Invisible Wine … Revealed

The main theme of Ralph Ellison’s classic novel Invisible Man, according to one plot summary, “is the invisibility of the underdog. As the title suggests, the main character is invisible because everyone sees him as a stereotype, not as a real person. While the narrator often bemoans his state of invisibility, he comes to embrace it in the end.”

If we think of invisibility this way (and not the more literal  spooky H.G. Wells way) then I suppose that Kerner is an  Invisible Wine.

Son of Frankenwine?

Kerner is a hybrid wine grape – a cross between noble Riesling and very humble Schiava Grossa, also known as Trollinger in Germany and Vernatsch in its native Alto Adige region of Italy, where it mainly produces inexpensive everyday  red wines for local consumption.  Kerner is a relatively recent invention, first bred in 1969 according to the Oxford Companion to Wine, and named for Justinius Kerner, a 19th century poet and song-writer with a particular affinity for wine.

Justinius Kerner

Hybrid grapes have the same reputation as movie sequels. They are frequently profitable and sometimes very enjoyable, but never as good as the original. There are exceptions to this rule (both for grapes and for films) but in general the stereotype holds. Kerner is often viewed as a Riesling sequel, having many of the qualities of Riesling, but with higher yields and better frost resistance.

Critic reactions to Kerner are mixed. Jancis Robinson, like me a big Riesling fan, writes that “The large white berries produce wines commendably close to Riesling in flavour except with their own leafy aroma and slight coarser texture.” She calls it a “great success story.” Oz Clarke is less enthusiastic, writing that “It is one of the better modern crossings … which perhaps is not saying a great deal.” You see what I mean about stereotypes.

There are about 3700 hectares of Kerner in Germany, far behind Riesling (22,000 hectares), Muller Thurgau (13,000 hectares) and Sylvaner (5000) among white grape varieties but still a considerable amount. While varietal Kerner wines are made in Germany (some quite good, according to Robinson), I suspect most of the grapes are destined for “invisible” inclusion in various blends, which is what happens to hybrids.

A Different Story in Italy

Peter Baumgartner

The story is quite different in Alto Adige, that part of Italy that was Austrian before the First World War and exists today as a semi-autonomous region with both German and Italian (as well as Ladin) as official languages. This is the home of Kerner’s parent, Schiava/Vernatsch, and Kerner is embraced here for what it is, not as a Riesling sequel or substitute. The Valle Isarco (or Eisachtaler in German), which follows the Isarco river up into the Alps,  is the main Kerner region and here, freed of stereotypes, it achieves something quite special.

We were fortunate to have a private tasting of the wines of the Cantina Porduttori Valle Isarco (a.k.a Eisacktaler Kellerei) in Chiusa. Peter Baumgartner, a local banker who is the cooperative winery’s president, explained the winery’s business side (look for an upcoming post on cooperatives in this region) and guided us as we tasted the wines.

Cantina Valle Isarco specializes in white wines (Baumgartner plans to phase out the remaining reds in the portfolio): Sylvaner, Muller Thurgau, Veltliner, Traminer Aromatico, Pinot Grigio, Pinot Bianco, Chardonnay, Sauvignon, Riesling and of course Kerner. Production is about 1 million bottles a year and the market is mainly local: 50% in Alto Adige, 40% in other parts of Italy with most of the remaining 10% exported to Germany and Switzerland. Wines are produced to hit several price points starting about about €6 for the entry level and moving up from there.

The Cantina makes four Kerner wines starting with the entry level wine (which we did not taste) and moving up through the premium Artisos series, a limited edition Sabiona Kerner (made from grapes from the Sabiona Monastery vineyards) and ending with a deliciously sweet Kerner Nectaris Passito made from late-harvest grapes left to dry and concentrate their flavors on straw mats in the manner of Amarone.

Wine Wisdom from Charles Barkley

I once heard the sports philosopher Charles Barkley say that a particular basketball player was successful because “he plays like himself” instead of trying to be someone else.  I think the Kerner wines made by the Cantina Valle Isarco are interesting (and apparently successful, too) because they “play like themselves” — they seem to be made to be themselves and not an imitation, substitute or sequel for something else.

In fact, they are among the very best white wines of Italy. Or at least that’s what the editors of the Gambero Rosso guide seem to think. My 2007 Vini d’Italia guide lists three Kerner wines (from Cantina Valle Isarco, Manfred Nössing-Hoandlhof and Abbazia di Novacella) among the 282 wines from all of Italy receiving the highest “three glasses” (tre bichierri) award. That’s a disproportionate achievement for an invisible wine from a tiny Alto Adige valley.

Kerner shows that local wines can excel if local markets embrace them and that even invisible wines can sometimes shine in the spotlight if they follow Charles Barkley’s sage advice.

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Cooperatives have a bad reputation in the wine business. Some of the worst wines in the world are made by cooperatives that favor quantity over quality. But, as we have seen here, some of the best wines are also made by cooperatives. High quality cooperatives are unusually prominent in Alto Adige. Why? How? These are questions I’ll try to answer in my next post.

Thanks to Peter Baumgartner for his generous hospitality during our visit to Cantina Valle Isarco and also at the opening reception of the AAWE meetings in Bolzano.

Against the Tide: Globalization vs Italy’s Indigeneous Wines

The tide I’m talking about is the globalization of the wine market and I frequently hear that its ebb and flow bring in the main international wine grape varieties and the styles associated with them and wash out unique local wines. There is a grain of truth to this — one winemaker explained it to me this way. If I make poor but distinctive local wine and can’t sell it, I can blame international market forces (and not my own lax wine making) and just plant Merlot. Classic cop-out, he said.

This maybe true, but it isn’t the whole story. There is also the pipeline effect. Global markets create big pipelines that need to be filled and sometimes it is easier to fill them with a few standard wine varieties and styles than with hundreds of different small production wines. (The current movement to ship wines in bulk — in big 25,000 liter containers — and bottle in the consumer market reinforces this trend.)

And of course the demographic of wine consumption is changing, too (the who, what, where, when, how and why) with more new consumers who face a steep learning curve that sometimes works against wines that lie outside the mainstream. There are lots of pressures on winemakers today and globalization is certainly one of them.

Arguable Premise

But I’m not sure that the premise of the argument is correct. Although the wine market is much more global than in the past, it is still surprisingly local compared to many other industries, with most production sold in the country of origin. And although it is easy to spot increasing consolidation within the wine industry, it remains remarkably fragmented compared to most other international businesses.

And, to keep the momentum going, while it is easy to look at the wine wall and see acres of Cab and Chardonnay (and other “international” varieties) from all around the world, it is just as easy to note how very many distinctly local varieties are present.  It is sort of a macro-micro thing. If you look at the wine industry in terms of Rabobank’s very cool map (above) of international wine trade, it is easy to see the world defined by those big international flows, but if you look at it in terms of DeLong’s even cooler Wine Map of Italy (below), for example, the persistence of local wine markets becomes clear.

Like a Coat of Paint

We explored this global-local tension during our recent trip to Italy to attend the meetings of the American Association of Wine Economists in Bolzano. Italy is far and away the world’s largest wine exporting nation according to Global Wine Markets Statistical Compendium data, with average exports of 1,861 million liters during 2007-2009 period. France and Spain are second the third with 1,379 million liters and 1,292 million liters respectively. Australia is a distant fourth in the data set with an average of 782 million liters for the two year time period.

So, if the global tide argument holds, you would expect Italy to be covered like a layer of paint with endless hectares of international variety wine grapes. And, of course, there is a lot of Merlot, Cabernet and Chardonnay to be found in Italy along with other international standard varieties like Sauvignon, Riesling and Pinot Noir. But what stands out when you think about Italian wine is the success of indigenous wine  varieties and styles. Italy makes and sells international varieties, but the indigenous wines are what define it as a wine country.

Support Your Local Winemaker

Sometimes this success is driven by export markets (think about the popularity of Chianti and Sangiovese) but there are many successes that are really quite local in scope and stand as delicious counterexamples to the the incoming global tide theory. Let me give you three examples from our Italian fieldwork (Pignoletto, Lacrima di Morro and Ruché) saving a fourth case study (Kerner) for  a more detailed treatment in my next post.

Pignoletto is a dry white wine grown only in the hills outside of Bologna. “Lively, crisp, aromatic” is how Jancis Robinson describes it in her Guide to Wine Grapes. Pignoletto is distinctly Bolognese — grown there, made there and I think that every last drop of it is consumed there, too, since it goes so well with the rich local cuisine (almost as if they evolved together … which I guess they did).  It would be hard to beat the simple meal of salumi, cheese and bread that we had with a bottle of Pignoletto frizzante at Tamburini‘s wine bar in the Bologna central market.

Lacrima di Morro d’Alba is a distinctive red wine from the Marche region. Robinson describes is as “fast maturing, strangely scented.” Burton Anderson says that it is a “purple-crimson wine with … foxy berry-like odor and ripe plum flavor.” Apparently it fades very quickly, but it is distinctive and intense while it lasts.  It sure stood up to the very rich cuisine of Ferrara when we visited our friends in that city. We were fortunate that the restaurant owner guided us to this wine from the Mario Luchetti estate.

Ruché comes from the Piedmont and we stumbled upon it by accident (which I guess is how we usually stumble …). We were attending the annual regional culinary fair in Moncalvo, a hill town half an hour north of Asti. Thirteen “pro loco” civic groups from throughout the region set up food and wine booths in the central square and sold their distinctly local wares to a hungry luncheon crowd.

I had never heard of Ruché and honestly didn’t know what it might be until I happened upon the stand of the Castagnole Monferrato group. They were cooking with Ruché, marinating fruit in Ruché and selling it by the glass — they were obviously very proud of their local wine. I had to try it and it was great. Suddenly I saw Ruché everywhere (a common experience with a new discovery) and enjoyed a bottle at dinner in Asti that  night. “Like Nebbiolo,” Jancis Robinson writes, “the wine is headily scented and its tannins imbue it with an almost bitter aftertaste.” An interesting wine and a memorable discovery.

I think we all have these great “ah ha!” wine experiences when we travel so why am I making such a big deal about these three wines? Well, that’s the point really. Distinct, truly local wines are commonplace in Italy. What is in some ways the most global wine country is also perhaps the most local. Global and local exist side by side and if they don’t entirely support each other all the time, they aren’t necessarily constant, bitter enemies, either.

The key, I think, is local support of local wines and wine makers. That’s why these three wines have survived and sustained themselves.  I don’t think “me too” wines are capable of gathering local support.

Why does this come as such a surprise to us in the United States — why do we so easily swallow the idea of the unstoppable global tide. It is, I suppose, a legacy of prohibition, which destroyed many local wine cultures in the U.S. Wine today continues the difficult task of recovering from prohibition’s long lasting effects.

Are There Really Local American Wines?

So are there American wines that are local in the same sense of Pignoletto and Ruché? Sue asked that question as we drove out of the Asti Hills and headed north. I don’t know, I replied. Maybe. Petite Sirah is kind of a California cult wine, but it isn’t local in the same way as these Italian wines.

Here in Washington State we seem to have a thing for Lemberger, which sells out in the tasting rooms of the wineries that make it and seldom shows up outside the region. It’s an Austrian grape, but it has made its home here. Can you think of any other wines like this? Please leave a comment if you have a suggestion!

Perhaps we buy the global tide argument because it is so foreign to us? I think it would be interesting if we imported more than Italy’s wines — perhaps we could share their idea of really local wine, too.

At Last: Wine Wars for Kindle

I know that some of you have been waiting patiently (and some not-so-patiently) for July 16, 2011 — the day that Amazon.com releases Wine Wars in its proprietary Kindle e-book format (and the Nook and other electronic formats are released, too).

Well, you can stop waiting and start reading: today’s the big day. I’d love to hear what Kindle readers (and e-book readers generally) have to say about Wine Wars. And don’t forget to leave a review on the Amazon.com site if you like it!

E-books are hot and I think it’s possible that more people will read Wine Wars on e-books than in the hardback version. One problem: how do I autograph an e-book? (Using a Sharpie on the screen seems like a bad idea.) Let me know if you have a solution!

The Forbes Interview: Wineries that “Get It”

Forbes Asia published “The Future of Wine,” a  three page excerpt from Chapter 15 (“The China Syndrome”) of Wine Wars last month. A follow up interview appeared this week on Karl Shmavonian‘s Forbes.com blog “Horse Feathers” under the heading “An Economist Shares His Thoughts on Wine.” (You can read the excerpt and the interview by clicking on the links provided.)

It was fun to answer Karl’s questions. Karl’s focus is Asia, so I wasn’t surprised that he had questions about Chinese wines, the Chinese-Bordeaux wine market and even the prospects for South African wine in India and … Sub-Saharan Africa!

One question really made me think. Who “gets it” in the wine world?  Here’s the question and my brief answer copied from “Horse Feathers.”

Name a few wineries that “get it” from a business standpoint.

I think Chateau Ste Michelle gets it here in Washington State. Ste Michelle Wine Estates has a “string of pearls” operating philosophy that allows each of their winery brands (including Columbia Crest, for example, and Stag’s Leap Wine Cellars) a good deal of independence while benefiting from the economies of distribution, etc. Even the large production facilities like the white wine facility in Woodinville contain mini-wineries that allow the winemakers to do small scale projects while also producing hundreds of thousands of cases of the mainline products.  Chateau Ste Michelle balances the big and the small without losing their terroirist souls. Boisset and Frog’s Leap (both in California) are examples of two totally different companies that both get it. In particular, they both get the environmental problem, although they approach it in very different ways.

Reading this, you probably wonder what I mean by “getting it” and why I picked these three wineries as examples? Here’s the story.

What does it mean “to “get it?”

“Getting it” in this context means understanding the tensions that are at the core of the wine market (and that I analyze in Wine Wars).  Globalization and wine market expansion generally have brought a world of wines to our doorstep. This embarrassment of riches is both blessing and curse. It’s a blessing because of the opportunity to sample wines from all around the world. It is a curse because of the difficulty of choosing. Too much choice can be intimidating, especially in the case of wine, which has so many other intimidating factors associated with it.

Anyone who can simplify the choice and gain the consumer’s trust stands to benefit in this complex market environment. Brands have therefore become increasingly important, both private brands like Mondavi and Mouton Cadet and more general types of brands like Brand Marlborough Sauvignon Blanc and Brand Argentina Malbec. Consumers understand the wines associated with these brands and so are more confident in making purchases. (Just having a strong brand is not enough, however, as the roller-coaster story of Brand Australia Shiraz demonstrates).

The risk with brands, however, is that they can sometimes go too far in their effort to simplify (the Shiraz problem). It is important that branded wines not sacrifice the qualities that make wine special. Wine that is just another packaged good has lost its “terroirist” soul — the winemakers just don’t “get it.”

The Terroirist Revenge

So Wine Wars argues that the future of wine will be determined by the battle between the market forces that will push wine into the world and the “revenge of the terroirists” that will push back. Because I am an optimist (I have “grape expectations”), I think the future is bright. But this requires that wineries “get it.” So, Karl asked me, who does?

Well, a lot of wineries get it, to be honest, but in the short time available I only mentioned three of them. Boisset gets it, for example. It’s a good example of a “global” wine business, with strong brands in both the Old World (France) and New World (California). But there is a strong terroirist element to Boisset that keeps it honest, both in terms of the desire for wine to express a sense of place and also a concern for the environment. Boisset has been especially active in packaging innovations, for example, that aim to reduce the carbon footprint of wine. That’s one way to “get it.”

Frog’s Leap gets it in a different way. It is an example of a producer that has developed a strong brand without dumbing down its wines or selling its soul. Frog’s Leap is such a strong brand in Japan, for example, that it was the featured winery in the Japanese re-make of Sideways. But Frog’s Leap proves that branding doesn’t have to sacrifice quality or reduce wines to a least-common-denominator status. Frog’s Leap stands for something, both in terms of wine and with respect to the environment (dry farming, sustainable methods). They show that it is possible to “get it” this way, too.

Global-Local Nexus

Chateau Ste Michelle is my third example. They are the largest wine producer in Washington State and the largest producer of Riesling wine in the world. The parent company, Ste Michelle Wine Estates, usually ranks about #7 among U.S. wine producers. The Chateau as it is known here in Washington knows about globalization (its wines can be found all around the world) and brands, too, but it hasn’t sacrificed its soul in the process. In fact, I think you could argue that it has tried to use the forces of globalization and brands very constructively — through international partnerships with Germany’s Dr. Loosen and Italy’s Antinori family, for example.

The Chateau collaborates with the Antinori on two projects: Col Solare (an ambitious winery in the Red Mountain AVA) and as partners in the Stag’s Leap Wine Cellars in Napa Valley. Working together, they leverage powerful brands and bring together international expertise, but the goal is to produce distinctly local wines.

The partnership with Germany’s Dr. Loosen has created Eroica, one of America’s most distinctive Riesling wines, and a series of Riesling Rendezvous conferences, which bring together terroirists from across the nation and around the world to share their expertise and plot strategies to promote Riesling without sacrificing quality. The Chateau really “gets it,” but in its own unique way.

The future of wine? A big question. Not everyone will “get it” but I’m betting that enough will to justify my grape expectations.

Wine Judges and their Discontents


“Do you trust me?” asks the hero in my favorite scene from the Disney cartoon Aladdin. The Princess hesitates (“What?)  as if trusting anyone is a radical idea. “Yes” she finally says and holds out her hand.

Who do you trust?

I think of this scene every time I read wine reviews or wine competition results. “Do you trust me?” is the obvious question when it comes to the scores and medals that wine critics and judges award. If we do trust we are more likely to reach out our hands to make a purchase. But trust does not always come easily with a product as ironically opaque as wine.

So do we trust wine critic Aladdins and should we trust them? I raised this question a few weeks ago in my report on “The Mother of All Wine Competitions,” which is the Decanter World Wine Awards and, after surveying the issues I promised an update from the meetings of the American Association of Wine Economists in Bolzano, Italy. This is the promised report.

The session on wine judging (see details below) was very interesting in terms of the research presented, not very encouraging from a trust standpoint. Previous studies that showed that wine judges at major competitions are not very consistent in their assessments were confirmed and attempts to improve their performance have not been very successful so far, according to expert analyst Robert Hodgson. The same wine can get very different ratings from the same experienced judge. It’s hard to “trust” a gold medal despite all the effort that goes into the judging process.

The Trouble with Economists

“If you put two economists in a room, you get two opinions, unless one of them is Lord Keynes, in which case you get three opinions.” according to Winston Churchill. Hard to trust any of them when they disagree so much.

Wine critics suffer the same problem as economists, according to research by Dom and Arnie Cicchetti, who compared ratings of the 2004 Bordeaux vintage by Jancis Robinson and Robert Parker and found a considerable lack of consensus. Two famous critics produced different opinions much of the time. Hard to know what to think or who to trust. Other presentations did little to increase the audience’s confidence in wine evaluators and their judgments.

Because tastes differ, wine enthusiasts are often advised to use good old trial and error methodology to find a critic with a similar palate — and then trust that critic’s recommendations. This conventional wisdom inspired Ömer Gökçekus and Dennis Nottebaum to compare ratings by major critics with “the peoples’ palate” as represented by CellarTracker ratings. CellarTracker lists almost 2 million individual wine reviews submitted by over 150,000 members.

Point / Counter-Point

Stephen Tanzer’s ratings correlate best to the CellarTracker crowd for the sample of 120 Bordeaux 2005 wines in the research database. But, as Ömer  suggested in his presentation, it is important to remember that the data can contain a lot of noise. Clearly the CellarTracker critics are well informed — they know what Parker, Tanzer, Robinson and the rest have written about these wines and their ratings may reflect positive and negative reactions to what the big names have to say.

The researchers detected a certain “in your face, Robert Parker” attitude, for example. In cases where Parker gave a disappointing score, CellarTracker users were likely to rate it just a bit higher while giving high-scoring Parker wines lower relative ratings. CellarTracker users apparently value their independence and, at least in some cases, use their wine scores to assert it. This is an interesting effect if it holds generally, but it also introduces certain perverse biases into the data stream.

Bottom line: The research presented in Bolzano suggests that there are limits to how much we do trust and how much we should trust wine critics and judges. The power of critics to shape the world of wine may be overstated or, as Andrew Jefford notes in the current issue of Decanter, simply over-generalized. “Opinion-formers are highly significant — for a tiny segment of the wine-drinking population.” he writes. “They remain irrelevant for most drinkers.”

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AAWE Conference Session #1B: Wine Judging / Chair: Mike Veseth, University of Puget Sound

  • Robert T. Hodgson (Fieldbrook Winery), How to improve wine judge consistency using the ABS matrix
  • Dom Cicchetti (Yale U), Arnie Cicchetti (San Anselmo), As Wine Experts Disagree, Consumers’ Taste Buds Flourish: The 2004 Bordeaux Vintage
  • Ömer Gökçekus (Seton Hall U), Dennis Nottebaum (U of Münster), The buyer’s dilemma – Whose rating should a wine drinker pay attention to?
  • Jing Cao (Southern Methodist U), Lynne Stokes Southern Methodist U), What We Can Do to Improve Wine Tasting Results?
  • Giovanni Caggiano (U of Padova) Matteo Galizzi (London School of Economics, U of Brescia), Leone Leonida (Queen Mary U of London), Who is the Expert? On the Determinants Of Quality Awards to Italian Wines