Book Review: Intriguing Variations on a Wine Globalization Theme

9781107192928Wine Globalization: A New Comparative History edited by Kym Anderson and Vicente Pinilla, Cambridge University Press, 2018. (See also The World’s Wine Markets: Globalization at Work edited by Kym Anderson, Edward Elgar, 2004.)

The fact that wine is such a global business was one of factors that motivated me to study it seriously in the first place. My 2005 book Globaloney (named a Best Business Book of that year by Library Journal) included a chapter that examined the evolution of global wine markets and that got me hooked.

Globalization’s Terroir

Globaloney was a heart a series of case studies that together argued that  globalization is not an  unstoppable tsunami that sweeps away all before it, but rather a complex set of forces that play out differently in different industries. Fast food globalization, for example, is different from slow food globalization. And while high fashion and used clothing are both traded in global markets and acted upon by some of the same general forces, their specific patterns and impacts are very different.

Globalization reflects its terroir, I used to tell audiences at book talks, and the volume that Kym Anderson, Vincente Pinilla, and their talented team of authors have assembled take this idea one step further. The core of the book is a collection of historical case studies of how national wine industries have developed in both the old and new wine worlds in the context of global markets.

Two things struck me as I read the studies. First, I was excited by how detailed and interesting this research is. Fascinating. Irresistible. I couldn’t wait to turn the page to read more.

The second striking feature was how much wine globalization really does reflect its terroir. Although there are some common themes (the impact of phylloxera and the Great Depression, for example), the fact is that wine has developed and evolved in distinctly different ways in different parts of the wine world. Globalization has been an important factor in many cases, but not in the same way everywhere.

Argentina’s Unique History

Let me use the excellent chapter on Argentina by Steve Stein and Ana Maria Mateu as an example. Argentina’s wine history has been shaped by a series of strong internal and external forces. Let’s start with the grapes. Spanish missionaries from the Canary Islands brought high-yielding low-quality Criolla grapes with them and this set the tone for wine-making and drinking for much of the country’s history.

French wine authority Michel Aimé Pouget was lured away from his work in Chile to improve wine quality and he brought higher quality grapevines, including especially Malbec. Alas, the authors tell us, Malbec was frequently valued less for the quality of its wines than the fact that they were dark and strong and could therefore successfully be diluted with water without completely losing their identity as wine. Low standards like this defined the domestic market for decades.

British influence, in the form of the railroads that they financed and helped to build, had a profound impact on Argentina wine. Prior to the railroads that connected Mendoza and San Juan with bustling Buenos Aires, the domestic wine industry was quite small.

Mendoza and environs made wine for local consumption. Buenos Aires residents (more and more of them immigrants from Spain and Italy) filled their glasses with imported wine. Lower land transportation costs changed everything  when the train line was completed, expanding the internal market and fostering a wine boom.

Anticipating the impact of the railroads, Mendoza officials sent recruiters to Europe to bring back experienced Spanish and Italian wine-growers and wine-makers who expanded the industry. With phylloxera spreading at home and hard times all around, the difficult decision to uproot and replant families and businesses to immigrant-hungry Argentina was easy to  make.

Peso Problems

The list of international and global forces and effects in Argentina is a long one and I  only scratch the surface here. In recent decades, for example, the government’s strong-peso policy of the 1990s (the peso was linked to the U.S. dollar) made imports of wine-making equipment and technology artificially cheap and wineries were quickly upgraded. The collapse of this monetary system and the peso crisis that followed made the output of those wineries artificially cheap to foreign buyers, a factor in the country’s wine export boom.

Rapid domestic inflation combined with an unyielding exchange rate earlier this decade made the peso over-valued again and the wine export boom fizzled. Policies are changing now. Perhaps the export boom will return, albeit in a different form. Too soon to tell at this point.

Argentina’s wine history and its experience with international and global forces is fascinating and other chapters in the book are equally interesting. Wine’s story is a complicated one, with each nation developing and responding in a different way depending on many factors including history, culture, institutional structure, timing, and government policy.

This book is a great resource for anyone interested in understanding the wine world today and how we got here. The volume concludes with “Projecting Global Wine Markets to 2025” by Kym Anderson and his colleague Glyn Wittwer, a set of forecasts and analyses based upon their econometric model of global wine markets.

Economists Know the Price of Everything …

Wine Globalization has many strengths that recommend it to a broad readership and one obvious weakness that will discourage some who would otherwise benefit from studying it: the price. If you are not familiar with the academic book market, the price of this volume will take your breath away: $139.50 for the hardback and $124 for the Kindle on Amazon.com.

This is how books are often priced by academic publishers, who need to spread high fixed costs over small expected press runs.  If you have a son or daughter in college (or are in college yourself), you already know what textbooks cost these days. Incredible.

But all the news about price is not so discouraging. Kym Anderson and his colleagues at the Wine Economics Research Center at the University of Adelaide provide an enormous array of useful and interesting global wine market data (some of which informs the Wine Globalization volume) for the attractive price of … free. Free!  Here are some of the data sets you might want to explore. (You can find even more data here.)

Anderson, K., S. Nelgen and V. Pinilla, Database of Global Wine Markets: A Statistical Compendium, 1860 to 2016 (November 2017)

Anderson, K., S. Nelgen and V. Pinilla (with the assistance of A.J. Holmes), Annual Database of Global Wine Markets, 1835 to 2016 (November 2017)

Holmes, A.J. and K. Anderson (2017). Annual Database of National Beverage Consumption Volumes and Expenditures, 1950 to 2015 (July 2017)

Wine Globalization is a valuable contribution to our understanding of world wine markets. Highly recommended. And that’s not globaloney!

What’s Ahead for Wine Tourism in Mendoza? Lessons from a Rock Opera

monteviejoThe United Nations World Tourism Organization’s global wine tourism conference in Mendoza, Argentina was full of contrasts as you might expect in a high desert region that is punctuated by isolated vine-filled green oases.  The morning sessions featured conventional conference formats — speakers, panels, Powerpoint slides, dark rooms, coffee breaks (and really good simultaneous translation — thanks for that!). And then …

Hardly Working?

The afternoon and evening session moved out of the conference center and into the wineries, so that international participants could take in the landscape, marvel at the wonderful winery architecture,  appreciate the warm hospitality, sample the many winery experiences, and of course enjoy food and wine as any wine tourist would.

Does this sound like hard work? Very few of our friends feel sorry for us when we post about these experiences on Facebook, but it really is work because Sue and I are always observing and analyzing both what the wineries do (and how they do it) and the reaction from their guests.

moonshot2This was particularly interesting at the UNWTO conference because our fellow delegates were mainly tourism people who see opportunities in wine whereas Sue and I come at this more from the wine side, where tourism is one important element. The organized winery visits were interesting to us because they highlighted the tourism offerings rather than the wines themselves.

A reception at Bodega Séptima, for example, showed off its striking architecture and invited guests out to the big patio to stare at the moon and stars through telescopes while sipping wine. Wine tourism and astrological tourism combined.

A visit to Bodega Norton featured an opportunity to ride bicycles through the vineyards followed by a late lunch and then a chance to paint with wine (I saw a rabbit in the vineyard, so that was my artistic contribution). Norton’s program stresses active involvement, which is always more engaging than passive participation.

asadoThe historic buildings and ancient vines were a highlight of our asado lunch at Bodega Nieto Senetiner, where we were treated to a sensory experience organized around a Torrontes perfume and a Malbec cologne. This was interesting even though it violated the first rule of a wine tasting — don’t introduce any scents that might mask the wines’ aromas. It worked as a tourist experience, but would turn off any serious wine lover.

The Missing Link?

Sue and I enjoyed these experiences, but we noticed that something was often missing. The wineries worked very hard to show off their delightful wine tourist offerings, but they missed many opportunities to tell their stories and reinforce their brands. Perhaps this was by design because of the special character of the UNWTO audience, but it seems to me that it is always important to tell your story and build your brand.

Two of the most effective wine tourism programs we have experienced are Larkmead Vineyards in Napa Valley and Sandeman in Porto. The two wineries differ in almost every way but this: there is a clear story, which is told in several ways, and everyone you meet tells the same essential story, reinforcing the message.

A goal might be for each winery visitor to encounter the defining story three times in three different ways during a visit and to be able to share it with friends. You might call it the “Tommy” tactic (after the rock opera composed by The Who). See me, feel me, touch me, heal me. Stimulate all the visitors’ senses and touch them in a way they won’t soon forget.

The Next Step?

Perhaps this is the next step that Gabriel Fidel hinted at in his conference presentation, which encouraged the Mendoza wine tourist industry as well as the rest of  us to think beyond the current focus on creating experiences.  The facilities in Mendoza are world class and the experiences, including food pairing sessions, vineyard walks and rides (on both bikes and horses), and so forth are great, too.

All the pieces are here in Mendoza. Now the wineries and local wine tourism officials need to steal a tune from Tommy so that they all come together with the defining stories of the wineries and the region to create an total experience that resonates with visitors from around the world.

amdes

Four Takeaways from the Global Wine Tourism Conference in Mendoza

ucoSue and I are back from the second United Nations World Tourism Organization global wine tourism conference in Mendoza, Argentina. It was an intense and interesting few days in a welcoming and dynamic part of the wine world. Here are a few things we think we learned at the conference. More to follow.

You’ve Come a Long Way, Baby

Mendoza has come a long way as a wine tourist destination and they are justifiably proud of their accomplishments. Unlike Napa Valley, which is next door to cosmopolitan San Francisco and fast-paced Silicon Valley, Mendoza takes a bit of effort to visit, so its emergence as a tourist hub, is noteworthy. We were impressed with the renovated airport, which features more flights to more places more often and will surely help boost wine tourism in the future.

When Sue and I visited Mendoza a few years ago we noted that it wasn’t very easy for an independent traveler to visit many of the wineries and this problem has been addressed in several ways. Some wineries have opened tasting rooms in the city, effectively bringing the vineyard to the tourist. Among the other efforts is a special hop-on hop-off bus that visits select wineries. How convenient! We also saw many tour operators who put together custom tours of wineries as well as the many other visitors options in region.

Mendoza has a lot to be proud of when it comes to wine tourism, but the many Argentine officials and local dignitaries who spoke at the conference’s first session perhaps could have shown greater restraint. Bad news: the talking went on so long that lunch, which was scheduled for around 2 pm, was actually served closer to 6 pm. Good news: our lunch began with deep-fried empanadas served hot and fresh outdoors in the Bodega Norton vineyard. Incredible.lunch2

Don’t Look Back

Gabriel Fidel is a sort of Renaissance man. Scholar, business leader, public servant, politician — he wears many hats in Mendoza and he has been influential in the rise of the wine and wine tourist sectors.  His talk charted the evolution of wine tourism in this region and included a warning not to be too proud of the past, because the future holds more challenges.

Twenty years ago, Fidel explained. The challenge was to get wineries to accept visitors at all. They just get in the way! Okay, then once wineries got the messages about the importance of visitors there was a need for facilities, then services and trained staff, and then finally some attention to creating experiences beyond the typical tasting room offer. Wine tourism does not take place in a vacuum, so wineries need to match the programs in other wine regions and take into account the level of service that tourist expect in non-wine settings, too.

Now the challenge, Fidel said, is to move ahead again rather than just taking satisfaction in past achievements. Don’t look back, Satchel Paige said, something might be gaining on you. And in this competitive environment, it is gaining fast.

Wine Tourism and Sustainable Development

My contribution to the conference was a short speech on how wine tourism can be a tool for sustainable regional development. Done right, I argued, wine tourism can benefit people, planet and profit. Done wrong … well, there can be real problems. I cited specific success stories as well as critical issues, highlighting the strategies needed to anticipate and address problems.

One journalist who attended the conference wrote to me to say that she hadn’t really thought much about the impact that tourism can have on local people and the  world they live in and now she could appreciate its importance. I guess my message got through.

We visited one winery where our guide quite unintentionally revealed how wine tourism transforms local communities.  His father was in the construction business and, were it not for winery development, that’s what he would be doing, too.

But now the opportunities are in wine tourism and hospitality more than traditional occupations such as construction.  His family struggles a bit to understand the changing local labor scene (and the changing nature of work itself) and how exactly he can earn a living drinking wine, as they see it, and talking to strangers like us all day rather than working hard to make, build, or grow things.

Mendoza to Moldova

The transformative impact of wine tourism will be tested in Moldova, which was named as the host nation of the 2018 UNWTO global wine tourism conference. Moldova is probably the most wine-dependent country on the planet. Wine is the largest export category and the country is working very hard to open up markets in the west and in Asia and to reduce its long-standing dependence on the unreliable Russian market for wine sales.

Selling more wine at higher prices would be great for Moldova, but wine tourism is perhaps strategically more important because of its ability to increase rural incomes outside of wine production and sales. Wine tourism done right stimulates the hospitality industry with potential impacts on crafts and other local industries. Wine tourism has great potential to draw visitors to Moldova and stimulate rural development.

Hosting an international conference like this is a big, expensive job. Good luck to our Moldovan friends as they plan next year’s events.

>>><<<

Sue took the photos above — the view from Bodega Moneviejo in the Uco valley and the delicious late-lunch empanadas at Bodega Norton.

Wine Tourism in Mendoza: Rethinking Best-Practices with the UNWTO

unwto

The Wine Economist will take a break for the next two weeks while Sue and I travel to Mendoza, Argentina for the second Global Wine Tourism conference organized by the United Nations World Tourism Organization and hosted by the Argentina Ministry of Tourism. It will be great to return to Mendoza and to have a chance to discuss wine tourism strategies with both old friends and new ones.

Asking Questions, Rethinking Answers

Good conferences succeed because they work on several levels at once. Keynote speakers, for example, are most useful if they stimulate discussion among conference participants to allow them to shape and share their own thinking.

My keynote is about “Wine Tourism for Sustainable Development: Opportunities, Strategies, Pitfalls” and my goal is not to tell people what to think and do but instead challenge them ask new questions and rethink the answers to old ones.

The UNWTO welcomes this kind of thinking and rethinking. The organization recently adopted the UNWTO Framework Convention on Tourism Ethics, for example., reflecting the fact that global tourism is now big business and its significant economic, social and cultural impacts must be fully considered.

Thinking and then acting — that’s what it’s about. Other speakers will share their experiences from around the world, giving us all a lot to think about!

The UNWTO has developed a wine tourism framework or prototype. Yolanda Perdomo, Director of the UNWTO Affiliate Members Program, will present the prototype and Gabriela Testa, President of Ente Mendoza Turismo, will discuss how it is being implemented in the Mendoza region.

Mendoza has enormous potential for wine tourism as I explained in my 2013 book Extreme Wine. I highlighted two very different wineries for their tourist experience: Tempus Alba and Salentein.

Situated close to Mendoza city, Tempus Alba hosts many young wine tourists who visit on bicycle. They enjoy the wines and food at the restaurant, of course, and receive an education about Malbec and the vineyard.  The vibe is casual and fun, but the approach is seriously thoughtful. I’m a big fan of what Aldo Biondolillo and his family are doing at Tempus Alba.

11120_killkaBodegas Salentein is located high in the Uco Valley and I don’t think many people bike there from Mendoza. It was the first destination winery in this now-booming wine region and features an art gallery, a stunning barrel room dubbed the “wine cathedral” and fine dining, too. As is the case of many Mendoza wineries, the architecture rivals and reinforces the dramatic Andes mountain scenery. Fantastic.

Theory and Practice

The UNWTO conference balances the theory and practice by including a number of local wine tourist experiences in the afternoon sessions. These winery visits will be a lot of fun, of course, but they will be most useful if participants give serious and critical consideration to what works (and why) and what could work better (and how can this be achieved). And then the trick is try to apply those sharpened critical skills to wine tourism offerings, strategies, and policies back home.

I will paste below the tentative list of wineries and experiences that will be available to the UNWTO conference participants and, by the way, to adventurous wine tourists generally when they visit Mendoza. The list gives a concrete sense of the diversity of wine tourism offerings available in this beautiful part of the world.

Come back in two weeks for more Wine Economist! Cheers (and adios!).

>><<<

  • Bodega Norton: Restaurant La Vid, Chef Patricia Suárez Roggerone Experience: Winery bicycle tour
  • Bodega Renacer: Restaurant Renacer, Chef Sebastian Weingand Experience: Virtual reality and winery visit by an oenologist, The Appassimento
  • Susana Balbo Wines: Restaurant Osadía de Crear, Chef Marianela Pizzonia Experience: Blending competitions
  • Bodega Terraza de los Andes: Restaurant Residencia Terrazas de los Andes, Chef Noelia Scquizziatto Experience: Tasting from barrels and cooking class, deserts
  • Bodega Lagarde: Restaurant El Fogón, Chef Lucas Olcese Experience: Historic winery tour, which is DOC MALBEC certified and was the first denomination controlled by
    America
  • Entrecielos Luxury Wines & Spa: Restaurant Katharina, Chef Federico Castro Experience: Limited Edition Vineyard Loft & Spa Hammam, traditional Turkish relaxation and leansing methods
  • Bodega Trivento: Restaurant Espacio de Arte, Chef Sebastián Flores Experience: Art & Wine; Delhez family wine exposition; Bicycle tasting tour in Finca Los Vientos through its sustainable irrigation system
  • Bodega Trapiche Restaurant Espacio Trapiche, Chef Lucas Busto Historic winery and the arrival of the railway. Re-creation of two programs that are part of the Wine Tourism Events Calendar: “Wine and Cinema” and “Tango in the Vineyards”
  • Casa Vigil: Restaurant Casa Vigil, Chefs Santiago Maestre and Federico Petit Experience: Dante Alighieri’s The Divine Comedy in the heart of Chachingo, The Inferno, The Purgatorio, and The Paradiso from Alejandro Vigil’s point of view
  • Bodega Vistalba: Restaurant Vistalba, Chef Jesus Cahiza Experience: Royal Staircase to Calicata and tasting of exotic varieties
  • Bodega A16: Restaurant Finca Papa Francisco, Chef Felipe Bakos Experience: Art exposition at Plaza de Esculturas, “Augure Stone” by local artist Alfredo Ceverino and Cooking Class, Regional Argentinian Cuisine
  • Bodega Chandon: Bistró Chandon, Chef Maitas Gil Experience: Travel through the paths of Chandon, the first subsidiary of Moet Chandon outside of France
  • Bodega Ruca Malen: Restaurant Ruca Malen, Chef Juan Garcia Ventureyra Experience: Brush & Bottle, Wine Cathedral
  • Bodega Nieto Senetiner: Restaurant Nieto Senetiner, Chefs Daiana Farías, Jorge Cardozo and Gabriela Barrientos Experience: Wine scents experience
  • Bodega Tierras Altas: Restaurant Juana María, Chefs Blanca Espinosa and Lucca Evangelista Experience: Malbec blind tasting
  • Bodega Los Toneles, an urban heritage winery.
  • Bodega Monteviejo: Restaurant Monteviejo, Chef Nadia Haron
  • Bodega Solo Contigo: Wine village, visit Solo Contigo WTC
  • Bodega Corazón del Sol: Wine village, visit ¨Tasting the Willows¨, wines of the Revana family
  • Salentein: Restaurant Killka, the Wine Cathedral
  • Bodega Andeluna: Restaurant Andeluna, High altitude wines from Valle de Uco
  • Bodega Piedra Infinita: Restaurant Piedra Infinita

Beyond Malbec: Looking for Signs of an Argentina Wine Export Revival

catenaAbout this time last year I wrote a pair of columns about prospects for a revival of growth in Argentina wine exports to the United States. Argentina was once the fastest growing imported red wine source (New Zealand has that distinction for white wines), but sales plateaued for a variety of reasons that I analyzed.

Feelin’ Groovy?

Can Argentina get its groove back? My 2016 columns were optimistic, focusing on changing politics and economics in Argentina, but, I warned, the U.S. market has changed, too, and Argentina will need to bring different products and strategies to the game to be successful.

Argentina cannot hope to simply ride the inexpensive Malbec “signature varietal” horse to renewed export success. The U.S. market is now filled with easy-drinking  “Red Blend” wines that compete in the space that Malbec once dominated.

Argentina needs to think of itself “like a normal country,” I said, which in this case means emphasizing  wines at higher price points where the market growth is today, focusing on terroir and other elements of product differentiation and moving beyond Malbec without in any way abandoning that grape variety.

Early Evidence?

The December 2016 issue of Market Watch magazine includes an article by Angel Antin titled “Argentina Comes of Age” that provides a cautiously optimistic update analysis. No significant change in direction is shown in the data for 2010 – 2015, but lots of anecdotal evidence of new ideas and new directions is presented.

Data for Argentina’s wine exports in the first nine months of 2016 provided by Wine by Numbers shows stable total exports over this period, with lower U.S. and Canada shipments offset by rising sales to the U.K. market.

The recent success in the U.K. market is obviously welcome for Argentina wine producers, but there is great uncertainly about the future due to Brexit. It would be better to see a broader pattern of export growth. On the whole, it is still too soon to draw any firm conclusions  about the impact of the Macri policies on wine exports. Stay tuned.

Redefining Argentina Wine

A personal note: my optimism was encouraged recently when I surveyed the “South America” shelf of the neighborhood Metropolitan Market and found just the sort of wine that I called for in my analysis last year. It was a Catena Appellation San Carlos Cabernet Franc 2014 selling in the $20-$25 price range.

This wine is an example of how Argentina can add layers to its identity to expand market appeal. It is Cabernet France not Malbec and the packaging stresses terroir. The wine is from a single high-mountain vineyard (El Cepillo is at 3900 feet) in the San Carlos region. The regional element is highlighted by the label’s antique map (although the image is of Argentina generally and not the specific San Juan area).

The idea is clearly to differentiate this wine in ways that appeal to wine drinkers who are seeking both authenticity and a different experience. The Cab Franc is part of an appellation series of Catena wines that also features two region-specific Malbecs, a Cabernet Sauvignon and a Chardonnay.

Catena is certainly not alone in thinking about their wines and marketing them in this way. (We recently enjoyed a less expensive but well made and nicely packaged Santa Julia Reserva “Mountain Blend” Malbec-Cab Franc from the Uco Valley.) That’s a good thing because no single wine or producer is going to redefine and expand the market. The potential is certainly there. Hopefully we will see positive results in the data before too long.

Flashback Friday: Malbec & Maradona

51gap2blvbgl-_sx332_bo1204203200_Here is another Flashback Friday column in honor of Malbec World Day, which Wines of Argentina has set for Sunday, April 17. This is a book review from 2012 that links Malbec, Argentina’s signature grape variety, with Diego Maradona, one of that country’s legendary soccer stars.

>>><<<

Ian Mount, The Vineyard at the End of the World: Maverick Winemakers and the Rebirth of Malbec. Norton: 2011.

Malbec and Maradona

One of the most stunningly creative student papers I’ve received in more than 30 years as a college professor was written by a first year student enrolled in my introductory International Political Economy class. We were studying Argentina’s latest financial crisis and she analyzed the situation not just through facts and figures but rather by telling the story of Diego Maradona, the legendary soccer player who achieved great success on the global stage but succumbed to the pressures, stresses and temptations that came with it.

Maradona is always measured against Pele, the Brazilian star who is often proclaimed the greatest soccer player in history, and every talented young Argentinean forward is compared to  him (Messi is only the latest “next Maradona”). But an air of tragedy is unmistakable despite Maradona’s heroic achievements. This same air, my student wrote, hangs over Argentina’s politics and economy, and then she proceeded to analyze Argentina’s political economy history in detail in  terms of the Maradona story. It was, in both conception and execution, a brilliant analysis.

Ian Mount’s new book on Argentinean wine, The Vineyard at the End of the World, is also brilliant and in much the same way. Like my student’s paper, it can be read at several levels. It is, first and foremost, a history of the Argentinean wine industry from its roots with the Spanish explorers to its current spectacular flowering.

Although Argentina has been a major wine producer for literally centuries, it has only arrived on the global stage in the last ten years. Within Argentina its long history is heavy baggage that sometimes weighs it down. For the rest of the world, however, Argentina is a new discovery and the lack of prior experience of and attitudes toward its wines has arguably been an advantage.

Mount fills us in on the history and serious readers will appreciate the added depth this gives to the appreciation of the wines themselves. It also provides an interesting contrast to neighboring Chile and its wines, whose history is perhaps better known. But that’s only the beginning.ce1509cd596b49b050639487b3d03dcc

 Lucky Survivors

Malbec is a second theme, which is understandable because Malbec is king in Argentina right now. Malbec from Argentina has been one of the hottest product categories in the U.S. wine market is the past few years. But today’s Malbec (like Maradona) is a lucky survivor of Argentina’s booms and busts – a lot of Malbec was grubbed up during the market swings and swirls. It makes me appreciate wines (like one of our favorites, Mendel Malbec) that are made from the surviving old vine blocks.

More than anything, however, this is a history of Argentina itself told through wine, making this a book that deserves a very broad readership. Based on my previous research, I knew that Argentina’s politics and economics were reflected in the wine industry, but I didn’t know how much. Come for the Malbec, stay for the politics, economics and personal stories of those who succeeded or failed (or did both) and try to understand the country and people of Argentina.

Significantly, the book ends with a sort of Maradona moment. In terms of wine, Argentina has won the World Cup with Malbec, although the country must share the glory with international consultants (like Paul Hobbs and Michel Rolland) and foreign investors and partners (too numerous to mention). But for all its strengths the industry is still somewhat fragile, struggling to overcome the problems of the domestic wine market that it still depends upon and the domestic economy in which it is embedded.

After decades of “crisis and glory,” Mount sees a  bright future for both Malbec and Argentina. Let’s hope he’s right and the Maradona moment passes.e91c4e409ca6d78d656bc85a82fa6422

Ian Mount’s new book is a valuable addition to any wine enthusiast’s library. Mount provides a strong sense of the land and people of Argentina and the flow of history that connects them. Argentina is unique, as Mount notes early on, in that it is an Old World wine country (in terms of the nature of its wine culture) set in the New World, so that its history is broadly relevant and deeply interesting.

I studied the Argentina industry before going there last year, but Mount taught me things I didn’t know in every chapter. I love Laura Catena’s Vino Argentino for its account of the history of wine in Argentina told through the Catena family story and now I’m glad to also have The Vineyard at the End of the World for its broad sweep and detailed analysis. They are must reading for anyone with an interest in Argentina and its wines.

>><<<

Editor’s note: The way this 2012 book review ends with the reference to a “Maradona moment” is timely because of the recent election of the Macri government. I wrote two columns on Argentina wine’s prospects for revival back in January 2016. Click here and here to read them.

Here’s a short video about Maradona.

Flashback Friday: Malbec World Day

Wines of Argentina has designated Sunday April 17 Malbec World Day 2016. That’s only a week away, so you had better get started thinking about how you will celebrate this holiday. Please use the comments section below to share your Malbec World Day plans.

Malbec World Day is a good excuse for a Flashback Friday column since Malbec has appeared frequently in these pages in the context of the Argentinean wine industry. Malbec was, for example, the subject of an award-winning  documentary called “Boom Varietal: the Rise of Argentine Malbec”  (see video trailer above) that provided my first (and so far only) opportunity to be a supporting character in a film.

Here is a column from back in 2011 that honors all Malbec producers by revisiting Mendel Wines (a bottle of Mendel Malbec is on the short list of possibilities for our Malbec World Day celebration along with a “flashback” tribute Malbec from Colomé called Auténtico).

>>><<<

Balance is the key to great wine (and profitable wine business, too). I was reminded of this truth many times during our visit to Mendoza, where wine makers are trying to chart a course between and among several extremes:

  • Competitive export sales versus the challenging domestic market;
  • Reliable value wine sales versus potentially more profitable premium products;
  • Popular and successful Malbec versus TNBT — The (speculative and uncertain) Next Big Thing.

The key to long term success involves finding the right balance in this complex economic environment.

I want to use this post to consider three types of balance that I think are particularly interesting in Mendoza – the balance between crisis and opportunity,  local and international winemaking influences and the simple tension between the old and the new.  We learned about all three dimensions during our brief visit to Mendel Wines in Lujan de Cuyo.

Crisis and Opportunity

Mendel is both very old and quite new.  The vineyards are old, planted in 1928. Somehow these Malbec vines survived the ups and downs of the Argentinean economy. The winery is almost as old and has a certain decaying charm. It stands in stark contrast to Salentein, O. Fournier, the Catena Zapata pyramid and the many other starkly modernist structures that have sprung up in this part of the world.

The winery project is quite new. Mendel is a partnership between Anabelle Sielecki and Roberto de la Mota and is the result of a balance between crisis and opportunity. When economic crisis struck Argentina ten years ago, opportunities were created for those with vision and entrepreneurial spirit. Anabelle and Roberto seized the moment and purchased these old vines and well-worn structures for their new super premium winery project.

That their impulse was timely and wise may not have been obvious at the time (crises are like that), but it is perfectly clear now. Wine Advocate named Mendel one of nine “Best of the Best” Argentinean wineries in a recent issue.[1]

Old and New

The winemaking that goes on in Mendel is also a combination of old and new. The technology is modern, of course, with stainless steel and French oak very visible. The setting, however, constantly reminds you of the past and the vineyard’s and winery’s history. Walking through the winery, for example, I was struck by the big original concrete fermenting tanks – a blast from the past for sure.

No, we don’t use them to ferment the wines anymore, Cecilia Albino told us, but we put them to good use. Peek inside. Sure enough, the tanks were filled with oak barrels full of wine aging quietly in the cool environment.

Mendel also illustrates the balance between local and global that characterizes wine in Argentina, where much of the capital and many of the winemakers come from abroad.  Roberto de la Mota, partner and chief winemaker at Mendel, personifies this balance. Roberto is the son of  Raúl de la Mota, who is sometimes said to be Argentina’s “winemaker of the [20th] century” so important was his work in developing quality wine in this country.

Roberto naturally grew up in the wine business both here and in France, where he sought advanced training on the advice of Emile Peynaud. He was the winemaker at Terrazas, Chandon’s still wine project in Mendoza, and then at Cheval des Andes, a winery with connections to Château Cheval Blanc. I think it is fair to say that Roberto’s resume represents a balance between local and global, between deep understanding of Mendoza terroir and knowledge that perhaps only international influences can provide.

Local and Global

I asked Roberto if it was important that Mendel is an Argentinean project and not owned by a foreign multinational. Yes of course, he said, but he hesitated a bit and I think I see why. Many of the influences and markets are international, but people, vines and inspiration are  purely local. Not one or another, but intertwined, balanced.

And this thirst for a complex balance defines the future. Talking with Anabelle over coffee in Buenos Aires, she was ambitious to break into new markets – Hong Kong, China, and so forth. Anabelle is an architect — another field where global and local intersect.

Meeting with Roberto at the winery in Mendoza, he was interested in learning even more about his vines and terroir so as to better develop their potential. And to bring more of the classic Bordeaux grape varieties (like Petit Verdot) into the mix.

Mendel has charted its balanced course quickly, purposefully and well.  It is a perfect illustration of both the tensions that define wine in Argentina and the potential for success if a clear but balanced path is boldly taken.


[1] The other “Best of the Best” wineries in Wine Advocate issue 192 are Achaval Ferrer, Alta Vista, Catena Zapata, Viña Cobos, Colomé Reserva, Luca, Tikal and Yacochuya.