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Global Trends Weekly Update

created:

25.09.2009

Critical Publics | EDOAO

Global Wine Trends 25/09/2009 Weekly Update

Table of Contents

Table of Contents ...... 2

Global Market Watch ...... 4

Wine packaging shifts to thrift in cost, resources ...... 4 Sale of cheap imports as B.C. 'scandalous,' say critics and consumers 5 Online sales dip for beer, wine, spirits ...... 6 Nederburg auction down on last year ...... 6 American auctions to banish doldrums? ...... 7 15th Annual Staglin Wine, Music Fund-Raiser Adds $4.9 million ...... 8 Wallet-Friendly French Reds And Whites ...... 8 The manga that poured into Asia ...... 9 The sweet smell of success for wine judge Roy Moorfield ...... 9 Moderate drinking is fine: new French government advice ...... 10 Italians have left indelible mark on wine ...... 10 Harrop leads Loire Sauvignon project ...... 11 Austria pushes its wines for the flavors of Asian cuisines ...... 11 Matsu Wine ...... 12

Global Industry Watch ...... 13

Italy’s harvest down ...... 13 Wine from China's Silk Road: The Challenges of Implementing a Wine Tourism Strategy ...... 14 Fine Wines make UK biggest exporter to Hong Kong ...... 14 Bargain bubbly deals: ...... 15 Elite wineries going through major downshift ...... 15 Council Selects CreativeFeed ...... 16 A 3L Bag-in-a-Box from Argentina That Will Have Wine Lovers Rethinking It All! ...... 16 JV begins production in China ...... 17 Bang for the buck wines in a tight economy ...... 17 Wine industry, IRS closer on LIFO compromise ...... 18 Betts & Scholl Wine Brand Sold ...... 18 Southern Wine & Spirits and Glazer's Announce Termination of Strategic Talks ...... 19 Bordeaux welcomes rains amid concerns about alcohol levels ...... 20 South America Is on the Rise ...... 20 Naked Wines spends $100,000 at Wines of Argentina tasting ...... 21

Wine Domain Catalysts Watch ...... 21

2009 in France - yet another great 9? ...... 21 Sparkling form ...... 22 Anthony Rose: Thanks to recent harvest gluts and the credit crunch, there’s been a reappearance on the market of some great deals ...... 23

Scientific Developments & Technological Breakthroughs Watch ...... 24

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Global Wine Trends 25/09/2009 Weekly Update

LBAM study finds major errors ...... 24 Invention Can Turn Red Wine By-products Into Yoghurt, Chocolates, Creams And More ...... 24

Wines from Greece Publicity Monitor ...... 25

Blogosphere Monitor ...... 25

Chenin vs. Sauvignon Blanc – a battle royale? [poll] ...... 25 How to Kill a Wine Brand ...... 26 The Truth About Advice ...... 26

Peripheral Domains Intelligence ...... 27

WineLoc Packaging Products Launches Economical EPS Wine Shippers ..... 27 Which is better for the planet, beer or wine? ...... 28

Global Sustaining & Emerging Trends Digest ...... 28

Fall Wine Sales: A Look at how the market is fairing in its second tough year ...... 28

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Global Wine Trends 25/09/2009 Weekly Update

Global Market Watch

The global market watch outlines developments, spotted and emerging trends that define the current situation in the global wine landscape. It includes all major developments in the market including consumer trends relating to wine and marketing campaigns or approaches, as well as concerns on health and sustainability.

Wine packaging shifts to thrift in cost, resources

THE NORTH BAY BUSINESS JOURNAL, USA

21.09.09: Economics and environmental sensitivity are driving wine packaging design and supply in 2009.

Two primary interests among package design firm CF Napa’s clients this year have been repositioning existing brands for more prominence in their historical market position and reworking brands to enter a new price point, particularly the hot under-$10-a-bottle segment, according to Dave Schuemann, owner and creative director.

“It used to be that brands in that price point had to be bright and colorful and fun,” he said. “There is a move to be more and more conservative.”

“Shelf impact” is still important, but some owners of brands designed to be “zany and fun” are now wanting the packaging to be redesigned to look more serious, sophisticated and of higher value.

“We’re hearing from distributors that consumers are looking for value and are concerned about getting lesser quality,” Mr. Schuemann said.

Related to maintaining value at lower prices is the emergence of more dual- and triple- appellation brands, he said.

“It is a natural outcome of wineries wanting more flexibility in sourcing,” Mr. Schuemann said.

Some larger companies with vineyard sources in different winegrowing regions are looking for flexibility when prices rise to maintain brand quality in certain price ranges. CF Napa has been working with the Napa-based Diageo Chateau & Estate Wines division on packaging for the Jade Mountain brand, which notes on the label the percentage of from two or three North and Central Coast counties.

Environmental-mindedness in the industry is helping wineries cut costs, according to Paul Tinknell of Healdsburg-based design firm Tinknell & Tinknell.

“As damaging as the recession has been for the wine industry, it has made the industry look at being more environmentally friendly in winemaking and in packaging,” he said.

Even before the economy started slowing last year, the wine industry was shifting toward lighter-weight bottles, PET plastic bottles, cartons such as the TetraPak and new takes on the bag-in-box such as the minibarrel. It is a reverse of the design trend toward heavier bottles intended to convey quality. Now there’s a push to reduce energy use for production and transportation of packaging as part of a global

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Global Wine Trends 25/09/2009 Weekly Update battle against climate change.

For long-term storage of wine, there’s been a movement toward lighter-weight glass bottles, with increasing availability for high-end wines. Bottle distributor Demptos Glass earlier this year brought to market the 868-gram Strada line made in Mexico.

Saverglass' new team in Napa includes Sales Manager Melinda Elledge, President and CEO J-P Giovanni and sales associate Sylvie Langlois, CFO Kevin Goulding and sales associate Petra Gillier.

Saverglass' new team in Napa includes Sales Manager Melinda Elledge, President and CEO J-P Giovanni and sales associate Sylvie Langlois, CFO Kevin Goulding and sales associate Petra Gillier.

In May, France-based Saverglass released the 600-gram-or-less ecoDesign line, which maintain classic shapes and strength in key points such as the shoulder and bottom while reducing weight from traditional luxury bottles by one-third, according to Jean Pierre Giovanni, the new president and chief executive officer. The company will be bringing out more design options as customers call for more distinctive designs…

http://www.northbaybusinessjournal.com/15102/wine-packaging-shifts-to-thrift-in-cost- resources/

Sale of cheap imports as B.C. wines 'scandalous,' say critics and consumers

CANADA.COM, CANADA

21.09.09: Low-cost bulk wines from California to South Africa are being sold in Canadian liquor stores as B.C. wines, uncorking howls of protest from wine lovers at home and abroad.

It's a controversy about a labelling strategy being used by this country's three biggest winemakers in consultation with federal and provincial governments.

The wines are displayed as if they were domestic products, identifying their country of origin as Canada. However, none of the wines need to contain a single drop of Canadian-made wine.

The practice is catching the eyes of critics in this country and internationally.

A sharply critical article in the influential news magazine The Economist this month was headed: "Blended Deceit from the Nanny State."

Meanwhile, Jancis Robinson, one of the world's leading wine writers, was also critical in her blog: "It's just so difficult to take Canadian producers seriously when they are allowed to mislead the wine-buying public to this extent," she said.

The low-cost brands are actually the only wines The B.C. Liquor Distribution Branch offers in the B.C. section of liquor stores, selling for less than real homegrown wines.

Consumers have to be savvy enough to ignore the displays and head for wines identified by the VQA symbol (Vintners Quality Alliance) -- in the 'BC VQA' section -- to get real B.C. wine.

Only a keen-eyed consumer can tell the difference, said David Bond, executive director of the Association of Wine Growers of British Columbia.

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Global Wine Trends 25/09/2009 Weekly Update

"They are getting a free ride off the reputation everyone else has developed," Bond said.

His association's members include some of the province's best estate winemakers.

"They are selling it in the B.C. wine section and it's atrocious. I think it's scandalous," he said.

"This is a very calculated form of consumer deception."

There are about a dozen brand names, from Peller Estates Proprietor's Reserve and Jackson- Triggs Proprietors' Selection, which sell for $9, to Wild Horse Canyon, at $13. All are made by divisions of Mission Hill, Andrew Peller Ltd. and Vincor International Ltd., owner of the Jackson- Triggs label… http://www.canada.com/Sale+cheap+imports+wines+scandalous+critics+consumers/20155 78/story.html

Online sales dip for beer, wine, spirits

HARPERS, UK

22.09.09: Online sales of beers, wine and spirits shared a slump with lingerie and clothing according to the latest figures.

The IMRG Capgemini e-Retail Shopping Index reveals that despite e-commerce consumers spending £500 million online to £3.8 million when compared to last year, Internet stores saw an overall 10% sales dip with beers, wine and spirits among the casualties. Mike Petevinos, head of consulting for retail at Capgemini UK, said the overall improvement in spending had exceeded their forecasts of 12% growth in the second half of this year.

He said: "The key drivers of this growth are clothing, accessories and electricals. Consumers continue to see the benefits of greater choice, price competitiveness and convenience from buying online in these sectors.

"It is no coincidence that in these sectors retailers are making the greatest strides to improve their online offer, with improved visuals, enhanced product information, more convenient delivery and return models and an increasing use of web 2.0 techniques."

http://www.harpers.co.uk/news/news-headlines/8390-online-sales-dip-for-beer-wine- spirits.html

Nederburg auction down on last year

DECANTER, UK

20.09.09: Takings at this year's Nederburg Auction were down 16% on 2008, with the economic downturn depressing prices across all categories.

But organisers of the trade-only auction, which is seen as a barometer of the health of the industry, said receipts of just over ZAR4m, although down from last year's ZAR4.79m, had outstripped their expectations, with records broken for the most expensive wines.

A six-bottle case of half-bottles of Chateau Libertas 1959 fetched ZAR23,000, the highest price

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Global Wine Trends 25/09/2009 Weekly Update in the history of the auction.

Other high-grossing reds included Chateau Libertas 1962, Zonnebloem Cabernet 1965 and 1967, Rustenberg John X Merriman 2001 and Kanonkop 1994.

Among the whites, Jordan Nine Yards 2006 and Vergelegen White 2005 both fetched ZAR250 a bottle apiece, with top prices also going to Uva Mira Single Vineyard Chardonnay 2007, Mulderbosch Chardonnay Barrel Fermented 2005 and Cape Point Vineyards Semillon 2001.

Five international buyers, including the UK's Tesco Wine Club, accounted for 25% of the total sales, with other overseas buyers from Denmark, Botswana, Zambia and Namibia.

And three supermarket groups – the Spar Group, Makro and Checkers – were responsible for 38% of purchases, worth a total of more than ZAR1.5m.

Distell MD Jan Scannell expressed satisfaction with the results of the auction, pointing out that buyers had shown faith in South Africa's finest rare wines.

The Nederburg Auction, now in its 35th year, also raised more than ZAR200,000 for local good causes with a charity auction. Top price here was ZAR25,000 for a set of Nederburg Tribute Shiraz 2007.

http://www.decanter.com/news/news.php?id=289535

American auctions to banish doldrums?

DECANTER, UK

21.09.09: American auction houses' autumn-winter season has opened with a bang, especially in Hong Kong.

Their high-volume sales leave a strong impression that the doldrums and reduced prices of late 2008 and early 2009 may be history.

The principal indication of the rebound is everyone's high sell-through rates and the return of top – in some instances, record-breaking – prices for blue-chip wines and less-stellar attractions.

When Zachys held its fourth auction in Hong Kong, on 12 September, it found buyers for 100% of its offerings, realizing US$4,923,091.

Similarly, Acker Merrall & Condit depleted its entire catalogue – more than 8,300 bottles – in Hong Kong on 19 September, with a take of US$6.4m.

John Kapon, the president and auction director, said the sale was 'a clear indication that the wine auction market has bounced back significantly.'

Kapon added, 'We are looking forward to our first exclusively Hong Kong Internet-only auction to take place in the second half of October, which we consider an important step in continuing to expand our presence in Hong Kong.'

In New York, Acker managed to sell 100% of its consignments on 9 September, bringing in US$2,516,806, exceeding it's book's total high estimate.

In Chicago on 12 September Hart Davis Hart disposed of 100% of its lots, producing US$3,268,791 in revenue, well beyond the catalogue's pre-auction high projection of

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Global Wine Trends 25/09/2009 Weekly Update

US$2,753,360.

That same day in New York, Christie's reported 97% of its lots sold for takings of US$2,645,430.

Edward Roberts International, a small Chicago house, offered 217 lots on 20 September, selling 84% of them.

http://www.decanter.com/news/news.php?id=289568

15th Annual Staglin Wine, Music Fund-Raiser Adds $4.9 million

WINE BUSINESS, USA

18.09.09: There was little sign of a recession in wine country, when Emmy award winner, and 80's rock icon, Pat Benatar packed the house at the annual mental health wine tasting and auction at the Staglin Family Vineyards in Rutherford, last weekend. With this year's total at $4.9 million in contributions and research funding, the Staglin Family Music Festival for Mental Health fund raiser has now raised over $95 million since its inception, 15-years-ago. Hosted by Shari and Garen Staglin, and their children, Brandon and Shannon, the stunning, one-family show drew almost 500 attendees, who were introduced to Napa Valley's cult wines, gourmet cuisine from Healdsburg, and mental health experts from around the world.

It is the single-largest fund raiser for mental health. "And all funds raised at the event go directly to scientific research and treatment programs," Shari Staglin said. "With Mental illness now affecting over 50 million people in America, it has become a principal cause of adult disability, and with an annual cost to the nation of $150 billion,' she added.

The symposium began with a presentation by Dr. Helen Mayberg of Emory University on new approaches to brain diseases, and the latest, extremely effective therapy for major depression. It was followed by a tasting of 70 of Napa Valley's "cult wines," that included Colgin, Shafer, Scarecrow, Harlan Estate, Opus One, Screaming Eagle, et.al. The wines were paired with exquisite finger foods prepared by Chef Douglas Keane of Cyrus Restaurant…

http://www.winebusiness.com/news/?go=getArticle&dataid=67600

Wallet-Friendly French Reds And Whites

FORBES, USA

24.09.09: Forget Burgundy's reputation for expensive wines. The region offers a host of selections with great flavors at fair prices.

Anyone new to wine can be forgiven for initially avoiding bottles from Burgundy. The labels appear about as comprehensible and inviting as unabridged, untranslated Victor Hugo.

There's Burgundy's notoriously off-putting vineyard ranking system (cru), not to mention the subregion or village names, all of which appear on the labels in order to convey information about what's inside the bottle. Little of this helps the uninitiated. Take, for example, all the

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Global Wine Trends 25/09/2009 Weekly Update information that appears on the label of a particular white (from top to bottom):

About the only thing obvious here is that the wine is from Burgundy, and is white (Bourgogne Blanc). What you wouldn't know is that Domaine Roulot is one of the most prestigious producers in the Mersault area of Burgundy. And that it's chardonnay.

And then there's pricing; Burgundy's reputation wasn't built on value. The Domaine de la Romanee Conti Echezeaux 2005 will run you about $600 per bottle. And that's the cheap stuff from that particular producer…

http://www.forbes.com/2009/09/24/wine-french-burgundy-lifestyle-wine-food- chardonnay.html?partner=forbeslife_newsletter

The manga that poured French wine into Asia

AFP, FRANCE

17.09.09: In the cobblestone square of Bages, a tiny village in the Medoc wine country, a dozen influential Bordeaux vintners dressed in flowing red robes gathered for an unlikely event.

The vintners from southwest France were about to induct two Japanese comic book authors into their exclusive wine brotherhood, the Commanderie du Bontemps.

Yuko and Shin Kibayashi, a fashionable sister-brother duo publishing under the pseudonym Tadashi Agi, created "Kami no Shizuki" (The Drops of God), a phenomenally successful manga series that has brought wine to subway commuters across Asia, and sparked a wine boom.

The authors, with millions of manga sales already under their belt, fell in love with wine the easy way: over a bottle of 1985 Echezeaux, Domaine de la Romanee Conti, a Burgundy legend that retails for 600 euros (880 dollars).

The "magnificent floral aromas" astonished them. Inspiration struck. They would go where no other manga artist had gone before -- wine.

http://www.google.com/hostednews/afp/article/ALeqM5hUyuHWYjy5kK35mg66Upoi2wllSA

The sweet smell of success for wine judge Roy Moorfield

THE HERALD SUN, AUSTRALIA

21.09.09: WINE judge Roy Moorfield will this year complete a major milestone as he hands out lucrative contracts to Australia's already hard-pressed wine producers.

The Melbourne based judge will complete his 21st annual tasting for Cathay Pacific Airlines, signing off a wine destined to become the two millionth bottle served on the airline's Australia-Hong Kong-London service.

In 21 years since he began taste-testing Australian and French varieties for Cathay, the airline's demand for the Australian drop has grown from just 2500 cases -- 30,000 bottles in 1988 -- to a whopping order last year of more than 160,000 cases, more than 240,000 bottles.

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Global Wine Trends 25/09/2009 Weekly Update

"This year the figure could well exceed 250,000 bottles with the numbers of passengers the airline is attracting to its economy and business services," Mr Moorfield said.

Next month Mr Moorfield, with another judge who will fly in from Hong Kong, will sit down at Melbourne's new Convention Centre and begin the annual taste test.

The job will be to select the wines the airline will order from Australian vignerons to serve to its first, business and economy class passengers next year.

"We will do blind tastings of up to 600 Australian wines and then reduce that number to a few that we will then send up to Hong Kong for final selection. What we are looking for are wines that are both soft and fresh and ones that stand the test of travel…

http://www.heraldsun.com.au/business/the-sweet-smell-of-success/story-e6frfh4f- 1225777336136

Moderate drinking is fine: new French government advice

DECANTER, UK

22.09.09: France's most senior health body has ruled in favour of moderate wine drinking – flying in the face of previous official advice that any form of alcohol consumption is a serious health risk.

The High Council for Public Health (HCSP) has officially disowned the conclusions of a study released earlier this year by the French health ministry's National Cancer Institute (INCA).

This warned that drinking even small daily amounts of wine significantly increased a person's risk of developing cancer, and for certain types by as much as 168%.

INCA's advice for total abstinence, based on data collected from more than 500 international cancer studies, was distributed across 70,000 doctors' surgeries nationwide.

This caused outrage among winegrowers, who claimed INCA's findings contradicted several eminent medical studies, prompting health minister Roselyne Bachelot to backtrack.

'I myself enjoy a glass of wine with my meals,' she declared in February, and tried to stave off threatened legal action against distribution of the brochure by turning to the HCSP to provide a definitive opinion…

http://www.decanter.com/news/news.php?id=289591

Italians have left indelible mark on wine

NEWS LEADER, USA

23.09.09: Italians; where would the world be without them? It would be a waste of time and space to list the contributions of Italians and people of Italian ancestry to the modern world; the list would be almost endless; let us rather concentrate on the contributions of Italians to the modern wine industry.

Historically, it was the Romans who spread the vine throughout all of their provinces, which included France and England. Ancient Rome had a thriving wine industry and incorporated such modern features as bottling their wines, vintage dating and exporting to other lands. There

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Global Wine Trends 25/09/2009 Weekly Update were even styles of wine and great winemakers in each and every epoch of the empire whose names have come down to us and remain alive today in Roman writings.

While winemaking flowered in Italy, it was the Italian migration to this country, which began around 1850, that created the wine industry that we enjoy today. Italian immigrants, who were interested in wine, headed for the fertile valleys of California where they started vineyards and wineries that are still in operation today.

What is most important is that, along with their expertise in winemaking, they also brought with them vines from the "old country" that they were familiar with and planted them here. And thereby lies our tale: Italian grapes, grown in California, making Italian- style wines, designed for the American palate…

http://www.news-leader.com/article/20090923/LIFE02/909230392/1004/RSS05

Harrop leads Loire Sauvignon project

HARPERS, UK

21.09.09: Sauvignon Blanc from the Loire is hoping to boost its image in the UK with a new campaign aimed at the trade.

The project got underway with Sam Harrop MW offering technical assistance to both AOC Touraine and Vins de Pays producers in the region in a protocol he described as being "just about sensible winemaking".

"We're encouraging a diverse style," he said. "We're saying, look at your terroir, your aspect and your yields and make your wine in a style that suits the fruit. Some wines are very citrus, some are very vegetal - the market likes different styles of Sauvignon Blanc. It's not just about the blockbuster tropical style from New Zealand."

Twenty-nine "ambassador" wines have been chosen to reflect the best examples of Loire Sauvignon, though Sancerre and Pouilly-Fume are not part of the project, which is backed by Inter Loire.

The project, which follows Harrop's initiative in the region, may take on a consumer dimension next year.

http://www.harpers.co.uk/news/news-headlines/8389-harrop-leads-loire-sauvignon- project.html

Austria pushes its wines for the flavors of Asian cuisines

CHICAGO TRIBUNE, USA

23.09.09: The full-page advertisement on the back cover of the August issue of Sommelier Journal is strikingly simple. A glass of golden sits against a white background above a piece of fish roe-coated California inside-out sushi roll.

"Taste Culture," the ad reads in large letters. "."

"Young gruner veltliners are vivacious aperitifs, and a can't-put-down food match with tempura, dim sum, pakora and sushi," says Ch'ng Poh Tiong, founder of the International Congress of Chinese Cuisine and Wine, in the ad.

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Global Wine Trends 25/09/2009 Weekly Update

For the wine professionals who subscribe to this magazine, the message is as brilliantly clear as the gruner itself: Make Austrian wine the go-to choice for Asian food pairings at your restaurant.

The crisp stylings of Austrian wines do make them useful for the growing roster of fiery Asian foods we enjoy. They also pair well with the chili-kissed dishes of Mexico and the imaginative fusion fare of California. Even the old dishes of San Francisco, the sand dabs and the petrale sole, the dungeness crab and the shrimp Louis, always seem to taste better with Austrian gruner than California chardonnay.

"Grape names like gruner veltliner may not roll off the tongue as easily as chardonnay, but in the glass the wines can be just as rewarding, or more so," said Tyler Colman, the New York-based author of "A Year of Wine: Perfect Pairings, Great Buys, and What to Sip With Each Season."…

http://www.chicagotribune.com/features/food/chi-tc-food-wine-0918- 0923sep23,0,4056308.column

Matsu Wine

THE DIE LINE, USA

23.09.09: "Moruba has created the branding and packaging for Matsu, an organic winery from the Toro D.O.

Matsu is a modern a project for sustainable that brings together a unique collection of high expression wines.

The solution adopted is faithful to Matsu's philosophy, his image has been stripped from all sorts of tricks to link directly with nature and with the people who cares about it. Thus, the Matsu's wine triology, ‘El Pícaro’, ‘El Recio’ and ‘El Viejo’ are represented by a portraits series of three generations that devote their lives to the field. Each one personality's embodies the characteristics of the wine that gets its name.

The renowned photographers, Bèla Adler and Salvador Fresneda, have been chosen by Moruba for the portraits realisation that brings life to the characters of Matsu."

http://www.thedieline.com/blog/2009/05/matsu-wine.html

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Global Wine Trends 25/09/2009 Weekly Update

Global Industry Watch

This section records developments and trends on both industry and individual corporation levels that form a matrix of the major issues and moves in the industry as a whole or by its critical actors and groupings, such as trade associations and regulatory bodies.

Italy’s harvest down

WINE BUSINESS INTERNATIONAL, GERMANY

21.09.09: According to the first estimates carried out by Italy’s association of enologists, Assoenologi (Associazione Enologi Enotecnici Italiani), Italy’s 2009 harvest is estimated at 46.4m hl—a fall from 2008’s figures of 48.4m hl.

Of this year’s harvest, 55% of production is allocated to red wines and 45% to white. It is estimated that Italy’s longitudinal Western front has seen an increase in production of between 5% and 10%. Highest levels of production have been noted in the regions of Piedmont, Campania and Sardinia, while the eastern longitudinal regions such as Marche, Abruzzo and Puglia saw a decrease in quantity.

According to Assoenologi, due to the ‘bizarre’ climatic conditions that traversed Italy throughout 2009 the quality of the grapes differ considerably from area to area. “We can say that the overall quality is good with points of excellence in selected areas. If the high temperatures even out and we see a good temperature excursion between night and day with just a little rain, we will see some very interesting results for 2009,” said Giuseppe Martelli, director of Assenologi.

Another change in 2009 has been the dramatic fall in the price of grapes—down by as much as 10%. “The price of grapes has usually almost registered higher prices than the average price of the finished product – wine,” said Emilio Pedron, CEO of Gruppo Italiano Vini. “This year the situation has reversed, showing the difficulties and pessimism which is the current market is facing.” According to Pedron, this may cause a fall in price of bottled wine, including those from some of the more prestigious appellations.

Italy’s wine production is currently worth €13bn, of which €3.5bn comes from exports. The first three months of 2009 saw a significant drop in Italy’s exports compared to figures in 2008. The first quarter of 2009 showed a -9.2% fall in value in exports compared to the same period of 2008, while in volume for the same period the fall of 0.03% barely registered. Overall, Italy has seen falls of 8.3% for bottle wines, 14% for sparkling wines and 12.5% for bulk wines.

According to Piero Antinori, CEO of Marchesi Antinori, the crisis in exports and sales in Italy has not significantly affected Italy’s larger brands, which fall under the Grandi Marchi Association. These include: Franco Biondi Santi, Michele Chiarlo, Ambrogio e Giovanni Folonari, Pio Cesare, Tenuta San Guido, Ca’ del Bosco, Umani Ronchi, Carpenè Malvolti, Lungarotti, Masi, Mastroberardino, Alois Lageder, Rivera, Jermann, Donnafugata, Marchesi Antinori and Tasca d’Almerita. Together, they represent more than €500m in sales, equivalent to 60% of Italy’s total wine sales.

http://www.wine-business-international.com/News_Italy-s_harvest_down.html

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Global Wine Trends 25/09/2009 Weekly Update

Wine from China's Silk Road: The Challenges of Implementing a Wine Tourism Strategy

WINE BUSINESS, USA

24.09.09: How does a burgeoning wine region far from major airports and struggling with basic infrastructure issues such as unfinished roads and ancient plumbing attract tourists and consumers to taste its wine? This was one of the issues addressed at the recent International Symposium on Sustainable Development of the Grape Industry in the World's Arid and Semi-Arid Areas held in Turpan, China -- home of China's second largest wine-grape growing region. …

…Conference speakers provided an update on China's wine industry, confirming that the country now has more than 600 wineries, produced 698 million liters of wine in 2008, and is currently the 6th largest wine producing nation in the world. The 4 largest wineries still produce more than 40% of the wine (Cofco - owner of Great Wall brand; Changyu; Dragon Seal; and Dynasty) -- with much of the bulk wine being produced in the Xinjiang region and trucked to the large wineries near Beijing and Shanghai to be blended. …

Conference presenters reported that the Chinese government has created a 2015 wine vision for Xinjiang which includes: 1) increasing wine grape production (up to 50% in some locations); 2) improving wine quality by training more people in viticulture and winemaking; 3) developing new wine products to match consumer needs; 4) promoting collaboration between wineries, associations, and universities; and 5) increasing wine tourism to the region. …

http://www.winebusiness.com/news/?go=getArticle&dataid=67698

Fine Wines make UK biggest exporter to Hong Kong

WINES INFO, CHINA

23.09.09: Thanks to the abolition of import duties, UK has overtaken France as the biggest wine exporter to Hong Kong, based on the export figures of 7 months released by the Hong Kong Trade Development Council.

What may look paradoxical since UK is not a major wine producing region, this has come about as London is a source and hub of fine French wines and the appetite of Hong Kong lovers for the top Bordeaux wines is well known. Coupled with the fact that it is also fast becoming a hub for wines due to its duty free status, the exports from UK have gone past the French, for the firs time ever, reports Drinks Business.

Imports from Britain showed an annual 146% increase during the first seven months of 2009 to almost US$80 million from Jan-Jul 2009, which was around US 69.5 million for the whole of 2008. UK has increased its share of this wine market from 20% to 33%, while France's has slipped from over 35% to 31.6% at around US $72 million for the comparable period. The fine, expensive French wines are exported

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Global Wine Trends 25/09/2009 Weekly Update from the UK, explaining the phenomenal increase in dollar value. …

http://www.wines-info.com/Newshtml/200909/2292009092312154800.html

Bargain bubbly deals: Champagne

THE TIMES, UK

23.09.09: A glut of champagne means there are plenty of deals to be had; plus this week's best wine buys

In a recession it’s not smart to be seen swigging the Rolls- Royce of bubbles. Consequently, global champagne sales have fallen flat from a bubbly 339 million bottles two years ago to what many houses feel will be as low as 260 million bottles by the close of Christmas.

Champagne houses admit that they are sitting on a glut of a whopping 1.2 billion bottles, with no buyers on the horizon, so my hunch is that en route to the new year there are going to be some epic cut-price deals. In a curmudgeonly move to boost their coffers, however, the Champenois have hit on a wheeze to keep prices high, stock scarce and their luxury image intact: instruct the region’s growers to leave a third of this year’s harvest of grapes rotting on the ground and keep some 2009 wines in tank as a reserve.

This would mean almost 50 per cent fewer bottles of champagne produced, ensuring, so the big houses hope, the rarity and elitist reputation of fizz. With the champagne harvest only just under way, it is uncertain whether the grape growers will comply. But, while the Champenois fight it out, scoop up some tasty September deals…

http://www.timesonline.co.uk/tol/life_and_style/food_and_drink/wine/article6838595.ece

Elite wineries going through major downshift

THE SAN FRANCISCO BUSINESS TIMES, USA

21.09.09: Tough times for some Bay Area high-end wineries and vineyards could spell sweet deals for winery buyers, but the nature of those buyers is shifting.

“The market has definitely changed,” said Vic Motto, CEO of Global Wine Partners LLC, a financial services and wine industry investment bank based in St. Helena.

Over much of the last decade, consolidation was driven by huge firms, including Constellation Brands, Foster’s Wine Estates, Diego PLC and Brown-Forman Corp., buying up other large companies or smaller companies in premium price categories, Motto said. Now, the conglomerates are sitting on the sidelines for the most part, and other players are testing the waters, in most cases somewhat tentatively.

“The big companies are overbought,” Motto said, and changes in consumer buying habits, the credit crunch, and the economic slowdown have created an environment where almost everyone, including banks and other lenders, are “guarded, cautious, conservative.”…

http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2009/09/21/story17.html

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Global Wine Trends 25/09/2009 Weekly Update

Bordeaux Wine Council Selects CreativeFeed

REUTERS, USA

17.09.09: Bordeaux, home of the most famous wines of the world, through its CIVB (Bordeaux Wine Council), has selected bi-coastal CreativeFeed, an agency specializing in launching and relaunching brands, as its U.S. Digital Agency of record following a review.

CreativeFeed is charged with reintroducing the Bordeaux brand to U.S. wine drinkers, with an assignment to create a presence via a digital platform.

"Taking one of the world's most highly regarded brands to the U.S. market through a new digital experience is a terrific opportunity for CreativeFeed," said Arthur Ceria, Co-Founder and Chief Creative Officer of CreativeFeed. "We have focused our business on helping brands from around the world successfully launch and relaunch products in the U.S. market, always having technology at the center of our approach."

Launching products, brands and companies is CreativeFeed's sweet spot. It has honed its expertise by bringing innovative Silicon Valley brands to market by leveraging new technologies to create engaging ideas. Their online and media expertise becomes an asset for brands who need to navigate a cluttered digital space.

"We were impressed with CreativeFeed's expertise in understanding how digital solutions can be crafted strategically to grow our consumer base," said Pascal Loridon, Bordeaux Wine Council Marketing Director. "Their highly specialized approach delivers unique ideas and insights that we believe will drive our brand."

http://www.reuters.com/article/pressRelease/idUS132659+17-Sep-2009+PRN20090917

A 3L Bag-in-a-Box from Argentina That Will Have Wine Lovers Rethinking It All!

REUTERS, USA

17.09.09: Falling Star, a pioneer brand that helped put the Argentine category on the (wine) map, continues to turn heads as it enters the Premium 3L bag-in-the-box category with two reds and a white—Malbec, of course; , and Chardonnay. As consumers continue to look for bargains in an economy that has changed the way we consume and buy, Falling Star is sure to fill the niche.

“The demand for value wines has surged in such a way,” commented Pete Sheehan, VP/National Sales Manager for Frederick Wildman and Sons, “that we chose Falling Star from Argentina as the natural brand to lead the 3L category for Wildman.” “We saw it necessary to enhance and diversify,” added Francine Kowalsky, Brand Manager for Falling Star, “and took this opportunity to the next level since boxes are gaining in popularity with consumers as screw caps have, in the last few years.”

The new Falling Star 3L Bag-in-a-Box will be available through Wildman’s network of US distributors. At a suggested retail price of $19.99 for a 3L box—that’s quite a deal for wine- savvy bargain hunters. Look for Falling Star 3L bag-in-the-box wines at stores everywhere as of

Critical Publics | EDOAO Page 16 of 30

Global Wine Trends 25/09/2009 Weekly Update this Fall.

http://www.reuters.com/article/pressRelease/idUS143048+17-Sep-2009+BW20090917

Japanese wine JV begins production in China

TRADING MARKETS, USA

17.09.09: The Chinese wine-making operation jointly established by Japan's ASAHI BREWERIES LTD. and a local brewery began production Wednesday. The joint venture in the Jiangsu Province city of Nantong imports raw ingredients from South America, Europe and Australia and makes wines that suit the Chinese palate.

* Asahi Breweries is the first major Japanese beverage maker to produce wines in China.

* The Jiangsu firm is owned 30 per cent by Asahi Breweries, 30 per cent by Marubeni and 40 per cent by DAFUHAO BEER CO.

http://www.tradingmarkets.com/.site/news/Stock%20News/2532081/

Bang for the buck wines in a tight economy

THE NAPA VALLEY REGISTER, USA

18.09.09: With less money to spend across the board, consumers are looking to save a few bucks on wine without, of course, sacrificing quality.

In recent weeks, we’ve come across four outstanding wines with a lot of bang for the buck.

Great fruit in the hands of a crackerjack winemaker are evident in new releases — both blends from Gary and Kit Erickson’s Clif Family Winery.

“Our winemaker, Sarah Gott, has gone to great ends to find the best vineyards that meet our criteria of sustainability while also producing quality fruit,” noted Gary Erickson. “And I mean great ends.”

He pointed out that fruit for the winery’s Climber White came from vineyards in both North and Central Coast regions. “A substantial amount came from vineyards in Monterey that are grown in some of California’s richest agriculture land, and the cool coastal climate provides fruit with great acid and clean, crisp minerality. The combination with the sunny hills of Lake County, producing fruit with more richness and tropical flavors, gives this wine a wonderful balance of the two areas.”

For the winery’s Climber Red, Erickson says he was “fortunate to get most of the fruit from the Somerston vineyards just east of the Silverado Trail in Napa. With the vineyards’ setting well above 1,000 feet, the microclimate offers a longer growing season, which produces excellent, ripe fruit — a characteristic that comes through on the very first sip.

“We’re proud to say that during these tough economic times these wines are not such a pinch to the wallet.”

Rutherford Wine Company winemaker Steve Rued provided the inspiration for the company’s new brand and wines, Lander-Jenkins Spirit Hawk cabernet sauvignon and Spirit Hawk chardonnay…

Critical Publics | EDOAO Page 17 of 30

Global Wine Trends 25/09/2009 Weekly Update

http://www.napavalleyregister.com/articles/2009/09/18/wine/pierce_carson/doc4ab30024 8ad29271478680.txt

Wine industry, IRS closer on LIFO compromise

THE NORTH BAY BUSINESS JOURNAL, USA

21.09.09: An IRS audit sweep on winery inventory accounting methods in Napa and Sonoma counties may not bring as much financial impact as had been feared when it began earlier this year, following recent meetings with winery accountants.

In late August, an IRS inventory specialist and auditors started individual meetings with 28 local operations targeted in a “compliance initiative project” on whether common wine industry last- in, first-out – LIFO – inventory pool “items” are too broad and, thus, distort income to be taxed.

“The good news is that the IRS seems willing to compromise a little bit,” said Jeff Gutsch, founder of the wine practice at CPA firm Moss Adams and part of a group of wine-focused accountants trying to resolve the LIFO question. “I’m mildly encouraged that some sort of resolution can be reached. I don’t think LIFO will be as it’s been, but I don’t think it will be as extreme as they pushed for.”

Nothing final was resolved in the recent meetings with the IRS, but the discussions provided a framework for the coalition of about 30 accountants from several firms to meet in the next couple of months to draft a proposal to the IRS on a solution, according to Mr. Gutsch.

That resolution may parallel the deal worked out between the automobile industry and the IRS, he noted. Changes in vehicle platforms were considered different vehicles requiring separate LIFO inventory items, while vehicle options such as transmission and roof types wouldn’t.

Wine accountants have been asserting that the IRS call for more narrowly defined LIFO items than the two “casegoods” and “bulk wine” items used by several of the audited wineries may be warranted, but the IRS’ insistence on item definitions by vintage or size of package isn’t. The IRS position came from a 2006 legal advice letter from an IRS attorney during an examination of a winery’s use of LIFO.

That 2006 audit led the IRS’ Large and Mid-Size Business Division to start a wine industry “compliance initiative project,” a system of comparing similar businesses to find out whether further taxpayer education, examination of returns and legislation is needed, according to a recent IRS explanatory note to Congress. Rep. Mike Thompson, D-St. Helena, asked the IRS in conjunction with an early June budget hearing why 28 Napa and Sonoma wineries received audit letters dated April 10…

http://www.northbaybusinessjournal.com/15108/wine-industry-irs-closer-on-lifo- compromise/

Betts & Scholl Wine Brand Sold

WINE SPECTATOR, USA

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Global Wine Trends 25/09/2009 Weekly Update

22.09.09: Betts & Scholl, the boutique winery founded by master sommelier Richard Betts and art collector Dennis Scholl, has been sold to spirits company Castle Brands for $1.1 million, plus 7.14 million shares of the corporation. As part of the deal, Betts and Scholl will join the company, with Betts heading up Castle Brands' new wine division as vice president.

A few years ago, Betts was best known as wine director of Montagna, the Wine Spectator Grand Award-winning restaurant at the Little Nell in Aspen, Colo. Their project may be the only winery founded on a mushroom-picking excursion. Scholl, a Miami-based investor, was a frequent diner and friend. "We became friends and drank wine together," Betts told Wine Spectator in 2006. "One afternoon when we were out hunting mushrooms, I was describing how I really wanted to make wine. I wasn't even pitching him the idea, but he said, 'I want to do it.'"

They began looking for old-vine Grenache vineyards in Australia and partnered with local winemaker Christian Canute, who made the first wines in 2001 with Betts' input at his small winery, Rusden. The wines quickly showed promise, with two 2003 Grenaches from Barossa Valley scoring 93 and 90 points. They later added an Australian , and partnered with winemaker Randy Lewis in California to produce a and with Michel Chapoutier in the Rhône to produce a Hermitage…

http://www.winespectator.com/webfeature/show/id/40708

Southern Wine & Spirits and Glazer's Announce Termination of Strategic Talks

YAHOO, USA

21.09.09: Southern Wine & Spirits of America, Inc. (Southern) and Glazer’s Distributors (Glazer’s) today announced that the two companies have terminated their discussion for a strategic collaboration.

Glazer’s Chairman & Chief Executive Officer Bennett Glazer said, “Following more than a year of wide-ranging planning efforts with Southern Wine & Spirits, we have made the decision that it is in our company’s long-term best interests to end these meetings and discussions. Since August 2008, we have explored numerous options and concepts about how best to forge an association with Southern to generate enhanced value for both companies. However, our decision today has been driven by the sheer complexity of the transaction.”

Glazer added, “We value our personal relationships with the Chaplin Family, hold their management team in high esteem and wish them well in their future endeavors.”

Southern Wine & Spirits Chairman & Chief Executive Officer Harvey R. Chaplin added, “Today’s decision was a very difficult one. We continue to hold the Glazer’s Family—and all that their company has accomplished over the last 100 years—in high regard.”

Glazer’s President Jerry Cargill said, “Today’s announcement in no way impacts Glazer’s long- term strategy of being recognized as the industry leader in the distributor tier for brand building

Critical Publics | EDOAO Page 19 of 30

Global Wine Trends 25/09/2009 Weekly Update and customer service. Glazer’s will continue to proactively pursue its blueprint for sustained expansion and growth. We look forward to energizing and growing our relationships with both our suppliers and our customers, and we will continue building on the Glazer’s teams’ best-in- class capabilities.”…

http://finance.yahoo.com/news/Southern-Wine-Spirits-and-bw-2238217548.html?x=0

Bordeaux welcomes rains amid concerns about alcohol levels

DECANTER, UK

22.09.09: The hot weather in Bordeaux is causing some worry that high alcohol levels may unbalance the wines.

Chateaux in Saint Emilion are bringing in their Merlot grapes, and the Medoc is beginning its young vines, amid concerns that alcohol levels are too high.

Jean Christophe Mau at Chateau Brown in Pessac Leognan said the rain over the weekend was welcome as 'the Merlot is already up at over 14-14.5% potential alcohol.'

He said that it was certain 2009 was going to be 'a good vintage' but the next few weeks would decide if it is going to be an excellent one.

'The main concern is that without rain this will tip over from being another 2005 to another 2003.'

Thomas Duroux at Chateau Palmer told decanter.com this vintage would be 'technical'.

'It's a strange vintage, not super-easy like 2005. It will be quite technical. The Merlot is particularly high, up to 14-15%, and we need to ensure balanced wines.

'We know we have a huge potential in 2009, but key will be selecting the right time to harvest to get good tannins and soft skins, and then to extract those tannins in a smart way.

'In 2003, the berries were cooked, a lot were just completely over-ripe. This year, they are not cooked, just high in alcohol. Get the balance wrong, and the potential will be wasted.'…

http://www.decanter.com/news/news.php?id=289633

South America Is on the Rise

THE WASHINGTON POST, USA

23.09.09: I consider myself part of the "Anything but Chardonnay" crowd, at least until I taste a really great chardonnay. And I have tasted some fine ones recently that might persuade me to give up my skepticism toward this grape.

They're not from Burgundy (which gets an automatic pass from the ABC crowd, anyway) and not from California, either. The chardonnays that excite me these days come from the Limari Valley of northern Chile. This is a region to watch: It could become the world's next source of consistently good chardonnay.

Vines were first planted in the Limari (pronounced lee-mar-EE) Valley in the 16th century, but only in the past decade or so have some of Chile's great wine companies exploited this mountainous region for its grape-growing potential. Morning fog rolls in off the Pacific Ocean,

Critical Publics | EDOAO Page 20 of 30

Global Wine Trends 25/09/2009 Weekly Update much as it does in some of California's best chardonnay regions, and retreats in the afternoon, allowing the grapes to bask in the late-day sun. That helps maintain acidity and structure in the wine while allowing optimum ripeness. The Concha y Toro wine empire led the way in this region with its Maycas del Limari label; other familiar names followed, including Santa Rita.

Limari is only part of the story, however. For new and exciting wines from South America, look also for bracing sauvignon blanc from Chile's Elqui or Leyda valleys, or stellar pinot noir and riesling from Bio-Bio, several hundred miles south of the capital, Santiago. In Argentina, where Mendoza defines value with malbec, look for intensely colored and spiced malbec from Patagonia in the south or exotically flavored torrontes from Salta or San Juan in the north.

These are the emerging wine regions of South America, where established wineries and foreign investors are producing high-quality, value-priced bottles that are worth searching out…

http://www.washingtonpost.com/wp- dyn/content/article/2009/09/22/AR2009092200772.html

Naked Wines spends $100,000 at Wines of Argentina tasting

HARPERS, UK

21.09.09: Naked Wines has pledged to spend $100,000 with Argentine producers following last week's Wines of Argentina tasting at Lord's Cricket Ground.

The move comes after a live tasting of up to 100 wines by 50 Naked Wine customers - known as Angels - invited to the event to determine which wines the company would invest its pre- determined $100,000 on.

The top 10 wines chosen by the Angels were then re-tasted to determine a retail price that they would be prepared to pay for them. Those prices were then set against the FOB cost price for each wine to determine the initial share of the $100,000 each wine would receive. Wineries were then invited to either lower or raise their price in order to get a larger or smaller amount of the overall share…

http://www.harpers.co.uk/news/news-headlines/8386-naked-wines-spends-100000-at- wines-of-argentina-tasting.html

Wine Domain Catalysts Watch

This section records the most important articles written by those widely considered to be thought experts in the wine domain. These opinions are not only a valuable source of information but also provide important indications for current and evolving trends in the wine domain.

2009 in France - yet another great 9?

JANCIS ROBINSON, USA

19.09.09: Any analysis of the outstanding vintages of 20th-century French wine – 1929, 1949, 1959 and 1989 for red bordeaux, 1999, 1989, 1969, 1959, 1949, 1929 and 1919 for red burgundy – suggests that years ending in nine tend to have special properties. This year, 2009, looks, so far, set fair to continue this phenomenon in virtually all French wine regions.

Critical Publics | EDOAO Page 21 of 30

Global Wine Trends 25/09/2009 Weekly Update

Winter was usefully severe, killing off harmful bugs and allowing the vines a good rest. Spring was relatively wet, replenishing a depleted water table in many areas. The flowering of the vines in late spring generally took place in fine conditions yielding a decent but not super-abundant crop. And, most importantly, summer has been unusually fine, warm and dry yet without excessive heat. Nights were noticeably cooler than in the heatwave vintage of 2003, for example, when many grapes literally turned to raisins on the vine without going through a proper ripening process.

The 15 August holiday in France is traditionally associated with a break in the weather and potentially dangerous storms which can precipitate rot in underripe grapes, but this year the weather held in all significant French wine regions right through August, resulting in healthy grapes with relatively thick skins that easily withstood some light showers at the beginning of September which revitalised the vines and encouraged a final spurt of ripening. And, most unusually, the fine, warm weather seems to have held. Conditions seem quite similar to the most recent ‘vintage of the century’ 2005, although the flowering was in general more successful and the drought less extreme.

As Corinne Mentzelopoulos, owner of Château Margaux in Bordeaux in the south west of France told me on 8 Sep, ‘we are very excited about the harvest, and are beginning the picking of the white grapes today'. Director of the Pauillac first growth Château Latour, Frédéric Engerer, was at François Pinault’s new property in Burgundy, Domaine d’Eugénie, when I asked him about 2009 on Monday. In an email he described 2009 as, ‘VERY GOOD. Reminds me more of 2000 than 2005 in Bordeaux.’ (The 2000 vintage was another standout year for red bordeaux.)

In the far east of the country, twelfth-generation Riquewihr vine grower Étienne Hugel reports that 2009 ‘looks to be a great year in Alsace’, while in the Rhône Valley, Jean-Luc Colombo describes this year’s growing season as ‘exceptional’. He began picking as early as 1 Sep, a good week ahead. An early vintage is usually a good sign of unusual ripeness.

Someone with more experience of the minutiae of Médoc vintages than most is Eric Boissenot, a local oenologist who advises the great majority of classed-growth châteaux there. He described 2009 to me as ‘magnificent with very, very healthy grapes. July was good and August was great. The quantity will be a bit more than 2008 and 2007 but it won’t be a massive vintage.’

The Bordeaux wine trade, bellweather of French wine, will be relieved that, after two vintages that have been notably difficult to sell, it looks as though they may have something highly desirable to tout during the en primeur tastings next April.

http://www.jancisrobinson.com/articles/a200909184.html

Sparkling form

THE GUARDIAN, UK

23.09.09: Prosecco is seen by many as a cheap and cheerful alternative to Champagne. Tim Atkin celebrates the best budget bubblies

Help! I fear I'm turning into a Prosecco snob. You might think this is slightly silly - like favouring

Critical Publics | EDOAO Page 22 of 30

Global Wine Trends 25/09/2009 Weekly Update one daytime soap over another - but I'm serious. There are lots of wines on the market that use the P word and the differences between them can be profound. Tasting a bog-standard example, made from high-yielding grapes grown on the flatlands north of Treviso, alongside one from a precipitous hillside in Valdobbiadene is like comparing Cristal with a supermarket Champagne. Until you go there and start asking questions, Prosecco sounds like an uncomplicated wine. It is made from one eponymous grape, although Prosecco can be blended with up to 15% of local Verdiso, Perera and Bianchetta or more international Chardonnay. It uses one production method, called Charmat. It is generally sold (and drunk) within 18 months of the harvest. And it comes in three main styles, based on sweetness levels: Brut (dry), Extra Dry (medium) and, bizarrely, Dry (sweet).

Still with me? Good, because this is when things get more complicated. As in most other regions, the place where the grapes are grown is important. The best area for Prosecco, which has its own appellation or DOC, is called Conegliano Valdobbiadene, a beautiful region of green hills tucked up against the pre-Alps. From next April, Conegliano Valdobbiadene will be promoted to DOCG status alongside the likes of Barolo and Brunello di Montalcino, no less…

http://www.guardian.co.uk/lifeandstyle/2009/sep/20/tim-atkin-budget-bubblie-prosecco

Anthony Rose: Thanks to recent harvest gluts and the credit crunch, there’s been a reappearance on the market of some great deals

THE INDEPENDENT, UK

19.09.09: Three months ago, Majestic Wine was in the doldrums as its annual profits took a nosedive. A weak pound and fewer champagne corks popping were the main culprits. So autumn needed to be special for Majestic. And it is. The UK's favourite wine warehouse won the Wine Chain of the Year award at the awards ceremonies of both the Decanter World Wine Awards and the International Wine Challenge.

It's a good month, too, for the consumer. After successfully halving the requirement to sell a minimum of 12 bottles following trials in its Newcastle and Darlington stores, Majestic has decided to extend the six-bottle minimum to all 150 stores. The 12-bottle policy remains (with free delivery) if you're buying online.

There's another reason for consumers to be cheerful this month. Thanks to recent harvest gluts and the credit crunch, there's been a re-appearance on the market of some great wine deals, and I'm not talking about the bogus bogof, or buy-one-get-one-free, in which the price of a wine is often artificially inflated to make it look as though it's a bargain. There are some distressed parcels, too. Nothing to do with unhappy postmen but rather the fall-out of surplus stocks piling up around the globe and producers being forced to open the floodgates. Majestic's recent acquisition of 400,000 bottles from the global giant Constellation is a case in point. Their loss is our gain…

http://www.independent.co.uk/life-style/food-and-drink/features/anthony-rose-thanks-to- recent-harvest-gluts-and-the-credit-crunch-therersquos-been-a-reappearance-on-the-market- of-some-great-deals-1788475.html

Critical Publics | EDOAO Page 23 of 30

Global Wine Trends 25/09/2009 Weekly Update

Scientific Developments & Technological Breakthroughs Watch

This section captures the developments in the scientific research landscape in terms of technological breakthroughs and emerging research covering both R&D from companies but also research from academia and institutional bodies. These are essential elements of future trends or cumulatively combined indicators of future market trends and consumer awareness as well as industry practice development.

LBAM study finds major errors

SONOMA NEWS, USA

17.09.09: Critics of the United States Department of Agriculture's handling of the light brown apple moth eradication got some support Monday from a report released by the National Academy of Sciences that points out numerous flaws in the research the department used when classifying the moth as an actionable pest in need of eradication.

But the report nevertheless agrees that the USDA's Animal and Plant Health Inspection Service (APHIS), which classifies newly discovered pests, was within its authority to classify the moth as an "actionable quarantine-significant pest." When the moth was first detected in California in 2007, APHIS was charged with quickly determining the threat level of this new pest, which was known to feed on more than 200 types of plants including many of the state's valuable crops such as grapes, berries and apples. Larry Hawkins, a spokesman for USDA, said APHIS had to answer four questions to determine if the insect is an actionable pest, meaning intervention is required to stop the pest from spreading: Is the pest native to the United States? Is it widely distributed in the United States? Is the pest of potential economic importance in the United States? Is the pest likely to cause environmental harm?

"Does the light brown apple moth meet those requirements? Yes," Hawkins said. "(The Academy of Sciences) found that they agree, that the light brown apple moth is an actionable pest." After classifying the moth as actionable, USDA gave the California Department of Food and Agriculture authority to eradicate the pest. This lead to the use of an aerial pheromone spray over Monterey and Santa Cruz counties that infuriated citizens all over the state when hundreds flooded to emergency rooms suffering from what they and some doctors insisted were negative reactions to the spray. The incident launched a movement among scientists and concerned citizens who initiated their own investigation into the potential threat level of the moth…

http://sonomanews.com/articles/2009/09/17/news/doc4ab2db0fdedac361107472.txt

Invention Can Turn Red Wine By-products Into Yoghurt, Chocolates, Creams And More

SCIENCE DAILY, USA

18.09.09: Two years ago, a group of friends were enjoying a glass of wine in the Mosel region in south-west Germany when their conversation turned to the health benefits which studies attribute to the drink. During the fermentation process of making wine, by-products are left

Critical Publics | EDOAO Page 24 of 30

Global Wine Trends 25/09/2009 Weekly Update over which are often just discarded as waste and the friends reasoned that since these by- products contain the goodness of wine in an even more concentrated form, and without the alcohol, shouldn’t it be more often used and consumed by humans?

One of the friends was Bernd Diehl, the 48-year-old co-owner of a German chemical analysis company called Spectral Service. He proposed his company develop a method to turn the by- products into a powder preserving as many of the natural, healthy properties of wine as possible - the proteins, B vitamins, minerals and polyphenols, which are thought to prevent heart or circulation diseases, inflammation and thrombosis.

As a relatively small company, Spectral decided to partner with the larger Technologie-Transfer- Zentrum (TTZ), German specialists in product development, and the pair successfully applied to carry out their research as a EUREKA project. As well as developing wine powder, the partners also wanted to test their powders in different kinds of products – in both food and drink, as well as in make-up. Here Spanish natural cosmetics company Alfaverde Productos Naturales was keen to help…

http://www.sciencedaily.com/releases/2009/09/090917111507.htm

Wines from Greece Publicity Monitor

This section presents all international publicity relating to wines from Greece.

N/A

Blogosphere Monitor

In this section the most important blog entries for wine and are recorded.

Chenin vs. Sauvignon Blanc – a battle royale? [poll]

DR. VINO, USA

22.09.09: Over on Forbes.com, I just contributed a short piece about the wines of Vouvray. Almost entirely, the wines of Vouvray are from the Chenin Blanc grape and Vouvray is in many ways the apogee of Chenin Blanc. The wines from this 5,000 acre appellation can be very rewarding in many ways, as a sparkling wine or dry, off-dry, and sweet. Moreover, the best examples are extremely age-worthy and global warming has made them more accessible in their youth.

My thoughts drifted to regional rival, Suavignon Blanc, which is considered one of the three “noble” white grapes (Riesling and Chardonnay are the others). I’ve never really cottoned to the whole aristocratic anthropomorphism for grape varieties but if I were drawing it up today, I’d prepare Sauvignon for a defenestration in favor of Chenin…

http://www.drvino.com/2009/09/22/chenin-vs-sauvignon-blanc-noble-grape/

Critical Publics | EDOAO Page 25 of 30

Global Wine Trends 25/09/2009 Weekly Update

How to Kill a Wine Brand

VINOGRAPHY, UK

19.09.09: In my other life, the one I lead in the business world, I've been involved with or close to the acquisition of several services companies by a larger one. And I have to say, they have always been a bit of a train wreck. Such mergers, acquisitions, or significant ownership stakes always look great on paper, but invariably, when it comes to the real world, rubber meets the road stuff of integration, more often than not, it's a disaster.

These disasters seem to arise from one of two main areas: cultural conflicts between the two companies, and/or differing priorities on how to run the business between the old ownership and the new. Quite often it's both.

Three pieces of recent news in the wine world have got me wondering if the same is true in the wine world sometimes.

The first two bits of news were the acquisition of Kosta Browne winery for what seems like staggeringly high figure of $40 million, and the separate acquisition of the Betts and Scholl wine brand for $3 million. Both events, of course, are wonderful validations of the hard work that the owners put into their brands, and their talents as producers. But they also prompt the question, what happens now?

For some owners, the answer to that question might be academic. If the sale is an exit strategy that pays off a lot of hard work, the event might be accompanied by a sigh of relief and an extended vacation. But there are lots of reasons for the sale of a business, and not all of them involve an easy exit (physically or mentally) for the founders or current owners.

In some cases, the terms of the sale involve the owners staying on for a while, or even permanently. Which brings me to the third bit of news. Havens Winery was purchased in 2006 and at first its owner and founder Michael Havens was slated to stay on and continue doing what he had always done. But 18 months later Havens made his exit citing what might be charitably described as "differences of opinion" with the new ownership.

And then earlier this week, the owners, Billington Imports, "all but pulled the plug" on Havens winery according to a story in Wine Industry Insight. This announcement comes after the financially troubled firm purportedly missed lease payments and permit payments earlier in the summer…

http://www.vinography.com/archives/2009/09/how_to_kill_a_wine_brand.html

The Truth About Advice

FERMENTATION, USA

21.09.09: Ever since I found my way into the wine business, I've tried to fully understand the significance and meaning of advice. Not the meaning of how advise from experts on wine affects the marketplace. This was all too clear. This was and is formulaic. What I've tried to understand is the meaning of either accepting advice or dismissing it or, worse yet, wanting to

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Global Wine Trends 25/09/2009 Weekly Update

embrace and follow the advice of an expert but seemingly not being able to.

I always was willing and able to accept the advice of experts, including wine experts. I figured experience is that which separates good advice from average advice. So, where wine is concerned, I've always been more inclined to trust the advice of those who have been at it longer than others.

Experience seems important because, I believe, the world works in very specific ways. There are things that are right. Things that are wrong. Things that are good. Things that are bad. It's that simple, I think. And this applies to wine as well as to work, family and love. The problem is discovering the specific ways things work, what is good, what is bad, what is right, what is wrong. That's the hard part. Experience seems the only sure fire way to obtain this information…

http://fermentation.typepad.com/fermentation/2009/09/the-truth-about-advise.html

Peripheral Domains Intelligence

This section covers developments from associated domains such as Greek food, taste and culinary trends, as well as any other significant information that has an impact on or derives from the global wine domain.

WineLoc Packaging Products Launches Economical EPS Wine Shippers

MARKETWIRE, USA

22.09.09: WineLoc Packaging Products, established in August 2009, launched an economical EPS (expanded polystyrene) wine shipping container that offers cost-effective protection and superior thermal performance for wine shipments. WineLoc EPS and molded pulp wine shipping containers can be easily ordered online at http://www.wineloc.com and are distributed nationwide from the headquarters located at 30 Harlow Court in Napa, California.

"WineLoc's state-of-the-art design and manufacturing have produced the finest, most economical wine shipping containers the marketplace has yet seen," said Erich Brandt, Senior VP of Sales and Marketing. "WineLoc's EPS products are made with recycled material, offer unparalleled protection because of their superior durability, and reduce supply chain waste caused by broken and damaged goods during shipment."

According to Brandt, WineLoc's EPS wine shipper saves wineries the worry of spoilage due to temperature changes in transit. "The delicate nuances of fine wines are now protected by our EPS containers as they travel through varied climate changes en route to distribution channels," said Brandt. EPS wine shippers are 90% air and made with recycled content and can be sent back to WineLoc for recycling into new products…

http://www.marketwire.com/press-release/Wineloc-1048381.html

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Global Wine Trends 25/09/2009 Weekly Update

Which is better for the planet, beer or wine?

SLATE, USA

22.09.09: I'm hosting a dinner party next week, and I'll be serving both beer and wine alongside the meal. But it got me wondering: Which has the lower carbon footprint? Beer has to be kept refrigerated, which requires energy, but shipping wine in those heavy bottles can't be good for the planet, either.

It's hard to come up with a simple answer for this one, because so many factors affect the calculation: Where was your beverage made? What's it packaged in, and how did that package get to you? How was it stored at the point of sale? Accounting for all these variables can make your head spin, but the best available research suggests that parsing out the difference might not be worth the headache.

In 2007, an analyst for the U.K.-based Food Climate Research Network attempted to tally up the nation's alcohol consumption-related emissions. Across the three categories considered— beer, wine, and spirits—the research didn't find any significant differences in greenhouse gas intensity. Wine came out with "marginally lower" greenhouse gas output than beer, though the author stressed that the tiny differences calculated—about 10 grams of carbon-dioxide equivalent per unit of alcohol—were well within the margin of error for the data. (One unit of alcohol represents about a half-pint of ordinary strength beer or half a glass of white wine.)

American drinking habits differ in some key ways from those of our friends across the pond, though. For example, Brits drink most of their beer in public establishments, whereas we tend to indulge at home. And while virtually all their wine is imported—roughly half of it traveling long distances by sea—about two-thirds of the wine we drink is produced domestically, mostly in California. Still, until someone undertakes a similarly comprehensive study on booze and the environment in the United States, the British data may be the best we're going to find. So you might as well stick with your preferred tipple and then strive to make the greenest choices in that category.

When it comes to beer, the Lantern has already weighed in on bottles versus cans: If your beer is brewed close to home and your town has a good recycling program, choose glass; if it comes from far away, stick with aluminum. A pulled pint of draught beer will always be the greenest choice…

http://www.slate.com/id/2229095/

Global Sustaining & Emerging Trends Digest

This section presents those global, macro and micro trends that affect or potentially affect the wine domain. Comprehensive fusion and distillation of the above publicity parathesis concludes to the most important aspects as those appear in the current setting.

Fall Wine Sales: A Look at how the market is fairing in its second tough year

WINE BUSINESS, USA

24.09.09: Seventeen percent of annual table wine dollar sales happen in the crucial

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Global Wine Trends 25/09/2009 Weekly Update fourth quarter sales period, according to a Nielsen Company report ending January 3, 2009. Twenty percent of table wine sales of $20 and over also occur in that period. As we move into another autumn in a weak economy the outlook of a couple key professionals is slightly more upbeat than expected in some surprising ways.

Eugenia Keegan, president of the Portland, Oregon-based wholesaler Henry Wine Group of Oregon, said her sales are up three points over last fall. She potentially attributed the increase to the positive aftereffects of consolidation. "The transition has happened and the restaurants that are going out of business are out of business."

She called the current wine sales climate "an appropriate adjustment to the market," and added that the businesses that are active now are very active. She noted "we are buying product and ….wine is moving through."…

…Key Pricing Remains Steady

For more than a year the hottest price point has continued to hover around $9.99 retail, according to Keegan and others. "We are seeing a gradual shift to $14.99 and [buyers who are] more interested in wines wholesaling in the teens," she added.

"The sweet spot has never changed," in terms of pricing, according to Diggins. He pinpointed that hot price point at a less than moderate $60 to $80 a bottle in the on-premise. "More and more people are realizing that 'value' is not always found in the more inexpensive wines on the list, true value comes from how great a wine can be in many different price points, often a mid range of higher-end wine can offer a greater price to value ratio," concurred Gabriel Varela, sommelier and manager at one- location Miami steakhouse Meat Market.

Regardless of how the economy is doing, the category where restaurants do the most volume is by the glass, Gitane's Diggins explained, and that "price range has never gone up or down from $8 to $12 wholesale." InterContinental's Etcheberrigaray agreed that this price point is one of the most lucrative; noting that the hotel chain's highest volume price points are at $6 to $10 a glass.

Perennial favorites continue to be Argentine and Spanish wines for value, flavor and now even familiarity. Jabour added that domestic wine sales are also still strong and he's seeing value out of the Southern Rhône Valley.

Good Values on the Horizon

While it may be a tough market for operators, retailers and wholesalers it remains a great one for consumers. "Not only are wholesalers clearing out their warehouses, every time we have a recession like this people with higher-priced wines lower their pricing so there's a downward push on pricing. The clear winner is the consumer," said Keegan. "There are good deals and we pass them onto consumers," concurred Jabour.

The new pricing is also a boon for those in the industry. "There are some great deals to be had…. Many wineries, across the world, are dropping prices in order to sell more wine. We reap the benefits of this, as well as being able to buy things that were recently allocated and virtually impossible for typical consumers to procure," said Etcheberrigaray.

He added that the market "is definitely going to definitely lean towards value for money. People are excited about flavor and taste but they want value." He added that "it's going to be a couple of years before we see any major spending, again. And, frankly this is good for the wine business as wine prices… sky rocketed a bit too much.

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Humility through steady business and value offered will stand the test."

It may be too early in the sales season to really take a temperature on how this fall will compare to last. The spending climate is certainly drastically altered but so is many suppliers' approach to the market in a positive way.

http://www.winebusiness.com/news/?go=getArticle&dataid=67747

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