBA in delusional thinking and a Masters in divination.

Such a person might, in fact, be interested to hear that the apparently massively successful Soccer City stadium from the Cup just gone, or Allianz Arena in Munich for Cup 2006, or the Sydney 2000 Olympic Stadium, or a whole bunch of the world´s greatest sports facilities, all took around two and a half years from ground breaking to opening. Whoa, Nellie. That means, hang on, two and half years is like 30 months, and Brazil has 46 months, leaving, ah 16 months difference. OK, so FIFA wants a December 2012 deadline, 19 full months before the 2014 Cup, but that seems a bit silly don´t you think, particularly considering the successful stadia mentioned above opened between eight and 15 months from their respective opening ceremonies. No, are you sure? Now I´m no major events guru but combining that revolutionary research with the fact that a host of Brazil’s 12 stadia projects have already started and the remainder are scheduled to begin ASAP, while also keeping in mind that all three of the major events mentioned above were considered grand successes, and you might just think that Brazil still has a reasonable chance. Sure, meeting FIFA´s enlightened December 2012 deadline, which would allow all twelve stadia to compete to host those all important Confederations Cup 2013 matches, might be a touch and go proposition from here on in, but hey, nobody´s perfect.

OK then, there will be time, there may be time, you say, but has the work really started and will it be, you know, OK? This is Brazil after all. Harking back to the misinformed critics, you will find that most commentaries over the last few weeks have delighted in the fact that “substantial work on stadiums has yet to start” and that many projects haven´t even left the paper. Thanks for the update. Addressing the first point, work, as ‘unsubstantial’ as it is, is indeed already underway on four of the stadia and no, that’s not just a few council workers taking sledgehammers to the old toilet blocks but actual construction companies, some are even multi-national consortia, which have won proper tenders and are now on site. Of the others, all but two of the projects are ready and for these either the selected builders are awaiting final government go ahead (damned transparency, again) or the tender process is still in motion, with start dates set for the near future. Of the remaining two, the Curitiba stadium upgrade has just overcome some political snags to confirm its place in the 2014 Cup and things should be full steam ahead from here, although as the simplest and cheapest of all twelve projects there is every chance it will still be the first ready. The final and probably most important host city project is the one big problem, but we’ll get to that in a second.

For the eleven projects described above the local organising committees are still predicting their original and you might say overly-optimistic FIFA deadlines of December 2012 will still be met, so, we might at least get one or two ready by the end of 2012, with a few others trickling in during 2013. Hell, they all might even be ready on time, no really. Whatever the actual outcome, it is ridiculous to already be suggesting, as is currently in fashion, that four of the projects will be cut or there´ll be paint still drying everywhere come June 2014, in 46 months time, a worst-case scenarios which, even so, still leaves over 12 months available for Brazilian stuffing around.

To get to the one major stadium problem, Sao Paulo, the Southern Hemisphere´s largest city with a greater metropolitan population around that of Australia, continues without a facility worthy of hosting even a first round World Cup finals match, an extraordinary fact in itself given it is currently the planet´s tenth richest city and could be the sixth by 2025 behind Tokyo, New York City, Los Angeles, London and Chicago. Bewilderment aside, the dilemma is again largely based on politics, those of both football and public office, and it is really quite difficult to imagine a city in the ranks of those mentioned above not, when push comes to shove, coming up with a solution and in 46 month´s time hosting some of the 2014 Cup´s key matches or even the opening ceremony, for which it is currently out of the running. News is breaking every day about this issue and just this week President Lula heaped some significant pressure on the Sao Paulo government to come up with a solution; definitely something to watch very closely over the coming months.

Besides stadia, which are the most media friendly measures of readiness but are ultimately less crucial to Brazil´s preparations than more general infrastructure works, the concept of being late or behind schedule can only be considered in relation to the country´s status as a developing nation. The B in BRIC, Brazil is (for the moment) behind developed nations on many fronts and that has certainly made its 2014 World Cup preparations all the more important but it has also made them all the more complex and ambitious. With a record 12 World Cup host cities to be used, Brazil has aimed high and committed to massive improvements on a scale unheard of for any previous event anywhere in the world. Yes, airports are not up to scratch right now, yes, urban transport systems leave a lot to be desired, yes crime and security are big issues, but the big promise to make major improvements has been made and the wheels are definitely in motion, two quite commendable achievements in their own right.

More specifically, earlier this week the final two parts of a R$20+ billion financing agreement were enacted by the three tiers of government. As mentioned briefly above, this arrangement, called the Matrix of Responsibilities, covers dozens of World Cup infrastructure projects across airports, ports, urban mobility, hotels and stadia, many of which have already started. The unprecedented agreement has of course taken some time to nail down, and while it would have been great to have finalised it sooner (ideally a few weeks after it won the hosting rights), it could also be said that Brazil has done well to reach such a position within a realistic timeframe to meet its lofty targets of December 2012 for stadia and June 2013 for everything else. These targets remain in place and, similar to the stadia situation already mentioned, many have either left the paper or a close to a start date. While some may well run into troubles and be pushed closer to the June 2014 Cup opening, does it really seem, taking everything above into account, like things are in such a bad state for Brazil 2014?

At the end of the day, the 2014 World Cup has already mobilised massive amounts of cash and political will to address many of Brazil´s most critical problems, a situation that simply would not have arisen, at least not on such a scale, without the pressure of having to host the greatest show on Earth. As Brazil now begins its first steps under the full glare of the World Cup spotlight, there are plenty of reasons to feel it will come out on top come 2014, or at least put in a strong performance with just the odd hiccup, which would still be a great result for a country with so much already on its plate. Either way, with the country finally shaking off the shackles of its oft-disheartening past, it is sometimes difficult to understand why foreigners and locals alike continue to be so pessimistically one sided when it comes to analysing Brazil’s chances.

By Simon Tarmo
Belo Horizonte, Brazil
Simon Tarmo is an Australian journalist who has been living in Brazil since 2007. He is currently based in Belo Horizonte, but has also lived in Sao Paulo and travelled extensively throughout the country. Simon is involved in a wide range of activities involving Australia-Brazil relations, particularly regarding the sport business and wine sectors. He speaks fluent Portuguese and has a strong network of contacts throughout the country. sttarmo@gmail.com

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2009-11-20T12:18:00.000-08:00

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About Simon Tarmo

Upon graduating from the University of Sydney with a Bachelor of Economics, Simon immediately moved into the world of specialised business journalism and now has over ten years experience as a reporter and chief editor.

He currently writes for a variety of titles in a range of areas including Meininger's Wine Business International, Major Events International and Portal 2014 (Key website covering the Brazil World Cup 2014).

As a resident of Brazil with advanced Portuguese skills, Simon is able to deliver premium English translations that reflect both the content and style of the Brazilian Portuguese versions.

Wine Articles

2009-11-20T12:15:00.000-08:00

Casa Valduga - A Sparkling Star from Brazil
(Meininger's Wine Business International - December 2009 Edition)

Joao Valduga is in front of 11 foreign journalists presenting an elite selection of Casa Valduga wines. He is, in every sense, standing right behind these sparkling and still offerings, all produced in the heart of Brazil's most distinguished wine region, the Vale dos Vinhedos (Valley of the Vines), nestled in the Serra Gaucha mountain range in the far south of the country. As the tasting unfolds and the group of mainly Europe-based journalists sniff, sip, gargle and spit their way through the winery's eight best examples, Joao, the winery's director of enology, remains on foot, pacing back and forth and scanning every face for telltale signs of approval, insight, frustration or disappointment. True to his enthusiastic yet focused manner, he requests or more so demands comments - good, bad or ugly - on every wine, and although communication is at times difficult, with Joao understanding some English but speaking little and the majority of the journalists not familiar with the Brazilian Portuguese of the region, the general consensus in the room soon becomes clear: there are some serious wines here and Casa Valduga is a serious winery.

This is no small thing for a Brazilian producer, particularly one without any foreign involvement; Casa Valduga remains 100% family-owned and, not counting some of their premium winery technology imported from Italy, has relied purely on its own resources and expertise throughout the winery's history (unlike a number of Brazil's other top wine producers, which have in recent decades opened their doors to significant foreign investment and influence).

The Casa Valduga story began when the Valduga family made the move to Brazil in 1875, direct from the town of Rovereto in the Italian provence of Trento, as part of a strong wave of immigration from the north of Italy to Brazil's south at the end of the 19th century. Overall, between 1875 and 1900 more than one million Italians moved to Brazil's southern states, which are now home to over 25 million Italian-Brazilians, the largest number of full or partial Italian descendents outside of Italy.

Amongst the first Italian families to arrive in the region, the Valdugas helped settle the area that is now the Vale dos Vinhedos, which had not previously been inhabited, and they also planted some of the valley's first vineyards, albeit with non-noble vine stock that has long since been replaced. Nowadays, there are 31 wineries spread amongst the valley's 82 square kilometres, with around 2,100 hectares of vineyards, 42 hectares of which are owned by Casa Valduga.

In terms of location and conditions, although the valley is certainly not the most naturally advantageous wine region in the world, it is definitely one of the best spots in Brazil, with the hilly, winding topography offering a range of interesting sites and microclimates. The region is in Brazil's southern-most state, Rio Grande do Sul, on the 29th parallel south, 120 kilometers north of Porto Alegre, the state capital, and around 450km from the Uruguayan border. Vineyard sites are at an altitude of between 450-650 metres, while the climate is mild, subtropical and damp, with some frost in colder years, although the threat of hailstorms during summer is a bigger issue.

Notwithstanding these challenges, the Vale dos Vinhedos has developed into a worthy wine region and this was recognised in 2001 when it achieved Brazil's first and only protected Geographical Indication. In keeping with its pioneering history, Casa Valduga played a central role in the successful movement, and is also a key figure in an ongoing push to go one step further and attain a DOC for the valley, once further development and improvement of valley vineyards and winemaking facilities has reached the required levels.

It is perhaps this proactive position that says most about Casa Valduga's philosophy and plans for the future, both in Brazil and on the world stage. The winery is currently run by brothers Erielson, Juarez and João Valduga, all of whom work hard not only to develop the credentials of Casa Valduga, but also those of the Brazilian wine industry as a whole. Amongst other things, Juarez was the first president of the Association of Fine Wine Producers from the Vale dos Vinhedos (APROVALE), an umbrella body formed in 1995 with the aim of creating a spot for the valley on Brazil's rather crowded tourism map. Joao, on the other hand, has been very active in the Institute of Brazilian Wines' promotional program Wines from Brazil, which aims to forge an identity for national wines both domestically and in key export markets.

Despite this outward focus, Casa Valduga recognises that its own vineyards and winemaking facilities are of paramount importance. The winery currently produces 1.1 million litres of wine per year, split 50/50 between sparkling and still. On top of the 42 hectares of vineyards in the Vale dos Vinhedos, Casa Valduga also has 132 hectares in the Encruzilhada do Sul region, about 200km south-west of the valley.

Although not common in Brazil, where over 70% of all production is cheap table wine made from non-noble Vitis Labrusca grapes, all of Casa Valduga's vines are Vitis Vinifera, with the winery squarely focused on the production of fine wines. Furthermore, following a major conversion project in 2000, all vines are now from imported and certificated stock and receive refined cultivation techniques, productivity control and selective harvesting. An example of this commitment to quality fruit was displayed in 2008 when the company imported R$400 thousand (US$ 235 thousand) worth of merlot clones from France.

In terms of the Casa Valduga winery and production facility, significant investment in technology and equipment in recent years has resulted in one of the most modern of its type in South America, including what was Brazil's first enotourism complex. Called Villa Valduga, the complex includes a bed & breakfast style hotel, a thematic garden, wine education facilities and two of the region's best restaurants and was further upgraded over the last two years at a cost of over R$ 1 million (US$ 585 thousand). The complex currently receives around 70,000 visitors annually from the 150,000 that visit the valley, both relatively low numbers that the winery hopes to address over the coming years with more national media coverage and promotions.

Added to this, in 2003 Casa Valduga created a new non-wine business called Casa de Madeira, based just one kilometre from the main winery, producing natural fruit juice and preserves. Initial results have been very promising, with 100% annual growth, albeit from a small base.

As for the wines, Casa Valduga has an extensive range incorporating a number of price brackets and brands, including a series of special editions that are made only in exceptional years; the latter evidence of Casa Valduga's pursuit of excellence when possible and belief that its vineyards can produce top quality fruit, while also acknowledging the growing regions' limitations in terms of consistency.

At this top end there are the Grand Reserve and Premium lines, while in recent years Casa Valduga has also developed a unique range of wines called Mundus, which are elaborated from grapes grown in Argentine and Chilean vineyards. At the lower end there are the Duetto (various blends, each of two varieties), Arte and Naturelle ranges. The winery also has two rosés marketed separately under the Amante Rosé line, a special varietals range called Identidade (Identity) that allows buyers to customise the bottle labels, a new category of kosher wines aimed at Brazil's Jewish community, as well as brandy, grappa and liqueur offerings.

Despite this comprehensive selection encompassing a wide assortment of styles and varieties, it is ultimately Casa Valduga's sparkling wine that is the backbone of the brand, in terms of quality, consumer recognition and sales. The winery prides itself on devoting special care to its 'espumantes' and this has resulted in a number of critically-acclaimed wines that have won over 100 medals and trophies at key events around the world. Casa Valduga has also been very successful in promoting this devotion to sparkling wines and their ensuing quality, plus the fact that it was one of the first Brazilian wineries to develop and use the champenoise method, and is now recognised as one of the, if not the leading Brazilian sparkling wine brands.

The winery is planning even bigger things for the future, aiming to take advantage of a booming domestic market: sales of national sparkling wines have been growing at over 20% per year since 2007, while imported equivalents are on the decrease. Illustrating this investment in the future is the winery's sparkling wine cellar, an impressive chamber over 150 metres long located under the main production and bottling facilities. With a capacity for 6 million bottles, it is currently only around 25% full (this varies depending on when lines are released - the top end remains for up to 72 months), but Casa Valduga's rather ambitious expectation, particularly in a country not yet fully switched on to wine drinking, is to reach full capacity in around 10 years.

Part of the strategy to reach this goal was unveiled in 2008 when Casa Valduga established a new company called Domno. In a move aimed at expanding the company's selection in it's traditionally strongest category, while also safeguarding the name and image of its existing methode champenoise-produced selection, Domno has been created to produce wines made exclusively by the "charmat" method. The business, which is being run by Joao, was established with a R$10 million (US$5.8m) investment, including the purchase of a former facility of Pernod Ricard's Domecq brand in Brazil.

Performance wise, Casa Valduga grew 12% from 2007 to 2008, however the ongoing success of the Casa Madeira brand and new Domno business has contributed to a forecast 30% growth rate for 2008-2009. Although financial figures were not supplied, a 2005 research report by Brazil-based researcher Miriam Aguiar estimated that the company had revenue of US$6.4 million for the year 2004-2005, on production of 750 thousand litres, suggesting that the current 1.1 million litre production figure would have the company around the US$10 million mark.

Beyond the winery, Casa Valduga takes a disciplined approach to marketing and promotion, aiming once again to reinforce the brand's credentials as a premium, fine wine product, at least in the domestic market. Distribution is restricted to specialist shops, gourmet supermarkets, hotels and restaurants, avoiding the Brazilian supermarket sector, which has a mediocre reputation in terms of the selection and presentation of wine. Despite the noble intentions, this distribution mix may be an area to re-examine, as although recognition is high in the wine industry itself, more needs to be done to market the brand to Brazil's emerging middle class and help grow wine consumption in the country (currently very low at less than 2l per capita).

Internationally, while only exporting 10% of its wines, the majority to the US and a number of European markets, moves are underway for expansion, principally, as part of its key role in the Wines from Brazil project, mentioned earlier. To this point, Casa Valduga has had some success raising its profile at a few major events around the world, winning some trophies and medals along the way, although it must be said that as a new and very small player on the international scene, questions remain over whether these small inroads into a few markets can be sustained and lead to bigger things, particularly as the wine itself has not yet been proven as a consistent, quality offering year in, year out. Also, while achieving international sales and recognition should be an important part of the company's future, the domestic market is far more crucial, particularly in terms of reinforcing and building on Brazil's acceptance of the quality of its national sparkling wine (an acceptance which is far less advanced for still wines).

With such challenges ahead, a lot can be understood about Casa Valduga from its strong position on the need for the Brazilian wine industry to improve itself in the key areas of fruit quality, winemaking techniques, marketing efforts and enotourism. Returning to the ongoing push for the Vale dos Vinhedos to be awarded Brazil's first ever DOC, the word's of Joao Valduga himself say a lot for both his winery and the future of Brazilian wine. He stated that, while the DOC is something they believe possible, a range of improvements are still required, including further conversion of old-fashioned vineyards into modern, ecologically-correct systems, the continued introduction and upgrading of technologies, a move to lower yields, viticulture of precision and healthy earth. Or, as he more precisely puts it, "aiming at quality and not quantity, while always maintaining the roots."

Brazil's middle class wakes up to wine
( 2009-03-26 - Meininger's Wine Business International)

Simon Tarmo

Brazil is a country on the rise and is poised to take an increasingly prominent position on the global wine scene. Research published in mid-2008 by the International Wine and Spirit Record (IWSR) shows that Brazil is now Latin America's second biggest consumer of wine by volume, with its 326m litres in 2006 putting it behind only Argentina.

The same research predicts that by 2011 Brazilian consumption will reach 369m litres, a 13% increase from 2006. Although even then it will still be at only around 10% of world consumption leaders France and Italy, and well outside the top ten, Brazil, with a population of around 200m and counting, offers ample room for growth.

Specifically, three key trends indicate that the Brazilian market is primed for significant expansion over the coming decades.

First, the groups that consume the most wine in Brazil, the middle and upper classes, are drinking more each year. Market research conducted at the beginning of 2008 by the Brazilian Institute of Wine (IBRAVIN) found that while per head consumption remained well below 2 litres, the 48% of the population that drinks wine 'with frequency' was consuming 5.2 litres per capita. Further still, the study predicts that these drinkers will steadily increase their annual intake to reach 9 litres by 2030. Earlier, more optimistic IBRAVIN research has predicted that concerted efforts to raise consumption could help bring the overall per head figure to 9 litres by 2025, a scenario that would see Brazil quickly closing in on the top five countries for wine consumption by volume.

Second, Brazil's strengthening economy is helping to create more wine drinkers. Although initially shaken by the global financial crisis (GFC), many believe the worst is already over for Brazil. After a decade of growth the country's GDP should remain in positive territory while unemployment, which dropped over 30% from 2003-2008 to reach a record of 6.8%, is expected to remain relatively low. Importantly, this economic development has seen the Brazilian middle class swell significantly in recent years and in mid 2008 it represented the majority of the population for the first time ever, with 52% (research institute Fundação Getulio Vargas). Considering that the same IBRAVIN research mentioned above predicts that overall spending on wine by the Brazilian middle class will be 39% higher in 2011 than in 2006, this upward social mobility will play a key role in augmenting the country's total consumption over the coming years.

Thirdly, following a surge in popularity of wine education and events, Brazilian drinkers are seeking better quality. While to this day around two thirds of the wine consumed in Brazil falls into the category of 'table wine', the slice considered 'fine wine' has been growing strongly in recent years thanks to an influx of imports, which now make up a record 80% of the 'fine wine' category. According to the Brazilian Union of Vitiviniculture (UVIBRA), from 2002-2008 wine imported into Brazil grew 220% in volume but jumped an even more impressive 300% in value; both unmistakable indicators of escalating demand for higher quality wine. Moreover, this surge of imports has also forced Brazilian winemakers to improve their products and marketing, giving consumers an increasingly comprehensive choice of quality wines.

Despite these positive signs, 2008 will not be shown to be a great year for the Brazilian market, although only in part because of the GFC. While figures are not yet available, a range of indicators suggest that there will be little growth and potentially a drop in overall wine consumption by volume for 2008. The main culprits have been the massively fluctuating Brazilian currency, which encouraged imports early in the year but confused the market following its major devaluation during the crisis, while the government's decision to introduce a zero tolerance policy for drink driving at the beginning of 2008 has made a big impact across the alcohol sector.

Importantly, however, the three trends described above look to have remained in force and should push consumption levels higher as things settle down. Some telling evidence that the market remains healthy surfaced during February when the fourteenth edition of Fenavinho, Brazil's biggest event for the wine sector, was realised with record sales and attendance levels. The 79 nationally-based buyers that attended made almost $3.3m worth of purchases, ten times that of the previous event, while the 175 thousand attendees marked a 17% increase from 150,000 in 2007.

Sport Business Articles

2009-11-20T12:13:00.000-08:00

Cup half full in Brazil? - Major Events International

Simon Tarmo, 18 May 2009

After almost two years of relative inaction, Brazil is finally waking up to the fact that it will be hosting one of the world's biggest events in five years time, writes Brazil-based journalist Simon Tarmo.
FIFA will announce the 12 Brazilian cities that will host 64 matches at the end of May 2009
The 2014 FIFA World Cup should create a veritable revolution in terms of technology
The Brazilian government has launched a new project aimed at significantly raising the bar on spectator security
Although Brazil was selected as the host of the 2014 FIFA World Cup in mid-2007, only in recent months have the first rumblings of Cup-focused planning and development really begun.

At the end of May 2009, FIFA will announce the 12 Brazilian cities that will host 64 matches over two months in June and July 2014. This selection process has been the driver of a wave of activity from state governments and city councils around the country all trying to prove their credentials and secure one of the coveted positions. This in turn has aroused significant concerns about just how much work will be required to get Brazil ready for the event, across the wide range of sectors that will play their part.

In terms of Brazil's sport and major event technology, the 2014 FIFA World Cup should create a veritable revolution. To begin with, just about every potential host stadium around the country, even those in the big cities of Sao Paulo, Rio de Janeiro and Belo Horizonte, are still well short of the standards required by FIFA. All of the existing stadia to be used will therefore be undergoing major refurbishment and remodelling over the coming years, while up to four new facilities will be built from scratch. A key part of this upgrading process will involve stadium technology, with much of the infrastructure demanded by modern football and sport simply not currently available in Brazilian facilities.

The improvements will need to be as wide ranging as they are drastic, incorporating comprehensive communications systems catering for operational, promotional, entertainment, media and on-field requirements, new business and corporate hospitality facilities, accessibility and safety provisions and, last but certainly not least, security.

The latter is considered one of the most important areas to be addressed for Brazil 2014 and the powers that be are acting. In March 2009, the Brazilian government launched a new project aimed at significantly raising the bar on spectator security at football matches in preparation for the Cup. The 'Torcida Legal' (literally 'legal supporter') project has as one of its central features the installation of sophisticated crowd monitoring and security technology in all stadia in Brazil with a capacity of more than 10,000 spectators.

The project sets tough minimum standards covering the control of access to stadia, the amount of video cameras and monitors throughout the facility and the establishment of fully-equipped security centres. The requirements will come into effect for the beginning of the 2010 Brazilian domestic football season with a view to ironing out all kinks well in time for the 2013 Confederations Cup, one year before the main event.

Another important factor in Brazil's preparation for the Cup involves the ongoing use of stadia. A small controversy continues to unfold in the country surrounding a recent statement by FIFA's marketing department discouraging the use of stadia with athletics tracks separating the crowd from the field of play, a comment that has raised the ire of Brazilian athletics officials while also highlighting the important issue concerning the ongoing utility of modern day stadia. Although there may be little choice in some cases, it will be interesting to see if the FIFA pressure translates into either design modifications allowing for moveable seating and stadia reconfiguration or the removal of athletic tracks entirely.

Just which groups will steer the modernisation process the 2014 host stadia will require largely remains to be seen. Sinaenco, Brazil's national association of architectural and consulting engineering companies, affirmed recently that Brazilian groups have sufficient expertise, knowledge and experience to develop and manage projects for the Cup across all relevant areas of infrastructure. Whilst this may be true to some extent, the combination of a relatively short timeframe, 12 separate locations and a long list of requirements spanning many different sectors presents a major challenge that will rapidly escalate in magnitude if any hiccups are encountered along the way. Considering again the aforementioned fact that not one single stadium in Brazil currently meets the standards imposed by FIFA to host World Cup matches, it would appear that significant international involvement will be required, particularly when it comes to the likes of specialised technology and major event know-how.

One group that will almost certainly play a part is FIFA's official technology sponsor for the 2010 and 2014 World Cups, Satyam. At present, the Indian company has only a small presence in Brazil and with the group's recent activities clouded by a series of controversies and the shock resignation and jailing of founder and chairman Ramalinga Raju there have been few hints as to just how it will handle Brazil 2014. Satyam has significantly ramped up its involvement and presence in the South African market ahead of the 2010 Cup, however one major issue in Brazil is the language barrier, which the company has already cited as being a problem when it first entered the market in 2004. In South Africa, Satyam is playing a crucial role in developing the core IT event management system for FIFA and its service partner for IT, accommodation and hospitality - MATCH AG, while the company is also working closely with the local organising committee. The question is whether this level of involvement will be repeated for Brazil 2014, and just who will fill in the gaps if not.

Whilst it is easy to raise doubts about and cast aspersions at any country preparing to host an event as big and prestigious as the FIFA World Cup, something that cannot be questioned is Brazil's strong desire, and indeed major potential, to make 2014 a grand success. Come 31 May 2009, when FIFA names the 12 Brazilian cites to host 2014 matches, the real test of just how to make that happen will really begin.

About Simon Tarmo

A journalist from Sydney, Australia and co-founder of industry journal Australian
Sponsorship News, Simon Tarmo now lives in Belo Horizonte, Brazil. Having worked on a range of writing, research and translation projects across a number of industries including sport, entertainment and wine, he is currently focusing on business opportunities involving the 2014 FIFA World Cup in Brazil. With above-average Portuguese language skills, he has an extensive network of contacts throughout Brazil and can advise and assist foreign groups doing business in the country.

Simon Tarmo
+55 31 9196 0069
simon@pando.com.au
www.sponsorshipnews.com.au
www.copa2014.org.br

Misc. Articles

2009-11-01T12:12:00.000-08:00

Brazil: Arriving in São Paulo

By Simon Tarmo
September 25, 2007

I have arrived. I have packed up my life and now I'm in one of the biggest, craziest cities in the world - São Paulo.

Actually, this is just a temporary stay, for a couple of days, before I move on to my new home for a few years or so - Belo Horizonte, Minas Gerais, Brasil.

But I‘ll speak of São Paulo for now.

To begin somewhat poetically, the sheer size of the city alone makes the mind shift to different places, places where my former safe, secure and controlled existence (in Sydney, Australia) are overcome by semi-subconscious feelings of possibility, excitement and the unknown.

I touch down at about midnight on a Friday and quickly clear the tired and bored looking federal police and customs officers, before picking up my 92kg of luggage (yes, we paid handsomely for the extra kilos but it‘s hard to leave your previous world behind) and greeting my good friend Augusto (Guto for short), who had just arrived to pick me up. Despite various warnings from folk supposedly in the know back in Australia, I had absolutely no problem with my trip, especially the final hurdle getting out of São Paulo airport, and actually rolled through the exit gates before my scheduled landing time - lucky my friend is prompt.

Following a quick search for Guto‘s car in the balmy São Paulo night, we squeeze into the little Fiat and make our way through the surprisingly light traffic (compared with previous, mid-week and daytime trips) on the surprisingly improved roads and, after a few absolutely natural moments of panic checking the green suburb direction signs before veering off on an exit while simultaneously muttering the Indian sounding names and affirmations that we were on the right course, Guto announces out arrival in his suburb of Vila Madalena (Madalena is a version of the name Magdalene, I was quickly answered, reaffirming that I am now miles away from my English/Aboriginal inspired homeland).

Now, with São Paulo basically the entire Australian population crammed into a space the size of Sydney, I found Vila Madalena to be a small, gracious haven amongst numerous not-so-couth areas. After parking in the security area below Guto's rented two bedroom apartment, rigorously wrestling my weighty luggage into the diminutive lift-with-a-pull-to-door, and quickly changing shirts and smells thanks to Rexona's shower in a bottle, we take off down his street to a 'favourite' bar of mine (I'd been there once before a few years earlier and loved it) for a midnight snack/dinner.

Oh, by the way, I had also just met back up with my wife after a few weeks apart (this life move thing is complex) and we were now hand in hand following Guto and his wife, Adriana (Dri), through the increasingly busy streets.

Busy soon becomes crowded and as we arrive at the heart of Vila Madelena‘s restaurant/bar area we are already peering into places for free tables, and, although the bar of my choice is packed to the Patricks, we spot a nice, free corner in the establishment across the road and head in. A quick picanha na chapa (beef rump cut the opposite way to in Australia cooked medium rare and served on hot plate sizzling above two burners - yeah) and five or six Originals (600ml bottles of beer shared amongst the table - yeah) and I am well and truly ready to surrender to my jetchee lagee, which I rapidly do.

I‘ll skip a day now thank you very much air travel, although on Saturday we did manage a trip to the wonderful central markets and dinner at another friend‘s apartment, even though my body said not to.

Sunday morning is funny. Still timezone-challenged, I wake early and spend 7-8am on Guto's wireless laptop catching up with mum and sister on Messenger (mum's come a long way) and culling my already growing inbox of work-related emails. At about 8:30am I hear a rather, no very, loud explosion of music coming from the street 12 levels below and washing over the entire suburb. It is the lovely Marisa Monte - Brasil's own PJ Harvey crossed with Norah Jones - singing a bit of samba and a bit of MBP (Musica Popular Brasileira). As I'm not tired at all, this is great. A bit different to my customary Sunday morning, but almost exactly what I expected and wanted to happen on my first real day back in Brasil. Actually, it feels somewhat like that Jim Carrey movie The Truman Show in that everything seems to be happening just because I'm here, but will stop when I leave.

The latter is kind of true. I am quickly assured by Dri, who has risen with the music, that this is not normal but the opening of the annual Vila Madelena Festival - now in its 30th year. Lucky me. Once we are all up and ready to get going (I‘m actually starting to feel tired again), we head to a nearby café that serves breakfast - relatively rare in São Paulo I‘m told - before moving on to check out the already pulsing streets of the festival. Pearl Jam's Alive is now pumping out of the speakers on the main street stage, a bit too familiar for my liking, but once Eddie has finished off the song with his customary whine Paulista musicians take the stage and begin practicing and checking sound.

Now a festival‘s a festival and I won‘t bore anyone with the details but amongst more beer and carne (meat) na chapa (remember?), there are a few odds and ends worth mentioning, namely: it‘s a bloody big festival, with about four street sections of around half a kilometre each closed off and full of revellers; you can buy beer anywhere and drink it anywhere, beleza! (beauty!); it‘s freakin hot - over 30 degrees - although it‘s still officially winter; it‘s freakin loud, particularly when the real bands are on stage; and the whole time my wife remains incredibly happy to be back in her home country.

On Monday we are up and at ‘em early and quickly on the way to Congonhas (or Conyongas as I like to mis-pronounce) airport for an early flight to Belo Horizonte, my new city. Before I leave São Paulo for the time being, though, I‘ll mention a couple more of my numerous and just plain amazing highlights. Travelling from the airport at midnight I particularly liked going past the city's main cemetery to see about 10 of the 30 or so flower stalls that line its gates completely open and as fully stocked as Mother's Day, just in case a late night visit took your fancy (although, upon second thoughts, I reckon I could have done with some flowers a few times late on a Friday night, and my wife agrees). I also loved our trip to the markets on Saturday when we parked the Fiat in a big, old, narrow building that seemed to me to be based on a design out of Mad Magazine - the street level is a long row of garage spaces which cars are driven into before being raised however many stories (the entire, 15 level+ building is dedicated to parking) on big elevators to rest for a few hours and then be retrieved.

Anyway, another gringo has had a taste of São Paulo, a city that really doesn‘t seem to sleep or end, and the salt from the meat and foam from the beer remains on the tip of my tongue for now.

And so I move on to a place I feel is a genuine illustration of Brasil and her people, well away from the overt tourism and sheer madness of many of the other renowned cities. My new home is Belo Horizonte. Stay tuned...