Republic of Georgia: First Impressions of a Wine Industry in Transition

qvevri1Sue and I were fortunate to be able to extend our visit to the Republic of Georgia at the conclusion the  of United Nations World Tourism Organization’s (UNWTO) first Global Conference on Wine Tourism. The conference’s focus was on wine tourism, but we wanted to learn more about the Georgian wine industry itself.

Georgia’s DNA

As I explained in an earlier column, I came to Georgia full of questions about the wine industry here and with a preliminary hypothesis to help me shape the inquiry. Here’s what I was thinking.

Georgian wine is very old and the wine culture is strong. I have never been anywhere where wine was so central to the culture. Wine and vine were everywhere we looked. Wine grapes were a central element, for example, of a Soviet-era war memorial we saw in Sighnaghi. And grape vines are at the heart of the image of Georgia as a Christian nation. Saint Nino fashioned the first cross using her own hair to bind two lengths of grape vine. Wine is Georgia’s DNA.

A great deal of the wine that is consumed is produced by families for their own use and to give to friends and neighbors. The fact of such large family production necessarily shapes the market. Not much imported wine enters Georgia, for example. And a great deal of the commercially produced wine must be exported.

The Russia Factor

Russia was for many  years the largest export market for Georgian wine and because of this the focus was on semi-sweet red wines made in state-owned factories and often sold in bulk. Quantity was a priority over quality. But then came the Russian embargo of Georgian and Moldovan wines in 2006 and in an instant the most important market, accounting for perhaps 80 percent of sales, was gone and did not return until 2013.vino1mo

The Russian embargo was the worst thing that could have happened to the Georgian wine industry in the short term and the best thing in the long run. In retrospect it is easy to see that such complete reliance upon a single foreign market for wine sales was not a healthy situation.

The sudden loss of that market forced Georgian producers to develop new markets, improve quality to be competitive in those markets, and find strategies for product differentiation to raise margins and secure market niches.

Silk Road to China

A recent report lists Georgia’s five largest export markets as Russia, Ukraine, China, Kazakhstan and Poland although there have been substantial sales increases (albeit from a low base) to Germany, the UK, and Canada.

The recent  rise in the Chinese market has been particularly noteworthy and follows on investments in Georgia wine shops and culinary centers that were established in China. There are ambitious plans to open 100 Georgian wine houses there.

One wine executive we talked with noted a “Silk Road” connection that works in Georgia’s favor. Georgia has negotiated a preferential trade agreement with China and Chinese traders and investors who visit the country taste and enjoy the Georgian wines, learn about the country’s 8000 year wine history and its Silk Road connection. Nothing could make more sense than to buy Georgian wine with its long history and connection to China. Very smart of Georgian producers to leverage this cultural advantage!p1110666

Natural Wine Buzz

Here in the United States much of the buzz about Georgian wines concerns natural wines made using the traditional qvevri clay containers to ferment and sometimes age the wine wines. Alice Feiring is a leading advocate of these wines and her recent book For the Love of Wine gives a highly personal account of her passion for them.

No one we talked with is sure how much Georgian natural wine is made by families for their own consumption, but commercial production is relatively limited. One producer estimated total output of perhaps 120,000 bottles more or less with several wineries in the 3000 to 6000 bottle capacity range. Little of this wine is sold domestically in Georgia because of its relatively high cost and the existence of family-produced alternatives.

So the focus is clearly on export to markets where natural wines have a strong presence including Italy, France and Denmark, and developing natural wine markets such as UK, Canada and the United States.

Given all of this my working hypothesis when we left for Georgia was this. The Russian market is the past, now they need to look to the future. But which future? The natural qvevri wines are Georgia’s key to differentiation in the new markets, but high quality natural wine is too narrow a category to carry the ambitions of a great wine producing nation.

Process of Elimination

My hypothesis, based on the process of elimination, was that the way forward is for Georgia to focus on increasing the quality of their conventional wines, making them in a clean international style and differentiating by stressing a small number of exciting indigenous grape varieties (perhaps red Saperavi and white Rkatsiteli and various blends) from among the dozens of native Georgia wine grapes.

In other words, I saw Georgia in a very conventional way, much as I view Turkey or Portugal, for example. That was then. What do I think now? Come back next week to find out.

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Thanks to the Georgia National Tourism Administration for inviting us to extend our visit to Georgia and generously providing  us with help in visiitng the wine regions and meeting wine producers.

Practical Guide to Wine Tourism in the Republic of Georgia: UNWTO Lessons

tbilisi-001Sue and I  recently returned from the United Nations World Tourism Organization’s (UNWTO) first Global Conference on Wine Tourism in Tbilisi, Georgia and we are still processing the experience.

One interesting feature of the conference is that the sessions weren’t confined to the usual convention center or hotel ballroom locations. The organizers boldly took the program on the road to four interesting wine tourist venues.

This experiment provided an interesting opportunity to talk about wine tourism while actually being wine tourists. Here is what I think I learned in the process.

First Impressions: A Georgian Supra

The conference opened with a gala dinner (hosted by Georgia’s Prime Minister Giorgi Kvirikashvili) at the beautiful Funicular Restaurant, which is located high on the hill overlooking Tbilisi next to the television tower. The view from the patio was spectacular (see Sue’s photo above), especially as the sun went down and the lights came up, highlighting the monuments. It felt like you could reach out and the touch the city.0a1_6242

There was good Georgian wine at the dinner, but the focus more more on Georgian food, wonderful polyphonic singers and traditional dance groups. Professor George Bagashvili was the master of ceremonies and he explained all that we were seeing and hearing. He deftly led us through the traditional series of supra toasts, but in a tourist-friendly way (without the feared requirement to drain endless glasses or horns of high-proof  chacha).

The gala dinner at the scenic restaurant was a reminder that wine tourism is first and foremost tourism and it is generally a mistake to think of it out of the context of other tourism opportunities. There will be some who will come to Georgia just for the wine, but most will be attracted by the complete package — sights, sounds, culture, people, food and so on with wine playing a larger of smaller part in each case. The dinner was a great introduction to Georgia’s best and a good lesson that wine tourism is most effective when it is embedded in the broader context.

1011 and All That

We loaded into coaches the next morning and headed east toward  Kakheti, the main wine region and the location of our first meetings. We stopped at the historic Alaverdi Monastery, were wine has been made using the traditional qvevri method since 1011.

We toured the monastery, visited the marani cellar with its qvevri vessels, and tasted one of the wines, a complex golden Rkatsiteli shown below. After the tour we adjourned to a cafe where we had coffee and cups of delicious matsoni (local yogurt) with local honey and walnuts (a fabulous combination).

The wine tourism here was seamlessly integrated into the cultural elements and featured local food products and the opportunity to purchase traditional crafts, too. A great tourist and wine tourist stop. And this is not an accident.p1110666

Georgia correctly sees tourism as an economic development opportunity, especially in rural areas like Kakheti. The Georgian government has worked to develop tourist infrastructure and marketing strategies in partnership with international development organizations including the World Bank, EBRD and USAID.

The Alaverdi Monastery is an example of how these efforts have come together successfully to leverage history, culture and wine to create real opportunities for local workers and producers while giving tourists a memorable experience.

Tunnel Vision?

If the monastery is a good example of adapting something quite old to create a wine tourism experience, our next stop showed a more contemporary touch. Khareba Winery offers a focused wine tourism experience built around a huge network of tunnels that date from Soviet days. The tunnels were reportedly built with military use in mind before eventually becoming a regional wine storage facility and now a wine tourist attraction.

Our afternoon conference session was held up at the Saperavi restaurant with its great view of the valley and then we walked down the hillside to the tunnel with its exhibits, wine tasting, and a group of polyphonic singers who filled the underground space with sound.

The tunnels are a noteworthy attraction, but there was more. A path meandered through the park-like grounds and along the way the visitor is offered the chance to bake bread in a traditional clay oven, watch chacha being made (and taste some, too), make churchikhela, which are strings of nuts dipped in concentrated grape must. A moveable feast was laid for us along with path with traditional dishes, including mountain trout and spit-roasted meat.

As at the monastery, the experience was orchestrated to create a complicated sensory experience filled with sights, sounds, smells and tastes mixed with a strong sense of Georgian culture. Wine was at the center of the experience, but there were many threads interwoven here.

A Georgian Chateaucastle

Chateau Mukhrani, the conference venue for the final day, was built in 1878 and, as the vintage image suggests, it resembles a French chateau to a certain extent. The likeness has been heightened by recent upgrades aimed at enhancing wine tourism.

The grounds and the facilities are beautiful and the wines are good, too, made mainly in the international style under the supervision of Frenchman Patrick Honef. We especially enjoyed the Reserve du Prince Saperavi that was served at the closing dinner

The reaction of some of the international conference participants was noteworthy. What is a French chateau doing here? Why isn’t this winery made along traditional Georgian lines, like the monastery, for example? The winery’s architecture, which most visitors will find appealing, was a turn-off to those seeking greater authenticity.

So why the disappointment? I think it is a example of something that I call the “globalization paradox.” We love globalization because of its ability to bring things from all around the world to our towns and cities. Good espresso, authentic wood-fired pizza, designer shops — it is great to have these things nearby creating a cosmopolitan local environment.

But there is a downside. Everyone wants these things and for the most part they get them. This means that when we travel abroad we see many of the same things we already have back home and not the quaint frozen-in-time images that we expect.

Globalization makes the local more diverse and interesting, but the foreign is rendered less exotic and disappointingly more like home. Sigh. Do you see how a French chateau in Georgia fits this pattern?  It definitely adds to the wine tourism experience in Georgia, even if it takes away a bit from the experience that  the seasoned international traveler may be seeking.

This video will give you a sense of Chateau Mukhrani and how it has been designed to serve as an attractive wine tourist destination. It is good to remember that wine tourists are a diverse group and a great many of them will enjoy visiting a chateau … even if they do it in Georgia, not Bordeaux.

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How did the conference’s experimental format work? As you might expect some venues worked better than others for particular purposes. And I am not sure that everyone realized that we were both discussing wine tourism and practicing it at the same time, meaning that some teaching moments were probably lost. But I applaud experiments like this and hope the organizers continue to innovate at next year’s UNWTO meeting in Mendoza, Argentina.

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A quick shout-out to George Piradashvili and the staff at Chateau Mere, where we stayed during our brief tour of Kakheti after the conference. Chateau Mere is a good example of how wine tourist infrastructure can be creatively developed to serve diverse visitor needs. Personal thanks to George for sharing his great food, fine wine, and Georgian wine business insights with us.

Global Wine Tourism Conference in Georgia: A Preliminary Report

Sue and I have recently returned from the untwo2United Nations World Tourism Organization’s (UNWTO) first Global Conference on Wine Tourism in Tbilisi, Georgia and I know just what you are going to say. What in the world is the UN doing sponsoring a wine tourism conference and why was it in the Republic of Georgia?

First Things Second

Let me answer the second question first. Georgia is the self-styled “Cradle of Wine,” with documented wine production going back 8000 years so it certainly has standing. It is also probably the most wine-centric culture I have ever experienced. Wine is everywhere. Just about everyone drinks it, most families make it for their own consumption, and its symbolic and practical importance is everywhere to be seen. Wine and vine — these are key elements of the Georgian DNA. Really.

Georgia is a poor nation, especially outside of Tbilisi’s bright city lights. Mexico’s per capital GDP is about $9000 according to World Bank statistics. Georgia’s is about $3800. So anything that can create employment opportunities (especially rural jobs) and spur economic development is welcome here. Tourism of the nature and adventure varieties is a big contributor to national income. Why not leverage Georgia’s rich culture, and especially its deep wine traditions, to create economic opportunity?

So it is easy to see why Georgia would volunteer to host a conference like this — and they did a magnificent job.  But what’s the UN connection?

Wine Tourism Rationale

The basis for UN programs in tourism and now wine tourism is surprisingly strong, as the “Georgia Declaration on Wine Tourism (pdf),” which was promulgated at the conference, makes clear.  The UNWTO’s mandate, for example, states that,  “The fundamental aim of the Organization shall be the promotion and development of tourism with a view to contributing to economic development, international understanding, peace and prosperity, and universal respect for, and observance of, human  rights and fundamental freedoms for all without distinction as to race, sex, language or religion”. Tourism cannot accomplish all these goals by itself, but it can be part of the process.

Tourism is one way that we experience and understand other nations, peoples, and cultures. It creates jobs, of course, but it has the potential to also increase understanding. International tourism has been one of the global growth industries of the last 30 years, so it is not unreasonable that the UN pay attention to this economic and cultural exchange vector.

The Sustainable Development Goals (SDGs), approved by the  United Nations General Assembly in 2015,  includes tourism as a tool for sustainable economic development. “By 2030,” the document specifies, the UN should “devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”.

The UNWTO had previously identified gastro-tourism as being an important element of its sustainable tourism development program. The wine tourism initiative and this conference were organized as part of the gastro-tourism program.

About the Conference

The first UNWTO Global Wine Conference attracted more than 250  participates from 42 countries. My panel on best practices in wine tourism included speakers from Italy, Canada, Japan, Argentina and the United States  (I talked about Napa’s success and also its challenges).

The organizers designed the program to minimize talking head blah-blah-blah and maximize focused interaction among the participants. (I have never before traveled through 11 time zones and back in order to speak for 10 minutes!) There was a lot of knowledge and experience in the room and it made sense to draw it out through small group discussion.

I think the strategy worked on the whole and  Sue and I feel our time was well spent, but I wish there have been an opportunity for greater depth on at least some topics. The conference moves to Mendoza, Argentina next year — it will be interesting to see how the program evolves.

One interesting innovation was to move the conference out of the typical sterile hotel ballroom or convention center environment and to have the sessions in wineries, where wine tourism strategies could be seen in practice as well as discussed in theory. Come back next week for an analysis of what we learned from these experiences.

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uncorkSue and I were delighted to meet Matt Horkey and Charine Tan at the UNWTO conference. Their fist book, Uncorking the Caucasus: Wines from Turkey, Armenia, and Georgia, was published last week and it is recommended reading  if you are planning a wine tour to  this region or are interesting in these wines generally. Sue and I found their recommendations for Georgia and its wines on the mark.

I like this book so much that I wrote a publicity “blurb” about it. Here it is:

Matthew Horkey and Charine Tan take us along for the ride as they travel the wine roads of Turkey, Armenia and Georgia in their intriguing new book Uncorking the Caucasus. It is exciting to see these ancient wine regions through their eyes and to experience the ways that the very old and the very new come together through wine. A perfect read for wine lovers looking for new wines, new regions, and new perspectives. Pack your bags and join Matthew and Charine as they uncork the Caucasus. Highly recommended.

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This is the first in a short series of columns on the UNWTO conference and the Georgian wine industry. Thanks very much to the UNWTO and the Georgia National Tourist Authority for making our participation in this conference possible.

Everything you always wanted to know about Chianti Classico (and lots more!)

nestoBill Nesto MW and Frances Di Savino, Chianti Classico: The Search for Tuscany’s Noblest Wine. University of California Press, 2016.

I didn’t know much about Sicily and its wine industry until I read Bill Nesto and Frances Di Savino’s 2013 book The World of Sicilian Wine  and it really opened my eyes. I enjoyed the detailed analysis of the regions, the wineries and the wines and I especially appreciated the  economic history of the wine region and its complicated relationship with international markets. What an interest place!

I approached their new book on Chianti Classico from a different perspective. While I am no expert on Chianti and its wines, I am way more familiar with this region that Sicily. (A section in my 1990 book Mountains of Debt analyzed the fiscal history of Renaissance Florence, including their wine tax scheme.)

Would Nesto and Di Savino be able to open my eyes to this relatively familiar place in the same way as the earlier book? Yes! What an interesting book.

Eye-Opening (Literally)

One chapter literally made me rub my eyes. It was the chapter on viticulture, which is complicated in Chianti Classico as elsewhere with competing theories about the best way to train and treat the vines to get the best quality or maximize quantity.

This is not a new discussion and as evidence of this the authors cite one of the most famous works of Italian Renaissance art — the 1338-39 Lorenzetti  frescoes of the allegory of good and bad government that are found in Siena’s town hall. I have seen these images several times (the distinguished economist Robert Mundell, who taught some years before me at the Johns Hopkins Bologna Center, first drew them to my attention), but I never appreciated the full story they told.

There, within a part of the image on the effect of good government, are three different vine systems! One features narrow rows of densely planted vines. A second has rows widely spaced with interstitial crop plantings. And a third is planted in the Etruscan style with trees for the vines to climb. Fascinating.

1338-1340-lorenzetti-good-government-country.

What is Chianti?

The over-arching question this book addresses is “what is Chianti?” Newcomer wine consumers are often confused about whether Chianti is a grape or a region, but that’s not what we are talking about here. Rather the issue, which is thoroughly examined over the course of eleven chapters, is how should the Chianti region be defined and what wines should therefore receive the Chianti designation.

Once upon a time Chianti meant the area that we now call Chianti Classico, but at several critical points the borders of the appellation were expanded to include zones called “External Chianti,” which vastly increased the volume of Chianti wine available.

Changing the borders of any appellation creates conflict (hey Mr. Champagne, I’m talking about you!). Chianti has in fact been the focus of at least several wars including a real war in the middle ages between the city-states of Florence and Siena and an economic and political war between the interests of Chianti Classico and those of External Chianti.

Nesto and Di Savino take sides in the Chianti wars, especially over the geographical boundaries and cite a previously obscure edict issued by by Medici grand duke Cosimo III in 1716 defining Chianti narrowly as Chianti Classico. They argue for a return to Cosimo’s borders, making the case that the appellations in External Chianti are now strong enough to compete without the Chianti designation. This is bound to stir up further controversy. Stay tuned.

Full of Surprisesrooster

Chianti Classico is packed with information and insights — something for all wine lovers. The early chapters introduce us to the controversies and how they (and Chianti) evolved over several centuries. Great depth and detail here. Then several chapters examine the geography, grape varieties, viticulture, wine-making and winemakers. Finally, each subzone is explored with profiles of the major wine producers that double as a wine touring guide. Cosimo’s 1716 edict appears at the end in the form of a Da Vinci Code-style mystery story.

Regular readers will not be surprised to learn that my favorite part of the book is the set of chapters on the economic history of Chianti, Chianti Classico and the Chianti Wars. Economic forces were unusually important in shaping this wine region over the years and Nesto and Di Savino do a masterful job turning what is obviously pain-staking research into a lively and informative narrative.

There were many surprises. I had no idea that international trade was such an important force in Chianti in the earliest years. I had no idea that Chianti was such a valuable “brand” long ago, either, or that the story of the straw covered flask bottled would be so complicated and interesting.

And I did not realize that Chianti Classico almost ceased to exist at one point in the post-WWII era when high cost producers found themselves undercut by cheap bulk Chianti wines that drove prices down to, for them, economically unsustainable prices. The story of how this happened and how the Chianti Classico producers rallied to revive their industry makes great reading.

Does Chianti Classico live up to my high expectations for it? Yes! A great book for anyone who loves Chianti or Tuscany or … wine!

“Your Wine Questions Answered” is More Than Just a Great Wine Book

51f7cvacx8l-_ac_us160_Més que un club is the motto of the Barcelona soccer team. Barcelona is more than a just soccer club, according to its ardent fans, it is a commitment to values that extend well beyond sports. During the dark years of Spain’s Franco dictatorship, supporting Barcelona was a way to make a pro-democracy (and pro-Catalonia) statement.

Més que un wine book?

Jerry Lockspeiser’s new book Your Wine Questions Answered: the 25 things wine drinkers most want to know is more than a great wine book, it is also a way to make a statement and change the world one student and one school at a time.

All the money that Lockspeiser’s book generates will go to help build primary schools in Sierra Leone, West Africa. Jerry writes that

In 2010 I visited Sierra Leone with international development charity ActionAid. Sierra Leone is one of the world’s poorest countries and education is fundamental to improving lives. When I came back from the trip I suggested to two wine business friends that we create a wine brand and give all our profits to finance the building of primary schools. We set up the Millione Foundation, created the Millione brand, sourced a lovely lightly sparkling Rosé from Italy, and set about selling it.

So far we have financed the building of five schools, educating 1500 children. The more books and wine we sell, the more schools we will build.

This is obviously a very good cause and a great way for wine book buyers to support a worthwhile initiative. As I wrote in the final chapter of Money, Taste, and Wine: It’s Complicated, sometimes wine can be more than a nice drink. Sometimes it can help change the world one cork or glass at a time. I was talking about some inspiring initiatives we saw in South Africa and now Jerry Lockspeiser extends this model from corks and glasses to books. What a great idea.

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Jerry at the book launch event at Daunt Books in London. Sold out 100 copies in an hour.

What about the book?

So what about the book?  Lockspeiser is pitching his book to wine newbies — people who like to drink wine but don’t know much about it and want to learn more without too much pain. The book works for this audience — each brief chapter answers a typical wine question in two to eight pages and ends with a “one gulp” summary.

The goal is to make new wine drinkers more confident in their choices so that they enjoy wine even more.  Jerry never talks down to the reader because, after all, everyone is a newbie at some point. Wine should make us happy and this book’s cheerful, helpful tone underlines that fact.

But Your Wine Questions Answered is not just for newbies. Jerry Lockspeiser knows wine and the wine business like the back of his hand and he knows how to talk about wine, too. Reading this book is like sitting down with Jerry and having him tell you about the world he knows so well in an informative and interesting way. This is so much more than a bluffer’s guide!

Here are a few of the chapter titles to give you an idea of the the questions that are answered here. Sometimes, as in the chapter on Cabernet Sauvignon, the initial question is just a way to open a door to larger issues (naming wines by their grape varieties, for example, as opposed to their region of origin).

  • WHAT IS CABERNET SAUVIGNON ?
  • WHY DO THEY SAY SOME WINES HAVE ‘A HINT OF GOOSEBERRIES’ ?
  • WHAT IS THE DIFFERENCE BETWEEN CHAMPAGNE AND CAVA ?
  • WHY DOES FRENCH CHARDONNAY TASTE DIFFERENT TO AUSTRALIAN CHARDONNAY ?
  • HOW IS ROSÉ MADE ?
  • HOW LONG WILL WINE KEEP IN AN OPEN BOTTLE ?
  • WHY DOES  WINE COST SO MUCH ?
  • ARE HEAVILY DISCOUNTED WINES WORTH THE FULL PRICE ?
  • WHAT IS THE BEST WINE ?
  • IS IT TRUE THAT ORGANIC WINE DOESN’T GIVE YOU A HEADACHE ?
  • WHY DOESN’T THE WINE I BROUGHT BACK FROM HOLIDAY TASTE AS GOOD AT HOME ?
  • DOES IT MATTER WHAT KIND OF GLASS I DRINK WINE OUT OF ?
  • WHAT IS THE BEST WAY TO CHOOSE WINE IN A RESTAURANT ?

Every chapter gave me something new to think about or a new way to think about something I thought I knew pretty well. Your Wine Questions Answered is a great wine book. But it’s really more than a great wine book because of the ambitious school project in Sierra Leone and progressive values it supports. Available at Amazon US,  Amazon UK  and Waterstones.

Book Review: Navigating Wine Business in the Napa Valley

perfectCraig and Kathryn Hall, A Perfect Score: the art, soul and business of a 21st-century winery. Center Street (Hachette): 2016.

They say that it is a mistake to judge a book by its cover and sometimes that applies to the book title, too. I was prepared not to like A Perfect Score because while the 100-point wine phenomenon is interesting, it ranks pretty far down my list of priorities. But I am glad I didn’t rush to judgement in this case because the book really grabbed my attention even if the title did not.

This is the story of how Kathryn Walt Hall, who has roots in California wine, and Craig Hall, who does not, ended up with Napa Valley vineyards, two wineries there, and ultimately with a 100-point score from Robert Parker. Although the max point score is the climax of the tale, the route there is what I found most interesting.

This book appeals to me as an intelligent account of contemporary wine business in Napa Valley. There are four elements that I want to call to your attention.

The first is the story of the struggles that occurred to purchase and develop the vineyards and wineries, with special focus on the many regulatory hurdles that need to  be overcome. Napa Valley is an extreme example of the tensions that arise when you have rapid expansion of the wine industry and booming wine tourism in the relatively compact region.

Everyone loves Napa but the needs of the wine industry have been crossing wires with lifestyle and environmental concerns for as long as I can remember and the tensions seem to get worse each year. In the meantime, property values have increased to the point that many who work in Napa cannot afford to live there, putting intense pressure on the region’s infrastructure.  Anyone who has driven Napa’s congested roads or tried to get in or out of the city at rush time will know what I mean.

The Halls’ first-person account of their attempts to navigate all these interests and concerns is required reading for anyone in the wine industry, especially those outside of the Napa bubble, as these tensions and pressure points are not going away.

The second story line that I found interesting was how a high-end Napa Valley wine producer deals with the Great Recession. Slack demand was addressed in many ways, including special pricing deals that aimed to move product without undermining the brand. Bank finance was replaced by partnership funding. And, like other wineries, the Halls moved to increase direct-to-consumer sales.

Napa Valley wine is a luxury good by most reckonings and I enjoyed the Halls’ chapters that documented the luxury and celebrity culture and rituals that have evolved, even if I find some of it a bit over the top. (Maybe someone will make a television series on Lifestyles of Rich and Famous Winemakers?)

The Napa Valley auction, which defines luxury and celebrity in the wine world and is discussed here, is good business, good fun, and a mechanism to raise millions of dollars for charity. Nice to see the various elements inter-woven.

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Finally, I took special pleasure in the story of Craig’s accidental discovery of the old Napa Valley Cooperative Winery facility and the Halls’ eventual purchase and renovation of this historic property, which combined a bit from all the topics above. I loved learning more of the history of this facility and knowing that it has been restored to productive purpose.

You may be familiar with the photo above, which shows the original  Napa Valley sign, which has appeared in so many tourist photos and postcards. If you look closely you will see a young Robert Mondavi on the far left representing C. Mondavi & Sons. Look at the list of the wineries that paid for the sign and you will see that Co-Op was another sponsor. What a lot has changed in Napa since those days!

A Perfect Score is an interesting account of Napa Valley wine industry triumphs and frustrations. A worthy addition to the wine business bookshelf.

(Republic of) Georgia on my mind: Wine tourism’s future in the “Cradle of Wine”

In a few days Sue and I will be jetting off to the Republic of Georgia for the first United Nations World Tourism Organization Global Conference on Wine Tourism.We have been trying to learn all we can about Georgia and its wine and wine tourism industries in preparation for the trip. I thought you might be interested in three of the resources we have found especially useful.

Taber’s Final Frontier

George Taber spent the best part of a year circling the globe collecting wine tourism experiences that he chronicled in an entertaining 2009 book called In Search of Bacchus.  Most of the places Taber visited would be on any globetrotter’s wine tourism map — Burgundy, Bordeaux, Tuscany and so on — and his reporting and first person accounts are very interesting. Taber waited until the final chapter to veer off the conventional road map to visit Georgia, which he calls wine’s “final frontier.”

Taber had a great time in Georgia, the “Cradle of Wine,” 8000 vintages and counting. He loved the people and culture and was fascinated by the wine, reporting on the traditional wine-making process using big clay jars called Qvervi (which are buried in the earth as shown below) to ferment and store the wine until ready to drink.

Taber comments on consumption patterns as do most who write about Georgian wine. A rule of thumb, he notes, is to allow for two or three liters of wine per person at a supra banquet or celebration, where tradition requires that guests drain their glasses after each toast.

When celebrity chef Anthony Bourdain visited Georgia (see video above) he also cited high alcohol consumption and complained of frequent hangovers, although this might be Bourdain being Bourdain as much as Georgian tradition. I will let you know what I find out.

Wine Tourism as Economic Developmentqvevri1

My wine economics colleague Kym Anderson visited Georgia a few years after Taber to analyze the wine industry’s potential as an engine of economic development. His 2012 report, Georgia, Cradle of Wine: the next “new” wine exporting country? (pdf), makes good reading.

Anderson found the wine market quite segmented. Most of the large domestic demand was satisfied by basic traditional wines, a surprisingly large proportion being home-produced. Industrial production of wine for export to former Soviet countries made up a second market segment. Rising quantities of wine are made for export to other markets (including US, Canada, UK, etc), where quality expectations are different than the Russian market and production adjustments necessary.

A recent report lists Georgia’s five largest export markets as Russia, Ukraine, China, Kazakhstan and Poland although there have been substantial sales increases (albeit from a low base) to Germany, the UK, and Canada.

Anderson clearly sees potential for Georgian wine exports if industrial and agricultural upgrading continues, but he is especially interested in wine tourism, which he sees having potentially greater  impact on rural incomes and employment. Georgia’s decision to host the UNWTO program is consistent with this priority. International tourism is an important income source for Georgia and wine tourism has growth potential.

Anderson makes a number of specific recommendations for upgrading hospitality and winery facilities to make them more appealing to wine tourists. We will be interested to see what progress has been made in this regard in the short time since Anderson’s report.

Back to the Future of Winefeiring

Natural wine proponent Alice Feiring seems to have found her “tribe” in Georgia. Her 2016 book For the Love of Wine is an entertaining, informative and deeply personal account of her encounters with Georgia wine and wine-makers.

Feiring is taken by the naturalness of the Qvervi wine-making process and the dedication of those who kept this tradition alive during the long Soviet wine winter. Whereas Anderson’s concern is economic development, Feiring worries more about the soul. She sees Georgia’s past as a path to a better, more soulful future.

But she worries these traditional wines are threatened by a new foe — those US, UK, and EU markets that seem to demand “me too” wines made in an international style with lots of additives and manipulation. For Feiring, Russian communism and international capitalism are “twins separated at birth” in the sense that each destroys the essence of wine in its own way.

Feiring’s mission is to support those who seek to make high quality traditional wines. But there are problems. The Georgian domestic market for such wines with their necessarily higher price compared with home production is not large enough to support the craft industry, which means that buyers must be found in other countries.

Feiring’s tribe needs to grow to support the wines she treasures. The natural wine movement is growing in part due to her determined efforts. Perhaps wine tourism will convert visitors to natural wine (and Georgian wine) ambassadors.

That is a sip of what I’m learning and a hint of the sorts of questions we hope to explore. Georgia is definitely on my mind!

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We appreciate everyone who helped us prepare for this trip including the officials and staff at the UNWTO and the Georgia National Tourist Administration plus Mariam Anderson, Prof. Kym Anderson, Nino Turashvili, Viktoria Koberidze, Irakli Cholobargia, George Akhalkatsi,  and Hermes Navarro del Valle.