Wine Business International by Jack Hoffmann

Volume XIII · Issue 1 · February 2018

22 €

MEININGER’S

M E I N I N G E R’S

WINE BUSINESS INTERNATIONAL

www.wine-business-international.com Volume XIII · Issue 1 · February 2018

MEET THE WINE DETECTIVE

POWER LISTS: THE UK WINE MEDIA

THE LOW- AND NOALCOHOL TREND

Wine fraud expert Maureen Downey is so respected that she has been consulted by the FBI and the US Department of Justice. She explains her work to Robert Joseph. Page 30

Newspaper columns are not what they were, but wine communicators are still powerful. James Lawrence looks at the key figures in the UK. Page 18

Dry January, government crackdowns and health concerns have combined to create a new category of wines. Our authors look at the trend. Page 20

A ROAD MAP FOR WINE

UNTANGLING THE GERMAN MARKET

Researchers at Germany ,s Geisenheim University deliver a report on what the wine trade believes will be important for the future. Page 48

Introducing our new 'How To' feature, which reveals how a market functions and what you need to know if you want to sell there. Page 68

THE ART OF WINE. DOWN TO EARTH.

World’s Favourite Malbec* Located at the foothills of the Andes Mountains in Mendoza, Argentina, Trapiche sources its Malbec from prized vineyards at over 3,900 feet of elevation, resulting in rich yet balanced Malbecs. Founded in 1883, Trapiche prides itself on a legacy of quality, which today can be enjoyed through its portfolio of high-scoring, award-winning wines. *Caucasia, based on Calendar Year 2015 Malbec exports and domestic shipments.

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ONE MAGAZINE. THE WHOLE WORLD OF WINE.

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elcome to the first magazine of 2018, our bumper ProWein edition. If one word sums up the trends and issues dealt with in this issue, it would be “paradox”. More regions are working to discover their roots, their winemaking heritage and their old styles, and yet it’s also clear from our various market reports that wholly modern blends like Apothic are on the rise. The trend towards premiumisation continues apace, with more money being spent uncovering micro terroirs, enhancing regional identity and creating new standards W I N E . for RT O F T H . A E H T examplesOofEthis quality. In this issue, you’ll find A Rfrom Italy, T D OW N Austria and Argentina. There’s another emerging trend that’s also paradoxical: the wine that isn’t really a wine, the low- and no-alcohol products, which Sophie Kevany (page 20) and Jeni Port (page 22) have written about. And then there are trends that suggest there’s trouble ahead. As Robert Joseph says in his column, there’s a trend that we haven’t yet paid enough attention to — the spread of legalised marijuana. Although dope has long been a welcome (if illicit) cash crop for some New World wineries, there’s only so much room in anybody’s life for intoxicants and marijuana is likely to impact sales of wine, sooner or later. This issue we also launch our new “How To” articles, which will offer insider tips on how to enter specific markets. The first cab off the rank is a handy guide to Germany, which surely ranks as one of the world’s most confusing import markets. Speaking of Germany, a number of academics at Germany’s famed Geisenheim University have done a wide survey, from which they have created a short-term forecast of wine’s future. It’s on page 48. Finally, as you’ll see from the wine2wine conference report on page 44, industry leaders are concerned that the wine trade is falling behind when it comes to digital competencies. This is an area that we will tackle in future magazines.

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Six times a year. Available on iOS and Android. www.wine-business-international.com

CONTENTS

1/18 MEININGER’S WBI

NEWS ANALYSIS 6 The shipping news The problem with interstate sales.

by Panos Kakaviatos

8 Pinot Grigio defines its boundaries by Elisabetta Tosi

The creation of a new area. 64

10 Aldi grows in the US

Key people in Bordeaux

The German model takes off.

by Liza B. Zimmerman

PHOTO: MATTHEW DIXON - FOTOLIA.COM

24 Cutting out the middle men by Jeff Siegel

More consolidation in the US.

MARKET WATCH 46 Ten myths about China by Lin Liu

It’s time to set the record straight.

48 What does the future hold?

Untangling the German market

by Geisenheim staff

The results of a business survey.

REGULARS

58 Trends in California What the cool kids are drinking.

3 Editorial

by Liza B. Zimmerman

68 How to Germany 12 Perspectives

by Felicity Carter

Getting to grips with a difficult market.

89 Masthead

74 The somms of Sweden by L.M. Archer

The market’s tastemakers.

90 Column by Robert Joseph

88 Inside a Moscow institution 90 Next issue

A visit to Café Pushkin.

OUR WRITERS IN THIS ISSUE

by Anton Moiseenko

POWER LIST 18 The UK’s wine communicators Critics, media stars and writers.

Roger Morris writes about food and wine for many publications, including Robb Report, World of Fine Wine, Wine Enthusiast and Drinks Business.

by James Lawrence

INTERVIEW 30 The wine detective

L.M. Archer, Sweden Alistair Cooper MW, UK Panos Kakaviatos, France Sophie Kevany, France James Lawrence, UK Lin Liu, France Jürgen Mathäß, Germany Anton Moiseenko, Russia

Maureen Downey is on a mission to stamp out wine fakes and frauds. by Robert Joseph

Roger Morris, US Jeni Port, Australia Michèle Shah, Italy Jeff Siegel, US Darren Smith, UK Elisabetta Tosi, Italy Simon Woolf, Netherlands Liza B. Zimmerman, US

WHO IS WHO 64 Who’s Who in Bordeaux Inside this ancient region.

by Sophie Kevany

1/18 MEININGER’S WBI

MARKETING 86 The label and the brain by Michèle Shah

Insights from neuroscience.

FAIRS & CONFERENCES 14 ProWein & Vinitaly

Victoria Moore, writer

Jean Natoli, Languedoc

Simonetta Doni, designer

Your guide to making the most of these important fairs.

44 Digital first The big message from 2017’s wine2wine. by Felicity Carter

WINE STYLES

60 The laboratory

by Jeni Port and Sophie Kevany

78 Wine at altitude by Jürgen Mathäß

New research from Argentina.

62 Vienna’s flagship wine by Felicity Carter

The evolution of Gemischter Satz.

72 Cabernet still triumphs The excitement around autochthonous vines. by Simon Woolf

82 Burgundy’s sparkling ambitions

REGIONAL ANALYSIS 42 Cava aims higher by James Lawrence

A new, premium initiative.

76 The hurdles of Central Otago by Roger Morris

The emergence of Crémant.

The limits to expansion in a prestige area.

by Jeni Port

80 Romanian renaissance

COMPANY PROFILE

New investments and dramatic growth.

26 Value in the Villa

by Felicity Carter

84 The forgotten valley by Felicity Carter

Inside Dievole in Tuscany. divici_advert_winebusiness_215x95.pdf

by Darren Smith

Languedoc’s secret weapon.

20 The low alcohol revolution How big is the trend?

TECHNOLOGY

21/04/2011

16:23

Itata is a very old region of Chile.

by Alistair Cooper MW

N E W S A N A LY S I S SHIPPING

1/18 MEININGER’S WBI

THE SHIPPING NEWS

nterstate wine shipping has long been a headache for US consumers, but is seems to be turning into a severe migraine in 2018. The American wine forum Wine Berserkers was full of posts in January about how restrictive interstate wine shipping laws are being enforced. Tom Wark, executive director of the National Association of Wine Retailers (NAWR), even weighed in with a long update and a plea for readers to spread the word about winefreedom.org, a site dedicated to give consumers a voice on the issue.

PHOTO: CANJOENA - FOTOLIA.COM

US consumers who order wine online are getting stung with high freight charges. Panos Kakaviatos asks why.

What’s the problem?

Steep cost rises

Over the past year, many American retail wine shops were required to sign new contracts from UPS and FedEx permitting the carriers to “check your books without a warrant or subpoena”, according to Randy Bowman of Napa Valley Wine & Cigar. American consumers can expect “very little” relief from the “crackdown” by common carriers and the state that prevents them from receiving the wines they want from outof-state retailers and wine stores, says Wark. “Common carriers refuse to pick up packages from wine shops that are meant for delivery to a consumer in a state that does not explicitly allow shipments from out-of-state retailers,” he says. “State alcohol regulators insist common carriers perform this enforcement, under threat of losing their licence to deliver alcohol in the state.” Wholesalers who oppose competition from retailers have successfully pressured state alcohol agencies to pressure carriers over the last two years, he added. “FedEx and UPS are getting more aggressive in their commitment to not deliver retailer wines to any but the 14 locations where it is explicitly legal.” If certain states and the major distributors get their way, American consumers will only be able to buy wine locally by 2020, says Bowman.

Meanwhile, consumers face higher shipping costs. Bowman says that two years ago, a case of wine from California going to New Jersey cost between $46.00 and $48.00, including packaging. “UPS and FedEx have increased rates, added a fuel surcharge like airline and trucking companies use,” he says. “This last December, the two weeks before Christmas, UPS added a surcharge to cover part-time employee hiring.” Some stores are using third-party carriers that may not be as stringent as either UPS or FedEx, and wholesalers reply that that is the problem. Jeffrey L. Solsby, spokesman for the Wine & Spirits Wholesalers of America (WSWA), says that certain retailers are “simply choosing to illegally ship wine into states where that might not be permissible — or wish to begin to do so”. He added that regulators are “right to be concerned about threats to product integrity, underage access as well as counterfeit product being shipped absent clear jurisdiction and oversight”. Solsby adds that the 21st amendment to the Constitution may have legalised alcohol sales, but it also gave states the authority to regulate alcohol within its borders. Wark points to the 2005 Supreme Court decision Granholm v. Heald, that has permitted wineries to ship to nearly all states and how

that same freedom should be allowed for retailers. Solsby disputes this: “The courts have consistently held that there is a distinction between a winery and a retailer. Wineries are regulated by the federal government and the states, while retailers are only regulated by their home state. This distinction and each state’s primary authority over its licensees are the reasons why the two entities are treated differently and cannot engage in the same type of transactions.” As wholesalers battle retailers, and shipping gets more complicated for consumers, does anyone win? NAWR president Daniel Posner says that enforcing restrictions on retailers could increase direct-to-consumer business for domestic wineries. However, consumers will be “paying more for most of the imported wines that they have previously purchased outside of their home state, because in many states, that wine may not even be available to them any longer”. One retailer set to adapt well to the changing environment is Total Wine, with more than 170 stores in 21 states — and growing. If it cannot ship to a particular state, it could simply build a store in that state. “Yes and local delivery is fine, according to the WSWA,” says Posner. “After all, it is an investor on Drizly, a local delivery platform.” W

Long live wines

We are the fruit of our soil, the mother of our wine, the soil we respect so as to harvest the best in return ever since 1551. We are history. The history written by a family over eighteen generations in our historical wineries. Five centuries of expertise and a legacy of winemaking know-how that has crossed borders, positioning CodornĂu RaventĂłs as a flagship of quality worldwide. We are pioneers and will continue to be so. 466 years is a short time compared to what is yet to come.

1/18 MEININGER’S WBI

N E W S A N A LY S I S PINOT GRIGIO

THE PROTECTION OF PINOT GRIGIO It’s difficult to protect a wine when it’s sold by variety. Elisabetta Tosi looks at a new measure being taken to define Italian Pinot Grigio.

Val d’Adige in Trentino, part of the new Pinot Grigio delle Venezie

silent revolution took place in the north-east of Italy in 2017 when a new denomination was born. Its numbers are impressive as it is the largest in the world, extending in 2016 over an area of 23,374 ha. Called Pinot Grigio delle Venezie, it includes the three regions of Triveneto — Veneto, Trentino-Alto Adige and Friuli-Venezia-Giulia — and cultivates just one grape: Pinot Grigio. The new region will account for more than half the Pinot Grigio production in the world, with a potential bottling of 260m bottles. Notably, its Consortium is the first to be created by territorial expansion. The rules of production are quite tight, aimed at raising the quality of the wine; from the 2017 harvest onwards, all Pinot Grigio wines from Triveneto will be certified under a coordinated and guaranteed system.

Rapid expansion Italy is the world’s leading producer of Pinot Grigio, accounting for 43 percent of total production; the next biggest producer

most consumed one in the US so you can understand how high the stakes are.” He adds that producers had realised that Pinot Grigio is an important asset that needs protection and that the IGP (Indicazione Geografica Protetta) rules weren’t fit for purpose. Last year the denomination was officially recognised by the Italian Ministry of Agriculture and the Consortium founded in March 2017. As a result, explains Armani, there will no longer be any uncertified grapes grown in the north-east. All the IGP wine will be transferred to the DOC and the tasting commissions will establish a benchmark for organoleptic acceptability, below which the Government identification mark will not be granted. “All the production criteria have been improved,” he says, adding that production will be decreased to 26 hl per ha. The result should be a significant improvement in the quality is the US with 14 percent. Triveneto of products labelled as Pinot Grigio Doc produces 85 percent of Italian delle Venezie. Pinot Grigio, making it the main There is another, even more production area in the world for this ambitious, goal. “We want to track the grape. Triveneto Pinot Grigio is whole production of north-east Italian one of two pillars of viticulture Pinot Grigio, from the single vine in the north-east, the second to the final bottle of wine, so there being Prosecco, and the region shouldn’t be room any more for is experiencing rapid growth; bottles of wine of dubious origin in 2010, there were 9,000 ha or a risk of counterfeiting: of vineyards, which had tripled “Many of the not only will the wine will be to 27,000 ha by 2017. The US producers are better, it will be more protected,” is the most important market, young and confirms Armani. receiving 37 percent of the educated and One of the significant region’s exports. This year it manage young problems the DOC faces is that will buy approximately 30m vineyards with the bottles for an ex-cellar value of most modern tools. there is no exclusivity in the name “Pinot Grigio”. Armani around €75m ($93.7m). From this base explains: “As nobody can claim “In the past seven years can only come a grape variety as his or her the north-eastern vineyard of something good.” sole property, we could not Pinot Grigio has tripled,” says lock it down. The Pinot Grigio Albino Armani, wine producer Albino Armani, grape is part of planet Earth’s and president of Pinot Grigio wine producer and president of Pinot collective heritage.” He sees the delle Venezie DOC and one Grigio delle Venezie new measures as the solution. of the architects of the new DOC “People can cultivate Pinot region. “The wine is the third

The challenges When it comes to promoting the new region, one of the main issues will be informing Italians about the changes, because the “northeastern area” is a new concept not only to

local consumers, but also to wine producers themselves. “Our goal now is insisting on two concepts,” says Armani. “First and foremost, Pinot Grigio is perceived as an Italian variety basically — our Consortium even has the Italian flag in its logo — and the Triveneto is the most suitable area to produce it. Secondly, we wish to spread the idea of territorial uniqueness both to Italians and abroad.” He adds that, despite limited funds, the shortterm goal of the Consortium is to communicate the changes to the American British and

THE PINOT GRIGIO REVOLUTION Pinot Grigio is like the horse that quietly moves up to take the lead without anyone really noticing. Back in the 1970s, when crisp, dry Italian white wine was a rarity, this grape was used to make cheap sparkling Italian wine and Sekt in Germany; it was blended with Pinot Bianco and any other white grapes that happened to be growing in its homeland of north-eastern Italy; or it was bottled as an often dull, fullbodied, rust-coloured varietal that struggled to compete with the poorest of Alsace’s Pinot Gris. In 1961 Count Gaetano Mazzetto, founder of Santa Margherita had the revolutionary idea of treating the pink-skinned grapes as though they were white. Separating the pulp and juice from the skins created an entirely new style: apparently dry, yet creamily easy to drink, with just enough pear fruit to prevent it being described as neutral. Others followed Mazzetto’s example but the wines remained little known outside Italy. In 1979, Anthony Terlato, the young president of the US firm Paterno Imports decided that his compatriots would appreciate a dry white alternative to the then-popular semi-sweet examples and oaked Chardonnays. After narrowing down the style he was looking for to Pinot Grigio, Terlato ended up in a small restaurant in the Alto Adige where he ordered and tasted all 18 of the examples in its cellar. The winner was Santa Margherita, and the next day, Terlato became its US importer. What happened next, however, was crucial. When launching the wine in the US, Terlato bravely priced it at $10.00, three times the level of the best-known competi-

tor, Bolla, and focused his attention towards the on-trade. The extra margin Paterno was making on every bottle helped to pay for an unprecedented TV advertising campaign. Sales in the 1980s soared to an extraordinary 450,000 cases and the wine regularly took top spot in the annual surveys of most successful restaurant wines. Santa Margherita’s (and Terlato’s) pricing made it largely uncommercial in more cost-conscious markets like the UK, Germany and the Netherlands, but by the 1990s, other Pinot Grigios began to penetrate those markets, thanks in part to the growing number of pizza restaurants. Margins were too small to build a traditional brand, but UK retailer Tesco’s and producer Winery Exchange did the next best thing by creating an exclusive private label called Ogio, which became one of the top 10 bestselling brands in the UK, thanks both to an eye-catching label and regular half-price discounting. Growing demand and tighter restrictions on the ground led to increased Pinot Grigio prices in Italy, but import markets countered this by growing their own Pinot Grigio or sourcing it from elsewhere. By 2010, less than half of the Pinot Grigio on sale in the US was Italian. One of the biggest beneficiaries of this trend towards non-Italian Pinoit Grigio has been Cramele Recas in Romania, which produces bestselling brands like I Heart Pinot Grigio. Robert Joseph The wines of Santa Margherita kickstarted the Pinot Grigio boom.

AVERAGE PRICE FOR PINOT GRIGIO Italian $19.59

Other $17.35

Californian $11.61

German markets, as they’re the main buyers of Italian Pinot Grigio. “The first two absorb more or less 60 percent of the total production of our Pinot Grigio. As a Consortium, we want to make clear that the Government identification mark is not simply a piece of paper, but a true traceability system.” He believes this is why importers and buyers have welcomed the new DOC, saying: “Since the beginning they believe in the system.” He expects the concept to be successful in the key US market, even though Italian Pinot Grigio is more expensive than Californian Pinot Grigio. According to a research carried out by the Vi.V.O. Cantine (Viticoltori del Veneto Orientale), the average annual wine expenditure of Italian Pinot Grigio per American buyer is $97.21, compared with $67.41 for Californian Pinot Grigio. Armani says that so far the reaction in Germany has been positive, because of the tighter controls. The situation is different in the price-driven British market, where importers are more interested in price than origin. “Maybe they eventually find [a cheaper Italian Pinot Grigio], but with what guarantees for the consumer?” He also says the birth of the new DOC has triggered debates in the three participating regions, as producers wonder if the rules of the usual denominations need to be upgraded. “It’s a virtuous general debate,” concludes Armani. “I see it even as a positive moment that will bring interesting outcomes for many Italian wine producers [who are looking to improve their quality]. As for the Pinot Grigio itself, many of the producers are young and educated and manage young vineyards with the most modern tools. From this base can only come something good. Thus, I am optimistic about the future.” W

1/18 MEININGER’S WBI

Grigio anywhere in the world, but nobody can offer the guarantee of our control system, with its chemical and organoleptic analysis and numbering of bottles. Outside Triveneto the controls are much lower and weak.”

N E W S A N A LY S I S ALDI

1/18 MEININGER’S WBI

ALDI MAKES A PLAY FOR USA ALDI, the German discounter, has shaken up the market wherever it’s gone. And now it’s taking on the US. Liza B. Zimmerman reports.

The wine strategy According to a September 2017 article in the Wall Street Journal (WSJ), ALDI is one of the largest retail groups in the world with more than 10,000 locations, businesses in 18 countries and revenues approaching €70bn ($87bn). ALDI would not confirm these figures. ALDI’s affordable prices are driven by the company’s strong buying power and direct route to market for its value- and limitedlot wines. “There is enormous efficiency in ALDI’s buying system,” says Stephen Rannekleiv, global beverages strategist at New York’s Rabobank International.

To expedite the wine sales process further, ALDI launched a test partnership with tech delivery application Instacart in August 2017 in select American cities. According to Matthias Queck, the research director of the Frankfurtbased LZ Retailytics—a retail data analyst—retail discounters like ALDI have a number of advantages. They include attracting the attention of more affluent shoppers and getting extensive media attention for their wine selections. “They have surprised the US market with their continued success,” says Alex Evans, chief sales and marketing officer at Precept Wine, a Seattle-based, private-label wine supplier that ALDI has worked with since 2012. According to ALDI’s Ruggles, the chain works with more than 50 Californian wineries from Sonoma to Mendoza. She adds that the ALDI everyday wine collection includes 60-plus labels priced from $2.89 to $13.99 and that the store features a selection of specialty wines sold at $2.79 to $19.99.

set of SKUs (stock-keeping unit) and private labels that provide the best profit margins, says John Hinman. A partner in the San Francisco-based law firm of Hinman & Carmichael, he had no specific ALDI comments because he represents the firm. The company itself was not very forthcoming for this story. “ALDI, Costco, Lidl and Total Wine are close to the vest with their information,” says Rob McMillan, executive vice-president and founder of Silicon Valley Bank Wine Division. He adds that what he has heard is that ALDI is “exceeding expectations”. Given the chain’s focus on both value and private label, its main competitors in the US market could include Costco, Trader Joe’s and supermarkets such as Safeway and private-label kingpins like Total Wine & More! “The big competition is going to be other supermarkets,” says Rannekleiv. Private label, he notes, is also a harder sell in the US than abroad as Americans tend to put greater trust in brand names than Europeans. “There is going to be a learning curve for them but the market may be ready.” Some industry executives have questioned if ALDI, and retail discounters in general, are limiting the overall wine market mix. The chain did become famous, affordable and easy to shop because it featured a curated selection of brands when it opened and still does. “There is enormous While the vast array of efficiency in ALDI’s brands at popular price points buying system.” is good for the consumer, it “has the practical effect of limiting Stephen shelf space for the small- to Rannekleiv, medium-size winery”, concludes global beverages Hinman. Only time will tell if strategist,Rabobank this wine discounting format International will be a good fit for the US. W

PHOTO: MATT NAGER

ince ALDI opened its first store in Iowa in 1976, it has been slowly ramping up its US footprint. The company has doubled in size in the past decade, according to a press release, and is scheduled to bring its total number of US stores to 2,000 this year. It currently has more than 1,600 locations in 35 states, with a geographic focus on California and the Northeast. In June, the chain announced its intention to invest $3.4bn to expand its US holdings to 2,500 stores by the end of 2022, which would make it the third-largest American grocery store chain after Walmart and Kroger. With an increase in the number of locations, not all of which sell wine, the chain is also expanding its wine selection. “Our wine offerings have exploded, tripling in the past 10 years. In the last year alone, ALDI wine sales have increased by more than 35 percent, outpacing the industry by more than 10 times,” said Liz Ruggles, an Illinois-based ALDI spokesman.

Keeping it simple Since the store was founded in 1961 in Germany by two Albrecht brothers, its signature bare-bones décor and its focus on affordable, private-label brands have made it a hit in various markets. ALDI’s marketing approach is an indication that retailers are focusing on a more limited

HERE AT CRAMELE RECAS, WE BELIEVE THAT GREAT WINE IS A COLLABORATIVE PROCESS. THAT IS WHY WE LISTEN TO WHAT OUR CUSTOMERS WANT, AND DO EVERYTHING THAT WE CAN TO DELIVER IT TO THEM, QUICKLY AND RELIABLY.

ATAILORED WINE TO YOU Our view is that making consistently great wine requires flexibility, patience and the latest technological innovations. Of course, it helps to have a vineyard that is over 700 years old, not to mention a team of passionate and talented winemakers.

@CrameleRecasEU @CrameleRecasEU #cramelerecaseu

This approach seems to be working for us, and today we are Romania’s biggest wine exporters and the fastest growing country of origin in Germany, and the U.K. on trade. Come and have a taste at our stand at Prowein and you’ll understand why.

Find our stand at Prowein in Hall 15 J63.

ELIZAVETA LE FLOCH export director Champagne Deutz, Champagne, France Deutz has been exporting to Sweden for many decades, although our performance in this market has admittedly been sporadic. I recall a significant milestone in 1952, when our wines were served at the Nobel Peace Prize ceremonies; in terms of recent history, Deutz started to really focus on expanding our market share in 1999. What continues to impress me today is the high level of wine knowledge — there’s a big and also very eclectic interest in Sweden for all types of wine, ranging from the “traditionalist” school to newer trends like natural wines. Prosecco is currently in high demand, as are rosé wines and Burgundy. However, the Champagne category is also in good health as Swedish consumers tend to trade up from entry-level sparkling wines, which of course benefits us. Demand from the monopoly retail organisation, Systembolaget, is increasing on a yearly basis; the on-trade is also very buoyant as the government reduced VAT from 25 percent to 15 percent, which has naturally boosted consumer demand for premium products. But on the flip side, working with Systembolaget does present major challenges. When Deutz really got started in 1999, our goal was simply to gain distribution with the Systembolaget, as we presumed Deutz would keep its listing forever. Today, however, it is becoming more challenging to work with the retailer as they track the performance of your brand quite

Sweden, a country of 10m people in Scandinavia, is a monopoly market. Yet although an estimated 60 percent of wines are sold through Systembolaget, which can only be accessed by tender, Sweden is a dynamic, wine-loving market that’s in growth. James Lawrence asks people who are already exporting there about the secret to success in Sweden.

aggressively, keeping their eyes open to new, cheaper brands. Our “value-for-the-money” image has probably been vital in maintaining our position in this regard. In addition, competition for listings in the on-trade is intense; firms need deep pockets if they hope to build their brand in restaurants. In terms of geographical areas, Stockholm, Gothenburg and Malmö are the key destinations for export brands. Sweden’s several resorts are also important, depending on the season, of course. What is particularly interesting today is that the market is clearly divided between the on-trade and off-trade. The two segments show different facets: the Systembolaget is dominated by mass-market brands; in the big cities, high-profile restaurants tend to shy away from entry-level wines and focus on premium. This puts Sweden at a major advantage over other key European markets. Nevertheless, I cannot advise strongly enough that brands should not simply focus on one distribution channel. Both Systembolaget and the on-trade are vital avenues if you wish to successfully build a brand in Sweden.

ANDREA FRANCHETTI owner/winemaker Tenuta di Trinoro, Tuscany, Italy Tenuta di Trinoro entered the Swedish market 10 years ago. My impression today is that Sweden is one of the most sophisticated, buoyant markets in Europe for premium Italian wines. The market overall is growing at an impressive rate, although demand for Tenuta di Trinoro remains stable and has not increased dramatically. As you might expect, the on-trade leads the way in sales of higher-priced wines, although demand is increasing overall in the Systembolaget monopoly. Of course, if your goal is to shift large volumes, then Systembolaget must be your priority, rather than restaurants and hotels. The process of

applying for listings is lengthy, bureaucratic and time-consuming, so patience is key. In terms of our brand, Systembolaget was never an option as Tentuta di Trinoro always does better in markets full of smaller, privately owned retailers. More than 99 percent of our sales are via the premium on-trade — our pricing/small volumes makes us prohibitively expensive for the vast majority of Swedish consumers in the retail market. Major urban centres continue to dominate wine sales; Stockholm and Gothenburg should be your first ports of call, if the goal is to break into the ontrade. It’s a competitive arena but thankfully Sweden, like Norway or Denmark, is still a great market for premium wines because there is no domestic supply.

SIEGFRIED PIC export director, Louis Jadot, Beaune, France Louis Jadot has been selling wine in Sweden for over 25 years. Sales are increasing and I have noticed a significant growth of interest in

premium wines. There is more and more wine knowledge and people are looking for wines with identity and personality. That said, producers always want more growth, but at the moment I am satisfied with our performance in this market.

PHOTO: ROTH SCHMID

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PERSPECTIVES

ANSELMO GUERRIERI GONZAGA owner San Leonardo, Trentino, Italy San Leonardo has been present in the Swedish market for five years, although we are still something of an outsider, representing a little-known region of Italy and producing small volumes. My current perception is that the market is still a relatively immature one, although tastes are becoming more sophisticated and organic wines are now very trendy. Nevertheless, the Swedish market is quite fragmented and expanding only in certain segments. Another challenge is the lack of information/feedback smaller brands encounter due to the limited volumes that are sold outside of the monopoly. Working

when a brand has a listing in Sweden it is (reasonably) secure, but it is extremely difficult to get new listings. Therefore most new players head for the on-trade, the only part of the market where competition is allowed. This

is essentially the only option for newcomers wishing to export into Sweden — head for the major urban centres and don’t expect instant returns on your investment. Patience is key, as Systembolaget is unlikely to take any brand seriously before it builds up a reasonable presence in Sweden’s buoyant on-trade.

with the monopoly offers some stability in terms of guaranteeing a certain volume of sales, although it can be a dangerous market as brands are often delisted rapidly, if the monopoly decides to do so. Moreover, brands must accept a certain lack of control as often the bulk of sales are negotiated through the monopoly stores. The on-trade is therefore the key destination for small volume brands, despite the massive competition for listings. There are many distributors who all work with the monopoly; it is not so easy to judge how they’re managing your brand, due to their

strong if opaque relationship with Systembolaget. In essence, this is a market where a sustained effort in marketing and brand presence may not make much difference in terms of overall recognition and sales. So my final advice to prospective brands is this: if you represent an already wellestablished brand, there is definitely space for you in Sweden. However, if you are a producer looking to create a unfamiliar brand from scratch, you may find the monopoly difficult to engage with, which is the only avenue for firms hoping to shift a certain amount of volume in Sweden.

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PHOTO: ARMELE.PRO

Yet this is an extremely challenging place in which to do business; Sweden is a monopoly market, so you can’t launch or sell the wines you would like, but rather the wines that the monopoly wants. As I always say,

FAIRS PROWEIN

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Don’t miss ProWein 2018 Every year, ProWein in Düsseldorf becomes more significant — and intense. Here’s what you need to know. PROWEIN Düsseldorf, Germany 18 to 20 March 2018 www.prowein.com

ORGANISE YOUR APPOINTMENTS IN ADVANCE

From individual exhibitor events to the central tastings, there’s more on tap at this year’s ProWein than ever. Here’s what you can expect: 99 The central tasting zone in Hall 17 is devoted to the wines that impressed at the MUNDUS VINI spring tasting. Some 500 wines will be available for open tasting. 99 The stylish Champagne Lounge is open again in Hall 12, where more than 60 wines from 40 estates will be exhibited. 99 Taste the latest cocktail mixes at the FIZZZ

PHOTO: MESSE DÜSSELDORF/CTILLMANN

The Extended Exhibitor Search on ProWein’s website offers you an easy way to plan your visit to the international trade fair. The tool lets you filter contacts and make appointments more seamlessly, using MyOrganizer and MyCatalog to keep it all in order.

FAIR EVENTS

Lounge in Hall 12, where up-to-date bar techniques will be demonstrated. 99 Organic wines are skyrocketing. To discover the latest trends, visit Hall 13. 99 While you’re in Hall 13, take a look around at the packaging section, where the latest technology and thinking will be showcased. 99 Tastings, tastings, tastings. Whether you want to benchmark your own wines, or simply wish to learn more about the diverse range of wines in the world, you could do no better than to check the list of tastings. Visit prowein.com for more information

For a decade, Düsseldorf has partnered with ProWein to showcase the best of what the city can offer. With your food- and wine-loving colleagues and partners, you can enjoy a feast of wine tastings, special menus, cookery courses and parties, plus the popular Gourmet Walk. This year, some 50 restaurants, hotels and wine merchants will be taking part in the joint initiative of Messe Düsseldorf and the trade association Destination Düsseldorf. prowein-goes-city.de

DÜSSELDORF BEYOND THE MESSE If you find yourself with a few hours to spare, head out to explore Düsseldorf, beginning in the famous, cobble-stoned Altsadt (old town). This is home to the significant cultural venues of the city, such as the Opera House, Theatre and Concert Hall; some of the city’s most beautiful churches, like the 13th-century Sankt Lambertus Basilika; and the renowned Museum Kunstpalast. The contemporary destination MedienHafen boasts some stunning postmodern architecture, courtesy of Frank Gehry. Here you’ll find plenty of trendy bars and restaurants that are perfect for an after-show meeting with clients, or simply for relaxation.

Book your place at the Meininger’s International Wine Conference WINE IN MOTION ON 17 MARCH 2018

In a wine market in flux, what do you really need to know? This one-day conference focuses on the big questions: • What role do the different market segments play? • Where does wine sit among new consumer values? • Is there a wine trade without traditional supermarkets, retail stores and shopping centres? • What does the future hold? • How can the wine trade make use of customer data? Speakers will offer examples and insights that you can act directly upon from the wine trade, restaurant business and luxury goods sector. Your entrance ticket includes one valid entry to the prestigious Meininger Award – Excellence in Wine & Spirits, held that evening at the same venue. meiningers-conference.com

Düsseldorf is also known as an elegant shopping destination thanks to Königsallee, a boulevard of high fashion and extravagant wares, with a number of luxury hotels and top-class restaurants. For more recommendations, see Düsseldorf Marketing & Tourismus’s Best of Düsseldorf page: duesseldorf-tourismus.de/en/ best-of-duesseldorf

GETTING TO THE FAIR From Düsseldorf International Airport, take bus 896 or a taxi to the Trade Fair Center or CCD Congress Center Düsseldorf (10 minutes). From Düsseldorf ’s Central Station, take subway trains U78 or U79 (20 minutes). All admission and e-tickets include free transportation to and from ProWein on the Regional Transport Network Rhein-Ruhr (VRR). For more detailed information, including regulations regarding auto travel in Düsseldorf’s low-emission zone, see the ProWein website.

ACCOMMODATION THAT SUITS YOUR BUDGET Düsseldorf is a popular destination at any time, so it’s no surprise that rooms are in short supply during ProWein. There are, however, options available thanks to Düsseldorf Marketing & Tourismus, which has put together hotel packages that can be booked online or by contacting it direct. Rooms in private accommodation from under €90.00 ($110.00) a night can be found as well. The “FairFairs Hotel” programme ensures exhibitors receive preferential treatment for accommodation expenses, with a cap set on the room rates of participating hotels. As well as accommodation options, ProWein’s travel-planning portal offers booking options for flights, rail travel and car hire. business.duesseldorf-tourismus.de/ en/fair/prowein/

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PROWEIN GOES CITY 2018

FAIRS V I N I TA LY

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Vinitaly 2018 Italy shows its wines to the world, as 4,000 exhibitors and 150,000 visitors celebrate the nation’s stunning wine culture. DISCOVER VERONA For four days, Vinitaly offers the opportunity to discover the flavours, traditions and culture of Verona, as well as the best wines Italy has to offer. vinitalyandthecity.com

AUTHENTICITY ON OFFER Vinitaly presents Vinitalybio: the show dedicated to certified organic wine made in Italy and abroad organised in collaboration with FederBio — the Italian Federation of Organic and Biodynamic Agriculture. You’ll

find it in Hall 8. Also in Hall 8 is ViVit, organised in collaboration with the Vi.Te, Vignaioli & Territori Association, to bring together producers from around the world who want to express themselves through terroir.

MORE REASONS TO VISIT

hold numerous tastings throughout the fair. 3. Tastings of top wines Thematic, educational and prestigious vertical tastings. 4. Great cuisine It’s Italy! What more is there to say?

1. C onferences with experts Research and insights presented by experts are on offer throughout the show.

Hotels and accommodation For help finding the right place to stay, go to

2. Special shows Sommeliers, journalists and producers will

https://hotels.veronafiere.it/bookingvrf/ en/home.aspx

VINITALY

PHOTO: ENNEVI - VERONA FIERE

Verona, Italy 15 to 18 April 2018 www.vinitaly.com

FRANCE AT PROWEIN 860 REASONS TO VISIT THE FRENCH PAVILION HALLS 11 & 12

Our exhibitors, all with a genuine passion for their work, and the many new-generation vignerons and start ups.

New for 2018 Le Showroom #BonjourProWein, hosts a free-tasting of 100 wines & spirits, all exhibiting individually on the French Pavilion, selected by a professional jury of german, belgian and swedish tasters (hall 11 stand A159).

frenchpavilionbybusinessfrance.com/prowein2018 helping you to optimise your visit on the French Pavilion!

#BonjourProWein The claim Made in France, Made with Love conveys a promise rooted in the French food industryâ&#x20AC;&#x2DC;s values: the quality knowhow, the passion and commitment.

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POWER LIST UNITED KINGDOM

THE UK WINE COMMUNICATORS The demise of the wine critic has been over-reported, in the UK at least, where wine communicators are still influential. James Lawrence names the important names.

hat is the truth about our relationship with experts — whether they be economists, scientists or even wine critics? Was British politician Michael Gove really correct when he claimed that “the British have had enough of experts”, thus rejecting the notion that people with years of accumulated specialist knowledge are worth listening to? In the context of wine education, it is undeniable that the meteoric rise of consumerled review sites, apps and, of course, social media have had a strong influence in the way consumers share and access information. Some major national newspapers have cut their wine coverage significantly. “Twenty years ago, wine enthusiasts lived in an era of top-down information, displaying a level of unwavering trust in what they were told from experts such as Jancis Robinson MW,” observes Wine Intelligence analyst Lulie Halstead. “But today, there are an awful lot of ways to source opinions, most notably from your peers. I would argue that for Millennials in particular, a friend’s recommendation counts for far more than a critical endorsement.” Critics still play a part in influencing consumer choices — it’s just that the definition of a critic has changed. For most consumers in the UK, a critic is now simply a trusted source of information; younger consumers may make little distinction between “traditional'' wine critics and anyone else who recommends a wine. Yet the baby boomer generation may be far more likely to seek the advice of Tim Atkin MW than an iPhone app. Nevertheless, online information proliferates. Many influential communicators skilfully interweave wine knowledge into lifestyle essays designed to educate the reader, without them even realising. Indeed, as wine remains an intensely complicated and intimidating subject, serious enthusiasts will always look to experienced critics for help in navigating the wine category. Professional Instagrammers may play an important, and expanding role, but reports of the death of UK

wine critics have been grossly exaggerated.

Tim Atkin MW An award-winning columnist, judge, author and online communicator, Tim Atkin MW continues to be one of the most respected and widely known critics in the UK. While it is undeniable that industry stalwarts like Atkin have faced increased competition due to the ongoing democratisation of information, he remains a source of trusted information for wine lovers and professionals. His annual South Africa report, to cite one example, is widely regarded as the definitive guide to the country’s wine industry. Adopting the standard 100-point wine-scoring system, Atkin produces regular reports on regions such as Burgundy, Rioja and Argentina. He is also a member of the Three Wine Men — whose members include Oz Clarke and Olly Smith — who run consumer wine tasting events across the UK.

Christine Austin Christine Austin has revolutionised wine communication in the north of England. A former buyer, Austin has been writing about wine for The Yorkshire Post Magazine for more than a decade and has been awarded both the Lanson and the Roederer prizes for wine writing. A prolific blogger on her own website, Yorkshire Food & Drink, Austin is a formidable presence in a region sometimes unwisely overlooked by leading brands.

Fiona Beckett Fiona Beckett is a familiar face in British newspaper The Guardian, celebrated for her witty, informative essays on the opportunities — and pratfalls — of matching wine with food. A prolific blogger, columnist and author, Beckett has written more than 20 books on the subject

of food and wine, including Cooking with Wine, The Frugal Cook and Wine by Style. She also frequently appears in leading wine publication Decanter and at consumer events across the UK. Often eschewing the fine and rare, Beckett prefers instead to focus on wines readily available in supermarkets, making her the darling of major brands looking to expand consumer awareness in the UK.

Joe Fattorini Described by a leading British journalist as “the Attenborough of Oddbins”, Fattorini is undoubtedly the most potent — and charismatic — force in the wine media today. Presenting The Wine Show on a major terrestrial TV channel in 2016, Fattorini returned to British screens in January 2018 for a second series. His task, in collaboration with the other presenters — who include Jancis Robinson MW — is to achieve the (allegedly) impossible: making wine accessible and fun to a wider audience. In one of the first episodes, Fattorini drives around Santa Barbara, California, with comedian Gina Yashere, whom he tries to convert to wine. A bit like Sideways? Actually, it’s more entertaining, largely because of Yashere and Fattorini’s chemistry on screen. Later she returns the favour, coaching Joe as a stand-up comedian. Proof indeed that any conversation about wine must, paradoxically, largely avoid the topic or at least dull technicalities. Awarded both the IWC Personality of the Year and IWSC Wine Communicator of the Year accolade in 2017, Fattorini moonlights as a columnist for Harpers Wine & Spirit and The Buyer.

Dr Jamie Goode Jamie Goode has long been celebrated for his award-winning website (and parallel blog)

Matthew Jukes The author of 14 wine books, Matthew Jukes writes a widely read column for the Daily Mail’s Weekend Magazine, as well as a weekly column for MoneyWeek. Jukes also writes indepth regional reports and is particularly well known for his annual 100 Best Australian Wines — so much so that he was named Honorary Australian of the Year in 2012.

Helen McGinn A former Tesco wine buyer turned educator/author, Helen McGinn’s blog knackeredmotherswineclub.com is one of the most popular sources of wine information in the UK today. Fun, colourful and easy to navigate, her website appeals to a large swathe of young professionals by skilfully demystifying the subject, offering wine advice/recommendations often “hidden” among her entertaining personal accounts and lifestyle entries. McGinn is also a respected wine judge and has been the resident wine expert on ITV’s The Alan Titchmarsh Show. Her latest book, Teetotal Tipples, was published in December 2016.

are eagerly anticipated by her (generally) middle class audience in the Daily Telegraph and BBC Good Food magazine. Author of the entertaining How to Drink, Moore’s prose is engaging and informative.

Jane Parkinson Passionate and charismatic, Jane Parkinson can justifiably claim to be all things to all people. After several years writing for the trade publication, The Drinks Business, Parkinson decided to go it alone, quickly earning a formidable reputation for the quality of both her online writing and television work. Awarded the title of International Wine & Spirit Competition Communicator of the Year 2014, Parkinson continues to be a regular guest on BBC1’s Saturday Kitchen Live, in addition to writing columns for several magazines, including Stylist and Market Life. Effortlessly moving between the more traditional forms of wine media and her online/televisual work, Parkinson is proof that the two media can coexist as equals, rather than awkward bedfellows.

Jancis Robinson MW

Victoria Moore

Despite earlier claims about the expanding role of peer-to-peer recommendations on social media, Jancis Robinson MW remains a powerful force in the world of both online and traditional print wine communication. The author of numerous classic wine books, including the Oxford Companion to Wine, she also writes a weekly column for the Financial Times and is the publisher of JancisRobinson.com, a subscription-based website featuring work by numerous writers and experts. Robinson’s reach is truly global and in Robert Parker’s heyday she was considered his closest competitor in terms of influence and power.

One of the UK's leading wine columnists, Victoria Moore is an influential voice found throughout a variety of media, including broadsheet newspaper the Daily Telegraph, Olive Magazine, Radio 4 and Luxury, the Telegraph’s digital channel. Indeed, premium brands would do well to court Moore, a critic of many years experience whose recommendations

Founded in Copenhagen by entrepreneurs Heini Zachariassen and Theis Sondergaard in 2009, Vivino nevertheless deserves a mention as the most important and popular wine app in the UK. As of January 2018, no British developer has managed to match the app’s incredible reach — a database containing more than 3.5m different wines and over 7m users — nor its ability to engage and enthuse casual

Vivino

wine drinkers. More than 25,000 wine photos are uploaded daily, making it a formidable presence in the world of digital wine media. W

OTHER WINE COMMUNICATORS OF NOTE Jane Anson A respected professional journalist, Jane Anson is Decanter’s Bordeaux correspondent. She has written a number of books on Bordeaux and writes a monthly wine column for the South China Morning Post. Her most recent book is Wine Revolution: The World’s Best Organic, Biodynamic and Natural Wines. Oz Clarke Acknowledge as one of the world’s greatest wine experts, Oz Clarke has a formidable list of books to his credit, as well as multiple awards. He appears frequently on both television and radio in the UK. Jane MacQuitty Author, wine judge and writer Jane MacQuitty has written for the august The Times of London since the 1980s. Anthony Rose A member of The Wine Gang, which runs consumer tastings and events, Anthony Rose teaches and judges, as well as writing for publications such as Decanter and The World of Fine Wine. Olly Smith The ebullient Olly Smith is multi-talented, appearing on radio, television, in print and at consumer events. He presents Jeni & Olly’s West Coast Wine Adventure for the Food Network and Travel Channel, now in its second series, and in 2017 launched the A Glass With podcast. As well as three books to his credit, he is the wine columnist for The Mail on Sunday’s Event magazine, which reaches 5m readers a week. David Williams The wine columnist for The Observer newspaper, David Williams also writes for The World of Fine Wine and is another member The Wine Gang.

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The Wine Anorak as much for his literature on the subject of wine. Blogging about all things grape-related since 2001, Goode’s influence is international in reach, with a global audience of wine enthusiasts. A qualified scientist, Goode has not only written for specialist trade publications, consumer magazines and broadsheet newspapers, but is also the author of influential books such as Authentic Wine, The Science of Wine: From Vine to Glass and I Taste Red. Goode also has a weekly column in The Sunday Express.

WINE STYLES LOW ALCOHOL

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THE GRAPES OF FROTH As governments crack down on alcohol, non- and low-alcoholic drinks are proliferating, especially in the beer category. Sophie Kevany goes looking for wine alternatives. was a little ahead of its time in 2012, was already aware of the desire for lower alcohol beers when it began trials of Guinness MidStrength on tap. It’s now readily available in many pubs throughout Ireland and the UK. The move also meant it could take advantage of the UK Government’s drinks industry carrot, introduced in 2011, which allows a 50 percent reduction in duty paid on beers with an alcohol content of 2.8 percent or less. Although the opportunity is there, so far it’s been mainly the sparkling wine sector and some enterprising German companies that appear to be taking advantage of the demand in the wine category.

Sparkling virtue

Unlike normal wines, non-alcoholic products don’t violate advertising laws, and can be widely advertised.

here have always been alternatives to strong drink. The Virgin Mary alternative to the Bloody Mary, a shandy (beer with lemonade) and that 1980s classic, Aqua Libra, a herbal soft drink. Then, at some point in the past decade or two, bottles of reasonabletasting alcohol-free beer started to appear, with one of the best known European brands being the German brewed Erdinger Alkoholfrei. Launched in 2001, the drink covers all options by positioning itself as not just alcohol free, but an “isotonic thirst-quencher for sports enthusiasts” that contains “essential vitamins B9 and B12”. More recently, the UK’s wittily named Nanny State, made by BrewDog, has been garnering fans. It’s a non-alcoholic craft beer that tastes much like the real thing. Even spirits are catching on, with global drinks company Diageo buying a stake in Seedlip, a newly launched non-alcoholic spirit. What there has been a distinct lack of, many complain, is a decent alcohol-free wine, with

most efforts being described as either insipid, nasty, too sweet, having a strange mouth-feel, or all of those. Yet social movements such as Dry January suggest there is a market opportunity for anyone who can produce a good-quality product. There are many reasons for this — social pressures and health awareness, for example, but also possibly a backlash against the trend toward 10 to 20 years of rising alcohol levels. For example, a claret, as the British call Bordeaux, used to be around the 11 percent ABV mark. Now such wines are often between 12 percent and 15 percent, thanks mainly to the confluence of warmer weather and influential wine critic Robert Parker’s love of ripe “fruit bomb” wines, which have more sugar and more alcohol. The trend was not limited to wine. In the UK, in the 1920s and after World War II, the expression “one over the eight” was used to indicate drunkenness, meaning it took nine pints of (much weaker) beer to get a man drunk. Guinness, which

The German Sparkling Wine Association said annual sales of non-alcoholic sparkling wine have reached about 10m bottles, or a three percent share of the German sparkling wine market, Mintel reports. And, in November 2015, the German trade magazine, Lebensmittelzeitung, was reporting doubledigit growth of alcohol-free sparkling wine during the first eight months of that year. The impressive growth comes in the midst of a sluggish performance by Germany’s sparkling wine market, with sales volumes declining since 2012. In still wine’s defence, it should be acknowledged anything fizzy will likely make the leap to low or non-alcoholic versions with greater ease, thanks in part to ability of bubbles and low temperatures — so often associated with fizz — to mask any taste variations caused by alcohol removal. Global drinks analyst for research firm Mintel Jonny Forsyth agrees that fizz and cold might help to cover for missing alcohol, but says there are a few other factors involved in the popularity of fizz over flat. “It makes the taste a bit more interesting, yes, and younger people have been trained by drinking fizzy soft drinks,” he acknowledges. “But there’s also the fact that producers want to make these drinks aspirational and fun. A

Who is making it On the producer side, as Forsyth says, while Germany is ahead of the pack, Spain is also doing well. One of its biggest producers, Bodegas Torres, makes an alcohol-free range called Natureo; the dry white seems to get the best reviews. Intriguingly, another Spanish winery, Grupo Élivo, has even turned Forsyth’s health benefits suggestion into reality. Or, as the blurb for its Cardio Zero puts it: “[the wine] contains a high concentration of polyphenols and its habitual consumption is capable of reducing platelet aggregation and increasing vasodilation in the arteries, which reduces the risks of cardiovascular illnesses.” In France, non-alcoholic wines exist but the category has been, as Franck Crouzet, spokesman for major wine producer Castel, says, underdeveloped. One of the best known is Bonne Nouvelle, made by Vinadeis, while France’s other major producer, JP Chenet, offers a range of low-alcohol wines. Again, these appear to be mainly available in the UK. Spotting an opportunity and following the results of a Castel-commissioned study completed in 2015, the company launched two alcohol-free wines last summer called Grain d’Envie Syrah and Grain d’Envie Merlot via the Castel subsidiary company, Société des Vins de France (SVF). Sales of the two wines, from their launch in April 2017 to year end, reached a healthy 400,000 bottles, from a standing start. Castel’s outlook for the sector is more upbeat than Forsyth’s. “What we have seen since 2014 is a growing demand for non-alcoholic wines which is related to general wellness around food and life. We have been watching this area since 2014,” says Crouzet. In numbers terms, the Castel study estimates there are a potential 20m alcohol-free wine consumers in France. Asked what the sales outlook is for 2018, Crouzet says it was hard to tell. “Last year, in our best month, we sold 100,000 bottles. And in our lowest month, we sold 10,000 bottles, so it’s quite variable. But we hope to at least sell another 400,000 bottles.” He adds that the study showed both a lack of awareness and a readiness to try alcohol-free wines, with 35 percent of those asked being ignorant of them — compared with only three percent for nonalcoholic beer — while 44 percent said they

German producers like Henkell & Co are investing in the low/no alcohol category.

would be interested in trying one and 34 percent saying they would be ready to buy. Another benefit for Castel, less obvious to those outside France, is that it allowed the company to release adverts showing happy people drinking. To show anyone enjoying alcohol has been impossible since the country’s Evin Law (Loi Evin) was passed in 1991. In terms of best technical process, Crouzet says they avoid any form of distillation, using nano-filtration instead. “We start by making the best wine we can — and our work showed that monoceépage [using only one grape variety] is best for this. Then we filter out the alcohol” while retaining “the best possible tastes and aromas”. He says the cost to develop the process was very little. “We already had nano-filtration methods for some of our wines, for markets like Japan, which have zero tolerance for sediment.” In another production twist, an interview (by email) with a spokesman for Eisberg wines, revealed that although the company is using distillation, it is a much less aggressive sort; the presence of an alcohol-sucking vacuum means the temperature at which the alcohol evaporates is lowered, leaving more of the original aromatics and flavours intact. Creator Ben Branson, the developer of Seedlip, made it clear that he is equally obsessive (and secretive) about his alcohol management process. His goal is that the endproduct is not a poor cousin but an equally interesting alternative to traditional alcoholic drinks. “We use alcohol as a means of capturing and carrying the flavours we need,” he says. “Then we get rid of it by very gentle heating.” Branson agrees that much of the driver behind the new demand for alcohol-free drinks was “wellness”, but for he is focused more on the trend towards people wanting good-quality food and drink. Seedlip, he says, is about “the irrelevance of the alcohol content. People want great drinks.” Seedlip and tonic for breakfast, then? It’s certainly in the realm of possibility. Or an alcohol-free wine spritzer? Dry January 2019 could be a lot more interesting. W

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bit more of a treat, rather than a poor second option.” Forsyth also agrees that much of the current demand for low and non-alcoholic beverages is driven by what is referred to as the “wellness trend”, with people wanting to feel better, at the gym, work and in life generally. What’s also helping is that alcohol removal techniques have vastly improved. “Early outliers were not very nice,” he confirms. “They put a lot of people off and were very crudely made by boiling out the alcohol, along with a lot of the flavour. The Germans have really pioneered new methods where, for example, they stop the fermentation before it gets to the alcoholic stage, so the taste is much better now.” Asked about the future of the non-alcoholic wine category, Forsyth was optimistic shortterm, but less so long-term. “In 2018 I see lots of push on non-alcoholic wine, so there will be growth, but probably more percentage wise [from a low base], especially via supermarket brands like Tesco’s Private Label.” He wonders, however, how much potential non-alcoholic wine has. “Sparkling probably has more potential, but the non-alcoholic wine category as a whole might be a bit limited.” Longer-term success, he believes, comes down to “whether it fills a gaping need; non-alcoholic beer is still very refreshing. And they can make health claims.” On that note, he suggests wine makers wanting to make headway in the category should develop the health benefits aspect, beyond the mere absence of alcohol. “People really see red wine as healthy, so if you can carry that through it would be an option.” In line with Forsyth’s short-term outlook, current figures certainly look robust. In the UK for example, website betterRetailing.com reports that low-alcohol wine sales in 2017 rose by 8.5 percent, to £36.3m ($51.1m), compared with £33.3m in 2016. Notable winners include the low-alcohol B by Black Tower, whose sales jumped by 18.5 percent, while the German-made Eisberg alcohol-free wine — most of which is sold the UK — was up 77 percent, with sales reaching £7m. The trend is also there in other parts of Europe. A 2017 study by Mintel, which asked respondents aged 18-plus (who had drunk wine in the past three months) would they like more loweralcohol wine options, showed 29 percent in France saying yes. In Germany, 34 percent said yes, in Italy 34 percent, Spain 38 percent and Poland 33 percent.

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WINE STYLES LOW ALCOHOL - NZ

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LIGHTEN UP New Zealand winemakers are taking up the challenge of finding a way to lower alcohol naturally. Jeni Port reports.

Wellington, New Zealand

t is widely assumed that to make a wine lighter in alcohol, all you need do is pick the grapes early. Simple. If only it were. In Sauvignon Blanc, for example, what might taste smooth on the tongue at 13 percent alcohol becomes hard and acidic at 9.5 percent. The grape’s mouthpleasing grassy signature transforms at a much lower alcohol into something more vegetal, to the point of tasting unpleasant. With lower alcohols, wine tends to perform a 360° backflip in the mouth, which is a problem for New Zealand winemakers, who have ambitions to be the world’s top producer of premium lower alcohol — defined as less than 10 percent alcohol by volume — and lower-calorie wines by 2021. “We are seeking to own this category,” says Dr David Jordan, viticultural scientist and programme leader of lighter wine research at the 2017 Romeo Bragato Conference in Marlborough. The research is a NZ$17m ($12.3m) sevenyear study being conducted under the auspices of New Zealand Winegrowers with joint funding from the Ministry of Primary Industries. Now in its fourth year, the study has so far revealed that premium wine drinkers in New Zealand and five of its major wine markets — Australia, UK, Sweden, Canada and the US — have a growing taste for lighter wines. New Zealand is one of the biggest supporters of the category, with domestic lighter wines representing 2.6 percent of total wine sales. “For most markets,” states an interim report, “consumers of lighter wines skew slightly female, typically enjoy drinking premium wine two to five times a week, and are more likely than average to drink New Zealand Marlborough Sauvignon Blanc.”

Ambitions for smallness The New Zealanders are nothing but

ambitious with the project. The quest to make wines lighter in alcohol must be done entirely by “natural” means, without any resort to artificial manipulation. Eighteen makers are involved in the trials, mostly from bigger companies such as Villa Maria, Selaks (owned by Constellation Brands), Wither Hills (Lion Nathan) and Stoneleigh (Pernod Ricard). But also included is the leading player in the field, Marlboroughbased Forrest Wines, who has done more than any producer to explore the style. It is Forrest that those in the research programme looked to for guidance. “We started in 2006 and the first year we picked Sauvignon Blanc at 19 brix (10.6 baumé) and for us the wine was unripe,” says Beth Forrest, daughter of the winery’s founders, Drs John and Brigid Forrest. “We were battling high acid and there was a thin palate.” Beth and her father attended the International Riesling Symposium in Rheingau in 2007 and inspiration struck. “They [German makers] were struggling with rapid sugar ripening in their Riesling in the advent of global warming, and they had started trials on vine manipulation, taking the leaf ratio crop back to slow down soluble sugar accumulation in the vine,” explains Beth. Back home, the Forrests introduced vine leaf removal to shock the vines into slowing down their rate of sugar accumulation. Today, canopy reduction — vines are trimmed at veraison to half their size — is one of the mainstays of the New Zealand lighter wines programme, reducing alcohol, acidity and aggressive green characters. Looking at soil type and irrigation methods has also been rewarding. Deep soils with high waterholding capacity accumulate sugar more slowly, while short periods of no irrigation at key vine growth stages has been shown to

delay sugar accumulation without affecting yield or quality. When it comes to tasting the results of the lighter wine research so far, some producers are clearly doing better than others. Villa Maria 2016 Lighter Private Bin rosé (10 percent alcohol) is the company’s top-selling rosé, and tasters at the Bragato Conference were hard pressed to fault its colour, crunchy cranberry, raspberry flavour or length. The real test comes with a grape like Pinot Gris that depends on ripeness for its textural appeal. Two 2016 Gris wines shown in the tasting — Wither Hills and Stoneleigh — had a true-to-form profile. But Sauvignon Blanc was the most inconsistent in the tasting and appears difficult to deliver in a lower alcohol form.

Greater knowledge In the winery, winemakers involved in the trials have uncovered two important contributors to a quality lighter wine: the presence of oxygen early in a wine’s fermentation can reduce ethanol by around two percent, compared with oxygenstripped juice. Ethanol can also be reduced by manipulating how yeasts — one group of yeasts can respire sugar, a process that does not result in ethanol formation. The second major breakthrough has been the role of skin contact. Not only can skin contact influence wine texture and aroma, but it could be a potential substitute for the loss of texture and body in lighter wines. Once New Zealand has developed its lighter wines, it needs to sell them. Originally labelled “Lifestyle Wines”, they’re now known as “Lighter Wines”. Will they take off? There are three more years of trials and research before the market will decide. W

Sparkling with real 24K Gold Flakes. gold.bluenun.wine We would like to welcome you.

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N E W S A N A LY S I S RNDC

CUTTING OUT THE MIDDLE Further consolidation within the wholesaler segment of the US market could mean less opportunity for mid-sized wineries. Jeff Siegel reports.

n the late-1990s, the US wine business was still fragmented. Most of the big producers weren’t especially big, there were almost no big retailers and certainly none nationally, and the country’s wholesalers were almost all small or regional. The wine business, says Paul Tincknell — a partner in Tincknell & Tincknell, a wine sales and marketing consulting firm in California — was still run much the same as it had been since the end of Prohibition: a network of family, friends and gentlemen’s agreements. Two decades later that has changed dramatically, perhaps no more so than in the wholesaler sphere. The small, regional companies are gone, swallowed up in a continuing series of mergers and acquisitions that culminated at the end of last year. That’s when RNDC, the second-biggest distributor, merged with number three Breakthru Beverage — itself formed by a merger of two top-10 companies in 2016. “The days of the gentlemen’s agreements are over,” says Tincknell. “What started in the late 1990s has continued. The wine business has corporatised and everyone understands that it’s a business, and maybe in a way that it has never been.”

Groundbreaking Today, in the 18 months after the groundbreaking merger between then number four Glazer’s and number one Southern, the 10 biggest distributors in the US have become eight. Southern Glazer’s and RNDC-Breakthru will control 55 percent of the US market. Young’s Market, which operates mostly in California and the west,

because big retailers like supermarkets are more important than ever, with grocery stores alone selling about half of all the wine in the US. Or is it some combination of those three — or all three together? Distributors matter even more in the US because they’re mandated by law in every state, part of the three-tier system that governs alcohol sales. Each bottle of wine sold to retail or restaurants, with only a couple of exceptions, must pass through a wholesaler as it goes from supplier to on- or off-premise. “It’s hard to see how this doesn’t tie in with the biggest suppliers, like Gallo, Treasury and Constellation, getting bigger,” says Jeff Carroll, vice-president, product and marketing for Compli, a beverage law compliance consultancy in California. “They need to have bigger wholesalers to work with, because they have bigger deals to broker.” In fact, that’s the approach that companies like Southern Glazer’s and the new RNDCBreakthru say they’re taking — and analysts agree. “I think RNDC thought it had to do “It’s hard to see how this doesn’t tie something,” says Tincknell. “From its perspective, it needed in with the biggest more penetration in more suppliers, like markets if it were going to Gallo, Treasury, compete with Southern Glazer’s. and Constellation, And, as part of this, it was able getting bigger.” to reduce competition.” The combined RNDC and Jeff Carroll, vice-president, Breakthru — which didn’t have product and a new name in January — will marketing, Compli operate in 30 states, with

becomes the third-biggest US wholesaler with sales of about $3bn — one-tenth the size of the largest two. The RNDC-Breakthru merger is a continuation of something that’s been going on for almost two decades, including the deal that formed RNDC in 2007. Talk to analysts, producers and retailers, and they agree that a second tier topped by two massive companies could result in significant changes in how wine is distributed in the US. “This kind of merger provides significant efficiencies in the distribution of mass-marketed wines,” says Tom Wark, executive director of the National Association of Wine Retailers. “So it’s a beneficial move for a relatively few number of wineries and a large number of consumers. However, for the vast majority of wineries in the United States and for those consumers who seek hard-tofind, small-production wines, it’s a move that provides no value at all and will make smallproduction wines more difficult to find in the wider marketplace.”

The new marketplace It is the ultimate chickenand-egg question. Does the wholesale side of the US wine business need to get bigger to meet the demands of the biggest producers, who are also getting bigger? The 10 biggest producers control 90 percent of the US market. Or do the wholesalers need to get bigger

So how big is big? “That’s the fear of the 800lb gorilla in any industry,” says attorney Lou Bright, the former executive counsel of the Texas Alcoholic Beverage Commission, which enforces the state’s liquor laws. “Do companies get so big that they have the ability to control the competition from tier to tier? Will they behave commercially in ways that aren’t convenient?” Keep in mind that no one is saying that the two biggest companies are anything

“All of those things are already built into the price of the wine for big producers,” says Grahm, whose company was as big as 450,000 cases before he sold the Big House brand in 2006. “Almost every supplier who is that size is under capitalised and “This kind of doesn’t have the resources that merger provides big distributors require.” significant The dead zone Analysts are worried efficiencies in the about two other things are No one will be affected more distribution of also worrisome. First, that by those changes than medium- mass-marketed the biggest distributors will sized wineries — those that wines.” start to cherry-pick smaller produce between 25,000 and wholesalers for purchase, either Tom Wark, 150,000 to 200,000 cases. “If executive director, in states where they don’t have you’re a very large supplier or National Association a presence or in states where a very small supplier, you’ll of Wine Retailers there is a strong, but smaller prosper under the new system,” competitor. Breakthru did that says Randall Grahm, who runs in New Jersey before the RNDC deal, buying the 45,000-case Bonny Doon Vineyard in a company called Allied. RNDC formed a joint Santa Cruz, California. “It’s the mid-size venture with Oklahoma’s Central Liquor just wineries that are going to have a problem. before it combined with Breakthru. Every time there is a merger, and the The second? That the actual focus of getting distributors get bigger, it creates a dead zone bigger is not to serve big wine companies, but for mid-sized wineries.” to work with the biggest spirits producers. Which makes perfect sense, given that the This approach would further push smaller wholesalers say they need to get bigger to wine companies to the background; in this, better serve the biggest producers. Those that it’s probably not a coincidence, say several don’t produce supermarket-sized amounts of observers, that Bacardi moved to Southern wine often fall by the wayside, and a variety of Glazer’s shortly after its merger. medium-sized wineries have been shed after For those who appreciate irony, Carroll says every distributor merger. Yet even the biggest there’s an opportunity in these mega-mergers distributors want some small wineries in for those who want to reform the three-tier their portfolios, to add a touch of distinction in system, making it easier for consumers to buy a lineup top heavy with mass-market brands wine directly from wineries. from the biggest multi-nationals. “That makes it really hard for suppliers, This is much different from 20 years especially the smaller ones, to get the kind of ago, says Tincknell, when there were small market access they need,” he says. “That will distributors to work with small wineries, put more pressure on regulators to open or medium distributors for the next size up, expand ‘exceptions’ to the three-tier system, and big for big. Grahm adds that there are whether that’s direct to consumers or direct additional burdens for medium-sized wineries to trade. Smaller suppliers will need to find that stick with the new merged wholesaler — ways around the two biggest gatekeepers.” He and that doesn’t include getting lost in a book says the unintended consequence for the big with thousands of brands. wholesalers here is that it will certainly lead These burdens, mostly financial, include to changes to the three-tier system they work working on smaller margins, and the biggest so hard to preserve. “Those wishing to make distributors expect their suppliers to pay a case for direct shipping and self-distribution slotting fees and bill-backs, to subsidise wine exceptions and against monopoly protection lists and table tops, and contribute to other laws will have much more persuasive marketing programmes. It’s one thing for the arguments.” multi-billion dollar Gallos and Treasurys to Which is certainly not what the mergers do that; it’s something else for a 75,000-case were about. W producer whose cash flow is much different. other than big and neither the US government nor any state has even hinted at legal action to control or roll back the combinations for violating anti-trust laws. If there are consequences, say analysts, they will be more subtle.

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revenue of more than $12bn; California is the only major market that it won’t serve. Southern Glazer’s serves 36 states and has about $17bn in sales. The two behemoths will compete in 43 states; the only important states in terms of sales where they won’t compete are California, Massachusetts and New Jersey. “The industry is evolving rapidly,” says Tom Cole, president and CEO of RNDC. “As wholesalers, we must be relentless about innovation in everything we do, including how we navigate new and efficient routes to market that provide convenience for our customers and consumers. This deal isn’t simply about growth. It’s about innovation, agility and cultivating the best talent and creative thinking of our associates. Our vision for the new company is to be the leader in building brands with our suppliers and customers, large and small, through best-in-class execution, data transparency, stakeholder connectivity and operational efficiency.” The changes have come so quickly, says Breakthru president and CEO Greg Baird, that his company saw an opportunity it couldn’t pass up. “Strategic growth has been part of Breakthru’s overall strategy since we formed,” he confirms. “Industry trends and the greater consumer and retail environment continue to show us that there are compelling reasons to continue our growth by uniting our organisation with RNDC — in particular, the chance to continue to invest in our business to support ongoing innovation. By creating a more efficient operation and becoming a leader in a rapidly evolving industry, we believe that this merger will bring great advantages to our suppliers, our customers and the consumers who enjoy the products we represent.”

C O M PA N Y P R O F I L E DIEVOLE

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THE DIEVOLE IN THE DETAIL The work being done at Villa Dievole in Chianti Classico shows the path to the future. Felicity Carter paid a visit.

lberto Antonini sits in the bright dining room of Villa Dievole, in the southernmost part of Chianti Classico. “This property was purchased in 2012,” says the globetrotting wine consultant of the 600 ha estate, which includes vineyards, olive groves and an historic villa. “The family who used to own it were not very happy with the economic results.”

The view from Dievole

From the ground up The first thing the new owner, Argentine petrochemicals billionaire Alejandro Bulgheroni, wanted Antonini to do was look at the vineyard soil. “The vineyards are very good terroir, but they had conventional management with a lot of chemicals,” says Antonini. “We moved more towards traditional vineyard management and achieved a deeper root system and a lot more biodiversity. It has resulted in more interesting wine.” He pours the Dievole 2013, his first vintage. It has savoury notes and fine acidity, the best Chianti Classico can offer. The 2015 vintage, fermented in concrete and aged in cask, is even more structured and complex. “Too many oak barrels is an insecurity,” says Antonini. “We need to recover our long, historic tradition, lost during the time when the market was telling you what to do. We don’t want to copy France.” Dievole’s broad wine range has slimmed down, too. Now there are Chianti Classico, Riserva, a Gran Selezione and a yet-to-bereleased premium IGT white. The Le Due Arbie second tier is simply labelled as “bianco”, “rosato”, “rosso” and Chianti Superiore. Over time, there will be more terroir-specific wines. “We are not interested in growing grapes that don’t belong to Chianti,” says Antonini. With the help of specialist Pedro Parra, he is also analysing the estate’s micro-terroir. In Italy, he says, this aspect does not receive enough attention. The old blue and gold label is also gone, replaced by one celebrating Dievole’s 1,000-

year history. It was originally founded “as a contract between two farmers and the Church,” explains marketing and export sales director Giovanni Mazzoni. “The rent was two chickens, three pieces of bread and six dinars.” The rent is slightly higher today: guests who come to enjoy the now-luxurious amenities pay well over €200.00 a night. What’s happening here is a microcosm of what’s happening across Italy: a move back to autochthonous grapes, historic winemaking, more attention to detail and premiumisation. Paradoxically, however, while focusing on the local conditions at Dievole, Antonini is helping Bulgheroni to develop an international winemaking portfolio.

Global portfolio Antonini says he met Bulgheroni — whose deep interest in sustainability came from years of working in oil — after he was asked to see the magnate’s 2,200 ha estate in Uruguay. Since buying his first winery in 1999, Bulgheroni has acquired properties in Argentina, Tuscany — Dievole, Podere Brizio, Poggio Landi and a vineyard in Bolgheri — Bordeaux, California and the Barossa Valley. Yet as Elin McCoy from Bloomberg notes, none of them “qualify as the kind of highstatus estates most billionaires invest in”. Dievole was apparently “very rundown”.

Each property is being revitalised to the highest standards. According to McCoy, Bodega Garzón in Uruguay, opened in 2016, cost $85m to build and includes a luxury hotel and a wine club that costs $180,000 to join. Everywhere, Bulgheroni’s and Antonini’s ambition is to be transformative. The property at Bolgheri is a good example. The region’s wines have long been associated with simplicity, intensity and power. The new winemaking team want to focus instead on drinkability, although they will continue to use international grapes. “We don’t make wines for the market. We want to find a market for the wines that we make,” says Antonini. This raises the question of how the business works commercially. Without a market-oriented approach, it will take a while before wine sales alone produce a healthy return on the 156 ha of restored vineyards at Dievole and the 200 ha newly planted ones at Garzón, or the other investments such as Podere Brizio in Montalcino. Except that the bottom line doesn’t rely solely on wine. According to Forbes, the 74-year-old Argentine not only has a net worth of $3bn, but has also stated publicly that he believes in agritourism. Hotels such as Villa Dievole, or the one at Podere Brizio, run by a mother-and-son team who treat guests like family, are a significant part of his vision. He seems to be on to something: according to Reuters, Italian agritourism is booming, with a 15 percent boost in tourists from the US alone in 2017. More than 5m tourists a year flock to Italy solely to experience its famous food and hospitality. The trend is global: in 2017 the UN’s World Tourism Organisation wrote that “gastronomy and wine have become key components for experiencing the culture and lifestyle of any destination”. If anything, this ancient property signposts the way to the future — caring ever more about the details of wine production, while giving people a chance to experience where the wine comes from. W

SPECIAL REPORT GAVI

Piedmont’s great white One corner of Piedmont has everything – fashion, culture, sport and renowned foods. Most of all it’s the land of Gavi DOCG, home of one of Italy’s most treasured white wines.

hen wine drinkers think about Piedmont, many think of red wines: Barbera, Barolo and Barbaresco. True wine lovers know to add one more name to the list – Gavi, popularly known as ‘the great white wine’ of Piedmont. It owes its full name of Cortese di Gavi to two very different stories. One is obvious: Gavi is the small town at the centre of the wine’s production zone, so it makes sense for the wine to take the geographical name. Cortese is, of course, the variety of grape from which it is made. But there is another, much more romantic explanation. Gavia, daughter of Clodomir, King of the Franks, fled from her father’s court in the company of a young knight. Crossing the border into Piedmont, they found a place that was safe from the Frankish army and built a castle, to which she gave her name.

‘Cortese’ refers to Gavia’s courteous ways. While the story is merely a legend, the grape itself has been honoured in the region since as long ago as 972AD. It’s always been associated with the nobility, because it was grown by the noble families of Genova who had properties in the area. An autochthonous variety, it was later used to replant the region after the ravages of Phylloxera. Just what is it about this white grape that has made it so valued for more than 1,000 years?

REMARKABLE TERROIR The historic area of the Gavi DOCG is the most southern region of Piedmont, lying between Liguria and Lombardy, around 30 kilometres from the sea. Situated between the plain and the sea as it was, it functioned as a historic

borderland, separating the Aleramic and Obertenga families who fought for control of Liguria and Lombardy. Gavi itself has always been of strategic importance, and its historic fortress is now a major tourist attraction. The town also played a role as a trading hub for Genoa, with important roads criss-crossing the territory. Today, it’s well-known for its links with fashion, sports, shopping and culture. But it was the natural beauty of its undulating landscape of hills and valleys, covered in woods and vineyards that brought Genoa’s nobility to the area in search of a peaceful region in which to relax. The region today is dotted with impressive reminders of those families, including castles, villas and palaces. They also left behind their culinary heritage, a cuisine heavily tilted towards fish and vegetables. And the land beneath their feet was perfect for growing the native variety, Cortese, whose wines were a perfect match for their dinner. Underlying the north of the region are red ferrous soils, of gravel mixed with clay, a legacy of ancient alluvial activity. In the central strip, alternating soils of marl and sandstone bind Gavi with Serravalle Scrivia and San Cristoforo. In the south are found fossil rich white soils, composed of clav-calcerous marls. This end of the Gavi DOCG lies in proximity to the Apennines, so the entire terroir is unique: sheltered vineyards, sea breezes, mountain snow and ancient soils. Cortese is mainly grown in a hilly area of the southeast, part of the province of

THE 11 DISTRICTS OF THE PRODUCTION AREA:

FORTY YEARS OF PASSION AND DEDICATION 1974

avi wine was awarded the G Controlled Designation of Origin.

1993

T he Consorzio Tutela del Gavi was founded.

1997

T he grapevine clonal selection project was launched.

1998

G avi wine becomes DOCG certified.

2002- T he Consortium begins to 2004 systematically verify the grape vines belonging to the Gavi denomination. This immense project was the first of its kind to be undertaken by an Italian consortium. 2007

T he Consortium develops detailed scientific maps of the territory.

2011

T he GAVI 972 project is launched, to promote the region through social media. (www.consorziogavi.com)

2014

T he DOC turns 40 and a celebratory label is created.

2018

T his year is the 20th anniversary of the DOCG and a special label will be launched.

denomination. Its extensive Alessandria. When vinified, it efforts have ranged from is pale straw-coloured in the the preparation of clonal glass with hints of green, and selections to carrying out offers a taste of white flowers, • Bosio ampelographic and land bitter almonds and citrus. • Carrosio surveys. Its flavor is paradoxically • Capriata d’Orba Wines from the region are round, yet dry and mineral. • Francavilla Bisio sent to the media and given The Riserva is more golden • Gavi star treatment at international and more intense, all while • Novi Ligure events. Since 2013, the retaining the characteristic • Parodi Ligure Consortium has been working freshness. • Pasturana with the Italian Sommelier Although plenty of intensive • San Cristoforo Association to undertake a selection and viticulture has • Serravalle Scrivia blind tasting to choose the been done in recent decades • Tassarolo most representative Gavi for to improve quality, there’s no its institutional label. doubt that Gavi was always highly valued To celebrate its fortieth birthday, historically. The first written record appears the Consortium launched a new in 1659, when a farmer from Montaldeo communication project in 2014, Storie Castle wrote of planting Cortese vines. del Gavi, il Grande Bianco Piemontese, In 1789, Marquis Giovanni Andrea Doria a multisensory experience weaving wrote to his manager about his intention storytelling, wine tasting, culture and to send the wine to America. That same food together, to showcase the treasures year, Count Nuvolone, deputy director of this small corner of Piedmont to the of the Turin Agrarian Society, included a world. description of Cortese in a study of the varieties grown in Piedmont, and in 1856, Marquis Cambiaso planted Cortese at his FEASTING AND estates of La Centuriona and La Toledana. CELEBRATION The grape was clearly of great interest to people in the region, not just for its Among the many events organized by taste, but also because Cortese is disease the Consortium is the prestigious Gavi resistant. In 1869 the ampelographic Prize LA BUONA ITALIA at the end of committee of the province of Alessandria May, which recognises and rewards best declared it suitable for sparkling wine, and practices in the enhancement of Italian today, nearly 150 years later, frizzante, and food and wine. The annual shortlist is a spumante wines are produced from the veritable who’s who of Italy, including 1,500 ha of vineyards surround Gavi, along museums, artists, winemakers and tourist with the still and Riserva examples with facilities. which people are most familiar. Another important event is Di Gavi in Gavi has been a DOC since 1974. In Gavi, a festival that takes place on the last 1998, it obtained the DOCG denomination. weekend in August, where the Gavi DOCG Today, more than 85% of the production is comes together with theatre, a parade, exported to more than 70 countries. food and a light display to celebrate the past and future of the denomination. This year the celebrations will be bigger THE DEFENDERS still, because 2018 is the twentieth anniversary of the founding of the DOCG, The Consorzio Tutela del Gavi, founded when the Gavi DOCG cemented its place in 1993, exists to support the entire supply as the home of Italy’s great white wines. chain, including producers, winemakers and bottlers. Since its founding, it been is one of Italy’s most productive and strategic consortiums, working to maintain and improve quality throughout the 11 municipalities included in the

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THE WINE DETECTIVE AN INT E RV IE W W I T H M A U R E E N DO W N E Y

BY RO BERT JOSEPH

blue stain should be like this and the pattern should be like that, and the ink should rest like this and this is what the paper should feel like… I have a good memory and can say “that’s not right”.

aureen Downey is the world’s leading expert on counterfeit wine. After managing top New York restaurants, she joined the wine auction sector where she developed her interest in wine fraud. She has acted as a consultant on several high-profile cases for the US Department of Justice and FBI on their investigation into Rudy Kurniawan, and with billionaire collector Bill Koch in his dispute with Eric Greenberg. She now teaches her patented Chai Authentication and Wine Valuation methods to students across the world.

MEININGER’S: How did you get involved in the Rudy Kurniawan saga? DOWNEY: When Christies and Zachys split in 2002, I became the first employee at Zachys Auction, so I set it all up. Rudy phoned and asked: “Can we meet? I want to talk to you now that you’re at Zachys.” When I was at Morrell, he was a young guy who bought California Merlot. We arranged to meet and he was just a different guy. All of a sudden, he was cool. He wasn’t the geeky kid whom I found before. And he really, really wanted to work with Zachys because he was going to be a player.

MEININGER’S: How did you get into wine? DOWNEY: I had a French boyfriend from when I was 16, so I spent a lot of time in France. I studied hospitality at Boston University and did a two-week trip through Burgundy and Champagne. I was also on the university team that won the Windows on the World International Wine Competition. When I graduated, I became a certified sommelier and took the advanced master sommelier exam on crutches at the age of 23. I did so well on the tasting that Fred Dame [President of the Court of Master Sommeliers] told me that I was one of the best natural tasters he had ever seen and the court helped me to get a job managing Tavern on the Green in New York. Then I worked in Lespinasse and Felidia but, unfortunately, living in restaurants, you don’t have much of a life so I figured I’d take the summer off and get a job at a wine retailer so I could have a good discount. I went into Morrell [a top Manhattan store] and they hired me to be manager, which was not what I wanted. I detested retail. So I was moved into the auction department.

MEININGER’S: And you smelled a rat? DOWNEY: The whole thing rubbed me wrong. I was thinking, I haven’t seen you for eight months and you’re totally reinvented yourself? And he had a posse, people hanging on to him. The whole thing was so weird and I got a bad vibe so I said: “Send me a list and we’ll see what we can do.” He didn’t send me a list, he sent me a case of Le Fleur and Pétrus from the 1950s. I thought, so this young guy’s sent me this case of wine with all these ridiculous old bottles; he never said his father or anyone in his family was a collector. If he had done that, he could have pulled off this scam for a lot longer. I asked him for a receipt. All he had was faxes from China. MEININGER’S: Did you share your concerns? DOWNEY: None of the journalists would say anything because [they] didn’t want the party to end. It was more fun for them not to ask any questions and continue to get the invites. I was freaking out. It was the 2005 consignment [auctioned by Acker Merrall & Condit under the headline “Amazing Grace”] and when Rudy Kurniawan turned up with $34m worth of wine, that really made me freak out. Why was nobody asking about receipts? The first journalist whom I could get to listen to me was Jancis Robinson when I met her in 2006.

MEININGER’S: The auction department was where you developed your interest in counterfeit wine? DOWNEY: I remember in early 2000 reaching to the back of the inspection table in the warehouse to grab a bottle of Pétrus and when I lifted it, it was light and totally wrong. It was cheap Chilean Merlot glass. Then a buyer faxed in questions about some large-format 1945 Gruaud Larose we had on consignment. He wanted photographs and to know things such as how deep was the punt and was there any writing in the bottom left-hand corner of the label. I was taking the photographs when Peter Morrell asked me what I was doing and for whom. When I told him, Peter said: “You know, they say he counterfeits wine.” That’s when I worked out that he was asking all these weird questions to make sure that he wasn’t buying his own counterfeit. That’s when I started noticing all those details on the authentic bottles. When I see that the

MEININGER’S: Why were so many people so easy to fool? DOWNEY: People are greedy. They trust the auction houses to have vetted the wine. You’ve also got to remember that wine auctions only became legal in New York at the end of the 1990s. MEININGER’S: How much Kurniawan wine is still around now?

PHOTOS: MYRNA SUAREZ

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“Nobody I’ve seen is making old and rare counterfeit wine right now. What they’re making is recent releases.”

that we made up. We found it in a lot of different places and it matches with all other estimates of fine wine or fine luxury goods counterfeit according to Interpol.

DOWNEY: There’s about $550m worth in circulation. MEININGER’S: How many bottles do you reckon that is? DOWNEY: Many, many, many thousands. Here’s the problem: if I have a client with counterfeit wine, [the auctioneer] will give them their money back after they sign an NDA and return the bottles. We know those bottles aren’t being destroyed. If they were, it would be a massive PR boom [for the auctioneer]. But they’re not willing to do that. So the wines end up getting recirculated. They get sold in Asia. They get brokered.

MEININGER’S: But you’re talking about luxury goods. DOWNEY: Downey: I focus on counterfeit wine in the luxury market, but when I talk about 20 percent, we’re talking about all wine — globally. MEININGER’S: The OECD published a report in 2016 that gave a figure for all counterfeit products of 2.5 percent. That’s a long way from 20 percent. DOWNEY: There’s a lot more counterfeit wine out there than people want to believe. We launched Wine Fraud.com on 30 September 2015 and we’ve had close to 300 wine frauds reported about counterfeit and adulterated wine. I’m probably exposed to more than 1,000 bottles of counterfeit wine a year. Month after month, I see reports of counterfeit supermarket wine from the Languedoc in France. Last week it was half a million bottles of counterfeit supermarket Bordeaux.

MEININGER’S: The global wine auction market has shrunk since 2010, from about $400m to around $340m. In China because of the anticorruption campaigns, it is tougher today to show off with bottles of Lafite than it was five or six years ago. DOWNEY: But prices continue to rise on a lot of these wines. I’ve found a new source of counterfeit Domaine de la Romanée-Conti in California and in Arizona in the past week. The vast majority of counterfeit wines are not sold in legal channels. They’re being brokered by people who are unlicensed.

MEININGER’S: Bordeaux produces 500m bottles a year. Half a million counterfeit bottles over two to three years represents less than 0.05 percent of the annual crop DOWNEY: Counterfeit wine isn’t wine that’s just mislabelled, it’s also [a big, commercial Californian producer] screwing around with his vintage. It’s somebody in France screwing around with the grape variety. It’s somebody screwing around with an AVA. There are many different types of counterfeit wine. Adulteration is counterfeit. Misrepresentation is counterfeit. All these things go into that 20 percent.

MEININGER’S: If you’re buying wine from somebody who isn’t licensed, you know you’re running a risk. How many are buying in this way? DOWNEY: Most don’t know. They don’t ask if vendors have a licence. MEININGER’S: In 2014 you told Decanter that reports that trade was “awash with fakes” were way off the mark. Have you changed your mind? DOWNEY: The problem has got a lot worse and I’ve been working in Europe and in Asia a lot more. A lot of [the Rudy Kurniawan wine] had already been dumped in Asia in 2008. There were a couple of restaurants that opened in the United States around 2008 to dump counterfeit wine, so a lot got sold. Now, nobody I’ve seen is making old and rare counterfeit wine right now. What they’re making is recent releases.

MEININGER’S: Yes. But more than 50 percent of US wine is in the hands of about five companies. So are you saying that companies like Gallo and Constellation are selling fake wine? DOWNEY: Well, they didn’t mean to, but Gallo [had an issue with mislabelled Red Bicyclette Pinot Noir]…

MEININGER’S: You have acknowledged a figure of 20 percent of all the wine being counterfeit. Is that value or volume? DOWNEY: Probably value, because all the stats we’ve been able to uncover talk about 20 percent in terms of value. That’s not a number

MEININGER’S: Yes, but that was one occasion where they were tricked by a French supplier. More than 95 percent of what they sell is not French. DOWNEY: You’re forgetting a major, major thing. Most of the counterfeit

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“What people don’t realise is that all these counterfeits do affect them; they raise the price of wine.”

them to address this. Most producers in Burgundy really can barely afford to employ people to deal with counterfeit issues. DRC still has somebody on staff who retired and came back to do nothing but deal with them. Most of these guys can’t afford that.

wine that is sold in the world does not fit into any of these statistics because it’s being sold out of a car boot or by a broker selling tens of millions of dollars of wine a year. Sales taxes aren’t paid and there’s no government oversight of it. I have a really hard time with global stats because they don’t take account of the sale of most of the counterfeit wine in the world.

MEININGER’S: You’re now working with Blockchain on a new project. In theory, if you have enough data points on a bottle of wine at the time of its release, and if everybody along the route to market uses the Blockchain, it will be almost impossible to counterfeit a wine. Is that correct? DOWNEY: A thousand percent. You can take it a step further because Blockchain is being used in farming to prove traceability from dirt to product. So we can avoid problems like we’ve seen happen in France. In Italy, the new DOCG tags have UV and those are expensive. For the same exact amount of money, we can offer this Blockchain security that will prove that that bottle is exactly what it says it is.

MEININGER’S: Are people in the US market buying fake Barefoot in huge volumes from car boot sales? DOWNEY: Not in the United States, but they are in China. MEININGER’S: But what’s happening to all of this fake wine? The British, for example, drink 20 or so litres of “real” wine per head. Forget whether tax is paid for on it or not, when and where is this counterfeit wine being drunk? DOWNEY: I don’t know. For one thing, a lot of the highly tradable counterfeits are not being drunk.

MEININGER’S: Retailers accept that a proportion of their stock is stolen by shoplifters and include that in their costs. Is fakery a big enough problem for most big producers selling wine at under $10.00 to worry about? DOWNEY: I don’t know. Unfortunately, wine isn’t like fake pharmaceuticals that kill 100,000 a year. People just don’t have much sympathy for buyers of counterfeit wine. They only care about something when it affects them. What people don’t realise is that all these counterfeits do affect them; they raise the price of wine. All of that said, the Blockchain technology we’re looking at is more targeted at fine wine producers than regular producers.

MEININGER’S: Are you training people to spot fake supermarket wine as well as fine wine? DOWNEY: We look at all the aspects. I walk people through all the different types of counterfeit. For example, in China, there’s a lot of funny counterfeits where instead of Romanée-Conti, it’s Romany Candy. Or La Tâche in a Bordeaux bottle with a screw cap. All those things count. You know, Penfolds is Penfoyd. Then you have the mislabelling with the wrong AVA or whatever. I say, look, all those things are counterfeit and important, but we’re only going to focus on this little section over here. I can only take a bite out of the issue as I think I can swallow, and for me that’s trying to train people in what I’m good at, which is fine wine — wine that is traded in the secondary market.

MEININGER’S: And why is Blockchain better than some form of hologram proof tag? DOWNEY: You can have a couple of thousand bottles of fake wine that are visually authentic because they have the counterfeit proof tag. Very few people actually do the scan. So the important thing was to find a solution whereby the authentication occurred at the transfer of ownership, because when working in auctions or retail or broker or whatever, every time a wine is sold, it must be authenticated. If you can spend a little bit more and have that done once correctly, that bottle will be authenticated for the rest of its life. I don’t want to have to trust anything other than data.

MEININGER’S: Is it fair to say that the producers haven’t done enough to protect consumers? DOWNEY: That is completely unfair. Going back, it’s always been the producers who have tried to be on top of this. Château d’Yquem, for example, has had anti-fraud holograms since 1988. Château Pétrus has changed its labels slightly every year for decades. The producers who are big enough to be able to have a voice — a lot of their hands are tied because they are now owned by corporate entities that will not allow

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TOP 100 @ PROWEIN 2018

The Best of Spain 2018 The results of the third annual Best of Spain: Top 100@ProWein tasting are out – and there are some wonderful surprises among them.

his year, Best of Spain 2018: Top 100@ Prowein, the presentation of Spanish premium wines, enters its third round. It boasts an even greater scope and diversity and is more fully representative of what Spain offers than the Best of Spain editions of the years 2015 and 2016. The rush of visitors during the last couple of years has led to a sharp increase in entries. As a result, a significantly greater number of wines were tasted for this year’s edition – a total

of 348 samples were up for assessment and were blind tasted at five tables in the course of two days. Once again, Peer Holm, wine consultant and expert for Spain, and David Schwarzwälder, specialist journalist, were in charge of the tasting. The event took place at the premises of Meininger Verlag in Neustadt an der Weinstrasse, Germany, in November 2017, supported by the editorial staff of Weinwirtschaft, Germany’s premier wine trade magazine.

THE JUDGING PROCESS Owing to the enormous range of different wines, the tasters faced a complex challenge and were requested to submit rigorous and uncompromising judgements. Nevertheless, the selection process was more difficult than ever, and a great number of wines only missed being short-listed by a very narrow margin. But the result was a very good one: Wines from 25 appellations made it into

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The Bulls As the bull is a symbol of Spain, we’ve chosen it as a mark of wine quality. The more bulls you see next to a wine, the better the wine. Every wine can achieve up to three bulls. Of course, the price category was taken into account during the tasting,

so when you see multiple bulls shown for a wine in the +€12.00 category, you can be certain that it’s a better wine than a threebull wine listed in the under-€3.50 category. But ultimately, the bulls represent the price quality ratio for each wine.

A very good price to quality ratio An excellent price to quality ratio The wine represents the top quality of its price category

The Tasting Zone Visit Hall 10, the Spanish Hall, and head for booth A201, where ICEX is running a tasting of the 100 Best Wines of Spain, as chosen in the Meininger Verlag tasting. Each of these wines comes with a certifi-

the final selection. And while the fact that 14 Riojas were honoured did not surprise anyone, the selection of an equal number of Rías Baixas wines certainly did. As a matter of fact, wines from Galicia made a very strong overall impression, with eight wines from the region in the northwest of Spain being shortlisted on top of the Albariños. A total of seven Ribeiros impressed the tasters enough to make it into the final selection. The group of qualities chosen as premium crus by the tasters was truly well balanced.

cate that doubles as an information sheet, offering a concise description of the wine and the identifying number of the respective producer. If you like what you taste, it’s therefore easy to make a connection.

Less widely known DOPs such as Almansa, Montsant, Ribera del Guadiana as well as two Pagos and two red wines from the largely underestimated Monastrell appellations Jumilla and Yecla, stemming from Spain’s scorching south, managed to compete with wines from well-established regions such as Ribera del Duero, Rioja or Toro. Bierzo, the rising star among the appellations, followed its 2016 performance by again submitting a number of wines of great quality. As expected, fortified wines,

which have been regarded as Spain’s great classics for a long period of time now, made an excellent impression, with the region Montilla-Moriles giving a wonderful performance alongside Jerez. Twenty-four products received the highest decoration of three Toros, while another 50 received two of the coveted quality awards. Wines in the €3.50 ($4.33) to €5.00 as well as the €5.00 to €8.00 price range proved to be very reliable, with a respective number of 21 and 22 of them making the shortlist. Predictably, the premium category of wines in the price range of over €10.00 won the highest number of 3-Toro awards with ten top ratings.

TRY THEM FOR YOURSELF The Best of Spain selection is now a wellestablished feature of the ProWein, and it certainly is one of the major visitor attractions in Hall 10. The open tasting zone for the Top 100, in booth number 10 A201, will be supervised by Peer Holm. It is located directly adjacent to the ICEX tasting area (10 A171), which will offer seven high-quality tastings again during the three days of this year’s trade fair. On the subsequent pages, we provide you with a list of the top 100 wines selected in the great tasting. The featured wines are sorted by price range and type and are accompanied by a concise but precise description. The ex-bodega quoted price ranges as stated by the producers are for general orientation purposes only. Please refer to www.wein-aus-spanien. org for the tasting program, exhibitor lists and further information about ICEX wines from Spain on offer.

Price category I €2.50 to €3.50 Sparkling Reymos Espumoso de Moscatel, DO Valencia; Anecoop – 10/A232 Lychee, yellow cherries, rose water, honey melon, peach, pineapple, distinct sweetness, pleasant mousseux

White wine 2016 Porta da Ría, DO Rías Baixas; Bodegas Milenium – 10 C106

2014 Las Carlinas, DO Campo de Borja; Long Wines – 10 A164

2016 Matsu El Pícaro, DO Toro; Vintae Luxury Wine Specialists – 10 C231

Red berries, light floral notes, violets, lavender, vanilla, refreshing acidity, harmonious body

Quite reserved, distinctive berry flavor when aerated, youthful tannins, fruity, juicy

2011 Torrelongares Gran Reserva, DO Cariñena; Covinca Soc. Coop. Vitivinícola De Longares – 10 D103

2015 Gran Colegiata, DO Toro; Bodegas Fariña – 10 D71

Reserved at first, dark fruit, black pepper, mineral freshness, fine-grained tannins

2015 Corona de Aragón Special Selection, DO Cariñena; Grandes Vinos y Viñedos – 10 D223 Ripe plum, cherry, bacon, smoky notes, traditional wood, earthy aromas, forest floor, accessible

Distinctly fruity with light vegetal nuances, harmonious acidity, uncomplicated

2016 Ca N‘Estruc, DO Catalunya; Uvas Felices – 10 A198 Mango, exotic fruit, yellow peach. With fine touches of caramel and wood. Buttery on the palate and quite powerful

Red wine 2013 Tintoralba Crianza, DO Almansa; Bodega Tintoralba – 10 C91 Berries, herbs, spicy nuances, lavender, smoky, bacon, refreshing acidity

2015 Lacruz Vega Roble, DO La Mancha; Bogarve 1915 – 10 A120 Dark berries, ethereal herbs, eucalypt, black tea, juicy, powerful, rounded

2016 Casa Carmela Monastrell, DO Yecla; Bodegas Castaño – 10 A234 Sweet fruit, light nuances of orange peel, liquorice, subtle vegetal notes, chocolate. Dense and harmonious on the palate

2014 Pagos de Araiz Crianza DO Navarra; Masaveu Bodegas – 10 C131 Sour cherries, currants, elderberry, light vegetal notes, tomato leaves, bell pepper

2014 Esteban Martín Crianza, DO Cariñena; Bodegas Esteban Martín – 10 C111

Dark wild berries, distinctive touches of wood, powerful, complex, harmonious body, potential

2015 Lagunilla Crianza, DOCa Rioja; Marqués de la Concordia Family of Wines – 10 A231 Dried wild berries, forest floor, sage, thyme, classic Rioja streak of acidity, earthy-leathery, cigar case

2015 Hacienda López de Haro Crianza, DOCa Rioja; Vintae – 10 C231 Wild berries, ethereal-floral touches, milk chocolate, vanilla, toffee, elegant character, juicy, tangy grip

Multifaceted fruit, mineral notes, a touch of wood, allspice, fresh herbs, harmonious, good length

2015 Lágrimas de María Crianza, DOCa Rioja; Bodegas Patrocinio – 10 D221 2016 La Estacada Graciano, Vino de la Tierra de Castilla; Finca La Estacada – 10 A102 Blackcurrant, fleshy, steely nuance, vitalising acidity, gripping, elegant finish

2016 Garnacha Roble, DO Navarra; Bodegas Príncipe de Viana – H10 A178

Wild berries, dark chocolate, mocha, minty-ethereal, forest floor, smoked bacon, juicy-tangy

Price category II €3.50 to €5.00 White wine

Dark berries, spicy wooden notes, hints of violet; harmonious palate with tannic grip

2016 Farnadas Blanco, DO Ribeiro; Pazo De Vieite – 10 C206 2014 Vulcanus Alpha Tempranillo, Vino de la Tierra de Castilla; Encomienda De Cervera – 10 C117 Sweet fruit, fruit in rum, chocolate, coffee, touches of wood, vanilla, leather, powerful, accessible, good length

Develops when aerated, mineral spiciness, youthful acidity, discreetly phenolic, a hint of grapefruit

2016 Finca Montepedroso, Rueda DO; Finca Montepedroso – 10 A101 Gooseberry, kiwi, white currant, discreet touch of wood, delicate tangy spiciness and harmonious texture

2014 Alcardet Sommelier Crianza, DO La Mancha; Bodegas Alcardet – 10 A108 Distinctly fruity, cherry, plum, wild berries, herbs, chocolate, coconut, balmy, firm

2016 Menade Ecológico, DO Rueda; Bodegas Menade – 10 C72 Candied fruit, passion fruit, mango, orange zest, spicy nuances, a touch of phenolic, typical Verdejo

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2015 El Cayado Roble, DO Bierzo; Viñas e Adegas Galegas – 10 D183 Herbal spiciness, wild berries, forest floor, roast aromas, refreshing acidity, bite, independent, animalesque-spicy

2015 Fuerza, DO Jumilla; Ego Bodegas – 10 A158 Sweet dark fruit, earthy-herbal character, spicy, butterscotch, harmonious

2014 Agnvs Crianza, DOCa Rioja; Bodegas Valdelana – 10 C112 Intense cherry and wild berries, caramel, espresso, dark chocolate, juicy-dense, seems fresh and youthful

2016 Pazo de San Mauro, DO Rías Baixas; Marqués De Vargas Family Wines & Estates – 10 A82 Mirabelle aromas, pear, nutty, chamomile, a touch of fennel, floral herbs and spices. A hint of vanilla

2016 Pazo Cilleiro, DO Rías Baixas; Muriel Wines – 10 C125 Yellow fruit, a touch of stewed apricot, brazil nut, slightly demanding acidity, complex, harmonious

2016 Barbuntín, DO Rias Baixas; Quinta Couselo – 10 C182 Peach, yellow fruit, a hint of vanilla. Invigorating play of sweetness and acidity, multilayered, fullbodied, ample length

2016 Terras de Albariño, DO Rías Baixas; Bodegas Viña Cartín – 10 D181 Very aromatic, pear, herbs and spices. Slight, well integrated wooden notes, complex, harmonious acidity

2016 Pazo de Villarei, DO Rías Baixas; HGA Bodegas y Viñedos de Altura – 10 C203 tTypical salty mineral notes, exotic fruit, blackcurrant and light vegetal touch

2016 Eira Dos Mouros DO Ribeiro; Bodegas Casal de Armán – 10 C194

2012 Men de Mencía, DO Bierzo; Pago del Vicario – 10 C151

Herbs, salty minerals, fresh prelude, delicate acidity, harmonious, aromatic herbs

Plums, dark berries, red fruit jelly, balmy nuances, nougat, sweet prelude, powerful, touches of wood, ripe fruit, fine-grained tannins

2016 Vaya Godello, DO Bierzo; Nuevos Vinos CB – 10 C112

2015 Tintoralba Organic Selection, DO Almansa; Bodega Tintoralba – 10 C91

Citrus fruit, touches of nut, mineral notes and wet stone. Cool aromas and flavours. Typical of the variety.

Dark berries, fleshy, praline, chocolate, balmy nuances, rich mouthfeel, fine-grained tannins

Red wine

2014 Pinyeres, DO Montsant; Celler Masroig i Seccio Credit – 10 A186

2013 Esteban Martín Reserva, DO Cariñena; Bodegas Esteban Martín – 10 C111

Wild and dark berries, forest floor, mineral notes. Compact on the palate, rich, ripe tannins, salty finish. Perfect with BBQ

Ripe fruit, cassis, ethereal herbs, balmy nuances, polished tannins, well-balanced

2015 Ángel Garnacha, DOCa Rioja; Fortuna Wines – 10 A224 2013 Lacruz Vega Terroir, DO La Mancha; Bogarve 1915 – 10 A120 Clear fruit, cherry, cool-spicy character, herbs, tobacco, harmonious acidity, well-balanced

Cherry, red berries, herbs, nougat, chocolate, coconut, a touch of bacon, iodine-salty minerals, leather, tobacco. Good length.

2016 Val de Souto Tinto, DO Ribeiro; Bodegas Val de Souto – 10 C192

2011 Sonsierra Crianza Vendimia Seleccionada, DOCa Rioja; Bodegas Sonsierra – 10 A78

Sour cherries, violets, liquorice, candied orange peel, floral nuances, lively acidity, individual character, multifaceted

Dried cherry, ripe berries, orange peel, clove, allspice, leather, musk, tobacco, forest floor, coffee, caramel, ripe tannins, pleasantly lean

Fortified Wine Fino Solera Fundación 1830, DO Montilla-Moriles; Bodegas Navarro – 10 C164

2016 Pazo Pondal, DO Rías Baixas; Pazo Pondal – 10 C172 Floral nuances such as rose blossom, lime and spicy roast aromas. Striking acidity, mineral spiciness

Spicy aromas, nuts, hay, herbs, mild spices, a hint of peach and pear. Delicate structure, multifaceted

Price Category III €5.01 to €8.00 Sparkling Duc de Foix Reserva Especial Brut, DO Cava; Covides – 10 C215 Yellow fruit, brioche, bread crust, delicate spiciness, fine mousseux, creamy, well-balanced

White wine 2016 Granbazán Etiqueta Ámbar, DO Rías Baixas; Agro de Bazán – 10 C174

2015 Les Sorts Sycar, DO Montsant; Celler Masroig i Seccio Credit – 10 A186

Yellow apple, light exotic fruit, nutty notes, slightly woody, vibrant acidity, harmonious, firm body

Berries, herbal spiciness, mineral notes, powerful body, harmonious, long finish

2016 Altos de Torona Sobre Lías, DO Rías Baixas; HGA Bodegas y Vinedos de Altura – 10 C203

2015 Tarima Hill, DO Alicante; Bodegas Volver – 10 A206

Citrus fruit, lime, mineral spiciness, harmonious play of sweetness and acidity, well-balanced, rich body, light green touch

2016 Finca Viñoa Blanco, DO Ribeiro; Bodega y Viñedos Pazo de Casanova – 10 C196 Slightly reductive initially, then nutty, a touch of sesame and coconut. Firm-tangy on the palate, spiciness of light herbs, pinot leanness

2016 Turonia, DO Rías Baixas; Quinta Couselo – 10 C182 Citrus fruit upfront followed by salty mineral nuances. Slightly phenolic. Elegant and lean

Red wine

2016 Orballo, DO Rías Baixas; Bodegas La Val – 10 C112/10 C173

2016 Tres Picos, DO Campo de Borja; Bodegas Borsao – 10 C221

Exotic fruit, pineapple, mango and light citrus nuances. Well-balanced on the palate

Fruity dark berry flavors, spicy, smoky touch of wood, fruit in rum, leather, tobacco, well structured, ripe tannins, good length

Exotic fruit, mango, lychee, banana, very fragrant. Acidity and sweetness nicely balanced, multilayered, complex

Wild berries, spicy nuances, Pimentón, slightly smoky, accessible and harmonious, uncomplicated

2013 Licenciado Reserva, DOCa Rioja; Bodegas de Familia Burgo Viejo – 10 C73

Yellow fruit, piquant spiciness, light vegetal notes, harmonious acidity, juicy

2016 Benedictus Fructus, DO Ribeiro; Bodegas Val de Souto – 10 C192

Red berries, sour cherry, ethereal herbs. Lively acidity, pleasant arc of tension, spicy nuances, well made

2016 Paco & Lola, DO Rías Baixas; Adega e Viñedos Paco & Lola – 10 C163

Peach, quince and citrus nuances, mineral spiciness and a hint of phenolic

2016 Alter Blanco, DO Ribeiro; Priorato De Razamonde – 10 C200

2011 Terrai C11, DO Cariñena; Covinca Soc. Coop. Vitivinícola De Longares – 10 D103

Wild cherries, earthy-herbal spiciness, black olive tapenade, mocha, firm on the palate, elegant, potential

2011 Los Autores Reserva DOCa Rioja; Spanish Wine Exclusives – 10 D153 Cherry, currant, plum, herbs, minestrone, leather, refreshing acidity, rather lean, pleasant arc of tension, spicy

2010 Allegro, DO Pago Calzadilla (Vino de Pago); Pago Calzadilla – 10 A194 Spicy fruit, herbs, liquorice, cocoa, leather. Good structure on the palate, full-bodied, near cool character, easily accessible. Typical Syrah

2014 Elías Mora Crianza, DO Toro; Bodega Elías Mora – 10 A202 Distinctly fruity with plums and wild berries, toffee, cocoa, leather. Refreshing and structured acidity, good balance and length

2014 Berola, DO Campo de Borja; Bodegas Borsao – 10 C221

2011 Zinio Reserva, DOCa Rioja; Bodegas Patrocinio – 10 D221

Distinctly fruity, blackberry, wild berries, spicy herbs, refreshing acidity, powerful, harmonious, ripe tannins

Wild berries, Earl Grey tea, ethereal herbs, root vegetables, smoked bacon, catchy texture, finegrained tannins, elegant, good length

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Fortified Wine Bertola Amontillado 12, DO Jerez-XérèsSherry; Bodegas y Viñedos Diez Mérito – 10 C162

2014 Pazo Señorans Colección, DO Rías Baixas; Pazo de Señorans – 10 D177

2014 Protos Crianza, DO Ribera del Duero; Protos Bodegas – 10 C101 Plums, dark berries, a touch of wood, a hint of coconut,pleasant prelude, good grip, fine-grained tannins, compact finish

Chestnuts, roasted nuts, spicy character, delicate chewiness, accessible, uncomplicated, mild spices

Ripe yellow fruit, mango and a touch of dried apricot. Wine enlivened by pronounced acidity. First hints of maturity

Inocente Fino Valdespino, DO Jerez-XérèsSherry; José Estévez – 10 A182

2015 Conde de los Andes Blanco, DOCa Rioja; Muriel Wines – 10 C125

2013 Viña Mayor Reserva, DO Ribera del Duero; Grupo Bodegas Palacio 1894 – 10 C205

Dried fruit, almonds, salty nuances, mature Fino character, delicate, pleasant arc of tension, elegant, multifaceted, long finish

Herbal spiciness, touches of pepper, delicate traditional character, very rich, mineral touch, good length

Cherry, cool fruity aromas, a hint of ethereal herbs, forest floor, leather, chocolate, nougat, elegantly classic

Pedro Ximénez Solera 1927; DO Montilla-Moriles; Alvear – 10 C168 Dense aromas, bread crust, rye bread, hay, dried fruit, raisins, black olives, orange zest, fruit bread, gingerbread, complex, gripping sweetness

Price Category IV €8.01 to €10.00 White wine

Red wine

2007 Bordón Gran Reserva, DOCa Rioja; Bodegas Franco Españolas – 10 C71

2015 Barahonda Summum, DO Yecla; Señorío de Barahonda – 10 C224 Ripe plums, ethereal spiciness, oregano, thyme, smoky touches of wood, caramel, vanilla, refreshing acidity

2016 Losada, DO Bierzo; Losada Vinos de Finca – 10 A184 2013 Albret La Viña de mi Madre Reserva, DO Navarra; Finca Albret – 10 C175 Dried red fruit, cassis, tobacco, dark chocolate, earthy nuances, herbs, spicy tannins, delicate maturity

2016 Celme de Pena Bicada, DO Ribeiro; Adegas Celme – 10 C204 Distinctly fruity and accessible, charming, light vegetal nuances, grapefruit, juicy

Delicate sour cherry, forest floor, leather, cigar case, soft prelude, pleasant streak of acidity, elegant, multifaceted, traditional Rioja, good length

Dark wild berries, wild herbs, a hint of aniseed, fennel, distinct spicy nuances, juicy, accessible, sweet fruitiness, well-balanced, potential

2014 Resalte Crianza, DO Ribera del Duero; Bodegas Resalte de Peñafiel – 10 D141 2010 Lan Gran Reserva, DOCa Rioja; Bodegas Lan – 10 C211 Rather reticent fruit, cherry, a hint of plum, spiciness of ethereal herbs, leather, forest floor, delicately structured acidity, classic character

2009 Señorío de Otazu, DO Pago de Otazu (Vino de Pago); Bodega Otazu – 10 A122 Balck fruit, hints of tea, dark chocolate, with mint and menthol, fine ripeness: pleasant arc of tension, fine-grained tannins, firm with good length

2014 Rectoral de Amandi Edición Limitada, DO Ribeira Sacra; Bodegas Milenium – 10 C106 Sour cherry, light floral notes, herbs, a hint of forest floor, a touch of wood, mineral aspects, lively acidity, well-balanced, elegant

Reserved at first, then dark berries when aerated, plums, leather, smoky touch of wood, herbs. Soft prelude with polished tannins, delicate bite, good spiciness, charming

Fortified Wine Amontillado Solera Fundación 1830, DO Montilla-Moriles; Bodegas Navarro – 10 C164 Peaty-smoky spiciness, roasted hazelnut, cinnamon, creamy prelude, elegant and complex, umami, good length

El Candado Valdespino, DO Jerez-Xérès-Sherry; José Estévez – 10 A182 Coffee, toffee, caramel, raisins, dark chocolate, sustained acidity, very complex aromas and flavours, roast aromas, walnut, seemingly endless finish

Price Category V over €10.00

2011 ValSotillo VS Reserva, DO Ribera del Duero; Bodegas Ismael Arroyo – 10 C112

2013 Mas de Can Blau, DO Montsant; Gil Family Estates – 10 C191

Morello, toast, black pepper, ripe plums, a touch of elderberry, gripping tannins, rich body, long

Blackberry, elderberry, wild berries, coffee, mineral aspects, wet stone, smoky, mild spices, fine-grained tannins, intense, long finish

2014 Albariño de Fefiñanes III Año, DO Rías Baixas; Bodegas del Palacio de Fefiñanes – 10 C188

2011 Cenit, DO Tierra del Vino Zamora; Bodega Viñas del Cenit – 10 C84

2014 Alont, DO Jumilla; Bodegas Pio Del Ramo Nuñez – 10 D201

Quince, pear and nut aromas alongside delicate mineral touch. Fresh, very well-balanced and elegant

Dark wild berries, a hint of plum butter, smoky, black pepper, pleasant density, powerful, delicate maturity

Distinctly spicy aromas and flavours, black pepper, allspice, herbs, dark berries, fleshy nuances, mocha, cigar case. Dense on the palate, rich and long.

2009 Pazo Señorans Selección de Añada, DO Rías Baixas; Pazo de Señorans– 10 D177

2015 Peraj Ha‘abib Flor de Primavera, DO Montsant; Celler de Capçanes – 10 A236

2008 Altar, DO Pago de Otazu (Vino de Pago); Bodega Otazu – 10 A122

Flintstone, quince, a hint of honey, light touch of petrol. Almost creamy on the palate, well-balanced with delicate mature nuances. Elegant

Red berries, cherry, forest floor, leather, light floral nuances, violets, elegant intensity, fine-grained tannins

White wine

Red wine 2014 Bagus Tempranillo, DO Ribera del Duero; Bodegas López Cristóbal – 10 C74 Berries, tobacco, fresh herbs, slightly smoky, juicy, harmonious body, well-balanced

2014 Paisajes Valsalado, DOCa Rioja; Uvas Felices – 10 A198 Red berry jelly, cherry, smoked bacon, delicate spiciness, accessible, harmonious, refreshing acidity

2014 Hipperia Montes de Toledo, Vino de la Tierra de Castilla; Pago de Vallegarcía – 10 C115 Cassis, bell peppers, spicy, smoky nuances, a hint of forest floor, cigar case, balminess, intense and juicy, good balance

2015 Clunia Malbec, Vino de la Tierra de Castilla; Bodegas Clunia – 10 C175 Deep purple with a black core, dense fruit, wild berries, spicy nuances, mineral aspects, herbal spiciness, juicy-soft tannins, good length

2015 Lualma, DO Yecla; Señorío de Barahonda – 10 C224 Spicy-fruity bouquet, plum, allspice, herbs, liquorice, smoked bacon, powerful, multifaceted, long

2013 AAA, DO Dominio de Valdepusa (Vino de Pago); Marques de Griñón Family Estates – 10 A172 Dark berries, liquorice, herbs, touch of wood, toffee, nougat, juicy texture, pleasant density, polished ripe tannins, roast aromas, long finish

2012 Graciano, DO Dominio de Valdepusa (Vino de Pago); Marques de Griñón Family Estates – 10 A172 Black berries, currant, blackberry, elderberry, tobacco, smoky touch of wood, black tea, pleasant structure, juicy, powerful, individual character, good length

Black currants, spiciness, balminess, cigar case, powerful yet elegant, pleasant arc of tension, polished tannins, long finish

2010 Finca Valpiedra Reserva, DOCa Rioja; Finca Valpiedra – 10 A101 Ripe berries, black pepper, forest floor, mineral nuances such as flintstone, leather, smoked meat, delicate acidity, ripe tannins, harmonious, accessibleh

2010 Centvm Vitis Crianza, DOCa Rioja; Bodegas Valdelana – 10 C112 Powerful berries, plums, cherries, sweet nuances, touch of wood, chocolate, leather, dense on the palate, good extraction, ripe tannins, long

Fortified Wine Pedro Ximénez Solera Fundación 1830, DO Montilla-Moriles; Bodegas Navarro – 10 C164 Oily in the glass, very spicy, black tapenade, chestnut wood, mocha, chocolate with nuts, well integrated sweetness, raisins, dried fruit

2014 Haragán, DO Ribera del Guadiana; Pago Los Balancines – 10 C121 Fragrant, dark berries, blackberry, plum, forest floor, earthy, touch of wood, toffee, balmy nuances, pleasantly dense, gripping tannins

Dry Sack Solera Especial Medium Sweet aged 15 Years, DO Jerez-Xérès-Sherry; Bodegas Williams & Humbert – 10 A121 Dried fruit, roasted nuts, milk chocolate, piquant spiciness, complex aromas and flavours, well integrated sweetness, long finish

R E G I O N A L A N A LY S I S CAVA

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CARVING A NICHE IN THE SPARKLER MARKET The Spanish sparkler is one of the world’s great wine styles and yet Cava doesn’t have a premium image. James Lawrence asks whether a new initiative can change things.

Introducing the single estate The final details of the new classification, the Cava de Paraje Calificado — or qualified singleestate Cava — were announced in July 2017. Spanish Agricultural Minister Isabel García Tejerina, confirmed that nine wineries were

initially allowed to display Paraje Calificado on their labels. Its chief architect, Consejo Regulador president Pedro Bonet, boasted that the classification’s entry requirements were “the strictest in the sparkling wine world” and represented the biggest shake-up of Cava since the DO’s inception in 1970. “Twelve producers were eligible for the new classification; however, of these 12, just nine were granted the quality seal,” says Bonet. To qualify, wineries must own estate vineyards that are at least 10 years old, harvesting grapes solely by hand with a maximum output of 8,000kg per hectare. In addition, this new tier of Cava must be estate-fermented and aged in bottle for a minimum of 36 months before release. Finally, all candidates hoping to use the classification must submit their wines for review by a panel of experts, including Pedro Ballesteros Torres MW and sommelier Guillermo Cruz. As a result, nine producers are now marketing 15 brands that bear the title Cava de Paraje Calificado. They include Gramona, Juvé y Camps, Recaredo and Codorníu. “It is clear that Cava needs to go upmarket,” says Bonet. “The market for entry-level sparkling wines is increasingly being dominated by Prosecco, while high-quality Cava remains hindered by a relatively low price ceiling and discount-led distribution network.” He cites the UK market as an example. It remains a key market for Cava, despite falling volumes, yet over 95 percent of Cava sold belongs to the under £10.00 ($14.26) category, with premium examples only occasionally seen in specialist on-trade venues and merchants. “Cava is a potent symbol of Spain’s inherent problem — the marketing has not caught up with the quality of our wines.”

Javier Galarreta, CEO of the Spanish wine group Araex, says: “Spain’s mistake was to enter the market at the bottom end and to ride on the ‘value’ ticket for far too long.” The majority of Cava’s top-end producers have welcomed the initiative. “Of course the designation will improve the current perception of Cava in markets like the UK,” says Meritxell Juvé, director of Juvé & Camps. “We hope classifications such as this will demonstrate Cava’s willingness to improve quality across the region and minimise the significant disparity between producers. Most Cava produced, however, is currently outside the remit of the new classification, suggesting that that there is a long road ahead if quality is to rise across the industry. In fact, the Consejo estimates that just over 42,000 ha of vineyards used in Cava production will meet the strict requirements of the new classification: less than two percent of the total production of 30m bottles will be entitled to use Cava de Paraje Calificado on their labels. “The Paraje initiative is a positive step forward,” says Codorníu CEO Javier Pages. “However, we are mistaken if we believe that simply introducing a new designation on a small percentage of labels will be enough to transform Cava's image. What’s required is a significant investment in consumer and trade education, to convince the world that Cava can be a product of high quality.” In contrast, producers such as Raventós i Blanc argue that the initiative is simply a case of too little, too late. “I think Paraje is a terrible idea and won’t make any difference — what fixes consumer perception is situated at the low end. It’s like trying to offer a few Javier Pages, blankets to the victims of CEO, Codorníu great natural disaster and PHOTO: DANI AZNAR

o the untrained eye, all is right with the world in Cava. Its heartland, Penedès, is less than 50 minutes by car from Barcelona, boasting beautiful scenery and a historic tradition of producing sparkling wine, with both artisan brands and corporate behemoths catering to consumer demand. Moreover, more than 150m bottles of Spanish bubbly were exported in 2016, compared to just over 95m in 2000. Despite fierce competition from Prosecco, Cava remains a key player in the global sparkling wine market. Yet bubbling under the surface of this apparent prosperity is the problem of Cava’s entrenched cheap image. “Even today, it is difficult to enter a market with Cava and claim you are a premium sparkling wine,” observes Gramona owner Xavier Gramona. Such sentiments came to a head in 2012, when Raventós i Blanc left the Cava DO to forge a new identity. Several other growers in Penedès have since followed suit, arguing that the Cava brand is detrimental, not beneficial, to their commercial needs. However, any fears within the Consejo Regulador authority of a domino effect in the region have been allayed by many high-profile wineries voicing their desire to remain within the DO. Nevertheless, Raventós’ shock decision was clearly an important catalyst in forcing the authorities to address Cava’s ingrained image problem. “It is probably no coincidence that the Consejo started debating the creation of a new superior classification for premium Cava shortly after Raventos’ announcement,” says Codorníu senior winemaker Bruno Colomer.

to ‘single estate’ in English-speaking markets,” says Vilarnau winemaker Eva Plazas. Vilarnau is using a more immediate method to rebrand as a trendy, premium sparkling wine. The brand’s owner, González Byass, changed the Vilarnau labels of its Brut, Rosé and Brut Nature range to a Gaudi-inspired motif. “The aim of this label change was simply to relate to Barcelona, which is a cosmopolitan, modern, vibrant and sophisticated city with Vilarnau,” explains Plazas. She notes that sales have risen by 40 percent in the UK, Germany and Belgium since the label change. This suggests that a contemporary approach to labelling could offer a way to win the hearts and minds of Millennials. Another way could be to think about sugar levels — Cava is a major producer of Extra Brut/ZeroDosage cuvées, at a time when Champagne is embracing sugar, releasing brands such as Veuve Clicquot’s Rich and Moët Ice Impérial. “Cava needs to wake up to the fact that many consumers like an element of sweetness — some higher dosage cuvées would not go amiss," says Kininmonth. As it stands, the percentage of Cava that will use the classification will probably remain small. Brands like Vilarnau have shown there are other ways to attract consumers, through attractive packaging for example. In markets such as Belgium and Holland, leading brands have already forged a niche in the premium segment, which has come from promoting their respective brands themselves. “Quality wine with identity is closely bounded to the terroir, to the region and when people talk about Cava this criteria has been devalued,” says Agustí Torelló Sibill, of Agustí Torelló Mata winery. “So promoting high-quality Cava is more about the brand itself, than the heritage of the Cava DO.” Yet Paraje de Calificado can provide a way for premium producers without massive brand equity to differentiate themselves from the general framework of inexpensive industrial Cava. “The average consumer who spends £5.00 to £10.00 on their bottle of Cava will not even notice the new classification, but that isn’t the target audience,” says UK-based Lenka Sedlackova MW, a Spanish specialist. “It will take time but hopefully the more engaged consumer will eventually recognise Paraje’s quality for what it is.” W

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Lesclaux, export manager at hoping everything will turn out Castillo Perelada. OK,” says Pepe Raventós. The Cava DO continues to In addition, the classification invest heavily in the UK, even offers no response to mounting though sales of Cava have calls for Cava to be restricted declined by six percent in volume to a single geographical zone; and 4.6 percent in value over 32 municipalities that produce the past 12 months, while the Cava are outside its heartland “Spain’s mistake average price per 75cl is £6.08 Catalunya, although 99 percent was to enter the ($8.49), according to Nielsen. of Cava comes from this part of market at the “Our Cava sales in independent Spain. “Penedès is the historical bottom end and to retail channels are down 17 centre of Cava; the DO should ride on the ‘value’ percent volume and 15 percent restrict production, or at least ticket for far too value,” says Enotria buyer Harriet Cava del Paraje production, to this long.” Kininmonth. zone,” argues Javier Gramona. Javier Galarreta, Nielsen analyst Alison Lock “All the other great sparkling CEO, Araex says: “It’s clear than Cava’s wine appellations of the world decline is due in part to the are centred around one area — it’s strength of Prosecco in the category, which ludicrous to allow numerous regions access to has seen double-digit growth in both value and the DO.” volume sales.” However, according to Bonet the DO is The authorities’ response has been to negotiating with growers in the Almendralejo organise a series of events, including seminars region of Extremadura in order to restrict at renowned wine venue 67 Pall Mall. “Cava is planting of Cava grapes, as the board has simply not going to lure consumers away from concerns about the suitability of terroir. Prosecco at lower price points, so quality and Nevertheless, the DO’s president remains uniqueness are key to driving sales,” says wine focused on delivering his promise of rebranding buyer Christine Parkinson. “The region needs Cava as a premium, high-quality product. to promote these features, along with the new single-vineyard wines, as points of difference. The trade-up option This is clearly a positive step forward and I think the UK trade will be enthusiastic, as this finally “At the moment there are 24 wineries provides a tool to distance high-end Cavas from interested in submitting their candidacy for the very cheap ones. Essentially it provides two Paraje classification,” says Bonet. “However, different selling opportunities, instead of one.” we have no desire for the classification to be For every proponent of Paraje Calificado, adopted by large number of producers — the however, there is an equal number of naysayers. point is to emphasise the exclusivity of this new “I am unsure if Paraje Calificado will make a big classification.” difference to be honest — it will certainly take Bonet also underlines the point that Cava’s time and require the sommelier to explain the average retail price is lower than Prosecco in key point of differences to their guests,” says some markets, yet Spain’s traditional method Laure Patry, executive sommelier at Social Wine sparkling wines cost more to produce. “This and Tapas restaurant. isn’t a sustainable situation in the longer term. “Vilarnau is in favour of the initiative; We need to reposition ourselves as a highhowever, Cava de Paraje should be translated quality alternative to Champagne, not merely as a trade-down option.” Premium cava as % of total sales However, leading brands are keen to point out that whether Cava really does have a “cheap 60% and cheerful” image depends on the market. 50% Denmark 40% “The ease of selling premium Cava varies 40.4% Germany Sweden from market to market. In some markets like 30% 33.5% 31% 20% Scandinavia, premium Cava is selling well. Belgium Japan Obviously there are some brands that focus on 10% 15.4% 12% cheap, high-volume Cava but, again, that’s the same in any other big appellation,” says Patrice up 0.66% in 2016 to 29.5 million bottles, 12% of overall sales.

SOURCE: CONSEJO REGULADOR DEL CAVA

González Byass have had success thanks to Vilarnau’s Gaudi-inspired labels.

CONFERENCES WINE2WINE

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THE WINE FRONTIER The annual wine2wine conference in Verona is one of the highlights of the wine calendar. Felicity Carter reports.

PHOTO: WINE2WINE

he original concept behind Vinitaly’s Wine2Wine conference was to give Italian producers access to new ideas and best practices. While there’s still a strong Italian focus, the speaker line-up is international and the talks of value to producers everywhere. At the 2017 edition, speakers gave insights from China, the US, UK, Germany and Russia and more. If there was one overall message, it’s that producers — European producers in particular — have to get with the digital programme. No one was more hard-hitting and engaging on this topic as e-commerce guru Paul Mabray, whose presentation was electric. “While we each have different cultures,” he told the audience, “we are connected by one culture — digital culture.” Consumers are the core of this new culture, he said, because consumers are driving everything. If they don’t find the exact product they want, a substitute is just a click away — and then they will tell the world about their experience. Because suppliers need to please them, this has led to better service, which in turn has led to higher expectations. One result has been the development of what Mabray calls “the subscription economy”, with a multitude of products now sold on subscription, from Netflix entertainment to hot sauce. Consumers don’t need to think about their choices any more, because everything just turns up. “What businesses have learned is that subscriptions are a predictable revenue stream,” said Mabray. “You can rely on monthly or annual revenue.” The irony, he said, is that one of the pioneers of the subscription model was the wine industry — which is now stuck in the tired old wine club model. Mabray swung to the doom-laden part of his speech and introduced what he called the “Four Horsemen of the Wine Apocalypse”. Wine producers in the US — and, increasingly, elsewhere — are facing four fearsome forces: market saturation (famine), intense struggles between retailers (war), the rise of private label wines (pestilence) and a failure to update the direct-to-consumer model (death).

Wine2Wine takes place in Verona each December.

“Customers want frictionless transactions, but wine is nothing but friction,” said Mabray, explaining there are only two reasons why customers remain in direct-to-consumer relationships: because they can get an exclusive price or product not found elsewhere, or because of an emotional connection. Wine, said Mabray, is an omni-channel product, sold in multiple ways and discussed on social media, and all those channels need to be managed effectively. Customers need to be recognised when they walk into a tasting room and be included in the social media conversation after they’ve gone home. The tool that can make this happen is the customer journey map. Mabray advised producers to use software that identifies every point of contact with a customer, and offers a way to manage it. “We expect better customer experiences,” he finished.

The newsletter Another speaker banging the customer connection drum was Logan Lee of Wine Awesomeness, an online wine club. “The wine business in the States is really focusing on men aged 45 to 55 and the real future is not there,” he said. “It’s women who run the internet. Every digital media company sees women making decisions on what is being bought — our customers are 55 percent female.” For Lee, a major tool for connecting with consumers is the humble newsletter. “We’ve just passed 2.2m [subscribers] on our newsletter,”

he said. “We know who opened it, who clicked through and where they are.” Newsletter software now delivers a wealth of information about readers, from what time of day they buy, to how their preferences are evolving. “The great thing about newsletters is that we know who’s most likely to cancel our wine club, so we can offer something special the day before we know they’re likely to cancel. We know what our marketing spend is, and what our return is.” Facebook and the like, Lee said, were very good at turning “one dollar into 90 cents. That’s not a business. You have to turn one dollar into two dollars. You have to figure out the return on your investment — and that’s what data can tell you.” He revealed that using a newsletter had led Wine Awesomeness to a key insight: “Our first lesson was how powerful an email address can be.”

China syndrome Ian Ford founded the distributor Summergate in China in 1999. By the time he sold it to Woolworths in 2014, Summergate had 13 offices around China and around 400 employees, selling through many different channels. That makes him one of the world’s premier experts on the Chinese wine market. “There was a bit of a slowdown in 2012 and 2013 in total imports of wine to China,” he noted, adding it was because of China’s recent austerity campaign. “But you can see that, starting 2015 and 2016, there has been a very strong rebound. The latest estimates for 2017 is about 60m 9L cases — that’s another year of approximately 15 percent growth.” Ford said that China and Hong Kong combined import $4bn worth of wine and are now at parity with the UK market. Not only that, but the growth is set to continue, because the Chinese have yet to adopt in-home drinking. Once that happens, Ford believes the growth will be explosive. He had some tough love for Italian producers, however; in 2011, Italy was the number three supplier to China. Today it does less than half the volume of Spain. One major problem, said Ford,

is that Italians have been too willing to work with start-up importers. Such people register a wine import business — and a year later, disappear. “One and done,” Ford called them, saying those importers quickly realise they’re not cut out for wine and they dump their products on the market. “Of the total volume of wine in the two most recent years, 25 percent of all Italian wine was sold to one-and-done importers.” France, he said, has been successful in China partly for historic reasons — it has long dominated China’s luxury sector — but also because major brands have been extremely active in the market. “Our leading heroes of the Italian wine industry have not established themselves in China,” said Ford. “You have Penfolds from Australia — they’re up to one million cases a year in China. You have Les Domaines Barons de Rothschild [France] and Concha y Toro [Chile]. They have done the hard work of building the market. Italy is lacking that strong leader.” Worse, Italy’s messaging is too complex, thanks to the many consorzios and associations, each with its own message. “Everything is fragmented and there needs to be some consolidation of messaging,” he said. “You don’t have to do it the way other countries do it, but Wine Australia speaks with one voice.” Ford also noted that Australian producers don’t make Australian restaurants their first port of call, unlike Italian producers, who head to China and talk to Italian restaurants, avoiding the mainstream market. He said that anyone heading to China has to be “actively engaged, building your brand, working the market — but with partners.” Use professional translators. Trademark everything. Stay away from distributors that are just shipping and distributing — success will be found with agents who can also offer advice and discuss a brand plan. And, finally, in a conference that was so heavily tilted towards digital, he had what seemed a contradictoray message — don’t expect e-commerce to do all the work. But he urged the Italians to get together and work on the problem. After all, China is a growing, thriving, lucrative market. “The prize is big!” By the end of Ford’s talk, the audience was buzzing. Indeed, judging by the conversations over food and coffee during the conference, all the speakers were inspiring attendees with new ideas. Which is exactly what makes wine2wine so stimulating. W

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M A R K E T W AT C H CHINA

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MYTHS ABOUT THE CHINESE MARKET MW candidate Lin Liu has listened once too often as people have traded bad information about the Chinese market. Now she wants to set the record straight.

or the past decade, everybody’s been talking about China and its potential as a wine market. Which is as you’d expect, because it’s already an important market that’s only going to get stronger. But if you’re thinking about doing business in China, or you’d like to do more, you need to know what’s good market information and what’s just a myth. The top 10 myths, in no particular order:

1. China is a big country Geographically, China is huge. In market terms, however, it is small. While the Chinese wine market shows impressive growth in relation to other markets, it’s still in its infancy and yet to realise its full potential. Treating it as a developed market is a recipe for frustration. China won’t be relevant to many smaller wineries until the big brands have done the work of penetrating the market fully and converting consumers to wine.

2. China is one country In political terms, yes. For doing business? No. Instead of thinking in terms of first-tier, second-tier and third-tier cities, treat every city with a population of more than a million as a single country. There are six provinces in China that have a population of fewer than 10m, making them smaller than many European countries — and just as different. Even the differences between Beijing and Shanghai can be greater than their similarities.

3. The Chinese need to learn about food and wine matching The Chinese drink wine for many reasons,

but rarely for matching with food. Traditional Chinese dining involves offering guests the full array of food at the same time: fish, meat, vegetables, sweet, sour, savoury and spicy all come together on the table. The best pairing for such a banquet? Tea, beer or Baijiu (white spirits). This doesn’t mean there is no place for wine with dinner, but food matching won’t play a role.

4. The Chinese need wine education Have you seen the way the Chinese — some of the best business people in the world — keep flying to Europe to teach tea drinkers not to use tea bags and sugar? For better results, teach marketing and sales people about cultural differences. This is not to say there’s no value in wine education — it’s already showing results within very specific demographic segments. But if two people are running to meet each other, they can only connect if they meet in the middle.

5. China is so big, you need different importers in different regions You might be amazed by how persistently Chinese importers insist on exclusivity. The scale and growth of online business is enormous and it is still growing at the speed of light. The logistic efficiency is so good, it’s almost scary — 1919, one of the major alcohol companies, delivers its wine within 19 minutes. The speed of delivering is flattening the whole country, with no legal framework like a three-tier system to get in the way. This means that competition

between importers for the same products can be fatal for the success of a wine brand. Imagine your products being sold at the lowest possible price due to a price war between multiple importers — then the product being abandoned altogether once the war is over. Afterwards, your product would hold little appeal to a new importer, since it would have very little margin — its low price would still be all over the internet. Setting up your office can be a way out of this, but the additional operation costs can only be justified if you have the scale to fund it. As reported by different channels, the top five brands currently occupy approximately 80 percent of the wine market, while about 15 percent are OEM (private label), with the brand owner holding absolute control of the market.

6.Volume brands should go to the supermarket and finer wines to the on-trade The “liquor and cigarette” stores, which can range from a few square metres to several hundred square metres, are unique to China and more wine is distributed through them than in supermarkets. This is an outlet that wineries need to consider; the Western on-trade/off-trade model does not yet apply to China, outside Shanghai and Beijing.

7.The Chinese know nothing about wine As per points three and four, there’s no point in instructing the Chinese on the Western way to drink wine and match food. Nevertheless, wine education in China is one of the fastest growing segments of the market, though it only

began recently. China has been the WSET’s biggest overseas market since 2012 and the country already has more than 20 China-based MW candidates. Underestimating Chinese knowledge is as bad as overestimating it. There are multiple Chinas co-existing in parallel with each other.

8.Red obsession It is true that in Chinese, the word red (hong) wine (jiu) is the general term for wine, possibly to differentiate it from the word for white (bai) spirits (jiu). It is also true that red wine still takes the greatest percentage of market share. But looking at this and deciding that China is a red wine market only is like the classic story of two shoe salespeople who went to an island and found everybody barefoot. One found zero market potential while the other saw huge potential. Bear in mind it only took years for Chinese brides to start wearing white dresses, as well as red ones — they wear both, one after the other, and often with other dresses as well during the ceremony. This was thanks to the work done by Taiwanese wedding studios and represents a dramatic cultural change, because in China white is the colour of funerals, while red represents happiness and festivals. On a related note, when label designers advise you to use a red-andgold label to fit with Chinese culture, give it a second thought. Imagine 100 red-and-gold labels on the shelf — what colour will stand out?

9.Fake products are bad for business You might want to put your hands over your ears now, but fake products indicate awareness of the brand. The reality in today’s China is that your “mini me” cannot be killed overnight, any more than mice in old houses. They always come back if there’s food available. It may sound depressing, but remember that distributors of either the fakes or the authentic brands are aware of what they are dealing with. The motivations are either because it is fake and cheaper, or because it’s authentic. Like it or not, you build up the brand together. This said, make sure you get the basics right by registering your brands and trademarks in the original language. High-quality Chinese translation is essential. This may help to plug at least some of the holes.

10.Gifting is a tool of corruption Gifting is a common social behaviour and people do gifting between families and friends. Gifting back with something of equivalent value, if not more, is a normal gesture. That is why many wine sales happen because of the price, instead of by variety, AOC, winemaker and so on. Consequently, gift packaging is far more important in China than in other markets. Consider the success of spirits companies — it might be wise to study the different packaging they use for Asian markets, particularly in the Far East. When approaching China, the key thing to remember is that every segment of the market is growing and developing faster than many observers expected. After the big brands have finished the job of penetrating the market, the next step will be to introduce diversity, which is already gradually happening in Shanghai and Beijing. This is where attention needs to be focused, rather than on outdated myths. W

M A R K E T W AT C H GEISENHEIM REPORT

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THE FUTURE OF INTERNATIONAL MARKETS A study done by Simone Loose, Evelyn Pabst and Gergely Szolnoki from the Department of Wine and Beverage Business Research, Geisenheim University.

nternational wine markets undergo constant change. Traditional European wine markets decrease in importance and producers compete to enter new markets. Guiding this process, ProWein decided to establish an industry barometer to gauge the attractiveness of current and future sales markets and wine origins. In cooperation with Geisenheim University, almost 1,500 wine sector experts from 46 countries were polled in 2017 on international wine markets, marketing trends and the development of wine sales channels. The combination of different

perspectives, of the producers on the one hand and the marketers on the other, constitutes a unique barometer of opinions for the sector.

Survey methodology and participants Two separate online surveys in five different languages were conducted. Approximately three-quarters of the producers who participated in the survey have their company located in France, Italy, Germany and Spain, reflecting the composition of exhibitors at

FIGURE 1: STRUCTURE OF PARTICIPANTS 2 Surveys January 2017, 5 languages

Producers (n=578)

Marketers n=903

Type of company

• Small wineries • Cooperatives • Large wineries • Importers, exporters, distributors

• Special retailers focused on wine • Wholesalers focused on wine • Importers, exporters, distributors • Hospitality • Gastronomy

Company location

3 out of 4 producers were located in either • France • Italy • Germany • Spain 20 different producer countries

Main countries of company location • Germany (53%) • Netherlands (18%) • Belgium (13%) • Other countries 46 different marketer countries

FIGURE 2: CURRENT AND FUTURE ECONOMIC CONDITION OF Bad / deteriorating Satisfactory / no change Good / improving THE COMPANY Producers

Marketers

4 3

62 71 Balance (positive minus negative opinions) 5 32 63 2 41 57 Base: All participants (n=578 producers, n=903 marketers) 25

58 68 58 55

ProWein. Around 70 percent of the interviewed producers are small wineries and 15 percent are large companies that mainly buy wine and focus on bottling and marketing. The majority of marketers are from Germany, from mainly speciality retailers focused on wine. The majority of international marketers, in contrast, are importers, exporters or distributors. One out of two survey participants represent directors or managers within their company and the vast majority of participants have leading roles within their department.

How does the sector view its economic situation? Participants were asked to evaluate the current and the future situation of their company, and rated their economic situation as satisfactory to good. It is interesting to observe that wine producers generally look to the future more optimistically than wine marketers who are in direct contact with end users. A potential explanation for this difference could be that export-oriented producers can try their luck on new export markets, while marketers have less opportunity to escape the structural changes of wine sales and increasing competition on their domestic markets. On the producer side, independent winemakers look to the future with more optimism than cooperatives and large wineries that find themselves amid a strong process of concentration. International and German speciality retailers focused on wine are the least satisfied and see the future less optimistically than other marketers: this could reflect the ongoing structural change affecting wine sales channels, where food retail and online channels are gaining importance internationally. The results also reflect significant differences in mentality among countries of origin. German wine producers and marketers look to the future

Attractiveness of international markets Producers polled count more than 40 markets as belonging to their top five sales markets. Overall, Germany (56 percent of all producers) and the USA (54 percent) are the most important sales markets, followed by Great Britain, Belgium and Switzerland. Rated as the most attractive sales markets are Hong Kong, Switzerland, South Korea, the Scandinavian countries and the USA. Italy, France, Great Britain, Russia and Brazil are currently perceived as less attractive. Germany’s attractiveness ranks in the lower third that is mainly related to saturation and the high degree of competition. When it comes to markets that are perceived

to become more economically attractive, Russia, Brazil, Hong Kong, Poland, South Korea and China appear. It is clear that export markets outside the traditional European wine countries will be of greater importance for wine producers in the future. The lowest improvements are expected for Great Britain, France, Austria, Italy and Belgium. In France and Italy, per capita wine consumption is still on a slight decline and in both markets predominantly domestic wine is drunk, which means fewer sales options for exporters. Brexit and constant wine tax rises are the main reasons why wine producers rate Great Britain very low regarding market attractiveness. Producers see the greatest risk in market development for Russia, Brazil, China, Great Britain and Hong Kong. The growing levels of wine consumption expected for the Asian and South American markets are accompanied by a series of uncertainties. In addition to possible trade restrictions (Russia) and countries’ different sales structures, it is primarily the uncertainty about economic and legal

development that will play a role in the years ahead. For Great Britain, the risk primarily concerns the question of whether and how wine imports will be affected by import duties after Brexit and what countries of origin will sign trade deals with Great Britain. The current and future attractiveness of a market was summarised in the form of a market barometer. By juxtaposing the market barometer (horizontal axis) and the risk (vertical axis) four different market types can be identified. The markets with high attractiveness and low risk in the lower righthand box include Poland, Australia, Japan, Canada and the Scandinavian countries. These are countries where wine consumption has risen lately or where a coherent local trading structure exists with the monopolies. Germany, the Netherlands, Austria and Belgium build a group of countries with lower attractiveness but low risk. High attractiveness alongside high risk in the upper right-hand box is the case for Russia, Brazil, China and Hong Kong. Markets with low attractiveness and high risk are Great Britain and Italy.

E V E RY B OT T L E B E T T E R

We listen to the oenological, technical and commercial vision of our customers. For every wine, we develop and assign the perfect closure: High-performing, well-designed, fault-free and sustainable. Every wine is improved with precise oxygen management and is lauded for added sustainability. That is what our Complete Closure Solutions are intended to do: make every bottle better. We have no higher purpose.

Services

49 W W W.V I N V E N T I O N S . CO M

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more negatively, while producers primarily from Spain and Italy have very positive expectations. Alongside real economic reasons, these differences in expectations are sure to reflect typical “German caution” and “Mediterranean optimism”.

FIGURE 3: MARKET ATTRACTIVENESS VS RISK OF MARKET DEVELOPMENT 0.30

low attractiveness + high risk

0.10 Risk of market development

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M A R K E T W AT C H GEISENHEIM REPORT

high attractiveness + high risk Brazil • China •

UK •

-0.10

Hong Kong • USA •

Italy •

-0.30 -0.50

South Korea • Poland •

France •

-0.70

Austria • Belgium •

-0.90 -1.10

Russia •

Norway • Sweden •• Denmark Switzerland • high attractiveness + low risk

low attractiveness + low risk

Japan • Australia • Canada •

Germany • Netherlands •

Market attractiveness (barometer)

Base: All producers who either currently distribute wine or plan to distribute wine to the following markets by 2020 (n=429)

New markets Nine out of 10 leading international wine producers plan to extend their exports to new markets by 2020. Among wine exporters from the large European producer countries — Italy, Spain and France — which have a high production surplus coupled with export marketing subsidies, this proportion stands at almost 100 percent. In Germany, which exports less, it stands at 55 percent. Those countries that producers most often say they want to export to are the USA, Germany, Great Britain and China. It is predominantly China, Hong Kong, Russia, Japan, Australia, South Korea and Brazil that are named as new export destinations with the most disproportionate frequency relative to their currently low importance.

In demand wine origins Two-thirds of international marketers attending ProWein wish to include wines from new countries of origin in their portfolio. Among German marketers, this proportion is only one-third, which is not surprising given that the wine range in Germany is already very international. International marketers are most interested in European countries such as Germany, Spain, Italy, Portugal and France. On the other hand, German marketers show the greatest interest in the countries of origin Austria, Portugal, Italy and Germany, followed by France, Spain and South Africa. What is surprising here is that Austria and Portugal rank at the top of the German list, which might reveal some new market trends. Interest in Italy, France and

Spain is less surprising as these are the main import countries on the German wine market. Among the New World countries, South Africa leads the pack.

Purchasing and sourcing channels There is a clear trend towards shortening wine procurement channels. Marketers are

striving to source their wine direct from a small wine-growing estate or, to a lesser extent, directly from a large winery. By comparison, procurement via sales agents — importers, distributors, wholesalers or wine agencies — is expected to decline considerably among marketers by 2020. For sales agents this means more difficult times lie ahead, which is somewhat indicated in their less optimistic outlook on the future. Increasing competition implies a trend towards larger business units that can afford sufficient sales personnel. Small wine-growing estates, on the other hand, will need to rise to new challenges of coping, administratively and logistically, with the increasing direct enquiries from marketers. Changes in the importance of sales channels from producer perspective were analysed for the German and the US wine markets. Producers whose main sales market is Germany currently value speciality wine retail, gastronomy and ex-cellar sales as their most important sales channels. For the future, departing from the current low basis, a strong increase in online sales via wineries’ own online stores and external online retailers as well as food retailers is expected. For speciality wine retail, on the

FIGURE 4: CURRENT AND NEW WINE SALES MARKETS Current sales markets

New sales markets by 2020

% currently distribute wine in the following markets (top 5)

% plan to expand their export activities to the following markets (top 3)

Germany USA UK Belgium Switzerland Netherlands Canada China Denmark France Japan Italy Sweden Hong Kong Russia Austria Norway Poland Australia Brazil South Korea

30 32 28 23 23 22 20 19 18 18 16 12 9 9 8 7 7 5 4 4

Base: Producers (n=429/336)

Markets where relative to current importance many new companies enter and expand their export business

56 54

Germany USA UK Belgium Switzerland Netherlands Canada China Denmark France Japan Italy Sweden Hong Kong Russia Austria Norway Poland Australia Brazil South Korea

24 19 7 7 11 16 19 11 3 14 2 9 16 15 5 6 4 9 8 10

German marketers 22 15 23 26 18

International marketers

8 28 13 8 8 8 10 4 8 9 6 5 4 2 1 1 2 13, 9

Germany Spain Italy Portugal France California Austria South Africa Australia New Zealand Argentina Chile Slovenia Greece Hungary Switzerland Bulgaria Romania Canada China Uruguay Brazil Other Not

29 24 23 21 17 17 16 16 12 12 10

FIGURE 7: FUTURE MARKETING CONCEPTS (% OF PRODUCERS AND MARKETERS)

8 8 7 6 4 3 3 3 2 2 1

Marketing philosophy In the wine world, competition between marketing via a wine’s origin (also terroir) or its brand has taken off. Who will be seen as the winner in future? The majority of both marketers and producers agree that in future, wine will be marketed most successfully via its origin. Surprisingly, the significance of the brand will in future be greater from the

Direct sales (online)

2017

2020

Online retailers 49

Direct sales (ex-cellar) 59

2017

39 2017

2020

Gastronomy 73

• Wine marketing with focus on personality of the winery owner or winemaker

48%

14% 33%

53%

Conclusion

affected; within the next three years, only marginal changes will be found in this sales channel, both in Germany and in the US.

2020

24%

Marketers

All participants (n=494 producers, n=903 marketers)

Wine merchants 37

2017

• Wine marketing with focus on region/ origin/terroir

• Wine marketing with a brand

FIGURE 6: CURRENT AND FUTURE IMPORTANCE OF DIFFERENT SALES CHANNELS IN THE USA (% OF PRODUCERS) Food retailers

Producers

28%

Base: All marketers who plan to expand their wine range by 2020 (n=159 German marketers, n=270 international marketers)

other hand, another stronger decline is expected which is less pronounced for gastronomy. A similar tendency can be observed also on the US wine market, with some exceptions. Unlike in Germany, where ex-cellar sales from small wine-growing estates are stable, this trend is anticipated to rise strongly in the USA. This specific development reflects two current trends in the USA: the number of small wine-growing estates is currently growing at a rate of four percent and “directto-consumer” sales from winemakers to end consumers is booming with double-digit growth rates. Gastronomy is probably less

producers’ perspective than it is from the marketer’s. Among wine producers, there are great differences that are culturally driven. First, the Mediterranean countries — France, Italy and Spain — focus much more on origin, while in Germany the personality of the winemaker plays a greater role in marketing. Secondly, it is not surprising that winemakers focus more strongly on personality than cooperatives or large wineries.

2020

2017

Base: All producers who have their main sales market in the USA (n=76)

2020

The wine sector is facing changes that are also reflected in the different future outlooks of the various market participants. Producers are increasingly looking to new distant wine markets and marketers are facing structural changes in the sale of wine where primarily sales via traditional wine merchants will decline. By contrast, buying wine via food retail and online will continue to rise. The wine trade between producers and marketers will change and supply chains will become even shorter. The study was conducted on behalf of ProWein by Geisenheim University’s Department of Business Administration and Market Research headed by Prof. Dr. Simone Loose and Heinz Küsters, Director of Market Research at Messe Düsseldorf, and their teams. Industry experts will be asked again in April 2019 to participate in the second survey wave and will receive the next edition of the report in September 2018. This will provide the opportunity to check whether current expectations prove correct in future and see what currently unexpected changes will arise. Thank you in advance for your support and participation. The complete ProWein Business Report 2017 can be obtained free of charge. Please contact Simone. Loose@hs-gm.de W

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FIGURE 5: EXPANSION IN WINE RANGE TO NEW COUNTRIES OF ORIGIN (% OF MARKETERS) 1

SPECIAL REPORT Q U I N TA D O S VA L E S

Make your own wine Do you dream of one day becoming a winegrower? Without buying a winery or doing a three year wine degree? There is a way to do it. Rolf Klein reveals all.

uinta dos Vales offers you the chance to realise your dream of enjoying the life of a winegrower without completely turning your life upside down. The idea is to benefit from the know-how of winemakers and enjoy your own wine as the owner of a small villa or apartment right on your own piece of vineyard. You decide which grape varieties are planted and which wines should be produced, all within sight of your new home. You can stay there all year round or rent it out to holidaymakers for some of the time. You do not need to buy a tractor or a wine cellar. It’s all there. Because you are in a popular winery in the Algarve in the south of Portugal.

THE PROPERTY Quinta dos Vales (the name means ‘Winery of the Valleys’) lies amid the rolling hills of the western Algarve. The owner, Karl Heinz Stock, has guided the vineyard with dedication and passion from humble beginnings to the height of quality, and not only that: his artistic eye gives Quinta dos Vales its special character. Nature, wine and art are the ingredients. People are the chef. The recipe used by Karl Heinz Stock and his son Michael can be summed up

in remarkably few words: “Simplicity. The only requirement for yourself, your team and your product is quality.” Karl Heinz Stock’s career has been that of an enthusiast who has turned his passion into a profession. “I wanted to take on the challenge of going from a passive lover of Portuguese wine to actively becoming a winemaker. In the beginning, I did not realise that it was a round-the-clock job. But I am not complaining because success is a great reward,” says the former management consultant. His business success and experience – as when he turned a bankrupt company into a flourishing oil business – enabled him to change his career and become a winegrower. “I have always believed that the Algarve has the potential to produce top quality wines. And I was right. Of course that was a great relief.” Karl Heinz Stock has transformed the loss-making agricultural business he bought into a concern that is second to none. “The art is to resolutely produce better wines than other people using the same ingredients, but with a slightly different approach.” From the beginning, the self-made winegrower has relied on skilled assistance and advice, as a good, motivated team is crucial. Two winemakers – Dorina Lindemann and Paulo Laureano – support the enterprise, helped along by the

latest cellar technology, careful cultivation of the approximately 20 hectares of vines on the roughly 45-hectare vineyard and that special touch. Nature also plays its part, with 3,000 hours of sunshine and the very good terroir of the amphitheatre-shaped vineyards. It is therefore not surprising that in 2008, in only its second year, the first international gold medal for a white from the Algarve was awarded to the Quinta dos Vales vineyard. In 2010, a Touriga Nacional was chosen as one of the top ten reds of this variety in Portugal by an international jury. The wines were successful again in 2017, achieving four gold medals at the Grand International Wine Award MUNDUS VINI. Of course, it is very important for a family business to look to the future. Michael Stock has taken charge of the future orientation of the vineyard, ensuring its continuity into the next generation. Visionaries like to share their passion with like-minded people. Maybe that is what gave rise to the idea of allowing others to take a step into the life of a winegrower, but without the considerable risk, including the financial one – the idea also makes sense from an economic point of view. Like his son Michael, Karl Heinz Stock has an entrepreneurial mindset. He realised early on that a vineyard can be managed more successfully with several revenue streams,

SPECIAL REPORT Q U I N TA D O S VA L E S

such as cultural events, venues that can be hired out for corporate meetings and private functions such as weddings, and farmhouses that are let as holiday homes. The property attracts 3,000 visitors, providing finance for new investments. Wine tourism and wine-growing go hand in hand at Quinta dos Vales, and that will remain the case in the future, says Michael Stock.

BECOMING A WINEGROWER, STEP BY STEP And now we come to the ambitious new project, which goes far beyond marketing-oriented concepts such as ‘vine sponsorship’ and ‘wine seminars’. It is the tailor-made way to have your own vineyard, your own wine, and participate (not as a shareholder) in the top vineyard Quinta dos Vales. Tailor-made, because the route to becoming a winegrower can be taken by anyone who is interested, at the pace that suits them. You will always have the benefit of professional expertise, without having to take responsibility for the winery – and you can participate as much, or as little, as you like. To get a taste of the wine life, join a Bottle Blending Workshop, where you can look over the shoulders of the professionals and learn how to make your own blend, after which you are able to create your own ideal blend. You will take home three bottles of your own blends, to see how the wine develops in the bottle after six to twelve months. The next step up is the purchase of a vineyard plot. The recommended area for one grape variety is 2,000 sqaure metres, to make it possible to plant one to four varieties. The leasehold is valid for 99 years and the price includes the costs of planting and cultivation for the first two and a half years. It is a worthwhile investment, because the buyer creates long-term value that grows with the vines. To ensure that new owners do not have to be patient until their own vines produce a yield, they can rely in the meantime on freshly barrelled top wines from the winery and start making wine, or lease a vineyard that is already established. Depending on the

WINE-MAKING PRICES Bottle Blending Workshop (three hours) from €99.00 (including three bottles of the relevant cuvée) Barrel Blending Experience (6-18 months) put together a blend of the best wines from the previous year from €15.00 per bottle Rent a Vineyard (12-36 months) from €7.00 per bottle in stainless steel, from € 12.00 in French oak barrels Living on a Vineyard (99 years) from €60,000, plus a fee starting at €6.00 per bottle

age of the vines, a yield of between 8,000 and 10,000 kilograms per hectare (which equates to 2,500 to 4,000 kilograms of grapes for 4,000 square metres, depending on the desired quality) would produce between 1,500 and 3,000 bottles. That’s more than wine lovers can usually drink themselves in a year, so it should also be enough for friends and acquaintances!

LIVING ON A VINEYARD As a wine lover and proud owner of your own plot, you might want to watch your

vines growing – and even do the work in the vineyard yourself, if you prefer. In this case, you will need a villa overlooking the vineyard. Construction is scheduled to commence in 2019 on the first of the approximately ten planned units with their own vineyards in the northern part of the Quinta area. They will be luxuriously appointed to north European standards, with double glazing, underfloor heating and air conditioning. They will be around 200 square metres in size, but can also be larger or smaller if required. It is up to the owner whether they use their villa as a holiday home or a permanent residence. If you are not able to take care of your house yourself, this has also been thought of. All the building management, including maintenance, is carried out by Quinta dos Vales. Those who would prefer something sooner and a bit smaller have the option of one of the 32 ground-floor apartments, available in 16 individual houses from April 2019 onwards. Michael Stock, who is responsible for the project, says: “For 125,000 to 155,000 euros, you get not only a holiday home that can yield a return of up to five percent, but also your own barrel of wine as an extra. Or, to put it another way, you buy yourself a barrel of wine and

we give you an apartment as an extra!” Whichever investment you choose, there is one thing that is priceless and that is the pleasure of sipping the first wine of your own on the terrace of your own vineyard villa, looking out over your own vines.

THE ART OF WINEMAKING As a vineyard associate, you become immersed in the quality philosophy that is maintained at Quinta dos Vales. The first

and most important question is which grape varieties to plant. The best adapted to the terroir and climate are the typical, often indigenous varieties of Portugal: Touriga Nacional, Alicante Bouschet and others. The Algarve produces very elegant red wines, similar to the style of the wellknown Douro region – the reason that Quinta dos Vales wines won four gold medals at the big MUNDUS VINI Summer Tasting 2017. The winery’s oenologists will be happy to provide advice and assistance,

even when it comes to planting density, as this affects the yield and therefore the quality of the wines. If you then plant your vines yourself (with expert guidance), you will be on first name terms with every vine in later years. And you should definitely not miss the harvest. The grapes are harvested by hand in the early morning to take advantage of the coolness. This ensures that the grapes are healthy. Fermentation takes place until December, first on the mash and then, depending on the wine, in barrels or tanks. The choice of oak barrel – how much toasting, new or used? – is a key factor that determines the style of the wine. Whether the wine is varietal or matured as a cuvée is an important question. The ageing of the finished base wine in oak barrels lasts up to 18 months. During this time, you will regularly taste the wine to track the progress of the ageing process. The labelling and decoration of the bottle also require decisions. You soon come to realise the invaluable nature of professional assistance as offered by the Quinta dos Vales experts. It is vital for avoiding mistakes. In principle, winemaking is a fulltime job. It’s good and reassuring to know that associate winegrowers can have the work done by the Quinta dos Vales team if necessary. Information: www.quintadosvales.eu

For those interested in finding out more, you can visit us at ProWein at stand 10B15

SPECIAL REPORT KHAREBA

Georgia’s wine ambassador When the Kharebava brothers bought their first winery in 1995, they never dreamed it would become one of Georgia’s most successful wine enterprises.

f all the changes in the world of wine over the past decade, none has had such an impact as the emergence of Georgia. Before 2008 its wines were virtually unknown to Western consumers. Today, wine writers, sommeliers and consumers alike have been electrified by the diversity and quality of wines coming from this former Soviet republic. And no winery does a better job of showcasing the sheer diversity of what Georgia can do than Winery Khareba. Its wines now sell around the world, attract crowds at international wine fairs, and win medals in major competitions. Winery Khareba also functions as an ambassador for Georgian wines, through its wine shops, restaurants and wine tourism activities.

RISING LIKE A PHOENIX Georgia, one of the oldest wine region in the world, is recognized as the cradle of winemaking, but it suffered appallingly under decades of collectivized Soviet winemaking. The communist regime ripped out many of Georgia’s 500-plus autochthonous vines and, while sparing the region’s traditional white Rkatsiteli and red-juiced Saperavi varieties, focused on quantity rather than quality. Wineries were separate from vineyards, so

ancient Kakheti region, home to home to the David Gareja monastery and source of about three quarters of Georgia’s grapes. The terroir has been described as some of the world’s most perfect; the climate is moderate and there are ‘cinnamonic’ reddish coloured, sandy calcareous soils. In 2004, the family built a winery from scratch at Terjola in the Imereti region, and acquired vineyards, so they could grow their own grapes and build a reputation for quality. Winery Khareba was soon busy supplying clients in Russia. The family also acquired vineyards in other key regions, including Samegrelo and winemakers never knew what they were Lechkhumi and built a wine shop inside the going to work with until the grapes were winery. delivered. Most of what they made using In 2006, the Khareba family began to generally substandard equipment, was modernize their wineries and plant new mostly sweet and red. vineyards in different regions, such as After the collapse of the Soviet Union in Samegrelo, Racha-Lechkhumi, Imereti and 1991, the vineyards were abandoned, and the Kakheti. state-run wineries fell silent. When peaceful That same year, 2006, they hired their chief times returned, a small number of Georgians winemaker, Vladimer Kublashvili, who had took a fresh look at the hills and valleys where studied winemaking in Georgia, as well as wine had been produced for over 8,000 England and Germany. “Last year I did the years. It was time for a renaissance. Wine MBA in Bordeaux,” he adds. Winemaking is not simply an activity In 2006, the brothers bought what they in Georgia. It is an essential part of the call ‘the cave’, a 7.7 km tunnel. Near Kvareli, national culture. Vines and grapes feature on it was originally built as a Soviet bomb shelter. countless ancient artefacts and every family “Once it was finished, the government traditionally has a small plot of vines and a decided to use it as a wine cellar,” explains qvevri full of home-made wine buried in the Kublashvili. “They obliged soil beneath their home. No all the state wineries to send dinner is complete without wine there for ageing.” plentiful wine and a series It’s a remarkable place, of toasts orchestrated by the and not just because it’s tamada – head of table. the largest in the region. Among the first pioneers It’s 36,000 square metres of the revived Georgian and it lies beneath the wine industry were the three Great Caucasus mountain Kharebava brothers, whose range. The Kharebava family ancestors had produced refurbished it, not only filling wine for generations. In it with their own wine, but 1995 they bought a winery Vladimer Kublashvili, chief doing tours and tastings. in Kvareli in the famed, winemaker, Winery Khareba

Khareba was growing rapidly, with new wineries, refurbished vineyards and the continual rise in wine quality. Kublashvili drew not just on modern European winemaking methods, but also on the traditional Imeretian and Kakhetian ways of doing things by fermenting wines in qvevri. That, plus the influx of wine tourists, meant things were looking good. “The three brothers are all still involved,” says Kublashvili. “It’s not just a business for them – it’s their family.”

FROM CRISIS TO SUCCESS In 2006, Russia created a pretext to embargo Georgia’s wines, mineral water and agricultural products. This thrust the industry into crisis but, in crisis, as the saying goes, there is opportunity, and the Georgian wine industry understood that it had to reorient its production to Western tastes. The Georgians as a group began to market heavily to Europeans, who were amazed to discover the vibrant capital of Tbilisi, just a plane ride away. Wine quality kept improving, and noted European and American wine critics fell in love with Georgian wines and cuisine. In 2011 the Kharebavas remodeled the ‘cave’, adding a restaurant, a shop and different wine tour packages. “People can visit and taste the wines and be introduced to Georgian dishes,” says Kublashvili. The tunnels have become a major attraction, and are regularly rated five stars on TripAdvisor and described as one of the top things to see in the region. “Our visit to Khareba was the most memorable and successful during our trip around Kakheti wineries,” said one happy contributor to the TripAdvisor site. “Tourists can also taste wines from qvevri,” says Kublashvili, adding there’s an above ground restaurant that serves Georgian food. “It’s a nice tour.” At the end of the tour, visitors can explore the wine shop, where all of Winery Khareba’s wines are on sale. The range is wide, encompassing still wines made to European standards, sparkling and qvevri wines. While many Western sommeliers and critics are understandably fascinated by the unfamiliar flavours of amber-coloured

qvevri wines, these represent less than 5% of Georgia’s total production. However, they offer a perfect introduction to the growing number of wines Georgia is now producing from the autochthonous varieties that are being revived. “We produce more than 35 wines from local varieties,” says Kublashvili. The grapes used include Ojaleshi, Otskhanuri Sapere, Tsitska, Tsolikouri, Krakhuna, Aladasturi, Usakhelouri, Saperavi, Khikhvi, Kisi, Mtsvane and Rkatsiteli. The sparkling wines, too, are made from indigenous grapes, such as Tsitska, which gives aromas of white flowers. “We produce around six million bottles per year,” using state-of-the-art Italian equipment, says Kublashvili. “All our grapes come from our own vineyards. We now have 1,500 hectares and can really control the quality.” The attention to detail has paid off – in the past few years, Winery Khareba wines have accumulated 47 Gold, 26 Silver and 20 Bronze medals from international competitions. They have also had export success, selling to Baltic countries, Ukraine, UK, Belgium, Poland, Italy, Germany, France and China. Since 2013, Russian wine lovers can once again buy these wines in their own country, but today they have to compete with a growing number of Georgian wine fans from Boston to Beijing. The company already has the warehouses in Germany and Italy, and not just because of their wine. Khareba’s grape pip oil has also been a big success, particularly in China. In 2017 company opened its Asian office in China, “We have an office in Shanghai with Chinese staff,” says Kublashvili.

THE WINE SHOPS Winery Khareba now encompasses two wineries, vineyards, a massive underground complex, a restaurant, a café, wine tourism – and wine shops. The first opened in 2004, the second in 2011 and now they have wine shops in Tblisi, Kvareli, Batumi, Mtskheta, Poti, Kazbegi and Terjola. The shops are modern and offer comfortable bars where people can sample European-style and qvevri wines, as well as the oils. The concept has been so popular that another shop is opening soon – in the maritime city of Bari, in Italy. “It’s getting ready for its opening

ceremony,” says Kublashvili. A Georgian wine shop? In Italy? “The reason we decided to open it there is that in the city there is a church called St Nicholas. Our customers in Ukraine go to that city to visit the church. Also this is the great possibility to introduce Georgian wine to curious Italian wine lovers.” So, naturally, the wine shop is next to the church. “The next project could be in Berlin or Shanghai,” he says. “Probably Berlin first.” It’s a remarkable success story and a testament to hard work and the quality of the vineyards and wines. It takes a lot to build a successful international wine business in just one generation. To do this in the face of such political upheaval is remarkable. For the chance to sample the wines for yourself and to meet some of the Winery Khareba team, they will all be at the Georgian stand at ProWein. You’re in for a treat.

M A R K E T W AT C H CALIFORNIA

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ALL THE WINE IN CALIFORNIA The fifth biggest economy in the world is known for its technology, movie stars and wine. Liza B. Zimmerman looks at what the locals drink.

The wine market California permits supermarket wine sales— as do roughly two-thirds of US markets—which make purchase patterns skew heavily towards domestic. Supermarket wines tend to be priced under $20.00 a bottle with a focus on private labels, as offered by big chains such as Costco and the German retailer ALDI, which has recently made major inroads in Southern California. The total volume of 9L cases of wine bought in California in 2015—according to Jon Moramarco, a partner in the Napa-based data analyst Gomberg, Fredrikson & Associates—is valued at $63.1m. Of that $39.3m was sold through major retailers, such as Kroger, Walmart and

Costco; $6.9m though other retailers; $12.6m at restaurant and hotels; and $4.3m through winery tasting rooms and direct to consumer. In 2017, Moramarco estimates that 53.8m 9L cases were shipped to California, which accounts for 13.3 percent of all wine shipped in the US. Of these cases, 46.4m The state of California is the world’s sixth biggest economy.

ILLUSTRATION: BOOKA - FOTOLIA.COM

alifornia, the largest producer of domestic wine in the US, often supports the home team. However, as m a d e - i n - C a l i fo r n i a wine creeps up in price, the American economy fluctuates and consumers become more educated, imports are gaining better traction in the market. As the sixth largest economy in the world, the state has huge buying power, according to the Center for Continuing Study of the California Economy (CCSCE) in Palo Alto. With a GDP of $2.5tr, California is gaining ground on the United Kingdom as the fifth largest economy in world — and could overtake it this year. California also accounts for slightly more than one-eighth of the total US population of around 326m. California’s wine markets are centered on Southern California metro areas—such as Los Angeles and San Diego—where CCSCE says half of the state’s population lives, as well as the Bay Area, which accounts for one-fifth of residents.

were Californian wines, which account for 86.3 percent of all wine shipped to California. In addition 3.5m—or 6.5 percent—of these cases were bulk imports bottled in the state, funnelled into domestic brands such as Franzia and Bota Box. California residents primarily drink local wines, with an astounding 80 percent of wines bought in the state having been produced in California, according to Barbara Insel, president and CEO of data research firm the Stonebridge Research Group. Given this purchasing bias, international wine choices have not been that abundant in California in past decades. “In contrast to the north-east, California sees a lot fewer direct imports,” says Christian Miller, the Berkley, California-based proprietor of data analyst Full Glass Research. However, major change has occurred and an interest in foreign value wines and a new enthusiasm for sommelier-endorsed varietals and regions is growing.

The cash-rich 20- and 30-something tech community that has continued to migrate to the state is seen as a very open-minded winedrinking demographic. Observers say their deep pockets and quest for new experiences is driving interest in old-school favorites such as Burgundy, eclectic rosés and grower Champagnes. Operators in California have long sparked national wine-drinking trends as they have always had greater access to more domestic, small-production wines. At Single Thread Farms—a prix fixe restaurant in Sonoma where dinner for one costs close to $300.00— head sommelier Evan Hufford confirms that California restaurants set the domestic wine trends for the rest of the country as they are an “open and dynamic market”. Retail, and restaurant, buyers in California have also long had access to wines from many more sources than in other cities in the US. Operators buy directly from wineries, collectors, brokers and can have wine shipped from auction houses and out-of-state retailers by FedEx—36 states currently cannot. They can also work with wineries to make their own “house” brands. “We have access to not only the hits of the Old World, but all the unique and small-production wines that don’t make it to other markets,” adds Hufford. Since other markets, such as Las Vegas— where Hufford worked—tend to rely more heavily on purchases made through the threetier system, they tend to be dominated by large national wholesalers. “What ends up on the lists is much more mainstream and generally from larger producers with the numbers to sell pallets to casinos,” he concludes. Supermarkets are much more wine-focused in California than other regions of the country, to both the state’s benefit and detriment in terms of the wine mix. While 30 percent of wine is sold in supermarkets through the US, in California it is double that amount, according to Insel. As a direct result, most California cities have fewer fine-wine retailers than other markets

The sommelier revolution Curiosity and a renewed focus on value continue to expand the California wine market. Residents have also started to embrace sommeliers’ advice in restaurants and by joining somm-led wine clubs. Two major films, SOMM and Somm: Into the Bottle, released in 2012 and 2015, have also encouraged greater

CALIFORNIA AT A GLANCE

Sacramento

PHOTO: ULADZIK KRYHIN - FOTOLIA.COM

Sitting in the Pacific region, California is the most populous state of the US, with 39.5m residents. Its $2.6tr economy is the sixth largest in the world and one of the most dynamic global players, known for technology, innovation and popular culture, including film and television. It is, of course, also the US’s most significant wine growing state. The capital is Sacramento, and the cities of San Francisco and Los Angeles are global powerhouses, thanks to the proximity of Silicon Valley and Hollywood.

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of bigger houses,” says Pitts. trust in sommeliers. It is probably “California is drinking white not a coincidence that both films and red Burgundy. It seems that profiled the lives of sommeliers young and fresh is preferred for who lived in San Francisco. the white wines and at least 20 With this new openness years-plus on Red Burgundy.” comes a stylistic shift in wine She is currently pouring 2009, consumption. While for decades 2010 and 2011 red Burgundies, California consumers had been “While they still which, she notes, are drinking drinking higher-alcohol wines, make up for a beautifully. they are beginning to seek comparatively small Lesser-known grapes are out leaner vintages, both from chunk of the market, California and abroad. “Overall, guests are absolutely getting more play on lists too. Bowler says he sells a lot of comparing alcohol levels to the interested in unique wines from the Canary Islands in 1990s and 2000s, we’re definitely grape varieties.” California, including producers seeing a trend downward,” said such as Monje, Los Bermejos, Hufford. Evan Hufford, Viñátigo and Tajinaste. “The Corporate wine spending has sommelier, prices are fair and the wines also slowed down, in keeping with Single Thread generally deliver a lot of flavour the economic downturn since and interest for the price,” adds 2008. “The slower than expected Bowler. “Italy’s Sicilian varietals of Frappato economic recovery has mitigated the profligate and Nero d’Avola are also selling well, as is spending of days past,” says Hufford. French Gamay.” David Bowler, a New York City-based national “While they still make up for a comparatively importer, agrees: “The price of your average small chunk of the market, guests are absolutely bottle of wine at retail is in direct proportion to interested in unique grape varieties,” says how well the economy is doing.” Single Thread’s Hufford. “When we put things Wine lists around the state are getting like Validiguíe or Arneis into a pairing it’s often smaller and more manageable. “A very wellthe wine of the night… because the flavour selected small list is a great thing,” says Paul profile will often be unlike anything they have Einbund, founder of the single-location the had before.” Morris restaurant in San Francisco, though he California operators are getting steadily more admits he still has some editing to do. Tonya access to hard-to-get imports, adds Einbund. Pitts, the sommelier at California restaurant Some of his most popular wines include One Market in San Francisco, recently trimmed Northern Rhône Syrahs and Loire Valley reds. her list from 1,000 to 500 selections. He adds that he has “been running a Hungarian white for a while that is very popular”. International trends While sommeliers all over the country have long been fans, it took a few years for A love for grower Champagne and dry rosés consumers to fall for dry rosés. “Rosé is has been exploding across the state. “The word absolutely having its moment,” says Hufford. is more slowing getting out that sparkling The growing interest in the category among wines can be extremely serious and age-worthy California drinkers embraces not only and aren’t just for toasting a celebration,” says domestic versions but also classics from many Hufford. regions of France, as well as countries like He points particularly to the hot category South Africa. of small-production, grower Champagnes. “Rosé is bigger now then ever,” confirms They have long been sommelier favorites but Einbund. “I’ve always listed a rosé by the savvy consumers are finally onboard, seeking glass but I fly through them at this point so out smaller producers. Hufford adds that he that’s a new thing. They used to be sweet or an regularly gets requests for brands such as Eglyafterthought.” Ouriet and Paul Bara. Bowler says that there is With an influx of exciting new varietals, a a real interest in the in Pét-nat (or “naturally passion for sparkling and a newfound love of sparking”) category as well. rosé, California seems on track to become an “California is drinking Champagne: ever more diverse wine market. W [both] grower-producer and older vintages PHOTO: JASON JAACKS

like New York, where wine cannot be sold in supermarkets and wine stores can’t have multiple locations. So in California, the bulk of wine purchases is made at large grocers like Safeway and Albertsons, which tend to carry mainstream California wines and big-brand imports such as Antinori or Concha y Toro. The remaining 40 percent of wine bought in California is found at fine wine shops—which Insel estimates accounts for 25 percent of the market—then 15 percent at wine chains such as Total Wine & More. “California is the stand-out leader in supermarket wine sales, ringing up about $1.6bn in annual sales. That’s almost two times the amount sold in Florida, which sells the second-most wine in supermarkets,” according to a 2015 Nielsen press release.

TECHNOLOGY LANGUEDOC

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THE VALUE OF EXPERTISE What does it take to change a region’s reputation and focus? Darren Smith looks at a tool used in Languedoc.

use — an area where Guibert on the right track. Languedoc believes the labs’ influence is PR manager Louise Hurren, who questionable. “Daumas Gassac works with the Saint-Chinian has been reducing its SO2 appellation, notes that of the region’s top 10 wines, as judged [sulphur dioxide] down to the by blind tasting by judges in minimum — we are almost at the different countries each year, level of a natural wine for the at least three — Clos Bagatelle red,” he says. “The lab knows (first-placed), Château La Dournie how we work, but they are still Matthieu Dubernet, and Domaine La Linquière — are recommending what is ‘safe’.” Laboratoires Dubernet clients of Laboratoire Natoli. For wineries that view minimal “Brand Languedoc has been evolving since intervention and low sulphur use as a means the late 1970s when the focus started shifting of producing the highest-quality wine, such from quantity to quality, and making wine in recommendations may hamper more than bottles started to gain traction,” says Hurren. they help, Guibert believes. “We have plenty of appellation rules and “This is a perfect example,” he says. regulations to ensure that the DNA of brand “Philippe [Michel, cellar master] and my Languedoc won’t get lost, but it’s important team who have been doing it for 20 years — that we move with the times too. That’s where we know what works, but someone who has experienced oenologists can play a valuable bought his 10 ha and is making his wine for role.” the first year, what is he going to do? He is Moving with the times entails being going to add the SO2.” Languedoc’s awakening sensitive to changing consumer tastes and Jean Natoli has been consulting for 25 to the effects of climate change, Dubernet years. His company, Laboratoire Natoli, based Such scope and influence brings its own believes. It will also require an ever greater close to Montpellier, works with around 250 concerns over the potential of homogenisation focus on viticulture as producers refine Languedoc producers, from tiny three to five — particularly as the maturing industry their wine offerings and convert to organic, hectolitre operations to co-ops churning out seeks to convince the world of its fine wine biodynamic or natural; such producers now 70,000 hl a year. He does not lose credentials. account for 30 percent of Natoli’s clients. “We sleep over such concerns. “It’s a Samuel Guibert, owner and do think that vine growing and winemaking danger but I think the first quality winemaker of the so-called have to be brought closer,” he says. “For of a wine is to be well made, Languedoc Grand Cru Mas instance, vine fertilisation could be considered without defects,” he says. “If the de Daumas Gassac, believes as well as a winemaking process, considering final wine is correctly done, at this is a legitimate concern. all the influence it has on the wine balance. this moment there are so many “Languedoc is going through a The agro-enology concept is very promising.” elementary decisions — from the phase of awakening,” he says. The next phase, says Natoli, is to shout planting to the growing of the “No one disputes that there are about the achievements of Languedoc vines to the date of the harvest amazing quality [wines] coming producers. “When I [think of] the quality of to the strategy for the extraction, out of the Languedoc and that it the wines at the beginning of my career, we fermentation, ageing — that, even has improved a lot in the past have made a lot of progress,” he emphasises. with the same oenologist, it’s 10 years, and part of that is “I think the first “Now the problem is to be recognised for that. impossible that two wines could definitely with the help of some quality of a wine is Marketing is very, very important. Even very be exactly the same.” laboratories. But there is a risk to be well made, good wines at this moment are not recognised that we go through a stage of without defects.” enough for their quality. You have to be very uniformisation.” Results speak precise about that. It’s not only the talent, Labs, Guibert explains, are Jean Natoli, it’s the methodology. I think the Languedoc risk-averse. One good example of The accolades their clients Laboratoire Natoli needs that a lot.” W this is the lab’s advice on sulphur achieve would suggest they are PHOTO: PIERRE NATOLI

he Languedoc’s evolution from bulk wine heartland into one of the most dynamic regions for premium-quality wine in France is well documented; the role of consultancies in that development less so. The modern vine-to-market wine consultancy business in Languedoc was effectively founded in the mid-1960s by Narbonne-based Laboratoires Dubernet, which now works with around 300 Languedoc wineries, making it the biggest private wine laboratory in the region. Enabling such practices as estate bottling at a time when all Languedoc wine was still on the bulk market, figures like Matthieu Dubernet and, subsequently, Jean Natoli, have given many growers the confidence and capability to produce and market their own wines. They also act as a sort of think-tank for Languedoc wine.

WINE STYLES AUSTRIA

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ORCHESTRATING A NEW WINE STYLE The city of Vienna is one of the greenest in the world, producing up to 80 percent of its own vegetables – and its own wine. Felicity Carter reports on its flagship style.

City winemaking Vienna has been a wine capital since ancient times, when the Romans planted vines. Viticulture flourished within the city’s boundaries, though quality was inconsistent; at one point, Viennese wine was called “cask eater” because it could dissolve the hoops of a cask. But by the 18th century, Vienna had many locals producing wines for their own consumption, plus a little bit to sell. Christ heads down the hill, to the car. The drive back winds through Grinzing, lined with

rows of picturesque wine cellars. Some of these include the wine taverns known as Heurigen. This east Austrian institution both kept the Gemischter Satz tradition alive — and nearly killed it. The Heurigen date back to 1784, when Emperor Joseph II allowed residents to open establishments where they could sell their own wine and juices. Customers brought their own food — to avoid competition with restaurants — and the Heurigen only opened at some times of the year, when there was new wine to sell; the name is an abbreviated form of “heuriger Wein” (this year’s wine). By the 20th century, Heurigen also sold food. But while the Heurigen are a beloved institution, they have been accused of holding back Austrian wine quality. “Despite the undoubted attractions of the Heurigen, their existence has not helped in a quest for quality,” says writer Stephen Brook in The Wines of Austria. “Heurigen need to cater to all tastes and consequently far too many wines are produced and — because they are consumed alongside Vienna, capital of Austria

VIENNA’S VITICULTURE Area: Colours: Wineries: Principal wine:

637 ha 80% white 155 Gemischter Satz

food, chatter and general merrymaking — quality has not been a prime concern.” After all, when you can sell everything to locals who are there for the atmosphere; there’s no pressure to improve. “That why it was so late in Vienna to get quality wine,” says Christ. “The quality change happened around 15 or 17 years ago.” Premium production, when it arrived, went in a different direction. Prior to World War II, the origin of the wine — the village it came from — was more important than the varieties used. Farms were still mixed use, with wheat, sheep, hens and fruit trees on the same property as grapes. These too were mixed; if one row failed to ripen, the next row might still be good. Hence the field blend. Then came the tractor and new farming efficiencies, and the mixed farm gave way to the specialist. As winegrowers planted and replanted, they paid more attention to selection. By the end of the 20th century, vineyards were planted with single varieties like Riesling and Grüner Veltliner, and wine quality skyrocketed. While the Gemischter Satz PHOTO: MRGB - FOTOLIA.COM

t’s a hike up the Nussberg, especially when cold December winds are blowing. But the trek is worth it, because the air is crisp and the view of the Danube spectacular. Beyond the river are the spires of Vienna. Winemaker Rainer Christ from Weingut Christ is walking the vineyards, pointing out vines. Some of the vineyards here — 200 ha in total — are unusual because they’re not always blocks of a single variety, as is normal in a modern vineyard. Instead, an assortment of grapes are jumbled together — Riesling, Sauvignon Blanc, Grüner Veltliner and others. They will be picked and fermented together, to make a Gemischter Satz, the local term for the humble field blend. Once a quaffer sold in bulk, Gemischter Satz has become a star, the flagship of Vienna. It’s a paradox — an authentic, historic blend brought to life by modern winemaking, created not in a remote rural region but within the borders of a major capital city.

The revival “I was really surprised when I saw the old vineyards, the ones planted with field blends,” says Christ. The monoculture vineyards had succumbed to disease, while the old vineyards “were in outstanding shape”. He acquired an old Gemischter Satz vineyard of his own. He also discovered he wasn’t the only person interested in the style; in 2006, Fritz Wieninger from Weingut Wieninger founded Wien Wein (Vienna Wine), whose aim was to revive the Gemischter Satz by focusing on quality. “We started with four colleagues,” says Christ. “Now we have six.” The other members of the group are Thomas Podsednik from Weingut Wien Cobenzl; Thomas Huber from Weingut Fuhrgassl-Huber; Michael Edlmoser from Weingut Edlmoser and Gerhard J. Lobner of Weingut Mayer am Pfarrplatz. Between them, the six wineries manage 261 hectares, or 40 percent of Vienna’s viticulture. So successful have their efforts been that Italy’s Slow Food Foundation now includes the Gemischter Satz in its Ark of Taste, one of only 300 products worldwide to be so honoured. Today, even the mayor of Vienna makes a

Rainer Christ, winemaker, Weingut Christ

Gemischter Satz in the city’s winery. “Wien Wein influenced other colleagues and nowadays it’s the most planted wine in Vienna,” says Christ.

Beethoven’s pub Paul Kiefer, sales manager at Mayer am Pfarrplatz, is standing outside the entrance, ready to welcome Christ and his visitors. “Come and look around,” he says. Located in Vienna’s swanky 19th district, Mayer am Pfarrplatz’s complex includes a winery, a restaurant, a Heurigen — and one of Beethoven’s old residences. There are many Beethoven houses in Vienna; he famously feuded with his landladies and often needed

Mayer am Pfarrplatz

new accommodation. The Heurigen opposite the Beethoven house is cosy and traditional. Kiefer sighs and says he worries what will happen to the music, as the accordion player who comes to play traditional Heurigen music is getting old and there’s nobody to replace him. The group decamps to the restaurant, where Kiefer has placed examples of Wien Wein Gemischter Satz on the table. “All of the field blends are different,” he says. “Each winemaker uses his own recipes. Some use five or seven grapes, some only three.” To be an official Gemischter Satz, the wine must come from a vineyard in which at least three different varieties are grown. There must be no more than 50 percent of the main variety and there must be at least 10 percent of the third largest. Vienna’s Gemischter Satz must be a white wine and the blend can use up to 20 different grape varieties, including Grüner Veltliner, Riesling, Pinot Blanc, Pinot Gris, Chardonnay and others. The city itself is an important part of the terroir. “The Danube and the forest brings the temperature down during the night, but the city is collecting the heat during the day,” explains Kiefer. “The Nussberg is very windy and it always a minimum of three or four degrees cooler than the city. But when we have cold nights in spring, the city is warm enough to protect the vineyards.” It took a while for consumers to accept the Gemischter Satz, says Christ, because they associated it with the poor-quality wines from the Heurigen. But there were milestones. In 2009, the EU recognised Austria’s right to the term Gemischter Satz and in 2011, the “Wiener Gemischter Satz” was confirmed. In 2013, Wiener Gemischter Satz was confirmed as Austria’s ninth DAC (Districtus Austriae Controllatus, which is equivalent to a DOC). Kiefer pours the wines. They all have a strong mineral spine and refreshing acidity, but with plenty of variation according to the winery, running the gamut from savoury to light and delicate. After lunch, Kiefer heads back out to the entrance to wave everybody off. He points down a side street and says that’s where the new Beethoven Museum has just opened. “Beethoven is everywhere in Vienna,” he says. The great composer would no doubt have been delighted that Viennese wines are back on song. W

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still existed, it was confined to the Heurigen, where it was mixed with mineral water. Then, in 2002, catastrophe: a once-in-acentury flood that killed 110 people across the affected countries and rotted fields and vineyards. But not all of them.

WHO IS WHO BORDEAUX

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WHO’S WHO IN BORDEAUX PHOTO: MARCOCIANNAREL - FOTOLIA.COM

While other regions fall in and out of favour, Bordeaux retains its allure. Sophie Kevany identifies its pivotal people.

Bordeaux City

T PHOTO: PATRICK CRONENBERGER

he Bordeaux wine region has 65 different vine growing areas, or appellations, 111,000 ha of land reserved for viticulture, and 6,300 wine estates, according to the Bordeaux Wine Council (Conseil Interprofessionnel du Vin de Bordeaux, CIVB). Wine is one of Bordeaux’s leading exports. Almost 50 percent of its production leaves the country, and exports are at record levels. Sales to Asia alone, the leading buyer in 2017, accounted for 43 percent of exports by volume,

up six percent on 2016. In the same year, 21 bottles of Bordeaux “appellation d’origine protégée” (AOP) wines were sold every second, around the world, a total of 630m bottles, or €3.65bn ($4.5bn). Domestically, Bordeaux is one of France’s supermarket favourites, accounting for 46 percent of sales in 2016. Although robust, volumes were down three percent in 2016, compared with the previous year, again due to historically low harvest volumes in 2013, 2014 The CIVB’s wine bar, situated opposite the Opera House, has been such a success that the concept has spread to Asia and the US.

and 2015 — and likely 2017, although final figures have not yet been released. The average supermarket price for a bottle of Bordeaux in 2016 was about €5.35. That may seem low to those who are used to Bordeaux starting at €10.00 but, in France, the most popular price range for supermarket wines is between €3.00 and €5.00. Bordeaux red remains the best seller, at 85 percent, followed by white at eight percent and rosé at seven percent. And, of course, Bordeaux is world-famous for its great chateaux. But while the names behind these legendary properties are well known, there are many others that work to ensure the region itself functions as well as it does.

The Bordeaux Wine Council (CIVB) Wine Bar Home to one of the most eclectic wine lists in town, the bar last year welcomed almost 80,000 visitors, up on three percent on 2016. Opened in 2006, it sits on the ground floor of the Bordeaux Wine Council’s triangular limestone building, in the heart of town. If you like a bit of schadenfreude with your chosen wine, it’s easy to imagine someone on the CIVB team working late upstairs, while you contemplate the aromas in your glass. About 30 different Bordeaux wines

Allan Sichel, Bordeaux Wine Council (CIVB) President

changing weather patterns in the area, which have increased the intensity and duration of summertime heatwaves.

L’Intendant and Cash Vin

PHOTO: JEAN-BERNARD NADEAU

Allan Sichel, a highly respected figure, has been in the role since 2016. He is also the CEO of his family wine brokers, Maison Sichel (leading it since 1998); a municipal councillor in Margaux; and a member of the Jurade de Saint-Emilion, a wine-focused, ambassadorial group that traces its roots back to a royal charter issued in 1199 by John Lackland, King of England. The CIVB is tasked with a range of responsibilities by its wine-growing members, including data gathering, marketing and fighting counterfeiting.

Allan Sichel, president, CIVB

The Chapon Fin Opened in 1825, the Chapon Fin is a cornerstone of Bordeaux gastronomy. It is housed in a beautiful old building on the Rue Montesquieu, the street named after the famous political philosopher and satirist who was born just outside the city in 1689. The Chapon Fan was one of the first restaurants to be awarded a star by the Michelin Guide in its 1933 edition (although it lost it in 2015). Leagh Barkley, the sommelier, is Canadian. He won the Exp’Hôtel award in November 2017.

Saint-James Hotel, Bar and Restaurant The restaurant has been run by chef Nicolas Magie since 2017 and has one Michelin star.

Patronised by locals and visitors alike, L’Intendant is located in the town’s centre on Allées de Tourny, just footsteps from the Grand Hotel. The store was founded in 1886 and is owned by one of Bordeaux’s best-known wine merchant’s, Duclot — the only one allowed to sell Pétrus. Duclot also owns the Badie wine and Champagne stores, a little further down the road, as well as several other outlets in Paris and Brussels. Since its founding, L’Intendant has focused on prestige brands and larger bottle formats. With many of the wines coming directly from Duclot, L’Intendant promises, along with fair prices, excellent storage histories, thanks to its 20,000sq m cellar.

Didier Coustou, Leclerc Didier Coustou of the Leclerc supermarket Sainte-Magne-de-Castillon, a few kilometres outside Bordeaux, is the largest buyer of Bordeaux wines in the region. In 2016, the shop’s central buying facility became the 14th largest by turnover in France’s south-west region. Visitors who happen to be in Bordeaux in autumn might want to check the dates of the Wine Fair or “La Foire au Vin” — when all the main supermarkets sell bottles and cases at discounts — find a ride and make their way to Coustou’s place, known as one of the best in the area.

Guillaume Deglise, CEO, Vinexpo

Jane Anson, wine writer Born in the UK, Jane Anson is the author of Bordeaux Legends, the first major book to tale a holistic look at the rise of Bordeaux’s five first growths. Anson also writes tasting notes on Bordeaux wines for Decanter magazine and is a weekly columnist for Decanter.com. More recently she has published a book on natural, organic and biodynamic wines called Wine Revolution, and, in 2016 won the Louis Roederer Champagne award for International Feature Writer of the Year. She is a graduate of Bordeaux’s Faculty of Oenology where she studied winemaking and tasting with some of Bordeaux’s most respected producers and academics, including the late Denis Dubourdieu.

Jane Anson, wine writer

Guillaume Deglise, Vinexpo Vinexpo is one of the biggest wine fairs in the world, and the biggest in France. The 19th edition took place last year in Bordeaux and there is a sister event in Hong Kong that takes place every second year. Since 2013, Guillaume Deglise has been at the helm of both. A major international event, Bordeaux’s Vinexpo welcomed almost 2,300 exhibitors from 40 wine-producing countries and 40,500 international buyers, in 2017. In 2019, Deglise has said he will move the show to May, four weeks earlier than its normal June slot. The move — like the lower harvests — is linked to

Nicolas Martin, Bordeaux Tourist Office Nicolas Martin is the director of the Bordeaux Tourist Office. According to Martin’s data, 56 percent of Bordeaux visitors already

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Lovers of architecture will have fun discovering the history of the building, designed by Jean Nouvel, while furniture aficionados can look around checking for signed pieces by Verner Panton and Charles Eames. Chief sommelier Adrien Champigny manages a cellar that holds nearly 15,000 bottles; about 1,800 of those are from other regions.

PHOTO: JULIE REY

are on offer by the glass and the list is updated about once a month. A magnet for tourists, its aim to showcase the region’s diversity. Prices are affordable, ranging from €2.00 to €8.00 per glass. So successful has the concept been that the CIVB has opened similar bars in Shanghai, New York and Japan.

have some wine tourism experience, either a château visit or a wine tasting. But Bordeaux’s success as a destination is probably thanks to its multifaceted nature. So while tastings and châteaux visits are a key element, tourists also enjoy the city, its history and architecture and, just an hour or so to the west, the maritime pleasures of the Arcachon Bay, the Dune du Pilat (the biggest dune in Europe) and a significant stretch of Atlantic coastline. According to a study conducted three years ago, the revenues linked to tourism in the Bordeaux city area, known as the Metropole, were worth €980m. New wine tourism projects in the pipeline include a restaurant in the chapel of Sauternes’ organic Château Guiraud and a project to renovate the hotel, spa and golf course, Relais de Margaux, by the owners of another Bordeaux hotel and spa, the Sources de Caudalie.

The Cité du Vin has become a major tourism drawcard. PHOTO: SERGE CHAPUIS

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WHO IS WHO BORDEAUX

Sylvie Cazes is president of the Fondation pour la Culture et les Civilisations du Vin, the group charged with bringing the Cité du Vin to fruition.

Cité du Vin As of June 2016, many are also making their way to one of Bordeaux’s newest and biggest tourist attractions, the Cité du Vin. Last year the exhibition, which is housed in a Guggenheim-like swirl of a building and cost €81m ($99m), drew 445,000 visitors through its doors. The initiative, which took almost two decades, was spearheaded by one of the highest-profile women on the Bordeaux wine scene, Sylvie Cazes. A wine producer, Cazes also runs her own wine tourism agency and owns the Chapon Fin.

Pierre Castel, wine (and beer) producer Pierre Castel, owner and president of the Castel Group, with headquarters in Bordeaux, is a local and international financial heavyweight. He and his siblings, nine in total, are a living rebuke to the oftquoted maxim that the best way to make a small fortune in wine is to start with a large one. They started very small and grew to become the largest wine producer in Europe, as well as the second largest beer and soft drinks producer in Africa. Wine brands include Malesan, Listel, Patriarche and Kriter and the group now sells 640m bottles a year and employs 28,000 people. The family has become the ninth wealthiest in France, according to latest rich list compiled by French business weekly Challenges, which estimates Castel’s fortune to be nearly €11.5bn. As well as beer and wine production — with one of its latest offerings being a non-alcoholic wine called Grain d’Envie — the group has acquired national wine seller Nicolas.

Pierre Antoine Castéja, Négociant Maison Joanne Pierre Antoine Castéja and his family also feature on the latest Challenges rich list, although a little further down at 388th. Founded in 1862, the Maison Joanne in Bordeaux (along with two subsidiaries, Joanne Bordeaux USA and Joanne China — are now led by Pierre Antoine Castéja, Olivier Castéja, Éric Castéja and Hélène Fournier, all descendants of founder Paul Joanne. The company also owns vineyards, including Sauternes’ classified growth Château DoisyVédrines. Joanne possesses one of the largest collections of Bordeaux wine in the

city, stored in a 14,500sq m cellar, holding six million bottles. Having moved into the direct export space with Joanne US and Joanne China, the company is now exporting to 63 different countries.

Xavier Coumau, Courtier There are about 100 courtiers working in and around Bordeaux. These are the men (and a few women) who help the producers and négociants reach pricing agreements when the time comes to sell every harvest. Xavier Coumau has been in the business for almost 25 years and has built up a significant network, dealing with 15 négociants and just over 60 producers. A key part of his job is building trust and loyalty between the merchants and growers. In a sign of the times, last year Coumau took on his first organic wine producer. As president of the Wine Brokers Union, he is also involved in the Bordeaux 2025 Ambitions initiative (formerly called Bordeaux Tomorrow). The event gathers major wine industry players together to consider the future of Bordeaux’s vineyards and wines. One of their current challenges, he said, is how to maintain Bordeaux’s status and identity in the face of rising wine production standards worldwide.

Stéphane and Christine Derenoncourt, Winemaking Consultants Stéphane and Christine Derenoncourt run Derenoncourt Consultants, specialising in biodynamic and natural wines. The company, founded in 1999, now deals with nearly 130 producers from 17 countries. Originally from northern France, Stéphane Derenoncourt set up shop at Domaine de l’A, in Bordeaux’s Côtes de Castillon region. The estate has 10 hectares of clay-limestone soil and the vines are mainly Merlot (80 percent) and cabernet francs (20 percent). Two years ago, the Derenoncourt vineyard was recognised by the Culinary College of France — le Collége Culinaire de France, an association charged with promoting quality French food — as one of its Quality Artisan Producers (Producteur Artisan de Qualité). He was also recently invited to join the organisation’s Select Winegrower’s Ethics Committee (Comité Ethique de Sélection des Vignerons). W

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M A R K E T W AT C H GERMANY

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HOW TO GERMANY Germany is the world’s biggest wine import market. But it’s fragmented and complex. Felicity Carter untangles it.

Seventy to seventy-five percent of wine sold in Germany costs less than €3.00, according to Chris Swanepoel, head of marketing at distributor Mack & Schühle. “Three euros is the big bang,” he says. There is a reason for this. Germany suffered hyperinflation and economic collapse in the 20th century and the memory of that has left Germans averse to debt and inflation. They are also a thrifty people, with one of the highest rates of household savings in the OECD. Put all of this together and the result is a retail market that is exquisitely sensitive to

It’s all about regions Distributors and buyers report that producers — particularly from the New World — approach Germany believing it operates like the UK, with the buying done by the head office of each national chain. In fact, it helps to think of Germany as more like the

US — distinct markets in one country, except without the internal trade barriers. What’s on the shelves of big-name retailers can vary by region; in some cases, the local store may be a franchise, where the owner has discretion over what’s on the shelf. The German markets most open to new styles of wine are those of the northern Hanseatic cities — trading centres that were once part of the mediaeval trade bloc known as the Hanseatic League. These include Hamburg, Germany’s second biggest city, and Bremen. These wealthy areas are also more likely to buy premium wines and less likely to buy extremely cheap wines. The same can be said for Frankfurt, Germany’s financial capital, and its surrounding cities. Munich, despite its wealth and sophistication, is more likely to embrace wines from Italy or Austria, its regional neighbours. Germany is also a major wine-producing country and cities near wine regions have a bias towards their own wines. This isn’t always a road block — as wine consultant Kevin Gagnon points out, the local wine industry sets local prices. If the average bottle at cellar door is €7.00 or so, that’s what the locals will be willing to pay. Gagnon suggests that entering a local market can be one way of testing the waters and building a reputation, especially for wineries that can’t supply volume or “musthave” brands. One potential route to market is to look for restaurants that serve specific

THE TOP FIVE RETAILERS BY SIZE

Markus Hotze, managing director, Eggers & Franke

Retailers

Retail brands

Edeka Group Rewe-Group Schwarz-Group Aldi-Group Metro Group

Edeka, Martkkauf, Netto, Plus, Treff 3000 Penny, REWE, Kaufpark, Fegro, Selgros Lidl, Kaufland, Handelshof Aldi Nord, Aldi Süd Real, Metro, C+C

PHOTO: MATTHEW DIXON - FOTOLIA.COM

The cold hard reality

price. It’s not surprising to discover that the “hard discounters” — stores like Aldi and Lidl, which offer a diminished range of products at very good prices — are a German invention. “Suppliers have to understand that this market is very challenging and competitive,” says Markus Hotze, managing director of distributor Eggers & Franke. “It’s a lowprice market and dominated by the discount business. Wine consumption is flat.” Hotze goes on to say that the on-trade represents a maximum of 15 to 20 percent of the market, while a full 50 percent of wine sold in Germany flows through the discounters. The good news, however, is that once a wine is established in the market, it can expect to sell for a long time, because Germans are conservative consumers who stand by their preferences. And if that wine is on the shelf of a big supermarket or retailer, it will sell major volumes. Also Swanepoel says that although a lot of wine is sold very cheaply, “there’s still a big market above that. There is a trend towards more premium wine, above €5.00.”

SOURCE: LEBENSMITTELZEITUNG 2016 VIA GERMANY TRADE & INVEST INDUSTRY OVERVIEW

very year, the end of day one at ProWein sees a few producers heading out to dinner, looking shell-shocked. They’ve arrived in the world’s biggest wine import market bearing fine wines, only to be asked if they can supply quality wine at slash-and-burn prices. It gets worse. After the producers have consoled themselves with food, the waitress then announces she can’t accept the credit card and needs payment in cash. How can this be? Germany is one of the world’s most robust economies, seller of high-priced luxury cars. What’s with the penny-pinching?

really quite open to the idea of having a well-stocked portfolio and are happy to have more than one producer from the same region, as long as they’re offering something a little bit different.” It’s possible to approach independent retailers in a similar way. Gagnon advises against sending samples out of the blue and adds that, for independent retailers, the “sweet spot is €10.00 to €12.00”. Hotze says that a regional strategy makes sense for producers of limited resources and “if there is uncertainty regarding the potential of a product. Sometimes, when it comes to highly competitive segments,

The German consumer Frequency of wine consumption by age (%)

Multiple times per week 6 Never

Once a week 8

Wine drinking frequency (%)

Two or three times a month

12 10

Less than once a month

50 40 30

Two or three times a month

Once a month

Once a week Multiple times per week

Less than once a month

16-29 years

30-49 years

50-65 years

over 65 years

White

Red

Wine style (%)

♂

♀

Rosé

Direct or online (2%)

Outside the country (2%)

Winery

2 2

Discounter 14

Wine specialist retail

Buying channel (%)

36 13

♂

13 35

♀

33 Super- and hypermarkets

SOURCE: PROF. GERGELY SZOLNOKI, HOCHSCHULE GEISENHEIM UNIVERSITY, 2017. NOTE THERE MAY BE SOME BIAS TOWARDS CERTAIN ATTRIBUTES DUE TO THE SAMPLING METHOD.

t could make sense to focus on a specific region with a dedicated distributor.”

Going big To appear on the shelves of the major retailer or prestige HoReCa, however, a national distributor with a deep market understanding is needed. “Some of the discounters only fill in Germany,” says Swanepoel, meaning they buy bulk wine or use a tender process. To find out when tenders are happening, producers either have to be on the email list of a buyer or “work through a distributor, because the big distributors know all the tenders”. Swanepoel also advises that retail is very fragmented. “Edeka looks very big from the top. Rewe looks very big — 3,400 stores — but it’s also broken down into different regions. Groups like Edeka are heavily franchised and have private owners.” To complicate things further, if a producer wants to enter the stores of a retailer that uses franchisees, they might need to get permission from the national purchase manager, which then allows them to work store by store. Another strategy the big chains use is to try out a product at a shop level before they consider further regional or national distribution. What this all means is that building national distribution can take time, even with the support of a major distributor. And it will requirement investment. “If you want fast-moving distribution, you’re going to have to invest in that and in making sure that your product is on promotion,” says Swanepoel. “It’s important to invest in point of sale and, from the start, to invest in the quality of the packaging.” As for labels, Swanepoel says the market is still conservative and classically oriented. Hotze agrees that packaging is crucial. “We have cases where we’ve grown only by changing the packaging,” he says. “Sometimes it looks a bit old or 1990s and then, when you give it a little twist, it can really boost the business.” Hotze adds that the German consumer prefers traditional labels. “We get offers for wines that have done well in the UK, but they don’t work in Germany,” he says. “There are some exceptions — Yellow Tail is doing well — but in our experience, modern labels rarely work well.”

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communities, as restaurants can buy directly. “Let’s talk about Chile,” he says. “They have an excellent ex-pat community who will be much happier to get a Chilean wine than a French one.” He cautions, however, that it’s important to find the right restaurant, because many just want the cheapest wine they can get. “The restaurants that are actually putting together a beverage programme will be far more interesting,” he says. Another possibility is looking at similar producers and seeing where their wines are listed in Germany. “Then contact those restaurants directly,” Gagnon suggests. “Agents are

Wine imports to Germany 2015-2016 2015 White wine

Value (€1K)

Volume (hl)

€/hl

Value (€1K)

Volume (hl)

€/hl

647,000

6.83m

650,000

Red wine

1.23m

6.62m

187

1.12m

6.34m

185

Still wines total

1.9m

13.5m

140

1.83m

12.96m

141

Liqueur wines total

28,000

70,000

394

34,000

84,000

403

Aromatized wines

30,000

200,000

148

36,000

245,000

148

Sparkling wine total

361,000

637,000

567

385,000

604,000

638

Champagne

165,000

83,000

1.98m

187,000

94,000

1.97m

2,407.000

14.49m

162

2.389m

14.38m

166

Total wines

samples. “We have different tasting panels within our company. We look into the wine and make a decision on whether this wine or product is interesting. Then we would make an appointment.” For other distributors, the appointment is the first step. ProWein is where most distributors will hold their meetings — but appointments fill up quickly and should be made the year before. An important German ethic is transparency, and potential German partners will want full disclosures about production and pricing. Evidence of sales elsewhere will help, too. “Awards, points and medals definitely help,” says Hotze. He cautions, though, that point inflation

He has more bad news for New World players; the category is mostly stagnating, apart from New Zealand, largely because Sauvignon Blanc is growing. Instead, consumers are returning to classic regions: Rioja, Bordeaux, Tuscany and so on. Hotze says he’s also seeing sweeter, fruitier wines with good acidity appearing: “But the Germans always drink sweeter wines, so it’s a bit difficult to say if it’s a trend.” Swanepoel says he sees a trend towards bigger, sweeter reds, especially Primitivo and brands such as Apothic and Carnivor.

How to approach a distributor It’s crucial to look first at the distributor’s portfolio, to see where their gaps are and then contact the office and ask how the distributor would like to be approached. Hotze says that Eggers & Franke conduct internal tasting assessments and welcome

Kevin Gagnon, wine consultant

means that points need to be 90-plus — and not all competitions are equal. “Mundus Vini has a very good acceptance, so that we would definitely communicate that.” But unfortunately the medals have to be Gold or above to have any marketing value. Awards alone won’t sell a wine. “The first question we ask is ‘what vision do you have? What do you want to achieve?’” says Hotze. “Concepts that worked in the UK don’t necessarily work in Germany.” Swanepoel says it helps if the producer has researched the market and put some thought into channels and strategies. “Spend time in the market — go and see the supermarkets and the restaurants.” For producers willing to do the work, Germany offers not just volume but also loyalty. Germans value relationships and if something’s not working, distributors will typically devise a different strategy and work to overcome the problem, rather than simply severing ties. Even better, Germans are very clear about costs, margins and fees and there won’t be nasty surprises, as there are in other markets. Swanepoel, who is from South Africa, says: “The Germans are very friendly people. They are very straightfoward but they are extremely good to work with. They pay on time.” He adds: “It’s a healthy country with a strong economy.” W

2016

Wine imports by country of orirgin 2015 Top ten countries

SOURCE: DEUTSCHER WEIN STATISTIK 2016-2017 (DWI)

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M A R K E T W AT C H GERMANY

2016

Value (€1K)

Volume (hl)

€/hl

Value (€1K)

Volume (hl)

€/hl

Italy

854,000

5.48m

156

863,000

5.47M

158

France

673,000

2.248m

299

671,000

2.14m

313

Spain

370,000

3.82m

351,000

3.5m

100

USA

102,000

493,000

207

95,000

467,000

202

South Africa

93,000

845,000

110

88,000

819,000

107

Austria

61,000

308,000

199

69,000

292,000

235

Chile

72,000

539,000

134

65,000

492,000

131

Australia

58,000

446,000

129

51,000

425,000

120

Portugal

34,000

153,000

226

40,000

185,000

217

New Zealand

16,000

43,000

363

23,000

64,000

358

2.03m

12.28m

165

2.03m

11.84m

171

Other countries

EU states

381,000

2.68m

142

362,000

2.62m

138

TOTAL

2.41m

14.96m

161

2.39m

14.46m

165

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WINE STYLES INDIGENOUS GRAPES

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THE BADGE OF AUTHENTICITY There’s a lot of excitement about autochthonous grapes. But is this reflected in vineyard plantings and sales, wonders Simon Woolf.

PHOTO: MIKE RUSH

PHOTO: KIN HO

The world’s got enough Sauvignon, enough minds as quickly without the he premium end of the Chardonnay.” He’s excited about a recent trip exoticism of its indigenous food market is obsessed to Chile — “They were planting País there in Nerello Mascalese to blaze with authenticity. No the 16th century, and now it’s making a big the trail. one asks where a €5.00 revival, along with Carignan and Moscatel” — There’s a challenge ($6.12) “farm fresh” chicken and confirms that he’s already long-listed a with this celebration of comes from, but shoppers large selection of Chilean wines for potential lesser known cultivars — paying three times that at a addition to the club’s list. the wine industry and its farmers’ market expect not That said, it is clear that even the highly geekier hangers-on are only to look the farmer in educated wine drinkers who frequent 67 Pall easily excited by rare and the eye, but also to know the Mall are hardly lapping up País, Poulsard or indigenous grape varieties, breed of the chicken, its daily Ronan Sayburn MS, Romorantin by the double magnum. Sayburn be they rediscovered, unduly exercise routine and whether 67 Pall Mall notes that Schiava — a light red variety from neglected or just out of it had a name. Italy’s Alto Adige region — always does well, fashion. But are consumers following suit and Fruit and vegetables also have the concept and that the Savoie and Jura have enjoyed a embracing the movement away from Cabernet of authenticity: conscious consumers want to recent period of being in vogue. Sauvignon and Chardonnay? buy locally available, seasonal produce and But he counters this with the observation Not according to a survey published in even better if they are rarer varieties with that lesser known grape varieties take a 2015 by the Wine Economics Research Centre a narrative relating to a specific territory. considerable amount of time to permeate into at the University of Adelaide, which brought Biodiversity might be greatly reduced in the public’s collective recognition: “You could together data on worldwide vineyard plantings. the 21st century, but apples, tomatoes and make an analogy with a designer fashion The research by Kym Anderson and Nanda R. potatoes (to name but three) are still grown house — eventually what they’ve done will Aryal showed that during the 21st century, in myriad varieties by artisan producers — api filter down to high-street chains. So 10 to 15 plantings of varieties such as Merlot and apples, noir de Crimee tomatoes and pink fir years ago, people didn’t really know anything Cabernet Sauvignon had actually increased, potatoes have their fanbases worldwide. What about Viognier, but a few Condrieu producers finally toppling the much-maligned Airén from is wine’s equivalent? were putting amazing wines on the market and its number spot as the world’s most planted now there’s more awareness of the variety.” Vitis vinifera cultivar. Seeking authenticity Sayburn talks in similar terms about The caveat to this publication was that the Grüner Veltliner — also little known outside of latest figures were from 2010. If the research Jamie Goode’s seminal work on natural its native Austria a decade ago — and notes the were repeated in 2018, would figures perhaps wine from 2011 was called Authentic Wine. relatively recent popularity of Picpoul de Pinet show a reversal of this trend? The picture It’s a well-chosen term — after all, natural on the club’s list: “It’s the new Muscadet.” To from most wine professionals is anything but wine’s cause celebré is authenticity. Getting many industry insiders, these names will seem straightforward. back to the roots, returning to historic and almost over-familiar and anything but obscure. Ronan Sayburn MS heads up the team of regional traditions and resisting globalisation It’s a clear demonstration 16 sommeliers at 67 Pall Mall, are the watchwords. that the trade bubble can be a wine club which opened in A large part of that cause should and does unrepresentative of what is London in 2015. The club relate to grape variety. Most growers who see really selling on the floor. boasts the world’s largest themselves as part of the natural movement by the glass wine list, now are keen to market those grape cultivars that extending to 800 choices from truly originated in their region, and which Classics still winning a 4,000-bin “by the bottle” have some kind of cultural resonance. Olivier offering. Cousin’s claim to fame is not only his fight Across the pond, Sayburn has no question against the petty Anjou appellation, but also Pascaline Lepeltier MS about where the sweet spot his championing of an ancient local variety appears to have presided lies: “The indigenous side — Grolleau is the badge of authenticity that over a more marked of things in every country Pascaline Lepeltier MS, gives his story its colour. Sicily’s Etna region evolution during her is where the interest is. sommelier probably wouldn’t have captured hearts and eight-year stint at the

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present they want to go for own choice. Supermarket celebrated Rouge Tomate restaurant: something they know.” chains in Europe barely “When I arrived it was still dominated by move beyond the “big 20” Chardonnay, Sauvignon Blanc, Pinot Noir, international varietals, even Merlot, Cabernet Sauvignon and Malbec — In the vineyard if this is spread over an and even selling Riesling or Chenin was a offering of more than 1,000 challenge. But then with the new dynamic Taking all of these different wines. Meininger’s the wine world saw in New York, with anecdotal experiences reported about Waitrose’s more importers/distributors and broader into account, there is little listing of a Terret Blanc ranges of high-quality wines, the spectrum consensus on any rising from the Languedoc last expanded in an incredible way — partly indigenous stars. But what year, but this is still very Sam and Charlotte Brown, due to the natural curiosity of American are producers are actually much the exception rather Vino Vero palates.” planting? Given that a new than the rule. She then proceeds to roll call an vineyard takes between five Independent wine merchants tend to extraordinary range of varietals that have to seven years before it starts delivering offer greater variety, partly as many are made inroads into her audience: Poulsard, quality, fashion in wine varietals moves focused on wines at the more “natural” end Trousseau, Pineau d’Aunis, Romorantin, more slowly than breeds of cattle or tomato of the spectrum, as a way of differentiating Mondeuse, Nielluccio, Godello, Mencia, cultivars. Furthermore, census data on from the multiples. But again, big cities Fiano, Freisa and Nosiola to name only a few. vineyard plantings has historically only tend to operate in bubbles. Sam Brown is She does, however, note that older vintages been collected every 10 years — with 2009 co-owner, with his partner Charlie, of a of Bordeaux reds and whites continued to or 2010 being the last year where data is neighbourhood wine merchant in Leigh-onbe far more popular at the restaurant than available in some countries — making it sea, Essex — about 60km east of London. she had first expected. difficult to see the overall picture with any Vino Vero is fuelled by the passion of its Sabas Joosten is head sommelier of certainty. wine-loving owners, but as Sam explained, three Michelin star restaurant De Librije in Italy’s latest census on grape varieties it has to follow the local market: “Once Zwolle, Netherlands. His experience leans by vineyard surface reveals an indigenous you’re outside the London bubble there’s more towards Sayburn’s than Lepeltier’s. star that went unmentioned by everyone quite a bit of lag. Grape He doesn’t mention any interviewed for this article — perhaps varieties that five to 10 specific varietals that are because relatively swift and massive years ago were having a on customers’ lips but notes growth sullied its quality reputation. Nero thing — like Grüner Veltliner that wines from Portugal, d’Avola has shown a 31 per cent increase in — still haven’t made it here. Hungary and Greece vineyard surface when comparing the 2000 We’re finding that even now have all done their bit to and 2010 censuses. Italy now has almost as people don’t really know increase the presence of much Nero d’Avola as it does Pinot Grigio. what that is.” indigenous varieties on the Eurostat, the statistical collection agency Nonetheless, he notes restaurant’s list. Joosten’s of the EU, has more recent data from 2015 that the shop has had audience doesn’t appear that shows that a further 3,300 ha have increasing success with to find Riesling quite as been planted since 2010. problematic as British or Sabas Joosten, head sommelier, Albariño and Dry Furmint. Austria’s data, last collected in 2015, “Spain’s a popular holiday American customers. He De Librije bears out the Grüner Veltliner theory — destination, people go there muses: “I don’t think we’ve there were almost 1,000 more hectares and drink Albariño or Verdejo in a bar, then done one wine-pairing menu in the past of the country’s most well-known grape they come home and know to ask for it,” he five years that didn’t feature at least one in existence in 2015, compared with says. Tuscany’s minor red grape Ciliegiolo Riesling.” Despite his own love of Sherry, 2009. This is the only piece of good news is also singled out: “It’s so fresh and fruity, he still feels it is too risky to include as a for indigenous grape fans though, as people love it.” pairing, although an unfortified Palomino Blaufränkisch, St. Laurent and Neuburger Brown observes that indigenous Fino did make the grade. are all in decline. varieties aren’t necessarily always obscure: Both Joosten and Sayburn are clear that The message from these statistics is that “Everyone knows Argentine Malbec, but “guests who choose their own wine tend to as much as smaller retailers or sommeliers the vast majority don’t realise it’s a French go for more classical regions”. Experiments observe trends at the point of sale, those variety. When you offer them a Malbec from with unusual varietals is something that trends were already shaped to a degree Cahors, they’re quite interested and they’ve is almost invariably hand-sold by the in the vineyard. And the chances are that never had it.” His findings on price tally sommelier. there, they were heavily influenced by with Sayburn and Joosten: “At the premium Retail appears even more conservative supermarket buyers who know that easyend of the market people tend to play it than the restaurant world, especially going Nero d’Avola is a far more reliable sell safer — and if they’re splashing out for a when the customer is left to make their than Piedirosso, Freisa or Uva di Troia. W

M A R K E T W AT C H SWEDEN

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SOMMELIERS AND ROCK STARS Sweden’s sommeliers are recognised as some of the best in the world. They’re also highly influential. L.M. Archer asks them what makes them tick.

layers in Sweden’s acclaimed food and wine scene turn to its sommeliers to assure success. Despite a highly regulated national alcohol retail monopoly, a social system laden with high taxes and labour costs and scant domestic wine production, Swedish sommeliers thrive both at home and abroad. In 2016, Arvid Rosengren won Association de la Sommellerie Best Sommelier of the World in Argentina, and in 2017, Rubén Sanz Ramiro won the Decanter World Wine Award, Fredrik Lindfors won first place in the Nordic Sommelier Championship, and Tina Johansson garnered the Lily Bollinger Award for Best Female Sommelier in Sweden. Today, a successful sommelier represents not only the difference between losing money and making a profit, but capturing a popular cultural zeitgeist, the kind that attracts attention, burnishes brands and bestows Michelin stars. Producers, importers, restaurants and wine bars all want the attention of these industry influencers.

Systembolaget In order to understand what motivates the decisions of Swedish sommeliers, it helps to unravel the context in which they operate. Sweden’s government oversees the retail alcohol monopoly known as Systembolaget, or “the System Company”. Founded in 1955 to address the country’s chronic issues with excessive alcohol consumption, its many mandates include regulating alcoholic beverage points of sale, limiting store hours, pricing transparency, minimal mark-up, alcohol abuse education and outlawing alcohol sales to anyone under 20 years of age. Systembolaget operates 440 stores, with an additional 500 representatives offering a broad range of alcoholic products from nearly 3,000 producers. According to the Swedish Council for Information on Alcohol and Other Drugs (CAN), the monopoly enjoyed 63 percent market share in 2016. “People who work for Systembolaget are

highly educated, very good at their work and “The importers have all the contacts and very knowledgable. People trust them,” says can arrange winemaker dinners, tastings and Swedish author, journalist and sommelier happenings together with a certain restaurant Marie Oskarsson. “Systembolaget also helped and invite sommeliers,” says Helena Wolff of in pushing Sweden away from a vodka drinking Gothia Towers in Gothenberg. “The best way country, and towards more interesting, to make contact for the producer is to travel to sophisticated wine. Swedes are early adapters your importer, visit restaurants and bars, and and open to new things. They travel a lot participate in trade fairs or tastings.” and see a lot of food and drink trends abroad Sandberg agrees: “Most of the promotion that they want to bring home. and tastings of wine for the Systembolaget reflects this.” sommelier community in Sweden Yet despite its popularity, is done — and done very well — by some argue that the system offers the importers, so I think the first quantity and value at the expense step is always to make sure that of quality. “Systembolaget is an the producer is represented by a entity that does not promote solid importer that has a strong gastronomy or wine culture,” says network for trade.” Sanz Ramiro, head sommelier at Moreover, some restaurants PM & Vänner in Växjö, Sweden. require a listing fee. “Listing fees “Its function is purely commercial are rare but do happen for the and disconnects itself from the “We all need to pay major restaurant groups,” says passion behind our trade. Yes, more attention what Sandberg. “For most restaurants we find ourselves promoting we eat and drink and wine bars, the best way is wine very differently from and I like to think of to approach the sommelier/wine Systembolaget, from the angle myself helping to director, present the wine through of passion, love and intellectual create awareness.” tastings and, if possible, do a popengagement, trying to show up or some kind of theme evening Rubén Sanz our audience that wine is more or similar. And to be brutally Ramiro, than a mass market commercial honest, somms tend to look at sommelier and winner of the beverage.” other somms... So if you get your Decanter World “There’s a big difference wine into the right place and get Wine Award between what Systembolaget the buzz going, you’re done.” sells and what we sell,” says Jonas Sommeliers appreciate that Sandberg, who operates Stockholm’s Folii wine rare, unique and cutting-edge wines prove bar with fellow somm Béatrice Becher. “Its role compelling antidotes to “Systembolaget palate” is to provide, not educate. Our role, apart from — the inexpensive, sweeter, high- alcohol wines running a business, is to educate, to open eyes. prevalent in retail outlets. “It has been a big People walk into our wine bar to find the best change; [it’s] only in the past couple of years, wines in every category and every price range.” especially in Stockholm, that the restaurant scene is so different from the Systembolaget,” says Robert Andersson of Stockholm’s Pompette Importers Imports. “We have great selection for the restaurants and because of the ‘boring‘ wines Due to EU regulations, restaurants and that you find at the monopoly, more guests will wine bars source their wine, beer and spirits dine out to find these unique producers, style of from importers, not Systembolaget. Producers wines and so on. I think a lot more guests are interested in cracking the Swedish market rely going to restaurants because of that.” upon these 200-plus importers.

Cost of doing business However, the cost of running a restaurant or a wine bar runs high in Sweden. In addition to a 25 percent value added tax (VAT) on most goods and services, the government levies further excise duties for beer, wine and spirits, based upon alcohol content. “Labour is very expensive, so restaurants can rarely afford just a sommelier,” says Sandberg, “although I have been fortunate to work at two restaurants where I was just a somm.” The financial aspect is a tricky one and something somms aren’t taught. To create a great wine bar or restaurant is one thing, but to make it successful is another. It’s learning to balance how to price wine in a restaurant.”

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For many restaurants, collaboration with La Paulée curating food and wine de New York organiser Daniel pairings proves a lucrative Johnnes. “Sweden is very and popular solution. “Putting nuts and bolts. Our values together wine pairings is are ‘you work hard, you pay very strong in Sweden,” says your dues’,” says Sandberg. 2016 Lily Bollinger winner “Having said that, I love to Emma Ziemann, the ebullient Tina Johansson, winner, Lily see friends of mine become sommelier responsible for Bollinger Award for Best rock stars, because they can Gothenburg’s Michelin- Female Sommelier in Sweden get funding for projects. But starred Thörnströms Kök wine then that means they leave the programme. “Some argue that floor. While I’m supportive of packages kill the somm’s job. those other projects, you don’t But the biggest job today is want to create an environment about getting your guests to where rock stars leave the feel comfortable. That affects floor.” the wine list. We don’t sell so Why does “Brand Nordic” many bottles any more — people Jonas Sandberg, Folii wine bar excel globally? “It’s a good just go for the pairings.” She question,” says Andersson. adds that the Coravin system “First, I think we have some is becoming a big factor. “In good sommelier schools where Sweden, it’s hard to get vintages. you learn all the basics that you So we mix and match, working should know. Then, too, I think within a budget. You need to with Jonas Röjerman winning make connections, develop best sommelier in Europe deals, be part of the community. many years ago, and then Swedish sommeliers are quite Robert Andersson, Pompette Andreas Larsson in 2007, we competitive around allocations. Imports younger sommeliers saw that But we have a very strong it’s possible, so we’ve pushed sommelier society here.” each other to become better. I Swedish somms must also also believe that Sweden is a juggle several roles to justify non-wine producing country, their salaries. Helena Wolff, so we can taste a big diversity the beverage director for of wines and beverages from Gothia Towers’ six restaurants, all over the world.” conducts ongoing training Emma Ziemann, Lily Bollinger “I think that Sweden has with staff, oversees an adjacent winner 2016 great sommeliers in general banquet facility and theatre, because we are not afraid to try selects the hotel’s 1,200 minibar wines and still new things,” says Tina Johansson. “Since our works at least one shift each week. wine history is not that long, we are not bound to specific styles of wine by tradition. This has encouraged a curiosity for wines from all over Brand Nordic the world. However, I believe that education is really important, whether you’re studying in a This pragmatic approach runs counter programme or by yourself.” to the “rock star” image sommeliers enjoy Rubén Sanz Ramiro sums it up: “Perhaps elsewhere, particularly in the US. “I never most importantly is the emotion and understand this ‘rock star’ image,” says Robert motivation of sharing our passion for wine and Andersson. “Sommelier is a service profession gastronomy with our guests. It’s magnificent and I am not a big fan of sommeliers who take to be able to connect to so many people every themselves too seriously. The only rock stars day, and be able to engage them through should be the winemakers.” food and wine. I believe it is also socially “We don’t really look for rock stars,” says important. We all need to pay more attention Jonas Sandberg. “Maybe we should.” In what we eat and drink and I like to think of addition to running Folii, Sandberg organises myself helping to create awareness.” W Stockholm’s La Paulée Nordic 2018, a PHOTO: CHRISTIAN GUSTAVSSON

Most high-profile venues employ a stable of steady importers, eager to supply their empire of eateries. Gothia Towers beverage director Helena Wolff oversees six restaurants, including Michelin-starred Upper House. “We work with 20 different importers,” she says. “I bring the importers to the hotel for tastings to see what’s available for the whole house, then use the portfolio throughout the whole house. One main importer delivers (cheaper) bulk house wine for that — they are also our beer importer.” She adds they also work with four main importers. “The rest are pretty small — we use them when we need ‘storytelling wine’, for example, like a Frappato from Sicily, and I’ll buy 12 or 24 bottles.” Others, like Gothenburg’s Michelin-starred Koka assume the role of importer. Wine director Cathrine Suzeau says: “Björn Persson (owner of Koka , Björn’s Bar, Familjen and Spisa Matbar) always wanted to import but the rules in Sweden are quite strict regarding location, taxes, finances. We wanted good wines no one could get anywhere else to sell at a good price. We contracted with someone who could store and deliver the wines.” She says they went to Millésime Sud France wine fair and “took the head somms from the other restaurants with us. We knew we wanted organic, biodynamic wines because Koka is certified sustainable. So that’s how it started. Even before we started Björn’s Bar, normally people don’t expect to find the wines they find in Systembolaget. In Koka, we sell winepairing menus offering three-, five- and sevencourse wine pairings options; 90 percent take wine pairings. They want us to recommend.”

R E G I O N A L A N A LY S I S O TA G O

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THE HURDLES OF CENTRAL OTAGO PHOTOS: JANYNE FLETCHER

It’s one of New Zealand’s most sought-after regions, finds Jeni Port. But that’s the very thing that makes growing vines there a problem.

Coal Pit

n winter, snow beckons. In summer, it’s trekking – ‘tramping’, in the local vernacular – with basic survivalist fare comprising dried fruits and nuts, or ‘tramper’s mix’. Occasionally, there is a bungy jump off a high bridge into a river not much bigger than a puddle. Year round, Central Otago, the world’s southern-most commercial wine region in New Zealand’s South Island hums to the sound of tourists – even if it’s a place that’s far from central. And at the end of a day’s ski-ing and the tramping, it’s wine they want. Mostly Pinot Noir, because that’s what’s principally grown in Central. That and Chardonnay, which does very nicely, too. Almost three million tourists arrived

CENTRAL OTAGO BY THE NUMBERS Wineries: 137 Tonnes produced: 8,324 tonnes (NZ’s fifth biggest) Hectares planted: 1,921 ha Pinot Noir 1,500 ha Chardonnay 55 ha Sauvignon Blanc 42 ha White aromatics 300 ha The average price for Pinot Noir grapes in 2017 vintage was NZ$3,985 per tonne, NZ$500 higher than the 2016 industry average price (via www.mpi.govt.nz)

Northburn

in 2016, a figure expected to rise to five million by 2020. Along with their thirst, visitors are bringing money – around NZ$190m ($139m) annually – and it is contributing to a change in the region’s underlying wine culture, emboldening producers to think about fully embracing winery tourism and expanding vineyard plantings and infrastructure. But there’s a catch. This is one of the most expensive places in the Southern Hemisphere in which to make wine and there are numerous hurdles to overcome.

An expensive place Number 180 on State Highway 8B in Cromwell is a handy piece of real estate at a rare crossover point spanning Central’s Lake Dunstan. It’s at the entry way to the vineyards of the east (Lowburn) and west (Bendigo), north (Wanaka) and south (Bannockburn). In April 2017, Andy and Misha Wilkinson opened their cellar door at No. 180, a cheery place in neutral tones with a nod to French wine bar chic. The couple, with a background in marketing, were initially reticent to get into bricks and mortar. “We weren’t thinking of a tasting room,” says Misha. The couple already had a foothold in Asia, which was proving to be a strong market for their 11,000 case brand, 7000 cases of which are Pinot Noir. “In Asia, we had a place where others weren’t,” she adds. However, they relented and just four months after opening teamed up with three neighbouring wine producers to launch a

walking trail. The impetus? The increasing number of tasting rooms opening in and around Cromwell’s town centre, and the rise in tourism. The latter has driven the construction of trekking and cycling paths across the mountainous region, along with upmarket accommodation. National tourism statistics underline the reasons why: 24% of international visitors to New Zealand visit a winery, while 42% of visitors who cycle also visit a winery. Central Otago ski fields have limited accommodation, forcing the majority of skiers to return to the welcoming arms of nearby towns – and wineries – each afternoon. So, it seems the region is growing in almost every regard except vineyard development. “Since 2008, it’s been mostly static,” suggests Rudi Bauer, long-time owner and winemaker at Quartz Reef. A closer look at the economics of buying into Central Otago, despite its luxury image and a growing reputation for world-class Pinot Noir and Chardonnay, tends to cool the heels of many investors. The exceptions are international companies like the LMVH-owned Cloudy Bay winery, which bought Northburn Station in 2014, and Constellation Brands, which snapped up 21 ha of Pinot Noir vineyards in 2016. Both companies entered the region with the production of premium Pinot Noir in mind. Woolworths, Australia’s biggest supermarket chain, sources Central Pinot Noir for its South Island range, but has not committed to buying land. At $NZ3,500 ($2,585) to $5,000 a tonne, the price of Pinot Noir is high. So too is the price of undeveloped vineyard land with access to water, where prices range between NZ$55,000 to NZ$140,000 per hectare. Then there’s the cost of protecting vineyards against spring frosts. Frost fans run to around NZ$60,000 each. Bird netting is highly recommended, too, as in the past some producers have experienced losses of up to 50% from bird damage. The region, in

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the rain shadow of the Southern Alps, makes irrigation essential, adding a few more zeros to vineyard starting-up costs. Prophet’s Rock Quartz Reef Earthquakes are another real concern. Dr Stephanie with vineyards and cherry orchards in the was important he have the same opportunity to Lambert is chief winemaker at Amisfield Wines Cromwell sub-region, there is little suitable land make the wine the same way,” explains Pujol. in Cromwell. In mid- 2017 she was in her office left in Bannockburn, and it’s not much different “I was driving it because I wanted to have an when an earthquake announced itself loudly in Wanaka, the smallest sub-region. “There understanding.” with successive massive jolts, forcing her to could still be land in Alexandra,” suggests Overall, Burgundy and Central Otago take cover under a desk. Rudi Bauer referring to the most southerly submake for a surprisingly snug fit. Both regions Amisfield sits at the epicentre of the South region, home to actor Sam Neill’s Two Paddocks are dominated by small makers, organic/ Island’s major fault line, the Alpine Fault. wine brand. “But we’re running out of land very biodynamic viticulture is gaining ground (it’s Scientists suggest the Otago region is 40-plus quickly.” estimated to be as high as 23% in Central) but, years overdue for a big quake of magnitude A new wine book, New Zealand Wine: The above all, growing grapes in such cool, wet eight or more. Dr Lambert has taken precautions Land, The Vines, The People, by New Zealand regions is neither for the faint of heart or those in the winery – barrel stacks are lower than in geographer, Professor Warren Moran, offers a lacking financial clout. Indeed, within New many regions and tied down “Californian-style”, different interpretation. Maybe people haven’t Zealand, Central Otago is the most expensive while tanks are bolted securely into concrete been looking far or high enough he suggests. area in which to produce wine. floors – but she remains philosophical. The A digital terrain model developed for his book With mountainous ranges, ridges and steep isolation that comes from living and making has revealed sizeable areas of Central Otago slopes to navigate, vineyard sizes are typically wine in such a mountainous, if occasionally land suitable for viticulture in the Manuherikia smaller than in other regions, with 73% of earthquake-prone part of the country she says, catchment, in the region’s south-east. Professor vineyards being less than 10 ha. Central also is, in part, what makes it so unique. Moran is confident that higher elevations can has the lowest yields and the lowest wine also be explored as climate change impacts on extraction rates (litres per tonne), while costs Premium production the region, and new Pinot Noir clones for ultraper bottle are estimated to be twice that of cool climates are developed. “These higher wines produced in regions boasting higher Located on the 45th Parallel South, Central slopes are likely to become more important in critical mass such as Marlborough, Hawke’s Otago takes modern viticulture about as the future,” he writes. Bay and Gisborne. Still, the wealthier investors far south and as cold as it can go. It’s home Pinot Noir drives the wine world’s interest come. In November, the US-based Foley Family to an adventurous bunch of winegrowers in Central Otago. Every producer looks to the Wines, controlled by businessman, Bill Foley, and makers and a growing reputation grape first before Chardonnay and then, maybe, paid NZ$55m for one of Central’s biggest wine for producing Chardonnays and Pinots of Riesling, Pinot Gris and Sauvignon Blanc. producers, Mt. Difficulty, with 40 ha planted unusual depth and power, with prices to Pinot attracts high-profile investors, excites across six sites. Foley already owns wine brands match. It’s also the only place in the world drinkers, fires the passions of winemakers, based in Marlborough (Grove Mill, Te Kairanga) where the famed wine producers of Burgundy propels prices and makes friends with some and Martinborough (Vavasour). will engage in a formal winemaker exchange of the world’s greatest Pinot Noir drinkers, While vineyard development costs are program. Each year, Burgundy hosts up to people such as Georg Riedel, the famous putting a brake on general vineyard investment, four Central vintners during harvest, while Austrian glassmaker. Riedel was so taken by there is another deterrent: urbanisation. The Central returns the favour during its vintage. a Pinot workshop held in Queenstown some encroachment of housing in the region worries The brainchild of Nick Mills at Rippon, the years back that he encouraged his company to winemakers like Blair Walter at Felton Road cultural exchange celebrated its 10-year invest, reportedly, NZ$375,000, into developing whose Cornish Point vineyard backs directly anniversary in 2017. a Central Otago Pinot Noir glass. It’s been hailed on to a major housing development. So far the A more personal exchange of ideas has as the company’s first regional and varietal company’s relationship with Cornish Point been initiated between Paul Pujol of Prophet’s specific wine glass. home owners is good, he says, in part because Rock winery and Francois Millet, winemaker at That’s the effect Central Otago Pinot Noir can the vineyard is biodynamic and doesn’t employ Domaine Comte Georges de Vogüé. Pujol worked have. harmful sprays, the usual recipe for friction. vintage at De Vogüé in 2009 and the two struck Still, it’s a rare group of wine producers Cromwell-based producer, Wooing Tree, up a friendship, resulting in a collaborative who can not only survive but thrive in such on the other hand, is one of a rare wine breed Central Otago-based Pinot Noir project, Cuvée an uncompromising, financially-draining openly embraced housing, and has plans to Aux Antipodes, using Pujol’s fruit and Millet’s environment. The question may one day come open a vineyard village with 200 apartments winemaking. The Otagan maker even bought to be asked, perhaps sooner rather than later: and homes on its 26 ha site. The proposal means the same equipment used by Millet in Burgundy could Central Otago become a victim of its own three-quarters of its vines will be removed. in order for the winemaker to feel comfortable in success? W Land is getting tight. While houses compete his new home-away-from-home environment. “It

TECHNOLOGY C AT E N A

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RAISING THE GAME Does wine really change when grapes grow at high altitudes? The Catena Institute of Wine in Argentina may have some answers, as Jürgen Mathäß discovers.

ompared with most vineyards in Europe, a vineyard at 1,500m altitude is colder, while air composition can be different and sunlight intensity is higher, especially in semi-arid climates. But so far, European viticulturists have tended to discard the influence of altitude on aromas and flavours, believing than any effects are simply due to the cold. A conversation with Dr Laura Catena of Bodega Catena Zapata in Mendoza, Argentina, reveals a different story. From a European point of view, South America is far away. This might be the reason why so many Europeans — and others — are unaware of the scientific research done by Catena Institute of Wine. The Institute, founded in 1995 and financed 50 percent each by the Argentine Government and Bodega Catena, has done impressive research on the influence of altitude, solar ultraviolet-B light (UV-B) and other factors on grape berry components. “High altitude vineyards’ environmental conditions affect the oenological quality of berries in a significant way,” says Dr Catena. “We found a lot of influences besides cooler temperatures.” She points to a long list of publications by the Institute, where 10 scientists work. Dr Catena, the managing director of Catena Zapata, is both a medical doctor and a biologist.

Research conclusions The most important aspect affecting the grapes, besides the lower temperature, seems to be the increasing UV-B, the most energetic fraction from sunlight. Since UV-B light is very strong at high altitude, it can damage living tissue. The plant defends itself by producing compounds that protect it, but which are also beneficial for grape quality, such as amino acids, proteins and lipids. But the influence is not linear. While the increase in UV-B from 500m to 1,000m is quite modest, the further increase

Dr Laura Catena of Bodega Catena Zapata, Argentina

at 1,500m is dramatic. Most Argentine vineyards grow at between 600 and 1,500m. Federico Berli from the Catena Institute and his team have been running experiments since 2006 on the effect of UV-B on grapevines. The experiments showed that UV-B resulted in fewer leaves per shoot, shorter shoots, less leaf area, less chlorophyll and less photosynthesis. On the other hand there were thicker leaves, more phenolic compounds and an increase in abscisic acid (ABA, the stress hormone), terpenes and antioxidant capacity. The leaves also showed higher levels of pigments that protect against light damage. Of course, all these changes resulted in different grapes. The fruit had higher levels of anthocyanins, as well as a higher phenolic content in the berries. Overall berry growth and yield, however, were reduced. Mendoza’s wine-growing regions planted above 1,000m tend to develop higher-quality berries because of the greater accumulation of polyphenols and aromatic compounds in the berry. These higher polyphenols and aromatic components translates into a wine with a darker colour, more complex flavours and longer ageing potential. “Of course we are happy about the fact that our wines from high altitude, like the Adrianna vineyard

at 1,450m, have better phenolic structure,” says Dr Catena. Viticulturists need to work differently in high UV-B environments, as the UV-B causes stress. Using water deficits to control berry size and ripeness may have some effect, but less than it might in a lower UV-B environment. There is a general risk: evapotranspiration — whereby water not only evaporates from the soils but also from plants — demand can be so high that even if there is water in the soil, the vines are not able to keep up with the evapotranspiration rate. This can lead to unripe tannins, which the French call “blockage”. High altitude brings another risk: fresh and intense aromas combined with the risk of unripe tannins can lead winemakers to harvest late, because there is less risk of losing fresh aromas. This can produce wines with very high alcohol contents. While sensitivity to this has risen in Argentina during the past five years, there are still plenty of 15 per cent ABV and more wine on the market, surprisingly often coming from high-altitude vineyards.

More to learn The Catena Institute’s spectrum of scientific work is wider than research on UV-B influence alone. Its researchers have published important papers on the Malbec grape variety, looking at anthocyanin profiles in selected Malbec, and on the phenolic composition of Malbec. Other research had important results. In cooperation with University of California, Davis, wines from five Argentine clones were compared with reds from five French clones. The study’s message, presented in 2015, was that Argentina has more desirable Malbec selections than France does. Since then, quality-oriented Argentine winemakers ceased importing French Malbec clones and have chosen to use their own. W

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R E G I O N A L A N A LY S I S ROMANIA

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ROMANIA’S TURNING POINT EU funding has encouraged dozens of wineries to spring up in a short time. What are their chances of success? Felicity Carter goes to find out.

Avincis winery in Drăgăşan. The building is a neo-Romanian villa, restored to its original family, post-communism.

hen advertising rep Philip Cox arrived in Romania, the beer appalled him. But communism had just collapsed, so the young Brit was able to start his own beer company. Working with alcohol led him to the local wines, some of which he sold to German giant Reh Kendermann, for whom he later worked. In 1999, in partnership with his wife Elvira and friends, Gheorghe and Lia Lova and Maria and Ioan Georgiu, he bought a 600 ha vineyard. Feeling optimistic, the group acquired Cramele Recaș in 2001, a 4m-litre capacity former state winery in the Transylvania/Banat region. It was run down, but Cox believed strongly enough in Romanian wine to give it a go. This year, Recaș will produce 30m litres. The grapes come from the 1,150 ha of vineyards sprawled outside the winery, plus the other 25 ha further north. In 2017, exports grew by 8m bottles, or 42 percent and turnover rose to €42m ($52.5m). This isn’t a typical story from Romania, a country with the EU’s highest rate of relative poverty. And there are signs that not all is well in the region, such as the abandoned vineyards to be seen here and there. But Cox has never wavered in his belief in Romania’s wines — and he thinks that Recaș’ success shows the whole wine industry is at a tipping point.

A will-do company The Recaș boardroom shelves are covered with wine, each bottle made for a specific market. “We have guys in the vineyards who have worked there for 40 years,” says Cox. But he doesn’t think customers want to know whose great-uncle made their wine. “The wine should speak for itself.” His “I Am” brand “doesn’t sell because it’s Romanian but because it’s a pretty label that says it’s dry or sweet. We have one for Germans that doesn’t really have a brand name, but the label tells you it’s good with fish.” And then there’s Britain’s top-selling Pinot Grigio, the Henkell group’s I Heart brand. Cox says he’s inspired by Australia’s John Casella, creator of the Yellow Tail brand; coincidentally, his chief winemaker, Hartley Smithers, also works for Casellas. While Cox is passionate about Romania’s potential, he’s also realistic about the legacy of its communist past and post-communist “privatisation cock-up”. Romania’s vineyards aren’t producing enough, he says, so grapes are too expensive. “In 1990, Romania had 300,000 ha of vineyards. It’s down to 180,000 ha right now, officially, but we reckon that only about 70,000 to 80,000 ha are in the hands of professional wineries.”

The Romanians’ patriotic consumption of 27L per person creates another imbalance, because it means local companies can be profitable without having to raise quality. Four companies making wines for under €3.00 a bottle have 85 percent of the business, while the EU-subsidised wineries — as many as 100, with an estimated 30,000 ha of vineyards between them — all jostle to be in the top 15 percent. Wineries seeking those subsidies haven’t been helped by inconsistent government funding rules. Still, Cox is enthusiastic about the potential for growth, saying Recaș sells about 9m bottles a year on the local market, and another 300,000 10L bag-in-boxes. Between 2005 and 2015, Recaș opened 130 franchised shops, which sell 7m litres of wine annually. Wine tourism also brings in 30,000 visitors a year. Cox strides past the laboratory and down a steel staircase. At the bottom is a storage room with hundreds of different brands on its shelves. Cox says he makes wine to order and exports are booming. There’s been 120 percent growth in shipments to Germany, 60 percent to Holland and 20 percent to England. “I only started doing Germany because of the Brexit thing. Now they’re our favourite customers.” Recaș will do anything; one wine has an ultraviolet label, another, a holographic heart, for the wedding market. There’s even church wine. “We’ve got the bishops sewn up,” says Cox, adding they’re tough to deal with. “They each want their own label — they’re worse than supermarket buyers.” Ultimately, though, it’s all about the wine. “Romania can do Pinot Noir very well,” says Cox. “That’s hard to do for a decent price, so that’s a competitive advantage. Our Sauvignon Blanc is cheaper than New Zealand and better than Languedoc.” And, of course, there’s Pinot Grigio. Cox also has big ambitions for his premium wine business. “In 2016 we sold 800,000 bottles at over €7.00 — and some up to €30.00 on the shelf.” The only barrier to growth is lack of labour. “Our region here is in full employment and wages went up 20 percent last year.” Recaș

minimal intervention winemaking, however, the wines are now being exported to the UK, Germany and Belgium.

Red territory Horses and carts still mingle with cars on the road to Dealu Mare in the north. This region, in the hills of the sub-Carpathians between the Teleajen River and the Buzau River, enjoys limited rain and extended sunny periods, making it ideal for red wines. The Serve winery was founded here in 1994 by Count Guy Tyrel de Poix, a Frenchman who headed for Romania after reading about it in Hugh Johnson’s World Atlas of Wine. De Poix fell in love both with the land and with Mihaela Tyrel de Poix, and the couple launched the winery. The initials S.E.R.V.E. stand for “The Euro-Romanian Exceptional Wines Company”, which for many years was Romania’s only private wine company. Serve’s range includes an elegant Chardonnay, excellent Pinot Noir and a charming Pinot Noir rosé. De Poix, who died in 2011, always said he couldn’t live in a country without rosé and was the first to make a Romanian version. Now Serve is the market leader for rosé. Dealu Mare has seduced another foreigner as well, English flying winemaker Stephen Donnelly. “When I first came to Romania in 1995, it was like the Wild West. They had no hoses, no yeasts, no equipment,” he says. The land, he adds, is mostly “brilliant” though too fertile in parts, but with excellent drainage and limestone pockets. “The Dacians were vinifying in the area,” he says. “There is an archaeological site a stone’s throw from here where they found amphora.” Donnelly says that two engineers founded that Budureasca as a hobby in 2006. Now it produces 2.5m litres of mostly red wine, including Pinot Noir and Fetească Negara. The local market takes 90 percent of the production, but exports are growing, including to China. Not everything in Romania is bright with optimism. There is evidence of poverty everywhere and, if Cox is right, too little efficiency and too many new wineries. But it’s striking that the quality producers — dentist, lawyers, advertising rep — are following the same path as the lawyers and doctors who founded Australia’s now mighty industry. There’s a long way to go — but Romania’s on its way. W

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Stoica’s great-grandmother. Like most private property, it was seized by the communists, but Ms Stoica’s legal knowledge helped her win it back in 2007. The wines, poured by consulting winemaker Ghislain Moritz from Alsace and agronomist Stefano Saderi from Italy show great promise, especially Baby steps the white Cramposie, which Philip Cox, owner, Cramele tastes like a weightier In the region of Buziaş, Recaș version of Grüner Veltliner, the fading sun casts a golden and the blend of the spicy local grape Negru glow over Crama Aramic, founded in 2009 and de Drăgăşani with Merlot. a beneficiary of EU funds. An extension is half One challenge, says Stoica, is the lack built, hoses and equipment neatly coiled on the of a national image because of wineries’ concrete. unwillingness to cooperate with each other, so “We did the first plantings in 2010,” says she works at a regional level with like-minded Cosmin Craciunescu, with the first real harvest producers to host journalists, create events and in 2015. The wines are laid out in the new organise tastings. Her only regret is that she tasting room; the smoky-incense Pinot Noir was too conservative when they started, and and the Sauvignon Blanc 2016 show promise. didn’t build a bigger tasting room. Now it’s a Cosmin’s father, Adam, caught the wine bug struggle to accommodate all the people who in 2004 while visiting Plovdiv in Bulgaria on want to come. behalf of the Ministry of Agriculture, where he One of the wineries that Stoica cooperates heard viticulturists speak. “When he bought with is Prince Stirbey, which, at the turn of this vineyard, people were sceptical,” says the 20th century, produced Romania’s most Cosmin. “But we could see that there were other fashionable wines. Founded in 1873 and vineyards in Romania that looked decent.” overlooking the Olt River, it was owned by Funding was no problem, thanks to an the aristocratic Stirbey family, whose marble ambitious EU programme to replant old bath, chiselled with royal crests, now sits vineyard land. He thinks there have been people incongruously on the front lawn. But it, too, who have started wineries just for the subsidies, was seized by the communists — and its owners but his family are committed — Cosmin has even persecuted. given up his day job as a dentist. It has been back in the hands of Baroness He’s not the only one who’s gone all in. Ileana Kripp-Costinescu and her husband Baron Drăgăşani, sandwiched between the Danube Jakob Kripp of Austria, also a lawyer and wine and the southern Carpathians, takes its name lover, since 1999. It produced its first wine in from an ancient winemaking village. “Drăgăşani 2001. Everything is single vineyard, because wines were served at royal dinners,” explains the baron believes this is the best way to Cristiana Stoica, lawyer and owner of Avincis discover the local grape varieties. “If we travel winery. to Piedmont, we don’t look for Merlot — we want Stoica is so passionate about Romania’s Nebbiolo,” he says. “We have clay and the soil is potential that she and her husband have put deep and cool.” their life savings into creating this hilltop The Fetească Regală, a grape from winery. “We have lost our traditions of Transylvania, offers flavours of mandarin and winemaking,” she says. “We’ve had to talk to pear, while the aromatic and elegant grape people from the past, who could remember Novac is intriguing. When Kripp started “there what was traditionally planted here.” was no market for these kinds of wine, especially The property consists of a small winery and at the price we needed, of about €17.00 to smart tasting area built into a hill, with luxury €18.00 on the shelf in Germany”. Thanks to units on top. A short walk away is a white the contemporary interest in local varieties and neo-Romanian villa, which once belonged to

is not far from Timișoara city, whose highways groan from all the long haul trucks carrying goods to the EU. You can taste the growth in the air. But perhaps it’s easy to feel that, standing in Romania’s most successful winery. What’s the rest of the industry like?

PHOTO: FLORE DERONZIER

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WINE STYLES CRÉMANT DE BOURGOGNE

THE THIRD BURGUNDY Many consumers don’t even realise that Burgundy makes a sparkling wine. As Roger Morris reports, producers of Crémant de Bourgogne are fighting perceptions on many fronts. option, to the spectacular growth of the fruitier, nonChampagne-like flavours of Prosecco. Additionally, the number of places that make sparkling wine has also diversified, with England suddenly becoming a serious producer and with The headquarters of Albert Bichot New World bubbly production growing by about 30 per cent over the past half-a-dozen henever sparkling wine is discussed, years. As a result, there are multiple choices of Burgundy wants to be included in the affordable sparklers for every budget. conversation. But what its role at the While Crémant de Bourgogne is not a table should be is not so easily determined. newcomer to world markets, how much of The price of its Crémant de Bourgogne, as it is made may surprise some observers. Of its sparkling wine is called, can range from every dozen wines produced in Burgundy, bargain-basement cheap to penthouse rare. So about seven would be white, four would be where does it fit? red and one would be Crémant de Bourgogne, which employs the traditional method of inThe Crémant difference bottle secondary fermentation. The official production breakdown, according to the At its best, Crémant is a blend of only Burgundy Wine Board (BIVB), is 62 percent Chardonnay and Pinot Noir grapes grown white, 29 percent red, eight percent sparkling on soils similar to those of Champagne, its and one percent rosé. benchmark neighbour to the north. But at its “Crémant de Bourgogne represents 18m lower price levels, those two noble varieties bottles sold in the world,” says Pierre du are joined by lesser grapes such as Gamay and Couëdic, director general of the Union des Aligoté. While Crémant is too proud to compare Producteurs Elaborateurs de Crémant de itself to Champagne, many consumers with Bourgogne (UPECB), Crémant’s governing discerning palates have confused its best with association. He explains that it’s produced on sparklers from the Valley of the Marne. But 2,500 ha by more than 1,000 wine growers and for now, Crémant — the third Burgundy — is 118 “elaborateurs” or merchant-producers. fighting for success at all levels. Most Burgundy Crémant is made with the In recent years, one of the most competitive same grapes as are Burgundy’s best still wines worldwide wine markets has been the sparkling — and the same as in Champagne — Pinot Noir category with an annual production of about and Chardonnay. 24.1m hl or 3,213.3m bottles. It is predicted But to have continued growth, Crémant de to increase steadily for the foreseeable future. Bourgogne must successfully deal with several Since the turn of the century, part of this growth hurdles. They include being able to source can be attributed to an increasing diversity more grapes in competition with regional of styles now available to drinkers, from the Burgundy table wines, contend with higher rise of rosé bubbly as a socially acceptable

production costs that dictate higher market prices, overcome the twin negative images Millennials hold of all Burgundy as being pricey as well as being their parents’ wine, incountry competition from trendier Crémants from other regions and export competition from new areas where production costs are lower. Yet after a few years of holding steady, Crémant de Bourgogne production grew by two per cent last year, in spite of the fact that there were fewer grapes to be had after several low-production, weather-ravished harvests. One of the larger producers of Crémant is Maison Veuve Ambal, which makes about 7m bottles annually in its 22,000sq ft, highly mechanised facility just outside Beaune. As Ambal’s François Piffaut points out during a facilities tour, Crémant wines must have minimum amounts of Pinot Noir and Chardonnay, but are allowed to use lesser amounts of Gamay, Aligoté, Melon and Sacy, depending on the cuvée. As is done in Champagne, base wines are re-fermented in the bottle and, at major producers, all the steps involving dosage, riddling and disgorging are done mechanically.

Pricing issues Of course, using premium grape varieties such as Pinot Noir and Chardonnay and having bottle fermentation, along with the many steps which that entails, comes at a figurative and literal price — it costs more to make a bottle of Crémant de Bourgogne than it does competitive sparkling wines such as Cava and Prosecco. “One of the things we constantly hear in the marketplace is, ‘We love your wines but not your price’,” says Manon Remy, whose family owns the producer Maison Paul Chollet, which annually makes about 250,000 bottles of Crémant using Pinot Noir and Chardonnay grapes. That perception of priciness is reinforced by the image of Burgundy itself. “People who [might] buy Crémant rather than Champagne because of the lower price tend to think

Burgundy and Beaujolais Crémant has one huge production problem faced by few other sparkling wine producers elsewhere in the world. That is fighting to source grapes that other segments of Burgundy winemaking, especially regional table wines, also want, especially when demand for Burgundy table wines is high and crop levels low. Indeed, sometimes there are fights within corporate wine producers as to which division gets the grapes. “Of the five recent vintages,

Burgundy’s production. 62% white 29% red

1% rosé 8% sparkling

all with small harvests, it was sometimes difficult for the Crémants de Bourgogne, which are based on quality, to have access to enough grapes,” explains de Champs. There has been some relief for those producers who use grapes other than Pinot Noir and Chardonnay since the Beaune establishment has recently embraced Beaujolais as a true part of Burgundy. That has resulted in more Gamay being an approved grape source in regional wine and in Crémant de Bourgogne. “It’s a win-win for growers,” says Jean-Charles Boisset, head of the Boisset Collection. “There is a lot of Beaujolais production going into Bourgogne sparkling wine, which can be up to 15 percent Gamay.” Wasserman wishes that there were a similar acceptance of the white grape, Aligoté, in the production of Éminent and Grand Éminent sparklers. “The exclusion of Aligoté is really tragic,” he says. “There is a huge uptick in the interest of good Aligoté for Burgundy in general. It is one of the few wines that the hipster and younger crowd can afford.” He adds that Aligoté’s “acidity, salinity and energy” make it ideal for making sparkling wine. De Champs is confident that market growth will come as consumers are educated to accept Crémant de Bourgogne as a category, rather than relying on the occasional proprietary brand they might have tried. “We still have a potential of progression with the recognition of the name ‘Crémant’ and discovering its quality and how it is produced,” she says. But in the end, it should be noted that other regions which produce quality, higher-priced sparkling wines, such as Franciacorta and Trentodoc in Italy, have recently tried to chase after Champagne prices with only minimal success. Although gains have been made, the question is still in play: will Burgundy’s wine bubble continue to sparkle? Or will its fizz simply fizzle? W

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their lees during secondary fermentation, while Grand Éminent cuvées must also use no more than three grapes — Pinot Noir, Chardonnay and up to 20 percent Gamay (in the rosé only) — spend three years on their lees and an additional three months in bottle after disgorgement. All Grand Éminent wines must be made Brut (less than 15 grams per litre of sugar) and vintage dating is optional. For example, the producer Louis Bouillot, which is owned by the Boisset family as part of its Boisset Collection of wineries and which produces about 2.8m bottles annually, has already introduced Éminent and Grand Éminent wines under its Perle Noire label. Remy of Paul Chollet says her winery has paid close attention to feedback from the marketplace about refinements consumers want. “Customers told us they want lesssugary wines, so we produce cuvées that are less than six grams per litre,” she says, “which gives a more elegant mouth-feel and finish.” Paul Chollet also produces an Oeil de Perdrix rosé, a revival of a traditional style of lighter table and sparkling wines once popular in eastern France and Switzerland. Producers and distributors have also targeted several foreign markets for expansion and growth. According to Couëdic, about one-third of Crémant production is currently exported, with the US being the largest customer, buying almost 2m bottles annually. Scandinavian countries, especially Sweden, other states of western Europe, Japan and Australia follow in importance. There is the feeling that the US is especially ripe for increased sales, and distributors continue to raise the image of Crémant as an option in consumers’ minds alongside Champagne, Prosecco and Cava. Then, of course, there is the huge Chinese market, where there have been minimal sales to date.

SOURCE: BIVB

of the region as not affordable,” says Paul Wasserman of Becky Wasserman & Co, a Beaune-based exporter specialising in small domaines, including Parigot. “Bourgogne is not necessarily a selling point to that crowd.” Even within France, Wasserman says the perception of Burgundy as being snobbish helps competitive Crémants from other regions, such as Jura and the Loire, which are considered trendier. Increasingly, however, producers and négociants are looking to capitalise on the flip side of Burgundy’s luxury image by using it as a guarantee of quality and reliability for consumers less concerned with what is trendy. While there will continue to be producers willing to compete at the lower end of the bubbly market where margins are paper-thin, some of the same producers are also spending more time exploring what is a tempting price void just beneath the $30 and lower limits of Champagne. “There is more of a temptation from buyers to compare Crémant de Bourgogne to Champagne than to other Crémants because of their similar varieties and Burgundy’s proximity to Champagne, the limestone terroir and similar northern climates,” Wasserman points out. Jeanne-Marie de Champs, owner of Domaines et Saveurs Collection, which also specialises in small estates including Paul Chollet and Louis Picamelot, says: “Twenty years ago, social [events] such as weddings served only Champagne. Today, we sell lots of Crémant de Bourgogne for those events.” Several exporters also report that, particularly in the US, crémant is being used as an upscale wine-by-the-glass pour in many bars and restaurants, one of superior quality yet less pricey than Champagne. Perhaps to add to the perception that Crémant de Bourgogne is the closest sparkling wine in taste, style and winemaking process to Champagne — and, indeed, the only Champagne substitute made in France that is comparable the its higher-priced fizz — producers decided in 2016 to officially add two higher-quality levels. This is something that individual producers have already been doing in creating their own special style and terroir-based cuvées. Those new designations, now just coming to market, are “Éminent” and “Grand Éminent”. Éminent wines must spend two years on

THE FORGOTTEN VALLEY The Itata region of Chile, south of Santiago, is the home to some of the country’s oldest vines. Alistair Cooper MW paid a visit.

he undulating hills are carpeted in gnarled bush vines, surrounded by swathes of pine trees that stretch as far as the eye can see and there is an Alpine-esque feel in the air. The Itata Valley lies about 500km south of Chile’s capital, Santiago, in the region of Bío Bío. Here, quartz-laden soils are home to a plethora of old vines, a far cry from the extensive manicured vineyards found in the central vineyards around Santiago. The vines are wizened, suggesting great age. “But it’s difficult to say, as there are no official planting records,” says winemaker Juan Ledesma of Terroir Sonoro. “But I would guess around

Map of Chile

ILLUSTRATION: DIKOBRAZIK - FOTOLIA.COM

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R E G I O N A L A N A LY S I S CHILE

200 years old.” Chile’s old vine heritage is remarkable, yet for years it was neglected and disregarded by the domestic wine industry. Vines were first planted in Itata in 1550 by Spanish settlers. These were largely País (Listán Prieto) and Moscatel, brought from the Canary Islands via Peru. The unirrigated vines thrived in the temperate, maritime-influenced hills surrounding the port of Concepción. The Chilean War of Independence (1810 to 1821) ravaged the region and led to the fragmentation of vineyards, which remains a key feature of modern-day Itata. Production increased during the 19th century and by 1870 the area relating to present-day Itata and Bío Bío was responsible for 80 percent of total national production. In 2015 it was responsible for a mere four percent of total production. What led to Itata’s decline in importance — and why is it rebounding now? The arrival of French cultivars around Santiago from 1860 onwards changed the entire industry. Vast vineyards were founded by wealthy, illustrious families such as Undurraga, Cousiño and Errazuriz. Trained and trellised vineyards, along with irrigation systems, became commonplace. Itata’s distance from Santiago, fragmented land ownership and lack of capital wealth became limiting factors on the region, leaving it isolated and largely untouched by the viticultural revolution. Maule to the north marked the boundary between innovation and tradition. The European phylloxera epidemic brought an influx of French and European winemakers that consolidated the Bordeauxinspired wine culture around Santiago. Chile’s export-led boom, sparked during the late 1980s, was based around recognised international varieties: Cabernet Sauvignon, Merlot and Chardonnay. Itata was firmly in the second tier, with an unfashionable varietal mix and lack of modern winemaking technology. The region became synonymous with cheap jug wines, grape prices plummeted and many vines were grubbed up, replaced by pine and eucalyptus trees. Itata was plundered by producers from the north, as a source of cheap but decent fruit to be blended away into bulk

wines. The region’s fragmented grower base was left at the mercy of large purchasers from the central valleys.

Renewed enthusiasm Fortunately for Itata, over the past decade global wine trends have seen considerable stylistic and philosophical changes. This has resulted in a renewed thirst for the fruits of old vines and their associated heritage and patrimony, along with an appreciation for lighter and fresher styles. Fourth-generation winemaker Sebastian de Martino explains: “In 2010 we saw Itata as capable of producing wines that were different from the central regions. The old unirrigated vines, cool coastal climate and immense history really grabbed our attention; the results were wines of great purity and freshness that fit perfectly with our drive towards lighter, more drinkable wines.” It was Cinsault that first attracted de Martino to Itata. The variety was officially introduced to the region in 1940, chosen for being high yielding and to add colour to the thin-skinned País-based wines. Itata is home to 95 percent of Chile’s total plantings of Cinsault, at 600 ha. De Martino first started buying grapes from a handful of growers, before buying a 20 ha estate in 2014. “We firmly believe in Itata and we felt it was important to actively invest in the region.”

ITATA AT A GLANCE It is the only Chilean region not dominated by noble French varieties. The three most widely planted varieties are Moscatel, País and Cinsault, which represents 95 percent of total national Cinsault plantings. It contains the highest proportion of dry-farmed vines (77 percent total regional plantings) and bush vines (67 percent total plantings) in Chile. There are 3,625 official growers; the unofficial estimate is 10,000.

Pruning vines in Itata, one of the oldest regions of Chile

neighbouring Maule. “We have to provide our own labour team when harvesting in Itata,” says Felipe Tosso of Viña Ventisquero. “It’s a very real issue for many in Itata.”

Markets and opportunities the major wineries in the central valleys. Considerable investment in recent years from government bodies such as INDAP, however, has sought to increase collusion among growers. They have formed grape collection centres to bypass brokers and help increase revenues. The aim now is to install winemaking facilities to stimulate and increase production, in a bid to end reliance on grape sales. The region of Bío Bío is the heartland of Chile’s significant commercial forestry industry, home to 980,000 ha of plantations — 37 percent of the national total. Government subsidies introduced in 1974 to promote forestry led to many growers replanting with pine and eucalyptus. Commercial forestry plantations, along with a commercial pulp mill, installed in 2004 by foresty giant Arauco, have caused tension among the wine community. Grower and winemaker Manuel Moraga of Cacique Maravilla believes; “The single biggest threat to Itata is forestry. It is an environmental disaster that is getting worse.” These thoughts are echoed by sommelier and consultant Hector Riquelme. “Forestry plantations are a huge issue, both on a social and environmental level,” he says. “The industry is not sufficiently regulated — the impact of such a monoculture on viticulture is enormous.” Plantations are accused of significant environmental impact, including soil erosion, lowering soil pH and adversely affecting biodiversity. High water consumption and plantation densities facilitate the spread of forest fires: plantations are less humid than native forests, meaning fires spread quicker and are harder to control. In January 2017, Chile experienced its worst forest fires, when more than 500,000 ha of land was destroyed, including 100 ha of vineyards. Sebastian de Martino is, however, stoic. “One of the reasons forestry arrived, whether we like it or not, was to bring prosperity to a really poor region,” he says. “We have to accept that both are part of the landscape, and they must co-exist.” Growers also struggle at harvest times due to a scarcity of labour; given the low grape prices, pickers can make more from fruit harvesting in

Pedro Parra believes the small producers are key for the region’s future. “Itata must change from being a valley of grapes into a valley of wine again,” he says. “It is happening but we need more growers to bottle their own wines.” Others, including de Martino’s winemaker Marcelo Retamal, believe more cooperation is important: “We need to create a category for Itata, to fuel the movment of micro-producers that is beginning to emerge.” Parra points to VIGNO, a voluntary appelation that acts as a shared trademark by 12 producers in Maule, “VIGNO is the single best thing that has happened to Chilean wine. It has created a leap forward in international recognition and helped growers increase returns.” Rogue Vine winemaker Leo Erazo identifies parallels with South Africa’s Swartland: “The Swartland Independent Producers group has been phenomenal for the region. It’s in its early stages but we are working on plans for a similar group in Itata.” Astonishingly, until 2015, neither País nor Cinsault were recognised as noble varieties and thus did not qualify for DO Itata status. De Martino sees this as an important step: “The new DO and the acceptance of País and Cinsault should really help Itata, and improve the region’s visibility.” Chile’s domestic wine consumption is low, at 13.4L per capita. In 2015, more than 70 percent of total production was exported, making export markets extremely important. Erazo confirms that only 10 percent of their wines are sold domestically. Felipe Tosso, however, is impressed with domestic sales: “Our Itata wine has sold incredibly well in Chile as well as Brazil, where it has been extremely popular. We are looking to double our production over the next two vintages.” Itata rightly claims to be the cradle of Chilean viniculture and can be considered the antithesis of the modern-day Chilean wine industry. Recent signs of regeneration are encouraging, yet there are considerable internal challenges to be addressed. As de Martino says: “Perhaps we need more Itata ‘foreigners’ — people from outside the region who see the value of the place and bring the wines into the limelight.” W

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De Martino was followed by Miguel Torres, who bought 230 ha of unplanted land in 2015. “For eight years we have worked on a strategy of sustainability and rescuing heritage varieties,” says Torres’ head winemaker Fernando Almeda. “We want to preserve traditional viticulture and practices. Itata reflects the origins and birthplace of Chilean wine and culture.” While acknowledging the importance of Itata’s history, Torres is looking firmly to the future. Research undertaken by the company suggests that temperatures in Chile’s Central valley could rise by 5°C by 2100. The drought gripping regions further north such as Limarí is only set to intensify, and Itata is well placed to cope with the impending climatic change. Average annual rainfall is 1,000mm, compared with just 400mm in Maipo. “We have to start moving south as an industry,” says Almeda. More than 75 percent of Itata’s 9,000 ha is dry farmed, which for terroir guru Pedro Parra is a key issue. “After many years, I have come to realise that irrigation can truly negate the influence of terroir,” he says. Parra is exuberant about Itata’s potential for producing great wines: “I believe that Itata possesses the best terroir in South America.” Parra is involved in several winemaking projects in the region, Clos des Fous — in conjunction with winemaker François Massoc — and his own label, Parra Family Project. While de Martino were among the first to pioneer the region, in the past five years a plethora of established names has produced wines from Itata, including San Pedro, Montes, Ventisquero, Undurraga, Carmen, Concha y Toro and Morandé. Concurrently a number of small Itata-based producers have slowly been making waves, including Pandolfi Price, Terroir Sonoro, Viña de Neira and Rogue Vine. On the surface the signs are encouraging yet while Itata is in a stronger position than at any time in recent history, it faces considerable issues. Although increased interest in Itata has brought a handful of growers higher revenues, for many the economic reality is bleak. Officially there are 3,625 growers; unofficial estimates are closer to 10,000. Itata’s grape prices are consistently the lowest in Chile — as low as $0.06 per kilo — while very few growers have contracts and are reliant on the spot market, whose prices are set at harvest time. There have long been accusations of collusion and price-fixing from the region’s growers towards

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MARKETING LABELS

THE EYES HAVE IT Neuroscientific research is demonstrating what good designers have always known – the right label can sell the wine. Michele Shah looks at the work of Simonetta Doni.

oni & Associati, based in Florence since 1975, was the one of the first graphic studios in Italy to establish its authority as specialists in designing wine labels. It remains at the forefront of label design — and a neuroscientific study shows why.

Early success Simonetta Doni started her career in editorial art, publishing art catalogues until 1985, when she received a commission to redesign the Ser Lapo label for Mazzei’s Fonterutoli estate. Today she has more than 200 clients, some of them among the most iconic names in Italian wines: Frescobaldi, Mazzei, Barone Ricasoli, Domenico Clerico; Tedeschi, Ca’ del Bosco, Mezzacorona, Bertani, Argiolas and more. International clients include, Hambledon Vineyards, Lefkadia and Zorah. “Ser Lapo was a challenge, because Mazzei was not looking for an artistic label,” says Doni. “I was to design a label that was able to convey a number of elements: decades of history, the wine estate and the wine, all to be summarised in a label.” According to Francesco Mazzei, a good, well-designed label that stands out can double sales. The Ser Lapo Mazzei label, designed for the off-trade, was an innovative design yet classic, aiming to tell the story of Ser Lapo Mazzei, the Florentine notary whose 1398 document first mentions Vino di Chianti. “It’s been a success,” says Mazzei. According to Doni, until the early 1990s most Italian wine labels were dreary, resembling ancient parchments or scrolls, or they were designed by a member of the family and made no effort to communicate the wine. Things improved in the 1990s when the concept of imagery and storytelling through labels became more evident, though according to Doni, labels were still too elaborate. “Over the past 30 years the decorative part has become more marginal. We try to develop a simple, clear, more immediate communication,” she says. “Technology has also developed that enables us

to make some amazing effects through printing, colours and the material we use, such as the Zorah label, which is similar to a jewel.” Zorah is a boutique winery owned by Armenian fashion designer Zorik Gharibian. In 2011, Gharibian asked Doni to redesign his label. She took one look at it and told him that redesigning the same theme was out of the question. She decided to recreate the label from scratch. “Usually I don’t accept restylings, as very often there is nothing worth saving,” she says. “I prefer to start from scratch, study the case and come up with something original and ideal for the character of the wine. I’m like an artisan. My work is similar to a tailor, making to measure.” For the Zorah label, Doni and her studio did a lot of research into Armenian culture and the land where the vineyards were planted. They paid particular attention to the iconography of the Armenian alphabet, which is based in decorative. The result was a design that was both exotic and clean, with a clear link to its cultural origins, and resembling an oriental jewel. The materials used, from the cotton paper to the sumptuous colouring make it stand out. “The wines’ names are oriental, and the message

aims to communicate the geographical origin, while the ornate design aims at communicating the rarity of the product. [It’s] clearly aimed at the premium sector,” says Doni. She adds that research is fundamental and a label can take a year or more to develop, involving meetings with the producers and sometimes with the winemaker, and visits to the winery. As for costs, these vary. Not wishing to disclose her rates, Doni says she charges within the going market rates, which start at €2,000 ($2,450) and go up to as much as €20,000 to design one label, in addition to the costs of the

The redesign of Ser Lapo label for Mazzei’s Fonterutoli estate launched Doni into wine labels.

Simonetta Doni, designer

Another great label Frescobaldi’s Gorgona label is possibly the one that sits closest to her heart, which she describes as an “emotional” project. The island of Gorgona, just off the Tuscan coast of Livorno, has been a penal colony since 1869. It is the only penitentiary island still operating in Europe, holding male inmates convicted of murder, assault and Mafia-related crimes. To these inmates, Gorgona signifies the last stepping-stone to freedom; those who land there have spent the previous 10 to 20 years behind bars, and they spend the last three to five years on Gorgona before final release. Frescobaldi was recently given the opportunity to purchase the vineyards on Gorgona and create a project to help rehabilitate inmates by teaching them how to make wine. It has been a successful project, both from a humanitarian and professional stand-point. “Lamberto [Frescobaldi] came to my studio one day and asked me if I’d like to get involved in this project, to create a special label, but free of charge,” she says. “I agreed and it has been one of the most rewarding projects, involving visits to the islands, soaking in the atmosphere of the island and consequently recreating a message. A message in a bottle.” Doni explains that the message is about inaccessibility, which explains why the label is a parchment closed with a wax seal. It’s about secrecy. But when this wraparound parchment is removed, its back reveals a bulletin, explaining the elements of the island, the wind, the sea, the earth and the life of the convicts. They did not write the material themselves, but conveyed their thoughts through Lamberto Frescobaldi and others, such as opera star Andrea Bocelli. The content changes every year. The packaging comes with an extra ‘bulletin’ sheet, which functions as collectable memorabilia. “A brilliant marketing operation for Frescobaldi,” says Doni. Technically, the paper is waterproof, so the bottle can be submerged in an ice bucket. Gorgona is a premium bottling of 60%

Vermentino and 40% Ansonica and production is limited to about 4,000 bottles, of which 2,200 bottles remain in Italy, while the rest is exported. Each bottle sells for around €90.00 ($110.00). “The label is very important and has proved very successful,” says Frescobaldi. “It represents the philosophy and tells the story of the people and of what is in the bottles, not just the wine, but also hope and the elements of the island. The price is in line with the label and packaging. It’s retro, but at the same time up-to-date, like Coco Chanel: fashion changes but the style remains.” Not only that, the evidence from science is clear – good design makes a difference.

The neuroscience Consumer emotions play a key role in the buying process, therefore, the ability of a visual image to arouse a positive emotional response is a benchmark for marketing goals. Doni has worked alongside Bruno Laeng, professor of cognitive neuropsychology at the University of Oslo in Norway, who has used some of Doni’s wine labels in his lectures. He has asked students to give their opinions on a series of parameters such as, brand visibility, pricing, readable content and message. He has also used eye-tracking technology, to test for individual differences in attention paid to the labels. The results have reassuring for Doni, affirming that

The redesign of the Zorah label was based on extensive research done on Armenian iconography.

her working methods truly do produce design that communicates. “I do believe eyetracking could be relevant for improving the design of wine labels and their marketing,” says Professor Laeng. According to Laeng, eye-tracking is useful in marketing because it offers two key pieces of information. It can show where an individual is looking, and what about the label is capturing attention and for how long (this is known as the distribution of eye fixation). Secondly, measuring the pupils can show how intensely someone is paying attention to the object. Laeng specifically looked for which wine label elements captured the most attention and whether a specific label would be preferred by consumers over other alternative labels. Laeng found that the amount of ‘gaze’ captured by a specific label was related to the degree to which a wine bottle was preferred (and potentially purchased). The research strongly suggested that it’s the pictorial elements of a label that are the most crucial, with text capturing very little attention. The most attractive labels – and, paradoxically, the least attractive labels – produced wider pupils in the test subjects, probably because both labels offered arousing stimuli. He did, however, note that the study was done on wine novices, and might not be applicable to wine connoisseurs. “I believe that the study sketched above has some clear practical implications, because the eye-tracking methods could be used in a systematic manner to assess preferences of potential consumers before a wine label is actually selected for the market,” says Professor Laeng. “Hence the wine label designers, not to mention the wine producers, could benefit from eye-tracking methods to optimise the design process” Doni says that the future will be about digital labels, with “with apps similar to QR codes, where you just need to scan the label with your smart phone and it will talk you through the history of the estate and the character of the wine. Materials will also develop. We already have plastic, three- dimensional labels which, if scanned. will come alive through your screen. However,” she adds. “I believe a label will always need to convey a message, a story and an emotion.” W

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materials and the printing. Doni thinks the money invested is worth it. “If a producer is prepared to pay money for a new tractor or make other useful investments, then he should be prepared to pay money for his label, as this is equally important to his success,” she says. This, is turns out, is true.

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M A R K E T W AT C H RUSSIA

RUSSIA, WITH LOVE Café Pushkin in Moscow is an institution. Anton Moiseenko meets the sommeliers behind it.

n 1999, the artist and engineer Andrey Dellos decided to “bring culture back to Russians”. The result was Café Pushkin. In Moscow, where restaurants open and close virtually every day, the 19 years of history make it one of the oldest dining venues in town. It’s hard to miss: glowing with electrified garlands, it is located some 10 minutes walk from the Kremlin’s walls. Named for the Russian poet Alexander Pushkin, the concept is based on the song “Nathalie” by Gilbert Bécaud, in which he brings a girl to drink chocolate at Café Pushkin. All the French tourists who subsequently went looking for it were out of luck because there was no Café Pushkin, until Dellos created it. The luxurious, bookish interior was based on his own sketches and the restaurant was rushed into being so it could open in time for Pushkin’s 200th anniversary. Today there are eight standalone restaurants in the Dellos Group scattered across Moscow — including the luxury restaurant Turandot — as well as a network of 40 fast-dining restaurants called Mu-Mu. There’s also a patisserie bearing the Pushkin name just next door. As of December 2017, Dellos is also bringing Russian culture to the French: a Café Pouchkine has opened in Paris’s eight arondissement, run by Ladurée ex-director Stéphane Jitiaux, who’s backed by the Moscow team.

Wine, vodka and ambiance Oddly enough, Pushkin doesn’t feature among the recommended places for weekend

brunches in Moscow’s gastronomic reviews: it doesn’t excite the hipster audience that lives on Facebook. Yet Pushkin remains a must-visit place for international guests, who account for more than 60 percent of its visitors. The opinions of celebrities and politicians and former and current presidents are scattered throughout the pages of the three thick books where visitors can leave their impressions, squeezed into one or two sentences. Calling Pushkin a wine place would be a mistake — it’s a place of ambiance, where the décor and old-fashioned attitude of the staff are important as the food and wine. The head sommelier of the Dellos Group, Sergey Aksenovsky, oversees wine policy, dealing directly with importers and organising wine education sessions. The individual restaurants also have sommeliers on staff; Pushkin has three. The restaurant’s wine list is not bound by wine fashion. Even wines like German Rieslings, popular among Moscow’s sommeliers, have yet to make there way on to the list. The reason is simple — the restaurants selects the wines that guests want. “We now carry around 300 labels on our list,” says Pushkin’s head sommelier Dmitry Tufanov, who has been cracking bottles in Pushkin since the early 2000s. While Tufanov agrees that more could be better, he prefers a manageable list to a bulky one. One reason not to over-invest is limited space for bottle storage. Café Pushkin’s cellar is strictly a technical space, rather than something for the public.

Café Pushkin, created by Andrey Dellos

Café Pushkin is one of those rare places where vodka and wine peacefully coexist on one table. In general, traditional Russian dishes (with rare exceptions) match well with the classic European wines. Russian dumplings with meat? Choose light Italian wines from Piedmont or Tuscany. Bœuf stroganoff in sour cream with potatoes? CôteRôtie or Saint-Emilion. Kulebyaka, Russia’s traditional hot savoury pie, is made to go with Burgundian Pinots. Along with the international visitors, Café Pushkin has a loyal local audience — people who grew up dining there and who are now taking their own children. Sommeliers note that this group sees wine a different way; rather than choosing wine to match with food, the sommeliers need to speak about wine as a pleasure on its own terms. “It’s a very delicate communication,” says Tufanov.

Changes and challenges Aksenovsky explains that the biggest change to the wine list since the restaurant opened has been the introduction of democratically priced wines, in the wake of the 2014 collapse of the rouble. “Before the crisis, guests didn’t even look that way.” Champagne, Bordeaux, Burgundy and the Loire have the biggest presence on the list, challenged only by classic Italian wines, mostly from Tuscany. For the true authenticity seeker, there’s a decent selection of Russian wines. Sometimes a restaurant can become too much of a classic, as Dellos discovered when he opened a Café Pushkin in New York. It quickly became the haunt of homesick Russians and that affected its image. Another Dellos venue, Betony, an acclaimed Michelin-star restaurant, was also unable to survive New York’s brutal restaurant economy. But now, the new project is Pouchkine in Paris. It has limited its list to under 30 SKUs, 99 percent being Champagne, Burgundy and Bordeaux, with a couple of Russian wines to make a contrast. The goal always was, after all, to celebrate Russian culture. W

Volume XIII · Issue 1 · February 2018 Editor-in-Chief Felicity Carter, Phone: +49 6321 890879-25, Email: felicity.carter@wine-business-international.com Editorial consultant Robert Joseph Sub-editor Jeff Siegel

Marketing Manager Jörg Sievers, Phone: +49 6321 8908-67, Email: sievers@meininger.de Production Horst Emmert Conception Prof. Hajo Sommer

Publishers Andrea Meininger-Apfel, Christoph Meininger Design & Layout Steffen Heppes Contributors Subhash Arora, India; Eduardo Brethauer, Chile; Wojciech Brońowski, and Correspondents Poland; Bob Campbell MW, New Zealand; Jung Yong Cho, Korea; Michael Fridjhon, South Africa; Eugene Gerden, Russia; Leslie Gevirtz, US; Dr Caroline Gilby MW, UK; Dr Jamie Goode, UK; Mathilde Hulot, France; Panos Kakaviatos, France; James Lawrence, UK; Adam Lechmere, UK; Daniel Lopéz Roca, Argentina; Jürgen Mathäß, Germany; Anton Moiseenko, Russia; Roger Morris, USA; Dr Hermann Pilz, Germany; Jeni Port, Australia; Treve Ring, Canada; Scott Saunders, USA; Michèle Shah, Italy; Jeff Siegel, USA; Sascha Speicher, Germany; Elissaveta Velianova, Bulgaria; Larry Walker, USA; Richard Woodard, UK. International ARGENTINA/CHILE: Diego Eidelman, Bulnes 1785 P.8 C, C1425DKC Sales Representatives Buenos Aires, Phone : +54 911 56175036, Fax: +54 11 48280622, EMail: diego@clubsycountries.com  AUSTRALIA: InterMedia Worldwide, Mike McCorry, 105 Albion Street, Surry Hills, Sydney NSW 2010, Australia, Phone: +61 29211 1690, Fax: +61 29280 2893, Intermediaworld@mac.com  FRANCE: Ute Schalberger, Im Himmel 7b, 5085 Köln/Germany, Phone: +49 221 58 91 93 93, Email: ute.schalberger@t-online.de  ITALY: Ediconsult Internazionale, Piazza Fontane Marose, 3, I-16123 Genova, Phone: +39 010 583684, Fax: +39 010 566578, Email: wine@ediconsult.com  SOUTH AFRICA: Pietman Retief/Catherien Tredoux, 20 Jonkershoekweg/Rd, Stellenbosch 7600, South Africa, Phone: +27 82 554 1476, +27 83 273 2232, pietmanretief@absamail.co.za, catjan@vodamail.co.za  USA: Hans J. Niebergall, Director Marketing USA, 474 N Bedford Road, Bedford Hills, New York, 10507, Phone: +1 914 708-6241, niebergall@niebergall-law.com

Cover Image Maureen Downey Interview photos: Myrna Suarez Printing PVA, Landau, Germany Publishing House MEININGER VERLAG GmbH, Maximilianstrasse 7-17, 67433 Neustadt, Germany, www.meininger.de WINE BUSINESS INTERNATIONAL Maximilianstrasse 7-17 67433 Neustadt, Germany Phone: +49 6321 89080 Fax: +49 6321 8908-14 Email: contact@wine-business-international.com www.wine-business-international.com MEINGER VERLAG shareholding: Andrea Meininger-Apfel (45%), Christoph Meininger (45%), Peter Meininger (10%) Publishing Frequency bi-monthly Subscription Sonja Spuhler, Phone: +49 6321 8908-30, Email: spuhler@meininger.de MEININGER’S WINE BUSINESS INTERNATIONAL is available on subscription at 132€ a year. www.wine-business-international.com ISSN-Nr. 1867-352X

Editorial Secretary Irina Fischer, Phone: +49 6321 8908-57, Email: fischer@meininger.de Marketing Director Ralf Clemens, Phone: +49 6321 8908-81, Email: clemens@meininger.de

Trapiche Nueva Mayorga s/n, Maipú, Mendoza, Argentina Tel: (54) (0)261 5207605 www.trapiche.com.ar

Accolade Wines Thomas Hardy House 2 Heath Road, Weybridge, Surrey, KT13 8TB, UK www.accolade-wines.com

If you want to learn more about MEININGER’S CLUB OF BRANDS don’t hesitate to contact sievers@meininger.de

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COLUMN NEXT ISSUE

SHARE OF BUZZ

t was Coca-Cola that first coined the expression “share of throat” — or “throat share”, to be more precise — as a way of describing its corporate aspirations. Whatever the non-alcoholic beverage consumers might be raising to their lips, from sweet fizzy drinks to mineral water, the Atlanta giant wanted it to be one of theirs. I want to look at a broader, more amorphous product I’m going to call “buzz”. Wine, beer, cider and spirits drinkers all get a buzz from the alcohol in their favourite beverage; marijuana users get theirs from the cannabinoid tetr ahydr ocannabinol (THC). Marijuana boasts 113 cannabinoids; it is cannabidiol CBD that is recognised for the medical uses that have helped its path towards legalisation in Robert Joseph is the US. Until recently, quite recognised as one of the apart from the small matter world’s most interesting of legality, cannabis and commentators on wine. alcoholic drinks differed in one specific respect. When you buy a bottle of vodka, beer or wine, most countries require there be an indication of its strength on the label. The strength of a joint has always been approximate, depending on how much of the plant’s flower is made up of THC. In Colorado where marijuana was legalised in 2014, its THC percentage has been found to range from 15 percent to 30 percent. Just as Lodi Zinfandels have been getting stronger in recent years, US marijuana farmers are steadily adding psychoactive muscle to their crop, so users sometimes get an unexpectedly large bang for their buck. But the combination of commercialism and legalisation has introduced greater precision. Cannabis fans in California no longer need to roll their own cigarettes or bake cookies; they can buy mouth sprays that deliver a precise dose of THC. Users of Jambo sprays, for instance, can decide whether they want as little as one milligram of THC per “hit” or as much as six. Wine professionals have an ambivalent attitude to the alcoholic content of their favourite beverage. They rarely mention it unless it’s to complain that 14 percent (or whatever) is too high. They almost never entertain the idea that they themselves —

or the stereotypical young women enjoying their second glass of Pinot Grigio — are as much in quest of buzz as the older male with his double shot of bourbon. No, for us, alcohol is like the calories in desserts; unavoidable and only to be talked about after the event. Casual wine drinkers seem to have their own ambivalence towards alcohol. When they are questioned, they often say that they want lowerstrength reds and whites. When UK supermarkets have put clearly labelled 10 percent and 11 percent examples on the shelves, however, most shoppers have routinely reached past them for familiar bottles with at least 13 percent. They want the buzz. One person who has taken an interest in the effects of various kinds of buzz is Professor David Nutt, the former chairman of the UK Advisory Council on the Misuse of Drugs, who lost that job for saying that horse riding was potentially more dangerous than Ecstasy. In 2010, Nutt — whose credentials include presiding over the British Neuroscience Association, British Association of Psychopharmacology, European College of Neuropsychopharmacology and the European Brain Council — controversially published a study in The Lancet. It stated that, when its impact on users and “others” is taken into account, alcohol is more harmful than heroin and crack cocaine. Since 2014, however, rather than focus on the relative dangers of particular narcotics, Nutt has taken a more constructive — and commercial — approach. After studying what he calls the “brain science of alcohol” he has developed a patented “responsible alternative to alcohol” that will allow users to get “tipsy” without hangovers or liver disease. A branded beverage called Alcarelle that will “sit alongside vodka” in bars is to be launched in 2018. Last year, Constellation paid $191m for a 10 percent share of the world’s largest publicly traded cannabis company, Canopy Growth. Linda Gilbert, managing director of consumer research at the cannabis business analyst BDS Analytics, told Bloomberg that she saw “cannabis-infused beverages being a particular point of emphasis when it comes to marketing to women consumers” because of their lower calorie content than the increasingly popular “edibles”. A product like Alcarelle would tickle Constellation’s commercial appetite too. In other words, if I’m right, we’re about to see a battle for Share of Buzz. Who knows? Maybe even Coca-Cola, despite the distance it has maintained from alcohol, will be tempted to join the fray.

IN THE NEXT ISSUE

THE BIG BOYS South Africa’s wine output is dominated by big brand players. How do they see the future of the country’s wine industry

HOW TO: SWEDEN Think Systembolaget is the sum total of Sweden’s monopoly market? Think again. A practical guide to selling into Sweden.

TRENDS IN THE NETHERLANDS An exploration of how the wine market is evolving; which trends are on the way up and which ones are heading for the exits.

JAPAN’S GATEKEEPERS Meet the distributors who rule this vital Asian market.

THE COMING OF BIODYNAMICS When Louis Roederer placed ads about its biodynamic methods in the New Yorker, it signalled that biodynamic has gone mainstream.

NEXT ISSUE

VOLUME XIII ISSUE 2 · APRIL 2018 PUBLICATION DATE: 4 May 2018 ADVERTISING DEADLINE: 13 April 2018

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www.wine-business-international.com Volume XIII · Issue 1 · February 2018

MEET THE WINE DETECTIVE

POWER LISTS: THE UK WINE MEDIA

THE LOW- AND NOALCOHOL TREND

Wine fraud expert Maureen Downey is so respected that she has been consulted by the FBI and the US Department of Justice. She explains her work to Robert Joseph. Page 30

Newspaper columns are not what they were, but wine communicators are still powerful. James Lawrence looks at the key figures in the UK. Page 18

Dry January, government crackdowns and health concerns have combined to create a new category of wines. Our authors look at the trend. Page 20

A ROAD MAP FOR WINE

UNTANGLING THE GERMAN MARKET

Researchers at Germany ,s Geisenheim University deliver a report on what the wine trade believes will be important for the future. Page 48

Introducing our new 'How To' feature, which reveals how a market functions and what you need to know if you want to sell there. Page 68