The Hedgehog & the Fox: Discovering the Wines of Lugana DOC & Garda DOC

Today’s Wine Economist is inspired by Isaiah Berlin’s famous essay “The Hedgehog and the Fox.” The fox knows many things, Berlin wrote, drawing on an ancient Greek parable, but the hedgehog knows one big thing.

People are like that, don’t you think? And there are wine regions like that too. The Lugana DOC on the shores of Lake Garda in Italy, for example, reminds me of the hedgehog, with its clear focus on one important wine. The Garda DOC, on the other hand, is home to many different ideas of wine. It is the fox.

Please read our report below and see if you agree — and which wine critter you find more appealing.

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Lake Garda in the Italian north is one of Europe’s great summer playgrounds. No wonder visitors flock there from all over Italy and from Germany and Switzerland too. There is something for everyone. The lake itself for watersports, of course, along with beaches and campgrounds, theme parks, and more. The local economy benefits from the region’s understandable popularity and so does the local wine industry. I’ll bet both were hit hard when covid restrictions put a lid on tourism. They seem to be booming now.

The Lake Effect is Strong

Wine, not theme parks, was the focus when Sue and I joined a group of journalists from Germany and Denmark for a tour co-hosted by the Lugana DOC and Garda DOC consortia. The fact that the program embraced two overlapping but very different wine regions made this an unusual adventure.

Burton Anderson acknowledged the impact of Garda tourism on the Lugana wine industry in his classic 1990 guide The Wine Atlas of Italy,

Its success has been attributed to the fact that it is white and comes from the well-frequented Garda resort of Sirmione, but the real point in its favor is its graceful personality that appeals to both novices and to people who take wine seriously.

The wines are shaped by the combination of the Turbiana grape variety, also known as Trebbiano di Lugana, plus the beneficial lake effects, and the subtle variations in vineyard geology that result from glacial activity that made this region fairly flat but far from homogeneous. The Lugana DOC wines, as I wrote a few weeks ago, balance salinity against minerality in ways that please and provoke further investigation.

A Visit to Cantina Ottella

Although restricted to just one grape variety, we found tremendous variety in the Lugana DOC wines. A memorable visit to Cantina Ottella opened our eyes to the possibilities. Ottella is a project of the Montresor family, who have been making wine here for four generations. Michele Montresor showed us the winery with its fantastic modern art collection and then we began with the wines. Picked early, the Turbiana grape variety makes sparkling wines that are justifiably popular. Picked a little later, in September, the Lugana DOC wine showed the salinity and minerality that defines it so clearly.

The next wine caught our attention. Le Creete is harvested later, in October, from old vines from a single vineyard. It was complex and even more interesting than the wine before. The Riserva was elegant, with well-integrated oak. An amphora wine dedicated to Michele’s father Ludovico came next. Stunning in its complexity. Then, finally, a Lugana DOC from the 2007 vintage, to show that Lugana can age elegantly and develop gracefully. Quite an experience. And proof, if we needed it, that Anderson was right when he said that these Lugana wines have what it takes to interest experienced wine enthusiasts even as they delight beginners.

Foxy, but in a Good Way

Cantina Ottella is famous for its Lugana wines, but they also produce wines with grapes from their vineyards in other local appellations. The evening before our visit, for example, we ordered one of their Garda DOC red wines called Campo Sireso with dinner. It was a blend of Corvina Veronese, Merlot, and Cabernet Sauvignon from the Garda wine zone. The wine was fantastic and caught our attention.

The “fox” Garda wine zone is very different from Lugana’s “hedgehog.” Approved grape varieties for Garda include both native grapes (Cortese, Trebbiano, and Garganega whites and Corvina and Marzemino reds, for example) and international varieties, too (Chardonnay and Sauvignon Blanc whites and Cabernet and Merlot among others on the red side).

This means, of course, that Garda has something for everyone who comes to visit Lake Garda in the summer months and the existence of red wines is perhaps especially appealing to visitors from Northern Europe who might have a particular preference for red wines.

But Garda’s fox-like character also means that it has more trouble defining its identity in export markets, which is a shame since the wines can be very good indeed.

Sue and I were fortunate to be able to visit several wine producers who have adopted different market strategies. Come back in two weeks for these “hedgehog” and “fox” case studies. In the meantime, next week’s Wine Economist will feature a special “Independence Day” flashback column.

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Many thanks to the Lugana DOC and Garda DOC consortia for hosting us for this visit. Thanks, as well, to the wineries on our brief tour who generously gave us their time, knowledge, and very good wines! The winery list includes La Moretti, Ottella, Azienda Zenato, Cascina Maddalena, Ca” Maiol, Borgo la Cuccio, Colli Morenici, Bulgarini, and Perla del Garda. If you see wines from any of these producers on a shop shelf or wine list, please give them a try. You won’t regret it.

Wine Book Review: On the Wine Trail with Lonely Planet

Lonely Planet Wine Trails 2 (Lonely Planet Food, 2023).

The Lonely Planet Guide folks have released a new guide to global wine trails. The big book (320 pages, 2.4 pounds) lays out itineraries for 52 potential weekend wine country visits. It is a colorful book, full of maps and photos, and worthy of consideration if you are planning trips, interested in how wine tourism has developed, or just want to make imaginary vineyard visits.

Each chapter is organized according to a set structure, starting with an overview and map followed by brief profiles of six or seven wineries (a reasonable number to think about for a weekend trip). Accommodations?  A couple of options are provided along with three dining choices and some ideas for non-wine things to do. Just enough to get you started.

Sue and I have visited many of these regions and, in general, I’d give the Lonely Planet itineraries solid marks. They might not always be the wineries we would choose to visit or the hotels and restaurants we’d pick, but they would certainly steer a first-time visitor in good directions. This is not a surprise, since the wine tourism chapters were written by an international team of experts.

Creating a big book like this is an exercise in choice. What do you put in? What do you leave out? You can’t possibly include everything in 300+ pages. Something has to give! This fact became apparently to me some years ago when I was asked to edit a book for a New York Times series. I was given the entire 20th century of New York Times content (all 100 years) and tasked with telling the story of globalization. What I learned was that you have to begin with a story and build around that, which is sort of a top-down approach that prioritizes the narrative. A bottom-up approach, which relies upon the facts to form their own images, is fiendishly difficult to pull off.

The decisions when looking at wine tourism begin with the question of what regions to include. Fifty-two is a big number, but there are many more wine trails around the world. When a French wine periodical published a list of the 35 best wine tourism destinations back in 2012, they found that 29 of them were in France. Zut alors! That’s not much for the rest of the wine world.

The Lonely Planet guide lists eight French itineraries including the “greatest hits” of Burgundy, Bordeaux, and Champagne. Italy and Spain get seven entries each, including the most famous and most-visited regions.  So far just as you might expect. But while Australia has seven entries, big-name Barrossa is not one of them. And Napa is not anywhere on the USA list, which takes you from the Finger Lakes of New York, through Pennsylvania wine country, to Grand Valley, Colorado, and on to Walla Walla, the Willamette Valley, Sonoma, and Santa Ynez.

Other parts of the wine world receive less space. Argentina, Canada, Chile, England, Georgia, Germany, Greece, Lebanon, Portugal, Romania, and Slovenia get one entry each. New Zealand and South Africa get two entries each.

At first this inconsistent treatment of famous regions versus the rest bothered me, but I’ve decided that it is probably OK within the context of this book. Reading about the charms of Colorado wine country, for example, might encourage someone to look beyond the big name appellations when visiting France or Italy. And that would be a good thing.

This method of mixing the famous with the lesser-known continues within the chapters in terms of the winery choices presented, accommodation options, and dining recommendations. Some of the choices left me scratching my head (why list hotels and restaurants in Portland, for example, when there are so many good choices in the Willamette Valley wine country itself?), but in general I’ve decided that the Lonely Planet guide is quite useful. It gives readers the basics and invites them to explore.

Readers who don’t go beyond the recommendations here will have a good time. Curious types who use this as a springboard to dive deeper into the wine tourism pool will have even more fun because when it comes to wine the wines, wineries, restaurants, etc. that  you discover yourself are often the most satisfying.

Arizona Wine Revisited

It has been 15 years since our last visit to Arizona to check out the wine scene (our report appeared in an early Wine Economist column), so it didn’t take much to persuade us to go back to see how things have changed.

Our first trip was based out of Tuscon, near the main vineyard areas in the southeast of the state. This time we traveled up north to scenic Sedona to explore Arizona’s newest AVA, the Verde Valley. Our visit was interrupted by that big winter storm that swept across the country last month and threatened to block our way home. But all’s well that ends well — we were able to start our fieldwork in Sedona and end it in Old Town Scottsdale, which is home to many tasting rooms.

Here is our report, starting with some broad facts about Arizona wine and then drilling down a bit into specifics.

Bigger and Smaller

The Arizona wine industry is both bigger than you think and smaller than you might imagine. Arizona now has 108 wineries according to the January 2023 issue of Wine Business Monthly. That includes 90 bonded wineries and 18 “virtual” wineries. Virtual wineries? Yes, this is a growing trend. These are wine brands without vineyards or their own winemaking facilities. About 1000 of California’s nearly 5000 wineries are virtual operations. And virtual wineries account for almost 300 of the 900 total wineries in Oregon.

Arizona ranks #17 among U.S. states based on the number of wineries — bigger than you might have guessed. But the individual wineries tend to be small. Arizona Stronghold Vineyards, for example, is the largest winery in the state with an annual production of about 20,000 cases.  Total production for the state is about 350,000 cases a year, we were told. If that’s correct, that means all Arizona wineries taken together make about as much wine as Daou Family Estates or JUSTIN Vineyards and Winery (data from Wine Business Monthly).

Lattitude versus Elevation

One reason you might not expect Arizona to be a wine state is its latitude. It can indeed be very hot in Arizona, which is why snowbirds flock there in the winter. But elevation compensates for latitude in Arizona much as it does in Mendoza, Argentina.

Wine grapes grow well in Arizona at elevations between 3500 and 6000 feet. Most of the vineyards are in the southeast near Willcox and about 75% to 80% of the grapes are grown there. But other parts of the state have active winegrowing, too, including the Verde Valley near Sedona.

Arizona wine is a premium product — there is no such thing as Arizona Two Buck Chuck. Lack of scale is one cause of higher cost, of course, but basic supply and demand play an important role. The amount of vineyard acreage has not increased as fast as the number of wineries seeking grapes. So grape prices have risen and wine prices along with them. We heard several people talk about $3000 per ton grape prices, for example, and that means $30+ bottle prices.

The vineyards are smaller than you will find in many regions and tend to be planted with many different grape varieties, further limiting economies of scale. I don’t think Arizona has a “signature” wine grape variety, although Syrah and GSM-style blends seem to be on every tasting room list. One reason for the kaleidoscope of grape varieties is just that Arizona is a young industry still in the experimentation stage.

Free to Choose

Another factor, however, is probably that making wine in Arizona means being free to do what you like to a certain extent. In Napa Valley buyers expect to find Cabernet Sauvignon. Ditto Malbec in Mendoza. In Cottonwood or Jerome, on the other hand, you can follow your personal preferences.

One source of this freedom is the fact that a lot of Arizona wines are hand-sold direct-to-consumer. Arizona wine sales regulations allow small wineries greater freedom for direct sales, so many focus on tasting rooms and wine clubs. Several wineries, for example, have tasting rooms in Willcox, Scottsdale, and Cottonwood. Scottsdale is a big tourist destination and Cottonwood is just a short drive from popular Sedona.

Local Market Focus

In part because of the scale issues and local regulations, most Arizona wineries focus on in-state sales through their direct channels. There is a lot of work to do to make Arizona wines more visible within Arizona before taking on bigger markets. Sue and I thought that on-premise sales might be a good way to spread the word, but neither Sedona restaurant we tried had Arizona wines on their list.

One manager shrugged when we asked about the situation. Too costly, he said. I can appreciate that problem. Once you apply restaurant markups to Arizona wine that visiting diners might not have heard of, it could be a tough sell.

But not impossible, as we discovered at lunch at a great Mexican restaurant in Scottsdale. They featured Chateau Tumbleweed wines in their by-the-glass program to support local producers. We tried a Mourvedre-forward GSM blend called Dr. Ron Bot and it was terrific with our meals. We appreciated that the Arabella Hotel where we stayed in Sedona featured Arizona wine tastings for guests.

Arizona Highlights

We enjoyed our brief visit to this part of Arizona wine country. Highlights included …

Arizona Stronghold

  • Arizona’s largest winery is small (by California standards) but mighty. The wines we sampled were delicious and we were very impressed with the entrepreneurial spirit. Arizona wines are relatively expensive for the reasons noted above, but somehow Arizona Stronghold manages to produce a good-value line of wines called Provisioner that includes “Float Tripper Sipper” canned sparkling wines that are a perfect complement to the Arizona outdoor lifestyle. Very impressive.

Page Spring Cellars

  • The Verde Valley is a great spot for outdoor activities and for wine tourists, too, with several wineries and even more tasting rooms. But with most of the vineyards down south in the Willcox area, there are not many classic destination wineries with vineyards, cellars, and tasting rooms. Page Spring Cellars has it all plus an outstanding restaurant. No wonder it attracts thousands of visitors each year for the wine, the food, and the experience.

Carlson Creek Vineyards

  • A winter storm prevented us from visiting the tasting room in Cottonwood, but we learned a lot about Carlson Creek Vineyards in an hour spent at the Old Town Scottsdale tasting room. The place was really buzzing on a weekday afternoon and the wines were among our favorites of this visit. If you visit Phoenix and don’t check out the wine scene in Old Town Scottsdale you are missing a bet!

Caduceus Cellars / Merkin Vineyards

  • Caduceus Cellars and Merkin Vineyards are projects of Maynard James Keenan, the frontman for rock groups including Tool. Some celebrity wineries are vanity projects or over-hyped branding exercises, but wine clearly is the central element here. We weren’t able to visit the winery in Jerome, but the Merkin tasting room in Old Town Scottsdale is a popular stop for both food and wine. Sue and I shared the signature charcuterie platter perfectly paired with Caduceus Nagual del Agostina, a white wine made from 80% Vermentino and 20% Malvasia Bianca from the Agostina block vineyard in the Verde Valley’s Cornville district. That’s a blend of grapes you might not expect to find in Arizona, or anywhere else, but it really worked. Arizona is full of surprises like this!

Cove Mesa Vineyard

  • Cove Mesa’s tasting room is in Cornville, with newly planted vineyards nearby. Cove Mesa is another example of a winery trying lots of different grapes, including a new planting of Assyrtiko.

The Arizona wine industry has come a long way in the 15 years since our first visit. It will be interesting see what the future holds. In the meantime, keep Arizona wine on your radar!

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Thanks to the wineries, hotels, and restaurants that hosted us or helped us with our research. Special thanks to Melissa Rein Lively for organizing our visit.

The Wineries:

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Restaurants:

Arizona Flashback: Desert (Not Dessert) Wine

Sue and I are in Arizona this week, exploring a wine region near scenic Sedona that is completely new to us. Look for a full report in the coming weeks. In the meantime, we thought you might be interested in this Flashback from 2008, which reports on a previous Arizona wine expedition.

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Desert (Not Dessert) Wine

Wine Economist / March 28, 2008

I spent Friday in the Arizona wine country – south-west of Tucson near Sonoita – with my “research assistants” Michael, Nancy, and Sue. I thought that I would learn something from talking with winemakers here, and I did, but it wasn’t exactly what I expected. Here is my report.  …

A Working Hypothesis

My hypothesis going into this research was that the wines themselves would be a bit problematic, as emerging region wines often are, and that the biggest challenge would be in the vineyard not the cellar — growing wine grapes in the high desert.

Our first two winery stops quickly made me change my mind about the quality of Arizona wine. The wines at Dos Cabezas WineWorks were intense and flavorful, with a spicy complexity that surprised me. I am not a wine critic, so I will not bore you with amateur tasting notes and doubtful ratings, but we were very impressed with these wines and bought some to give as gifts to Arizona friends who did not know about Arizona wine. Todd Bostock, the winemaker, really knows how to draw flavor from Arizona (and some California) grapes. Todd is working with Dick Erath in addition to his own projects and I think this collaboration bodes well for Erath’s Arizona wines, when they are ready, and for the region’s reputation.

Our second stop was Callaghan Vineyards. Kent Callaghan’s wines were strikingly good. We noted the depth and distinctive character of these wines, particularly the Tempranillo- and Petit Verdot-based blends but also a Mourverdre, Syrah and Petite Sirah blend. These wines were different from Bostock’s and gave us a hint of the potential range of Arizona wine styles. Kent let us taste some library wines and the question, can Arizona wines age well, was answered in the affirmative. We bought wine and had it shipped home, which is I suppose the highest praise a wine consumer can provide.

We visited one other winery, a new one that I won’t name, that made the sort of wines that I originally expected to find – what I would describe as immature wines showing wood in the wrong places. They served to put Bostock’s and Callaghan’s achievements in context. It is possible to make very good wine in Arizona, but it’s probably not easy.

The Globe in Your Glass

Wines have started to appear from many regions not on the list of “usual suspects:” India, Thailand, Peru and Brazil, for example. Brazilian wines actually make a cameo appearance in the film Mondovino, but not in a way that makes them seem in any way part of the classic tradition of wine.

It is possible to grow wine grapes at unexpected latitudes, but special conditions are necessary. In Arizona it is the desert at an elevation of about 4500 feet, where summertime highs are only in the 90s and the temperature at night can drop by 35 degrees. Elevation compensates for latitude. This advantageous diurnal variation along with lots of sunshine and rocky red soil are a good recipe for wine if you can add the right amount of water – not too little or too much.

Climate is not the problem I thought it would be and I think some of the wines we tasted displayed that mystical terroir that is the holy grail of wine critics. But climate change is a problem and that’s the unexpected story here. (I’ve written about climate change and wine in Chateau Al Gore.)

Kent Callaghan told me that the climate seemed to him to have changed significantly in the last 18 years. He reported recent crop yields of just a ton an acre for some varieties due to unfavorable weather. Some of the plantings of the classic varietals that showed promise earlier now seem misplaced so he has started slowly to change over to grape varieties that are able to produce consistent quality in the evolving environment.

This helps explain the use of California grapes for a few wines I tasted (to compensate for low Arizona yields) and the effective use of unexpected varietals (Tempranillo from Spain and Petit Verdot, a Bordeaux blending grape). Having learnt to make good wine in Arizona, winemakers like Callaghan have had to learn the process all over again with new varietals. In this regard I think they are perhaps ahead of the curve – winemakers all over the world will have to adjust to climate change in the decades ahead.

I understand that the Erath Arizona vineyard is being planted with many different varietals. It sounded to me like an experimental vineyard when I heard the list of plantings, but I think there is more than guesswork involved. I expect that Erath, Bostock and Callaghan and other talented winegrowers will figure out what Arizona’s terroir is meant to produce. It will be interesting to track Arizona’s progress and see how its wines fare in a world where the environmental givens are shifting and the market conditions becoming increasingly diverse and competitive.

Wine and Wine Tourism

The wineries I visited are all relatively small with limited distribution, so don’t expect to find these products at your local shop. Production is limited to a couple of thousand cases, even with the use of California grapes to fill in the gap left by low local yield, and sales are mostly cellar door. The winemakers I spoke with are beginning to develop wine clubs and internet sales facilities, but most of the product is sold face-to-face. Restaurant placements, if done well, can help build reputation, but there is not much money in it for a small winery. And output isn’t usually big enough to fill a distributor’s pipeline. All of this may change in the future, of course, but for the present it is a craft industry. The future of Arizona wine, at least in the short run, is local not global.

And that is not necessarily a bad thing because exploiting the local is an important strategy and it seems to me that Arizona has a good potential for wine tourism. The world will probably come to Arizona wine before the wine is produced in sufficient volume to venture out into global markets.

The country around Elgin and Sonoita is strikingly beautiful and closer to Tucson than Napa Valley is to San Francisco. It is already a desirable day-trip destination from Tucson because of its bicycling and horseback riding opportunities. All you need is wine (and food) to complete the deal. The wine is already there, as we learned, and the food, too, but the word hasn’t leaked out. That, I think, is about to change.

Note: Thanks to Michael, Nancy and Sue for their help with this report and to Joyce at Dos Cabezas and Tom Bostock and Kent Callaghan for taking time to talk with us.

Memo to CNN: Searching for Italian Wine?

Dear CNN,

Sue and I have been watching the CNN original series “Stanley Tucci: Searching for Italy.” Tucci visits six Italian regions, talks with the people, enjoys the food, and tells some stories. Maybe it is because of the pandemic, but there is something very satisfying about following Tucci on his journey. You might want to check it out.

Tucci starts his Giro d’Italia in Naples and then moves on to Rome, Bologna, Milan, Tuscany, and Sicily. The title suggests that he is “Searching for Italy.” Will he find it? Not if he thinks that Italy is a single thing with a single cuisine, because that Italy has never existed. But if he is willing to accept that Italy is its regions — and I am sure he is — then he’ll be fine and so will we.

Searching for Italian Wine

The chapter on Italy in my book Around the World in Eighty Wines is a Tucci-esque search for Italian wine. My quest to find one wine that can represent all of Italy’s wines comes tantalizingly close to success at one point, but ultimately I realize that Italian wine is impossible. There are only the wines of Italy’s regions. No wonder the Italian wine map is perhaps the most complicated in the world.

So it seems to me that Searching for Italian Wine would make a great series for the same reasons that Tucci’s program is so popular. But what would a program about Italy’s wines be like? Walking though beautiful vineyards is great and makes good video, but you can only do that so often before it gets a bit old. Ditto for visiting cellars, inspecting barrels and tanks, and wondering at the majesty of shiny new pneumatic presses and speedy bottling lines.

Watching wine being made isn’t as interesting as watching food being made for some reason (perhaps because it takes so long) and in any case Tucci’s producers seem to realize that there’s a limit to how many times they can show onions being diced or pasta being rolled and cut.  So instead they show the hustle and bustle of markets — that never gets old to me — and focus on real people, who they are, what they do, and how they define and are defined by the local products and food. That’s a model that works every time, if you don’t lose sight of your goal.

Searching for Italy and Its Wines

This leads me to my main point, which is that Tucci’s Searching for Italy could be the perfect Italian wine show if it just brought wine more fully into the frame (note: I write this before the Tuscany episode has been aired). Wine shows up all the time in Searching for Italy, but it is just something the people drink with the food, never an important element of the story. Wine in Italy is so much more.

The Bologna episode is a case in point. Yes, the Prosciutto, Mortadella, and Parmigiano Reggiano cheese are amazing. We were fortunate to enjoy them almost every day when I taught at the Johns Hopkins School of Advanced International Studies Bologna Center a few years ago. Our apartment was on a little alley called Via Pescherie Vecchie in the heart of the heart of the famous central market area. It is an inescapable element of the city’s life so naturally it was on Tucci’s Bologna itinerary. Here’s a video of a visit to this street to give you a sense of the place.

So what do  you drink with these intensely local products? Well, wine of course, but there is a particular local wine that we think is magical. It is called Pignoletto and it is so local that I doubt you will easily find it anywhere else. As I wrote ten years ago after a return visit to our old neighborhood …

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

The food and this wine evolved together in Bologna. No wonder they are such a perfect match. And they say something about the importance of place in a footloose world, don’t you think? It would have been easy to include this wine (and some others, too) in the Bologna episode, CNN,  and your viewers would have thanked you for opening this door to Italian wine, food, and culture.

Dear CNN: Who Ya Gonna Call?

So, CNN, you are probably wondering who can help you take Searching for Italy to the next level by adding the magic of wine to the mix? Well, our team here at The Wine Economist stands ready to lend a hand (and pull a few corks) and we have no end of ideas for season 2 in the Veneto, Friuli, Alto Adige, Piemonte, Liguria, Sardinia — and that’s just getting started! Let’s take that Italian map and search for Italy and Italian wine in every corner.

Italy is a mosaic of people, places, wine, food … and wine, too. Let’s work together to tell the story of Italian wine in context, one beautiful region at a time.

Sincerely,

The Wine Economist team

Portuguese Wines in the Age of Discovery

A 1971 television advertisement for Mateus Rosé invited viewers to pour themselves a glass of the popular wine and take an imaginary trip to Portugal.  I have been wishing that it was as simple as that this pandemic year when travel is general is so difficult and the idea of a trip from the U.S. to Portugal and back seems out of the question.

Discovering WoW

There are more than a few reasons to wish that a Star Trek transporter could beam us down in Porto, for example. The World of Wine  (WoW) opened along the Villa Nova de Gaia                  riverside over the summer and I can’t wait to explore its many venues. Adrian Bridge and his team have transformed a collection of warehouses on the downhill side of the Taylor winery and Yeatman Hotel, creating a labyrinth of exhibits, cafes, restaurants, and shops.

Portuguese ships sailed to the four corners of the world during the great Age of Discovery. Now that world comes to Portugal and especially Porto to learn about wine.

Five “Worlds” or experiences await the visitor who is interested in (1) wine, (2) the history of Porto and the Douro, (3) planet cork, (4) chocolate, and (5) the Bridge collection of drinking implements, which spans 9000 years. I signed up for the email newsletter, since that’s about as close as I will get to Porto in 2020, and each week I receive notice of concerts, programs, and tempting offerings at the nine restaurants, bars, and cafes.  I’d leave for WoW and Porto today if I could!

Discovering Richard Mayson’s New Book

If imaginary travel is the only option, then Richard Mayson’s new book, The Wines of Portugal, is an excellent guide. Mayson knows Portugal and its wines like the back of his hand and he generously shares his knowledge.

The book is organized in the conventional way, with chapters on history, the grapes and wines, the main winemaking regions including the islands such as Madeira, plus specialized chapters on Rosé and sparkling wines. Yes, Mateus makes the book as does Lancers, because they really are important elements of Portuguese wine and its history, but if that’s how you think of Portuguese wine you have much to learn.

I found the regional chapters especially interesting and the producer profiles, though necessarily brief, more detailed and revealing than in many other “Wines of … ” books. Mayson’s Wines of Portugal is highly recommended for detailed study or a wine travel (imaginary or real) reference.

If We Can’t Go to the Wines …

If we can’t go to the wine country, then the thirst for discovery means that it will have to come to us, even though something is lost in trading places this way. We have been fortunate to be able to sample some very interesting Portuguese wines in recent weeks.

Bartholomew Broadbent has imported a bright, refreshing, and very popular Vinho Verde for a number of years (alongside his famous Port and Madeira wines) and he has recently added three new wines to the stable: Broadbent Douro Red, Broadbent Douro Reserve, and Broadbent Dao white wine. The wines are delicious, fairly-priced, in relatively wide distribution, and recommended with enthusiasm.

Portuguese wines are having a moment of discovery just now. Some consumers have never thought of them before or associate them with their parent’s Lancers and Mateus experiences. Others think inexpensive Vinho Verde or stuffy Vintage Port. But (as Mayson’s book explains, of course) there is a world of wine in Portugal’s right borders.

The new Broadbent wines are a great way to learn more about the intriguing red wines of the Douro and the bright whites of the Dao region.

Thanksgiving Discoveries

Thanksgiving was our excuse to sample four wines from the Douro that we received as gifts from friends in Porto. A  bottle of stunning  Casa Ferreirinha Quinta da Leda was perfectly paired with our festive meal. Elegant and sophisticated. We are looking forward to see how this wine develops over the next few years. It shows what the Douro is capable of at its best.

The final act was an opportunity we’d never had before — to taste cask samples of the new 2018 Vintage Port wines. Winemaker Luis Sotomayor sent us small bottles of his Offley, Sandeman, and Ferreira wines, which we tasted along with chocolate Sue bought in Porto specifically to pair with Port wine.

Yes, I know, Vintage Ports are supposed to be put down for 10 or 20 years before you carefully pull the cork. But that’s not the only time to drink them. Very young Vintage Ports have a charm of their own — a dark intensity that can be quite stunning. You really should try it especially, like me, if sometimes you just can’t wait!

The three wines showed distinct personalities immediately and they changed and developed over several nights. Sue found her favorite of the three shifted as the wines unfolded. An experience I hope to repeat!

Age of Discovery

As you can tell there is a lot to discover about Portugal and its wines and this just scratches the surface. With Mayson’s book and our Porto friends as our guides we plan to continue exploring Portugal’s wine treasure map.

We are not alone in our interest in Portugal and its wines. The most recent Nielsen data published in Wine Business Monthly, for example, shows surging sales through the measured retail channels. Portuguese wine sales measured by dollar value increased by 13.9 percent in the 52 weeks to 10/03/2020 and by an incredible 35.1% in the month of September.

Fingers crossed that travel and tourism will return to some sort of normal sometime in 2021 so that we can go back to Porto to visit the World of Wine and continue our exploration of Portugal and its wonderful wines.

Wine, Recession, and Coronavirus: This Time is Different?

94528e9a-5845-4871-bef5-3285eca66dd5Last week’s Wine Economist column was a working draft of my analysis of how the coronavirus pandemic might impact the wine industry.  One focus was on the possibility of a recession in at least some parts of the world and slowing economic conditions generally.

An economic downturn would certainly impact the wine industry. Wine is, after all, a discretionary good for most consumers.  I haven’t heard of anyone filling their Costco wagon with wine the way they have done with toilet paper, although I have seen reports of people stocking up for an anticipated quarantine period. People don’t stop drinking wine during times of economic uncertainty, but they do buy less and many scan the shelves more intensely looking for lower prices. The coronavirus alters the menu of wine-drinking occasions, which will have an impact, too.

Rising Recession Probability

Recessions now seem very likely in parts of the Eurozone (the three biggest economies — Italy, Germany, and France are all on the brink). A recession in Japan and perhaps Australia is also likely.  Economic growth is projected to fall in China and a insiders are thinking the unthinkable — that the economy could not just slow down, but actually shrink as manufactured exports and domestic consumption both fall. Data on the first two months of the  year paint a dark image.

Indicators are flashing red here in the United States, too. The stock market’s long bull run ended last week when equity prices fell by a total of more than 20% from their all-time highs.  The Treasury bond market has been under intense pressure and a liquidity event cannot completely be ruled out. Corporate junk bonds are increasingly suspect as investors dump their riskiest holdings to cover loses elsewhere.

Significantly, we have seen truly historic economic interventions designed to head off economic collapse. The Fed’s $1.5 trillion liquidity injection is one example and Sunday’s announcement that it cut its benchmark interest rate target to near zero while also lowering the discount rate is another.. Yes, that’s trillion and zero. Quantitative easing is back, too, in a very big way.

President Trump’s national state of emergency declaration and the follow-up economic stimulus package are also noteworthy. The German government announced an economic stimulus “bazooka” and the end of their zero deficit policy. The list goes on. Some officials say they aren’t really worried about a recession. But it is obvious that they are.

Global financial markets opened with a thud on Monday following the Federal Reserve’s surprise announcement, dropping dramatically on the economic stimulus news and ended the trading session down more than 12 percent. Markets are forward looking for the most part and the big economic actions taken around the world seem to have used up all the ammunition to fight a recession foe. What’s left in case things get worse? I wonder where the markets will be when this column is automatically published early Tuesday morning?

cavatappiMeanwhile, borders are closing, shutting down the flow of people and some services between countries while quarantine measures increasing limit activity within them. Spain has followed Italy into lockdown and other countries seem likely to adopt containment policies too.

The impacts are both global and local — a recent Financial Times article reports on the small business situation in Seattle, home of the first major U.S. outbreak.

Economic forecasters have raised the probability of a recession here in the U.S., although estimates vary and depend on many factors.  If you take each sector into account, as the Wall Street Journal did over the weekend, the lost sales and incomes add up quickly. And then you have to factor in the impacts that don’t show up in the headlines. You know something’s really wrong when the NBA, NHL, Champions League, March Madness, SxSW, and Formula 1 all cancel or postpone events. 

So the wine industry needs to prepare for the recession that may already be here in a practical sense (technically it takes two consecutive quarters of economic decline to meet the definition of a recession). But this recession is likely to be different from the financial crisis of 2008 or the dot com bust before that. It is important to be ready for what’s happening now and not prepare to fight the last war.

cwinePast is Prologue?

There are too many potential impacts to attempt a comprehensive analysis here, so let me focus on just one area of concern: shifting patterns of direct-to-consumer sales.

Demand for wine fell significantly during the Great Recession and a lot of our discussion was about trading down. Consumers kept buying wine, but they moved down a shelf or two some of the time to save money. And they shopped the online discount sites where upscale wineries tried to quietly get rid of their excess inventory.

One of the main lessons that we learned from the Great Recession was the importance of direct-to-consumer sales and the power of the tasting room and wine club to generate margins when managed properly. Wine businesses made direct sales a bigger part of their strategy. Tasting rooms, wine clubs, personalized service — right down to that birthday phone call. Cooper’s Hawk, a surprisingly large wine business built around a tasting-room themed upscale casual restaurant chain, has nearly 300,000 wine club members. Amazing.

One thing that is different about today is that potential consumers seem to be shunning retail spaces as “social distancing” practices are adopted. Tasting room sales are down significantly, according to some reports, and Washington state wine leader Chateau Ste Michelle closed its facilities to visitors. In California, the government has suggested that tasting rooms and other non-essential businesses temporarily shut their doors.

As more and more people are tested for the coronavirus there are likely to be staff shortages, too. This isn’t just wine’s problem, but it is a problem because a revenue stream than many wineries rely upon is interrupted.  What to do?

Is There an App for That?

Other retail sectors are looking to the internet to help them connect with consumers who hesitate to make physical contact and this seems to be a smart move for wine businesses, too. The cornoavirus is only going to make web-based storefronts and mobile ordering a bigger element of any wine business strategy. But web sales are different and it is not enough to simply stock your internet shelves and open the virtual door. You are going to need hooks to attract and hold customers.

Selling on the web invites quick and easy price comparisons. Price, which is always a factor, may become even more important since buyers are not in your tasting room to receive a warm welcome, personal attention, and samples of that reserve wine you keep under the counter for special guests.

Many businesses that entered the pandemic in weak shape will be victims of falling demand, supply chain interruptions, or financial collapse. We have already seen notices in Seattle of restaurants that are permanently shutting their doors.

Everyone hopes that the coronavirus pandemic will fade in a few weeks or months. Even if we are lucky and that timeline holds, a lot of economic damage will have been done and we will start to know if consumers will go back to their old patterns or if (and how much) things have really changed. What will we learn from this crisis? How will it shape longer term behaviors and strategies? Lots of questions and not yet many answers.

If  you are looking for clues about what might happen in the U.S. and European markets when the coronavirus threat starts to pass, I recommend reading a recent Rabobank report about anticipated changes in the Chinese wine sector.  China was hit first and hardest so far by the coronavirus and its experience might provide insights about what comes next in other regions.

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About that bottle of “Coronavinus” wine shown above.  Apparently it is real. I found it on a Spanish website selling for €19.

The Trouble with Being King of the Hill

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For a long time Collio and its neighboring regions in Italy’s upper right-hand corner have been King of the Hill when it comes to Italian white wines. It started in the 1960s when Collio, which had long been known for its excellent hillside terroir, abolished the old share cropping system, which favored quantity over quality, and got a head start on many competitors in the adoption of modern temperature-controlled white wine fermentation practices.

Exceptional grapes were combined with winemaking techniques that preserved fruit and aromas. The results were some stunning mono-variety white wines — Pinot Grigio, Sauvignon Blanc, Chardonnay, and native varieties, too — that established the region’s reputation.

The Trouble with Hills

As I noted last week, Sue and I have been coming to Collio since 2000 and the wines have gotten more and more interesting — strength built on strength. But the trouble with being King of the Hill is that you must constantly defend your position against determined competitors and this has been Collio’s challenge.

Collio’s distinctive terroir is impossible to copy, but other wine regions have worked hard to reel in Collio’s early lead in vineyard and cellar practices. Now there are excellent white wines from many regions of Italy north, south, east, and west. Some of the Vermentino di Gallura wines we tasted recently in Sardinia, for example, were absolutely world class.

And of course there are competitors from all over the world to be considered starting of course with New Zealand, which was only a fly speck on the world wine map back in the 1960s. There is a lot of competition today for the title of King of the White Wine Hill.

Grape Expectations

Collio’s challenge is ironically made more difficult today because of its focus on mono-variety wines. Pinot Grigio was easy to understand in the early days compared with wines identified by appellation. That was an advantage. But today there are Pinot Grigio (and Sauvignon and Chardonnay) wines from all over the world and the Collio brand is perhaps overshadowed in New World consumer minds, which often focus on grape variety more than region.

The focus on grape variety unexpectedly puts Collio in directly competition with New Zealand, California, Australia, France, and a host of other regions. The advantage of a hilltop position is diminished. The fact that Friulano, the region’s signature native wine grape, has been serially rebranded (Tocai, Tocai Friulano, Friulano) under orders from the intellectual property police hasn’t helped.

So Collio is facing increased competition from other parts of Italy and other parts of the world. There is also more competition within Friuli itself. We heard reports of massive new plantings out on the plains that threaten to flood the market with cheaper wines and drive down precious margins. They won’t be Collio appellation wines, but they will still compete. Yikes!

Collio Bottleneck

There are as many responses to the the increased competition as their are growers and producers. One important initiative is Collio Bianco, a signature white wine blend that producers hope can help establish the region’s brand more concretely in consumers minds. Think Collio (not just the grape varieties) for exceptional white wines .

bianco

The official definition of Collio Bianco has evolved. Once this wine was a simple field blend. Then it because a loosely regulated blend of native grape varieties that was noteworthy for its lack of distinctiveness. Kitchen sink wine, made with leftovers not used in the favored varietal bottlings.

More recently Collio Bianco was been defined as a white blend made from just about any mixture of native and international grape varieties. The idea is to give winemakers freedom to make the very best wines and have them bear the Collio label and fly the region’s flag.

A special bottle shape was created to further distinguish this wine from others on the shelf. What do you think?  The longer, thinner neck requires a special cork. Choosing this bottle (it is a voluntary program and the special bottle is not required) is a commitment to promoting the region’s brand as well as the individual producers’ products.

One Blend to Rule Them All?

Our hosts arranged for our press group to taste 24 examples of Collio Bianco. Vintages ranged from a 2013 (Primosic Klin  — it was spectacular) to several 2018s (bottled earlier than usual especially for Vinitaly and maybe not at their very best when we tasted them).

Some of the blends focused on the native grape varieties. Gradis’ciutta, for example, presented a Friulano, Malvasia, Ribolla Gialla blend.  Others producers combined native and international grapes. Venica & Venica’s Tre Vigne blended Friulano, Chardonnay, and Sauvignon. Ronco Blanchis blended Friulano, Malvasia, Sauvignon, and Chardonnay. Marco Felluga’s Molamatta combined Friulano, Pinot Bianco, and Ribolla Gialla. It was, as you might guess, a pretty interesting experience, especially since we tasted the wines blind.

The Weight

The question now is what is Collio Bianco and can it bear the weight of expectations? The wines we tasted showed high quality but, given that they come from different producers, sub-regions, and vintages using different grape combinations, we struggled to find any other defining characteristic. And I guess that was the point of the exercise. Only after the fact did I realize why the tasting was titled “Characterized by not being characterized.”

So Collio Bianco wines have quality and they are diverse. Each is a bit different from the rest and consumer experimentation is richly rewarded. This is surely something, especially since the wines from some other regions sometimes seem to all taste alike. But is it enough? I’m not sure.

The good news is that many Collio producers recognize that the challenge of being King of the Hill and they have determined that quality and distinctiveness is the right response. The region also benefits from a consorzio organization with strong leadership and, just as important, pretty good follower-ship — not something that we always find. The greatest mistake would be to rest on past accomplishments, ignoring the competition’s gains,  or to think in terms of quantity instead of quality. That’s the fast track from the top of the hill to the bottom.

Small is Beautiful? Scratching the Surface of Pennsylvania Wine

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Pennsylvania wine? Do they make wine in Pennsylvania? Is that even a thing?

These were the sort of comments we often heard when Sue and I told friends and family that we were going to try to learn a little bit about Pennsylvania wine while we were in the Valley Forge area for our nephew’s wedding. Even some of the Pennsylvania natives we met were caught by surprise.

A Wagnerian Vision

Most people equate U.S. wine with California, which makes some sense because that state has the most wineries (more than 4500 according to the January 2019 issue of Wine Business Monthly) and makes about 90% of the nation’s wine. But there are actually more than 10,000 wineries in the U.S., so there are more wineries outside of California than in it. There are wineries in every single state and the District of Columbia, too (urban wineries are also a thing).

Wine’s wide domain is a triumph of the vision of Philip Wagner, the founder of Maryland’s Boordy Vineyards, which I wrote about in my book Wine Wars  in a chapter called Martians and Wagnerians.  Wagner imagined  America as a country where wine was made everywhere and consumed everywhere and while his vision hasn’t been fully realized the raw materials are there to see for anyone with a little curiosity.

Pennsylvania, for example, has 285 wineries, which puts it in 6th place in the U.S. wine league table based on number of wineries (not volume of wine) after California (of course), Oregon, Washington, New York, Texas, and Virginia.

1683 And All That

There are at least two ways to look at the history of Pennsylvania wine and both are revealing. Jancis Robinson and Linda Murphy highlight the date 1968 in their excellent survey, American Wine.  That was the year that the Pennsylvania legislature passed the Limited Winery Act, which gave wineries the right to sell directly to consumers and through a limited number of retailers, avoiding the requirement to use wholesalers and the Pennsylvania Liquor Control Board’s monopoly stores.

Pennsylvania wineries would be relatively small and use only Pennsylvania grapes, but they could be economically sustainable because of their favorable market access. Pennsylvania already had grapes — it was the #4 table grape producing state. Now a wine industry could begin to emerge.

Robinson and Murphy only briefly reference Pennsylvania’s much longer wine history, which is discussed in greater depth in Thomas Pinney’s A History of Wine in America (Vol. 1, From the Beginnings to Prohibition). Here 1683 is the critical date. That’s when Andrew Doz planted a vineyard for William Penn. The European vines soon died, alas, but not before creating a natural hybrid with a native variety, which was named Alexander and became the basis of America’s first commercial wine production. Benjamin Franklin was an enthusiastic proponent of the Pennsylvania industry both here and abroad. Wine runs deep in Pennsylvania.

Finding Wine at Penns Woodspennswoods3

We only had time to visit one winery (now that really just scratches the surface), but a well-informed friend helped us choose a target that she thought would tell us something about Pennsylvania wine’s past, present, and future potential. So we pointed our rental Hyundai Santa Fe toward Chadds Ford and Penns Woods Winery.

Italian wine importer Gino Razzi decided he wanted to make wine, not just sell it. He started in 1997 with Symposium, a Montepulciano d’Abruzzo, which received 95 points from Wine Spectator. This success prompted a search for the ideal Pennsylvania location — not too far from his business in Philadelphia — and in 2000 he purchased and re-named the Smithbridge Winery in Chadds Ford. An additional vineyard was developed 20 miles northwest near Coatesville. The first Penns Woods wines appeared in 2004.

Penns Woods produces 4000-4500 cases per year depending upon Mother Nature’s generosity, selling most of it directly at the historic country house tasting room and to wine club members. About 20 percent is allocated to on-premise and retail accounts, where there is strong demand.

We visited on what started out as a sleepy Saturday morning, but things soon heated up. Seated tastings took place on the covered patio, where small groups can learn all they want about the wines and the winery. A bride party suddenly arrived and headed to a long table out in the meadow where concerts and other events take place. These guests purchase wine by the bottle or glass without the guided formal tasting. The bride and her friends seemed to be having a wonderful time and we had a great time, too.

Penns Woods make a large range of wines and wine styles from dry to sweeter and from the European grape varieties that William Penn struck out with to hybrid varieties that were once the only game in town hereabouts. So, for example,  we tasted Pinot Noir (a recent experiment that showed nice spice and good potential) and also Chambourcin, a French-American hybrid that we learned was a favorite of Carley Razzi Mack, Gino’s daughter and business partner.

We were especially fond of a distinctive 2016 Gruner Veltliner from a Bucks County vineyard and a 2015 Cabernet Franc Reserve from 30+ year old vines.

Small is Beautiful

Penns Woods impresses us on many levels. First, the people we met at Penns Woods know who they are and what they want to be. That means a strong focus on quality in all the winery’s products and operations. They are also firmly rooted in their region and they appear to want to nurture relationships with their customers as much as they nurture the vines themselves. Penns Woods represents Pennsylvania very well.77541

What’s the future? Well, I think the adage that “small is beautiful” might apply here and perhaps to Pennsylvania more generally because of the way that the wine laws steer the market.  Success isn’t measured only by scale but also by the quality of the wines, the quality of the relationships the wines help build, and the satisfaction that these things bring.

We have only scratched the surface of Pennsylvania — lots more to taste and learn. American wine is nothing if not diverse and I am sure this is true of Pennsylvania. Impossible to generalize based on just a couple of wines and wineries. But this much I can say:

Penns Woods and other Pennsylvania wineries are helping fulfill Philip Wagner’s dream of a healthy, civilized America covered with vines, filled with wineries, and populated by wine-loving citizens.  Isn’t it about time you made a visit to a Wagnerian winery near you? Cheers!

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Thanks to Rachel Kuehn, sales manager at Penns Woods Winery, for taking time to answer all our questions. Special thanks to Denise Gardner for her good advice.

Congratulations and thanks to Anna and Jeffrey, who exchanged vows on a rainy day in Valley Forge. Your celebration gave us an excuse to scratch the surface of Pennsylvania wine!

State of the Art? Aussie Wine Tourism Invests in Asia & Digital Strategies

unwtoWine tourism is an increasingly important element of wine marketing and sales as both authenticity and identity grow as ways to differentiate products in today’s incredibly crowded and competitive global market. Nothing like the personal experience that wine visitors often receive to turn customers into ambassadors.

Of course wine tourism does more than sell wine because tourists spend time and money on food, lodging, local crafts, and more. With proper planning and broad local participation (which doesn’t always happen), wine tourism can be an engine of sustainable rural development. Or at least that’s the idea behind the United Nations World Tourism Organization (UNWTO) global wine tourism conference, which will be held this September in Chisinau, Moldova.

So wine tourism is on my mind and I was therefore excited when I received an email from Wine Australia about $7.4 million in grants to support 21 regional wine tourism initiatives. That’s a lot of seed money — what do they hope to grow? And how?

The grants range from the relatively small and focused projects ($20,000 to digitalize the Canberra district’s wine map and translate it into additional languages) to the fairly large and ambitious initiatives (grants of $250,000 each to McLaren Vale, Adeliade Hills, Swan Valley, and Barossa Valley wine growers associations).

The Swan Valley project caught my attention because it appears to be the sort of focused multi-level, partnership-driven approach to regional development through wine tourism that I think often works best. Here is a summary of the grant:

Singapore Visitors to Swan Valley: establish a consortium of industry, government and academia to work collaboratively on: an audit of existing services/products, up-skilling of tourism operators and development of tourism products, with a strong focus on the Singapore market.

There are two themes that run through the Australian projects chosen to receive these wine tourism grants. The first is a focus on Asian tourists and especially Chinese tourists, with Hong Kong and Singapore also in the frame.  The Geelong Winegrowers Association recognizes (as do many others) that a successful program for Chinese wine tourists means more than opening the cellar door. Here is the description of their grant project:

China ready – developing regional and operator capabilities to attract international tourism and increase average spend: development of regional digital and promotional assets; dedicated content for the Chinese visitor to be used across the digital platforms (including WeChat and website) and China-ready workshops encourage collaboration between wineries and tourism operators.

Getting “China Ready” is an important goal for many international wine destinations. When I checked in a few years ago there were only a small handful of Chinese language speaking  winery guides in Napa Valley — most wineries were far from “China Ready” then.

0zChinese visitors are especially important for Australia. Proximity is one factor, of course, but wine market strategy is another. China is now Australia’s #1 wine export market, surpassing both the U.S. and the U.K.

The second theme I see in the Australian grants is an emphasis on digital technology. No surprise there: people spend more and more time fiddling with their smart phones. It seems like screen time is replacing face time everywhere. If you want to get on wine tourists radar, you need to get on their screens first.

There are a number of interesting initiatives on the grant list ranging from simple websites (in multiple languages, of course!) to augmented reality and virtual reality tours. Riverland Wine’s project, seeks to use technology to stir interest in a region that is less famous than the Barossa or Hunter Valleys.

Riverland on the verge: international market research and development of virtual reality (VR) content to give international visitors virtual tours of Riverland wine attractions from local wine centres.

Most of the grants will support marketing projects, as you might expect. I am particularly interested in the ones that also seek to shape what visitors do once they arrive and how those activities can support sustainable rural development projects like those we will discuss in September at the UNWTO conference in Moldova!

Congratulations to Wine Australia on its 21 wine tourism initiatives. I look forward to learning more as the programs unfold.