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Global Wine Trends Weekly Update

Global Wine Trends Weekly Update

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Global Trends Weekly Update

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09.04.2010

Critical Publics | EDOAO

Global Wine Trends 09/04/2010 Weekly Update

Table of Contents

Table of Contents ...... 2

Global Market Watch ...... 4

Bordeaux vintners raise their glasses to 's wine buffs ...... 4 American buyers: keep prices down ...... 5 Bordeaux 2009: Calls for restraint as prices predicted to return to 2005 levels ...... 5 Wine bluffers exposed by research ...... 6 Cheap Cotes du Rhone edged out of UK market ...... 6 Brown Bros tackles climate change ...... 7 goes to Hong Kong ...... 7 boss: Spanish undervalued at auction ...... 8 in Southern Australia bank on German tradition ...... 8 In Burgundy, one house grows by thinking small ...... 10 Trading Standards on trail of wine company ...... 11

Global Industry Watch ...... 11

Washington wine industry tops 650 wineries ...... 11 French government backs wine tastings in university canteens ...... 12 Constellation-AV merger off ...... 13 Wineries are tapping into eco-friendly trends ...... 13 If one green bottle ...... 14 Recession-hit Britons give up on drink as alcohol sales drop a record amount ...... 15 Spain's three billion litre wine lake ...... 16

Wine Domain Catalysts Watch ...... 17

Top whites fight off flab ...... 17 How much should you pay for a bottle of wine? ...... 17 Promising newcomers in China ...... 18 The Information: The world’s leading wine markets ...... 20 Vive la France! Why the industry is still bursting with life ...... 21

Scientific Developments & Technological Breakthroughs Watch ...... 22

Guala Closures launches tamper-evident screwcap ...... 22 Helps Cardiovascular Health, But Is It the Alcohol or Something Else? ...... 22

Wines from Greece Publicity Monitor ...... 23

The Spirit of Benji: Toast spring with Greek martini ...... 23

Blogosphere Monitor ...... 24

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Global Wine Trends 09/04/2010 Weekly Update

Why is there so little in Bordeaux? ...... 24 Trader Joe’s introduces new “Th. J.” wine; dubbed “ten buck Tom” ...... 25 Is Hello Kitty wine the Joe Camel of wine? ...... 25 An Open Door To Real Wine Criticism...... 26 What The World Needs: The Wine Purse ...... 27 Inventor of , wineonomics, “sham” — sipped and spit ...... 27

Peripheral Domains Intelligence ...... 28

Christie’s Sold Counterfeit Wine, Collector Koch Says in Suit ...... 28 Zoo sells bone wine ...... 29

Global Sustaining & Emerging Trends Digest ...... 29

Naked Wines offers customers cut price wine by paying producers upfront 29

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Global Wine Trends 09/04/2010 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.

Bordeaux vintners raise their glasses to China's wine buffs

THE GUARDIAN, UK

02.04.10: With its creamy chateaux and immaculately tended vines, the region has for centuries catered to the discerning tastes of European elites. But this week, as leading critics declared the region's 2009 the best they have ever tasted, a distinctly new clientele crashed the claret party.From the Médoc to St-Emilion, Chinese wine merchants poured in for the first tastings of the much-hyped 2009 and opened their wallets to buy record volumes. The vintage was this week dubbed by Steven Spurrier, one of Britain's leading critics, "the best Bordeaux had ever produced", while an elated Michel Bettane, France's leading critic, said: "It is the best in my lifetime."From the baroque tasting room of Chateau Mouton Rothschild, to the grand hall of the Union des Grands Crus, Chinese delegations declared their intent to siphon off huge quantities of first growths, the very best wines."2008 was the highest level of interest in mainland China, so given the quality level of 2009 we believe there will be even greater interest," said Don St Pierre, chief executive of ASC, one of China's biggest fine wine merchants. "There is no other wine producing region that is better known than Bordeaux to Chinese consumers."Sam Yip, 36, a Hong Kong investor tasting at Chateau Mouton Rothschild, which along with Lafite-Rothschild has been dubbed by one merchant the "tipple of choice for your thrusting Chinese industrialist", said he was planning to spend $250,000 (£163,000) across the 2009 vintage for his private collection."Everyone in China is thinking Lafite," he said. "It is seen in the same light as Louis Vuitton, Prada and Gucci."Prices will be set in the coming two months for this vintage, but it is already clear that first growths are likely to cost at least £4,000 per 12-bottle case. Even cases of lesser wines, such as Chateau Lynch-Bages, are likely to cost at least £600." …

Classy claret Top wines, top prices

The 2009 Bordeaux is already being ranked as the sixth great vintage of the last 50 years. Finding good-valued bottles from previous blockbuster years – 2005, 2000, 1982, 1961 and 1959 – is now very difficult and high demand is also set to overwhelm supplies of the '09. The single bottle prices of these great , when the fruit ripened perfectly, say it all. A 1959 bottle of Chateau Lafite Rothschild today costs £2,500, the '61 is £1,300 while the grandest, at £3,250, is the '82, according to merchant Bordeaux Index. Even the '05, which won't be ready to drink for another five years at least, costs £850 today. There are so few great vintages partly because of the region's climate. Hailstorms wipe out swaths of the crop, too much heat "overcooks" the grapes producing too much alcohol, and rain close to results in "thin" wine.

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Global Wine Trends 09/04/2010 Weekly Update

http://www.guardian.co.uk/lifeandstyle/2010/apr/02/bordeaux-wine-china

American buyers: keep prices down

DECANTER, UK

29.03.10: The message from American buyers at the beginning of en primeur week is clear: this might be a great vintage, but keep prices competitive. Buyers for California- based importer JJ Buckley were enthusiastic about the wines but were focussing on the lower price-brackets. 'The action is going to be at the €15 to €20 level,' said CEO Shaun Bishop. 'There is a lot of competition in the €50 to €100-level wines and we have already seen high-end Napa and Italian wines come down by 30%.' Laurent Ehrmann of negociants Barriere Frères agreed that the US economy is still fragile, but suggested that the vintage would satisfy everyone. 'It is successful on the left and right banks, red and white, and in all budget categories.' Bishop insisted prices must come down because 'we are tired of getting burned', alluding to the 2005 campaign which saw record en primeur prices later matched 'and even beaten' by lower on-the-shelf prices. …

http://www.decanter.com/news/news.php?id=296416

Bordeaux 2009: Calls for restraint as prices predicted to return to 2005 levels

DECANTER, UK

01.04.10: With a glut of cheap Bordeaux on the market, trade buyers are warning against opportunistic pricing in 2009, amid growing concern that prices could return to 2005 levels. In the US, Diageo subsidiary C&E Wines recently offloaded significant stocks of 2005 Bordeaux at reduced prices, leaving retailers predicting a hard time persuading consumers to pay more for an as yet unproven vintage. Speaking at the en primeur tastings, Lehmann CEO Chris Adams said that in spite of the quality of the '09 vintage, the economy was 'still in a bad place.' 'Yes it's a great vintage, but how can I recommend it to my customers when the 2005s, 06s and 07s are so much cheaper? 'If you're going to buy en primeur, you've got to be convinced that you're getting the best deal, and after what's happened recently, that's not certain.' Denis Marsan, director of the SAQ monopoly in Quebec, said that the demand for the wines was likely to inflate prices further. 'Coming here, we were planning on prices being 15% down on 2005. Looking at the top wines now, I'm not sure they will be,' he said. This comes as Chateau Angelus owner Hubert de Bouard admitted that while a month ago he had expected to come out around 15% lower than his 2005 price, he now predicts parity. Corinne Mentzelopoulos from Chateau Margaux, told decanter.com that she still had 'no idea' how the 2009's would be priced. 'We brought prices down by 45% last year. Compared to minus 45%, prices are going to go up. But by how far I have no idea.' 'It's the market that decides. We have to find the price at which everybody will be happy buying it.'

http://www.decanter.com/news/news.php?id=296535

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Global Wine Trends 09/04/2010 Weekly Update

Wine bluffers exposed by research

THE DAILY TELEGRAPH, UK

09.04.10: Two thirds of people claimed to have a wide knowledge of the subject but nevertheless got their facts mixed up. However most admitted to choosing the second cheapest bottle on the menu.

Two thousand wine lovers took part in a survey exploring their wine knowledge and what they found confusing about the subject. Beer could stop bones going brittleThe one question answered incorrectly the most (87%) was that can only be made from white grapes, when it is in fact also made from red. And six in ten believed all wine enhances with age. in fact the majority of wines are produced ready to drink with little potential for ageing. Only a rare few last longer than a decade. Two thirds of respondants admitted they either ignore or bluff their way through a 's advice and pretend to understand their consultation. The research also reveals that the average price diners spend on wine in a restaurant is £12.64, and a quarter just choose the cheapest on the list.

A third of people spend between £9 and £12 and 30% spend between £13 and £17. The research was commissioned to mark the launch of WINEfindr, a pocket sommelier available as an iPhone application.

Steve Semenzato, CEO of Cortexica, the company behind the application, said: ''We are a nation who think we know a lot about wine but the research reveals that we actually just bluff our way through restaurant lists to perhaps impress our guests. ''It's fascinating to see the regional split in wine behaviour and also that we still as a nation find wine so hard to understand. The research has also revealed a regional split for favourite types of wine. Drinkers in the North East, North West, South West, Scotland and Northern Ireland prefer . Red wine is appreciated more in the South East, East Midlands, East Anglia and London. West Midlands wine lovers distinguished themselves by citing rose as their favourite tipple while the biggest Champagne drinkers were in London, followed closely by the North East and South East.

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7568186/Wine-bluffers- exposed-by-research.html

Cheap Cotes du Rhone edged out of UK market

DECANTER, UK

01.04.10: UK sales of sub-£4 Rhône wines tumbled by 73% in 2009, according to new figures from Inter Rhone. Currency fluctuation and duty increases were blamed for the fall, as Rhone wines under £4 become harder to find across the UK retail sector. Olivier Legrand, marketing manager for regional body Inter Rhône, said that sales of entry-level wines had encountered 'significant difficulties.' 'The weak pound and the increase in alcohol taxes has limited the offer in this price category.' At the same time, he added, wine drinkers have chosen to spend more on Rhone wines, rather than trade down to an alternative. Wines costing more than £4 now account for 71% of Rhône sales, against 42% in 2007, with sales of wine above £10 up 35% on 2008. Sales of cru wines, in particular, have doubled since 2004. Overall, Rhône sales in the UK decreased by 13% in volume and by 5% in value in 2009, slightly outperforming French wines in general, which saw a fall of 16% in volume (8% in value) in the UK. 'Recent changes in the economy

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Global Wine Trends 09/04/2010 Weekly Update make it unlikely that there will be a significant increase in the volume of Rhône wines on the UK market over the next few years,' Legrand added.

http://www.decanter.com/news/news.php?id=296550

Brown Bros tackles climate change

HARPERS, UK

07.04.10: Australian producer Brown Brothers is trialling new grape varieties and techniques in a bid to combat climate change. Head of Wendy Cameron said that people are "very worried" about climate change, and as a result, the company is working on its canopy management, to give grapes more shade, as well as using techniques such as sub-surface irrigation, a more efficient method in which water emitters are placed about one foot below the ground, to limit evaporation. In addition, Brown Brothers is trialling Mediterranean grape varieties such as Nero d’Avola, and Aglianico, varieties that are more tolerant of higher temperatures. Other grapes being trialled include Fiano, Grüner Veltliner and Greco di Tufo, as well as lesser-known varieties such as Scheurebe, Comtessa and Austrian grape Rotgipfler.Cameron said: "We’re also trialling dealcoholised wine – I don’t think we’re talking about zero-alcohol wines, but I am interested in dropping alcohol levels by a couple of per cent, although it’s very experimental at this stage." The company is also about to launch a new range of screwcapped wines, Crouchen (pronounced "Croo-shen"), which will retail at £6.99. The range features blends of the Crouchen grape with other varieties, including a , a and a Riesling Rosé.

http://www.harpers.co.uk/news/news-headlines/8900-brown-bros-tackles-climate- change.html

Vinitaly goes to Hong Kong

DECANTER, UK

06.04.10: Veronafiere, the company that runs Vinitaly, is to sign a Memorandum of Understanding (MOU) with the government of Hong Kong which may result in a Vinitaly-style wine fair in Hong Kong.This follows up the commitment signed in May 2009 in which Italy and Hong Kong agreed to co-operate on wine-related businesses. The new MOU focuses specifically on a partnership with the Hong Kong Trade Development Council's International Wine & Spirits Fair. Benjamin Chau, Deputy Executive Director of the HKTDC, is meeting with Italian government officials and trade associations and will attend Vinitaly – 8-12 in Verona - specifically to finalise the new agreement. 'Italy recognises Hong Kong's efforts to become a wine hub for Asia,' said Giovanni Mantovani, CEO of Veroniafere. 'Under the umbrella of Vinitaly, Italian producers will be able to communicate with the local Hong Kong market – and also develop Asian markets in general.' In 2009, Hong Kong imported €9m (£7.9m) worth of , almost 20% more than the previous year. 'In the past, Italian producers have held various tastings in Hong Kong but in a very fragmented way,' said Mantovani. 'With Vinitaly World Tour as the brand, plan to take a more targeted approach to promoting Italian wine.' Vinitaly – now in its 44th year - is the largest wine fair, with around 4,500 exhibitors. The HKTDC Wine & Spirits Fair had its second edition in November 2009, with 525 exhibitors.

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Global Wine Trends 09/04/2010 Weekly Update

http://www.decanter.com/news/news.php?id=296630

Vega Sicilia boss: Spanish wines undervalued at auction

DECANTER, UK

07.04.10: is greatly undervalued on the secondary market, says Vega Sicilia owner Pablo Alvarez. During a recent dinner in Hong Kong, Alvarez said it was 'natural' his wines should appear in international auctions alongside the likes of Châteaux Lafite, Latour and Mouton Rothschild – but said that other top Spanish wines were conspicuously absent. A cursory examination of prices at auction shows Chateau Lafite attracts two to five times as much as Vega Sicilia, depending on the vintage. 'It's good that Vega Sicilia fetches triple the release price,' he said, citing the November 2009 Sotheby's auction which yielded US$1,088,698 (£712,694).

'But it shouldn't be the only Spanish wine in this position. is the most important region of Spain, and the one that has been producing top wines for the longest.' Alvarez told decanter.com that as one of the major producers of the world, Spain's presence and perceived value at auction was disproportionately low, and that the market must re- evaluate them. 'I agree many Spanish wines merit a higher profile,' said Stephen Mould, head of Sotheby's European wine department. 'Perhaps the Spanish just haven't promoted them as aggressively as the French. While first growths sell themselves, if you look at Lafite: they are still out there promoting themselves as number one.' 'You have to get out there and wave the flag.'

http://www.decanter.com/news/news.php?id=296657

Wineries in Southern Australia bank on German tradition

DEUTCHE WELLE, GERMANY

05.04.10: Southern Australia has the ideal combination for a prosperous wine industry: a good climate and an influx of German settlers with a winemaking tradition. Their children now export their wines back to Europe with success. If you drive north out of Adelaide in South Australia, there's a point where the names of towns and streets start to have German names and the architecture changes from British colonial to 19th-century German. Every village's main street has a German style bakery and signs touting "wurst" or "wein." When the grass-covered rolling hills give way to , you've arrived in Barossa Valley. The pioneers who opened this area up in the 1840s were German-speaking Lutherans fleeing from religious persecution in their Prussian homeland.

A British entrepreneur, George Fife Angas, and his South Australia Company were looking for settlers to develop the new colony and the hard-working Prussian farmers fit the bill. Some 150 years ago, those families and their culture laid the foundation for Australia's prospering wine

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Global Wine Trends 09/04/2010 Weekly Update industry.

Aussie wines with 'get-up-and-go' It is early autumn in the Barossa Valley, and that means harvest time. There's frantic activity, as grape growers try to time their picking exactly right. A century-and-a-half ago, the Henschke family was among the first Prussian settlers and their descendents still run a near Keyneton. During the harvest season, pickers work through the night to bring in the Pinot Gris harvest, which is used to make one of the few white wine varieties that comes from dark-skinned grapes.

Pinot Gris first gained popularity in the wine-growing regions of Germany, where the wine from these grapes is called "grauer Burgunder." The variety originated in the vineyards of Burgundy in France. Bildunterschrift: The Barossa Valley is particularly known for its Shiraz production

From spirits to wine

Another winemaker in the area, Peter Lehmann, has German ancestry as well but took a much different path to the wine business. The son of a Lutheran pastor, Lehmann was the first in the family to go into winemaking. When people ask him if his father was also a winemaker, he tells them, "No, he was in the spirit business." "Some people don't get it right away!" he added with a laugh. When Lehmann was growing up, German culture was still strong in Barossa Valley and church services were held in German. "When I was young," he said, "I believed that God spoke German, and I believed that until my first visit to . Then I realized that God spoke Afrikaans!" In the 1970s, an oversupply of grapes threatened the Australian winemaking industry. Lehmann started a company that bought up the surplus grapes - and later became one of the country's most respected wine producers. Now he is known as the Baron of the Barossa. More than 160 growers supply to Peter Lehmann wines and 70 percent of the finished product is exported. Bildunterschrift: Peter Lehmann, known as the Baron of the Barossa, and his wife Margaret

Reconnecting to Germany

"Initially our biggest market was England, but we now export to 38 countries," said Lehmann, who turns 80 this year. "One of our growing markets is Germany." White wines - particularly Riesling - have always done well in Australia, says Lehmann, but his principal grape is the Shiraz, followed by . He hasn't yet tried selling his white wines in Germany. "Lots of German palates seem to appreciate the Australian red wines, particularly Shiraz," said the winemaker. "Germany is a country where they don't care how much they spend on their cars, but when it comes to food and wine they look for value." Lehmann says that these days much of the old German culture has disappeared, partly because of the two wars fought against Germany, but also due to neglect. "During the Second World War we were made to feel ashamed of our past," he said. "I tell people now I'm ashamed of the fact that I was ashamed of my own heritage." The best year yet Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Kies is optimistic about the 2010 harvest

Bildunterschrift: Built by early German settlers, this house served first as a family home, then as a makeshift church until 1904, after which it was used as a schoolhouse and post office"With this beautiful ripening weather we've had, the fruit has well-balanced flavors and the berries have been able to fill out beautifully. I think this will be one of the best years since 2006," predicted Kies. "That was a really good vintage for us but I think this one will be better."With its

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Global Wine Trends 09/04/2010 Weekly Update ideal soil and the German winemaking know-how it inherited, the Barossa Valley has strong potential for good wine. The Baron of the Barossa, Peter Lehmann, believes the area's success was a lucky coincidence. "The Lutherans came to Australia for religious freedom, and fortunately for us, they were drinkers," he said. "I think Martin Luther said something along the lines of 'He who loves not wine, women, and song remains a fool his whole life long.'"

http://www.dw-world.de/dw/article/0,,5421373,00.html

In Burgundy, one house grows by thinking small

SAN FRANCISCO GATE, USA

04.04.10: For a guy sitting on seven generations of family tradition, Erwan Faiveley seems pretty comfortable serving as the face of modern Burgundy.Faiveley, 30, is the latest to helm his family's namesake firm, Domaine Faiveley, which dates back to 1825. No surprise that a winery with such a long run hasn't merely stuck to its own cellar. For decades, Faiveley was a reliable, prominent name in the Cote d'Or - dating back to a time when Burgundy was bought from negociants and brokers and sold on the reputation of each vineyard. The balance of power has shifted in recent decades. Small domaines, run by individual growers toiling in their own slivers of premier cru and grand cru sites, have become the new stars. Negociants, the region's economic stalwarts, had access to these same sites and to solid winemaking, but their success became a bit of a liability. Their size - which in a region like Bordeaux would simply channel success - engendered a certain suspicion in a land where ancient iconoclasm reins.Then there are houses like Faiveley. It's not quite fair to call Faiveley a negociant: The firm supplies 80 percent of its own grapes for a production of 60,000 cases - a relative waterfall by Burgundy standards - across 100 different labels. If its workaday Bourgogne Rouge encompasses 8,000 cases, Faiveley's reputation has been built on results from many of the finest sites in Burgundy - both shared sites like Mazis-Chambertin and its own self-held parcels like the Clos de Corton Faiveley. Yet it retains that overtone of size, which sometimes still pushes it to the back of many wine buyers' minds in favor of the smaller and trendier.That's a shame, because the Faiveley wines in the past few vintages have been getting ever better - showing clear, forward fruit and a light, skillful touch with winemaking. The wines are correct in their sense of place and often delicious - not only the fancy grands crus but also in Faiveley's lesser-known holdings, like the Clos des Myglands site in Mercurey, in southern Burgundy, and the workhorse village wines. Thus Erwan has found his goal: to bet Faiveley's future not on the tidy profit of the bigger negociant trade, but on small projects from sites it owns and farms itself. The waves of Bourgogne rouge will give way to the puny 150-bottle annual production of Musigny.

"Our idea, in a perfect world would be that we're working only with our domaine," he says. …

The 2007 vintage in Burgundy is one of those fighting topics - a difficult, uneven year from a hot spring spike and then a wet August that left many vineyards with uneven clusters and rot. After tasting 2007s through the past year, and one final chance to taste through some top wines at the recent La Paulee event in San Francisco, I came to a conclusion similar to others who prefer their Burgundy in subtle guises. The 2007s are compelling, complex, high-acid wines. The best are the essence of what makes Burgundy

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Global Wine Trends 09/04/2010 Weekly Update unique.This is a departure from a year like 2005, when the wines were all about flesh. They were rewarded for approachable flavors and their big-tent approach to Burgundy. Not the 2007s: They will not charm all comers. They are more introvert wines.The whites are full of and nerve. They hold forward mineral and floral accents that elevate white Burgundy from its source material. Chassagne-Montrachets are full of their signature crunchy stone presence; Meursaults are rich, but not lavish. Chablis is gorgeous.The reds are more complicated, delicate creatures. If they lack obvious approachability, the best - especially from the Cotes de Nuits - have utter transparency and complexity, without sacrificing ample richness. These are thinking-man's Burgundy.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/04/FDN11CNVHV.DTL

Trading Standards on trail of wine company

HARPERS, UK

07.04.10: The supluswine.co.uk website is no longer contactable by telephone and West Yorkshire Trading Standards is investigating complaints from a number of consumers who have paid money for wine they have yet to receive. Some are understood to have received refunds but others say their cards were debited at the time of their order and they have been unable to get their money back.Recently a member of staff told Harpers that the site had suspended sales while it coped with a backlog of orders, following an unexpected surge in interest.But on March 26 – the day many orders were due for delivery – the Leeds restaurant owned by surpluswine.co.uk's parent company, Mardenis, closed for business. Efforts to trace owner Denis Lefranq have failed. Surpluswine.co.uk took advertising in the Mail, Telegraph and Times newspapers.

http://www.harpers.co.uk/news/news-headlines/8897-trading-standards-on-trail-of-wine- company.html

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.

Washington wine industry tops 650 wineries

THE ASSOCIATED PRESS, USA

31.03.10: Hugh and Kathy Shiels wanted to stand out when they started Cote Bonneville winery in 2001, and at $100 a bottle for their initial vintage, they certainly did. Some criticized the eastern Washington winery for charging so much for unproven wines, but Cote Bonneville has received high scores from wine critics and found markets in Florida, New York, Chicago and, just last week, Denmark. "We had pretty lofty goals for a small winery, and we're still maintaining those goals," said Kathy Shiels. "We had a particular piece of property that we believed was of the caliber to show itself on a world stage. That's not why a lot of people start making wine." Back then, Washington's wine industry was an industry

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Global Wine Trends 09/04/2010 Weekly Update darling, with fewer than 200 wineries. Setting yourself apart wasn't overly difficult, whether you charged $100 a bottle or not.

No longer.

Now at more than 650 wineries in Washington, with a new license bonded every 10 days, it's getting harder to get noticed in a state still known more for its Red Delicious apples than its Riesling. "I wouldn't want to start up now unless I had really, really deep pockets," said Rick Small, who in 1976 founded Woodward Canyon Winery near Walla Walla, Wash. "It's a lot harder than I think people realize it is, and there's a lot of competition, and I'm just talking in Washington." Valued at about $3 billion annually, Washington's wine industry still ranks second behind California, which has more than 10-times the acreage and four-times the number of wineries. Few Washington wineries are widely recognized by average consumers outside the region, and most are known for producing wines priced in the $40-range and lower, though a number of wines top $100 a bottle now. The competition has made it harder for winery owners in the state, said Robin Pollard, executive director of the Washington Wine Commission. "It's definitely a buyer's market," she said. "Wine consumers are becoming much more educated and savvy and knowledgeable." Greg Harrington, founder and winemaker at Gramercy Cellars, came to Walla Walla after overseeing wine and alcohol programs for 15 restaurants and hotels in New York as a partner in BR Guest Restaurants and James Hotels. He previously worked with famed chef Wolfgang Puck and is a master sommelier.

Price defines perception, Harrington said.

"Why is a Gucci black T-shirt $850 and I can get the same thing from J-Crew for $20?" he asked. "It's all about what you like." Gramercy Cellars wines range in price from $40 to $65. Iconic wines and iconic wineries aren't necessarily the same thing either, he said. "For me, I would rather have five really good wines than four good ones and two that are outstanding," Harrington said. "If you can get $120 a bottle, that's great. It's a worse sin to sell your wines for too little than too much." At any price point, it's going to be difficult for wineries to continue to set themselves apart, said Joshua Greene, editor and publisher of Wine&Spirits magazine. …

http://www.google.com/hostednews/ap/article/ALeqM5h472eYDilwtMYx8aKnYJqixyCU- QD9EPF8780

French government backs wine tastings in university canteens

DECANTER, UK

06.04.10: The French government has published a report recommending that university canteens hold sessions. The report, detailed in the May issue of Decanter magazine, was commissioned by the French minister for higher education, and gives a range of proposals on students' consumption including 'initiation to a moderate consumption of wine'. Television presenter Jean-Pierre Coffe, who co-wrote the study, believes universities should give students an education in wine as well as in academia. 'Why is there sex education and not viticultural education? …

The move comes amid concerns in the wine trade that France's vocal anti-alcohol campaigns fighting drink driving and highlighting the health risks of wine are

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Global Wine Trends 09/04/2010 Weekly Update harming the industry. In February 2009 a report by the French Cancer Institute found that 100ml of wine a day could increase the risk of cancer, and in May a bill was passed making it illegal to offer free alcoholic drinks for promotional reasons. Last November, Paris city hall launched an awareness campaign aimed at the capital's 15-25-year-olds, warning of the dangers of 'le binge drinking'.

http://www.decanter.com/news/news.php?id=296617

Constellation-AV merger off

OFF LICENCE NEWS, UK

08.04.10: Constellation and Australian Vintage have ended discussions about a possible merger of their Australian and UK operations without a deal. The two firms had announced that discussions were taking place five months ago with a view to a deal designed to counter “unprecedented negative operating conditions”. But after talks broke down today, Constellation president and chief operating officer Robert Sands and Australian Vintage chairman Ian Ferrier released identical statements which said: “There were a number of goals both parties were attempting to accomplish.“Over time, it became evident that despite both parties’ best efforts we were not going to be successful in accomplishing these goals. “Therefore, we mutually decided it was in the best interests of [both companies] to discontinue our discussions and focus on our respective businesses.”Constellation said it would continue to operate its Australian and UK businesses with a focus on increasing efficiencies, reducing costs and improving cash generation.Ferrier added: “Australian Vintage is in good shape with its lowest debt level in nine years. “We will continue to manage the businesses through the cycle and look at all opportunities as conditions improve.”

http://www.offlicencenews.co.uk/articles/81875/Constellation-AV-merger- off.aspx?categoryid=245

Wineries are tapping into eco-friendly trends

THE SEATTLE TIMES, USA

27.03.10: A FEW YEARS ago, I was invited to deliver the keynote address to the annual meeting of Washington wine-grape growers. This is a group of more than 300 vineyard owners who oversee the roughly 35,000 acres of wine grapes in Washington state. More than a few of them also make and market wine. Although they obviously have an agricultural perspective, I set out to convince them that they were in the entertainment business, too. Even those who simply grow and sell grapes, without having to make or market the wines, are bound to the fortunes of the wines that result from their efforts. If a vineyard consistently produces grapes that end up in highly rated, award-winning wines, the prices and demand for those grapes will rise. If it goes the other way, well, that contract may not be renewed.The point is that wine is a fashion-driven business. Like other trendy, optional pleasures, wine is mostly viewed as entertainment. It must compete with everything else that's vying for consumers' entertainment dollar. Do you buy a $20 bottle of wine, or go to the movies with your spouse? Pick up that new wine book for your Kindle or download the Guitar God app for your iPhone? Inevitably, changes in consumer buying habits affect wine styles and trends, and we are in the midst of some major sea-changes at the moment. Younger consumers in

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Global Wine Trends 09/04/2010 Weekly Update particular are looking for products that pay attention to their environmental impact. At the vineyard/winery level, this applies to everything that pertains to the care and stewardship of the land. It starts with sustainable farming, which minimizes the use of chemicals and often leads to organic farming, which in turn evolves into biodynamic. In this state, Bill and Greg Powers were pioneers in sustainable grape growing, and their Badger Mountain vineyard was the first to be certified organic. The Vinea project in Walla Walla is one that encourages sustainable vineyard practices countywide. Grower/producers such as Pacific Rim and Cayuse have gone completely biodynamic, and I think Hedges is close to being certified as well. These earth-friendly efforts don't stop in the vineyard. Let's leave aside, for the moment, the thorny question of what is or isn't an . Organically farmed grapes are more important. After that, wineries are looking to reinvent every step of the winemaking and packaging process. At Benziger in Sonoma County, Calif., the vehicles run on biofuels, all wastewater is cleaned and recycled, there is an insectary to promote habitat for pest-controlling insects, and bird perches for raptors, owls and bluebirds to keep the rodents in check. As part of the biodynamic approach, sheep graze the vineyards, providing compost and keeping the cover crops down. …

http://seattletimes.nwsource.com/html/wineadviser/2011372192_pacificpadviser28.html

If one green bottle

THE ECONOMIST, UK

08.04.10: NESTLING beside the Tinguiririca river, between the north-south Pan-American Highway and the Pacific, the Colchagua valley is sometimes compared to Tuscany. Amid its gentle hills and pretty villages are vineyards that produce some of Chile’s best red wines. At this time of year, during the grape harvest, the valley is normally alive with wine festivals. …

The earthquake damaged winery installations, too. Just how much wine was lost, and how much time and money it will take the industry to get back to normal, have become matters of fierce argument. Vinos de Chile, the industry association, says that 125m litres of wine were lost, as storage tanks were ruptured and bottles broken by the earthquake. A fifth of the losses were in the Colchagua valley. The total loss amounts to just 12.5% of national production in 2009, a bumper year. “We’ve been overstocked for a long time and there’s no risk of a shortage of anywhere in the world,” insists René Merino, the president of Vinos de Chile. However, he says producers might have to raise prices later this year if the peso strengthens because of the inflow of reconstruction money.

But some people in the industry say the association’s figures are underestimates, aimed at reassuring overseas buyers that supplies will not be interrupted and deterring grape growers from jacking up their prices. “They’re trying to defend themselves against competitors in Argentina who’ve been telling importers that Chile will be off the map for the time being,” says a wine analyst in Santiago. Concha y Toro, the biggest producer and exporter, has so far declined to reveal its losses even though its shares are

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Global Wine Trends 09/04/2010 Weekly Update publicly quoted. Andrés Sánchez, a wine consultant based in the Maule region, just south of Colchagua, reckons that spillage in the earthquake totalled over 300m litres.

A similar argument is raging over this year’s vintage. Mr Merino insists the earthquake will have no effect. Others disagree. Mr Sánchez thinks that adverse weather—frosts in November and rains in January— meant that this year’s grape harvest was anyway going to be small. The drop in output of white wine, much of which is made farther north in the Casablanca and Leyda valleys, could reach 40%, he says. Wine producers in the Colchagua valley say that damage to irrigation systems meant that some fields could not be watered for up to two weeks after the earthquake. However, a cool spring and summer has increased grapes’ natural acidity. All this points to a smaller, but high quality, vintage. “This will be an exceptionally complex year for the Chilean wine industry and much will depend on what winemakers make of the grapes,” says Mr Sánchez.Then there is wine-related tourism. This had begun to bring extra money to places like Colchagua. Many of the valley’s attractions were destroyed by the earthquake. They were built of adobe, making them picturesque but deadly. In Santa Cruz, the valley’s main town, the white adobe church on the main square will have to be demolished. All that remains of the church in Peralillo, a nearby village, are two stark white columns. Carlos Cardoen, who owns the largest hotel in Santa Cruz, says he hopes to reopen in September. But he adds that it will be two years before tourism in the valley returns to normal. Rebuilding more safely while restoring the region’s architectural heritage will be tricky. …

http://www.economist.com/world/americas/displaystory.cfm?story_id=15868397

Recession-hit Britons give up on drink as alcohol sales drop a record amount

THE DAILY MAIL, UK

31.03.10: Spending on alcohol has fallen by a record amount during the recession. The Office for National Statistics revealed that sales of wine, spirits and beer dropped by 6.6 per cent in 2009 - the largest slump since it began reporting the figures in 1965. The fall was prompted in part by an unprecedented crash in wages. These fell by 0.5 per cent in 2009, the first time the figure has declined on an annual basis since the ONS records began. Its report yesterday showed that spending on alcohol tumbled to £12.8billion in 2009 from £ 13.7billion in 2008. Spirits consumption slid 4.5 per cent, wine 7.7 per cent, and beer sales fell 7.1 per cent. The figures do not cover sales of drinks in pubs, restaurants and hotels, where revenues fell 4.8 per cent - the most since 1991. Wine and Spirits Trade Association spokesman Gavin Partington said: 'No other product has been subjected to a 25 per cent tax rise over the past two years, during the worst recession in a generation.' Health campaigners will welcome any sign of declining alcohol consumption, given the toll imposed by alcohol-related illness. The burden of alcohol addiction on the NHS has been estimated at £2.7 billion a year. Public health experts, including Sir Liam Donaldson, the Chief Medical Officer, have called for minimum prices. Research from Sheffield University has suggested that a minimum price of 50p per unit would save around 2,900 lives a year after 10 years. The drinks industry said yesterday that the slump in spending reflects much higher duties as well as recession-induced belt-tightening. …

http://www.dailymail.co.uk/news/article-1262428/Recession-hit-Britons-drink.html

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Global Wine Trends 09/04/2010 Weekly Update

Spain's three billion litre wine lake

THE INDEPENDENT, UK

28.03.10: It's Saturday lunchtime in Granada, and by rights a decent wine bar such as El Ajo Blanco should be humming with satisfied customers downing a quiet glass of Rioja or maybe a lesser-known Somontano. But no. For a good 90 minutes the bar is completely deserted. A middle-aged woman bustles in, but she's not staying: all she wants is a bottle of wine as a present. "We've lost between 40 and 60 per cent of takings on wine," estimates the owner, Nicolas Fernandez Unica. "Since the recession started, things could not have got worse faster. Ten years ago people would start drinking wine at lunchtime and then stick around for a glass or two afterwards. They'd come in on Mondays and Tuesdays. Not any more." In Madrid it's a similar story in wine bars such as La Dominicana. These days beer is their top-selling product. "I tried to promote wine but I had to change tack," the owner, Angel Ibañez, tells me. "What with the recession, apart from the well- known wines like Rioja or Ribera, they're just not selling. Anything that costs more than €2.80 a glass I've ended up drinking myself."Unofficial estimates say that wine sales in Spain, the third largest producer in the world, have dropped by about 10 per cent. But whatever the actual figure, the knock-on effects on the wine industry are so serious that the government has been forced to intervene. Twenty million litres of wine will be bought and converted into industrial alcohol. But even that will resolve only one small part of the problem. El País newspaper estimated that 16 times that amount – 34 million hectolitres, in the industry's jargon – remains unsold. If all wine production stopped in Spain for a year, there would be only an 11 per cent shortfall. Cut to grass-roots level, and the effects of a wine glut and falling demand are varied. Last week in Barcelona at Spain's biggest food festival, Alimentaria, the country's best-known wine, Rioja, had a small but significant dent in representation compared with 2008 – down from 110 different brands to 92. In the Castile-La Mancha region, however, which has the largest single area of vineyards in the world – roughly 500,000 hectares – they are running scared. An estimated 8.5 million hectolitres of wine are waiting for buyers. "The prices have plummeted and wine just doesn't sell," Jacinto Trillo, the president of one of the biggest wine co-operatives in the region, said recently.Where markets seem to be holding up the best, though, is in exports, even if Rioja wine dropped by 8 per cent last year. In comparison, in the El Priorat region in Tarragona, which covers an area of just 1,680 hectares, they say they will weather the economic storm. "A few months ago I was concerned about losing my job," Guillem Sabater, a manager of El Priorat's leading co-operative tells me as he gazes over the acres of vineyards that surround one of the region's most important villages, Gratallops. "The number of orders from one of our main customers, the United States, has dropped a lot, and they've yet to fully stabilise. It's been worrying."It's hard to believe such an idyllic rural scene could be facing such difficult times. "We used to get huge numbers of Spanish families coming in and buying top- class wines," says a sales assistant in a winery, who did not want to be named. "Now eight out of 10 of our customers are foreign, and the few Spaniards who come in always look at the expensive wines – then buy the cheapest." "The industry is screwed," says Josep Ferrer, a local hotel owner. "Of course you still get the American tourists who come over on wine-tasting trips: if they can afford a ticket across the Atlantic, they can afford to buy the stuff. But here at home, interest in drinking wine is plummeting."Abroad, shifts in the industry's fortunes are being closely followed. At Moreno Wine Merchants in Maida Vale, London, they've noticed only a

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Global Wine Trends 09/04/2010 Weekly Update tiny drop in UK consumption thanks to the recession. However, they recognise the producers are taking a hammering. "We've had a decrease of maybe 1 or 2 per cent in the high-level Riojas, but in Spain the industry is suffering a lot," says Abbi Moreno. "It's true that of all the companies we're dealing with, just one has gone under. But that's because they are producers with long-standing reputations. It's the newcomers that are worst off."While Ms Moreno says the cheaper offerings from Spain are doing well, at a more local level, not all UK wine dealers are feeling the same benefits. "In late 2008, the euro suddenly got a lot a stronger," says Charlie Cotton of Bray Valley Wine in Devon. "The Italians dropped their prices in response, and the French by and large said it was not their problem. But the Spaniards upped their prices, and that was a killer."Prices are slowly rising yet again in Spain, but overall consumption remains on the ebb. Meanwhile, the blame game has begun. …

http://www.independent.co.uk/news/world/europe/spains-three-billion-litre-wine-lake- 1929321.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.

Top whites fight off flab

JANCIS ROBINSON, UK

01.04.10: In the superripe 2009 vintage, two of Bordeaux's most famous white wines seem to have decided to go to the gym. Yquem, the region's flagship sweet wine, is no less complex and potentially long-lived than usual, possibly more so, but, unlike many of its super-rich, super-sweet, occasionally downright fat peers, it has a sort of electric, toned, vibrancy. Bravo! Pavillon Blanc, the all-Sauvignon dry white wine of Ch Margaux, has undergone a similarly dramatic transformation. From the 2009 vintage it is much leaner, racier, more mineral - and probably longer-lived than previous, fatter vintages. The team became concerned about some recent vintages notching up more than 15% alcohol. The 2009, even though picked at the usual time, is under 14%. In this four-minute video, Paul Pontallier and owner Corinne Mentzelopoulos describe how they achieved this. And discuss how much of it they drink. Keep coming back for more reports of the 2009 bordeaux and watch out for my full set of hundreds of tasting notes next week.

http://www.jancisrobinson.com/articles/a201003314.html

How much should you pay for a bottle of wine?

THE TIMES, UK

01.04.10: Imagine buying a case of wine. Now imagine removing six bottles and leaving them on Alistair Darling’s doorstep. That, in effect, is the upshot of last week’s Budget, which has pushed duty to £1.69 a bottle, the

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Global Wine Trends 09/04/2010 Weekly Update highest in Europe after Finland and Ireland. Add VAT and the total tax on most wine amounts to more than half of its retail price. I’m afraid the bad news doesn’t stop there, because the Chancellor isn’t the only person who takes his cut. By the time you’ve paid someone to make, package, ship, store and sell your wine, there’s very little left over for the actual liquid. It may shock you to learn that a bottle that costs £4.99 probably contains only 40p worth of wine. Sterling’s slide against most currencies hasn’t helped matters. This has pushed up the cost of wine from Australia, New Zealand, South Africa, Chile, the US and mainland Europe by 25 per cent or more in the past two years. No wonder we wine drinkers are watching the Greek economic crisis with interest. The weird thing about all these increases is that they have had very little impact on the shelf price of most wines. At £4.32, the average bottle costs more than it did a year ago, but it certainly doesn’t reflect the collapse of sterling or the Treasury’s decision to kick wine drinkers where it hurts. The reason for this is what supermarkets call “driving footfall” — code for tempting you into the store to part with your money. Wine offers are acknowledged to be the best way to get punters through the door, which is why you can still find three-for- £10 deals out there. Most of these are loss leaders, deliberately and cynically priced below cost. The supermarkets make up the shortfall on other products, sacrificing the quality of their low-end wines in the process. Another trick is artificial promotions. One supermarket was offering a mediocre Saint Émilion at £7.49 recently, for example, down from £14.99. This wasn’t an outright lie, but it was misleading. To sell a wine at half price, it has to be available at full price in at least one store for 28 days, but that’s the only legal restriction. The sting is that the wine was never worth £14.99 in the first place. A good source in Bordeaux tells me that it should retail at £6.99 and sells in Calais at €5 a bottle. More than 50 per cent of all supermarket wine is now flogged on a deal. In some cases, the offers are genuinely tempting, but mostly you get what you pay for. A wine at £3.33 is unlikely to be enjoyable, even if it’s sold at a slight loss, for the simple reason that no one can make good wine that cheaply any more. Not even in China. So how much should you spend? As much as you can afford is my advice. Given that duty is a fixed cost, all £1.69 of it, the value of the wine in the bottle increases as you trade up. At £4.99 it’s around 40p; at £8.99 it’s closer to £3.50. You don’t have to spend a fortune to notice the difference in your glass. …

http://www.timesonline.co.uk/tol/life_and_style/food_and_drink/wine/article7083203.ece

Promising newcomers in China

JANCIS ROBINSON, UK

03.04.10: Forty-eight hours in China recently was not enough for any profound investigation of the exploding wine scene there but it was enough for me to realise that at long last there are some exciting new developments in Chinese-grown wine. My two previous visits had been in 2002 and 2008 and on the second I had been deeply depressed by the fact that, while the rest of the world was making better wine with every vintage, the quality of Chinese wine seemed to have stagnated. The typical Chinese wine still tastes like a very poor quality Bordeaux Rouge: sometimes not recognisably vinous, thin from overproduction, tart from underripeness, and often tough, thanks to an obsession with the unyielding Cabernet Sauvignon grape that has dominated vineyard plantings in China's new wine-drinking era. This seems to me to be precisely the sort of wine least likely to woo a neophyte wine drinker, and least likely to be a good match for Chinese food. But at long last I encountered a wine made from 100% Chinese grapes that would surely

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Global Wine Trends 09/04/2010 Weekly Update be an absolutely perfect introduction to wine for anyone such as the more than a billion Chinese who have never so far tasted it. And with its convincing core of fruit, easy grapiness and sizzling crispness, it would be a suitable foil for all manner of mild, spicy, sweet and sticky morsels destined for their chopsticks. The only trouble is that it is white, and therefore in theory of limited appeal to Chinese consumers. Symphony, the wine in question, is a joint venture. It is made at Grace Vineyard, by far the most successful producer of Chinese red wine to date, based in Shanxi province, with an Australian winemaker and a Hong Kong fortune behind it. But the idea for this lively, young off- dry Muscat came from Torres China, one of China's more successful distribution companies, set up with great prescience by the dominant Catalan winemaker Miguel Torres as long ago as 1997. They made 10,000 bottles of the first, 2008 vintage and saw them sell out long before next month's launch of a slightly drier 2009. From the 2010 vintage there will be a red version. …

The Chinese government is keen to see the wine enterprises that have so far been established here, including the vast Suntime, play their part in improving the local economy, which is seen as an important route to soothing the region's ethnic unrest.) Pernod Ricard have also invested in Helan Mountain. After an early involvement in the Dragon's Seal brand, the French multinational has now set up in a joint venture with locals in Ningxia province and an Australo-Chinese team is already making a range of solid varietals using Helan Mountain as a brand name. (Chinese laws on appellations and the protection of place names are so far non-existent.). Jacob's Creek winemaker Phil Laffer, who has spent some time there, told me that the principal challenges are convincing local farmers to grow grapes for optimum wine quality rather than maximum (an endemic problem throughout China), some less than satisfactory trellising techniques that leave the grapes so close to the ground that they sometimes need to have the soil rinsed off them, and an inconveniently wide variation in ripeness levels. Because of the cold winters here, the Pernod Ricard team are considering planting Cabernet Severny, which incorporates genes from the Mongolian species amurensis.

One company, Tontine Wines, specialises in wines made from all-amurensis vines grown in Jiangxi province in the south east of China. Nearly three quarters of the wines they sell under the Tongtian and Tongtian Hong labels are sweet and they have had such sales success that this year they are planning to increase annual production from19,000 tonnes to 39,000 tonnes. Doubtless many more foreign bees are currently buzzing round the honeypot that is the potential for Chinese wine. Honiton Energy, an alternative energy company based in Beijing, plans to invest $50-100 million in establishing a Chinese wine operation that will include importing a 'big volume of wine from a reasonably good, large, but financially troubled winery in either New Zealand or Australia, and rebrand[ing] it in China. The bulk of our investment here to be spent in marketing.' This is presumably to tide them over while their Chinese vineyards are established.The eyes of the fine-wine market in China are on the joint venture announced last year between the owners of Château Lafite (whose French wines' commercial success in China has been truly astounding) and the Chinese giant CITIC group. To the surprise of many, they have chosen to invest in Penglai in humid Shandong, as has another Bordeaux–Chinese joint venture. Great River Hill winery has been established with Laixi city with initial plantings of 16 hectares of Cabernet Sauvignon last spring and will be supplemented by a further 84 ha of other varieties while a winery is built. The main partner is Dr Karl-Heinz Hauptmann, co-owner of Bessa Valley in Bulgaria with Stephan von Niepperg of Ch Canon la Gaffelière in St-Émilion, with practical expertise from Marc Dworkin of Bordeaux. The first wines are expected in 2012. For a long time, the so-called Sino-French

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Global Wine Trends 09/04/2010 Weekly Update

Joint-Venture Dynasty Winery was envied as being capable of producing some unusually good Chinese wine, with a particularly admired Chinese winemaker. Wine distributors ASC were keen to acquire this property but the deal fell through and it has been acquired by the Taiwanese family that owns the neighbouring land. But the key to success in China is distribution. By no means all of these hopeful new wine producers have the networks in place for selling their wines. Only the giant companies COFCO with their Great Wall and premium brand Château Junding, Changyu, Dynasty and Dragon Seal can afford the sums necessary to buy their way in to mass distribution in the complex jungle that is the Chinese wine market.

http://www.jancisrobinson.com/articles/a20100331.html

The Information: The world’s leading wine markets

FINANCIAL TIMES, UK

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Global Wine Trends 09/04/2010 Weekly Update

03.04.10: The value of wine traded worldwide has more than doubled in under a decade to about $30bn. The UK, the US and Germany, were the biggest wine importers throughout 1998-2008, with the first two countries accounting for one-third of world wine imports in 2008. The UK’s per capita wine imports are about 300 times that of China, but the burgeoning Chinese middle class have made China the world’s fastest-growing wine importer, followed by Australia. Our graphic shows where selected main wine importing nations get their wine from. French wine dominates all the top markets, except for the US and Germany, where Italy has a stable leading position. In the rising markets, France recently overtook Chile as the main supplier in China, but lost its dominant position in Australia in favour of neighbouring New Zealand.

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Vive la France! Why the French wine industry is still bursting with life

THE DAILY MAIL, UK

03.04.10: I'm invigorated. Buzzing, in fact. I've just hopped off a plane after a whistle-stop tasting tour of south-west France, and while there's been much talk recently about French wine plummeting in popularity and needing to up its game to compete with the New World wines, I've just been sampling some of the most terrific wines I've glugged in months. The country's problem is largely due to the horse-trading, politics and rivalries that prevent regions from working together to really set out their stall and engage wine fans with their wares. But if you can get beyond that, there are some truly special unique and curious wines being produced in the south-west from grapes most of us have never heard of. Négrette is a great example, with a cherry tang that would appeal to lovers of northern Italian reds such as and Dolcetto. To find these wines you sometimes have to go off the beaten track or scour restaurant lists for the hidden gems. I loved Cuvee Don Quichotte 2006 from Chateau Le Roc in Fronton (£13.99, smilinggrape.com) - with a tangy cherry fruit and spicy edge thanks to a unique blend of Négrette and , it works a treat with roast duck or a gamey wildboar banger. You could also hunt down reds made from Braucol, or whites made from grapes such as Mauzac and Len de l'El from Gaillac - all off the wall, but in a good way. However, on my return to Blighty, I was delighted to find there are a surprising number of wines from this region on the shelves of our high streets. …

The number of Brits who've settled in the region is startling, with some hilltop villages almost entirely populated with expats. With Toulouse a short flight away, and stunning countryside around the wine-producing regions of Cahors, Gaillac, Jurancon and Madiran (as well as historic sites such as Albi Cathedral, which looks more like a fortress than a place of worship), it's an area steeped in intrigue, with stacks of discoveries to be made. And the wines there are crazy, unique, good value and rewarding - in particular the wines of Aurélie Balaran from Chateau L'Enclos des Roses, which are only available if you fly to Toulouse and hunt them down.

http://www.dailymail.co.uk/home/moslive/article-1262518/OLLY-SMITH-Vive-la-France- Why-French-wine-industry-bursting-life.html

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Global Wine Trends 09/04/2010 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.

Guala Closures launches tamper-evident screwcap

HARPERS, UK

07.04.10: Guala Closures Group has launched a tamper-evident screwcap to help provide a solution to wine and spirit counterfeiting. The closures producer, is the first to market the ROPP (roll on pilfer-proof) screwcap sporting a ROTE (roll on tamper-evident) band which spent a year in research. Marketing manager, Anne Seznec said: "Even if the concept is quite simple, the technology behind it certainly isn't. We've introduced a coloured plastic ring that appears in the narrow space between the glass bottle neck and aluminium closure once the screwcap has been opened." Seznec said a bespoke design service is available, the bottle pour will remain unaffected and the price difference will be negligible."Wine counterfeiting is a growing concern. Some experts estimate that up to 5% of fine wine sold today is fake. Traditionally, this market has shied away from alternative closures, but if they can help provide a solution to what is a very real problem then they have to be worth considering." Guala Closures expects an immediate take-up on this product and Seznec anticipates that there will also be interest from the fine spirits sector.

http://www.harpers.co.uk/news/news-headlines/8896-guala-closures-launches-tamper- proof-screwcap-.html

Red Wine Helps Cardiovascular Health, But Is It the Alcohol or Something Else?

WINE SPECTATOR, USA

31.03.10: Two studies show different results on the source of wine's heart health benefits Jacob Gaffney One of the longest-running debates on the potential health benefits of regular, moderate red wine consumption is whether the alcohol or the other components in wine are responsible for better health. A study from Italy claims that moderate consumption of alcohol, regardless of other compounds like polyphenols, can help prevent a repeat heart attack. But a new study from the U.K. suggests that the polyphenols found in red wine may help keep blood vessels in proper working order. Previous studies suggest that red wine is responsible for improved blood flow, which helps keep the heart and the body in better health, but whether that's due to polyphenols or alcohol, or both, is still unclear. A study from the Research Laboratories at the Catholic University of Campobasso, Italy, claims the alcohol, not the antioxidants, helps prevent another heart attack or stroke. Published in the Journal of the American College of Cardiology, the study looked at 16,351 people from eight countries who had previously suffered a heart-related

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Global Wine Trends 09/04/2010 Weekly Update injury, usually a heart attack. When the researchers compared their drinking habits to the recurrence of strokes, heart attacks, or any other deadly cardiovascular event, they found that moderate drinkers of one to two servings of alcohol per day had a 20 percent lower risk of recurrence compared to nondrinkers and heavier drinkers."Our research highlights another crucial issue: Drinking has not only to be moderate, but also regular," said co-author and university epidemiologist Licia Iacoviello in a statement. "Moderate consumption spread along the week is positive. The same amount of weekly alcohol, concentrated in a couple of days, is definitely harmful."The director of research at Compobasso warned against using the study as an invitation to start drinking, however. In a press release, Giovanni de Gaetano said that the study dealt with previously ill people and, therefore, is not necessarily translatable to the general public. A study conducted at the University of Surrey, England, published in the Journal of Human Nutrition and Dietetics, suggests that alcohol may not be the only factor, however. A research team found that people who drank a kind of simulated wine—alcohol mixed with red grape juice—during mealtime showed several markers of improved cardiovascular health. Those who drank just water did not see the same levels of improved blood flow. Those who drank just grape juice saw slightly lower benefits.To try to figure out the relationship between alcohol versus red wine compounds, the team had ten subjects consume a standard meal with a test drink on different occasions. The test drinks accompanying the meal were either water, red grape juice or red grape juice plus alcohol. Red wine itself was not used in any form, as de-alcoholized wine tends to still contain some level of alcohol, which might have marred the results. The simulated wine was red grape juice with alcohol added to create a 12 percent alcohol drink. Various measurements were taken to estimate blood flow. The flow-mediated dilation, a measure of the ease at which blood is pumped through the body, stood at 6 percent for those who only had water, 7 percent for those who had grape juice only and more than 8 percent for those who had the red grape juice/alcohol mixture. The scientists credit ingredients in the red grape juice for most of the benefits. "The conclusion drawn from this study was that non-alcoholic components present in alcoholic beverages have a potential benefit on vascular function—blood vessels," said Dr. Shelagh Hampton, senior research fellow on the faculty of Health and Medical Sciences.

http://www.winespectator.com/webfeature/show/id/42428

Wines from Greece Publicity Monitor

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

The Spirit of Benji: Toast spring with Greek martini

BURLINGTON FREE PRESS, USA

02.04.10: Given the choice between writing about Easter drinks (which conjures visions of cute, critter drinks such as a pink squirrel, chocolate rabbit or marshmallow egg) or Greek Easter, which has been explained to me as the greatest celebrated feast day in Greece, I chose the latter.

Not only am I deeply intrigued by the culture (I've been interested in Greece since I became a fan of Greek mythology), but Greece also has some very interesting beverages coming from the island. Although

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Global Wine Trends 09/04/2010 Weekly Update wine is slowly starting to gain speed, my first introduction to this area came from sampling a little Retsina. For those of you unfamiliar with this, it is a wine that comes from the ancient Greeks filling their amphorae (large jugs) with wine and sealing them with pine pitch. At that time, they believed the wine was better due to the pitch, not the fact that the pitch sealed the wine from air.

Today, Retsina is made from Savatiano grapes; a few pinches of pine pitch is added to the must, creating a unique flavor (in some folks minds). Try a bottle of Kourtaki next time you're up for something strange. …

http://www.burlingtonfreepress.com/article/20100402/COLUMNISTS06/4020324/- 1/LIVING06/The-Spirit-of-Benji-Toast-spring-with-Greek-martini

Blogosphere Monitor

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

Why is there so little Biodynamic wine in Bordeaux?

DR VINO, USA

07.04.10: One of the 2009 wines that generated favorable comments at last week’s en primeur tastings in Bordeaux was Pontet-Canet in Pauillac. Over on Twitter, there was some confusion about the status of their Biodynamic certification. So I asked Alfred Tesseron who sent in a clarifying response that follows after the jump. Given that Pontet-Canet is one of the rare properties in the Médoc (and Bordeaux, generally), I also asked the Twitterverse for their theories on why there isn’t more grape growing in the region done according to Biodynamics (a sort of homeopathic method guided by the celestial). Here are their <140 character replies, in chronological order of response:

@mrmansell: maybe bordeaux doesn’t need the gimmick to move wine?

@TimAtkin: It costs money. And would reduce profitability. Also it’s seen as Burgundian.

@JancisRobinson: In BDX commerce rules – v anti beard/sandal ethos. Plus, Atlantic rains bring extra problems. Ask A Tesseron at Pontet Canet.

@JossNOTJosh: Size of properties. 0.5 ha of Pommard much easier than 50 ha of Pauillac.

@waterintowino: maybe bordeaux wines arent as transparent and nuanced to show diff in biodynamics

@newbordeaux: I agree with Jancis and Joss – size of estates and climate here make it very difficult. But there are increasing numbers trying.

@kcoleuncorked: Because it’s not an area known for on-site, hands-on vignerons & small estates.

And the note from Alfred Tesseron of Pontet-Canet: We started biodynamie for 14 hectares in 2004, in 2005 we did 100% on 81 hectares (200 acres), which is the total vineyard of Pontet- Canet so also for the vintage 2006. In 2007 we had a strong pressure of mildew. I got scared

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Global Wine Trends 09/04/2010 Weekly Update that we might lose the crop and we used chimicals for one week. As soon as the pressure of mildew was over, we went back to biodynamie. From that experience, we learned and went back 100% for 2008 and also for 2009; We will receive sometime this year the certificate from ECOCERT. We are also with BIODIVIN.

http://www.drvino.com/2010/04/07/biodynamic-wine-bordeaux-pontet-canet/#more-6479

Trader Joe’s introduces new “Th. J.” wine; dubbed “ten buck Tom”

DR VINO, USA

01.04.10: Today, Trader Joe’s launches a value wine that riffs on history. The grocery store chain that brought the world Two Buck Chuck is debuting a wine in a weather-beaten bottle bearing the initials Th. J. and a $9.99 price tag. Various wine blobbers have dubbed it “ten buck Tom” after trying samples. Trader Joe’s is also colloquially known as “TJ’s.”“The bottle itself–a real collector’s item–is expensive since it is sandblasted for that aged look,” said Bill Cook, Director of Operations at Trader Joe’s. “The wine itself costs considerably more but thanks to widespread discounting in the industry today, we were able to source this from prime vineyards in the Languedoc region of France.”The inspiration for “Th. J.” was the contested wine sold at auction allegedly having belonged to Thomas Jefferson. Malcolm Forbes bought one of those bottles for $156,000 in 1985. These bottles were the centerpiece of the book, “The Billionaire’s Vinegar.”“Since those bottles are now considered at least questionable, we’re selling a wine that we know to be true and a heckuva lot cheaper,” Cook said. Lines have formed outside various Trader Joe’s locations as collectors and wine enthusiasts hope to score a bargain. …

http://www.drvino.com/

Is Hello Kitty wine the Joe Camel of wine?

DR VINO, USA

31.03.10: In a collision of two of the last decade’s most absurd wine trends, celebrity wines and critter labels collide in the form of a new Hello Kitty line of wines. Is this wine targeting minors, adding fuel to the fire of distributors who play the underage drinking card in the direct shipping debate? The wine’s marketer told LA Weekly: “My take on it is this: with over 60,000 Hello Kitty sku’s in the marketplace and at 35 years old now, she is definitely ready for more adult skewed products. I don’t think that the $15,000 dollar Hello Kitty handbags are aimed at children either.” What say you: is Hello Kitty wine the Joe Camel of wine?!?

http://www.drvino.com/

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Global Wine Trends 09/04/2010 Weekly Update

An Open Door To Real Wine Criticism

FERMENTATION, USA

05.04.10: Is it possible for a wine critic to engage the true art of criticism? I wonder about this because lately I've been exploring the state of criticism within various disciplines. It seems across the board, whether talking about film, dance, art, architecture or any other creative pursuit, the consensus on criticism is that it is in bad shape. The primary culprit in the demise of literary criticism, many believe, is the Internet and specifically the citizen or amateur critic. This makes sense. Prior to the advent of of the Internet and the ease with which it allows anybody and anyone to set themselves up as a commentator, one needed to impress the media gatekeepers that their voice was not only educated and a product of insightful thought, but that it could also be well represented in words. Editors needed evidence that the would-be critic could deliver something of substance. Today, there is no Editor to screen the voices that make themselves heard. There is only the requirement that effort needs to be made. And as we can see by a quick tour of Google, there is no lacking of effort.

Today, voices wishing to be heard as critics are so numerous as to overwhelm the senses. While "professional critics" in all these and other disciplines still exist, the number of lesser trained eyes has proliferated beyond counting.

If there are no more gatekeepers between the random thoughts of a dance lover or film lover and the eyes of those seeking information on the state of artistic endeavors, then the question that must ultimately be asked is this: What is a critic and what do they do?

Does this constitute film criticism: "* * * *"

What about this: "Awesome!"

Advocates of opening the gates and throwing aside the gatekeepers would answer, "yes!" and go on to celebrate the demise of the self important "critics" that for too long held so much power to shape public perception and the rise of the citizen perspective.

I would answer "No", however. In my view, real literary criticism (meaning using the written word to evaluate an article of human creation) demands substantial reflection, being well read in the subject upon which the critic is commenting, possessing a deep understanding of the history of stylistic movements and detours within the subject area, having a personal view of what constitutes greatness within the critic's subject area, and, finally, being able translate one's contemplation on the matter into a well formed essay. So then, is there such a thing as "Wine Criticism" today? Has there ever been? And if so, is it in decline?Steve Heimoff, the wine writer and reviewer for the Wine Enthusiast and blogger at www.steveheimoff.com" wrote this on the matter: "Wine criticism, on the other hand, is just, well, wine writing. It can never be as important as film criticism, because wine will never be as important as film in our self- consciousness of who we are."Steve's view doesn't so much answer my question as much as better defines the entry portal into criticism itself, positing that for something to be worthy of criticism it must have some sort of hold over the culture. Film most certainly is a critical part of America's cultural and intellectual heritage as is fine art, music, architecture and dance, for example. Not wine, says Steve. And yet, the number of reviews of wine that exist in print and on the Internet are massive in number. So despite the fact that wine may not be important in the self consciousness of Americans, it is important enough to enough of us to result in

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Global Wine Trends 09/04/2010 Weekly Update substantial review...but not reviews of substance.

The fact is, it just may be that the the creative process that goes into making wine and the resulting artifact of that creative process may not be interesting enough or intellectually substantial enough or consequential enough for inspire the kind of criticism that I describe above where "substantial reflection" is part of the definition of real literary criticism.

Is it even possible to use a wine to reflect on the current state of politics, culture or social interaction, as good criticisms in so many other disciplines has for so long? Of course it's possible. But it takes substantial intellectual heft to turn a sensation that begins in the nose and mouth into a coherent thought on the way of the world. And I honestly can't think of a single person (be they writer, blogger, or wine critic) who makes any effort to do this.

But wouldn't it be the fascinating and compelling writer that could imbibe a 1985 German Riesling and not only accurately describe its constituent parts as they relate to aroma, taste and texture, but also place the wine in an historic context, discuss its current place in the mode du jour of wine making, and offer some thoughts as to what that mode says about consumers and winemakers alike?

I'll grant that wine is a different kind of objet d'art than film, a play, a musical recording or painting. To begin with, the public uses wine far differently than it does the traditional realms of art. The way we use a film is to stimulate our mind and to pass time. More often than not, the way we use wine is to get drunk, quench our thirst or in an attempt to make something else taste better….

http://www.fermentation.typepad.com/

What The World Needs: The Wine Purse

VINOGRAPHY, USA

04.07.10: The above image was attached to a random Tweet from someone I've never heard of that I managed to snatch out of the ether when I saw the sentence "I'm totally getting me one of these here wine purses." To which I could only say, "AMEN!" What a concept! Sure, they could make the spout tuck conveniently away somewhere, and they've totally missed out on the buckle trend that's hot right now, but this is definitely a marvel of fashion and function nonetheless. And if it has some nice little inner pockets for those small frozen cold packs (plus enough room for a phone, a compact, a wallet, and a tube of lipstick) I call it genius. I wonder if it comes in suede?

http://www.vinography.com/archives/2010/04/what_the_world_needs_the_wine.html

Inventor of box wine, wineonomics, “sham” — sipped and spit

DR VINO, USA

06.04.10: Tom Angove died at the age of 92 last week. Never heard of him? Well, in the 1960s he had the idea of putting wine in plastic bag, placing that in a cardboard box, and tapping it like a keg. His son, then 15 years old, told him he was nuts.

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Global Wine Trends 09/04/2010 Weekly Update

Undeterred, Tom Angove commercialized the bag-in- box and forever changed how wine is consumed in Australia, Sweden and college dorm rooms. More recently box wine has crept upscale. Angove joins Robert Mondavi, Peter Mondavi, and Ernest Gallo as having lived well into his nineties. Maybe there’s something to resveratrol after all?

SIPPED: number crunching

Since we all have broken out our green visors and fired up TurboTax this time of year, we can now turn our attention to the economics of wine under $20 again. Jason Haas, general manager at Tablas Creek in Paso Robles, opens his books for us and walks us through his decision-making on whether a vineyard is worth developing to make a wine under $20. He considers the cost of land, labor, planting (dry farmed vs irrigated) to make his conclusion. If you like to wonk out about the business side, this post is a must! [Tablas Creek]

SPIT: Tart (and tact)

A surprising write up of the Mommessin Clos de Tart appeared recently: “The biggest disappointment was the 2006 Clos de Tart. Like so many red Burgundies from 2006 seem to be, it was underripe, excessively acidified, and almost textureless. It’s a sham, and it’s amazing how few people are willing to stand up and admit such stuff exists.”

http://www.drvino.com/2010/04/06/box-wine-inventor-clos-tart/

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.

Christie’s Sold Counterfeit Wine, Collector Koch Says in Suit

BUSINESS WEEK, USA

31.03.10: Christie’s International Plc, the London-based auction house, was sued by billionaire collector William Koch for selling counterfeit wine. The complaint was filed yesterday in Manhattan federal court. Koch, who lives in Florida, claims Christie’s has sold counterfeit wine “for many years.” “Because Christie’s has inspected so many wine cellars and has examined so many bottles of wine, it knows how to identify counterfeit wine,” according to the complaint. “Christie’s also has unique access to facts and circumstances that might call into question the authenticity of specific wines it handles.”Koch has filed other wine-related suits. In 2006, he brought a case against dealer and former pop music manager Hardy Rodenstock. The next year, he sued Scarsdale, New York-based Zachys Wine Auctions. In 2008, he sued the Chicago Wine Co. and Chicago-based Julienne Importing Co. and New York auction house Acker Merrall & Condit, accusing them of selling him fakes.“We have great respect for Mr. Koch,” said Toby Usnik, a spokesman for Christie’s, which is privately held. … http://www.businessweek.com/news/2010-03-31/christie-s-sold-counterfeit-wine-collector- koch-says-in-suit.html

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Global Wine Trends 09/04/2010 Weekly Update

Zoo sells tiger bone wine

SHANGHAI DAILY, CHINA

30.03.10: A SECRET trade in "tiger bone wine" in a northeast China zoo was revealed today, raising questions about animal parks in the wake of a nationwide uproar triggered by 11 rare who starved to death in Shenyang two weeks ago. The centerpiece of the Northeast China Tiger Park in Heilongjiang Province is a huge fish tank containing liquor with a tiger's skeleton inside, according to a local news Website today.Park officials sold the liquor for 780 yuan (US$114) for every 500 grams, according to the report. A park staffer said the 780 yuan liquor was the cheapest. The best kind cost 2,880 yuan a bottle, each containing a fraction of genuine tiger bone, the report said. It was sold as a miraculous medicine that could strengthen bones. The wine seller said the skeleton had been steeped in the liquor for at least three years, and the wine was good for treating rheumatism.Trading tiger parts was banned in China in 1993, although tiger bones have long been used in .

http://www.shanghaidaily.com/sp/article/2010/201003/20100330/article_432743.htm

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.

Naked Wines offers customers cut price wine by paying producers upfront

HARPERS, UK

29.03.10: Naked Wines has launched a new service that allows UK consumers to buy wines for less than they cost at the cellar door by paying for them upfront in the same way you might buy an airline ticket.The online wine retailer run by Rowan Gormley is giving UK wine drinkers the chance to source wine direct from producers and therefore cut out on supply costs. He said: "Between 40-70% of the price customers pay for wine (exc. taxes) is dead money... the cost of selling, financing, picking it up, putting it down again, packaging, storage, risk, wastage," explained Naked Wines founder, Rowan Gormley. "Our customers will be able to eliminate this 40-70%, by booking their wines in advance, just like an airline seat." Naked Wines claimed the move not only offered savings to consumers, but a risk-free new route to market for producers. Gormley explained: "If you look at Australia, for example, only a third of producers currently export their wines to the UK. The barriers to entry are formidable - with hundreds of upfront costs, and no guarantee of making any money."It's a gamble that most winemakers cannot afford to take - but by inviting winemakers to sell their wines before they incur any cost, Naked Wines is removing this barrier."The new service, which includes wines from the Barossa Valley, Marlborough and South Africa, coincides with a Naked Wines' website re-launch, featuring new ratings and recommendation functionality. To find out more about the new service, called Advance bookings, visit www.nakedwines.com/advancebooking

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Global Wine Trends 09/04/2010 Weekly Update

http://www.harpers.co.uk/news/news-headlines/8883-naked-wines-offers-customers-cut- price-wine-by-paying-producers-upfront.html

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