WEEKLY WORLDWIDE WINE REPORT II

Wine Real Estate

Erin Becker, our Research and Innovation Consultant prepared the global review of wine news around the world.

Weekly Worldwide Wine Report

Week of: 25 July to 29 July

—- Business
Foster’s does not rule out takeover talks with SABMiller

http://uk.news.yahoo.com/fosters-says-stabilises-market-share-sees-growth-043510952.html

Australian brew company Foster’s didn’t rule out selling to SABMiller, although they did say the offer of $10.4 billion was too low to even discuss. CEO John Pollaers rejected SABMiller’s initial offer and instead says Foster’s is focusing on restoring their position in a declining Australian beer market.

Napa-based ‘flash’ website sells world’s wines at discount

http://napavalleyregister.com/star/business/napa-based-flash-website-sells-world-s-wines-at-discount/article_10d45d82-b8cd-11e0-9682-001cc4c03286.html

Cory Wagner of Napa founded Last Bottle, a website that sells wineries’ excess wines at steep discounts in 24 hours or less, and says the purpose of his company is “moving large amounts of wine, quietly.”

New York’s wine industry growing, but faces challenges

http://www.democratandchronicle.com/article/20110726/NEWS01/107260335/New-York-s-wine-industry-growing-faces-challenges?odyssey=tab|topnews|text|News

Despite rapid growth and a solid #2 placement in wine-producing states (with California far ahead, producing 90% of US wine), producers believe business can improve, and are looking for ways to enhance their image and garner national and international respect. They are also lobbying to make it legal to sell wine in grocery stores in New York.

New reign for UK vineyards

http://www.jancisrobinson.com/articles/a201107252.html

The Duchess of Cornwall has been named president of the United Kingdom Vineyards Association, and will serve as the new figurehead of UK wine.

Who will shape wine opinion now?

http://www.winemag.co.za/article/who-will-shape-wine-opinion-now-2011-07-28

With Wine magazine closing, Christian Edes ponders what sources will become the new tastemakers in the South African wine world.

—–Winemaking
Mollydooker withdraws ‘smashed wine’ press release

http://www.decanter.com/news/wine-news/529042/mollydooker-withdraws-smashed-wine-press-release?utm_medium=twitter&utm_source=twitterfeed

Mollydooker withdrew its press release, which had said over $1 million of wine had been smashed in a forklift accident, saying a revised release will be issued later.

Winery debate blends several different issues

http://napavalleyregister.com/calistogan/news/local/winery-debate-blends-several-different-issues/article_41c26d8e-b892-11e0-806d-001cc4c002e0.html

Calistoga in Napa Valley is considering requiring that 75 perfect of the grapes used by a winery must be grown in Napa County, which would echo the area’s decades-old Winery Definition Ordinance.

Low Port yields expected after hail, sunburn

http://www.decanter.com/news/wine-news/529046/low-port-yields-expected-after-hail-sunburn

After two months of hail and extreme heat in the Douro Valley, port producers report damaged berries and sunburned plants. They say that though yield will be down, the quality of what is produced should remain the same.

An American Hears the Call of Burgundy

http://www.nytimes.com/2011/07/27/dining/with-maison-ilan-an-american-winemaker-invades-burgundy.html?_r=1&ref=global-home

Ray Walker is the first American (and African-American) to make Le Chambertin, although he had never drunk one before making his own. With small finances, no connections and very little experience, he successfully began a small winemaking business, Maison Ilan, in the Cote de Nuits. The notoriously insular Burgundy community has been welcoming and helpful to this passionate, self-taught outsider.

—–Consumer
Chateau d’Yquem bottle fetches £75,000

http://www.decanter.com/news/wine-news/529045/chateau-d-yquem-bottle-fetches-75-000

Christian Vanneque, a French collector and restaurateur, bought the 200-year-old Sauternes, one of the most famous “Comet vintages” (harvested in the year of the Great Comet of 1811), from the Antique Wine Company. The bottle is now the most expensive white wine in the world.

Wine Matches Beer in U.S. Drinker’s Preferences This Year

http://www.gallup.com/poll/148676/Wine-Matches-Beer-Drinkers-Preferences-Year.aspx

Wine and beer tied in preference rating among US drinkers this year, though beer continued to remain more popular among lower-income crowds.

Electronic tongue created to be wine connoisseur

http://www.wired.co.uk/news/archive/2011-07/29/electronic-wine-tongue

Researchers in the Group of Sensors and Biosensors at the Universtat Autonoma de Barcelona created an electronic tongue that can differentiate between wines by analyzing the sugar content. It also has the ability to learn and train to identify new properties.

Why Cheap Wine Doesn’t Mean Bad Wine

http://www.foxbusiness.com/personal-finance/2011/07/29/why-cheap-wine-doesnt-mean-bad-wine/

Many companies are hiring sommeliers to train their employees in how to make good wine selections when dining out with clients, partially to keep them from purchasing the most expensive wine on the company credit card.

—–Events
The ‘Los Angeles Times and Food & Wine’s The Taste’ Announces Its Lineup of Industry Panels, Tastemaker Interviews and Culinary Talks

http://www.latimes.com/about/mediagroup/press/releases/la-mediagroup-2011-0729,0,2250208.htmlstory

The September series of events will include LA Times food editor Russ Parsons, wine experts Belinda Chang and Justin Warner, chefs Roy Choi, Sang Yoon, Jet Tila and Mario Alberto, among others.

Atlantic City Food and Wine Festival

http://gloucestertownship.patch.com/articles/great-escape-atlantic-city-food-and-wine-festival

This festival will be held on the coast in New Jersey this weekend, and its hosts include the Food Network, Caesar’s Atlantic City, Harrah’s Resort, Bally’s and Showboat.

—–Blogosphere
2011 Wine Bloggers Conference: Sponsor Programming Heavy, Relevant Content Light

http://www.rjonwine.com/wine-seminars/2011-wine-bloggers-conference-wbc11/

Richard Jennings’ critique of the Virginia wine conference questions the percent of the program spent promoting sponsor wines, and starts a discussion on the merits and flaws of the current conference format.

Top 10 Takeaways From the Wine Bloggers Conference

http://www.huffingtonpost.com/mary-orlin/top-10-takeaways-from-the_b_911947.html

Mary Orlin of the Huffington Post shares what she learned at the VA conference, including that Viognier is the grape of choice for the best VA wines, and that Twitter is perhaps becoming useless in the wine blogging world.

—- Business

Treasury wine appeal wanes as strong Aussie threatens $585 mil hit

http://www.theaustralian.com.au/business/news/treasury-wine-appeal-wanes-as-strong-aussie-threatens-585m-hit/story-e6frg906-1226088407912

The strong Australian dollar may cause Treasury Wine Estates to lower the stated book value of its assets by up to $585 million, dramatically lessening to price potential buyers would be prepared to pay for the company. Foster’s group declared that for every 1 cent rise in the Australian dollar against the pound or the US dollar, the company’s assets fell by $45 million.

US winemakers see trouble fermenting in Ontario election

http://www.theglobeandmail.com/report-on-business/us-wine-makers-see-trouble-fermenting-in-ontario-election/article2088026/

US vintners are closely watching the Canada election for signs that politicians would give Canadian vintners an unfair advantage on foreign rivals with alcohol sale reform. Conservative candidate Tim Hudak would increase market access for wines made from 100% Ontario grapes.

India inches toward lower taxation on alcohol

http://www.decanter.com/news/wine-news/528991/india-inches-towards-lower-taxation-on-alcohol

India and the EU are entering the last stages of negotiating a free trade agreement that would reduce India’s high tariffs on imported alcohol.

Jago: Sub-£5 increasingly difficult

http://www.thedrinksbusiness.com/2011/07/jago-sub-5-wine-increasingly-difficult/

Dan Jago, head of Tesco beer said that despite consumer demand, the number of wines in the under-£5 price range is getting smaller. He still wants to use promotions to introduce new consumers to wine, but they may be in the form of Clubcard points, rather than cheap prices.

France loses US market share but is most discussed online

http://www.decanter.com/news/wine-news/528987/france-loses-us-market-share-but-is-most-discussed-online

Over the last year, France’s share of the US market has fallen significantly, while Argentina, New Zealand, and Germany have gone up. Despite this, France continues to generate more online “buzz” and conversations than any other wine region. Chile, Argentina, Spain and Portugal also generate more buzz in proportion to their sales.

Bordeaux bubble unlikely to burst

http://www.thedrinksbusiness.com/2011/07/simon-staples-bordeaux-bubble-unlikely-to-burst/

Sim Staples, who is the sales and marketing director for Berry Bros & Rudd, spoke out in defense of high Bordeaux 2010 pricing at a recent tasting. When asked about the mass of UK consumers priced out of the market, Staples said, “That’s life.” Summary of price surge here

U.S., Mexico trucking agreement re-opens border trade

http://westernfarmpress.com/grapes/us-mexico-trucking-agreement-re-opens-border-trade

The agreement will re-open long-haul trucking between the U.S. and Mexico and should have a boosting effect on California agricultural exports. The U.S. hopes this will be followed by a decrease in grape tariffs in Mexico, which were increased from 0 to 45% in retaliation to the cancelation of a pilot program to allow Mexican trucks into the U.S.

Rexam looks for can openings in the wine industry

http://www.beveragedaily.com/Processing-Packaging/Rexam-looks-for-can-openings-in-the-wine-industry

Rexam believes that canned wine could be appealing to a younger crowd, especially for outdoor events. A UK survey of 1000 showed 58% of 18-34 year olds were keen on the idea.

—–Winemaking
Millions of California wine bottles now certified with SIP seal

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/07/07/prweb8537709.DTL

The SIP, or Sustainability in Practice seal, means that CA consumers can select wines made from grapes grown my eco-conscious, community-minded grape growers. The criteria addresses both human and natural resources.

2009 Pinot Noirs may be best yet in California

http://www.shankennewsdaily.com/index.php/2011/07/06/1086/californias-2009-pinot-noirs-might-be-best-ever-wine-spectator-says-2/

Wine Spectator is rating CA’s 2009 Pinot Noirs and, due to the near-perfect growing season of the 2009 year, more than 50% have already been ranked “outstanding.”

Napa Valley winemakers brace for climate change

http://www.bendbulletin.com/apps/pbcs.dll/article?AID=/20110706/NEWS0107/107060382/1159&nav_category=

Winemakers are increasingly monitoring for climate change, though Terry Hall, spokesman for a Napa Valley vintners group, emphasized that there is no indication that climate change has affected the area’s wine. Due to a geographical quirk, higher temperatures in the regional could eventually make Napa Valley cooler, affecting grape growth.

5 ways to improve California wine

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/03/FDR71K4B5H.DTL

John Bonné of the San Francisco Chronicle thinks CA vintners should: take white wine seriously; stop establishing so many American Viticultural Areas; “let the Pinot thing go”; redefine the estate; and simplify.

Natural winemakers should beware dogma

http://www.decanter.com/news/wine-news/528979/natural-winemakers-should-beware-dogma-jefford

Decanter columnist Andrew Jefford says natural winemakers should still use some sulphur dioxide. Decanter will feature a 6-page spread on natural wine in its September issue.

—- Consumer
Wine alcohol strength ‘systematically’ understated on labelling

http://www.guardian.co.uk/lifeandstyle/2011/jul/05/wine-alcohol-strength-understated

A study of 129,000 wines has revealed many vintners deliberately market wine as less alcoholic than it is; the average alcohol content was 13.6%, while the average reported strength was 13.1%. Bottles from Chile, Argentina and the US were the worst offenders.

Raymond Vineyards loves Raymonds; resveratrol good for sedentary people; more wine crime

http://www.winespectator.com/webfeature/show/id/45400

Anyone named Raymond can join a free club at Raymond Vineyards that gives them free wine tastings, a $1 half-bottle of Raymond Cabernet, and an invitation to a Raymond-only annual barbecue. An American journal published a study saying sedentary rats given resveratrol, a chemical in red wine, did not experience negative side effect likes their counterparts did; and the winery Terroir Al Limit in Spain was vandalized.

Best bets for boxed wine

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/03/FD3K1K4NQJ.DTL

The San Francisco Chronicle reviewed boxed wine. Whites fared better than reds, and recommended wines include: 2009 Big House Cardinal Zin Beastly Old Vines California Zinfandel; 2009 Black Box Central Coast Shiraz; 2010 La Petite Frog Coteaux du Languedoz Picpoul de Pinet; and 2010 Trinchero Family Estates Wine Cube California Sauvignon Blanc.

I don’t want to get involved; that’s why I drink rosé

http://www.winespectator.com/webfeature/show/id/45365

Wine Spectator columnist Matt Kramer defends the subtly and simplicity of this oft-chagrined wine, and especially recommends Spanish rosado made from the Grenache grape, and Italian rosés, as excellent wines for the summer.

Grape variety hits number 1 slot consumer wine choice

http://www.harpers.co.uk/news/news-headlines/10771-grape-variety-hits-no1-slot-in-consumer-wine-choice.html

For the first time in three years, grape variety is one of the first factors UK consumers use when purchasing a wine, according to a Wine Intelligence report. Shortly after the financial crisis, promotions had become more important than variety.

—–Events
National Wine Month UK 2012 to kick off with major event

http://www.harpers.co.uk/news/news-headlines/10733-national-wine-month-2012-to-kick-off-with-major-event.html

Ian Harris, chief executive of the Wine & Spirit Education trust, said the 2012 campaign would be launched at a stakeholder meeting later this month. A celebrity—not a wine personality—will “start the ball rolling earlier” to allow major retailers to plan ahead.

The men of Vinexpo, France’s biannual wine bonanza

http://www.blackbookmag.com/article/the-men-of-vinexpo-frances-biannual-wine-bonanza/26370

France just wrapped up the biannual Vinexpo, which is calling itself the world’s leading wine exhibition. There were 50,000 attendees. BlackBook interviews some notable attendees, including the mayor of Bordeaux, who, with Philippe Massol, is soon opening a wine culture and tourism center in his city.

—–Blogosphere
When a wine fails to age, who’s to blame?

http://www.drvino.com/2011/07/05/wine-synthetic-cork-age/

Robert Parker, leading US wine critic, suggested that synthetic cork producers could have liability issues if the closure is the cause of a wine failing to age. DrVino.com hosts a discussion on the matter.

Facebook campaign for natural cork reaches more than 50,000 fans

http://www.reuters.com/article/2011/07/07/idUS111064+07-Jul-2011+PRN20110707

Coverage of the 100% Cork campaign has also reached 60 million in circulation by the media. Campaign aims to education consumers about the benefits of natural corks.

Week of: 18 July to 22 July

—- Business
Napa Valley Wine Never Cheaper as Buyers Circle Foster’s Spinoff

http://www.bloomberg.com/news/2011-07-21/napa-valley-wine-never-cheaper-as-buyers-circle-foster-s-spinoff-real-m-a.html

Treasury Wine Estates Ltd. is selling at less than 80 cents on the dollar, and earnings have fallen in the past two years due to lower demand and the Australian dollar’s growth.

New website for English sparkling wine

http://www.decanter.com/news/wine-news/529034/new-website-for-english-sparkling-wine

Sparklingenglishwine.com was launched this week to showcase high-quality English sparkling wine. The site will vet producers through blind tastings, and will provide a place for smaller producers to market their wine without creating their own marketing team.

Bankers talk of farmland bubble, but jury still out

http://www.reuters.com/article/2011/07/21/us-usa-agriculture-farmland-idUSTRE76K6M120110721

As farmland values continue to soar, some bankers are worried a bubble similar to that of the 1980s could be forming. Yet, a healthy agriculture economy may signal this time is different.

South African wine in upmarket push

http://www.harpers.co.uk/news/news-headlines/10814-south-african-wine-in-upmarket-push.html

South Africa, in a new wine marketing initiative, wants to demonstrate the country’s quality and diversity of wines in the premium sector. The initiative includes a retail sampling promotion in various small chain restaurants, store and gastropubs, and will begin next week.

New Zealand vineland value drops 60%, but no takers

http://www.decanter.com/news/wine-news/529031/new-zealand-vineland-value-drops-60-but-no-takers

Though NZ vineyard prices have significantly fallen the last four years, the market remains stagnant, and some vineyards have been on the market for eight or more years.

—-Winemaking
Oops! Forklift smashes $1M worth of Australian wine

http://www.theolympian.com/2011/07/22/1733575/oops-forklift-smashes-1-million.html

Sparky Marquis of Mollydooker Wines is “gut-wrenched, shocked and numb” after losing more than $1 million of his Velvet Glove shiraz in a forklift accident that destroyed all but one of the 462 cases to be exported to the US. The wine was insured.

Jefford on Monday: Modesty and its Limits

http://www.decanter.com/news/blogs/expert/529013/jefford-on-monday-modesty-and-its-limits

Andrew Jefford, after visiting Clos de Tart and noting the vintner’s humility, reflects on how winemakers in places like Burgundy can rely on modesty, while developing vineyards in newer wine regions must have courage and determination.

San Francisco Wine School Approved by Society of Wine Educators

http://www.winebusiness.com/news/?go=getArticle&dataid=90493

The San Francisco Wine School (SFWS) was launched in the Bay Area by Master Sommelier David Glancy to help meet the growing demand for higher education in wine.

Million-acre Argentinean estate for sale, vine potential in doubt

http://www.decanter.com/news/wine-news/529023/million-acre-argentinian-estate-for-sale-vine-potential-in-doubt

Savills Estate Agents are offering the Estancia Punta del Agua in San Juan for £6 per acre, and with two rivers and 300 days of sunshine, government agronomists have said it would be suitable for vines. But Alejandro Sejanovich, consultant winemaker and owner of the Manos Negras winery, also in San Juan, says a water analysis is necessary, and thinks the land would only produce low-quality grapes.

—–Consumer
Are Italian Wine or Swiss Chocolate Really Better? A Revealing Taste Test

http://abcnews.go.com/Technology/taste-test-wine-chocolate-preferences-shaped-taste/story?id=14108761

The experiments of Keith Wilcox and colleagues at Babson College showed that people like wine better when they are told it is from Italy, and chocolate better when they are told it is from Switzerland.

Restaurant Wine Programs Earn Mixed Reviews in Consumer Study by Sommelier Journal

http://www.hotel-online.com/News/PR2011_3rd/Jul11_WineSurvey.html

Sommeliers, service and restaurant wine received mostly good reviews, but wine pricing, by-the-glass programs and staff wine advice received poor reviews in a study by Sommelier Journal. Other notable areas include a strong desire for notes on wine lists and pairings built into the food menu.

New probe into government’s alcohol guidelines

http://www.harpers.co.uk/news/news-headlines/10824-new-probe-into-governments-alcohol-guidelines.html

A UK committee wants to find out what the government’s guidelines of a maximum regular 2-3 drinks per day for women and 3-4 drinks per day for men are really based on.

—–Events
Coppola to speak at WineFuture conference in Hong Kong

http://www.harpers.co.uk/news/news-headlines/10833-coppola-to-speak-at-winefuture-conference-in-hong-kong.html

Francis Ford Coppola will speak at the November conference, in addition to other speakers including Robert Parker, Jancis Robinson and James Suckling. Coppola’s speech will address his restoration of his Napa Valley estate, which he is re-naming to honor its historic name Inglenook.

Virginia Welcomes National Wine Bloggers Conference

http://www.governor.virginia.gov/news/viewRelease.cfm?id=843

This weekend, 330 US wine bloggers will travel to Charlottesville, VA for a three-day symposium including wine tastings, winery visits and discussions on the wine industry and its relationship to new forms of media. Special guest speakers are Eric Asimov, chief wine critic for the New York Times, and Jancis Robinson, Master of Wine.

—–Blogosphere
Passion and Knowledge at the Wine Bloggers Conference

http://fermentation.typepad.com/fermentation/2011/07/passtion-knowledge-wine-bloggers-conference.html

Tom Wark reflects about the passionate people he is meeting at the conference in Charlottesville, and gives some advice to prospective wine bloggers: start with great content, post frequently, use all forms of media, write for consumers, and promote.

Erin Becker
Research and Innovation
AndesWines.com

Andes Wines
andes@andeswines.com
(56) 2-3702997
twitter: @andeswines.com