Argentina Chile study tour day seven

Saturday March 20 2010

Last day in Santiago for the group. Today we had the opportunity to visit Lodge Andino El Ingenio in the foothills of the Andes. Most of the group elected horseback riding; we had to stay in the valley because of fears that aftershocks could result in falling debris if we were further uphill.

After the outdoors activity we had a wonderful lunch, some poolside relaxation and then it was time for the bus ride to the airport. There was significant damage to the airport from the earthquake, but operations were getting closer to normal. There was a holding area under a tent where everyone had to stay until three hours before their flight. Then we picked up already printed out boarding passes outside the terminal. From there we proceeded to bag check, immigration and security -- all of which were set up in areas that had previously been allocated to other functions. Took only about 45 minutes for all of this, leaving the students time to say goodbye before hopping on return flights.

Kudos to the Austral Group for organizing and escorting the NC State team for a wonderful week in Chile. Based on the learning objectives for the course and the background and interests of the students, the Austral Group put together an itinerary that exposed us to a wide range of companies and industries. All of the presenters were engaging and polished presenters. The on-ground staff -- Ignacio and Shirly in BA and Claudia and Alejandra in Santiago -- were simultaneously professional and fun to be with. The cultural opportunities were all outstanding. I would certainly work with them again if I were to take a group to South America.

Argentina Chile study tour day six

Friday March 19 2010

Today we headed about 35 miles south of Santiago to visit Subsole (fruit exporter) and Vina De Martino (winemaker). Subsole takes grapes from local farmers (who are the main shareholders), packages and cools them and then exports them. Subsole also exports citrus, kiwi, cherries, and avocados so that their capacity and employees are fully utilized over the year. After a presentation from Jose Miguel Fernandez the general manager, we all enjoyed a plant tour. I was a bit surprised that this was the first factory tour for many students. At the end we all received a nice size basket of Ralle grapes, a scrumptious new variety.

Next stop was Vina De Marino, where we enjoyed a talk from export manager Guy Hooper (another expat). De Martino is currently the #46 wine producer in Chile and is looking to build market share overseas, especially in the US. De Martino charges slightly higher than average prices, with their key differentiators being 12 years of research to find the best terroir, the launch of carmenere as a distinctive varietal (as opposed to part of a blend), and fully organic production (hello, Whole Foods, have we got a wine for you!). De Martino's facilities also have just been certified 100% carbon neutral. Lots of questions from the students about the marketing challenges; the best advertising is still "get wine into people's mouths."

Hooper then hosted a fantastic lunch. We started with the choice of chardonnay or cabernet sauvignon, while trays of empanadas and razor clams circulated. Then it was time for a three course dinner (1-charcuterie, 2-squid ink risotto topped with fish and crab, 3-pick between fresh fruit, cake or creme brulee) accompanied by more wine (carmenere and/or sauvignon blanc). Then it was time for the winery tour. Each of us was provided with a glass so we could sample at various stages of fermentation, which was a nice twist. Finally, and much to my surprise, we had a chance to sample two more wines (syrah, carmenere) from De Martino's premium brand.

Last night in Santiago and the entire class went to Mestizo where more great seafood and wine were enjoyed. Hard to believe we only have one more day.

Argentina Chile study tour day five

Thursday March 18 2010

Full day today with two morning and one afternoon meetings. Our Santiago guide Claudia told us that there had been two aftershocks in the early morning; no one seemed to have noticed.

First stop was the local chapter of the American Chamber of Commerce, where we had two speakers both of whom were US expats. John Welby gave us a great overview on the economy and current trade issues. Steven Buchanan provided a personal account on what an expat needs to do in Chile to become accepted and credible to the business community. His advice included the following: find a niche, learn the language, be careful selecting partners, understand your market, embrace a local accountant, and "always give more than you receive."

Back to the hotel for a presentation from microbrew entrepreneur Christoph Flaskamp, a German expat who has unleashed his Tubinger brand on Chile. Flaskamp talked about the challenges facing startups in general and brewing startups in particular. Pisco and wine are the two dominant alcoholic beverages in Chile; microbrews are just starting to get noticed. The students had many questions (including one who is starting his own microbrew enterprise in the Sandhills region soon) and enjoyed the opportunity to taste a small sample of Flaskamp's product.

After lunch we all hopped on a bus and went downtown to visit Andres Bello University for a talk from Prof. Marcelo Mena about energy and environmental challenges facing Chile. Chile does not produce much in the way of petroleum and natural gas, making it heavily dependent on imports. Hydropower and wind are being closely scrutinized as energy sources for the future.

Most of the students stayed downtown to shop and explore after Mena's talk. A brave few sampled the terremoto, a blend of white wine and pineapple sherbet. Terremoto is the Spanish word for earthquake.