Porter’s National Diamond Analysis of Peruvian Wine Industry

Part 1: Porter’s National Diamond Analysis of Peruvian Wine Industry

1. Introduction

Peru is a Spanish speaking country in Western South America with a population of approximately 29 million people. The country is blessed with a natural diversity of landscapes. They have one of the world’s most complex river systems including the great Amazon River (Wine Searcher, 2013). Wine grapes were first introduced to Peru by Spanish conquistador Marquis Francisco de Caravantes during the sixteenth century. The five different vineyard regions in Peru consist of the North Coast, South Coast, Andean Sierra and the Selva. Out of 11,000 hectares of vineyards in the country, Central and South Coast are the most important regions as the best known wines like Tacama, Vista Alegre and Ocucaje are produced (The Drinks Business, 2012). Every country has their own type of liquors and spirits. Peru, with its own invention called Pisco is certainly no exception and is gradually gaining recognition. Pisco is technically a Brandy made from distilling fermented grape juice. It is made from certain varieties of grapes which are only found in specific regions of Peru and Chile (Marian Blazes, n.d). Pisco has gained world recognition and is referred to as Peru’s national drink. Peru wine exports are limited because their production has traditionally been quite low compared to more developed South American countries like Chile and Argentina. The purpose of this report is to use the Porter’s National Diamond model to analyze how the different factors of the diamond influence the growing of wine in the country and find out if the wine industry will be successful in the country.