Coming Up: Second UNWTO Global Conference on Wine Tourism in Mendoza

unwtoThe second United Nations World Tourism Organization (UNWTO) Global Conference on Wine Tourism is coming to Mendoza, Argentina on September 28-30, 2017. You can view the preliminary program here).

Sue and I had the pleasure to participate in the first UNWTO global wine tourism conference in the Republic of Georgia in 2016 and are excited to take part in the Mendoza conference. I am scheduled to give one of the keynote speeches. My topic will be “Wine Tourism for Sustainable Development: Opportunities, Strategies, Pitfalls.”

The UNWTO has declared 2017 “The Year of Sustainable Tourism for Development,” explicitly linking tourism to the United Nations’ 17 sustainable development goals.  Tourism is a big global business with great potential to contribute to sustainable development if thoughtfully approached and carefully managed. Wine tourism can and does play a role, here, too.

2017

The UNWTO explains it this way:

Tourism is an important driver of economic growth, inclusive development  and environmental sustainability. It can make a huge contribution to the global efforts to deliver on the 17 Sustainable Development Goals agreed upon by 193 nations to reduce poverty and foster sustainable development worldwide.

2017 is the International Year of Sustainable Tourism for Development (IYSTD), an invaluable opportunity to broadcast to a global, high-level audience the potential of our sector to deliver on these universal Goals.

I am looking forward to the opportunity to discuss wine tourism as a path to sustainable development with the elite group who will gather in Mendoza. Mendoza offers fantastic opportunities for wine tourism, of course, but it is important that its benefits are broadly shared to contribute to economic and social development.

One problem with sustainability is that it can be approached in a way that is so vague that everyone agrees that it is important but no one does much to actually achieve it. I think the conference will present an opportunity to drill down into useful specifics and to share concrete examples of success and failure.

Hope to see some of you in Mendoza next month!

Big & Hot Wine: Cab Boom, Napa Bubble, Think Pink, Back to the Future?

Last week’s Wine Economist column featured a very basic “Big and Hot” analysis of recent U.S. wine market data, focusing on which parts of the market are the most interesting in terms of “big” total expenditures versus the fastest growing “hot” categories. (If you haven’t read the first column, click here to check it out.)

This week I invite you to give some thought to the implications of that information. Here are a few observations to get you started.

Cabernet Boom, Napa Bubble?hqdefault

Cabernet Sauvignon is both Big and Hot these days. Cab will soon eclipse Chardonnay as the best-selling varietal wine in the U.S. market.

When you combine this fact with the general up-market trend, where the fastest growing parts of the wine market are in the super-premium and luxury segments, it is easy to understand how and why the California wine industry is being transformed by a movement toward quality, with Cabernet Sauvignon in the lead.

The Cab Boom is at its fiercest in the Napa Valley, where sky-high grape prices translate into stratospheric land prices. According to the most recent Allied Grape Growers newsletter (see pdf here),  The average price of Cab grapes in the Napa district was over $6800 a ton. And that’s just the average. The best grapes? If you have to ask how much they cost, you probably can’t afford them.

Cabernet seems to be good as gold generally, especially in Napa.

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Fool’s Gold?

Or is it fool’s gold? In particular, is the Cab-driven Napa vineyard value boom sustainable or is it a bubble that will someday burst? I think the possibility must be considered.

Agricultural markets in general are subject to what my Econ 101 professor called a “cobweb” model of price dynamics, where today’s high price leads to over-investment, which causes next year’s collapse, which leads to under-production, which brings on a future price spike and so on.

You can see the cobweb graph in this photo of Nobel Prize economist Paul Samuelson. Some cobwebs converge to an equilibrium. Some, like the one that Samuelson drew here, explode.

Wine is different from the standard agricultural commodity that was the inspiration for the cobweb model. Its longer production cycle actually makes the potential for price swings worse than for corn or wheat.

Maybe the current boom isn’t a bubble and I am just doing that Chicken Little thing that I sometimes do.  But it seems to me that you have to take the possibility of a bubble seriously unless you have a very good answer (which I do not yet have) to the question, what exactly makes this time different? 

Rise of the Red Blends

The rise of the red blends, which I discussed last week, is an interesting trend that has persisted long enough to be taken seriously. I admit that I have changed my opinion about red blends over time. Initially I saw Hot red blends as a response to Cold market conditions for Merlot and Syrah/Shriaz. Merlot fell out of favor after Sideways and negative reaction to simple Aussie Shiraz wines somehow turned contagious, infecting Syrah generally.

Consumers, it seemed, didn’t want to buy Merlot and Syrah. But they actually liked to drink them! So surplus Merlot and Syrah, plus a few other varietals, were mixed into market friendly Red Blend. Voilà!  You can be a Merlot or Syrah snob and enjoy drinking it, too. What could be better?

Back to the Future?

But then red blends seemed to change, with different grape varieties in the mix, and attention turned to the surge in sweet red blend wines. The focus was on what the higher residual sugar said about the changing wine market generally.

Now I’m more interested in the fact that many of the most popular red blends are intentional creations aimed specifically at the Hot super-premium market segment. Some of the common characteristics of these wines are that they have strong brand identities that are not linked to particular wine-growing regions (hence California appellation) or specific grape varietal (proprietary blends).

The flexibility that this affords the makers of these wines is very useful as they can alter the blend within reason both in terms of grape varieties and grape source depending upon demand scale and supply conditions.  Customers are buying the brand, not the particular recipe.

In a way these two parts of the red blend phenomenon (sweeter wines and stronger focus on brands over regions or varieties) strike me as a “Back to the Future” trend, a throwback to the 60s and 70s, especially since some of the largest wine producers are responsible for many of the new successful brands that have emerged.  What’s different is that we have moved up dramatically on the price ladder.

Is this the end of varietal wines? No, but it is a reorganization of the market. Varietals were seen to be a step up over generic jug wines. Now some of the proprietary blends are positioning themselves above the varietals. Interesting!

Think Pink

The recent popularity of Rosé wine caught most observers (including me) off guard. Why should pink wines (and even relatively expensive pink wines) suddenly be in fashion? A new documentary is about to be released called “La Révolution du Rosé” — can’t wait to see how the Rosé rise is explained in this timely film.

Is Rosé a thing? The biggest skeptics I have met have been the European wine producers who, ironically, have the most to gain from this trend since they have a lot of good pink wines to sell. They have been burned before and hesitate to make big investments until they are convinced that pink wines is not just another short-term fad.

I have heard many theories about the Pink explosion. Here’s one that’s inspired by last week’s Big and Hot analysis. The Red Blend boom seems to be real. What about the White Blend boom? Well, it didn’t happen. Personally, there are many white wine blends that I love, but there has been no real movement in white wine blends to mirror the changes in red wine blends. Unless, that is, you Think Pink.

Rosé wines have a lot in common with the red blends.  They can be and are made from many different wine grape varieties and are sourced from dozens of countries and regions. Some consumers may be nerdy about which grapes, which regions, and (especially) which particular shade of pink they like best. But many more consumers are open to all sorts of possibilities, judging the wines on their qualities more than pedigree.mateus

Sue and I have been on a bit of a Pink wine binge recently drinking pink Cinsault from Lebanon, pink Cabernet Sauvignon from South Africa, and a variety of different pink blends from various regions in the South of France. They were all delicious and refreshing.

Pink wines are often dry, but they can sometimes be sweeter, too, which fits well with the Red Blend comparison. Maybe we are missing the white wine boom because we haven’t learned how to Think Pink?

So are Pink wines the Next Big Thing. No … but I only say that so that I can finish this column on another Back to the Future note. Pink wine is actually an old thing that has come full circle here in the United States. Don’t forget that one of America’s all-time top-selling Big and Hot imported wines was Proudly Pink.

Can you name it? Yes, I am talking about Mateus Rosé! Think Pink!

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New “Wine by Numbers” + Analysis of Global & US Wine Market Dynamics

 

wbnA new edition of Wine by Numbers was released a few days ago and it is required reading for anyone interested in global wine market dynamics. Wine by Numbers presents current data about global wine exports, imports and patterns of trade. It is a free resource provided by the Unione Italiani Vini, the Italian wine association.

Who Buys? Who Sells?

This special edition provides more data and deeper analysis, including essays by leading figures in the Italian wine industry about some of the most important export and import markets. Carlo Flamini of the Corriere Vinicola, which publishes Wine by Numbers, asked me to write an introductory essay for the “Who Buys” issue.

My essay presents a “Big and Hot” analysis of global wine market dynamics based upon the Wine by Numbers data. I invite you to download the pdf and check it out along with the rest of this valuable publication.

Writing the Wine by Numbers essay got me to thinking that it might be time to update my “Big and Hot” analysis of the U.S. market, so today’s column is part of an occasional series here at the Wine Economist where we analyze recent U.S. retail sales data looking for interesting and important trends. The data this week comes from Nielsen reports on U.S. off-premise table wine sales for the 52 weeks ending on April 22, 2017 as reported in the July 2017 issue of Wine Business Monthly.

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Here’s how “Big & Hot” analysis works. The idea is to look at which parts of the market are big (in terms of total sales) and which are hot (or not) based upon rates of growth, both over the 52 week period and in the most recent 4 weeks covered by the data.

Sometimes as we see below, big and hot are the same, but sometimes they are very different. There is often something to be learned in either case.

Big and Hot Price Points

The overall U.S. off-premise market for table wines as measured by Nielsen grew by 3.5 percent in the 52 weeks of this study, but grew at a faster 6.1 rate in the final four weeks, showing some welcome acceleration that might be related to  Easter and Passover holiday wine sales.

This growth was not distributed uniformly over all price segments. This WBM Nielsen report aggregates price data by three dollar increments ($0-$2.99, $3-$5.99, etc.) up to $14.99 and then $15-$19.99 and $20 and above. The Big price segment measured by total expenditure is $3-$5.99 followed by $9-$11.99. The data suggest that the market is increasingly bifurcated  — the $6-$8.99 price segment between the two Bigs is actually shrinking. A tale of two markets?

Value wines are still Big and probably always will be, but they are not especially Hot. The fastest growing price segment is $15-$19.99, where total expenditures increased by more than 10 percent for the 52 week period. Wines priced $20 and above were “Hot Hot.” Sales shot up by 17.6% in the final four weeks of the reporting period. Amazing!

Big and Hot Imports

The Nielsen retail data reported here show that domestic table wines account for about 72 percent of total off-premise sales. Imports are somewhat stronger in restaurants and in the sparkling wine category, too, and if these sales were included the split would be more like 70% domestic and 30% import.

Italy is far and away the largest import wine source in these data (and growing faster than the overall market)  followed by Australia, New Zealand, and Argentina. France, which is only #5 by total sales, leads the hot parade, however, with 15% growth for the year and more than 25% 4-week growth. New Zealand, which normally is top of the Hot table, grew almost as fast followed by up-and-coming Portugal.

While Australian sales were essentially flat (an improvement over their dismal performance in recent years), Argentina, Chile, Germany, and South Africa had falling import sales in the Nielsen data.

Big and Hot Varietals

Conventional wisdom has it that American consumer reach for wine based upon brand, price, and grape variety. Chardonnay is the Big grape variety, accounting for 18% of all wine sales in the Nielsen table. Growth in Chardonnay sales rose slightly less than the overall market in this period. Cabernet Sauvignon, however, is only a little behind Chardonnay after a Hot surge and will soon take over the top place.

Sauvignon Blanc is the hottest grape variety, with 10.8% growth. Pinot Noir and Pinot Gris/Grigio are also growing while many varietal wine types (Merlot, Syrah/Shiraz, Malbec, Riesling, Zinfandel) have flat or falling sales.

Where is the growth going if not to these classic varietal wines? Look to the next category, which I call the Wild Card wines.

Big and Hot: The Wild Cards144318l

The Hottest categories in today’s market are those wines that defy the conventional wisdom. Consumers are supposed to be drawn to the security of varietal wines, so it is a bit of a surprise that the “Red Blend” category is so Hot, growing at more than twice the rate of the overall market during these 52 weeks. “Sweet Red Blends” are even Hotter, with sales rise at more than triple the overall market growth rate.

The conventional wisdom also holds that pink wines are a pretty narrow category and that is true in part. Sales of White Zinfandel, once a really Hot pink wine ticket, fell by 5% in this period.

So the Rosé wine boom comes as a bit of surprise. Sales of  Rosé table wine selling at $8 and above per 750ml rose at a startling 61.7% for the year and 84.2% for the final four weeks of the survey period.

That last number (84.2%) is especially interesting and not just because it is so big. Remember that these Nielsen data cover the period that ended on April 22, 2017, so the final 4-week period included parts of March and April.  Rosé wine was long thought to be “summer wine,” but these surging sales came in early Spring. Maybe Rosé is a Thing now, and not just a summer Thing?

Economists like numbers like these, but what’s the story behind them? Come back next week and I will try to tease out some broader implications.

Celebrating Milestones for Canada (150 Years) & Canadian Wine (37 Vintages)

Milestones. Do they mark how far you have come on a journey? Or do they tell you how far you’ve left to go? Both, I guess, which gives them a (wine) glass half full / half empty quality that invites contemplation.

Canada and Canadian wine have reached important milestones recently and I think there is something to gain in contemplating them in tandem.

O Canada!150

2017 is the 150th anniversary of Canada’s confederation — a significant milestone in its national history. The past 150 years have not always been easy. Canada has been rocked both by external events (world war, global depressions, financial crises) and domestic social and political conflicts, too.

Canada’s version of federalism gives even more autonomy to its provinces than U.S. federalism gives to its states. The balance between federal and provincial interests has not always been smooth and tensions among the provinces (and even within them) and their people and cultures have not always been easily reconciled.

Canada has somehow negotiated these challenges and emerged, on its 150th birthday, in an admirable state — prosperous, generous (especially regarding refugee immigrants) and widely respected. O Canada, indeed!

Indeed, Canada is even celebrated today on Broadway, where the Tony-winning musical “Come From Away” draws audiences to consider the remarkable response of one Canadian town the unexpected arrival of refugees, in a way, from the September 11 terrorist attacks. (Prime Minister Justin Trudeau traveled to New York to see the show — his special guest was someone named Ivanka Trump!)

150 years is an important milestone, but nobody thinks Canada’s story is over. The future is sure to be full of challenges as the road twists and turns, rises and falls. But Canada and Canadians can look forward to the journey with confidence.

O Howard Soon!howard-soon1

July 24, 2017 is another important milestone. It is the day Howard Soon retired as Master Winemaker for Sandhill Wine in Kelowna, British Columbia, after an amazing 37 vintages. Soon is the dean of Canadian winemakers and this milestone is reason enough to celebrate his amazing career and Canadian wine, too.

The grandson of Chinese immigrants, Soon initially took his biochemistry degree from the University of British Columbia into the brewing industry before making a fateful pivot to wine, working his way from quality control to assistant winemaker to winemaker for Colona Vineyards, one of Canada’s largest wine firms.

The Canadian wine industry has changed dramatically over Soon’s remarkable winemaking tenure as it faced market challenges that are both external (increased competition from the United States after the NAFTA treaty) and domestic (the lack of a true “Canadian” wine market because of strong provincial control over alcohol sales). Soon has played an important role in helping the industry to weather the storms by setting a course to higher and higher quality.

When Sue and I first visited Vancouver many years ago the sommeliers refused to serve Canadian wines — they simply wouldn’t do it. It was an over-reaction because there were some good wines even back then, but an indication of their poor reputation These days, however, there is obvious pride in the wines all around and they are proudly featured and served.

Soon and his winemaking colleagues have both changed Canadian wine for the better and they have done something even more difficult — they have changed the way Canadians think about their wines. Quite an achievement.

Soon’s most recent project, Sandhill Vineyards, is in the vanguard of the quality movement (Sandhill appears in my next book Around the World in Eighty Wines). It was founded twenty years ago with the idea to feature terroir through a series of small production single-vineyard wines.soon

Soon has received virtually every recognition that Canadian wine has to offer and he reaches the retirement milestone at the top of his game. His signature 2014 Howard Soon Sandhill red wine was recently named #1 red wine of the year in the All Canadian Wine Championships.

(Signature wine is right — the label bears Howard’s actual signature!)

The wine is special. Grapes from the Phantom Creek Vineyard were co-fermented in the proportions found in the vineyard — a field blend! — then aged in new French and American oak for 22 months. Critic John Schreiner calls is a “triumphal achievement.”

Howard Soon and Canadian wine have come a long way but they both seem to have arrived at this mile post with enthusiasm to move forward to reach new goals.   Sue and I had dinner recently with Howard and his wife Wendy. Howard told us he plans to spend more time with Wendy and their kids and grand kids.

But the same drive that has pushed him to this milestone seems likely to carry him ahead to new challenges and adventures. Great winemakers like Richard Peterson and John Duval, to name just two, seem to move from one mile-marker to the next, always looking forward. It will be interesting to see where the wine road takes Howard Soon!

When is a Wine Tourist Not a Wine Tourist? Lessons from Cyprus

nelionWe were sitting on the terrace at Nelion Winery, perched on the famous Paphos-Troodos road, talking with winemaker Marinos Ioannou and tasting his excellent wines. (We loved a dry red made from the indigenous Ofthalmo grape variety and brought home a bottle to share with friends here).

A Happening Place

Nelion was kind of a happening place while we were there. Lots of traffic, lots of visitors. This is not an accident. The Paphos-Troodos road draws many visitors who come to Cyprus and want to see the signature sights of the island.

Nelion provides a range of experiences for them.  You can taste 3 wines for free or all 9 wines at the bar for €5 per person. Ten euro per head will get you a seated 9-wine tasting on the terrace with cheese and salami and €15 buys a winery and vineyard tour plus the terrace tasting and snack plate.

Tourists are critically important to the winery, which produces around 25,000 bottles each year and sells most of them at the cellar door during the tourist season, supplementing this with bulk wine sales to local residents during the off-season.

We heard lots of languages and accents — British, Russian, Israeli, French — and saw lots of wine go out of the tasting room into waiting cars. Marinos had been in the audience when I spoke at the wine symposium earlier in the week and it is clear that he already understood why I stressed wine tourism as an industry strategy.

No Wine Tourists Here?

nelion3So I was more than surprised when he brought up the topic and said in a matter-of-fact way that there are no wine tourists in Cyprus.

No wine tourists? What about all these people who come here and taste and buy your wine? They are tourists, most of them, but they aren’t wine tourists. And he was right.

So what is a wine tourist?

I often talk about wine tourism in the Napa Valley, where it is a booming industry, and I think the term applies pretty well to what is going on there. Most of the tourists are drawn there by the wine, although maybe it would be better to say that they are wine lifestyle tourists, since wine and winery are not the only parts of the package on offer in the Napa Valley.

In many places including Cyprus, what we think of as wine tourists are really tourists of a different stripe who take advantage of the opportunity to visit a winery and perhaps buy some wine as a sidebar to their main tourist focus. For these visitors, wine tourism is an alternative to the main agenda– something to do when rainy weather keeps you off the beach — or an attractive bonus stop on the road to Troodos, for example.

nelion2

Can Wine Compete?

Cyprus has lots of tourists — I think it is the island’s most important industry now — and has developed several wine routes to help tourists find their way around.  But as Marinos noted, real wine tourists are still few and far between. What needs to happen to change this?

At first glance it is difficult to imagine how wine can compete for tourists in Cyprus. Cyprus has important historical sites and a deep and attractive culture. Cyprus is a playground, with beaches and mountains to enjoy. Cyprus has wonderful food, with many regional specialties. Cyprus was great weather, which attracts European tri-athletes who want get a jump-start on training.  How in the world can wine compete?

Easier Said Than Done

The answer, as you have probably already guessed, is not to compete but to cooperate. Wine is part of Cyprus’s long history, a key component of its culture, and a perfect match for the great food. The key, as work done by the United Nations World Tourism Organization has stressed, is to bring these threads together with wine at the center.

This is not necessarily an easy task. Wine producers in Cyprus struggle at times to work together to promote their national “brand,” so expanding cooperation to include museums, archaeological sites, restaurants, hotels, national and regional tourist agencies and so forth is easier said than done. Creative use of the wine route concept, linking it to other regional structures, may be a good way to begin.

Nelion winery has made a modest start to this. The tasting room is also a sales room for a variety of local foods and some craft items. This shows the winery as embedded in the local community, with its food, culture, and beautiful landscape.

Fostering real wine tourism is not a Cypriot problem — it is everyone’s problem. Everyone who wants to see wine tourism prosper and achieve its great potential to develop wine, wineries, and wine regions has an interest in converting tourists who stop at wineries into wine tourists.

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This is the final column in our series on wine and wine tourism in Cyprus. Sue and I would like to thank once again the Cyprus Tourism Organization for inviting us to attend the Cyprus Wine Competition, to visit wineries, taste the wines, and meet such interesting people. Thanks to you all!

The Next New Zealand? Reflections on Cyprus Wine Industry in Transition

pafos“Cyprus wines? Not really sure I have ever had one. Do they make much wine in Cyprus?”

Many readers of this column would probably say something similar when asked about Cyprus wine, but the person I was talking to was a bit different.

I spotted him on the Lufthansa flight from Frankfurt to Seattle and remembered that he sat in front of me on the earlier Larnaca-Frankfurt leg. He did business in Cyprus and traveled there a lot, he told me. Drank wine there, too. But Cyprus wine? Not so much.

Mostly he drank the less expensive import wines while he was in Cyprus — wines from Spain, Chile or Australia. Maybe he tried one from Cyprus, he thought, but mainly he stuck with the value import wines.

In this respect my new friend’s consumption pattern reflects the Cyprus wine market in general. When Cyprus entered the European Union back in 2004 its ability to protect its domestic wine industry from cheaper imports was greatly diminished — imports account for about two-thirds of Cyprus wine sales now — and a new wine regime began to emerge.

Regime Change 101vasilikon

Unable to compete with very efficient international value wine producers, Cyprus had no choice but to reconfigure its wine sector to move up the quality (and price scale). And while Cypriot wines are not expensive by American standards (a bottle of truly excellent Vasilikon Xynisteri dry white wine cost less than $20 at a seaside restaurant in the tourist district — what a steal!) they are necessarily priced above the imports.

This was my first visit to Cyprus, but not my first experience with the types of changes that Cyprus wine is experiencing. My native Washington State, for example, had to make the quality leap in the 1960s when the “California Wine Bill” was passed by the legislature in Olympia and cheaper California wine flooded into the local market. The forced upscale move was the best thing that every happened to the wine industry here.

New Zealand faced the same sort of situation in the 1980s, when the collapse of their protected wine sector forced a dramatic economic course correction. Imports flooded in, foreign investment came, too, and a new export-oriented quality wine industry emerged. New Zealand today has the highest average export price of any country for still wines — an amazing achievement.

I found a similar story in Canada, which was forced to liberalize wine trade with the U.S. when the Nafta agreement was signed in the 1990s. In order to be competitive winegrowers in the Okanagan had to replace their hybrid vines with vitis vinifera — an expensive investment. But the results have been amazing.

The transition from volume to value is never easy and is always controversial (my South African friends can attest to this). Not all firms or regions will make it through the process successfully (there is a “survivor bias” to the data), but the success stories are compelling. This is the world that Cyprus wine has entered.

Revolutionary Vanguard

promara

Revolutions always have a vanguard. As is often the case, some winemakers took the first steps to higher quality before market conditions made this a necessity and we visited several of these pioneering wineries (see complete list below). One that stands out in my mind is Vouni Panayia Winery in the mountains near Pafos, which was the first private regional winery in Cyprus.

Vouni Panayia was founded in 1987 by Andreas Kyriakides, who had previously worked in the enology and viticulture section of the Department of Agriculture and so had a good understanding the Cyprus wine sector. He and his family set out to achieve quality at a time when quantity was still a strong factor and to do it using indigenous grape varieties at a time when international varieties were in vogue.

Kyriakides bet on his vision of the future and the family’s efforts have paid off. Sue and I were impressed with the deep red  Yiannoudi, which went so well with the roast lamb at lunch, and the delightful dry white Alina (made with Xynisteri variety). The white Promara (indigenous Promara variety)  was fantastic — a desert island wine candidate!

Going Native?

Vouni Panayia Winery might have helped start the quality revolution in Cyprus, but they have had plenty of help. The movement is advancing rapidly today and seems to be ready for the next challenge: gaining greater traction (and higher prices) in the domestic and carefully chosen export markets.

My first thought when I tasted some of the wines was that Xynisteri could be the key to this next stage — it is a delightful dry white wine that would appeal to Sauvignon Blanc drinkers. That first bottle of Vasilikon Xynisteri was followed by several others of that variety from various producers and we never had one that wasn’t delicious.

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This observation led, of course, to the idea that indigenous varieties should be the prime focus for both red and white wines. Vouni Panayia certainly makes a strong case for the indigenous grapes of Cyprus.

I still believe in the Cypriot native varieties, but as we tasted more and more wines I realized that Cyprus winemakers can do wonders with some of the international varieties, too. Maybe a hybrid strategy is called for.

My heart wants indigenous variety wines that are not found anywhere else in the world, but my pragmatic head says that Cypriot winemakers should make the best wines they can out of other grapes, too. We had wonderful Syrah and Cabernet Sauvignon. Why not? So long as native varieties are not forgotten. The quality of the best of these wines is so high that I think they will thrive.

The Next New Zealand?

So, to return to the headline at the top of the page that I teased you with, is Cyprus likely to be the next New Zealand — a small, almost forgotten wine-making island that makes the transition from volume to value with spectacular success?

It is not a ridiculous question. Back in the mid-1980s not many could have imagined much less boldly predicted the amazing growth that New Zealand has achieved in the last 30 years. That same conversation (Do Kiwis make wine?) that I had about Cyprus at the start of this column could have been about New Zealand wine back then.

That said, Cyprus is not likely to be the next New Zealand. No one is. New Zealand’s unexpected success was the product of global market conditions that don’t exist in exactly the same way today due to the rapid expansion of wine production in other New World nations. The market space that New Zealand has been able to fill doesn’t exist in the same way for other wine exporting countries any more.

But Cyprus doesn’t have to be the next New Zealand to be successful. Wine-makers on this small island have great potential and if they can only work together to realize it in domestic and international wine markets, that will be good enough.

Maybe in 30  years we will ask if some other country has the potential to be the next Cyprus? Wouldn’t that be delicious!

2017 Cyprus Wineries Visited

Ezousa Winery

Nelion Winery

Tsangarides Winery

Tsiakkas Winery

Vasilikon Winery

Vlassides Winery

Vouni Panayia Winery

Zambartas Winery

Look Through the Rainbow: Cyprus Wine’s History of Boom and Bust

rainbow

We were sitting in the sleek, modern Vlassides Winery tasting the wonderful wines of Sophocles Vlassides and hearing his strong views on wine, Cypriot wine, and his own ambitious winery project, when it started to rain.

Weather can be complicated in these mountains and soon the sun began to shine through the showers creating first a simple rainbow, then a richer multicolored arc, and finally a pair of rainbows nestled together. From our winery perch we could see both ends of the rainbow (where pots of gold are said to rest) firmly rooted in the vineyards below.

Rainbow, vineyard, pot of gold — what a perfect metaphor for Cyprus wines, I thought. But the sharply analytical Sophocles Vlassides (who studied winemaking at UC Davis as a Fulbright Scholar) popped my mental bubble. Rainbows are pretty, but we were really looking at the wrong thing. If you want to understand Cyprus wine today, don’t look at the rainbows, look through them to the mountain across the valley.

If you look through the rainbows on Sue’s photo above you will see the remnants of dozens  of terraces that once were planted to vines that, along with hundreds of similar vineyard areas, formed the basis of the great Cyprus wine boom.

The Surprising History of Cypriot Wine

I had never tasted a Cypriot wine before we arrived in Pafos for the Cyprus Wine Competition. You might not have tasted one either because most of the wines are consumed in Cyprus these days and only a trickle enters export market pipelines. But this wasn’t always the case.

Cypriot wines were once well known and some even famous in European wine circles according to the Oxford Companion to Wine‘s history. Pliny the Elder, the Roman “Robert Parker,” praised them, for example. Cyprus fell under Venetian influence for a time and its  wines circulated widely. I have a reproduction of a book called Wines of Cyprus by Giovanni Mariti that was written to explain Cypriot wine to international consumers. It is dated 1772. and was first published in Florence.wines-of-cyprus

Commandaria, Cyprus’s signature sweet wine, commands an important role in the country’s wine history. Indeed, Wines of Cyprus talks of little else. Along with Tokaj, Vin de Constance and a few other treasured sweet wines, Commandaria was a “King of Wines and Wine of Kings.” Ironically, my book was written during the period of Ottoman rule when the Cypriot wine trade and the industry itself slowly declined in importance.

Cyprus came under British administration between 1878 and 1960 (so UK electrical plugs are needed and autos drive on the left side of the road). Cyprus “sherry” became an important export during this period — we saw a few old bottles at the Cyprus Wine Museum in Erimi Village — but this trade has faded away, too.

Look Through the Rainbow

A variety of circumstances led to a boom in production and export of cheap basic wines and grape must concentrate (some of which was reconstituted and fermented as British wine) in the years after the British exit.  The grapes to make these wines (international and indigenous varieties) came from the vineyards we saw (and many others like them) when we looked through the rainbow at Vlassides.  Yields might have been high in those days, but it is pretty clear that production costs were high, too. No machine harvesting on steep terraced slopes.

The Cyprus export boom collapsed in two stages according to the industry people we talked with.  Competition from cheaper New World producers such as Chile and Australia crowded Cypriot wine out of some markets. The collapse of the Soviet Union drained dry previously reliable Eastern European markets for basic wine. The Cypriot bulk wine boom went to bust.

A Quality Revolution

The movement from unmarketable quantity to desirable quality began in the 1980s, according to the Oxford Companion, led by the “Big 4” producers: KEO, SODAP (a cooperative), ETKO and Loel. Change accelerated after 2004 when Cyprus joined the European Union. Subsidies to cheap wine exports ended and uneconomic vineyards like the one we saw were grubbed up.

The contrast between past and future was clear to see as we talked wine with Sophocles  Vlassides at his modern facility tasting the tense, structured wines that he makes from international varieties (perhaps reflecting his UC Davis training) and indigenous varieties, too.  Sue and I took home a bottle of his excellent Syrah and Panos Kakaviatos, who was in our media group, opted for an unexpected Sauvignon Blanc.

What is the state of the Cyprus wine industry today? Are there pots of gold at the vineyard rainbow ends ? Or have I stretched this metaphor a bit too far? Come back in two weeks (after Independence Day) for observations and analysis.

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In the meantime, here are some rainbows for you to ponder.