communications without intelligence is noise Global Wine Trends Weekly Update created: 16.04.2010 Critical Publics | EDOAO Global Wine Trends 16/04/2010 Weekly Update Table of Contents Table of Contents .................................................................................. 2 Global Market Watch ............................................................................ 4 Wine outstrips shares as investors get the taste for liquid assets ................. 4 Second wine firm probed over scam fears...................................................... 4 Wine producer charged over sultana substitution ......................................... 5 Brits Blissfully ignorant about Wines ............................................................. 6 Women hailed as pub saviours ....................................................................... 6 Growers buy out $1 wine ................................................................................ 7 California Sparkling Wine Sales Jump ............................................................ 7 New wine buying website offers 'exclusive, interesting and quirky' range ... 8 Italy winemakers eye tweet sales with social media ..................................... 8 City Winery set to expand into Chicago.......................................................... 9 Global Industry Watch ........................................................................ 10 New Zealand overtakes Germany in UK wine sales ...................................... 10 Winemaker Constellation Brands posts 4Q loss ........................................... 10 Oyster Bay Vineyards Faces Loss as N.Z. Grape Prices Decline .................... 11 American wineries up, sales flat ................................................................... 11 Oddbins bounces back with double-digit rise in sales.................................. 12 Fine Wine Brings Cheer to LVMH .................................................................. 12 Washington State Wants Wine Tourists ....................................................... 13 Domestic Table Wines Grew By 5.3% .......................................................... 14 Large wineries continue fight against tax .................................................... 15 Wine Domain Catalysts Watch ............................................................ 16 Basset - world's best at last.......................................................................... 16 Gordon Ramsay's wise words for the wine bluffs ........................................ 16 Scientific Developments & Technological Breakthroughs Watch ....... 17 North America strengthens wine research and development ...................... 17 Wines from Greece Publicity Monitor ................................................. 18 Greek Wines Are No Longer a Tragedy: Here Are Five That Are Hard to Pronounce, Easy to Drink.............................................................................. 18 A rare value chardonnay from Burgundy ...................................................... 19 Blogosphere Monitor ........................................................................... 19 Small Winery Marketing Rule #1: Know Thy Self......................................... 19 Small Winery Marketing Rule #1: Know Thy Self......................................... 20 Tony Soter sheds some weight [carbon footprint] ....................................... 21 And so it begins… Jay McInerney, wealth porn, and the WSJ ..................... 21 Critical Publics | EDOAO Page 2 of 26 Global Wine Trends 16/04/2010 Weekly Update Peripheral Domains Intelligence ........................................................ 22 British wine critics turn their noses up at new autobahn ............................ 22 A fashion duo dresses up a wine label .......................................................... 23 Saving Salamanders May Mean Restricting Vineyards ................................. 23 Construction Continues for UC Davis' Showcase Winery ............................. 24 South Africa launches sustainability seal ..................................................... 25 Global Sustaining & Emerging Trends Digest ..................................... 25 Wine: Natural isn't perfect............................................................................ 25 Critical Publics | EDOAO Page 3 of 26 Global Wine Trends 16/04/2010 Weekly Update Global Market Watch The global market watch outlines developments, spotted and emerging trends that define the current situation in the global wine landscape. It includes all major developments in the market including consumer trends relating to wine and marketing campaigns or approaches, as well as concerns on health and sustainability. Wine outstrips shares as investors get the taste for liquid assets THE DAILY TELEGRAPH, UK 14.04.10: Top-notch wine has withstood two US recessions and beaten a benchmark shares index over the past 13 years, according to a study by two Swissbased economists. Philippe Masset and Jean-Philippe Weisskopf studied more than 400,000 wine prices between January 1996 and January 2009. The period covers the dotcom boom and bust and the credit bubble and subsequent market meltdown. Gordon Ramsay's wise words for the wine bluffs Their general wine index beat the Russell 3000 Index of top US shares, mainly due to wine's outperformance in the recent crisis. From mid-2008, wine fell 17pc compared with a 47pc drop in the shares index. The economists found that an index of first-growth Bordeaux from top vintages "hugely outperforms" their two other wine indexes from 2005. Top Bordeaux wines include Chateau Margaux, Chateau Latour and Chateau Lafite Rothschild. The elite wines produced a more than fivefold return compared with the regular wine index, which more than doubled. The Russell 3000 rose about 50pc in the same time, Bloomberg reported. "Our findings show that the inclusion of wine in a portfolio and, especially, more prestigious wines, increases the portfolio's returns while reducing its risk, particularly during the financial crisis," concluded Professor Masset and Mr Weisskopf in their study, Raise Your Glass: Wine Investment and the Financial Crisis. Simon Staples, sales director at wine merchants Berry Bros & Rudd, said wine started to catch on as an investment in 1996, a top year in Bordeaux, but really took off from 2003. During the financial crisis, investor interest continued to rise because wine, like gold, is a tangible asset. Prices dipped after Lehman Brothers collapsed in September 2008 but picked up again from the middle of last year as confidence returned to the City. Prices of top Bordeaux at Berry Bros are also being driven by huge Chinese demand. "China has a new thirst for the top 20 brands from Bordeaux," Mr Staples said. "Lafite is going up 15pc or 20pc a month in just about every vintage." http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7588664/Wineoutstrips-shares-as-investors-get-the-taste-for-liquid-assets.html Second wine firm probed over scam fears THE INDEPENDENT, UK 09.04.10: A second wine company is under investigation by Scotland Yard detectives probing a multimillion-pound investment swindle, it emerged today. Investigators have begun examining the accounts of Finbow Wine, a company claiming to have Critical Publics | EDOAO Page 4 of 26 Global Wine Trends 16/04/2010 Weekly Update offices in London and Hong Kong. The business offers lucrative returns to customers who invest large sums in premium French vintages and large quantities of Italian table wine. It also sold investment packages in wine to be sold in South Africa during the World Cup football tournament this summer. But police suspect the company is simply a front for a cold-calling con that has left dozens of investors out of pocket. Two men behind the company, director Paul Rees and colleague Simon Dempsey, have been arrested and questioned at a central London police station. Police are investigating whether the company is linked to Nouveau World Wines, based in Bromley, south east London. Salesmen at that company are suspected of duping people into handing over tens of thousands of pounds each to invest in specialist Australian wines. Victims have accused them of using similar highpressure tactics to boiler room conmen flogging worthless shares. Once the money was taken the investors were told the wine had been laid down in overseas vaults to increase in value as it aged. Police are investigating if stocks were hugely overpriced and the size of potential returns exaggerated. It may be the case that no wine was ever stored. Six people were arrested last month when officers raided offices and homes in in Docklands, Sidcup and Bexley. Specialist internet message boards contain a large number of comments from customers concerned they have been ripped off by either company. Detective Chief Inspector Robin Cross, of the Fraud Squad, said two further arrests were made after the first raids. A 40-year old woman and a 53-year-old man were arrested on suspicion of money laundering at a central London police station last month. Mr Cross said: "This kind of investment fraud is becoming far too common."People from all economic backgrounds are being targeted and persuaded to invest in what appears to be a sound financial opportunity. … http://www.independent.co.uk/news/uk/crime/second-wine-firm-probed-over-scam-fears1940534.html Wine producer charged over sultana substitution ABC, AUSTRALIA 09.04.10: Seven years after the event, a former boss of a South Australian winery has been found guilty of passing off sultana grapes as chardonnay.Andrew Hashim, onetime managing director of Rivers Wines in the Riverland, has been charged with falsifying records, and falsely selling grape juice and wine as chardonnay to more than 10 companies during the 2003 vintage. It was discovered when one buyer raised doubts about the variety, leading to an investigation by the Australian Wine and Brandy Corporation.Peter Simic, editor of Winestate Magazine, says the company was trying to capitalise on the high chardonnay prices."They're doing it for money and I think during 2003 it was the boom period for Australian chardonnay, so it was selling for $1000 dollars a tonne, whereas sultana was of course very cheap, perhaps $200 or $300 a tonne," he says. "So there was a big difference then." http://www.abc.net.au/rural/news/content/201004/s2868504.htm Critical Publics | EDOAO Page 5 of 26 Global Wine Trends 16/04/2010 Weekly Update Brits Blissfully ignorant about Wines INDIAN WINE ACADEMY, INDIA 15.04.10: Despite UK being a sophisticated and growing wine market, most of the British wine drinkers are blissfully ignorant about wine, suggests a survey of around 2000 persons in which the researchers found that 90% Brits did not know how wine is made and 87% did not know that more than one grape varietal could be used in making Champagne. These people thought Champagne is made from only one grape varietal-whereas it s usually a blend of 3 grape varieties-2 of which are red- although it can be made from a single variety – Chardonnay (blanc de blanc), Pinot Noir or Pinot Meunier.Twothirds of people could not tell the difference between Sauvignon Blanc and Sancerre- the former is the grape varietal which is used in the white wine based on the name of the village (like our Dindori). Only one out of three knew that Sancerre wine was made from Sauvignon Blanc grape. Same percentage said they bluffed their way while ordering wine in a restaurant and acted as if they were following the advice of the sommelier which in fact they did not. Another study reported in delWine last year had indicated the Second Cheapest Wine Syndrome, where most people preferred to order not the cheapest wine, lest they are considered cheap but the second lowest priced wine, to sound wine-intelligent. In the current survey, one in four admitted they simply selected the cheapest bottle on the list when eating out. About 60% said that all wines get better with age when around 95% of world wine production is meant to be drunk young and wine does not get any better with age.The lack of knowledge may explain why 84 per cent of those surveyed said they had been ripped off buying wine. … The percentage of people not well-informed about wine may not be much larger than the number disclosed by the UK study which may be flawed due to various factors and not statistically correct but could be a good general indicator. http://www.indianwineacademy.com/item_1_378.aspx Women hailed as pub saviours THE SUN, UK 15.04.10: BOOZE guzzling women could be the unlikely saviours of pubs as research shows they are spending more time than EVER in their local watering holes. A study of 2,000 women showed that a THIRD went to a pub at least once a fortnight, usually down the local boozer rather than an upmarket high street chain. And it revealed that even more women would go to pubs if they served better quality food, had entertainment and less televised sport. One in five women said they drank beer in pubs, just more than those opting for spirits. Kirsty Derry, boss of BitterSweet Partnership who conducted the survey, said: "We know the majority of women still prefer drinking wine and visiting wine bars, but it's encouraging to see there are an increasing number of women heading down to their local pub to sample the great beer on offer. … http://www.thesun.co.uk/sol/homepage/news/2933700/Women-hailed-as-pubsaviours.html Critical Publics | EDOAO Page 6 of 26 Global Wine Trends 16/04/2010 Weekly Update Growers buy out $1 wine WEEKLY TIMES NOW, AUSTRALIA 14.04.10: A WINE grape grower group has bought up stocks of an imported wine selling for just $1 in two-litre bottles. The Wine Grapes Marketing Board on Wednesday bought the last 237 bottles of the Argentinian wine from the Billabong Bottle Shop in the Riverina town of Griffith. Chief executive officer Brian Simpson said the board decided to buy the wine to "get it out of the industry" in response to angry complaints from local wine grape growers. The Weekly Times this week revealed the Argentinian wine was being sold in two-litre plastic containers in the shop for just $1. Wine grape grower and board chairman Bruno Brombal said the sale of imported wine for that price sent all the wrong signals to the local industry. "We have seen wine at $2 for a (750ml) bottle before, but when you are talking about $1 for a two-litre bottle, we're just disgusted," Mr Brombal said. "It just sends a signal to growers that there's not much hope for them when imported wine is being sold that cheaply." Before the the board decided to buy the last remaining bottles of the wine, Mr Simpson said it was being dumped on the market at a time when oversupply was sending local growers to the wall. He said the board also intended to have the wine tested to ensure it met Australian standards for minimum chemical residue limits. "We believe the product is being dumped into our market at a time when Australian growers are suffering," he said. "The Billabong Bottle Shop has been a big supporter of local brands over the years and now they have this product, which I think is pretty disappointing," he said on Tuesday. …. http://www.weeklytimesnow.com.au/article/2010/04/14/176911_latest-news.html California Sparkling Wine Sales Jump YOUR CALIFORNIA, USA 10.04.10: A bad economy is apparently a good climate for making a Champagne toast. The Wine Institute, based in San Francisco, reports sales of California-made sparkling wine were up 8% in 2009. The jump in sales helped the Golden State maintain a 60% share of the market for sparkling wine in the United States. The Wine Institute reports that foreign products remained flat. Overall sales for California wines sold in the U.S. last year, were up only 0.2%. And, of the wine sold, consumers were looking for a lower price point. The Institute shows wines priced up to $7 a bottle made up for much of the growth in sales. “Although consumers were cautious in their spending last year, the underlying consumer trends in the U.S. have kept wine on the dinner table during this tough economy," said Robert P. (Bobby) Koch, President and CEO of Wine Institute. "The baby boomer generation has enjoyed wine for decades and now millennial consumers, who grew up in families who served wine, are also showing an affinity for wine,” Koch noted. Critical Publics | EDOAO Page 7 of 26 Global Wine Trends 16/04/2010 Weekly Update This millennial generation trend has wineries based in the Paso Robles wine growing region eager to market toward those aged 21-30. Look for Randy White's Your California column on this topic in the May/June issue of Central Coast Magazine. http://www.wineindustryinsight.com/RSS//index.php/hop/latest/california-sparkling-winesales-jump-your-show/22622 New wine buying website offers 'exclusive, interesting and quirky' range TALKING RETAIL, UK 16.04.10: A new approach to buying wine online has been launched to the UK wine drinkers. FindWine (www.findwine.co.uk) is the brainchild of three "self-confessed wine lovers", Mike Howes, John Critchley and Martin Jeffery, and delivers what is described as a user-friendly and dynamic alternative to the supermarket wine aisles. The website, which features only 54 wines at any one time, is designed to make wine buying less intimidating and more interesting, taking the guess work out of selecting a wine and making it easier for consumers to choose, explore and experiment. The range features exclusive, interesting and often quirky parcels sourced from boutique producers with an individual approach to winemaking. By limiting the range, FindWine is able to offer a streamlined, well thought out number of choices, distilling the options for the consumer whilst also encouraging exploration and trial of less well-known varieties and regions. … "Our aim is to enthuse the wine buying public, giving them the tools to become more confident in their purchase decisions, and to really explore the world of wine beyond the big brands by giving them access to limited edition parcels that they won't readily find elsewhere." Howes added: "Everybody should enjoy drinking wine, instead of worrying about country, grape variety or region – with our selection matrix consumers just have to choose which style of wine they want to drink and how much they want to spend. Simple."… The launch of FindWine will be supported by an integrated PR and marketing campaign across print, online and digital media. http://www.talkingretail.com/news/industry-news/14891-new-wine-buying-website-offersexclusive-interesting-and-quirky-range.html Italy winemakers eye tweet sales with social media REUTERS, USA 13.04.10: Italian winemakers, usually wedded to centuries-old traditions, are slowly embracing Twitter, blogging and Facebook to boost sales that have been hit by the global economic crisis. Italy, the world's secondbiggest wine producer after France, saw export sales drop 6 percent to 3.5 billion euros in 2009 hit by the crisis and Critical Publics | EDOAO Page 8 of 26 Global Wine Trends 16/04/2010 Weekly Update advancing competition from the "New World" wines, according to industry data. "In the times of crisis it is important to experiment with new ways of making yourself known," Susanna Crociani of family owned Crociani, makers of full-body red Tuscan wine Nobile di Montepulciano (www.crociani.it) told Reuters. Crociani, who says she was the first Italian winemaker to start a blog in 2004, said she has gained many new clients -individual wine lovers, restaurant owners and professional buyers -- after launching a Facebook page. She has also started to use Twitter just a few months ago. "An advantage of social media is that you don't have to pay (for making yourself known). You have to invest your time. But it pays off," Crociani said at Vinitaly wine trade fair. Contacts through social media have boosted Crociani's online sales with the number of orders doubled to 50-60 a month, a considerable help for the small company which makes 60,000-70,000 bottles of wine a year, she said. Facebook and Twitter, popular among the youth, are especially important in winning back young consumers who tend to favor beer or other drinks over wine, Crociani said. Keeping with the new trend, consortium uniting makers of the famous Tuscan red Brunello di Montalcino (www.consorziobrunellodimontalcino.it), opened a Facebook page at the end of last year and now lists more than 10,000 fans. Consorzio del Vino Brunello di Montalcino, which has also activated ConsBrunello profile on Twitter in March, said it was too early to evaluate the economic impact of such innovations. Crociani said Italian winemakers lagged far behind their U.S. rivals in understanding the growing importance of social media as new communication and marketing tools, but first steps are being made. Crociani has helped to set up a Twitter group "Tweet your wine" a month ago which unites a dozen of Italian winemakers. As the word spread around, several winemakers came up to her on the first day of Vinitaly asking to join the group, she said. In the tough times, social media community has created a kind of safety network as fellow winemakers exchanged useful information and even passed on clients to each other, she said. Some conservative producers prefer stick to more traditional ways of promoting their business. Ca' del Bosco makers of bubbly franciacorta wine are due to launch a new multimedia website (www.cadelbosco.com) in about a month inviting clients to an interactive visit to their winery and the Franciacorta winemaking district in northern Italy. Hardcore traditionalists reject innovative communication in favor of personal contact with clients. "We are part of history, part of a long tradition ... We prefer to have people visiting our winery," said Vincenzo Protti of Il Borgo di Vescine winery (www.vescine.it) whose history dates back about 1,000 years and which now makes some 60,000 bottles of Chianti Classico red wine a year. http://www.reuters.com/article/idUSTRE63C1KZ20100413 City Winery set to expand into Chicago DECANTER, UK 12.04.10: City Winery, the New York winery in downtown SoHo begun in 2008 by music producer Michael Dorf, is set to expand, first to Chicago in 2011, and then to other key cities. Described as a 'membership winery', Dorf and Burgundian winemaker David Lecomte buy grapes from producers in the United States and Argentina, then vinify on site, producing private label wines for members. City Winery which also has a bar and restaurant is not a conventional custom crush facility, as Lecomte takes all vinification decisions himself. It currently has around 220 members, paying between US$5,000 and US$10,000 for a barrel. The concept is now set to expand, with a site in central Critical Publics | EDOAO Page 9 of 26 Global Wine Trends 16/04/2010 Weekly Update Chicago expected to open in 2011. Lecomte recently returned from successful talks in Paris about extending the concept there. 'The plan has always been to open City Wineries in other key world cities,' Dorf told decanter.com. 'Chicago is a natural first step, as it is a large cultural centre, and we mix the culture of wine with food, music and entertainment. We are interested in bringing City Wineries to places that don't have their own vineyards, but are full of cultured people who are interested in wine. 'We feel this cultural, inclusive approach to winemaking could work very well in France. And why not London, Shanghai and Hong Kong after that?' http://www.decanter.com/news/news.php?id=296859 Global Industry Watch This section records developments and trends on both industry and individual corporation levels that form a matrix of the major issues and moves in the industry as a whole or by its critical actors and groupings, such as trade associations and regulatory bodies. New Zealand overtakes Germany in UK wine sales HARPERS WINE & SPIRIT, UK 15.04.10: New Zealand is claiming to have overtaken sales of German wine in the UK when looking at country of origin percentage shares. It points to the latest Nielsen data (MAT end March 2010) which shows New Zealand has a 3.3% share of the UK off-trade market and overtaken Germany for the first time. New Zealand's value share shows a MAT growth of 4.6% of country of origin share up over 1% since December 2009. This makes it the fastest growing country of origin showing volume gains of up 57% with an average retail price at £6.05 per bottle. David Cox, New Zealand Winegrowers European director said: "Whilst I am aware that some discount price activity has influenced some aspects of this fantastic performance, nonetheless, our continued value growth and our high average retail price, which has actually grown for red wines, confirm the fact that UK consumers are continuing their affection and loyalty to the incredibly interesting wines that are being made from New Zealand". http://www.harpers.co.uk/news/news-headlines/8926-new-zealand-overtakes-germany-inuk-wine-sales.html Winemaker Constellation Brands posts 4Q loss THE ASSOCIATES PRESS, UK 10.04.10: Constellation Brands, which markets Mondavi wine, Svedka vodka and Corona beer, posted a $51 million loss in the fiscal fourth quarter on slumping sales on wine, spirits and beer.Without one-time items, the results still beat Wall Street forecasts. The company said Friday it lost the equivalent of 23 cents per share in the quarter ended Feb. 28. That compared with a loss of $406.8 million, or $1.88 cents per share, a year Critical Publics | EDOAO Page 10 of 26 Global Wine Trends 16/04/2010 Weekly Update earlier. Sales fell 3.6 percent to $708.7 million from $735.1 million. Excluding one-time costs, Constellation says it earned 27 cents a share. That is 3 cents a share better than average Wall Street estimates. http://www.google.com/hostednews/ap/article/ALeqM5jA__fIrGYUQDYvJ554a4zyycpBNQD9 EVHKTG1 Oyster Bay Vineyards Faces Loss as N.Z. Grape Prices Decline BLOOMBERG, USA 15.04.10: Oyster Bay Marlborough Vineyards, a New Zealand producer of Sauvignon Blanc grapes, is in talks with its bankers as it forecasts a full-year loss because of slumping prices. The company, whose grapes are sold to Delegat’s Group Ltd. to make its Oyster Bay wine, is seeking a waiver from its lenders because the loss may cause it to breach the terms of its loan agreements, it said in a statement to the stock exchange. A “supply imbalance” is having a negative impact on prices being offered by wineries, it said. New Zealand grape growers are cutting output of all varieties including Sauvignon Blanc, the country’s biggest wine export, to maintain quality and reduce supplies as demand slows. The 2010 harvest, which is under way in the South Pacific nation, may drop as much as 20,000 tons from 285,000 tons last year, New Zealand Winegrowers said in February. The industry has encouraged growers to produce less because the key element to New Zealand’s export success is quality rather than quantity, Philip Gregan, chief executive of New Zealand Winegrowers, said in a statement on Feb. 24. Still, prices in some regions are under pressure. … http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ae6clFIdOAvM American wineries up, sales flat JANCIS ROBINSON, UK 13.04.10: Wines & Vines magazine, based in California, reports that the number of North American wineries grew by 361 in the last year, and by 1,961 since 2005 impressive growth, indeed, for a continent without a long tradition of winemaking or indeed wine consumption. According to the magazine, there were 7,011 wineries in the US, Canada and Mexico at the close of 2009, 6,589 of them in the US and 3,115 in California. The significant growth by percentage in US wineries since 2005 came from such emerging states as Iowa (from 34 wineries to 81), Kentucky (21 to 48), North Carolina (53 to 109) and Oklahoma (21 to 59). … Isn't this is a sign of an evolving wine-drinking nation? As for sales outside the United States, in 2009 US wine exports, of which 90% come from California, which exports about 20% of all production, fell 9.5% in value to $911.8 million and 14.9% by volume to 417.9 million litres, or 46.4 million cases. Nearly 42% of these exports were shipped to the European Union. Volume shipments to the EU fell by 21% to $380 million in 2009 with sales to the EU by value falling 22%, due in part to the continuing strategy of producers exporting bulk wine for bottling overseas to save the Critical Publics | EDOAO Page 11 of 26 Global Wine Trends 16/04/2010 Weekly Update transportation costs of shipping bottles and other packaging. The next top markets were: Canada, $242 million; Japan, $79 million; Hong Kong, $47 million; and China, $36 million. California's man in the UK John McLaren commented, '2009 was a tough year in an already highly competitive UK wine market, with pressure on prices, reductions in stock holdings, and cutbacks in the number of wine offerings occurring in all sectors. Duty increases exacerbated the situation. But despite all challenges, California, because of its adaptability and pragmatism, held up well and maintained the number two slot [after Australia by volume].' http://www.jancisrobinson.com/articles/a201004121.html Oddbins bounces back with double-digit rise in sales HARPERS, UK 09.04.10: Oddbins has released a strong set of first quarter figures which show double-digit retail sales growth over the last 10 weeks. Simon Baile, co-owner and managing director, said footfall was up 5% and average basket price sales were up 8%. Its online sales were even more striking up 38% with strong expectations that this could rise to 50% when the site is relaunched later in 2010. “We are seeing a significant increase in online activity as Oddbins.com becomes more focused and more specialized in the products it offers and we see this as a unique proposition in the marketplace,” said Baile. In a statement Oddbins said: "It seems all too recent that the air was thick with gloomy predictions about the imminent demise of Oddbins and journalists were sounding the death knell for High Street wine retail. Consumers didn't know which off-licence chains had closed and which ones were still open..... Over the past 18 months Oddbins said it has concentrated on buying an increasing number of wines from smaller, family-oriented producers, an approach Baile attributed to some of its new success and is in contrast, it stressed to what is going on in the rest of the trade. … The last 18 months has also seen and extensive review of its French, Spanish, Italian, Australian and New Zealand ranges bringing in a greater number of parcels and wines made by smaller independent producers. … Looking ahead Baile said: “We are increasingly excited about the opportunity which now exists in the UK independent trade and see Oddbins as the leading light of High Street wine retail. The strategy for 2010 onwards will continually focus on small growers and the quality of the product. We see all the staff in Oddbins as an integral part of the company’s future success and firmly believe that passion and integrity in everything we do, both now and in the future, are essential to Oddbins’ continued growth.” http://www.harpers.co.uk/news/news-headlines/8909-oddbins-bounces-back-with-doubledigit-rise-in-sales.html Fine Wine Brings Cheer to LVMH THE WALL STREET JOURNAL BLOG, USA 15.04.10: Louis Vuitton Moet Hennessy (LVMH), the handbags to brandy conglomerate run by French tycoon Bernard Arnault published a forecast-beating 13% rise in comparable sales for Critical Publics | EDOAO Page 12 of 26 Global Wine Trends 16/04/2010 Weekly Update the first quarter this morning. Shares surged on the news rising to 92.36 euros as investors saw it as further evidence of a recovery in the sector. … LVMH owns 22 wine and spirit brands, including Champagne makers Dom Perignon, Moët & Chandon and Veuve Clicquot as well as Krug which, having seen their sales hammered by the recession, have now turned the corner benefiting from a renewal in orders from distributors.The watches and jewellery division, which includes the TAG Heuer, Hublot, Zenith, and Dior brands, also grew 34% on the back of an improvement in consumer spending and demand for distributors replenishing their stocks. ... http://blogs.wsj.com/source/2010/04/13/fine-wine-brings-cheer-to-lvmh/ Washington State Wants Wine Tourists WINE SPECTATOR, USA 13.04.10: Leading wine industry figures in Washington state are pushing for more fine dining and lodging options in the Columbia Valley, hoping to attract more visitors to the heart of Washington's wine country. It's been a dilemma for Washington for years. Napa and Sonoma lie not far north of San Francisco, Oregon's Willamette Valley runs south of Portland. But Washington's leading wine regions lie on the far side of the Cascade mountains from Seattle. Richland, in the Columbia Valley, is about a three-hour drive from Seattle across the sometimes-snowy Snoqualmie Pass, while Walla Walla is about four hours away. To counter the lack of tourist traffic, many vintners have opened up satellite tasting rooms in Woodinville and other areas around Seattle. The head of the state's largest producer recently argued that Washington needs an "explosion" of new fine dining and lodging to catch up with Napa, Sonoma, Willamette and the great European viticulture regions as a wine tourism destination. Ted Baseler, president and CEO of Ste. Michelle Wine Estates, also believes Yakima Valley, a produce-growing powerhouse, needs to develop agricultural tourism to draw visitors interested in the farm-to-table movement. "No doubt we're moving in a positive direction," said Baseler, citing facilities such as the fourroom lodge at Desert Wind Winery in Prosser. "But after 25 years you'd like to see a faster pace of development." Ideally, Baseler hopes to see a destination resort or golf-oriented business center built somewhere between Yakima and Walla Walla, like the Silverado Resort in the Napa Valley or the new Allison Inn & Spa in the Willamette Valley. That might draw more traffic to Ste. Michelle's Columbia Crest winery, located along the Columbia River about 30 minutes south of Prosser. Plenty of others think more wine tourism would boost sales of Washington wines. "From a profitability standpoint, it's probably one of the single most important things that could happen, especially for small wineries," said John Bookwalter of Bookwalter Winery. In 2003, he opened a wine bar at his Richland facility, featuring light food and live music. There are only a few wine-oriented venues like that in the Yakima Valley; Walla Walla has richer offerings. Deb Heintz, executive director of the Prosser Economic Development Association, says that Prosser, in the middle of the Yakima Valley, has begun offering more wine tourism attractions. Two high-end lodging projects, however, are on hold until the economy improves. Vintner's Village, a cluster of 14 wineries in Prosser, has been a success, and an adjacent 17-acre Vintners II is now being built, Heintz said. … http://www.winespectator.com/webfeature/show/id/42518 Critical Publics | EDOAO Page 13 of 26 Global Wine Trends 16/04/2010 Weekly Update Domestic Table Wines Grew By 5.3% WINES & VINES, USA 13.04.10: Domestic table wine sales through March 21 grew at a healthy 5.3% annual rate over the previous 52-week period, as reflected in the latest retail data from SymphonyIRI Group. The off-premise market for domestic wines totaled $4.5 billion. In contrast, imports edged up just 0.3% for the 52 weeks ending March 21, and dipped to a negative 0.8% in the most recent four weeks measured. Total imports were worth $1.3 billion. Winery sales directors who remember the early 2000s, when imports steadily ate away at U.S. market share, might be pleased to see that domestic table wines now account for 78% of the off-premise market in dollars (after dipping below 75% in 2005). Balancing this trend, however, are the weakened export figures for domestic wine recently reported by Wine Institute and others. Hot categories U.S. wine categories that are particularly hot this spring in terms of dollar growth are 3L bag-in-box wines, 500ml aseptic packs, and the most expensive price- point of $20-plus for traditional 750ml bottles. This last development may give hope to highend boutique wineries whose on-premise sales were particularly hard hit by the recession. A snapshot of four-week sales figures ending March 21 showed 2010 sales 5.1% ahead of 2009 numbers for the same period -- when the U.S. was still reeling from the financial crisis of late 2008 -- and February 2010 sales peaked higher than any month in 2009 except for the holiday periods of November and December. What wineries say Still, an increase of 5% at retail is not enough to restore the previous declines in sales for many vintners. Rather than stand by and wait for more increases through the three tiers, Alexandra Cohn, who co-owns JC Cellars in Oakland, Calif., is working hard on direct sales. An experiment in February using an outside telemarketing company to contact wine club members by phone was "hugely promising," so she hired a new direct-sales staff person to call current and former direct customers virtually full-time. "Sales have more than doubled for the year so far, compared to 2009," she said. The SymphonyIRI Group numbers for dollar sales trends were positive overall for California, Washington and Oregon in the thousands of food, drug and convenience stores across the U.S., where SymphonyIRI Group tabulates scan data. California table wine sales matched the average of 5.3% over 52 weeks; Washington managed 3.6% growth, and Oregon had the most positive sales trend, up 6.1%. For the most recent four-week period, however, the numbers had cooled slightly. "I think things have stopped getting worse," said David Graves, co-founder of Saintsbury Winery in California's Carneros district. … Washington and Oregon Washington's fastest growth of 19.7% over 52 weeks came from boxed wines at $2-plus per 750ml equivalent, but much higher priced wines did well also. The state's $11-$14.99 wines grew strongly, at 10.8% during the same period. The Critical Publics | EDOAO Page 14 of 26 Global Wine Trends 16/04/2010 Weekly Update hottest four-week trend was in the $15-$19.99 range, where sales increased 33.5% over the same four weeks in 2009. Second in sales growth for the four weeks was SymphonyIRI Group's most expensive table wine category, $20-plus, which grew 10.5% for Washington wines. Oregon showed a similar trend, with its lowest priced and highest priced wines both putting up good growth numbers. The state's least expensive bracket of any significant size, $5-$7.99, surged 26.3% over 52 weeks, while Oregon wines from $15-$19.99 and also $20-plus grew at healthy rates of nearly 8% each. By package size. A closer look at sales by package size indicates that 3L bag-in-box wines had the best growth rate of all significant-sized package categories. Domestic wines in 3-liter boxes grew 17.9% over 52 weeks, signaling again the public's acceptance of the non-traditional format, and most likely their continuing search for value. In smaller formats, wine sales in 500ml aseptic packs grew even faster, at 49.3% more dollars than the previous year, though still accounting for a tiny 0.3% of table wine sales. Table wine in 1-liter bottles also grew dramatically, at 29.2%. Remember the 375ml half-bottle? It was one of only two format categories to decrease in sales over 52 weeks, dropping by 2.8%, and plummeting at a rate of -8.9% over the most recent four weeks. … http://www.winesandvines.com/template.cfm?section=news&content=73146&htitle=Domes tic%20Table%20Wines%20Grew%20By%205.3%25 Large wineries continue fight against tax THE STANDAR, USA 14.04.10: Grape grower Phil Tregunno predicts his industry will shrink thanks to a pending new provincial tax. The mixed tender fruit farmer from Niagara-on-theLake wants to try and stop it. As of July 1, a 10% surtax will be slapped on Cellared in Canada (CIC) wines sold through about 300 privately-owned wine retail shops in Ontario. The $12 million generated from the new tax is designed to help the province's smaller boutique wineries that make strictly Vintners Quality Alliance products made of 100% Ontario fruit. Trouble is, Tregunno said CIC or blended wines are made of foreign and domestic grapes -- absorbing up about half the annual grape crop in the province or 30,000 tonnes of fruit. Because of the tax changes and future financial loss, several large wineries that own retail shops are not renewing many grower contracts and some are buying fewer grapes. Full of wine stock, Grimsbybased Andrew Peller Ltd. is cutting its grape purchases by 15% this year or 1,500 to 2,000 tonnes. That will put extra strain on already weary grape growers who have hit by two years of grape surpluses, Tregunno said during an editorial board meeting Monday afternoon. Tregunno called the tax punitive for growers and said many will not be able to keep their farms. "What we really need is good government policy," Tregunno said. "We don't want money from the government. We want policy that can make us thrive, and a policy that will turn us into a sustainable industry. We want to make a living. We want to sell grapes." … Vincor president Eric Morham and Peller president John Peller argue shipping in grapes allows them to produce wines of consistently good quality at a lower price that's competitive with imports. They say the grape pricing system in Ontario and quality make it tough to produce 100% Ontario wines under $10. Morham and Peller also say the tax discriminates against Ontario wineries. Instead they propose: A 1 to 2% tax on all wines -- both Ontario-made and imported -- sold in the province. Ad valorem tax -- or value based taxes. The more expensive the wine, the more it's taxed. Critical Publics | EDOAO Page 15 of 26 Global Wine Trends 16/04/2010 Weekly Update As part of the government's plan, the content rules in CIC have also been changed. While the amount of Ontario grapes in a winery's overall blended wine production was raised to 40% from 30%, by 2014 the domestic content will be eliminated. Last year, Vincor and Peller pulled out of the Wine Council of Ontario and created the Winery & Grower Alliance of Ontario, which also counts Magnotta, Kittling Ridge, Colio Estates Wines, Diamond Estates Wines & Spirits, Pelee Island Winery as members. The split was mainly due to the surtax. Zimmerman said the growers marketing board wants to work with large wineries. "Bottom line is we still should be sitting at the table to find a structure that puts more Ontario wine on the shelf at the LCBO and benefits these companies because they do buy a lot of grapes. We do want to work with them." http://www.wineindustryinsight.com/RSS//index.php/hop/latest/large-wineries-continuefight-against-tax-st-catharines-standard/22613 Wine Domain Catalysts Watch This section records the most important articles written by those widely considered to be thought experts in the wine domain. These opinions are not only a valuable source of information but also provide important indications for current and evolving trends in the wine domain. Basset - world's best at last JANCIS ROBINSON, UK 16.04.10: Yesterday's final of the 13th World’s Best Sommelier competition in Santiago de Chile was won, at the sixth attempt, by Gérard Basset representing the UK. French-born Basset is one of the wine world's marathon men. With great determination and an enormous amount of work, he has managed the rare feat of passing both Master Sommelier and Master of Wine exams. He was already the only person alive to have achieved both of these titles and a Wine MBA from Bordeaux University. He has been competing in sommelier competitions at international level for years. This was the sixth time he had participated in the World's Best Sommelier competition, the fourth time he reached the final. And, at last, he has triumphed. Very, very well done, Gérard! … http://www.jancisrobinson.com/articles/a20100416.html Gordon Ramsay's wise words for the wine bluffs THE DAILY TELEGRAPH, UK 10.04.10: I once interviewed Gordon Ramsay, who confessed that the sort of diner who most irked him was the man (apparently, it was always a man) who made a great show of picking an expensive bottle of wine, then performed the whole charade of wafting the glass under his nose and sluicing the wine around his mouth, before saying it would do.Ramsay said such people were invariably morons who wouldn't spot a corked bottle if it was thrust up their fundament. Truly cultivated folk, he insisted, would consult the sommelier about the wine, as Critical Publics | EDOAO Page 16 of 26 Global Wine Trends 16/04/2010 Weekly Update it was "their bloody job" to know what would go best with your meal. Will they let me adopt Joanna Lumley? I have followed Ramsay's advice ever since, giving wine waiters a vague sense of my refinement – "red, soft, fruity, southern and lots of it" – and am rarely disappointed. But a nation famed for its menfolk's unwillingness to ask road directions is reluctant to follow my example. As Jilly Goolden said last week, commenting on a survey of wine drinkers carried out for a firm called Cortexica, "we are a nation who think we know a lot about wine, but the research reveals that we actually just bluff our way through restaurant lists". No wonder so many lost and misdirected drinkers end up in the vino equivalent of Milton Keynes. Or, as a friend finally confessed about the £30 bottle of grot he forced on our table: "It's just Blue Nun with a pretty label." http://www.telegraph.co.uk/comment/columnists/rowanpelling/7575717/Gordon-Ramsayswise-words-for-the-wine-bluffs.html Scientific Developments & Technological Breakthroughs Watch This section captures the developments in the scientific research landscape in terms of technological breakthroughs and emerging research covering both R&D from companies but also research from academia and institutional bodies. These are essential elements of future trends or cumulatively combined indicators of future market trends and consumer awareness as well as industry practice development. North America strengthens wine research and development THE DRINKS BUSINESS, USA 14.04.10: In San Francisco, a new Wine Centre for Wine Education and Events opens this weekend, while in Canada, the creation of a grape and wine research centre network has linked research institutions from opposite sides of the country. In Ontario, Brock University’s Cool Climate Oenology & Viticulture Institute has joined forces with the Pacific Agri-Food Research Centre in British Columbia to form the PARC-CCOVI Wine Grape Research network. The creation of the network is thought to advance Canada's growing wine industry, and enhances the federal government's support of the trade thanks to its recent funding contriubtion through its Developing Innovative AgriProducts Programme. Speaking of the PARC-CCOVI Wine Grape Research, Pat Bowen at PARC said to Wines & Vines: "This agreement is a first for Canada and will strengthen cooperation between researchers in Ontario and British Columbia, which in turn will advance the grape and wine industry.”Founders of the network hope that the network will soon include other provinces, such as Nova Scotia. Meanwhile in California, San Francisco's first ever full-time wine centre will open this weekend. The San Francisco Wine Centre will provide a facility for events and wine education. Classes at the centre will cover a range of topics from regional analysis to designing your dream cellar. The centre has appointed Catherine Falls as its director of education, one of the few female master sommeliers in the world. The launch of the Californian centre comes hot on the heels of the closure of COPIA in Napa, which once had designs on opening a second branch in San Critical Publics | EDOAO Page 17 of 26 Global Wine Trends 16/04/2010 Weekly Update Francisco, according to winebusiness.com. http://www.thedrinksbusiness.com/index.php?option=com_content&task=view&id=11090& Itemid=66 Wines from Greece Publicity Monitor This section presents all international publicity relating to wines from Greece. Greek Wines Are No Longer a Tragedy: Here Are Five That Are Hard to Pronounce, Easy to Drink VILLAGE VOICE BLOG, USA 13.04.10: Most people's first experience with Greek wine is piney, syrupy retsina -- that country white so ancient even Homer himself may have sipped it while composing his epics (poetry and booze being the classic combo that it is). But the cradle of winemaking civilization is now turning out wines that don't require a stiff ouzo chaser. A recent tasting of several Greek wines found good value bottlings that are easy to drink, if difficult to pronounce. Here were five standouts: Domaine Porto Carras Limnio 2007 ($14) Made from the Limnio grape, the wine is made on the hillsides of Mount Meliton in Macedonia, near Turkey, and is certified organic. Reminiscent of a Pinot Noir with red fruit, clay notes, and a rusty color, you can find it on wine lists at Kefi and The Hideaway. Harlaftis White 2009 ($12) This crisp white is made from Savatiano, the grape used to make retsina. It's clear in color, with great acidity and a saline minerality to it. Produced near Athens, the wines are pretty much organic, but the winery is too small to invest in the cost of certification. Sip it at Pera Mediterranean Brasserie. Gai'a Assyrtiko Wild Ferment 2009 ($26) Pronounced yeai-ah, it's probably the only naturally fermented wine you're going to find from Greece. Based out of Santorini, winemaker Yiannis Paraskevopoulos is one of the most acclaimed in the country. The Assyrtiko grape, indigenous to the region, is known for good acidity and the ability to age. The wine is pretty, floral, and a little wild. Look for it on the lists at Molyvos and wd~50. Gai'a Estate Red 2006 ($45) Made from 100 percent Agiorgitiko (Ai-your-yee-tee-ko), the second most planted grape in Greece, this full-bodied red is full of forest fruit and moss, but could probably use a little more time in the bottle. Bar Boulud and Porter House stock it -- proving Greek wines don't only pair with Greek food. Domaine Spiropoulos Ode Panos NV ($21) Critical Publics | EDOAO Page 18 of 26 Global Wine Trends 16/04/2010 Weekly Update If you like your sparklers full of yeasty breadiness, then these bubbles are for you. This 100percent Moschofilero (Mo-sko-fee-le-ro) is full of aromatic notes like candied fruit and kiwi. Made in the Peloponnese, it's one of the first Greek wines to receive organic certification from the USDA. Have a glass at Snack Taverna or Okeanos in Park Slope. http://blogs.villagevoice.com/forkintheroad/archives/2010/04/greek_wines.php A rare value chardonnay from Burgundy THE GLOBE AND THE MAIL, USA 13.04.10: Greek wine – especially Greek red wine – gets scant attention in this country, sometimes with good reason. But an impressive one, Skouras Saint George 2007 ($16.95, No. 162321), was released last week through Vintages stores in Ontario. Saint George is the alternative name for the ancient red grape aghiorghitiko, which can be coaxed into a variety of styles, from light rosés to full-bodied reds. This one is medium full-bodied, dark and reminiscent of sweet black-skinned fruits and licorice (think black wine gums). It has a firm spine of acidity and there's even a dusting of herbs here. I could see it pairing well with a variety of Greek dishes and lots of vegetarian fare. http://www.theglobeandmail.com/life/food-and-wine/coutez-chardonnay-fans-a-rare-valuefrom-burgundy-has-hit-the-march/article1529219/ Blogosphere Monitor In this section the most important blog entries for wine and Greek wine are recorded. Small Winery Marketing Rule #1: Know Thy Self FERMENTATION, USA 14.04.10: Late last month I appeared at a seminar at TASTE Washington in which I outlined for those in attendance, "THE TEN THINGS EVERY SMALL WINERY MUST KNOW TO MARKET IN TODAY'S WINE MARKETING UNIVERSE." This talk led to a blog post in which I briefly outlined those ten items on the list. Today's, and subsequent posts here at Fermentation, will delve deeper into each of the TEN THINGS that are critical for small and medium sized wineries to consider as they market their way into the 21st century and toward success RULE NUMBER ONE: KNOW THY SELF If you and every person that works for you can’t tell me why I’m better off buying your wine instead of your neighbor’s wine and if you can’t tell me what makes your winery unique and if you can’t do this in 30 seconds or less, then you are going to have a very hard time surviving in a marketing universe where you marketing efforts will be dominated by one-on-one conversations and small group conversation with folks that have been brought up to have short attention spans. This is the most fundamental marketing rule of our time and it is the most overlooked marketing rule of our time. The answer to what makes you unique and distinct from other 7000 wineries in America is going to be the foundation upon Critical Publics | EDOAO Page 19 of 26 Global Wine Trends 16/04/2010 Weekly Update which you build your brand, build a following, and build every communication tool you use to get the attention of consumers, accounts and the media. Do the exercise if you haven’t already: In 100 words or less: What does your winery/brand stand for? Figure this out before anything else. In some corners of the marketing world, this is called your "Brand Proposition". Some call it "positioning". Other marketers with a more activist mindset refer to this essential definition of your company's utility by asking, "What do you stand for"? Ideally, that idea that defines your brand and products and services will be unique from your competitors. … http://www.fermentation.typepad.com/ Small Winery Marketing Rule #1: Know Thy Self FERMENTATION, USA 14.04.10: Recently in Washington State at TASTE Washington I gave a talk on ""THE TEN THINGS EVERY SMALL WINERY MUST KNOW TO MARKET IN TODAY'S WINE MARKETING UNIVERSE." That talk was summarized in an earlier blog post here at FERMENTATION. This is the second post in a series that expands on that earlier post. RULE # 2: LISTEN TO THE CONVERSATION The single biggest change in wine marketing that has occurred in the past 20 years is that consumers are talking about wine—and they are doing it publicly and for the whole world, including winemakers, to see. What this means is that by listening to these conversations about what wines they like, how they like to drink it, where they like to drink it, what they like to pay, etc, etc, you have the opportunity to learn precisely what you need to do to attract consumers to your wines. Listen to these conversation. Read the on-line wine bulletin boards like eRobertParker and WineBerserkers, scan the reviews at CellarTracker and Vinfolio, read comments on blogs, observe discussions taking place on Facebook and Twitter, scan Yelp reviews. You may not agree with or like what you read but you will gain an advantage that winemakers 20 years ago did not have: regular access to the intimate and revealing thoughts of your customer. Consider the impact of not taking advantage of the public conversations that are taking place on-line. First consider not listening to what consumers are saying about YOUR wines. Consider the impact of not reading a spat of negative comments about customer experiences in your tasting room. Visitors rarely express their disappointment directly to the folks pouring the wine behind your tasting bar. But they will slam you on Yelp, via Twitter, in discussion forums at TripAdvisor and at other venues. Reading carefully what they have to say offers the opportunity to fix what might be a problem costing you thousands of dollars is lost revenue. …. http://www.fermentation.typepad.com/ Critical Publics | EDOAO Page 20 of 26 Global Wine Trends 16/04/2010 Weekly Update Tony Soter sheds some weight [carbon footprint] DR VINO, USA 15.04.10: Tony Soter shed some unnecessary weight from one year to the next–in his bottles. The Oregon vintner shipped his 2007 Pinot Noirs in bottles weighing 900g, more than the 750g of wine in the bottle. But for his 2008s, which are being released soon, the bottles will weigh 600g (both bottles, pictured right). Needless to say, the reduced packaging mass greatly reduces the carbon footprint of the wine. “The time has passed that you can try to impress people with the substance of the bottle as opposed to what is in the bottle,” he said. … http://www.drvino.com/ And so it begins… Jay McInerney, wealth porn, and the WSJ DR VINO, USA 12.04.10: The Wall Street Journal formally introduced their new duo of wine columnists, Jay McInerney and Lettie Teague, on Saturday (even though rumors had been flying on the internets for months). They replace John Brecher and Dorothy Gaiter who left the paper in December after writing the column for 12 years. McInerney files his first column and it is about Prosecco rosé Champagne. Not only does it contain a sidebar with $635 of wine recommendations, but the piece also compares Dom Pérignon to both the Porsche 911 Carrera and the 911 turbo! There’s talk of maxing out credit cards to buy bubbly! The piece also justifies the price of one bubbly by comparing it to the tasting menu at Joël Robuchon in Las Vegas! The only place he really leaves the reader hanging is whether the pink bubblies taste better out of a white gold encrusted Jerobaum. He has met Hugh Hefner, natch. And he just saw “mature” Julianne Moore on the street and the rosé Champagne made him think of her again! … http://www.drvino.com/ Critical Publics | EDOAO Page 21 of 26 Global Wine Trends 16/04/2010 Weekly Update Peripheral Domains Intelligence This section covers developments from associated domains such as Greek food, taste and culinary trends, as well as any other significant information that has an impact on or derives from the global wine domain. British wine critics turn their noses up at new autobahn THE GUARDIAN, UK 08.04.10: A group of prominent British wine critics has joined the fight to reverse the construction of a four-lane motorway which threatens to destroy the world's best riesling vineyards. Veteran champions of riesling such as Hugh Johnson, author of The World Atlas of Wine, and Jancis Robinson, who have helped to give the white wine an international standing, are calling on German politicians to halt construction at the site along the Mosel river which they say could ruin the region's unique microclimate, which is highly sensitive to change. The future of world-renowned vineyards such as Wehlen, Graach, Bernkastel and Zeltingen, famed for their intense but light wines, is at stake if the project continues to build the motorway and accompanying 525ft high (160m) bridge which would span the Mosel river and connect two mountain ranges. Digging at the site has already begun.Vintners say the construction will damage the vines by blocking the sunlight and affecting the delicate system of water distribution. The Mosel valley is considered ideal for the late-ripening grape because its brittle slate slopes soak up the sun's warmth by day and release it by night. In a delicately-balanced system which has served the wine-growing region well for over 2,000 years, the slate stores moisture in winter while, in summer, it drips down the slope to vines.Robinson, who writes a popular wine column for the Financial Times and advises the Queen on the contents of her wine cellar, said the project threatened "one of the wine world's very few unique wines".She said: "The style of the Mosel riesling has an unparalleled delicacy and vibrancy and crucially each wine really does express exactly where it comes from – the essence of the place is in the bottle. We don't now want to be capturing the essence of four-lane autobahns, thank you very much."Hugh Johnson, the world's best-selling wine author whose Pocket Wine Book is published annually, said: "Those who advocate the construction of the highway say it will only affect 12km out of a 240km stretch but that bit that is under threat happens to be the plum on the cake, the best stretch."The whole of the Mosel has a style of lightness and intensity which suits the riesling grape incredibly well … it can come in at 8% alcohol but always has a wonderfully fresh flavour and a featheriness and delicacy that doesn't go to your head. And, unlike a burgundy or a bordeaux, it is impossible to imitate."Manfred Prüm of the Wehlener Sonnenuhr vineyard, whose wine sells for between £17.50 and £26 a bottle, says he, along with other local vintners, is fearful for the future quality of his wine and those of the region."We have a cultural heritage to protect which could be on the verge of being destroyed," said Prüm, 75, whose family has been cultivating wine along the Mosel river for several centuries. … Johnson has already gone head-to-head with the "vineyard minister" of the state of RhinelandPalatinate, who also happens to be the minister for transport, Hendrik Hering. In a letter to Johnson, Hering accused him of elitism and told him to concentrate on reporting on the highquality wines of the local vintners rather than "changes to the landscape". Critical Publics | EDOAO Page 22 of 26 Global Wine Trends 16/04/2010 Weekly Update "I sent him a complete snorter in response, I was so angry," Johnson said. Politicians and wine critics will come together on Sunday for a "protest wine-tasting" session at a Berlin restaurant, at which the wine experts will attempt to convince the politicians to do an about-turn. "I think it could well end in a punch-up," said Johnson. http://www.guardian.co.uk/world/2010/apr/08/wine-germany-riesling-autobahn A fashion duo dresses up a wine label FINANCIAL TIMES, UK 10.04.10: Napa Valley, the seat of California’s wine industry, is not exactly a fashion mecca. The pastoral towns dotted around the vineyards are more Buddh-ist than Burberry, more caps-’n’-culottes than Chanel. So slightly tipsy heads turned from cellars to catwalks when it was recently announced that Basso & Brooke, British designers known for their use of fabric decorated with pornographic prints, had been appointed “designers in residence” to Turning Leaf, E&J Gallo’s traditional wine brand. The partnership is the latest example of the hottest trend among young fashion houses: engaging in cross-industry collaborations to boost the bottom line. While it is not a huge conceptual leap to imagine why a fashion designer might be a good goto person for, say, a rug company, a hotel or even a car, a supermarket wine brand seems a particularly strained variety of mixing and matching. Admittedly, Basso & Brooke are not the first to venture into the bottle arena. Matthew Williamson has designed for Coca- Cola, Jade Jagger for Belvedere vodka, and Jean Paul Gaultier for Piper-Heidsieck champagne. Yet the relatively sober, non-bubbly wine industry, where even a minimalist label can seem radical, had until now not indulged in such flights of fancy, especially on this scale. As designers in residence (though they’re not moving to Napa; it’s an honorific), Basso & Brooke will create the wrapping for 2,000 bottles, curate a blog, design some limited-edition umbrellas and a retail installation for a London department store. Turning Leaf could use the help. “This isn’t seen as a fashionable wine, at least in the UK,” admitted Christopher Brooke. The winemakers clearly hope that working with Basso & Brooke will change all that. For their part, Brooke says, it’s more about profile-raising and “the press aspect than making it commercially available”. …. Subscription based Saving Salamanders May Mean Restricting Vineyards WINE SPECTATOR, USA Critical Publics | EDOAO Page 23 of 26 Global Wine Trends 16/04/2010 Weekly Update 09.04.10: In a move likely to affect vineyard development in Sonoma, San Luis Obispo and Santa Barbara counties, the California Fish and Game Commission voted last month to list the California tiger salamander as an endangered species under the California Endangered Species Act. The commission argued that although the salamander is already protected by federal endangered status in Sonoma and Santa Barbara counties, the existing federal regulations are inadequate to ensure its survival. The new ruling extends protection to several other counties where salamanders are found. What does this mean to California grapegrowers? It means development, including new plantings, could be limited. "If you want to change land use, you've got to prove there is no tiger salamander on the land," said Nick Frey, president of the Sonoma County Winegrape Commission. "You have expensive studies and permits to be done and potential mitigation. You are limited as to what you can do with your land." Under current federal protections, a grower risks a potential $50,000 fine and a year in jail for endangering a tiger salamander through plowing or planting. At the state commission hearing, Tim Schmelzer, who handles regulatory issues for the Wine Institute, spoke on behalf of a coalition of wine and building industry groups, arguing that the state has no conclusive evidence that the salamander's numbers are critical and its habitat in danger of total loss. The salamander spends much of its life underground, living in burrows, but comes up to breed in the ponds and pools that once abounded in California's Central Valley. Today, six distinct populations of tiger salamanders remain in California, but two populations in particular, located in Sonoma's Santa Rosa Plain and Santa Barbara County, are especially threatened and were listed as endangered by the U.S. Fish and Wildlife Commission in 2004. The salamander has been living in what is now California for millions of years, but much of its habitat has disappeared in just a few short decades, mostly due to urbanization and agricultural development. …. http://www.winespectator.com/webfeature/show/id/42509 Construction Continues for UC Davis' Showcase Winery WINES & VINES, USA 14.04.10: The new teaching winery now in the final stages of construction at the University of California, Davis, will be a vast improvement over the school’s present antiquated facility, and it will be far more than a modern science lab for students. It is being built as a site for research to raise wine quality, improve production processes and demonstrate and enhance techniques that will preserve resources, meet upcoming regulations -- and save money. It is also providing a vehicle for members of the wine community to demonstrate their appreciation for the school’s work, although the biggest plum remains unclaimed -- the name on the door. Andrew Waterhouse, chair of the Viticulture and Enology Department at UC Davis, recently gave Wines & Vines staff an intimate look at the Critical Publics | EDOAO Page 24 of 26 Global Wine Trends 16/04/2010 Weekly Update new facility. The winery under construction is part of the hands-on side of the Robert Mondavi Institute of Wine and Food Science; classrooms and offices have already been built and are in use. The winery shares a building with a teaching brewery funded by Anheuser-Busch and food sciences laboratories including a dairy and new artisanal cheesemaking operations. The whole facility is designed to meet the tough Platinum LEED classification, the highest standard bestowed by the United States Green Building Council. … http://www.winesandvines.com/template.cfm?section=news&content=73196&htitle=Constr uction%20Continues%20for%20UC%20Davis%27%20Showcase%20Winery South Africa launches sustainability seal HARPERS, UK 12.04.10: The South African wine industry claims to have launched the world's first sustainability seal that guarantees eco-friendly production and bottle provenance. Intended for bottled wines only, the seal which is issued by the Wine and Spirit Board has a tracking system that can now trace bottle contents back to source at every stage of the supply chain. The seal is a continuation of the local wine industry’s pioneering approach to sustainable wine growing and winemaking and further aims to confirm the integrity of production by giving each seal a unique number, through which the wine's provenance can be tracked from vine to bottle. The seal is the result of collaboration between the Wine & Spirits Board, IPW, as well as the Biodiversity & Wine Initiative (BWI) and Wines of South Africa (WOSA) with the generic marketing body responsible for the worldwide launch of the concept as part of its Brand South Africa campaign. Effective from 2010, the voluntary system is available to those wineries to have passed the accreditation of the Integrated Production of Wine (IPW) set of sustainable principles, at farm, winery and bottling levels. Wines of South Africa, chief executive officer, Sue Birch said it is expected to give another boost to the country's already widely recognised international lead in the production integrity of wine. "Although other countries are introducing similar initiatives on a limited scale, at this stage South Africa is the only country to have the means to implement and certify the concept across the entire wine industry. Regular spotchecks by independent auditors will be conducted to ensure guidelines are complied with at all levels. http://www.harpers.co.uk/news/news-headlines/8911-south-africa-launches-sustainabilityseal.html Global Sustaining & Emerging Trends Digest This section presents those global, macro and micro trends that affect or potentially affect the wine domain. Comprehensive fusion and distillation of the above publicity parathesis concludes to the most important aspects as those appear in the current setting. Wine: Natural isn't perfect THE WASHINGTON POST, USA 14.04.10: Wine is not immune to political correctness or polemics. (Readers who merely desire Critical Publics | EDOAO Page 25 of 26 Global Wine Trends 16/04/2010 Weekly Update a simple glass of fermented grape juice to enjoy with dinner might want to turn to the editorial page now.) The latest battlefront in wine is whether that juice you're drinking is "natural." The natural-wine movement has been sweeping France for a few years now, with stylishly dressed millennials in trendy wine bars in affluent urban neighborhoods celebrating the peasant vignerons who defy globalization in defense of terroir. There's a Gallic defiance of the European Union's standardization of regulations, which is seen as undermining France's strict defense of tradition and quality as the homeland of fine wine. And there's more than a soupçon of resentment against New World (read "American") wines and their flirty fruitiness that renders them wines of the masses rather than wines of character. The movement has reached the United States, with wine bars in San Francisco and New York featuring natural wines from France, Italy, Spain and even California. Importers such as Louis/Dressner Selections and Jenny & François Selections in New York and Williams Corner Wine, based in Charlottesville, specialize in natural wines. Simply put, natural wine is an extension of organic and biodynamic viticulture, two approaches to winemaking that focus on the vineyard. The natural-wine movement pays attention to winery practices as well, rejecting cultivated yeasts in favor of those indigenous to the vineyard or winery. It rejects the practice of adding sugar or acid to correct balance or enzymes to aid fermentation, as well as other manipulations such as filtering and fining the wine to remove potential impurities (and flavor). Natural wine, its proponents argue, is a true wine of place. "Enologists at UC-Davis set the standard of what wine should be, and they defined it by identifying faults and how to correct them," said Nicolas Mestre of Williams Corner Wine. … http://www.washingtonpost.com/wpdyn/content/story/2010/04/13/ST2010041302620.html Critical Publics | EDOAO Page 26 of 26