Wine Economist Joins 2016 Professional Wine Writers Symposium Faculty

I’m pleased to report that Sue and I will be joining the faculty of the 2016 Professional Wine Writers Symposium, which will take place February 16-19, 2016 at the Meadowood Napa Valley resort. I will be speaking about the challenges and opportunities of writing about the wine business and Sue will serve as a writing and career coach, drawing upon her years of corporate communications experience and work as contributing editor of the Wine Economist.

We are honored to join this year’s distinguished faculty, which includes Hugh Johnson, Eric Asimov, Jeannie Cho Lee, Jamie Goode and … well the list goes on and on. Here’s how a press release describes the faculty.

Renowned British author and expert on wine, Hugh Johnson OBE, will deliver the industry keynote address at the 2016 Symposium for Professional Wine Writers at Meadowood Napa Valley to be held February 16-19. The Symposium is open to qualified wine, wine-food and wine-travel writers.

Other faculty members featured at the 12th annual gathering include Eric Asimov, chief wine critic for the New York Times; Jay McInerney, author and wine columnist for Town & Country; Jeannie Cho Lee MW, founder of; Ray Isle, executive wine editor, Food & Wine; Doug Frost, wine author, educator and one of only four people in the world to hold both the Master of Wine and Master Sommelier credentials; Jamie Goode, author, writer and founder of; Virginie Boone, contributing editor for Wine Enthusiast; Mike Veseth, publisher of the Wine Economist; satirist Ron Washam, the HoseMaster of Wine; Esther Mobley, wine, beer and spirits writer for the San Francisco Chronicle, and Tilar Mazzeo, author of The Widow Clicquot and associate professor at Colby College.

The full program for the 2016 symposium has not yet been announced, but participants can expect an intense set of lectures, meetings, discussions, writing exercises, and one-on-one coaching sessions — plus the opportunity to taste great food and wine and get to know some luminaries of the wine world. The program emphasizes three subjects: the craft of writing, career advancement and wine knowledge.

This year’s symposium marks a transition toward a fully funded fellowship model (in place of the tuition charge of previous years) thanks to the generosity of Meadowood and the Napa Valley Vintners Association. Applications for  the 30 fellowships are now being accepted with a November 1, 2015 deadline. Learn more at

Founded by Meadowood Napa Valley and the Napa Valley Vintners Association and supported by The Culinary Institute of America, the symposium brings together wine book authors and editors, wine magazine writers and critics, newspaper wine columnists, bloggers and other editorial wine content creators. Special thanks to Jim Gordon for inviting us to join the faculty for 2016.

Tre Bicchieri: A Journey Through Friuli Wine in Three Glasses

Tre Bicchieri — three glasses.  Those are important words if you are interested in Italian wine. The Michelin Guide gives up to three stars to the top restaurants in France and around the world and perhaps for that reason Gambero Rosso magazine’s Vini d”Italia gives up to three glasses to Italy’s finest wines.

For the 2015 edition the editors surveyed 2042 wineries and evaluated 20,000 wines. Just 423 (about 2 percent) received  the tre bicchieri rating.

Friuli Venezia Giulia punches above its weight in the Gambero Rosso rankings with 27 tre bicchieri awards listed in the 2015 league table including wines from three wineries that I mentioned in my last column: the Rosso Sacrisassi 2012 from Le Due Terre, the Sauvignon 2013 from Tiare, and the Sauvignon Ronco delle Mele 2013 from Venica & Venica.

The quality of the Friuli wines is high and rising and deserves greater attention. We visited three wineries (the “three glasses” of this column’s title) that impressed us both for the three glasses-worthy wines and also for the different ways they are advancing the reputation of the wines of this region.

Rooted in Nature: Borgo San Daniele

We first learned the story of Borgo San Daniele in my dog-eared copy of Slow Wine 2014, which awarded the winery its “snail” designation for giving particular attention to the values of the Slow Food movement (I wrote about Slow Food in my Globaloney books).

It is the philosophy of Slow Food that tradition and nature are best preserved if they are valued in the marketplace and so the Slow Food and Slow Wine movements seek to identify producers of traditional and natural products and then draw wider attention to them. There was a special room set aside for Slow Wine producers at the Italian Trade Commission’s  Vino 2015 symposium in New York City earlier this year, for example, and it was always buzzing.

Borgo San Daniele fits right into the Slow Wine philosophy. Mauro Mauri and his sister Alessandra inherited vineyards from their grandfather in 1990 and have spent the last 25 years renewing the land and the vineyards and developing wines with a quite distinct local identity that reflects their own gentle but determined personalities. We were fortunate to be able to stay at the winery, meet Alessandra, and taste the wines with Mauro.

The Borgo San Daniele wines have an extraordinary reputation in Friuli — restaurants and wine shops that are lucky enough to get a few bottles display them proudly. Only a few different wines are made, each from specific varieties or blends and each from a particular place. The land, not demand, limits production and when it is gone it’s gone. Vineyards are 18 hectares in total, according to Slow Wine, and about 14,000 cases are produced.

Each of the wines we tasted was distinctive and memorable, but the Arbis Blanc and Arbis Ròs stand out. Arbis Blanc, from the grassy San Leonardo site in Cormons, is considered a defining Friulian white. It is a field blend of Sauvngnon, Chardonnay, Pinot Bianco and Friuliano, with subtly integrated Slovenian oak. Arbis Ròs is 100% Pignolo from the Ziris site in Cormons. It was one of the two best Pignolo wines (along with Rodaro Paolo) that we tasted. Mauro served us the 2009 Arbis Ròs from magnum and it was simply stunning.

I desperately wanted bring home a bottle of Arbus Ròs to lay down and see if Maruo was right that it would continue to evolve and start to develop Asian spice notes in 8-10 years. But the standard bottles of this wine were long sold out and I didn’t think I could get one of the few remaining magnums home successfully. So there is just the memory of  Mauro, Alessandra and the Arbis and other Borgo San Daniele wines. Their personalities (which I think come out in the video at the end of this column) are so distinct that I am sure the memories will last.

 Tradition and Innovation at Rodaro Paolo

 Slow Wine brought us next to Rodaro Paolo and to meet the very intense and focused Paolo Rodaro himself, the 6th generation of his family to make wine in this region since 1847.  The current winery makes about 16,000 cases of wine from the 57 hectares of estate vineyards (40 hectares on the hillsides).  The vines are split 50/50 between red and white grapes, an increase on the red side (Pignolo, Schioppettino, Reofsco) over the years as climate change has improved the ability to ripen these grapes.

Slow Wine told us that the entry-level wines are a bargain for the quality (and we tried them a few days later over dinner at a simple country trattoria across the street from the winery). But we came to learn about the Romain wines.

Paolo Rodaro is committed to bringing out the very best of the traditional local wines that he produces and he intensely channels this desire through experimentation and innovation (evolution, not revolution), with some quite spectacular results. The flagship Romain wines, for example, are the result of an experiment in drying red wine grapes before pressing and fermentation. Paolo observed the beneficial effects of “appassimento” air-drying of Picolit and Verduzzo Friulano grapes for sweet wines. Would air-drying also bring out intensity and character of some of the red wines?

The answer we found in our glasses is a clear yes. Drying very ripe red grapes for 3-4 weeks through the “surmaturazione” process (versus 3-4 months for the white grapes) achieved maturity, concentration, and balance. The resulting wines are dry and therefore high in alcohol but extraordinarily balanced and capable of significant aging. These were some of the best red wines we have ever tasted and it was an honor to discuss them with the man who made them.

The discussion was very personal — as when we tasted with Mauro at Borgo San Daniele.  Both men make a statement about themselves and their idea of Friuli through the wines they put in a bottle. Both limit the production of the wines that make the strongest statements — Paolo released just a few hundred bottles of some wines each year and makes them only in years where conditions are ideal. We felt fortunate to leave with a bottle of 2009 Refosco Romain. My tasting notes rave about the depth and elegance of this wine and I can’t wait to taste it again in eight or ten years (a timetable we negotiated with Paolo, who encouraged us to wait even longer).

The personal touch extends to the label design shown here, which was created by Paolo’s daughter Giulia when she was 5 years old. It looks like a curling vine, but it is really an abstract representation of the family home’s wrought-iron gate.

Returning to Roots: Bastianich

It would be easy to dismiss Bastianich  as just another celebrity winery. Lidia Bastianich and her husband Felix fled their home in Istria (just across the Adriatic from Venice) during the dark days after the Second World War, eventually making their way to the United States where they slowly worked their way up in the world using food as their ladder. A restaurant (Bounavia) arrived the same year as a son, Joseph.

Lidia Bastianich is now a celebrity chef with cookbooks and a PBS cooking series to her credit. Joseph is a celebrity in his own right — business partner of Mario Battali in several famous restaurants, former judge on MasterChef USA and now host and judge on MasterChef Italia. It would be easy to say that the Bastianich winery in Friuli is just another example of a celebrity using wine to cash in on transitory fame.

But it isn’t true. In fact, against all odds, I think the first sentence you find on the Bastianich website holds true: “The Bastianich winery, founded in 1997, strives to understand the history and culture of Friuli-Venezia Giulia and take it to a new level.” Sue and I toured the vineyards and winery with Wayne Young, an American who has been with the project since the first vintage in 1998 and is very much part of Friulian wine society (he sits on the board of the Coli Orientali Consorzio, for example).

It was clear in talking with Wayne that although the Bastianich owners are American, the winery and its wines are not just Italian but Friulian through and through and that to the degree that celebrity comes into play, it is an asset that is used to try to draw attention to the region.

Take the wines, which is the right place to begin. Vespa Bianco and Vespa Rosso are the flagship “tre bichiere-class” products  (Vespa is Italian for “wasp,” inspired by the swarms of wasps that descend at harvest time) and they are authentic blends of local grapes that will introduce many wine drinkers to the wine styles of this region. We’ve enjoyed Vespa Bianco many times over the years, but never the single-variety Plus (from old vine Friuliano planted near Buttrio) and the Calabrone (Italian for “hornet”), a blend of Refosco, Schioppetino, Pignolo and a bit of Merlot. All the Schioppettino and some of the Refosco are air-dried before vinification.

Celebrity creates barriers that can only be overcome by performance. These are authentic wines and the intent is to take them to the next level while respecting tradition.  Celebrity  also opens some doors for the wines and the region. This is literally true with Orsone, the Bastianich restaurant, taverna and B&B down the hill from the winery which is worth a trip even if you (gasp!) do not care about wine. The menu at Orsone gives respect to local culture while also giving an occasional nod to New York.

We asked the chefs to choose our meal and the sommelier to pair Bastianich wines with each course with a predictably delicious result. My primo course was a burnt wheat orecchiette that honored the tradition of Italian peasants making one final pass through the fields after they have been burnt in the fall, looking for every last bit of wheat, no matter how scorched. Quite an experience.


So what do these three wineries have in common? A commitment to authenticity, which they have developed in distinctly different circumstances. The three families approach Friulian wine from very different angles and tell its story if very different ways. Tasting these wines and learning about the makers gives a sense of the journey that Friulian wine has taken and the road that lies ahead to greater global appreciation in the future.


Many thanks to Alessandra, Mauro, Paolo and Wayne.

I found videos of the three wineries featured here and I thought I would share them to give you a taste of Friuli wine. Enjoy!

Borgo San Daniele

Rodaro Paolo



Friuli Revisited: Surveying Collio’s Changing Winescape

It has been more than  a dozen years since our last visit to Friuli. Friuli-Venezia Guilia is tucked up in Italy’s upper right-hand corner, north-east of Venice, north-west of Trieste, bordered by the Adriatic Sea to the south, Austria to the north and Slovenia to the east. It is sometimes awkwardly lumped together with Trentino and Alto Adige as the Italian Northeast.

Friuli is a cultural mixing bowl with influences from all its sides. It is also a beautiful region with great wines. Why did it take us to long to return?

Lucky Day: Cantina Aperte

Our last visit was memorable. We happened to arrive at  Venica & Venica, well-known both for its wines and its hospitality, on Cantine Aperte Day, which is the one day of the year when many otherwise private cellars throw open their doors and welcome swarms of enthusiasts. It was a lucky day for us because we met so many wonderful people and tasted some memorable wines. Later we moved from the Venica B&B to to La Subida close by the Slovenian border and used it as a base to visit Udine, Cividale, San Daniele, Gorizia, Trieste and Aquileia.

As much as we enjoyed our visit to Friuli I wondered if we would ever return. There are so many interesting regions in Italy and the world, so many distinctive wines. But the pull of Friuli was strong and so we pointed our rented Fiat 500 in the direction of Cormons. We wanted to revisit some friends and wines, but “what’s new, what’s changed” were the questions on our minds.

We spent half a week at  Borgo San Daniele in Cormons, one of the best wineries in the region and a comfortable base of operations, before following the recommendation of our friends Zari and Greg and shifting to another wine estate,  Il Roncal, just outside of Cividale del Friuli for the final few days. (See below for some wine tourism notes.)

Super White: Tiare Sauvignon Blanc

When we visited before we were struck by the stunning white wines of the region and later attended some “SuperWhites” events in the U.S. designed to inform American wine enthusiasts about this under-appreciated part of Italy and draw attention to the stunning wines. We enjoyed many wonderful wines on this trip, too, including the memorable Ronco delle Cime Friuliano at the expanded and updated Venica & Venica.

But the highlight on the white side of the wine ledger was probably an impromptu visit to Tiare and the opportunity to taste a wine that had been named the best Sauvignon Blanc in the world. Best in the world? Those are big words and I don’t really know if it is even possible to settle such a claim with certainty, but the Sauvignon Blanc that we sampled (from the following and possibly even better vintage) was unquestionably excellent.

And it might not even be the best wine that Tiare makes. Roberto Snidarcig, the owner and winemaker, was even prouder of another Sauuvignon Blanc called Empìre that showed subtle oak, channeling France more than New Zealand.  And he smiled when Sue and I tasted his Pinot Noir, a pet project that showed real character and finesse.

Pinot Noir? Well, yes, as I said Friuli is a mix of influences from France and Austria and of course the indigenous Italian  grapes like Refosco, Friuliano and Ribolla Gialla.  The ebb and flow of global and local influences shows itself in many ways.

Bastianich, for example, is a project that American “Del Posto” and “Eataly” entrepreneur-restaurateur Joseph Bastianich (son of the remarkable chef and cookbook author Lidia Bastianich and business partner of the irrepressible Mario Batali) launched in 1997 to make the wines of the region and to introduce them to the U.S. and other markets.  The wines are good enough that Italy is today an important market, too. You may think of Bastanich as a showman — he was until this season a host/judge along with Gordon Ramsey on the U.S. Masterchef (he hosts Masterchef Italia now), but I can assure you that the wines are the real deal and not just a show.

Market Forces: A Region in Transition

White wines no longer steal the show in Friuli. It isn’t that they have declined in quality, only that winemakers have turned their attention to sparkling wines and back to reds, too. There have always been good reds made in Friuli, as we were reminded at Venica & Venica when we were served a stunning Merlot from the 2001 vintage that had been lost in the cellar and recently rediscovered. Clearly the best Collio reds can age! Climate change is partly responsible for the increased interest in red wines. Red wine grapes are a more reliable bet today than they were 50 years ago, I was told. The rising interest in indigenous red grape varieties such as Refosco, Schioppettino, and Pignolo is also a factor.

Market forces are another reason for the shift in direction and economics is a powerful factor in Italy, which cannot seem to extract itself from a long-term recession. Back in the old days the Bank of Italy could devalue the lira and temporarily restore competitiveness when the economy slowed down. But now Italy is a euro country and competitiveness must come the hard way — though internal reforms — rather than from exchange rate adjustment. These are difficult times for everyone including wine and we heard through the grapevine that many vineyard properties are for sale. Financial security is in short supply.

Hence a shift toward fast-selling sparkling wines because the Prosecco production zone extends into Friuli. The town of Prosecco is actually a suburb of Trieste although  the zone of DOCG production is in the Veneto, south-west in Conegliano-Valdobbiadene. Pinot Grigio is a reliable money-maker, too. Costco’s Kirkland Signature Pinot Grigio, its best-selling white wine, is from the Friuli Grave zone. Follow the money in times like these.

The marketability of Prosecco and Pinot Grigio put pressure on the indigenous wines that I am always keen to discover.  Some wine makers we met with were concerned about the region’s identity slipping away a bit, especially the very high quality Collio and Colli Orientali zones where we spent most of our time. The marketplace for wines (Italian wines, wines in general) is crowded and very competitive. Tough to get and hold consumer attention! Difficult, too, to earn that all important quality premium. A strong regional identity isn’t the solution to this problem, but it can be part of it. Need to make a statement.

My next column will profile three wineries that are making such statements in very different ways. Circle back for details.


I can’t end this overview of our Friuli expedition without a few comments on the wine tourism experience. Sue and I just love this region for its physical beauty and cultural importance, great food and wine, and the warm hospitality of the people. It is an exceptional wine tourism destination, well-known to Italians, Germans, Austrians and the Swiss, but mainly undiscovered by Americans. Put it on your list.

We were the only guests at Borgo San Daniele in Cormons (they have three nice rooms in the winery compound), so we had the place all to ourselves at times and enjoyed our stay very much. We had breakfast in the kitchen each morning and came back at one point to discover the sleepy cat shown here who may have come in through the window and obviously made himself as comfortable as we did.

Il Roncal was a different experience but one that we would also recommend.  More rooms, more visitors, lots of activity on this hilltop estate overlooking the vines. A group of German bicyclists passed through one day and several family groups took full advantage of the outdoor meeting areas. Our room was elegant. The private tasting featured local delicacies paired with each wine, which was a real treat.

There are many exceptional restaurants in the area including a homey new osteria at La Subida with great food and wine. The staff built a fire in the outdoor fireplace for us one night when thunder, lightening, and a heavy rainstorm chased all the other diners inside. What atmosphere! trota

We had to return to Al Giardinetto in Cormons and it was as spectacular as we remembered. The food is wonderful, but the wine stands out in my memory. Our host pulled many corks, showcasing limited and unusual wines that we would not otherwise have been able to taste. A glass of this, a half glass of that, you might find this interesting, it was great as he shared treasures of the cellar with the guests.  And the total cost was much less than we might have paid for a single bottle of wine in other circumstances. A real wine lover’s restaurant.

Two other meals stand out among many. We stopped for lunch Alla Trota in the little village of Pulfero near the Slovenian border in the beautiful Natisone valley. We sat out on the patio overlooking the Natisone river that produced the trout on our plates. I went over the top with tagliatelle with a smoked trout ragu followed by  roasted whole trout and then apple strudel along with this jug of local wine.

salepepeThe next day we found ourselves in an even tinier town at lunchtime. Not many dining options in little hillside Stregna and when we asked at the door we discovered that Sale e Pepe‘s kitchen was closed for a thorough cleaning. What to do? Well, the chef said, just because we can’t use the stove doesn’t mean we can’t fix you lunch. And so we enjoyed the rather spectacular salad, cheese, charcuterie and dessert shown here accompanied by one of the region’s best red wines from Le Due Terre.

Did I mention warm hospitality before? Now you know what I’m talking about. Obviously we need to return when the kitchen is cooking on all its burners. Must be spectacular!

Circle back for a profile of three wineries that really caught our attention. Cheers!


Thanks to everyone who hosted and helped us during our week in Friuli. Special thanks to Michelangelo Tagliente for his advice.

UNESCO World Heritage Wine Regions: Benefits & Costs

Last week I talked about the rise of UNESCO World Heritage-designated wine regions. There are now more than a dozen wine regions that have received the UNESCO imprimatur — Champagne and Burgundy are the latest additions — and more than 30 with some wine connection (see list below) with more applications are in the pipeline.

I am not opposed to wine regions being highlighted this way — in fact I kind of like the idea — I just wonder how UNESCO designation fits into the already complicated geography of wine. I ended the column with a series of questions that I will try to answer this week.

What are the costs and benefits of World Heritage status?

A 2007 UK government report outlines the costs of and benefits from seeking UNESCO World Heritage Site designation (you can find a pdf of the report here). The costs, it concludes, can be substantial. The application process alone can be long and expensive (this is not a surprise to anyone in the U.S. who has been through our AVA application process lately).

A recent New York Times article about Burgundy’s UNESCO designation notes that the organizers assembled a team of 30 specialists to make their case and published a 600-page scientific and historical report in both English and French. Once approved, there are of course additional costs of managing the program. The UK study estimated that the costs (back in 2007) could be more than £100,000 to make the bid and possibly much more than this on a yearly basis for program management. Obviously someone has to come up with funds to finance all of this, so UNESCO designation is a major commitment.

What are the benefits? The UK study divides them into potential economic benefits and potential social benefits. From an economic standpoint, being a UNESCO site opens doors to partnerships with other organizations that might provide funding and support and is also a useful tool in promoting tourism. Being on the UNESCO list is like having an extra star in the tourist guidebook rating, I guess.

One of my university students reports that her thesis fieldwork on national parks in Southeast Asia reflected the UNESCO effect. UNESCO-designated parks had better facilities, more tourists and more government support (she also found them to be more commercialized) compared with national parks lacking the UNESCO imprimatur.

The non-economic benefits can be substantial, starting with conservation, regeneration and education benefits (which I think are the main aim of many of the programs) and moving to civic pride and social capital (“social unity and cohesion” according to the study), which are harder to measure but still important.

Interestingly, the New York Times article lists different principal benefits for Champagne and Burgundy. For Burgundy, we are told, the point is to make a statement that fine wine comes from specific terroirs, of which the newly protected Burgundian vineyard climats are among the world’s most famous.  For Champagne, on the other hand, the payoff comes in additional protection of intellectual property rights — the Champagne brand itself. To the extent that the climats are closely identified with Burgundy’s brand, I suppose the two cases are not so very different after all.

Why is there a need for an additional regional wine designation?

The first appellations in France were essentially defensive mechanisms. Defense first against wines from outside a region being passed off as a local product and then defense against local producers who were debasing the region’s collective brand through over-cropping, poor wine-making, etc.  Appellation regulations had economic value first and then provided social benefits.

Here in the U.S. we have watched AVAs proliferate to the point where most of them have little specific economic brand value. Most AVAs with a few exceptions are probably best understood as tools of regional identity not as valuable brands. They are expensive tools due to the high application costs, but they are worth something in today’s marketplace because for some consumers today the lack of a geographical designation puts a wine into a lower generic class. 

Seen in this economic light, the UNESCO designation creates a sort of super appellation that rises above the cluttered landscape while at the same  time potentially providing those conservation, regeneration and education benefits.

The creation of a super league of some sort might not be necessary, but perhaps it is inevitable (in the same way that the creation of the UEFA Champions League in soccer was probably inevitable).  The fact that the league might ultimately be based on UNESCO protocols that explicitly privilege history and culture as opposed to auction valuations or famous critic ratings, which focus on different factors, is what makes it really interesting to me.

Should your wine region look into this?

When I first read about the UNESCO designation I thought that Napa Valley was an obvious candidate. But if increased wine tourism is one of the benefits, then I wonder Napa really works. Seems like if Napa is having trouble working out a balance between wine tourism and what many see as conflicts with local lifestyles. The additional attention from UNESCO status might compound rather than resolve local tensions unless local pride somehow rose to bridge the tourism divide.

Ultimately, looking at the examples of Champagne and Burgundy, I think each region has to make its own evaluation of the costs and benefits and decide if gains in terms of profit, identity or philosophy are worth the obvious costs. It seems to me that the conservation and regeneration benefits (or lack thereof) may tip the balance one way to another. I’m interested in hearing what others have to say.


Congratulations to those regions that have achieved UNESCO designation and to those who receive it in the future.  Despite my grinchy “dismal scientist” focus on costs and benefits, I am glad that UNESCO celebrates the natural and cultural wonders of the world and proud that wine regions are included on the list.

Here’s a list of vineyard-related World Heritage sites as tabulated by


Butterfly Effect: How China’s Crisis Threatens the U.S. Wine Industry

china1“The Butterfly Effect” is a term coined by Edward Lorenz that describes the nature of a highly interconnected system such as the global environment or the global economy. A butterfly beats its wings in Brazil, the story goes, setting off a chain reaction that indirectly results in a tornado thousands of miles away in Texas.

The Butterfly Effect was on my mind last month when I spoke at the annual meeting of the California Association of Winegrape Growers in Napa, California. Part of my presentation outlined several indirect global threats to the California and U.S. wine industries. Two of these are in the news this week.

China Market Meltdown and Contagion

The financial crisis in China was one of the threats that I highlighted. “I know what you are thinking,” I told the group, “Mike, we don’t have a lot of money in the Chinese stock market and we don’t really sell too much wine in China, so I don’t see how falling Chinese stock prices are a threat to our business.” Well, they aren’t much of a direct threat, it’s that Butterfly Effect that you need to worry about.

Economists have a name for the Butterfly Effect of a financial crisis — we call it contagion and it takes several forms. Exchange rates are one way that economic effects are transmitted from country to country.  The Chinese crisis drives down raw material prices on global markets and this has pushed down the foreign currency values of many natural resource producing countries including Australia, New Zealand and Chile.

These three countries are important wine exporters to the U.S. and lower exchange rates for their currencies means increased competition for U.S. producers. When you find that a Chilean producer has undercut your price for bulk Cabernet Sauvignon, for example, there might be a Butterfly Effect at the root of the problem.

Oil is another potential contagion vector. As China slumps, oil prices do, too. This has a disproportionate impact on certain countries such as Russia, which relies on oil exports to China more than in the past due to the current international  sanction regime. When Russia also slumps due to falling oil sales wine producers in Spain, for example, find themselves stuck with excess stocks earmarked for the Russian market. If they try to sell them off here in the U.S. at a bargain price that’s another Butterfly Effect to consider.committee

The Contagion-Busters

Contagion occurs in other ways and I highlighted the group that I think of as  “The Committee to Save the World” (shown above) in my Napa talk (you might prefer to call them the Contagion-Busters). The “Committee’s” job is to stop contagion or at least minimize its effects and it is a difficult task. They have been focused on Greece in recent months, but now it is impossible for them to ignore China.

Hopefully they can prevent the Chinese crisis from having real impacts on other large economies. It is already clear that there have been substantial financial effects (the U.S. stock market “correction,” for example) but the real economy of jobs and output is slower to react and sometimes is less affected. Fingers crossed.

Certainly the Chinese crisis adds risk to the whole world economic system and puts constraints on policy. If the Federal Reserve now goes forward with its widely anticipated plan to raise interest rates in September, for example, the result is likely to be a big spike in the value of the U.S. dollar on foreign exchange markets, putting U.S. wine producers at a further competitive disadvantage. Another beat of the butterfly’s wings?

Keep an eye on China. The impacts could be both bigger and different than you otherwise expect.

The Rise of the UNESCO World Heritage Vineyard

“International Designation is Sweet Victory for Burgundy”  is the title of the August 17, 2015 New York Times article by Elaine Sciolino, which tells the story of how Burgundian vineyards received UNESCO World Heritage Site designation. “Burgundian terroir and climats” joins “Champagne Hillsides, Houses and Cellars” on the 2015 UNESCO induction list.

There seems to be a movement among some wine regions to seek the UNESCO designation in addition to their regional appellation.  During our visit to the Italian northeast last year we learned that Conegliano-Valdobbiadene had applied for UNESCO status for their dramatic and beautiful hillside vineyards. I saw that as a special case, bow I am starting to think that UNESCO-designation is a broader trend that deserves more attention.

A to Z: 1031 UNESCO World Heritage Sites

The UNESCO World Heritage Site program has grown and changed since it was initiated in 1978.  There are currently a total of 1031 UNESCO-designated properties in 163 countries around the world. About 80 percent are designated cultural sites and 20 percent are natural heritage locations.  Forty-eight are listed as “in danger.” Here is a list of the 1978 first group of UNESCO sites. You can see a strong preservation motive here.

Aachen Cathedral
City of Quito
Galápagos Islands
Historic Centre of Kraków
Island of Gorée
L’Anse aux Meadows National Historic Site
Mesa Verde National Park
Nahanni National Park
Rock-Hewn Churches, Lalibela
Simien National Park
Wieliczka and Bochnia Royal Salt Mines
Yellowstone National Park

and here are the locations on the 2015 list

Aqueduct of Padre Tembleque Hydraulic System
Arab-Norman Palermo and the Cathedral Churches of Cefalú and Monreale
Baekje Historic Areas
Baptism Site “Bethany Beyond the Jordan” (Al-Maghtas)
Blue and John Crow Mountains
Champagne Hillsides, Houses and Cellars
Christiansfeld, a Moravian Church Settlement
Climats, terroirs of Burgundy
Cultural Landscape of Maymand
Diyarbakır Fortress and Hevsel Gardens Cultural Landscape
Fray Bentos Industrial Landscape
Great Burkhan Khaldun Mountain and its surrounding sacred landscape
Necropolis of Bet She’arim: A Landmark of Jewish Renewal
Rjukan–Notodden Industrial Heritage Site
Rock Art in the Hail Region of Saudi Arabia
San Antonio Missions
Singapore Botanic Gardens
Sites of Japan’s Meiji Industrial Revolution: Iron and Steel, Shipbuilding and Coal Mining
Speicherstadt and Kontorhaus District with Chilehaus
The Forth Bridge
The par force hunting landscape in North Zealand
Tusi Sites

World Heritage Vineyards and Wine Regions

A surprising (to me) number of these sites have wine connections. Here’s a list of wine-related UNESCO properties and the year each was added to the list based on my quick survey of 1031 sites on the list. There may be some that I have over-looked — please use the Comments section below to let everyone know of additions to the list.

  • Burgundy terroir and climats (2015)
  • Champagne Hillsides, Houses and Cellars (2015)
  • Palestine: Land of Olives and Vines – Cultural Landscape of Southern Jerusalem, Battir (2014)
  • Vineyard Landscape of Piedmont: Langhe-Roero and Monferrato (2014)
  • Lavaux, Vineyard Terraces (2007)
  • Bordeaux, Port of the Moon (2007)
  • Landscape of the Pico Island Vineyard Culture (2004)
  • South Africa Cape Floral Region Protected Areas (2004)
  • Upper Middle Rhine Valley (2002)
  • Tokaj Wine Region Historic Cultural Landscape (2002)
  • Alto Douro Wine Region (2001)
  • The Loire Valley between Sully-sur-Loire and Chalonnes (2000)
  • Wachau Cultural Landscape (2000)
  • Historic Centre of Oporto (1996)

UNESCO and Wine: Some Unanswered Questions

The vineyards and wine regions on the UNESCO list so far are certainly important, but it is easy to think of other wine regions around the world that have special properties and that are not yet on the list.  I wonder where this movement will lead? The rise of the UNESCO World Heritage Vineyard project prompts a number of interesting questions.

What are the costs and benefits of World Heritage status?

Why, when wine has appellations, AVAs and Geographical Indicators galore, is there a need for an additional designation?

Should your wine region look into UNESCO designation?

Answers to these questions and more in the next Wine Economist column.

Lunch with the Financial Times: Bargain Wine-By-the-Glass?

Every Saturday the Financial Times  publishes a feature called “Lunch with the FT” where a correspondent takes a newsworthy person to lunch and reports on both the conversation and the meal itself.

Don’t tell anyone, but I am sometimes as interested in the details of the food and wine as I am in the serious conversations that they facilitate. The Financial Times insists on paying and over the years I have seen a wild variation in bills.

One blustery British billionaire ordered as if he were paying himself, including a bottle of Chateau Palmer 1983 for £580 (about $900). The total tab was over £750 for lunch for two. At other times the bill is zero — the person being interviewed insists on tea at home, for example, or lunch at the company dining room.

One of my favorite interviews involved Tyler Cowen author of An Economist Gets Lunch and expert on both globalization and the Washington D.C. ethnic dining scene. His goal was to have a wonderful lunch while spending as little as possible, just to demonstrate that the opportunity usually exists if you aren’t afraid to try new cuisines (African or Ethiopian in this case).

Here, for the record, is the bill for the meal for two. I think he succeeded pretty well, don’t you?

Kebericho, Deli Market, 3811c South George Mason Drive, Virginia

Kwanta firfir

Awaze tibs

Minchet abish

Kidfo $15.99

Double espresso $2.00

Total (incl service) $22.99

Incredibly, since the Financial Times picks up the tab whether it is big or small, many subjects pass on wine. I suppose it is about making a statement — my subject is too serious to let wine get in the way — but this seems just wrong in terms of both dining pleasure and the economic incentive that the FT is purposefully providing.

Which brings me to this week’s Lunch with the FT, which is now my favorite in the series. The interview subject is economist Mariana Mazzucato, author of The Entrepreneurial State and the discussion of the role of government in economic innovation is very interesting.

So is the meal. The restaurant is The Gilbert Scott, Euston Road, London and the cost is moderate by London standards with one exception that caught the FT host by surprise when the bill came. Can you pick out the unexpected charge?

Asparagus £10.50

Leek and Jersey Royal soup £7.00

Duck leg confit £19.00

Sea bream £19.00

Green salad £4.00

Spring greens £4.00

2 Macchiato £6.50

Sparkling water £3.75

2 Glasses of Pouilly-Fumé  £80.00

Cover charge £4.00

Total (including service) £177.50

Yes, you can imagine the shock of seeing this charge “2 Glasses of Pouilly-Fumé £80.00” (about $120) and having to explain it to the accountants back at the office. We only had two little glasses of white wine … honest!

Explanation? Well it seems that the wine was a 2006 Pouilly-Fumé Blanc de Fume by Didier Dagueneau — one of the world’s great white wines and something that any wine lover would want to try. Two glasses cost almost as much as the rest of the meal including service, but many would say it was money well spent! It might be a great bargain in the grand scheme of things, although that’s a matter of taste.

It seems that The Gilbert Scott always has a couple of stunning wines available by the glass along with a well-chosen and  fairly priced wine list in general. Single glasses of the house selection are as low as £5. But if you are willing to splurge …

I am now in awe of Mariana Mazzucato — well done, Professor! You really know your wine and you know how to take advantage of an opportunity in the best possible way. I wonder if I would have been bold enough to make that choice? Brava! I think I want to have lunch with you sometime (if we can just get someone else to pay).

Thus inspired, I sit here by the phone waiting for a call from the Financial Times …. Hello? Rats. Wrong number.

Here is a link to the Mariana Mazzucato interview. Warning: you may need a FT subscription to access the page. Do you have a good wine-by-the-glass story? If so, please use the Comments section below to tell me about it.


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