communications without intelligence is noise

Global Trends Weekly Update

created:

12.02.2010

Critical Publics | EDOAO

Global Wine Trends 12/02/2010 Weekly Update

Table of Contents

Table of Contents ...... 2

Global Market Watch ...... 4

Consumers shift to value for wine ...... 4 Survey indicates majority of wine shoppers would use self-service wine info kiosks ...... 5 Nielsen: "New Normal" Impacts Alcohol Beverages ...... 5 Corporates don't understand fine wine: Croser...... 6 First Scottish wine to be produced ...... 7 Harvesting Profits in Argentina's Wine Country ...... 7 Chinese consumers "waking up" to imported wine ...... 9 Indians 'want sweeter ' ...... 9 This or That: Organic vs. ...... 10

Global Industry Watch ...... 11

California Get Certified ...... 11 Changing State’s Law on Wine Sales ...... 12 Châteaux splash out – on their own wine ...... 13 Bordeaux 2009: will hype translate into sales? ...... 13 Bordeaux launches new carbon reduction system ...... 14 UK wine industry given EU boost ...... 15 NSW wine production overtakes SA ...... 15 One-third of Australia's vines 'should be grubbed up' ...... 15 Decision day looms for ...... 16 Billionaire Koch Expects More Fake-Wine Lawsuits in 2010 ...... 17 Sour ! Gallo victim of wine world's biggest con ...... 18

Wine Domain Catalysts Watch ...... 19

RM no shortcut to quality ...... 19 Divorce -style ...... 20 Why wine critics are useful ...... 21 Batting for Australia ...... 21 Hungarian Dry Whites? Forge Ahead ...... 22

Scientific Developments & Technological Breakthroughs Watch ...... 23

Middle class wine drinkers 'harming their unborn children' ...... 23 , Microwaves and Local Produce: Preventing Cancer Through Our Diets ...... 24

Wines from Greece Publicity Monitor ...... 24

Blogosphere Monitor ...... 25

The relationship between price and quality of wine ...... 25

Critical Publics | EDOAO Page 2 of 30

Global Wine Trends 12/02/2010 Weekly Update

Will the recession liberalize wine laws? What to watch ...... 26 Scottish Wine: Crimes and Misdemeanors ...... 26 Gewurztraminer and Discomforting Sounds...... 27

Peripheral Domains Intelligence ...... 27

Cork industry gears up for €20m campaign ...... 27 Airplanes Could Prop Up Bottle-Shocked Industry ...... 28 Can you turn a tomato into wine? ...... 28 Institute launches intern initiative ...... 29 Atkin's Observer column slashed ...... 29

Global Sustaining & Emerging Trends Digest ...... 30

Chinese wine drinking surges ...... 30

Critical Publics | EDOAO Page 3 of 30

Global Wine Trends 12/02/2010 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.

Consumers shift to value vintages for wine

TRICITY HERALD, USA

07.02.10: Consumers still love their Washington wines but have adjusted their palates to match their pocketbooks. Washington winemakers say they largely are thankful 2009 is a memory, but some believe one impact the nation's economic recession wrought on wine lovers may linger well into the new year. Growers and winemakers who gathered at the Three Rivers Convention Center in Kennewick last week for the Washington Association of Wine Growers annual meeting, convention and trade show say they generally are optimistic 2010 will be a better sales year than the last. Some believe consumer preferences, however, may have shifted permanently to so-called value wines, which affect small growers and winemakers more than larger ones. "The economy has hurt the sale of mid-priced wines," said Fred Artz, president and CEO of Artz on Red Mountain. "Everyone is looking for better wines, better bargains for their buck." Paul Beveridge, winemaker of Wilridge in Seattle, grows grapes in Naches Heights near Yakima. Last year was "terrible," he said, but he saw increased visits to his tasting room in January, lending some optimism about sales prospects this year. …

He then added with a chuckle, "The big fear in the marketplace is the consumer is going to get used to it." Washington produced 165,000 tons of grapes last year and is the No. 2 wine-producing state in the country, a distant second to , which crushed 3.44 million tons of wine grapes last year. But California saw its first decline in wine shipments in 16 years last year, to 236 million cases, according to industry sources. In Washington, wine sales at the state's roughly 300 state and contract outlets were $34 million in 2009, down from $37.3 million the previous year, said Steve Brunell, marketing manager for the Washington Liquor Control Board. The number of cases of wine sold in 2009 also declined to 432,000, down from 500,000 cases in 2008, Brunell said. The recession was in part to blame. Another reason could have been the proliferation of outlets, including large retail stores, now selling wine, Brunell said. Ste. Michelle Wine Estates owns or contracts more than 60 percent of the grapes in Washington. It saw the volume of its wine shipments in 2009 decline by 2.1 percent to 6 million cases, in part because and stores reduced their inventories and consumers cut back spending on wines above $30, said Ted Baseler, president and CEO of Ste. Michelle Wine Estates."Consumers were going to their wine cellars more frequently than they were to their wine stores," Baseler said.

Total revenue in 2009 was $403 million for Ste. Michelle Wine Estates, whose wineries include Columbia Crest in Paterson, Chateau Ste. Michelle in Woodinville and Snoqualmie Vineyards in Prosser, according to year-end financial statements of its parent corporation, Altria Group Inc. Baseler, who has three decades of experience in the wine industry, views consumer

Critical Publics | EDOAO Page 4 of 30

Global Wine Trends 12/02/2010 Weekly Update preferences last year for so-called value wines to be a cyclical occurrence -- not a permanent shift. …

http://www.tri-cityherald.com/kennewick_pasco_richland/story/892626.html

Survey indicates majority of wine shoppers would use self-service wine info kiosks

KIOSK MARKET PLACE, USA

08.02.10: More than 80 percent of wine and spirits shoppers would use a self-serve kiosk for product information such as tasting notes, food pairing recommendations and cellaring guidelines, according to early results in an ongoing survey being conducted by RetailCustomerExperience.com. The survey found that while 74 percent of shoppers have asked for assistance and more than 70 percent rated the service as "excellent" or "good," the majority of shoppers (82 percent) would "absolutely" or "probably" use such a kiosk for information and that more than 53 percent would "absolutely" or "probably" purchase a greeting card from the kiosk with this information on it. "With over 98 percent of respondents saying they have shopped for wine or spirits to give as a gift or take to a dinner party, a self- serve kiosk supports the need for accessible product information with the convenience of providing a greeting card all at once," said David Weinberg, president of the survey’s sponsor, Curiosk Marketing Solutions Inc. Respondents made their wine or spirits purchases in various store types, with the top four being privately owned or government-run specialty wine and spirits shops (95 percent), grocery stores (68 percent), winery tasting rooms (65 percent) and mass merchants (44 percent).

http://kioskmarketplace.com/article.php?id=23733&na=1

Nielsen: "New Normal" Impacts Alcohol Beverages

CSNEWS, USA

08.02.10: While there are recent signs that the U.S. economy has righted itself and is on a path to recovery, the road ahead faces significant headwinds that will make a true reversal protracted. And as economic pressures continue to impact consumers' buying habits into a "New Normal," retailers' alcohol beverage categories will be similarly shaped to take advantage of some opportunities and address shoppers' newfound frugality, according to the quarterly The Nielsen Co.'s Economic Advisor Beverage Alcohol Webinar.

The presentation -- by Danny Brager and Nick Lake, both vice president and group client directors for The Nielsen Co., parent company to CSNews Online -- focused on current economic indicators and the impact of those figures on consumer behavior, and how it shapes , wine and spirits purchases across several retail channels. "Consumer confidence is back from the steepest falls," said Brager. "It's up and down every other day, but it's not to where it would be in a good economy" in the 90 percent range. The economy also tops the list of consumer concerns, with job security and work/life balance filling out the top three. Additionally, while job losses aren't as bad as previous months, the U.S. has to create 200,000-250,000 jobs each month to truly recover, he noted. According to the Nielsen experts, the recession's bottom was reached in March and April 2009, but improvements have been very

Critical Publics | EDOAO Page 5 of 30

Global Wine Trends 12/02/2010 Weekly Update weak. "The Great Recession may have ended, but a human recessions continues," Brager said. "The U.S. mindset is still very much recession-based." He added the nation has the lowest confidence indices compared to the other 50 countries polled, and 90 percent of Americans believe we are in a recession. …

For the retail food channel, this means consumers are cutting back on out-of-home dining. A recent Nielsen study found 57 percent of consumers polled said they were visiting casual dining less often, and 55 percent said they were eating dinner at home more often. …

Beer, Wine and Spirits

Within the alcohol beverage category, the number of wine and spirits items handled in stores has been flat for the last few years, but there have been shifts in the vodka segment, and wine has seen a shift toward the $9-$15 bottle segment. And the average retailer added 11 beer items last year, most of which have been on the higher end -- crafts and domestic super premiums -- while rationalizing the flavored malt beverage segment.

The strongest wine price point for off-premise retailers in 2009 was $3-$6 on a 750-mililiter bottle equivalized basis. Another strong segment is $9-$15, while the $20 and up section was seeing a steeper decline, but has stabilized in the fourth quarter 2009.For pack sizes, consumers' emphasis on value is providing growth for 5- and 3-liter box wines. By origin, domestic wine is exceeding imports, with California and Washington wines performing well, according to Brager. Imports, while not faring well overall, see some positive influence from increases in Argentina and wines, while vintages from Australia and France are declining. http://www.csnews.com/csn/cat_management/article_display.jsp?vnu_content_id=1004065 920

Corporates don't understand fine wine: Croser

DECANTER, UK

10.02.10: Australia's biggest producers are to blame for the country's wine crisis because they just don't understand fine wine, Australian fine wine kingpin Brian Croser says. Speaking in Adelaide at the Australian Agricultural and Resource Economics Society conference, Croser savaged the top ten producers – which produce about 75% of the nation's wine. 'The biggest problem for the fine wine community of Australia is the negative and deteriorating image problem created for all Australian wine by the behaviour and travails of the branded commodity wine industry,' Croser said. The main problem was the big producers' 'misdirected' urge to dominate the fine wine sector as well as the commodity or bulk sectors. Croser, founder of the premium Petaluma and Tapanappa wineries, and Man of the Year 2004, attributed the current crisis to several planting booms during the past 40 years. 'The desperation of hot inland grape producers and branded commodity wine producers to retain relevance in the very competitive global market has dominated policy, publicity and the image of Australian wine for the past decade,' he said. But the major producers had also attempted to dominate the fine wine sector with much of key region plantings being either owned or contracted to them. 'Unfortunately and inevitably their appetite for fine wine grapes has not been matched with their ability to sell the wine,' he said. 'Their misdirected competitive

Critical Publics | EDOAO Page 6 of 30

Global Wine Trends 12/02/2010 Weekly Update urge to dominate the fine wine arena, as they rightly dominate the commodity wine arena, has precipitated a transfer of potential fine wine grapes to the commodity wine endeavour.' In his broadside, Croser said corporate culture, and the 'failure to recognize the essential differences between branded commodity wine and fine wine' was ultimately to blame.

http://www.decanter.com/news/news.php?id=294761

Also published:

Aussie producer bemoans bulk wine "dealers" - HARPERS, UK http://www.harpers.co.uk/news/news-headlines/8761-aussie-producer-bemoans-bulk-wine- qdealersq.html

First Scottish wine to be produced

THE DAILY TELEGRAPH, UK

07.02.10: Pete Gottgens, a top chef, is planning to grapes at his Perthshire later this year, and wants to use them to produce a crisp . He plans to sell the wine in his hotel and run classes in wine-producing, although he will turn his crop into vinegar if it is not good enough.Wine has even been produced in the Outer Hebrides on the Isle of Lewis, but never previously on a commercial scale north of the Border. However, scientists have predicted that global warming will create a more favourable climate for making wine in Britain, including Scotland. “If we have a warm summer, then we are in business. This will be the first harvest that we actually pick the grapes,” said Mr Gottgens, who was Nelson Mandela’s personal chef. “Cold is not the problem, the lack of sunshine is our biggest problem. If the wine is fit for consumption it will be served by the glass with our food. If it's not good enough we can make it into vinegar.” Mr Gottgens planted 48 vines four years ago as a trial, but wants to expand this to 800 vines once he knows which varieties work. The is managed by a wine maker from his native South Africa. He has used Bacchus and Madeleine Angevine vines, which produce white Riesling, in the grounds of the Ardeonaig hotel, on the banks of Loch Tay. Of encouragement has been 's industry, centred around 's Niagara region, where freezing temperatures contribute to the cultivation of the sweet . Mr Gottgens admitted Scotland will not be Europe’s next wine-growing region, but argued: “If we don’t try we will never know if Scotland can produce wine or not. Somebody has got to be first.” There are already 416 vineyards in England and 2,732 acres of vines under cultivation, an increase of 45 per cent in the past four years. Julia Trustram Eve, of English Wine Producers, said: “This is a new thing for Scotland and it will be interesting to see how it goes. …

http://www.telegraph.co.uk/foodanddrink/wine/7182584/First-Scottish-wine-to-be- produced.html

Harvesting Profits in Argentina's Wine Country

FORBES, USA

11.02.10: In 2004 Michael Evans bought a ticket from Los Angeles to Buenos Aires. He had suffered two recent traumas: the end of his six-year marriage and the failure of John Kerry's

Critical Publics | EDOAO Page 7 of 30

Global Wine Trends 12/02/2010 Weekly Update presidential campaign, on which he had slaved for four months. "I was physically and emotionally fried," says Evans, 44, up to that point a peripatetic business and political consultant. Time for a makeover. Evans restored his in Mendoza, in the foothills of the Andes. He discovered a new career: vine renting. His five-year-old company, Vines of Mendoza, manages a 1,046-acre Argentinean vineyard on behalf of casual winemakers who would rather do the quaffing and let others handle the pruning. Each owner pays Evans $55,000 an acre for a planted vineyard. Beginning in the third year, owners pay cost plus 25% for a slew of services. Pruning, mowing and irrigation come to $1,500 per acre; harvesting, $114 per acre. Evans will also ferment, bottle and distribute the wine, leaving owners to focus on fun stuff like choosing a name and designing a label. In a good year you can get 250 cases of from an acre of grapevines.

To entertain visiting investors and lure new ones, Evans converted an old Spanish Colonial house into a tasting room and built a wine store and , featuring 100 Argentinean varieties, in the Park Hyatt Mendoza. The surrounding area isn't shabby, either. In October Seattle technology executive Michael Brochu and his wife rode horses to survey their 5-acre plot tended by Evans. They stayed overnight in a nearby stone casita, ate steak at an Argentinean barbecue and put back a lot of wine. "I can't say I've had as much fun with any other investment," gushes Brochu. Evans is having fun, too. Last year Vines of Mendoza generated $3.7 million in revenue, down 30% from 2008. About 80% came from selling the plots.

Launching a wine empire was a huge leap for Evans, who had bounced around for 20 years working political campaigns, doing business development for a few technology startups and running the foundation arm of the trade group for the wireless-communication industry. When Kerry lost in 2004, Evans was renting an apartment in Fort Lauderdale, Fla. and most of his belongings were in storage. On a whim he met up with David Garrett, an old friend, in Buenos Aires. The pair took a wine-tasting class, and their instructor suggested they look up wine expert Pablo Gimenez-Riili, who gave them a tour of his family's vineyard in Mendoza. "A lightbulb went off," recalls Evans. "The combination made me think that Mendoza is Napa Valley 35 years ago."

Evans and Garrett rented a house for $400 a month and came up with a business plan. They decided to open a tasting room featuring Argentinean wines, a hotel and a mail-order business that would ship Argentinean wine from a Napa Valley, Calif. warehouse to buyers in the U.S. and Europe. In six months they raised $260,000 from family and friends. Evans kicked in $85,000 in savings and credit card debt; in lieu of putting up his own money, Garrett agreed to work for free while he ate into his savings. "I was all in," says Evans, who took Spanish lessons for an hour a day. "My advice is to invest enough of your own money that it hurts." Selling somebody else's wine was fun, but Evans really wanted to make his own. That would require capital, so the twosome worked the phones for up to 14 hours a day, mailing articles about Mendoza and Argentinean wine to prospects. "Raising money is hard, especially when you're sitting in a lawn chair in Argentina talking to people about a business that doesn't exist in a place they've never seen," says Evans. "We had to get through hundreds of noes before we could get to one yes." …

http://www.forbes.com/forbes/2010/0301/second-acts-wine-mendoza-malbec-planting- roots.html

Critical Publics | EDOAO Page 8 of 30

Global Wine Trends 12/02/2010 Weekly Update

Chinese consumers "waking up" to imported wine

CHINA WINES INFORMATION WEBSITE, CHINA

08.02.10: China's newly wealthy consumers are waking up to the pleasures of imported wine, according to a new report done by Wine Intelligence. We consumers in china say they enjoy the sophistication and feelings associated with drinking a good bottle of imported wine, and are finding more room for it in their every day lives, according to the Wine Intelligence China Landscape report. The report predicts that the number of Chinese consumers who could afford to buy imported wine regularly will rise from around 23 million in 2010 to 80 million in 2025. However international brands may miss out on this growth opportunity because consumers still find the process of buying imported wine very difficult. While international hypermarkets such as Carrefour and Tesco now carry a large range of imported wines, there is very little user-friendly information on the shelf or on the bottle to help guide to the right choice. As a result many Chinese consumers still stick to domestic wines, which they acknowledge are often lower quality than imported wines, but at least tell them, in their own language, what the product is and how it might taste. "I think most of the wine industry round the world would agree that Asia in general, and China in particular, represent a colossal opportunity for sales growth over the next 20-30 years," said Richard Halstead, COO of Wine Intelligence and project manager for the China Landscape report. "Yet the closer you get to the market, the more you see that global brand owners have a lot of work still to do, both in terms of distribution and product positioning, to really engage with Chinese consumers." …

http://www.wines-info.com/Newshtml/201002/1892010020810021635.html

Indians 'want sweeter wines'

HARPERS, UK

09.02.10: Importers need to research the taste profiles of what Indian consumers would like to drink instead of pushing European-style wines, Robert Joseph has said. Speaking to Harpers following a debate on the state of the Indian wine market at the Taste Food & Wine Conference in Mumbai, Joseph, chair of the Indian Wine Challenge, said: "European-style wines are not necessarily what the Indian consumer likes.

"You can't expect them to like Bordeaux."Indians tend to have a sweet tooth and wines with 11 grams of may be better suited.

"Maybe importers should find out their consumers' taste preferences and tailor brands accordingly if they want to grow their market share." But Nishant Kapoor, general manager of The Wine Society of India, disagrees: "I think it is too early to research taste profiles. The Indians currently drinking wine are aware of wine regions and brands, and France is still important to them for the status it holds."More than anything they need labels they can pronounce so as not to lose face when ordering a wine."Loic Dennulin, director of Sopexa India, confirmed that holds a 45% market share of imported wines by volume in India and Bordeaux is very active.He said some wineries such as Aimery Sieur D'arques and Tableaux wines, present at the Taste Conference, have developed wines "specifically targeted at the Chinese and Indian consumer." The wines have less tannin and are sweeter.Joseph also criticised the industry for making it the consumer's job to learn about wine."If you take music,

Critical Publics | EDOAO Page 9 of 30

Global Wine Trends 12/02/2010 Weekly Update people don't go to school to learn how to read music. …

http://www.harpers.co.uk/news/news-headlines/8753-indians-want-sweeter-wines.html

This or That: Organic vs. biodynamic wine

THE NEWS TRIBUNE, USA

08.02.10: Selecting the right year, grape and wine region used to be options enough for picking the perfect wine. But as more and more eco-friendly wines are finding renown among wine enthusiasts and more and more green claims are gracing bottle labels, wine drinkers who prefer a greener varietal can now add eco-certifications to their list of preferred characteristics. Like the difference between an Australian Shiraz and a Californian , eco-certifications for wine have subtle, yet meaningful, differences. Before picking out the perfect pairing for your next candle-lit meal, read on to find out which label, USDA certified-organic or Demeter USA certified-biodynamic, indicates the better bottle.

USDA ORGANIC

With 23,430,900 pounds of synthetic applied to wine grape crops in California alone in 2007, it's no wonder that growing numbers of wine drinkers now prefer a more natural grape . And an organic label on the bottle is a good indicator that the grapes are greener. USDA certified organic ingredients come from farms and vineyards that have refrained from using , pesticides, fertilizers or genetically modified seeds for at least three years. But since USDA organic standards allow the consumer product to come in varying shades of green, it can be difficult for the consumer to know just how natural the wine is. Here's a breakdown of the different claims you'll find on bottle labels:

- "100% Organic": The wine is made from 100-percent certified organic ingredients, processed without synthetic agents and contains no added sulfites; naturally occuring sulfite levels in these wines are between 10 and 20 ppm. The label will bear the USDA organic seal, with the phrase "100% Organic".

- "Organic": The wine is made with 95-percent certified organic ingredients, and contains no added sulfites. Winemakers must prove that certified organic ingredients aren't available for the remaining 5 percent of ingredients. The label will bear the USDA organic seal.

- "Made with Organic Grapes" or "Made with Organic Ingredients": The wine is made with 70-percent certified organic ingredients, and sulfites can be added up to 100 parts per million. The label cannot bear the USDA organic seal.

BIODYNAMIC

The brainchild of early 20th century Austrian philosopher Rudolf Steiner, biodynamic farming is a holistic approach to agriculture that views farms and vineyards as self-sustaining ecosystems, and the soil beneath them as a living organism. In biodynamic farming, the relationship between soil, plants, animals and astrological elements is emphasized. For instance, crops are often planted, pruned and harvested according to lunar cycles. While skeptics may question the effectiveness of farming according to the cosmos, biodynamic farms in the U.S. must pass the three-year transition-to- organic period required by the USDA's and cannot use synthetic pesticides or fertilizers. Furthermore, they must implement other sustainable farming practices,

Critical Publics | EDOAO Page 10 of 30

Global Wine Trends 12/02/2010 Weekly Update including energy- and water-saving techniques. Certified biodynamic wines may contain sulfites up to 100 parts per million. The Demeter USA logo on the label guarantees that the wine has been produced biodynamically.

WINNER: DUAL CERTIFICATION

Go with both labels where you can: wines sharing the USDA certified "100% Organic" and biodynamic certification will have low-sulfites and be cultivated according to the most wide-ranging sustainability standards. Otherwise, choose USDA certified "100% Organic" first to reduce sulfite content to a minimum. But when "100% Organic" wine isn't available, and the bottle only claims "Organic" or "Made with Organic Grapes," go for the biodynamic bottle, which is not only better for the planet, but may be better for the cosmos as well.

WHAT ARE SULFITES?

Sulfites are preservatives, made from diluted mined sulfur, that prevent oxidation and bacterial spoilage. Because sulfites are an ingredient that can occur in wine naturally, and mined sulfites have been used in viticulture for centuries, their inclusion in organic wine is an area of contention. While in the United States certified organic wine cannot contain sulfites, French and Italian organic standards allow them, and many U.S. winemakers argue that they should be allowed in organic wine. An American label indicating that the wine is "Made with Organic Grapes" is often a good indication that it contains added sulfites. Organic arguments aside, sulfites can cause allergic reactions in a small percentage of people. Sulfite allergy sufferers should look for wines bearing the USDA organic logo.

http://www.thenewstribune.com/soundlife/thriftyliving/story/1061712.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.

California Wineries Get Certified

WINES & VINES, USA

08.02.10: California’s vineyards and wineries can choose from a wealth of options to accredit their green credentials, and in recent weeks, five entities announced certification from three different agencies. Ancient Peaks Winery in Paso Robles earned for its 966-acre estate Margarita Vineyard at the southern extreme of the Santa Lucia Mountains. …

DeLoach vineyard is Demeter certified

The 17-acre estate vineyard and garden at DeLoach Vineyards, Russian River Valley, became one of only 64 wineries or vineyards worldwide to achieve Biodynamic certification. When France’s Boisset family purchased the property in 2003, “I knew that in order to make wine that fully expressed the great Russian River Valley , we would first

Critical Publics | EDOAO Page 11 of 30

Global Wine Trends 12/02/2010 Weekly Update need to restore the health of the land,” said Jean-Charles Boisset, president of Boisset Family Estates. The Boissets let the estate vineyards go fallow, then underwent the required three-year transition to organic growing and an additional year of Biodynamic-specific practices, including minimal dependence on external inputs and creation of natural biodiversity through cover crops and annual preparations. Biodynamic practices demonstrate growers’ commitment to “farming in parallel with the Earth’s natural cycles and from within the context of the principles of a unique living organism,” according to a company statement. …

Big producers choose CCSW

The new third-party certification program of the already established California Sustainable Winegrowing Alliance has signed on some heavy hitters in the California industry. The program is called Certified California Sustainable Winegrowing (CCSW).J. Lohr Vineyards & Wines, which has two wineries that produce 1 million cases per year from more than 3,000 estate vineyard acres in the Central Coast’s Paso Robles and Arroyo Seco, received CCSW certification for all of its winery/vineyard operations except the 33-acre Carol’s Vineyard in Napa Valley. To be eligible for this certification, participants must meet a set of 58 prerequisites that are among 227 best management practices in the Code of Sustainable Winegrowing Practices Self-Assessment Workbook; results are verified by a third-party auditor. Steve Lohr, executive vice president/chief operating officer, called the certification “another important step in our commitment to environmentally conscious practices and a validation of our hard work.…It is also important on a broader scale.…We are happy to be helping to expand the wine industry’s widespread sustainability movement.”

Sterling Vineyards in Calistoga also received CCSW certification. The 400,000-case per year winery owned by Diageo Chateau & Estate Wines, farms 741 estate acres in the northern Napa Valley, and was also certified this year as a Napa Valley Green Certified Winery. In Sonoma Valley, Kunde Family Estate also won CCSW credentials. The 100,000 case per year winery grows grapes on 750 acres of its 1,850-acre estate. Fourth- generation winegrower Jeff Kunde said, “We believe that third-party certification and public education are equally important in winning the trust of wine drinkers.” ...

Save on

Vineyards (and other agricultural enterprises) in California and other states that are preparing for organic certification may receive reimbursement of up to 75% of their transition costs, as much as $750 per year per applicant. The U.S. Department of Agriculture offers expense reimbursement for operations that receive organic certification on or between Oct. 1, 2009, and Sept. 30, 2010. Since organic certification takes a minimum of three years, the California Department of Food and Agriculture is encouraging growers who are almost there to apply for funding now. Growers in other states can learn how to apply at the National Organic Program Certification Cost Share information page. http://www.winesandvines.com/template.cfm?section=news&content=71224&htitle=Califor nia%20Wineries%20Get%20Certified

Changing New York State’s Law on Wine Sales

THE NEW YORK TIMES, USA

11.02.10: I have been calling for changes to the arcane laws of New York that govern wine and liquor stores like mine for years. I know it may sound counterintuitive that I support this

Critical Publics | EDOAO Page 12 of 30

Global Wine Trends 12/02/2010 Weekly Update proposal, but I know that the current laws don’t work for anyone. Small liquor stores have been declining for years, unable to compete with big liquor stores that buy heavily discounted products from our wholesalers. I’m not crazy about letting grocery stores sell wine, but I know that if the Legislature adopts the fair proposal in this year’s budget, I will be able to compete with the grocery stores on an equal footing. And I’ll be able to sell other items that go well with the liquor and wine I already sell. Plus, I would be able to join with other liquor stores to cooperatively buy wine and liquor (something that’s illegal now) so that I can compete with the big liquor stores, too. This proposal is fair, and I hope our legislators join in supporting it

http://www.nytimes.com/2010/02/12/opinion/lweb12wine.html

Châteaux splash out – on their own wine

THE INDEPENDENT, UK

12.02.10: Leading Bordeaux châteaux are scrambling to buy back their own wine from America to prevent a "fire-sale" by a dominant US trader from tipping the world market for luxury claret into free fall. The world's biggest single buyer of top-price Bordeaux wines – DC&E, a US subsidiary of the British drinks firm Diageo – has been liquidating its entire stock of the most prized châteaux at discounts ranging from 30 to 60 per cent.

Rather than allow the already suffering world market for the top clarets to "fall off the shelf", some of the biggest Bordeaux names are buying back their own wines for the first time in their history. Château Gruaud Larose has bought 2,700 cases of its own wine from 15 vintages going back to the early Nineties. Château Pétrus has also bought back a large part of the unwanted DC&E stock. "When it was official that DC&E was stopping everything... we were immediately in contact," Jean Merlaut, the owner of Château Gruaud Larose, told the French news agency, AFP. "I wanted to control the situation so that our other clients were not faced with competition from wines that were being sold off cheap." The decision by DC&E (Diageo Château & Estate Wines) to withdraw entirely from the top-dollar Bordeaux market is a potential calamity to a French luxury-wine industry, which is already suffering from the recession. DC&E has been the biggest single buyer of the most prized Bordeaux châteaux wines for more than 30 years. The company has sometimes been accused of pumping up the speculative bubble, which has seen the top claret prices rise tenfold since the mid-Nineties. The global economic crisis has brought a steep fall in the market for top Bordeaux in the US. … http://www.independent.co.uk/news/world/europe/chacircteaux-splash-out-ndash-on-their- own-wine-1897156.html

Bordeaux 2009: will hype translate into sales?

DECANTER, UK

11.02.10: As the Bordeaux 2009 campaign starts in earnest, there is no shortage of

Critical Publics | EDOAO Page 13 of 30

Global Wine Trends 12/02/2010 Weekly Update hyperbole - but some voices are calling for restraint. Berry Bros' director Simon Staples was unambiguous on his return from Bordeaux earlier this month. 'What is clear is that we are onto something spectacular again... but with an ever-increasing demand, especially from Asia, it won't be cheap.' Other UK merchants are more circumspect. One said, 'The Bordelais are excited enough about 2009 as it is, we don't want them to put prices up too much.' Speculation is already rife that the first growths will release at prices approaching 2005. Some observers are predicting up to €300 a bottle for the first tranche. The possibility of high prices at the tail end of recession is already worrying some: would buyers' pockets be deep enough? One negociant said, 'I have no doubt there will be huge demand for the wines, and we will be able to sell out in theory pretty quickly. But who will have the money when it comes to delivery? That is far less certain.' Union des Grands Crus director Sylvie Cazes told decanter.com that there were a number of 'very positive indicators in place' but added, 'this is going to be a difficult campaign to judge, because there are so many elements like the state of the economy to take into account.' One factor that many merchants are studying is the renewed presence of Asian and American buyers. It is understood they are booking their places at next month's tastings in large numbers – though the jury is out as to whether that will translate into major orders. Adam Brett-Smith at London merchant Corney and Barrow said there was Asian interest, but 'no stronger than it's always been.' At another major London merchant, Bordeaux Index, owner Gary Boom is buoyant. He expects to sell £25m en primeur this year – more than twice as much 2008 – 20% of it to private Asian buyers. 'For the first time private Asian buyers are going to pile in,' he told decanter.com, adding that his order book was fuller than in any record year. …

http://www.decanter.com/news/news.php?id=294851

Bordeaux launches new carbon reduction system

DECANTER, UK

13.02.10: Bordeaux is aiming to be 'world leader in sustainability' with the launch of an Environmental Management System. body the CIVB announced the initiative as part of its commitment to radically reduce carbon emissions by 2050. A 2008 study found that the Bordeaux wine industry produces 200,000 tonnes of carbon per year. CIVB director Alain Vironneau pledged to reduce this by 25% by 2020 and by 75% by 2050. The aim of the new system is to make it easy as possible for companies, whether chateaux or negociants, to reduce their environmental impact. The CIVB will provide training and documentation to help companies work out emissions levels, set up alert systems for reducing impact, and run efficiency audits. From this year, the CIVB will be running a pilot study with 20 companies. The intention is for them all to be certified with the internationally-recognised standard, ISO 14001. Elisabeth Galineau, director of the teaching estate Chateau Dillon, where the ISO certification has been in place since 2004, told decanter.com they use about a fifth of the water other properties use. 'We sort and recycle all waste, and there is a water treatment centre on site. This helps to ensure we use around one-fifth of the water that most chateaux do during vinification.' She added, 'The aim of this programme is for Bordeaux to be world leader in wine-making sustainability.'

http://www.decanter.com/news/news.php?id=294812

Critical Publics | EDOAO Page 14 of 30

Global Wine Trends 12/02/2010 Weekly Update

UK wine industry given EU boost

HARPERS, UK

10.02.10: English winemakers are to be given a £1.4 million boost with the launch of a training scheme to help them improve their viticultural skills and business flair. The EU-funded Wineskills initiative will see international “mentors” running workshops and masterclasses which anyone involved in the commercial production of UK wine can participate in for just £20. Jim Fitzpatrick, Minister for Food, Farming and the Environment, launched the project at Plumpton College last week when the four mentors who will run the training programme were announced. Australian winemaker Peter Hayes will be in charge of vineyard management; second generation English winemaker David Cowderoy will be still wine mentor, Jean-Manuel Jacquinot of the Jacquinot Champagne house will lead classes on and consultant Mike Paul will teach on marketing and business. There are around 569 vineyards in England, and the area under vine has increased by 50% in the past five years.

http://www.harpers.co.uk/news/news-headlines/8757-uk-wine-industry-given-eu- boost.html

NSW wine production overtakes SA

ABC NET, AUSTRALIA

09.02.10: A Bureau of Statistics report says New South Wales has overtaken South Australia as the country's largest wine-producing state. Brian Smedley from the South Australian Wine Industry Association says the state has been hit hard by reduced water allocations for irrigators and extreme heat during 2009. "The issue that we need to go forward with is to secure our water to ensure they we have sufficient quality and quantity of water," he said. "I think we also need to ensure that we have and are exploring new market opportunities so that we have actually a place for this wine to be sold and for sales to match out production." Mr Smedley says it is hard to predict whether South Australian production will keep declining.

"At this stage that's probably hard to tell, I mean because we expect a lower grape crush this year even because of the amount of grapes that is coming through for our crush this year we probably expect less than we had last year," he said."I guess it will just depend in terms a whole range of variables right leading through to this how much water's available next year etcetera." The Bureau later conceded its figures were wrong.

http://www.abc.net.au/news/stories/2010/02/09/2813965.htm?section=justin

One-third of Australia's vines 'should be grubbed up'

DECANTER, UK

10.02.10: A leading academic has claimed Australia needs to reduce its vineyard area by as much as 30%. Speaking at the fifth Academy of Wine Business Research conference,

Critical Publics | EDOAO Page 15 of 30

Global Wine Trends 12/02/2010 Weekly Update

Professor Larry Lockshin of South Australia University said the Australian wine industry 'must remove' 20-30% of its plantings if it wanted to achieve supply-demand balance. The claim follows a report by industry body, the Winemakers' Federation of Australia, which admitted the industry is producing 20 to 40m cases more than it is selling and 'at least 17% of vineyard capacity is uneconomic'. While inland bulk-producing areas have been hardest hit, Lockshin told decanter.com 'Even in the Barossa, if your grapes are not being bought by the top-end producers, there's not much chance of making a decent living. It's death by attrition.'

He predicted growers and managed investment scheme vineyard owners would start abandoning vineyards, lacking the money to replant alternative varieties or different crops. He also claimed Australia was in danger of making the same mistake of selling at low cost in new markets and damaging its reputation in the long-term, as seen in the UK and US. 'The issue is if 90% of your wines on the shelf sell under a price that cheapens your image. 'We are in China and doing quite well in top restaurants but in the lower end shops we are also seeing cheap wines from Australia. It will be hard to change that low-cost image.'

http://www.decanter.com/news/news.php?id=294808

Decision day looms for Australian wine

DRINKS INTERNATIONAL, UK

05.02.10: Australian wine producers are facing the prospect of their industry contracting by as much as 25% The Australian wine industry is facing the prospect of reducing volumes by approximately 25% if proposals by Australia’s various statutory bodies and non-governmental organisations representing the industry, are accepted. Capacity among producers equates to around two million tonnes while demand currently runs at 1.5m tonnes. As an industry insider observed: “There is a significant overhang and Australia needs to put some ‘tension’ back into its demand and supply chain. It needs to look at sustainable dollars per tonne not production: tonnes crushed.” Wine Australia boss Paul Henry was in London this week for the annual tasting and he outlined the situation and process to Drinks International. Negotiations, given the acronym “WRAA” (Wine Restructure Action Agenda) have taken place between the Australian Wine & Brandy Corporation (AWBC) which is the statutory body; the Winemakers’ Federation (WFA), which the industry’s policy making and lobbying body; the Wine Grape Growers’ Association (WGGA), another industry representative body; and the Grape & Wine Research Development Council (GWRDC), which is a statutory body representing the likes of the Australian Wine Research Institute and university bodies running winemaking courses.

The chairmen and chief executives of these various bodies have been looking at all aspects of the Australian wine industry from the impact of droughts and water access, to demand from existing markets and anticipated growth from emerging markets. … http://www.drinksint.com/news/fullstory.php/aid/1330/Decision_day_looms_for_Australian _wine.html

Critical Publics | EDOAO Page 16 of 30

Global Wine Trends 12/02/2010 Weekly Update

Billionaire Koch Expects More Fake-Wine Lawsuits in 2010

BLOOMBERG, USA

08.02.10: I think of the past 10 years as the counterfeit-wine decade. While the number of fakes began exploding in the mid-1990s, the problem was only widely acknowledged a few years ago and promises to heat up even more in 2010, partly thanks to billionaire collector William I. Koch. In the past 3 1/2 years, Koch, founder and president of Florida-based Oxbow Group, has sued auction houses, collectors, a retailer and a wine importing company, saying all of them sold wines to him that turned out to be fakes. “The sun is shining here,” he said by phone from his Palm Beach home, where he keeps his 40,000-bottle cellar. “But my lawsuits are grinding out at a slow pace.” All have yet to come to trial. Some allegations of auction- house fraud and negligent misrepresentation were dismissed because the sale catalogs contain broad disclaimers that the wine is auctioned “as is” and Koch didn’t inspect the bottles before the sales, according to court documents. Other claims of his remain to be decided. No court has yet judged any of the wines fake. The collector said he has rejected offers from several defendants to return his money -- he wants to force auction houses to change the way they do business, obtain punitive damages, and even see a couple of people go to jail.

“I’m gearing up to file more in 2010,” said the 69-year- old, sounding charged up at the prospect. Koch’s litigious history includes lawsuits against his brothers over a 20-year period.

Experts Search

Altogether, Koch’s complaints include more than 40 bottles for which he paid almost $1 million. He estimates he’s spent about $5 million in legal fees and on gathering evidence. Two wine experts he hired turned up several hundred suspect bottles in his own collection, he said. That works out to about 1 percent of Koch’s 40,000 bottles. “Every wine I’ve bought at a charity auction is fake, I think,” he said, chuckling. “I haven’t decided what to do about that.” Coordinating all this is Koch’s representative Brad Goldstein, who says he’s contacted other collectors, asking them to work with Koch. “I can think of four CEOs whose cellars are inundated with fakes,” Goldstein said. “But we’ve been told they don’t want to get involved.” It’s easy to see why. Prominent people have reasons to maintain their privacy. As a consequence, wine industry insiders can only guess at how big the problem is. “Counterfeits have become more sophisticated in the past decade,” said Jamie Ritchie, Sotheby’s senior vice president of wine, North America. “Distribution is broader. In the 1990s we saw mostly Bordeaux. Now it’s Burgundy, too.” …

Gray Market

Lazar said he sees fewer counterfeits at high profile retailers and auction houses, but that they flourish on the so- called gray market, where brokers with little or no stock buy and sell wines held by others. These days everyone in the fine-wine business has at least one fake-wine story. Everett Love, managing partner of Carlsbad, California- based RL Liquid Assets Llc, bought 6 bottles of 1982 Chateau Lafite-Rothschild last year from a Los Angeles broker who’d bought it from another broker in the Bay Area. Love sent them to a client in China, who pulled off the loose capsule on a bottle and discovered the cork was stamped 1981, a vintage that sells for a quarter of the price of the 1982. Love set about getting his money back and trying to track down the source of the wine. “I believe there is a network in the Bay Area faking wine,” he said in a phone interview. “The joy and anticipation

Critical Publics | EDOAO Page 17 of 30

Global Wine Trends 12/02/2010 Weekly Update has been sucked out of old, rare wines like 1921 Chateau Cheval Blanc,” said Robert Schagrin, managing partner of New York’s Crush Wine company, said in a phone interview. I told him I’d never tasted that vintage. “Neither have I,” Schagrin said. “Though I drank a bottle that had the label.”

http://www.bloomberg.com/apps/news?pid=20601088&sid=aRiRaO4WzEF0

Sour grapes! Gallo victim of wine world's biggest con

THE INDEPENDENT, UK

07.02.10: E&J Gallo's 2007 Red Bicyclette was said by the company to have "the dark fruit aromas and flavours of black cherry and ripe plum". But when a French court case concludes in 10 days' time, the American winery may experience rather different sensations. The bouquet of a smelly deal, perhaps, or the aftertaste of very sour grapes. For Gallo – and its customers – may well have been diddled by what is alleged to be one of the biggest cons ever perpetrated in the murky and uncertain world of wine. Thirteen people including executives from two wineries, five co-operatives, négociant Ducasse and conglomerate Sieur d'Arques have been charged with selling Gallo millions of dollars' worth of wine which was labelled pinot noir, but which, if truth be allegedly told, wasn't. The quantity involved is staggering – 3.57 million gallons, enough to fill 16 million bottles, or 460 oil tankers. The arrests of the French wine trade folk followed an investigation that lasted more than a year, according to online editions of the wine magazine Decanter. Between 2006 and 2008, Sieur d'Arques allegedly sold 135,000 hectolitres of wine labelled pinot noir, but was, says decanter.com, actually wine made from much less expensive grapes. Gallo apparently paid about €4m (£3.5m) for the privilege.

Investigators became suspicious after realising that the amount of pinot noir being exported from the Languedoc-Roussillon area far exceeded historic levels. France's public prosecutor has called for prison terms of up to 12 months in jail for those found responsible for the deception as well as hundreds of thousands of euros in fines for the companies involved. According to court reports in La Dépêche, the Toulouse newspaper, jurors in Carcassonne have heard how local wine dealer Ducasse acted as an intermediary between eight grape suppliers and the major winemaker Sieur d'Arques, which then allegedly sold on in incorrectly labelled bottles to Gallo in 2006 and 2008. … Gallo's winemaking notes says the 2007 Red Bicyclette Pinot Noir was sourced from several areas within the Languedoc-Roussillon region in southern France. Susan Hensley, a spokeswoman for the California-based winery said in an email to Reuters: "Our contractual agreement with our supplier guarantees all wines supplied meet French regulations including the pinot noir in question. At this time it is still a question for the French courts and French and US regulatory authorities to determine whether the wine in question was misrepresented to us. When more information becomes available to us from the authorities we will move quickly to ensure that the trust people place in our company and our wines is not put at risk." If the defendants are found guilty, then the 2010 Pinot Noir Affair will be laid down in the capacious cellars of vintage cases. Already gathering the patina of dust essential to all fine wine scandals are: a constituent of antifreeze added to (1985); Italian table wines made of water, methanol, plus the magic ingredient of a little real wine for flavour (1986); the great mislabelled Bordeaux Case of 1989;

Critical Publics | EDOAO Page 18 of 30

Global Wine Trends 12/02/2010 Weekly Update fortified with green peppers and synthetic methoxypyrazine (2005); and sugar added to (2007).

http://www.independent.co.uk/life-style/food-and-drink/news/sour-grapes-gallo-victim-of- wine-worlds-biggest-con-1891748.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.

RM champagne no shortcut to quality

JANCIS ROBINSON, UK

06.02.10: In champagne's major export markets, which, now I come to think of it, coincide rather neatly with those countries where my newspaper the FT is most read, the current fashion is for growers' . The champagne business has long been a delicate balance between the growers who grow the grapes and the big houses who buy them and turn them into raw material for the brands they have so assiduously developed and marketed over the last century and more. But today's increasingly sophisticated consumers have become rather bored by big- volume brands carrying famous names whose most trumpeted virtue is consistency. They have accordingly been branching out into pastures new: much smaller volume wines, often with more individuality, made by the growers themselves.

It is delightfully easy to spot the source of a champagne from its label. Virtually all of them carry a numerical code prefixed by two letters. NM stands for négociant- manipulant, one of the big houses. RM stands for récoltant-manipulant, a grower. CM, incidentally, indicates that the wine was made by a co-operative, some of which, such as Union Champagne/De Saint Gall, which supplies so many of the UK supermarkets' own labels, have established a fine reputation. MA is the prefix for buyers' own brands, many of which come from a single huge supplier.

There is something immediately attractive about buying at source. It chimes with our modern quest for traceability and our desire to commune with the earth as directly as possible (see, for example, all those industrialists and tech billionaires who pour their hard-earned cash into a newly acquired vineyard or cellar). Importers such as Terry Theise in the US and Vine Trail in the UK have made a speciality of selecting some of the finest champagne growers to adorn their lists.Along the way is the implication that the big houses' champagnes are overpriced and possibly second best anyway. I am a huge fan of some of the best of the champagne growers' wines, and I also believe they can offer much better value than many of the wines offered by the big houses which have such substantial teams, plant and marketing budgets to sustain.(It was always said, for example, that a member of the Krug champagne family absolutely had to travel first class.Anything else would give the wrong impression.I wonder whether this has survived this old family house's transition into the maw of LVMH? I have yet to receive an answer to my enquiry.*)

A recent blind tasting of 64 champagnes in which growers' champagnes were mixed

Critical Publics | EDOAO Page 19 of 30

Global Wine Trends 12/02/2010 Weekly Update up with wines from some of the most famous houses in Champagne demonstrated however that growers' champagne is not necessarily superior.

London wine brokers Fine & Rare Wines organised this revealing comparison. They had observed the fashion for growers' champagnes and wanted to add some to their list.

But perhaps the most significant result for me was the number of growers' champagnes that were not particularly well made. Some of them seemed rather coarse and simple to me. Meanwhile the big houses' champagnes showed pretty well. My top score (with apologies for reducing something as magical as champagne to numbers) was 17.5, which went to three growers' wines. But of the 15 champagnes I scored 17, six of them were from the houses. So although the houses' wines represented only 22% of the total tasted, they represented 35% of all those wines scoring 17. Below I have included Fine & Rare's equivalent guide price per bottle in their current offer, but you will have to place an order worth at least £200 pre taxes and may have to wait quite a while for stock to arrive.

http://www.jancisrobinson.com/articles/a201002011.html

Divorce Chianti-style

JANCIS ROBINSON, UK

10.02.10: At least this is how the Consorzio of Chianti Classico yesterday announced the modification of the 1992 law that separates Chianti Classico from straight Chianti. Or, to quote Giuseppe Liberatore, the Consorzio’s director, in its press release published just days before its most important annual event, the en primeur tasting in Florence showing the latest vintages of its members: ‘cutting an umbilical cord between two distinct wines ... a fact that can definitely be called historic’. The Consorzio has devoted the best part of its history to defending the borders of the ancient classic production zone, the hills between Florence and Siena, not only against counterfeit but even more so against legislation, which tried, successfully, to enlarge the production zone many times to include large swathes of land which were never part of the classic area but were nevertheless able to capitalise on the famous name. After years of questioning these doubtful laws, at least from a quality point of view, the Consorzio seems to have finally got its way: the modification decrees that within the Chianti Classico production zone, ‘it is prohibited to plant or declare in grape-growing records vineyards for Chianti DOCG. In the production zone for Chianti Classico wine it is prohibited to plant and inscribe vineyards in the Chianti DOCG register or produce Chianti and Chianti Superiore wines’. This means that vineyards within the Classico zone can be used for the production of Classico wines only, and not used for or declassified to plain Chianti, a designation which comes with a set of less stringent rules, the most important being the much higher yields allowed. In a country that is notorious for its stifling bureaucracy, perhaps the introduction of this modification was facilitated by falling grape and bulk wine prices, which only last year the Consorzio tried to halt by introducing a regulation which forces its members to hold on to 20% of their total production for 24 months longer before putting the wine on the market. This block on sales seemed a well-meant, if perhaps weak, measure in the face of the fact that most producers produce a Riserva wine, which can only be released 24 months after the vintage. This time the new modification seems to go much further, although at this stage it is unclear to what extent existing vineyards within the classic zone but declared for the production of straight Chianti are excluded from the new rule.

Critical Publics | EDOAO Page 20 of 30

Global Wine Trends 12/02/2010 Weekly Update

http://www.jancisrobinson.com/articles/a201002093.html

Why wine critics are useful

THE GUARDIAN, UK

09.02.10: It's open season on wine writers at the moment. If you believe people like Oliver Thring and Tim Hanni, we are misguided elitists talking to one another rather than consumers, prejudiced snobs whose evening tipple is more likely to be Château Lafite sipped from a hand blown Riedel glass, than a bottle of Chilean . The reality is rather different. As a professional wine writer, educator and Master of Wine, I taste something like 1,000 bottles a month and they vary enormously in quality. At every level, be it classed growth claret or a supermarket three for £10 deal, my job is the same: to sift the good from the bad, the great value from the over-priced. Four-fifths of what I sample isn't worth recommending. I'm not so much a gatekeeper as a vinous night club bouncer. We used to pride ourselves on the quality of the wine sold in this country. Today, thanks to the major supermarkets' desire to grapple for space in the bargain basement, there's far more rubbish around. Experienced wine critics are arguably more essential in a recession than ever. Increasing numbers of people are eating at home rather than in restaurants and spending more on a single bottle of wine for dinner. The higher the price, the more they need advice and reassurance. I'd be the first to agree with Tim Hanni that everyone's palate is different. But I also think that is something you need to practise. Some people are innately brilliant at assessing wine, but most of us have to work at it to acquire reliable, trustworthy palates. …

If an Observer reader writes to me to complain about the quality of a wine I have chosen, I take the complaint very seriously. I only ever recommend wines that I would buy and drink myself. Obviously, I hope you share my taste, but if you don't I won't take offence. I'm not a wine snob either. I would never argue, as Hanni suggests we wine writers do, that "certain wines are simply the best, and that anyone who disagrees is stupid, unsophisticated or both". Drink what you want, when you want, I say, as long as it's not White . Personally, I like nothing more than to come across a cheaper alternative to a classic wine style. Wine can be a very complicated subject, covering geology, climatology, plant biology, bio-chemistry, aesthetics, history, economics and sociology among other things, but in the end it comes down to a simple question: do I like what's in my glass? If a helps you to say yes more often than no, he or she is doing a good job.

http://www.guardian.co.uk/lifeandstyle/wordofmouth/2010/feb/09/wine-criticism

Batting for Australia

THE GUARDIAN, UK

07.02.10: You know things are bad when the Aussies, normally the most chipper of nations, start grouching about their lot. "We're stuffed, mate," one of their number told me recently, having voted with his feet by joining an company. How stuffed, exactly? On a taxidermist's scale of one to 10, I reckon we're talking a six or a seven, and quite possibly worse. A combination of drought, falling exports and massive overproduction, equivalent to an estimated 360m bottles of unwanted wine, have burst the

Critical Publics | EDOAO Page 21 of 30

Global Wine Trends 12/02/2010 Weekly Update

Australian bubble. Without the heatwave of the past few years, which has limited yields in the vineyard, things would arguably be even worse. As the 2010 harvest approaches, some growers are talking about leaving vineyards unpicked or, as happened in the late 1970s, turning their grapes into fruit muffins. Tellingly, Australia probably needs to uproot 20% of its vineyards just to balance the books. In the UK, an epidemic of cheap deals on popular brands such as Hardy's, McGuigan, Lindemans, Wyndham Estate, Wolf Blass and Rosemount has damaged the image of mass-market Australian wine. There have been so many "half-price" promotions, where the full headline price bears no relation to the quality of the booze in the bottle, that consumers don't know what the wine is truly worth.

Things don't look terribly rosy for the country that has defined the revolution over the past two decades, but talk to winemakers in France, whose share of the market has fallen off a cliff, and Australia's plight doesn't seem quite so dire. It's worth remembering that one in five of the bottles we drink still comes from Australia. , Semillon, Riesling, Shiraz and Cabernet Sauvignon from Down Under still sell by the containerload.

I think Australia will come through this crisis in decent shape. The reason for my optimism is that it's making better wines, at every price, than at any time in its history. More to the point, Australia is increasingly focused on regional expression rather than multi-state blends from South Eastern Australia, a vast appellation which covers a third of the country. The French word terroir (a sense of place) used to be mocked in Australia as an excuse for bad winemaking, but not any more. Belatedly, the Aussies have become terroiristes. …

http://www.guardian.co.uk/lifeandstyle/2010/feb/07/tim-atkins-wine-australia

Hungarian Dry Whites? Forge Ahead

THE NEW YORK TIMES, USA

08.02.10: COMFORT zone? Believe me, I understand. At restaurants, I’m always fighting the impulse to order a beloved dish again and again. I have to struggle against sticking to customary territory in music, books and, especially, in wine. The desire to drink nothing but Burgundy, for example — assuming you can afford such a desire — stems certainly from the titillating satisfaction derived from the wine. Like a laboratory rat touching a button wired to the pleasure center of the brain, you want to repeat the experience endlessly. With time, the quest broadens to the point where you want to learn as much as possible about this complex, nuanced region. People who are just beginning to grasp wine naturally want to dive deeply into the pantheon regions. They have read such ardent descriptions of the thrills of these wines that they are no longer willing to settle for vicarious enjoyment. Again, with experience, comes the desire to focus and learn. Who can argue with the notion that one can lose oneself forever in the wines of ? Yet no matter how alluring the desire to fixate on a particular set of wines, experimentation has great virtues. Practically speaking, wines from lesser-known regions are often cheaper. But more to the point, drinking wine with blinders on can deprive you of unexpected, deeply satisfying, even thrilling bottles. Case in point: the dry white wines of Hungary. Who even knew Hungary made dry white wines? The country is best known for aszu, gorgeously honeyed, lavishly sweet wines of such balance and precision that they can accompany savory meals. The history of this legendary wine stretches

Critical Publics | EDOAO Page 22 of 30

Global Wine Trends 12/02/2010 Weekly Update back centuries, and most likely, near the beginning, the wines were more dry than sweet. Now, in the post-Communist age, Hungary is making dry whites again, and some of the wines are stunningly distinctive and delicious.

It was by chance last year, at Terroir, the wine bar and merchant in San Francisco, that I first tried the 2006 dry white from Kiralyudvar, a winery that I knew made wonderful sweet wine. The ’06 was only the second vintage of this dry white, made mostly of , the region’s leading grape, yet it was extraordinary, with a gorgeous aroma of herbs and flowers, and the luscious texture that comes from fermentation in barrels.The wine was absolutely dry and balanced, with the waxy, lanolin quality that I find so alluring in good white Bordeaux. Yet it had an indelible stamp of sweet richness to it, as if botrytis, the fungus that so beautifully intensifies the flavors of Tokaji aszu — and , for that matter — had somehow insinuated its way into this wine as well, though I knew it hadn’t. I’ve had this wine several times since, and have not been let down. Moreover, it has spurred a fascination with dry whites from Hungary that has led to a few highly satisfying bottles, a number that is small because production of dry whites is still in its infancy in Tokaj, and few make it to the United States. …

http://www.nytimes.com/2010/02/10/dining/10pour.html

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.

Middle class wine drinkers 'harming their unborn children'

THE DAILY TELEGRAPH, UK

10.02.10: In some cases women may damage their unborn child before they even realise they are pregnant, doctors said at a conference. Drinking during pregnancy can cause foetal alcohol syndrome, which can range from mild behaviour problems, to facial distortion, growth retardation and low IQ. It is thought around one in 100 children in Britain suffer with some form of the condition and cases may be rising as women are drinking more. Inconsistent messages about what is safe to drink during pregnancy has not helped the situation as some women use this as a reason to continue drinking, believing that scientists cannot agree, it was warned. Dr Raja Mukherjee, consultant psychiatrist and expert in foetal alcohol syndrome, said the science is not clear if there is a safe level to drink that will not harm the baby so the only guarantee is not to drink at all. "That doesn't mean all women who have the odd drink are harming their baby." He said: "In the past men would have gone out and drunk beer and women would drink very little but now people are bringing home a bottle of wine and drinking it between them at home. If they finish the wine that is ten or 11 units between them which is close to a binge for a woman. "If they do that two or three times a week, these women are in the high risk group. They are actually putting their babies at risk before they even know they are pregnant, in some cases." Dr

Critical Publics | EDOAO Page 23 of 30

Global Wine Trends 12/02/2010 Weekly Update

Mukherjee was speaking at the National Organisation for Foetal Alcohol Syndrome conference in London. He said one of the most severely affected children he has seen was born after a wealthy woman whose children had grown up began going out more and binge drinking. At first she thought she was going through the menopause and only discovered she was pregnant at five and a half months when she had been drinking throughout. Susan Fleischer, executive director, said: "This is a condition that not only affect those whose mothers drank heavily during pregnancy, there is growing evidence of an effect at even low levels. "Women should not binge drink for their own health but also for the health of their child. Most women stop drinking or cut down when they know they are pregnancy but for some, the damage may already have been done." Department of Health advice is that women should not drink at all when trying to conceive or when pregnant. If women chose to drink they should not have more than one or two units once or twice a week and not drink enough to feel drunk.

http://www.telegraph.co.uk/health/healthnews/7196991/Middle-class-wine-drinkers- harming-their-unborn-children.html

Red Wine, Microwaves and Local Produce: Preventing Cancer Through Our Diets

SCIENCE DAILY, USA

09.02.10: Eating a balanced diet and preparing your food in the correct way may be your best defense against developing cancer, according to top cancer researchers Professor Attilio Giacosa and Professor Jaak Janssens. In two interviews published on the LWWPartnerships website this month, Prof Giacosa explains how a preventative diet boosts the body's natural defenses, while Prof Janssens discusses the latest developments in breast cancer prevention. …

Prof Giacosa also advocates the consumption of a glass or two of wine every day, as it contains "all the active principals of fruit, especially polyphenols -- a component of great significance because even the very colour of wine, the colour red or ruby, the flavours, the fragrances, are tied to specific compounds linked to polyphenols, themselves extremely beneficial to our organism." Red wine is said to be more beneficial than white, though Prof Giacosa warns that, as with any food, moderating your consumption is key to reaping the benefits. …

http://www.sciencedaily.com/releases/2010/02/100209124459.htm

Wines from Greece Publicity Monitor

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

N/A

Critical Publics | EDOAO Page 24 of 30

Global Wine Trends 12/02/2010 Weekly Update

Blogosphere Monitor

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

The relationship between price and quality of wine

ANN ARBOR, USA

08.02.10: In the wine business, buyers are inundated with claims of wines that over deliver, offering exceptional quality in comparison to other wines at the same price. Especially in today’s economic climate, finding wines of this kind is increasingly important. The average wine consumer is constantly looking for the next step in quality without a corresponding increase in price. We’re talking about needles in haystacks here. Through all of last year, with hundreds of new wines tasted, there were few that I would call exciting in the value category. Meeting this demand is not just difficult; it goes completely against the grain of how quality wine is made. For wine, quality and quantity are by nature inversely related. …

FACT: A vine has a finite amount of energy. That limited energy is divided amongst the clusters of fruit that hang from it. A vine’s only job is to produce as many seed carrying grapes as it possibly can so that they may fall to the earth and further its existence through the creation of new vines. A vineyard does not know it has been planted so that its fruit may be turned into wine and sold. It does not know that if it creates fruit with layers of flavor and character, proper sugar, acid, and nutrients levels, it may make a wine that tastes considerably better that one made from fruit that does have these qualities. Tom can’t believe what his brother Tim is planning to do. …

Advances in technology have dramatically improved the quality of wine at the entry level. But there simply is no technology that can get around the inverse relationship that exists between quantity and quality of fruit on the vine. Take into account costs of land, labor, equipment, storage, and marketing, and you start to see what separates the $10 bottle from the $100 bottle of wine. I often tell people wines are kind of like cars. For the most part, you get what you pay for. Occasionally there are exceptions that offer a good amount of bang for the buck. But one need do no more than sit in the driver’s seat of Fiat and a Ferrari to know there is a justifiable reason for the price difference. The same is true for wine. While most people are not popping the corks on $100 and above wines regularly, I have to ask you: Aren’t you at least curious now what Tom’s wine is like? I started this blog intending to tell you about Joel Gott, who I had the pleasure of sitting down with last week to taste though his wines. I realized to fully explain just what a needle in the haystack Joel is to , some setup was required. That’s how I got on this Tim and Tom tangent. Hopefully, with some perspective on quality, price, and value, you’ll look for my next entry which will basically be a proclamation that Joel Gott’s wines are unrivaled in the California wine under $20 category. Until then, thanks for reading.

http://www.annarbor.com/entertainment/food-drink/the-relationship-between-price-and- quality-of-wine/

Critical Publics | EDOAO Page 25 of 30

Global Wine Trends 12/02/2010 Weekly Update

Will the recession liberalize wine laws? What to watch

DR VINO, USA

10.02.10: Several states in America, land of the free, own the means of distribution–when it comes to wine, spirits and beer. You don’t have to be a Tea Party member to wonder if this is the best arrangement. Thanks to shortfalls in state budgets, state authorities are increasingly looking to liberalize liquor distribution according to a piece in the WSJ yesterday. The issue is in play in at least Washington State, Virginia, North Carolina, Mississippi, and Vermont.

Privatization could be a mixed bag for wine enthusiasts. …

First, privatization does not equal liberalization: slothful monopolists who raise prices and limit choices can be either public or private. So as states contemplate privatizing alcohol distribution, the key aspect is fostering competition that allows niche distributors to emerge to sell fun, small production wines from the Chalonnaise, or wherever. And why not take liberalization all the way and mandate out-of- state shipping from both wineries and retailers at the same time, with a mechanism to secure tax collection? Or allow ways for innovative retailers, restaurants or wineries to handle their own sourcing or supplying of wines, free of a middle tier? Or allow multiple distributors in a state to carry the same wines? Further, privatization can easily be botched by the short- term thinking that drives most politicians: Don’t sell a 75-year lease for something that the private firm(s) can recoup in a fraction of that time. Privatization would also create more private profits that could be cycled back into electoral campaigns for politicians, further entrenching the prevailing three-tier system. Whether or not you want to raise a glass to that may depend on where you live.

http://www.drvino.com/2010/02/10/recession-liberalize-wine-laws/#more-6098

Scottish Wine: Crimes and Misdemeanors

VINOGRAPHY, USA

09.02.10: Not ordinarily known for their wine or wine drinking habits, the Scots have recently been making news in the world of wine.Who knew that one of the most popular beverages among Scottish criminals was wine? Specifically, , a (rather unholy, if you ask me) concoction of wine, sugar, caffeine, and other additives that make it a bit more like Red Bull than wine. Often called "Wreck the Hoose Juice," according to to the New York Times:

"In a survey last year of 172 prisoners at a young offenders' institution, 43 percent of the 117 people who drank alcohol before committing their crimes said they had drunk Buckfast. In a study of litter in a typical housing project, 35 percent of the items identified were Buckfast bottles. And the in the depressed industrial district of Strathclyde recently told a BBC program that the drink had been mentioned in 5,638 crime reports between 2006 and 2009 (the bottle was used

Critical Publics | EDOAO Page 26 of 30

Global Wine Trends 12/02/2010 Weekly Update as a weapon in 114 of them). …

http://www.vinography.com/archives/2010/02/scottish_wine_crimes_and_misde.html

Gewurztraminer and Discomforting Sounds

FERMENTATION, BLOG

08.02.10: Sometime in the 1970s, people changed from ordering "" to ordering "Chardonnay. Between 1990 and 2007, shipments of California Chardonnay rose from 9 million to 50 million cases. Today, Chardonnay production and consumption is far and away greater than the total production of all other white wine in California. So, what I'm wondering is this: What would have happened between the 1970s and today if Gewurztraminer was instead named "Gerdonnay" (pronounced with a soft "G"—it sounds nicer)

If this were the case, I'm convinced that the biggest selling white wine in America today would in fact be "Gerdonnay".

It's not the name itself that would have done the trick, but rather a combination of an easy to pronounce name and the Gewurztraminer grape's much more expressive and attractive (to Americans) flavor profile. And of course, there's that matter of Gewurztraminer's tendency to carry residual sugar in a much more balanced way than chardonnay does.Some wine just seems to be held back by its name. And let's face it, "Gewurztraminer" isn't exactly the most easy to pronounce name in the world and, I think, the primary reason that the wine made from this grape isn't far more popular to Americans who tend to shy away from things sounding foreign.Of course, the point is that where marketing (as well as nearly everything else from professional to personal issues) is concerned, language is important.I"m struck by the effect language, words, inflection and the way we wield these tools in our business and everyday life can have a profound effect on our livelihoods and our lives. The relative insignificance of Gewurztraminer is only one example, but a powerful one. Sales of the wine suffer because of the American indifference to and discomfort with the sound of the . …

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

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.

Cork industry gears up for €20m campaign

DECANTER, UK

09.02.10: The cork industry is preparing a €20m advertising campaign using cork's 'scientific background' to convince the public of its benefits. From April 2010 to June 2011 the Portugese, via Apcor, the Portugese Cork Association, will run promotions via TV, radio, press, wine fairs and the web. 'We want to convince the public with the help of the scientific background', Jean-Marie Aracil, the French spokesman for

Critical Publics | EDOAO Page 27 of 30

Global Wine Trends 12/02/2010 Weekly Update the campaign said. Apcor will also launch a recycling programme for cork stoppers through partnerships with restaurants, supermarkets, storage facilities and recycling plants. Twelve million euros have been earmarked for the UK, France, , Italy and the United States. Each country will run its own campaign, with the common message that cork is a traditional but innovative and sustainable industry. The €12m devoted to cork stoppers is part of a global campaign of €20m, financed by the Portugese government. …

http://www.decanter.com/news/294697.html

Cork Airplanes Could Prop Up Bottle-Shocked Industry

WIRED, USA

05.02.10: The old pilot’s rule of “eight hours from bottle to throttle” will take on a new meaning if researchers in Portugal find a way to make airplanes out of cork. With the wine industry turning to alternative ways of capping a bottle, Portugal is scrambling to find new markets for its huge cork industry. The country produces about half of the world’s supply of the stuff. Because the material is lightweight and naturally resistant to fire, one idea is redirecting the country’s $1.4 billion cork industry from wine bottles to airplane parts.

The French aircraft manufacturer DynAero hopes to develop two- and four-seat planes using cork as a substitute for other composite materials, according to Reuters. While the idea of flying in a cork airplane may not inspire much confidence, we aren’t talking about a rickety ultralight. DynAero plans to wrap a cork core with carbon fiber, much the same way lightweight plastic foams are wrapped in aircraft today.

Airplanes have been built out of many materials during the course of aviation history. Goodyear even built an inflatable rubber airplane, though it never saw service because the military decided against an airplane that could be brought down with a bow and arrow. But with decades of interesting ideas having come and gone, it’s surprising cork — which is used as insulation on the space shuttle’s external fuel tank — hasn’t been used more often. …

http://www.wired.com/autopia/2010/02/cork-airplane/

Can you turn a tomato into wine?

BBC NEWS, UK

10.02.10: For most of the 20th Century Guernsey was famed for its horticulture industry, and particularly tomato growing. Growers came up with many different uses for the fruit, but one of the most interesting of these was making wine. Several attempts were made at making the wine a commercial venture, though they all seemed to fail. This was largely put down to the wine's flavour which was said to be less than favourable. Jurat Mike Tanguy was chairman of the Tomato Marketing Board in the early 1970s when they were approached about the possibility of marketing tomato wine and they were given bottles to sample. He said: "We offered everybody a tot of wine at the next board meeting... it was pretty awful - the acidity was very high, it was very disappointing." Mike went on to say that he

Critical Publics | EDOAO Page 28 of 30

Global Wine Trends 12/02/2010 Weekly Update heard up to 5000 bottles were made but the marketing board decided not to promote the product. This though was not the only attempt to make the wine as part of a commercial enterprise as tomato wine was later available from the Tomato Museum in King's Mills. When Ken Rowe set up the museum, along with Ron Machon in 1974, he said he made 250 gallons of tomato wine based on a family recipe, to sell to visitors to the museum. He explained that they called their wine Aztecato after the Aztecs who it is believed first cultivated the crop, but he did admit that his brew "didn't taste too good", but that did not stop them selling all 250 gallons. While opinion on the flavour of the wine was mixed, the common opinion was that in appearance it was just like any other white wine and those who sampled certain brews of it said that in smell and taste it was very similar to a normal medium to sweet white wine. http://news.bbc.co.uk/local/guernsey/hi/people_and_places/nature/newsid_8508000/8508 181.stm

German Wine Institute launches intern initiative

HARPERS, UK

09.02.10: The German Wine Institute (GWI) has launched an initiative aimed at giving young foreign wine industry professionals work experience at a top German wine estate. The Generation Riesling Wine Xperience, is a new international internship, led by a group of young German producers collectively known as the Generation Riesling. Wine producers, such as Weingut Georg Breuer and Weingut Winzerfamilie Flick will host overseas interns who will be given lodgings at the wine estate and the opportunity to work alongside winemakers for a minimum of two weeks.

To be eligible for an internship, candidates must work in the food and drink industry and be willing to share their experiences through social networking sites, such as Twitter and Facebook. Nicky Forrest, managing director of Wines of Germany, said: "We have run trips to Germany for and the trade in recent years and participants always come back with renewed enthusiasm for German wines. This initiative goes one step further, providing a great opportunity for up-and-coming members of the trade to learn from the experts about what makes Germany such a special wine-producing country, so we expect demand to be high for these places." To apply for the programme, contact the Wines of Germany team to request an application form and send your completed form to Michael Schemmel at the GWI in Mainz, Germany. He will pass your request on to the Generation Riesling producers participating in "Wine Xperience" for their consideration.

http://www.harpers.co.uk/news/news-headlines/8750-german-wine-institute-launches- intern-initiative.html

Atkin's Observer column slashed

DECANTER, UK

08.02.10: Tim Atkin MW's weekly column in Sunday newspaper the Observer will be radically reduced from the end of this month. The popular page, which Atkin has written since 1993, will go down to three wine recommendations a week. Atkin

Critical Publics | EDOAO Page 29 of 30

Global Wine Trends 12/02/2010 Weekly Update

(pictured) will continue to have a presence in the paper's colour magazine Observer Food Monthly. …

He told decanter.com, 'I am sad that The Observer has decided to reduce the scope of its wine coverage at a time when people need reliable advice more than ever. I will miss the challenge of writing what was (I hope) an engaging, informed and entertaining piece each week.'

An Observer spokesperson said, 'I can confirm that Tim Atkin will continue to write for the Observer and his wine column will feature in OFM each month. His wine recommendations will continue to feature each week in Observer Magazine.' The Observer's decision to cut its wine coverage is not without precedent: other newspapers have cut their wine coverage over the past few years. In March 2009 Joanna Simon ceased writing on wine for the Sunday Times when her long-running wine column was taken in-house. Richard Ehrlich's wine column for the Independent on Sunday was also cut. Atkin's last full length Observer wine column will appear on 14 February.

http://www.decanter.com/news/news.php?id=294681

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.

Chinese wine drinking surges

SHANGHAI DAILY, CHINA

11.02.10: CHINA is posting the world's highest growth in volume of wines consumed, according to new survey figures released in Shanghai yesterday.Between 2004 and 2008, Chinese wine consumption grew by nearly 80 percent, according to the International Wine and Spirits Record survey conducted for Vinexpo, the world's leading wine fair.In 2008, there were 74.97 million cases of wine, or 900 million bottles, consumed in China.The country accounted for 68.9 percent of all still light wines consumed in Asia and 3 percent of total world wine consumption in 2008, the survey found, based on latest confirmed sales.The survey, released by Dominique Debreuil, chairwoman of Vinexpo's overseas fair scheduled for Hong Kong in May, projected that over five years from 2009 to 2013, China's wine consumption would increase 31.58 percent.China would then be consuming 1.26 billion bottles a year, almost equivalent to one bottle annually per capita for the drinking age-population. The survey projected that over a 10-year period from 2004-2013, the volume of wine consumed in China will have soared by 250 percent.In terms of drinking preferences, the survey found red wine takes up 88 percent of annual total sales by volume. As more Chinese women develop a taste for wine, white wine drinking is rising and should grow by 41.7 percent in the five years to 2013.

http://www.shanghaidaily.com/article/?id=428517&type=Business

Critical Publics | EDOAO Page 30 of 30