NoBullGrape

Insight on French industry's decline

French wine consumption... dropping.
French wine exports... dropping.
French wine land values... dropping.

According to an AFP article, Bordeaux is taking the biggest hit as the worldwide wine market changes with increased competition and new consumer markets become the reality.  We've heard this for a long time, yet the difference between the enthusiasm seen in most US wine regions we hear from and those quoted in this article is quite amazing.  It is like they are in 2 different industries.  In many ways... they are...

I've included the whole article (based on some very interesting admissions of serious problems from ONIVINS) as it looked like it was on a site that wasn't going to be around for too long...  Also please note the unique status of Champagne among French wines... Now, if that isn't a statement about the importance of quality, I don't know what is.

    Bordeaux vintners face an extraordinary dry season

Bordeaux - Hit by falling sales at home and abroad, hundreds of winegrowers in the southwestern Bordeaux region, home to some of the most illustrious French wines, are battling with the worst crisis to hit the sector in three decades.

Part of the problem lies with changing consumer trends, which have seen the French cut back on their wine drinking by half in 40 years.

Only 21 percent of French people aged 15 and over regularly drink wine, down from 24 percent in 2000 and 51 percent in 1980, the National Interprofessional Office of Wine (Onivins) said last month.

Many French consumers have also turned away from Bordeaux wines, seen as having hiked up their prices unreasonably during the 1990s.

But the industry has suffered most from a steady drop in French exports, increasingly outperformed on the international market by "New World" wineries in Australia, Chile, South Africa and the United States.

The vine-cloaked hills sweeping up from the Gironde estuary, on France's southwestern Atlantic coast, are home to the largest number of wines listed under the Appellation d'Origine Controlee (AOC) classification system.

Exports of all French wines were down in the first half of this year -with the exception of Champagne - but Bordeaux wines suffered the most, with a 11.4 percent drop in export volume and a 17.9 percent fall in export revenue.

"We are in the eye of the storm. Prices are low, the market is crowded, and sales are sluggish. The situation is serious," warned Jean-Claude Pichon, the regional head of the Credit Agricole bank.

Rising debt and overproduction are rife in the region, and the regional industry is growing ever more concentrated - from 20 000 producers 20 years ago, the number has fallen to 10 000.

One major industry player, speaking under cover of anonymity, expected the number of winegrowers to fall again by half, to 5 000, in the next 10 years.

Many growers face crippling debt, having bought vineyards between 1997 and 2002, when prices were peaking at €45 000 per hectare. Average prices have since slumped to €20 000 euros per hectare.

"This year, for the first time, we are seeing winegrowers turn to the courts for a solution," according to Philippe Abadie, an official at the chamber of agriculture of the Gironde department surrounding Bordeaux.

Under French law, companies can place themselves voluntarily under legal administration, in the hope of avoiding bankruptcy.

For these growers, "banks and suppliers can no longer help with their financial troubles. The courts can offer them a recovery plan over 10 or 15 years," Abadie said.

Even the most prestigious producers - from Medoc to Bordeaux AOC - are affected by the crisis, according to Abadie.

In the longer term, however, observers expect the industry will emerge stronger from this difficult spell.

"Will remain those who have managed to adapt, who can strike the right balance between competence, quality and price," according to Pichon, whose banks counts 500 to 600 producers suffering in varying degrees from the crisis.

"They need to be more thorough, more determined - and they need  to lower their yields," he said.

Elderly winegrowers are most likely to throw in the towel - "people of a certain age, who lose hope and decide either to rip up their crop or hand over to someone else," according to Pichon.

More than one third of Bordeaux producers are aged over 55 - and a quarter of these are over 60. - AFP   

Italian wine exports to US up!?!

Just Drinks reports:

Wine exports from Italy to the US rose considerably in the first eight months of this year, according to recent figures. Italian farmers’ union Coldiretti said yesterday (27 October) that exports to the country were up by 16.2% year-on-year between January and August.

Coldiretti added that the US market absorbs about a quarter of Italy’s wine exports in value terms.

With all the news about the demise of the French wine industry, I find this suprising. Anyone have any insight?

Bordeaux from Australia? No Way!

I'm all for holding people to use the correct terminology, yet I think that my blogging colleague at Shiraz (a great blog that I often recommend and where I have learned a lot about Australian wine) is misinterpreting the Center for Wine Origins' mission and materials.  In fact, I think that, upon a close reading of their materials at the event in Chicago and on their website, they are the type of group that would applaud Mike of Shiraz's general point of view.  Let me explain:
Mike blogged on October 12 under the title "Europeans to Terrorize Wine Buyers that the Center was (and I summarize here) that the Center for Wine Origins was 1. discriminating in picking only European locations as location matters to wine growers worldwide and 2. falsely saying that Australia allowed the use of the word Bordeaux on its labels (similar to the practice allowed in the US where Sherry, Port, etc. is used on wines not made in Spain or Portugal respectively).  Mike then commented yesterday on this blog saying:

I'd like to ask them why their advertizing on "The concept of misrepresenting location isn’t a hard one to grasp" puts as an example "Bordeaux from Australia"?

Then I'd like to ask them to show me examples of Australian wines that are actually labeled Bordeaux.

And then I'd direct them to the Australian Wine Law, Making and Labelling page on the Australian Wine and Brandy Corporation site; the AWBC is the Australian Government authority responsible for the promotion and regulation of Australian wine and brandy. Under the Register of Protected Names page they would find the following "Please note that it is illegal to use protected names in the description and presentation of wine in any context whatsoever, even in an otherwise true statement in textual form on a back label (eg. ‘this wine is made from a typical Bordeaux blend of grapes’,..."").

Am I miffed about Australia being misrepresented in such a blatant way. You bet!

Thought it would be easiest to cover this in one post.  If you look at the full page on which the words "Bordeaux from Australia" appear, it is pretty clear that the Center is making it clear that such a thing would be misleading and wrong (in the same way that Florida Oranges don't come from Nebraska and Walla Walla wines don't come from Hong Kong).  They certainly are not saying that wines from Australia use the term Bordeaux... they seem to be saying that something like that is so improbable that it is laughable.  The line that seals the deal: "No Way!"  I believe that this actually is a sentiment that matches Shiraz's strong defense (or as they say  defence) of Australia and its straightforward labeling practices.

In fact, I would bet that the Center for Wine Origins would really like to have the US -- clearly their target audience from what I saw in Chicago -- pass exactly the law that Mike quotes from Australia's AWBC as it does a great job of protecting consumers from the kind of mislabeling that is allowed in our great 50 states.

Now one can complain all they want, but the examples are central to explaining a very complex topic.  That "location matters" (as they say) is a tough sell in the US.  It is much easier for consumers to focus on brands or varietals and have no clue where their wine comes from.  Yet we all know that a wine from one place in California is different from a wine grown in another location in that State.  The examples here as well as the examples used in the Champagne ads that ran in previous years look to try and make this concept as simple as possible... put it in terms that consumers understand.  In the same way that everyone  knows that Florida Oranges don't come from Nebraska, wine consumers should know that Walla Walla wines don't come from Hong Kong, etc.

I agree with Shiraz' complaint that the Center only uses Port and Champagne as its wine examples in its events.  It would be great if they talked about MacLaren Vale's unique effects on wine as much as they did about the impact that the trellised hills of the Duoro river effect on Ports, yet look who is paying the bills.   That said, as Shiraz makes clear, the Center is a signatory of the Napa Declaration and is clearly more friendly to the idea of US AVAs, etc. than many others on that side of the Atlantic.  In fact in both the seminar I attended and the discussions I had at their booth at the Chicago Food & Wine festival they made a point to talk about other wine regions -- particularly Napa, Oregon and Washington State.

I appreciate the comments and the ongoing dialog about this, yet I think that it is important that the Center's materials be clearly read and put in context before we attack them.  I bet the Florida Orange juice people love getting the free publicity from these materials and think that others should support strong efforts that expand US consumer understanding of the wines they drink as this is central to building a stronger and stronger US consumer base that loves (and is no longer confused or scared) of wines from all over the world.  Maybe there is some organization that can be created that would bring all of these great winegrowing regions together -- an association of associations of great wine places -- where they could all work together to educate consumers about their regions.

 

Center for Wine Origins in Chicago

We’ve all been talking about the recently launched Center for Wine Origins.  So instead of talking, I went to see what they are all about.

While at the Chicago Wine & Food festival last weekend, I attended a seminar sponsored by the Center. Led by a speaker from the Society for Wine Educators (Lisa Airey), the seminar was all about the terroir of the Champagne region and the Duoro Valley (the group uses Champagne and Port as examples when talking about protecting wine origins). She really knew about these places and brought them to life.  For example, I knew Champagne was chalky and cold, but the Lisa Airey brought soil composition, microclimates, history (Napoleon, WWI, etc.) together in a way that was really informative and – frankly – cool.  She brought the uniqueness of Port and Champagne places to life. 

Of course, the discussion was helpful, but everyone came for the wine… I found the tasting greatly improved by my better understanding of the distinct place where the wine came from.  Sort of like tasting a Napa Cabernet Sauvignon after you have visited Napa.

We tasted two Champagnes that I had never had– Pommery Brut Royal and Nicolas Feuillatte Rosé. I guess I had just passed over them at the stores as they are both relatively available.  In any case, found the Pommery to be somewhat yeasty and quite dry, which called to mind the chalky soil that Airey mentioned. With its higher pinot noir content, the rosé was slightly fruitier and a truly different wine than the first, yet the notes on location, grape type, etc. came in handy when tasting the two.  While different, both blends from multiple places, vintages, etc., it was clear that they were both from this special winegrowing region.

The Center followed the Champagne with two Ports. The first was a Quinta de Ventozelo 10 Year Tawny, which I’ve never had – I don’t think it’s sold in the U.S. The wood aging gave it a really nice full, round flavor and a beautiful color. We finished up with a Vista Alegre 1997 Vintage, which the staff had nicely decanted prior to the seminar. It was a little on the young side, but the contrast between it and the tawny was incredibly sharp – a testament to how greatly differences in the aging process are reflected in the bottle.

I went down to the Center’s booth in the festival’s main tent afterwards and tasted the 1997 Vintage one more time – it really outshone some of the other more standard Ports being tasted at the festival.

At the end of the day, I think I learned two things about the Center:
1. They are passionate about location.  While Champagne and Port are clearly their primary focus, complaints by others that this is some sort of scheme by the Europeans to attack the US, etc. are unfounded.  The Center goes out of its way to talk about location being important for all wines – one of the main themes of this blog.
2. They are the real deal.  Instead of just another association pitching a theory, they had smart, engaged spokespeople at the seminar and the booth who were willing to spend time talking about wines, etc…. not just handing out glossy materials (or dressing in red spandex with little to say like those trying to get us excited about Wines of Rhone….).  In addition, I found them very focused on the consumer -- not trying to  just be a voice for the other Ports and Champagnes that were displayed at the event.

Overall, found the Chicago Wine & Food event interesting.  A bit of a pourathon, I still found lots of smart, interesting people who care about wine and are excited about telling potential consumers about their wines.  All in all, a good sign for the future of the US wine market. 

Top Ten Blog

Thanks for the nice mention of NoBullGrape on TopTenBlogs!  Always nice to know people out there are reading this.

Champagne: Insights from the Champagneoise

We love Champagne and learned a lot more by listening to Remí Krug and others on this very interesting (would be better without the cheesy background music) podcast from Blog au Vin.
Every single one of these folks is convinced that their location (as the ads say "Champagne Only from Champagne") is key to the grapes that produce this great wine.

Up and coming Argentina

Haven't been asleep at the wheel... just lots of work, etc.  In addition I've been thinking a lot about Argentina's role/future in the wine world.  As I said previously, we had an amazing trip down there.  The wine, the people, Mendoza, Buenos Aires... all great.  They make world-class wine, yet I've been wondering how they are going to fit into the wine world of the future.
The investment that we saw in Mendoza was largely Argentine and European.  With Kendall-Jackson's departure from its Tapiz venture, there are few major US wine producers influencing the region.  The biggest exception is probably Paul Hobbs, a "flying winemaker" who has jumped in with both feet.
Examples of major European investment include:
Salentine (Dutch ownership), Altavista (French) and O. Fournier (Spanish). Clearly, one cannot have a conversation about Mendoza without mentioning Catena, etc.  In addition, there are a great number of very cool, smaller Argentine winemakers who show enormous promise (please see Dr. Vino's blog and his entries about Susana Balbo as a great example of this).  As you would expect, I’ll hop over the bulk players like Trapiche, Norton, etc. much in the way that I would hop over Gallo when discussing sparkling wine.
The major quandaries for wines from Mendoza are:

• lack of knowledge about Argentina and Argentina as a winemaking country
• lack of knowledge about its primary red grape – Malbec 
• a lack of major English speaking marketers.

Yet they have some amazing advantages:

• Price (with the peso to dollar exchange at about 2.8 and lower land and labor prices than anything I have seen in the industry they can keep their prices competitive for a long time). 

• Amazing land and location – the semi-arid dessert climate watered by highly managed Andean runoff makes it look like Walla Walla with water. 

• Determination.  Every wine region has determined winemakers and community support.  Mendoza has as much, if not more, than I’ve ever seen.  It may be partially borne by their cyclical economy or the

• Budding high-end tourism industry that will help spread the word.  Just think Napa 30 years ago and how influential the visitors to the region have been in preaching Napa’s virtues since then.  Limitless Argentina is a good example of this – for the wine region and the country as a whole.

The real question is how the pros and the cons will play out. In the end, it may be that all of the players will need to work together to put Mendoza and Malbec on the map as a quality region and grape as opposed to exclusively focusing on brands… something that many well established wine regions continue to struggle with… before their individual labels will take off and compete effectively for shelf space and consumer “mindshare” in the US.

The W. Blake Grey section

Maybe they should rename the SF wine section for W. Blake Grey.  He wrote 3 of the 8 (and the majority of the substantive) articles in the whole section.  And they are informative.  Blake adds a chapter to NoBullGrape's continuing look at harvest as a time for learning about wine, he brings us up to speed on the status of the California harvest (reports are getting better) and educates about the 1860s in France and phylloxera.  All interesting additions to the dialog.  Thanks.

Changing US food scene

Frank Prial has a great overview in today's NYT Food & Wine section of how the leading lights of NYC restaurants -- particularly Danny Meyer, Drew Nieporent, Bouley, etc. -- created contemporary cuisine.  Just as was stated when Julia Child died, I think these restaurateurs (as well as others) are integral to the increased interest in wine among US consumers.  Without great, unique (and, frankly, less French) food, there would be fewer opportunities to pair new wines with food. 
Each of the new generations of chefs have moved US cuisine away from straight meat and potatoes and towards fresher ingredients, interesting international influences and a rethinking of the "old standards." They have also broken down the barriers where one thought French, Italian, Californian when describing a restaurant. All of this has made dining out across the US -- as these trends have major impacts across the country for many years -- a more exciting event.  In addition, the diversity of the foods has forced restaurant wine cellars to expand and diversify... opening the doors to greater consumer knowledge and numerous wine "discoveries."  When this is coupled with a change in the manner in which one serves food and wine (out with the big old guy who talks down to you and in with the knowledgeable wait staff and sommelier who wants to help you), the wine industry, the restaurant and the consumer all win.
Clearly this reinvention needs to continue and one reads Prial's article wondering if he is also quietly saying that the new wave of restaurants from the 80s have now become the "old standards" and there is a need for a new revolution.  I say, bring it on!  It certainly can only help more Americans find more wines from wonderful wine growing places that go with whatever the next generation of hot shot chefs can come up with. 

Names, location talked about everywhere!

Tom over at  Fermentations makes some very good points about the previously mentioned Center for Wine Origins.  By the way, they seem to have launched a very nice web site since we last spoke about them.

I highly recommend reading Tom's piece.

In addition, Daniel Sogg of the Wine Spectator does a great job outlining how the California Supreme Court (protecting the name Napa against the Fred Franzia's of the world who want to use the words on bottles that do not include grapes from Napa) are in direct opposition to the position of the US Government (read Wine Institute) in the Wine Accords.

In the end, all 3 -- Sogg, Fermentations and the Center for Wine Origins -- come to a similar conclusion.  Place names matter and semi-generics should cease being used.  As Fermentations makes clear, these names do not inherently guarantee quality, but -- whether it is a truth-in-labeling issue or time for everyone to stand on their own two feet -- they certainly should only be used by these particular regions.