Comments on: Chilean Wine at the Crossroads

By: Wine Curmudgeon

Wine Curmudgeon — Thu, 15 Dec 2011 15:23:47 +0000

Your point about carmenere is well made, though it raises any number of questions. It’s difficult to sell a grape that export markets don’t know, but what I find even more interesting is that the Chileans themselves don’t seem to know what do with the grape. Do they blend it? Do they make single varietal wines? If so, what do they taste like?

By: Alana Gentry

Alana Gentry — Wed, 14 Dec 2011 15:39:46 +0000

A very well researched and written piece once again Mike. I enjoy reading your insights on the global wine industry’s market positions.

I was on a 2011 media tour in Chile and Argentina with some very fine and established wine writers including Marguerite Thomas, Karen MacNeil and Blake Gray and I participated in the Carmenere blogger tastings in 2009 and 2011. From my observations, there are two key factors that will make or break both countries: 1) vintners being on the same page with a core message and a plan to execute it and 2) quality and taste. I’m not an economist but I’ve always suspected that Australia’s market ran off the cliff because they did not have tight reins on these factors.

All of the writers on our tour had their own opinion, but for me the most interesting and best wines coming out of Chile are coastal climate wines like Chardonnay, cool climate Syrah and Pinot Noir. I also respect and applaud the vintners engaged in intensive terroir and aging experiments and believe the eco-friendly message is a good one.

Which (as you wrote) brings us to Carmenere. In my opinion, the 2011 tasting showed a marked improvement in quality and taste over the 2009 event. By “taste”, I’m referring to presenting wine that is softer and richer for the American palate, as opposed to more austere wines that need a few years in the bottle to really come into their own. Quality (a different factor altogether) will create market sustainability and high critical scores which matter economically, right?

I guess my conclusion is that Chile’s marketing plans are pretty much on target, but time will tell. If they’re nimble on their feet, well-financed and retain inspired, smart leadership, my bet is that they’ll continue to grow.

By: ross mckay

ross mckay — Wed, 14 Dec 2011 06:39:15 +0000

Interesting about the raising of prices. Let me preface this by saying that Australia is a high taxing country and we generally pay 30% more across the board for all wines.

I was in the shop the other day and was looking specifically for a bottle of Chilian wine. There was not much to choose form but as I was looking for a syrah I bought a 2009 Montes Alpha Syrah for $19. Not a bad drop and value for money (but reductive like almost every Chilian Syrah I’ve tasted).

There was also a $35 chardonnay and a $75 CS. Now I can buy a very good Yarra Valley chardonnay for $35 and a decent bordeaux with a bit of age on it for $75. I will never chose a Chilian wine at those price points simply becuase they don’t yet have the runs on the board.

As with USA, get some reputation, win a stack of awards (doen’t hurt to have an influential wine writere talk you up) then boost the prices. There’s too much wine for each buyer as it is. Discounts are the norm not the exception so inflating prices to imply quality is a dangerous game.

Don’y get me started on the Austraian wine marketing efforts

By: Mike Veseth

Mike Veseth — Tue, 13 Dec 2011 20:31:46 +0000

I like your theory of cheap trial and error — sounds like the voice of experience to me.

By: Mike Veseth

Mike Veseth — Tue, 13 Dec 2011 20:31:14 +0000

Thanks for this, Christine. I think positioned Chilean wine as a green product has potential, although the green wine niche is still pretty small. Thanks again.

By: Christine

Christine — Tue, 13 Dec 2011 20:26:55 +0000

I’ll be interested to read your conclusion. I just returned from a wine tourism trip (consumer) to Chile and Argentina, and the Chilean winemakers we visited believe Argentina has made a mistake by putting all their eggs in the Malbec basket. They’re very aware of the trouble Australia has run into with Shiraz. Having said that, I do think Carmenere is an underexposed grape that most people would like if they were served it. Most people I know have never heard of it, although I like it better than most Malbecs.

However, I can’t see in my local grocery stores and wine shops that either Chile or Argentina does better with shelf space. It’s just that Argentina’s shelves are all Malbec and Torrontes and Chile’s have a few varieties. I wonder if Chile might be better off trying to get its bottles also placed in the varietal sections.

Other things we learned from our small sampling of wineries: Chile is extremely committed to exports, in part because the taxation structure of the country apparently makes it more expensive to sell wine in Chile than out of it. In order to export successfully and achieve pricing goals, they also feel compelled to get high ratings from the usual suspects, which leads to greater use of French Oak, etc., than they would otherwise do. All of them talked about their organic/sustainable/biodynamic practices.

By: Ken Bernsohn

Ken Bernsohn — Tue, 13 Dec 2011 20:22:48 +0000

In the 1960s the California wine industry was seen as the home of plonk. A study by a producers association said that if they wanted tos ell more they should raise their prices. It was seen at the time as a huge gamble. Some wineries changed their labels to look higher class, more expensive and raised their prices. It worked. Then more did. Not everyone could of course, but it changed the perception of California wine.
There are many other possible approaches to marketing Chilean wine. If they seem logical, they’re probably less effective than those which take an approach which hasn’t been tried previously. Most marketign approaches fail. The trick is to learn how to fail cheaply so you can afford to try another, then another until you discover one that works for you.