Flashback Friday: What Was Revealed at Riesling Rendezvous

Riesling Rendezvous 2016 starts on Sunday with a grand tasting on the beautiful grounds of Chateau Ste Michelle in Woodinville, Washington. Riesling Rendezvous is a project of Ste Michelle and the Mosel’s Dr. Loosen that brings together people from the four corners of Planet Riesling for three days of tasting and discussion.

Riesling Rendezvous comes around every three years and this is all the excuse needed for a Flashback Friday feature that returns to a dramatic moment at the 2013 conference.

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2_rr_wineglassI’ve been writing about the problems of marketing misunderstood and misunderappreciated wines for the last couple of weeks and before I leave this subject I want to take time to give you a brief report from the Riesling Rendezvous conference hosted by Chateau Ste Michelle and Dr Loosen in Seattle last month.

Although the public face of the conference was the sell-out Sunday Grand Tasting on the grounds of the Chateau in Woodinville, the real work took place at the waterfront Bell Harbor Conference Center on Elliott Bay. What did we learn about life on Planet Riesling (as Stuart Pigott calls it)?

Small Worlds and Big

Well, its a big world after all — that’s the first insight. We tasted spectacular wines from many corners of the globe and regions of the U.S. and Canada. But it is a small world, too, as global quality standards have risen due in part, I think, to the international exchange of technical information that Riesling Rendezvous and its partner conferences have promoted. The gap between Old and New Worlds has closed dramatically.

You might have enjoyed the scene at the two formal tastings, where about 300 of us sat in front of 20 glasses each of dry Riesling on the first day and off-dry Riesling on the second. We tasted the wines blind and then, one by one, members of the expert panel commented on the wines and tried to place them in terms of origin — Old World or New? Cooler climate or warmer site? Particular time (vintage) and place?

Sometimes the experts were spot on, but I think the organizers might have selected the line up of wines to make the point that Planet Riesling is changing, so sometimes (more often than not, I believe) they were fooled. Fooled, generally, by unexpected quality from an unexpected source, which is a nice way to be surprised.

Ooohs and Aaahs

There were ooohs and aaahs, for example, when one wine was revealed to be from Elesko Winery in Slovakia. Wow, none of us saw that coming, probably because we didn’t have Slovakia on our radar. I remember tasting a few crisp, delicious white wines from this region when I taught in Prague, but beer, not wine, is probably the first thing that comes to mind (despite Austria’s obvious presence) when you think Central Europe.  Very impressive.

Tim Atkin, who moderated the off-dry tasting (John Winthrop Haeger handled the job for the dry wines) seemed to take special pleasure in revealing that a wine that had been firmly placed in the Mosel region by a panelist was in fact made by Ste Chapelle of Idaho (part of the rapidly rising Precept Wine group).

How many cases do you make, Atkin asked Marueen Johnson who represented the winery, probably imagining the sort of hillbilly Idaho wine industry that the old Muppet Movie scene suggested? Forty thousand cases came the reply. Wow, that’s lot, Atkin said obviously surprised (and that’s just Riesling — total production tops 100,000 cases for this, the largest winery in Idaho). It’s a brave new world on Planet Riesling when fine wines can come from such unexpected corners of the globe.

Two Directions at Once

Further evidence of how the Riesling map is changing was provided by two new Chateau Ste Michelle Riesling wines: Anew Riesling, which seeks to broaden the Riesling base, and Eroica Gold, which aims for a more classic style and promises to deepen interest in this category.

Anew, with its elegant bottle (which reminds me of a graceful off-the-shoulder gown) and subtle flower label seems to enter the market as a wine targeting  women, who of course make up the majority of wine drinkers and, for reasons that I’ll explain in a future post, a disproportionate part of the Riesling base. Off-dry but not too sweet,  it makes a tasty aperitif — a nice way to end of day of work and start the evening. Coming from the creators of the hugely successful 14 Hands wine brand, this is a wine that could convert Pinot Grigio drinkers to Riesling fans.

Seafood

Eroica Gold is the newest project of the Ste Michelle – Dr. Loosen partnership and it builds upon and expands the very successful Eroica Riesling line. Eroica has a hint of sweetness and can often be purchased for $20 or less (I’ve seen it at Costco for about $15) — very good value for money and often listed as one of America’s best Riesling wines.

Eroica Gold is riper, botrytis influenced, and, at $30+, more expensive. It aims to take American Riesling consumers to the next stage. Hopefully it will both communicate to American consumers what they might find in European wines and also represent the New World effectively to the Old.

Inevitable Seattle Food Porn

The conference ended with a festive reception at the Chihuly Garden, a blown glass fantasy highlighting the work of Northwest art icon Dale Chihuly, which I mention only because it gives me an excuse to include this “food porn” photo of the seafood buffet. Ahi tuna, smoked salmon, oysters, shrimp, and crab. What a treat!

Riesling may be misunderstood and there certainly are problems to be worked out, but on that warm afternoon in Seattle, with Riesling in my glass and smoked salmon on my plate, life on Planet Riesling seemed a pretty sweet place to be.

July 4th Flashback: How the U.S. & Canada Almost Destroyed Wine

patriotic_pourIt is Independence Day here in the United States and that is all the excuse I need for this special Flashback column, which takes us back to 2015 to tell the story of how, in very different ways, the U.S. and Canadian governments almost destroyed their respective wine industries.

My friends always tell me to have a fifth for the Fourth, and I assume they are recommending a bottle of American wine with the required holiday menu of hot dogs, hamburgers and salads. Cheers and Happy Independence Day.

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At one point in Kym Anderson’s new book about the Australian wine industry he reflects on what can be done to shorten that country’s current wine slump and to get things sailing again on an even keel. One of his suggestions caught my eye:

“Governments need to keep out of grape and wine markets and confine their activities to generating public goods and overcoming market failures such as the free rider problem of collecting levies for generic promotion and R&D.”

This is more than the simple Adam Smith “laissez-faire” idea. Anderson’s book clearly demonstrates the law of unintended consequences — how well-meaning government policies sometimes have had unexpectedly negative side-effects. No wonder he recommends a cautious approach to wine and grape policy.

I was reminded of this when I was researching the history of the Canadian wine industry for a recent speaking engagement in Ontario. I was struck by Canada’s experience with Prohibition in the 20th century, how it differed from the U.S. experiment, and how both ended up crippling their wine industries but in very different ways. Here’s what I learned.

How U.S. Prohibition Crippled the Wine Industry

The great experiment in Prohibition in the United States started in 1920 and lasted until 1933. The 18th Amendment outlawed the manufacture, sale or transport of intoxicating beverages, including wine. Most people assume that the wine industry collapsed as legal wine sales and consumption fell and this is partly true but not the complete story. Commercial wine production almost disappeared, but wine consumption actually boomed.

How is this possible? There were three loopholes in the wine regulations outlined in the Volstead Act. Wine could still be produced and sold for medical purposes (prescription wine?) and also for use in religious services (sacramental wine). This kept a few wineries in business but does not account for the consumption boom, which is due to the third loophole: households were allowed to make up to 200 gallons of wine per year for “non-intoxicating” family consumption.

Demand for wine grapes exploded as home winemaking increased (but not always for strictly non-intoxicating purposes). Total U.S. vineyard area just about doubled between 1919 and 1926! But the new plantings were not delicate varieties that commercial producers might have chosen but rather grapes chosen for their high yields,  strong alcohol potential and ability to survive shipping to eastern markets.

Thus did Prohibition increase wine consumption in the U.S. but it also corrupted the product by turning over wine-making from trained professionals to enthusiastic  amateurs working in often unsanitary conditions. The home-produced wine sometimes had little in common with pre-Prohibition commercial products except its alcoholic content.

Americans drank more wine during Prohibition, but it was an inferior product. No wonder they dropped wine like a hot stone when Prohibition ended. That’s when the real wine bust occurred and it took decades to fully recover. Do you see the unintended consequence in this story? But wait, there’s more …

How Canadian Prohibition Crippled Its Wine Industry

Prohibition started earlier (1916) and ended earlier (1927) in Canada and took a different fundamental form. With support from temperance groups, consumption of beer and spirits (Canada’s first choice alcoholic drinks) was banned as part of war policy with the stated intent of preserving grain supplies for vital military uses. Consumption was forbidden, but production of beer and spirits was still allowed for export, which accounts for the boom in bootleg Canadian whiskey in the U.S. in the 1920s.

Neither production nor consumption of wine was included in Canada’s ban on alcohol, although wine sales were limited to the cellar door. What made wine different? Maybe grapes were not as vital to the war effort as grains, although John Schreiner cites the political influence of the United Farmer’s Party in his account of this period in The Wines of Canada. Wine became the legal alcoholic beverage of choice for Canadian consumers and production boomed. By the end of Canadian Prohibition there were 57 licensed wineries in Ontario (up from just 12) to serve the big Toronto market.

Wine sales increased 100-fold, according to Schreiner, but “It would be charitable to describe the quality of the wines being made in Ontario during this period as variable,” he writes. The market wanted alcohol and set a low standard of quality, which many producers pragmatically stooped to satisfy. No wonder wine production collapsed at the end of Prohibition as consumers went back to spirits and beer.

Unintended Consequences

Thus did government policy in both Canada and the United States create wine booms during their respective Prohibition eras, but the worst kind of booms: bad wine booms. Quality suffered as quantity surged. It is no surprise that consumers turned away from wine once other beverages were available. It took decades for these industries to recover.

Both the Canadian and U.S. wine industries are vibrant and growing today, having recovered from the crippling effects of poor quality wine. But they both are still hampered by other policies — especially regarding distribution and sales — that date back to the end of Prohibition. Economic policies can obviously have unintended effects and the shadows they cast can be long indeed.

No wonder Kym Anderson is skeptical about government interference in the Australian industry. Prohibition is an extreme case, to be sure, but such cases clearly show the unintended consequence potential that exists even with other seemingly harmless proposals. A cautious approach makes sense.

Flashback Friday: Cracking the Chinese Wine Market

The news from my friends in Portugal is that exports to China are rising, which reminds me of the first time I wrote about Portuguese wine in China back in 2010. Here is a Flashback Friday reprise of that column.

Portuguese Wines in Beijing

President Obama wants to double U.S. exports within five years. With this in mind he recently sent Commerce Secretary Gary Locke to Hong Kong to sign a Memorandum of Understanding (MOU) on Cooperation in Wine-Related Businesses. The press release says that

The United States is one of the leading wine-producing countries in the world, and American wines have been growing in stature internationally for decades as people around the world have learned what American wine producers and consumers have known for years: American wines are outstanding,” Locke said. “Working with the Hong Kong government, we want to create opportunities to heighten exposure to American wines in Hong Kong and the region. This MOU will help do just that.

“Hong Kong and the region” … I think that would be code for China. Everyone wants to crack the Chinese market, something that is easier said than done. I’ve written about this problem before (see “Wine and the China Syndrome”). Sean, one of our recent graduates, wrote his senior thesis on the challenges and opportunities of exporting Washington wine to China. Sean identified a number of significant political, economic and cultural barriers that American wine exporters must overcome. He was optimistic regarding the long term, but very cautious about short term success. (Secretary Locke, you might want to give Sean a call.)

Cracking the Chinese Market

Everyone looks hungrily at China with its growing economy and expanding consumer base. But it is hard to break in. Bulk wine imports are substantial (imported wines get blended with local products and labeled “Chinese wine”), but at unsustainably low prices. No future there.

France and Spain have had better luck. The French have been able to leverage their reputation and the prestige of their finest producers to carve out a attractive niche markets for Bordeaux and Champagne as luxury products.

The Spanish achieved success through old fashioned hard work. They have partnered with Chinese wine producers in both production and distribution. If Chinese wines are improving in quality (and I understand they are) then this is at least in part due to technical improvements facilitated by joint ventures.

Miguel Torres has been particularly active in partnerships and ventures of all sorts. You might be interested in their everwines project, which was recently launched in an attempt to develop a western style Chinese wine culture. If you check out the site be sure to click on the Online Shopping link to purchase a variety of international wines in the $20 range and also Opus One for about $550 and a first growth Bordeaux for more than $1200.

Any Port in a Storm

The U.S. is obviously not the only wine producing country with China on its mind and  I was pleased to receive an invitation from ViniPortugal to participate in their recent China seminar program and tasting of Portuguese wines. Sixteen winemakers flew from Lisbon to Beijing to present and promote their wines. A good chance to observe this Old World wine country’s China strategy in action.

Beijing is a long way to go for an afternoon tasting, so I was represented by my crack China wine research team, Matt Ferchen (Assistant Professor of International Relations at Tsinghua University) and Steve Burckhalter (who works as a translator for the Chinese public relations firm BlueFocus). Matt and Steve are former students of mine at the University of Puget Sound and keen observers of rapidly changing Chinese markets.

Matt said that he was impressed with the wines he tasted.

The first wines I tasted, and the ones I ended up liking the best, were from a cooperative called Adega Coop. De Borba.  A couple of the wineries were family owned and there was a kind of earthiness to the wines that I really enjoyed.  I was especially impressed with the Portuguese whites, which were all very crisp and I think would go very well with spicy Chinese food.

I find that most of the wines available in Beijing, both foreign and Chinese, are expensive and mediocre or cheap and bad.   Across the board the price to quality ratio was just excellent and I really hope that some of these wineries can find distributors here … [but] …there was only one of the wineries that had any presence in Beijing.

So the product is good and a good value. But that doesn’t necessarily solve the Chinese market puzzle.

Most of the representatives seemed rather disappointed that the turnout at the tasting was quite small and that many of those who were in attendance weren’t in the wine business (i.e. they didn’t see many prospects for finding distributors even if they found possible retail customers).  I was asking some of the representatives why Portugal seemed so far behind Spain in terms of entering the Chinese market, especially given what seemed to me the outstanding quality of their product.  The answer mostly just seemed to me a question of focus, that somehow the Spanish wine organization was just more aggressive about getting Spanish wines to China and advertising.

Steve also commented on quality and value — and the problem of focus and establishing reputation.

The[seminar] speaker, who I believe was a Chinese man from Macau, noted the long history of wine making in Portugal, the long time presence and popularity in Macau (“We drink this all the time in Macau”), the diversity of wines they are able to grow thanks to the wide range of different climates in Portugal, wines unique to Portugal – such as a “green wine” they grow in the North, which he reasoned would do well in China, being ‘fruity and sweet’ – and finally he also stressed that “Nearly all Portuguese wines are reasonably priced. It’s hard to find any in excess of 2000 RMB.”

He also expounded on why Chinese outside of the Southeast regions don’t care for white wines, which I found interesting. As for the growers and the distributors, there was some diversity to be found in “Brand Portugal”. Interestingly, some were insistent on showing tasters how they straddled both New and Old World wine making (actually, the speaker also touched on this, going on about a vineyard that had invited Australian winemakers to teach them in the ways of new world wine). Others, however, were insistent that they were exclusively Old World – “Portugal is Old World. How can it be New World – that’s not us.”

In response to how they were looking to position their wines, one of the winery reps said that they were looking to focus on promoting, above all, their grapes: the varieties, why they grow so well in Portugal, etc. And their other edge (which I heard from several people) is in pricing, “what you get for X RMB in a Portuguese wine is better than what you get for X RMB in a French wine.” That tended to be the dual answer whenever someone brought up how Chinese people generally went straight for French or Italian wines.

A Wineglass Half Full. Red or White?

Based on Matt and Steve’s reports you can be either an optimist or a pessimist regarding Portuguese wines in China. The upside is that there are many potential advantages, cost being one of them. It is obvious that Portuguese winemakers would like to be seen as a “value” fine wine and avoid the cheap and anonymous bulk wine trap. Good thinking.

But then there is a bit of an identity crisis. Old World or New? Well, both – a harder sell. Focus on regions or grapes (or both)? That requires a substantial sustained education program.

Even the most basic question is problematic: red or white?  Westerners know that crisp whites like Vinho Verde taste great with Asian foods – great to westerners, anyway. But, as has often been said, the first duty of wine in Asia is to be red.

I’m cautiously optimistic about Portuguese wines in China, especially if they can settle on the right focus and sustain the education/marketing efforts. But they have a long way to go.  Steve reports that “I noticed at a store (targeting Western tastes) last night the only Portuguese wines (out of hundreds and hundreds) were four Ports. Haven’t been to Carrefour in a while, but I bet it’s the same deal.”

Good luck to Portugal – and to American winemakers, too, of course.  China is a key market for the future. But scaling the Great Wall is a real challenge and many will fail in the attempt.

Are You Going to the UNWTO Global Wine Tourism Conference in Georgia?

unwtoI’ve recently accepted an invitation to speak at the first global wine tourism conference to be organized by the United Nations World Tourism Organization (UNWTO). The event is set for September 7-9, 2016 in the Republic of Georgia, which is the cradle of wine and an emerging wine tourism destination. Here are links to the preliminary program and registration information.

I will be on a panel that includes representatives from Argentina, France, Japan, Italy and South Africa to talk about best practices in wine tourism in each country. I plan to focus on Napa Valley and the many and quite diverse lessons both that this wine tourism hot spot provides. Should be an interesting discussion!

Are any of you in the Napa or California wine tourism sector (either individual wineries or regional groups) planning to attend the UNWTO conference? I am curious to know who else will be there to represent the U.S. industry.

I like to think that we in the U.S. are in the lead when it comes to wine tourism, but I have seen (and written about) some fabulous and innovative programs in other countries.  Sue and I were recently in Portugal, for example, and were impressed with wine tourism initiatives at Sandeman in Porto, Quinta do Bomfim in the Douro and at Esporão in the Alentejo. The global standard is rising and everyone needs to up their game.

Wine tourism is only going to become more important in the future and opportunities for global dialogue are potentially very valuable. With this in mind, here is a “Flashback Friday” column from 2015 when the UNWTO conference was first announced.

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I think the United Nations has a thing about wine. I recently wrote about the surprising number of wine regions that have received Unesco World Heritage site recognition, for example. Now the United Nations World Tourism Organization (UNWTO) is getting into the act.

The 1st UNWTO Global Conference on Wine Tourism will be held in the Kakheti wine region of Georgia from 7-9 September 2016. “Wine tourism represents a growing segment with immense opportunities to diversify demand. In the case of Georgia, this potential is well-known and we are very pleased to be holding the first UNWTO Global Conference on Wine Tourism in the country,” according to UNWTO Secretary-General, Taleb Rifai.

Why Georgia? History is part of the story, but it is also true that wine is an effective way to promote tourism and economic development. Come for the wine (and food) and stay for the people, culture, history and geography. Trade and investment flows may follow the wine route, too. Georgian officials appreciate this logic.

“Georgia’s unique wine-making traditions date back 8,000 years and are part of UNESCO’s intangible heritage, creating the ideal base to host the Wine Tourism Conference. Herewith, the country’s recent success in attracting a growing number of tourists, its development in terms of tourism products, branding and marketing present an excellent platform to share best practices, experience and knowledge¨ according to Dimitry Kumsishvili, Minister of Economy and Sustainable Development of Georgia.

U.S. regional wine associations with a strong interest in wine tourism may be able to participate in the Georgia program, but I am not sure about the details.  More information can be found here.

I wrote about wine tourism in my book Extreme Wine, so I am going to be following this initiative closely. Best wishes to Georgia and the UNWTO for a successful inaugural conference.