Gaucho Looks to Its Luxury Wines to Boost Commerce

Photo by Kelsey Knight on Unsplash

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Fancy some Malbec to go with your steak this weekend?

The famed red grape is a go-to if you want to try Argentinian wines. And it is a major backbone of the fine wines Gaucho Group Holdings Inc. VINO can offer whether you care to buy them online or drink them in Argentina — perhaps even at the Miami-based company’s luxury estate in the wine province of Mendoza.

The luxury brand company, which has a major focus in the South American country, wants potential U.S. consumers both to try its Algodon Fine Wines through its e-commerce channels and in select restaurants. In addition, it also wants to encourage people to stay at the Algodon Wine Estates in San Rafael, Mendoza, or even buy property there to enjoy such wines in their own backyard.

Gaucho purchased the 4,138-acre San Rafael site in 2007. Originally, it was a 718-acre site, where some vines date back to 1946.

The original location also included a small hotel and golf course. Gaucho has since significantly expanded on that to provide an award-winning restaurant and luxury accommodations in the complex, which also includes tennis facilities and a golf course winding through the vineyards.

What’s on the Wine List?

It’s not only Malbec and Malbec blends that are on the Algodon wine menu. The winery also produces Chardonnay, Bonarda and a Cabernet Sauvignon, all priced at $22.95 online. The company also has higher priced wines reaching up to the $100 level.

And it’s not only U.S. consumers that are being targeted. Gaucho provides its Algodon wines to consumers in the home country with its bottles available both at select locations in Mendoza and Buenos Aires.

Its United Kingdom distributor also has vendors in a variety of European countries, including the U.K itself, Germany, France and Switzerland.

E-Commerce Complements in-Person Experiences

Whether consumers try the wines closer to home or at the San Rafael estate, Gaucho is counting on its e-commerce arms to complement its onsite luxury experiences. Indeed, when the COVID-19 pandemic was at its height last year, with tourism numbers significantly in decline, it was the company’s online presence that helped alleviate some of the economic pressures.

Now, with COVID cases declining, and restrictions soon to be lifted in Argentina, it just may be that both well-heeled American and Argentinian consumers, among others, will want to jump at the chance of a luxury jaunt to the San Rafael estate to try the wines in the very area they are produced.

American consumers who are seeking difficult-to-replicate experiences could be the ones most attracted by such a vision given their dollars will likely go further in South America. Gaucho hopes such consumers may even be enticed into buying property at what the company says is a fraction of the price they could pay for comparable properties in more familiar wine areas such as the Napa Valley and Tuscany.

The chance to offer luxury experiences such as Gaucho is doing is a growing trend that hotel chains want to exploit.

With growth expected to be over a compound 10% in coming years, the luxury hotel market is predicted to be valued at over $238 billion in 2028. Major hotel chains looking to shape this trend include France’s Accor S.A. AC and Marriott International Inc. MAR in the U.S.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.