demands of today`s market, what price tradition and regional

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moJa
SUHFING THE
now wavo
As Rioja's wine styles evolve to meet the ever-changing
demands of today's market, what price tradition and
regional character? Rupert Millar reports
WHETHER WANDERING through
musty 12th century cellars lined with
American barrels, or strolling among
veritable tower blocks of barriques from
the US, France, Hungary and Romania in
a gleaming, temperature-regulated
stainless steel cavern designed by Gehry
or Calatrava; the most striking aspect of
any visit to Rioja is the drive towards
cleaner, fresher and fruit-driven wines.
Although the traditional styles still
abound, it does seem that every winery at
the moment is championing its "modern"
Rioja wines.
Felix Solis Ramos, export director at
Felix Solis Avantis, describes the modern
style as "more international, with more
concentration, more fruit and less oak".
He also states that it is the new wineries
that are primarily responsible for driving
this change, but that even older bodegas
are adapting their styles.
For winemakers to challenge the trade's
perception of what their region is capable
of with different wine styles and varieties
is a healthy and frankly necessary thing to
be doing in the face of price-points, points
of difference and calls for innovation. But
what is "new" Rioja? How does it differ
from "old" Rioja and is it a natural
evolution in style or an excuse to attach the
region's name to a modem style of wine
for reasons of commercial expediency?
Pablo de Simon, owner of Bodegas de la
Marquesa, sets out the dilemma facing
producers at the moment, torn as they are
between the sense of duty they feel
toward tradition and the rigours of
supply and demand: "I want to respect
the traditions but cannot be deaf to the
market," he states. "People want fruitdriven wines and Rioja is diversifying its
offering by including 'winemaker's' wine,
single varieties of Graciano and Grenache
and playing around with the rules."
However, it's not all about doing away
with the rulebook and de SimOn is keenly
aware that trends change and classical
regions are back in vogue. Although he
may be updating his style, he feels it's
important to safeguard tradition. He
continues: "We cannot follow trends too
closely because they change. I believe the
UK is coming back to more elegant styles
and Rioja makes lighter, more elegant
wines than, say, Toro or Jumilla. People
want classic Rioja in the UK and
European markets, and it's important that
the wineries that are 100 years old or
more keep the traditions going."
Some, though, can appear more
iconoclastic in their outlook. Carlos San
Pedro, of Bodegas Carlos San Pedro Perez
de Viiiaspre, says: "Rules are restrictive.
You need to get away from the rules to
get the best out of the year. This is why
we are turning to winemaker's wines. It's
a new wave of Rioja."
However, it's not as simple as declaring:
"Let's tear down the old order and start
afresh." The Consejo Regulador de Rioja
DOCa is absolute when it declares: "Only
wines that comply with the regulations
imposed by the Consejo Regulador can be
labelled as 'Rioja', and the terms 'crianza',
'reserva' and 'gran reserva' also have
legal restrictions on their use. Riojan
winemakers can only experiment within
A
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'A
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173161511 - JENFOR - A16736-4
these boundaries. The Control Board runs
a strict and efficient control system from
production to commercialisation, both for
the quantity and quality of protected
wines."
Every step, from harvest to bottling to
release, is monitored and graded to
maintain quality. The question, therefore,
is how far can things really change and
why would they?
Market demand is, of course, an
important driver. The Consejo realises
this and has acted accordingly, admitting:
"The Strategic Plan for Rioja 2005-2020
recognised the need for Rioja's products
to adapt to current market
demands and provide
greater competitiveness
for its wines."
So what is changing? Oak
has always been a key
ingredient in Rioja,
sometimes perhaps applied
more than is judicious, but
there is a growing trend
towards using less,
particularly American, and
concentrating on
maximising fruit through shorter ageing
and the use of French barriques. Javier de
Galarreta, managing director of Araex,
explains that the prevailing theory among
producers 15 years ago "was that a barrel
with 4-5 years of age would deliver better
quality than a younger one".
The situation today is rather different.
Oscar Tobia, winemaker at Bodegas Tobia,
explains the evolving attitude to the use
of oak: "The main change that has
occurred is obtaining a better balance
between fruit and wood. We now use
newer barrels, with a more moderate
toast. We use the barrel for making the
wine, not only for ageing it."
Another aspect to consider is that of the
wines that do not conform to the crianza
or reserva classification category, which
are pushing the boundaries with regard to
oak use and what varieties are allowed by
the Consejo. Antonio Pinilla, export
director for Grupo Faustino, comments: "I
would say that everyone today is trying
to be more innovative in Rioja. What
newer producers will do is to look for
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older vines with lower yields and will not
design or vinify wines which will require
a long period of ageing and generally will
use more French and new oak."
Adrian Atkinson, wine development
director at Pernod Ricard, agrees, saying
that changing consumer tastes and
demands have caused an evolution in the
use of oak. Recent years have seen, he
says, "an increased use of French oak in
Rioja, as winemakers are developing
Rioja wines with greater fruit
concentration and shorter ageing periods.
These wines are not appearing instead of
reservas and gran reservas, but in
addition to them, complementing the
diverse and wide-ranging styles of wines
that Rioja can offer".
The Consejo has also been careful to
limit the widespread use of too many
different grapes, especially international
varieties which could drastically alter the
Rioja taste, while trying to resurrect
other varieties that were once more
widely used.
"The aim," the Consejo states, "is to
regain Rioja's grape-growing heritage,
provide grape production with greater
diversity and maintain Rioja's identity,
setting it apart from other regions."
In 2007, when the Consejo authorised
the use of nine new grape varieties in
the region, it was very clear that only the
six native Spanish grapes could be used
as single varietal wines or in a blend, with
no limit set on percentages. The three
"new" white varieties, Chardonnay,
Sauvignon Blanc and Verdejo, can never
predominate in a blend, but must play a
supporting role to traditional white Rioja
grape varieties.
And this is no bad thing, as Charles Elms,
commercial director at Free Run Wines,
points out: "It's a bit of a pity to have
international varieties - Rioja isn't
Sauvignon Blanc. We shouldn't have to
introduce these varieties into established
regions, no more than you'd want to
introduce Sauvignon Blanc to Chablis."
The Consejo clearly designates Rioja as
falling into one of four categories:
guarantee of origin, crianza, reserva and
gran reserva. Although the Consejo
admits that most guarantee of origin
wines are young and unoaked, there are a
number of winemaker styles that, by their
experimental nature, do not fit into the
other more strictly defined categories.
That said, sales of guarantee of origin
wines have reportedly remained stable
since 2006 at around 42% of
Rioja wines sold. They are
particularly popular in the
domestic market. The
Consejo further reports that
the majority of wines made
and sold are in the classic
categories, and sales of
crianza and reserva have
even seen a slight uplift in
recent years. One cannot,
therefore, claim empirically
that traditional values and
styles are going out of fashion, either
among consumers or producers.
The reasons for these changes are varied.
Continued consumer demand for Rioja,
but also fresher flavours and even a
perceived slip in quality, can all be brought
into the equation. The latter reason is what
Ramos proposes, suggesting that the rise
of Ribera del Duero dealt a severe blow
to Rioja's reputation: "I think that some
years ago Rioja was losing its position as
the region that was offering the 'best'
wines from Spain and there has been an
obvious reaction to that. Rioja needed to
react and do something, mainly in the
style, and it is being done."
range remain. The risk, though, of putting
style over substance as a result is a worry,
Ramos continues: "There is always a
danger that making a wine too
'international' can result in a loss of the
characteristics of the region; therefore the
change and the adaptation cannot be
dramatic and always has to respect the
character of the origin."
But, to recall de Simon,
one "cannot be deaf to the
market". As Atkinson
acknowledges, long-term
success for Rioja, as with
any region, lies in
attracting new consumers
with "an updated Rioja
expression that still
reflects the authenticity
that consumers demand
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but satisfies a more modern palate".
Rioja has always been known for being a
lighter, more balanced style of Spanish
wine than some its bigger, more robust
southern cousins. In fact, the use of less
oak and an effort to produce cleaner
wines can surely only help the region
maintain this personality.
The emergence of New World wines and
their new, bolder flavour profiles has been
of course a huge influence on modern
winemaking here. Even if the taste for
over-extraction, over-ripeness and
unfettered use of new oak has calmed
somewhat, the need for cleaner, purer
flavours, greater innovation and broader
"Improvements," suggests Jesus
Madrazo, wine maker at Contino,
"as long as they don't conflict with
the main features of your identity, are
always positive."
Overall there is only so far that change
can go. The laws laid down to protect the
quality of the wines ensure that what
makes Rioja Rioja cannot be distorted too
far. Younger wineries are certainly
pushing the modern image and
experimenting with different varietal
wines, but even if older bodegas are not
exactly completely overhauling their
style, they too are updating their methods
and cleaning up their wines. The trick is
finding that happy medium between site
and style: "meden agan", as the Greeks
would say - "nothing in excess".
Furthermore, a popular style such as
Rioja, constantly faced with the need to
keep up with advances in technology to
meet the unceasing demands of its public,
has no choice but to go with change. To
think otherwise is akin to sitting, Canutelike, on the shore bidding the tides recede.
But change is often far from a man-made
condition. Carmelo Angulo, head
winemaker for United Wineries,
succinctly points out that headlinegrabbing issues, such as oak use, are
actually a very small part of a multitude
of small changes that have been shaping
styles over time: "The style of wine
changes and it can't be avoided. On one
hand, the vineyard evolves, ages, the area
of cultivation expands, takes up new
areas with different characteristics, some
varieties are changed by others, the
clones, the spacing of plants, etc. So the
means are different, and therefore if the
beginning of the process changes, the end
result also changes. This does not mean
that philosophy, the approach to making
and developing the wine, and the
commitment to quality has changed, it
remains the same despite the changes:
this is what we call tradition." db
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Rioja: UK sales performance
Feature findings
There is a move to a new, modern
and fresher-tasting Rioja
It uses less oak ageing but newer,
usually French, barriques
New grape varieties are being
introduced and used in blends or as
varietal wines, adding to the
region's diversity
Greater competition from other
Spanish regions and changing
consumer demand are driving
these changes
However, the laws prevent
wholesale and character-destroying
changes from occurring as a result
PRODUCERS ARE TORN BETWEEN
THEIR SENSE OF DUTY TO
TRADITION AND THE RIGOURS
OF SUPPLY AND DEMAND
THE CONSEJO HAS BEEN
CAREFUL TO LIMIT THE
WIDESPREAD USE OF TOO
MANY DIFFERENT GRAPES
The latest Nielsen statistics to the end
of December 2010, plus those from the
Rioja Exporters Group to November
2010, paint a positive picture for both
Rioja as a whole, when compared with
other Spanish regions, and for the
classic categories within Rioja itself.
Rioja wine sales have seen an
impressive 16% rise in volume to
2.3 million nine-litre cases and a
corresponding 15% rise in value
to £155m (Nielsen MAT to week
ending 25.12.2010).
This means that the region has
outperformed both Spanish still wines
in the UK - up 5% in volume and 9%
in value - and also the UK's general
wine market, which saw a 2% drop in
volume and only a 3% rise in value
over the same period.
Research shows that Rioja sales are
growing most rapidly in the £5-5.99
category, which was up 38% in
volume. That category as a whole now
accounts for 45% of all Rioja wines
sold in the UK.
However, there has also been a rise
in imports of reserva and gran reserva
volumes, according to the Rioja
Exporters Group. Compared to the
same period in 2009, imports grew by
68% and 34% respectively for the two
classifications in the period ending
November 2010.
It is clear that not only is the
popularity of Rioja as a whole on the
up, but so is that of what is considered
to be its classic representation.
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Trade talk: What is the identity of Rioja today?
CAROLYN D'AGUILAR, BRAND MANAGER STILL WINES,
GRUPO CODORNiU
The majority of UK consumers still love the traditional style of Rioja with its soft fruit
and dominant oak flavours. Our flagship Rioja brand - Vifla Pomal, from the Rioja
Alta district - is our biggest seller and is well-made, classic Rioja offering consumers
all the Rioja cues they expect: ripe, juicy red fruit, soft tannins and sweet vanilla oak.
We also have more modern-style Riojas in our portfolio - the upmarket La
Vicalanda range - and the very contemporary Zaco. Both of these brands sell, but in
much smaller volumes and through more specialist retailers.
CARLOS ESTECHA, HEAD WINEMAKER, PATERNINA
Rioja is a feeling. Rioja is a way to look at life with utmost respect for tradition. This
is the only way to understand how a small region, shared by various provincial
governments, maintains its essence.
Each and every person in Rioja has a deep relationship with its soil. We live in it
and we live from it. Thinking about Rioja wine requires quietude, emotion and
gratitude; it's a charming wine that expresses nobly the complexity of Tempranillo
paired with Garnacha and sometimes Mazuelo and Graciano. Tempranillo is the very
essence of Rioja. As in jazz, the clarinet leads while bass and drums play an
important role in the melody, but the wind is the driving force overall. It's the same
with the Tempranillo in a Rioja wine. This variety truly deserves an homage.
RIOJA HAS ALWAYS BEEN
KNOWN FOR BEING A LIGHTER
STYLE THAN SOME OF ITS
SOUTHERN COUSINS
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Publication: Decanter
Date: April 2011
Circulation: 49,000
Publication: Saturday magazine
Date: 2nd April 2011
Circulation: 623,603
Rioja’s export
focus pays off
Six years ago the Spanish region came up with
a strategy to achieve a 50-50 domestic-export
balance. Last year the results began to show.
David Longfield breaks down the numbers
A
sk an average wine drinker to name a few
wine regions and Rioja will be one of the
few names that genuinely trips off the
tongue, in all parts of the globe. As the
world’s wine corporations strive to strike lucky with
the next big branded range, Rioja remains one of the
strongest wine ‘brands’ out there.
Indeed, a Wine Intelligence Market Trends
Report in the UK (Dec 2010) showed that 74% of
respondents recognised the region by name, 30% of
whom said they had bought wine from the region
in the previous three months. This meant that Rioja
ranked number one for UK market ‘penetration’.
“We calculate a conversion rate, which shows the
extent to which a region has penetrated its available
base, ie those who are aware of it,” says Richard
Halstead, Wine Intelligence chief operating officer.
“In this regard Rioja ranks number one in the UK by
some distance, with a conversion rate of 40.5%. For
context,” he adds, “Côtes du Rhône ranks number
two in this measure, with 27% conversion.”
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For decades Rioja has been strong in export
markets. A glance at the table shows Rioja exports
hovering consistently between about 30% to 33% of
total sales volumes since the mid-1990s.
On a recent visit to London, Consejo Regulador
chairman Victor Pascual told Drinks International
a strategic decision taken six years ago began to
bear fruit in 2010. “In 2005 the council decided to
focus on export sales,” he said. “And last year was a
record for export volumes.”
And this is just the start of what Pascual expects
to be a radical shift in the structure of Rioja’s sales
charts. “Our goal with the strategic plan is to
achieve 50-50 [domestic vs export] by 2020,” he
said. “We plan to maintain market share in Spain,
but the opportunities will come from new markets in
export.”
At nearly 86 million litres, 2010 Rioja exports
exceeded the previous highest level in 2007 and
represented 32.1% of Rioja’s total sales volumes
of 267m litres. To put it into context, in Bordeaux
Rioja total sales and exports (millions of litres)
Rioja total sales
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Spain
77.75
99.7
114.35
120.19
139.61
125.78
119.07
137.46
150.7
138.68
120.12
160.01
178.15
170.21
182.28
179.44
182.87
187.02
172
163.67
181.26
Source: Consejo Regulador D.O. Rioja
40 Drinks International
Exports
26.03
29.14
34.29
38.72
56.75
59.12
58.85
67.78
71.55
56.8
39.86
60.41
72.1
66.14
69.01
71.23
78.93
84.59
79.91
72.43
85.86
% of total
25.10%
22.60%
23.10%
24.40%
28.90%
32.00%
33.00%
33.00%
32.20%
29.10%
24.90%
27.40%
28.80%
28.00%
27.50%
28.40%
30.10%
31.40%
31.70%
30.70%
32.10%
Total sales
103.78
128.84
148.64
158.91
196.36
184.9
177.92
205.24
222.25
195.48
159.98
220.42
250.25
236.35
251.29
250.67
261.8
271.61
251.91
236.1
267.12
the CIVB reported total 2009 sales of 496m litres,
with an uncannily similar figure of 32% exported,
equating to 158.7m litres.
And, for a New World slant, Rioja’s 267m-litre
sales total is about the same as the whole of
Australia’s exports to the UK, quoted at 272m litres
for 2009-10 (AWBC Export Approval Database), out
of the national total exports of 776m litres.
In terms of value, Rioja’s strong presence in the
on-trade globally makes accurate data harder to
come by. But Pascual responds succinctly: “2010 has
recovered quickly to the 2007 position.” In the UK,
Rioja’s biggest export market, 2010 average bottle
price in the off-trade was reported as £5.64 (Nielsen)
against a national UK average per bottle of £4.47 for
all wines.
Quick recovery
The good news for Pascual and Rioja is that, going
by the volume stats, the region appears to have
emerged from the recession in quick time, not only
breaking the export record but also rebounding from
a serious drop in the domestic market across 2008-9.
Spain was, and still is, one of the European
economies hardest hit by the banking crisis, so it’s to
the industry’s credit that domestic volumes in 2010
surged by 10.7% on 2009. This has been aided by
Rioja’s already strong position at home, maintains
Pascual. “In Spain the on-trade has been going
through some difficult times, as everywhere,” he
says. “But Rioja has 40% market share in both on
and off-trade in Spain. The market is still moving
Analysis Rioja
Rioja exports by country
2009
m ltrs
% of total
UK
23.86
32.95
Germany 14.13
19.51
US
5.98
8.25
Switz
6.62
9.13
Sweden 3.4
4.7
Neth
2.25
3.1
Belg
2.27
3.13
Mex
1.55
2.14
Ireland 1.3
n/a
Canada 0.95
n/a
Norway 1.54
2.16
Denmark 1.35
2.13
Others
9.48
13.09
Total 72.43
2010
m ltrs % of total
29.53 34.4
16.69 19.44
7.71
8.98
6.49
7.55
3.43
3.99
2.71
3.16
2.15
2.51
2.14
2.49
1.7
1.98
1.36
1.58
1.4
n/a
1.25
n/a
11.94 13.92
85.86
Source: Consejo Regulador D.O. Rioja
towards more consumption at home, and Rioja has
the advantage of already being there.
“We expect as the economic conditions come back
on to an upward curve in the next few years, the ontrade will begin to recover. Rioja is already in all the
channels and can adapt quickly.”
Adapting strategies
“The 2005 strategic plan was based on three
pillars,” says Rioja Consejo Regulador marketing
director Ricardo Aguiriano. “Quality; adapting
wine styles to the market – such as white and rosé;
and wine tourism development.” Adaptability is
a recurring theme – the marketing campaigns that
have resulted have involved tailoring the approach to
individual markets.
“We think globally but act locally, with both trade
and consumer activities,” says Aguiriano. “In the US,
for example, we are focused on point of sale, using
Victor Pascual
five brand ambassadors in different states and longterm alliances with the main supermarket and ontrade chains. We also place a focus on the Millennial
generation, and already have 80,000 registered
members of our online community.”
In Mexico, traditionally a spirit and beer-based
drinking nation, the focus is more on the culture of
wine and how it is consumed, with a leaning towards
the trade. “Our first goal is to teach sommeliers and
supermarket executives to promote wine culture, and
Rioja as the first choice.”
But Rioja’s top export destination, the UK, is a
mature market so, says Aguiriano: “The aim is to
reintroduce consumers, to get them to branch out
into the new white and rosé styles and/or to trade up
the quality levels. We are very proud of our Tapas
Fantasticas in the UK.”
This vibrant, outdoor event in London is the June
highlight of Rioja’s year in the UK. Last year 20,000
consumers attended, experiencing wines, music and
dancing, cookery demos and seminars, along with
tapas prepared by top Spanish restaurants. This is
also, says Aguiriano, the ideal way to introduce new
consumers from the younger age groups in the UK.
The results of these varying tactics are there in the
figures (see table). At 30m litres the UK takes more
than a third of Rioja’s total exports, “and is doing
well, picking up from a small drop in 2009”, says
Pascual. The US, he says, is a “key strategic, growing
market”. Switzerland and Mexico are among Rioja’s
Participants
at the Vibrant
Rioja Grand
Tasting in New
York last May
newer markets, and 2011 sees the region’s first
experience of exporting to China.
“We ourselves have been surprised by our increases
in Germany (+18%), the US (+30%) and Mexico
(+35%),” says Aguiriano. “We have been carrying
out marketing campaigns in all of these.”
In the recession-hit year of 2009, Aguiriano says
the US market was “more or less level compared
with 2008”. He adds that: “All markets were down
for Rioja in 2009, but the US was the strongest,
thanks to our strategic marketing campaign.”
“Despite the fall in exports in 2009, the Consejo
Regulador continued to invest in all our key export
markets,” says Pascual. “And Rioja has continuously
adapted its offer to the needs of key markets.”
Quality basis
The fact that it has taken about six years – including
a global recession – for the new Rioja strategy to
begin to reap rewards may be a reflection of the
timescale that the region and its wines work on.
Reserva and Gran Reserva Rioja wines can spend
between three and five years, or more, in a winery’s
storage area before they are ready for release.
“That’s why a consistent strategy is important,”
says Pascual. “We need to keep in mind what our
consumers will require over the next few years. It’s a
mid-term strategy, which may look a little odd from
the outside.”
The financial implications of tying up large
volumes of every harvest while it ages in barrels are
clear but, Pascual points out, “70% of the 2010
harvest will be sold after its third year”, including
Blanco, Rosado and younger red styles. The Rioja
business model is based on a ratio of stock levels
to the previous year’s harvest, with the ideal value
being between 2.85 and 3.15. It is currently “well
balanced” at about 800m litres, or approximately
three years’ stock, meaning the industry is on a
sound footing.
It bears comparison with other premium wine
areas, where wines must be held for a minimum set
time before release. “Rioja belongs to a
 p42
Drinks International41
Analysis Rioja
WSET
From our own
correspondent
David Wrigley, the WSET’s international development
director, gets the lowdown on the German wine scene from
Michael Pleitgen (pictured), director of the Berlin Wine
Academy and WSET market co-ordinator for Germany
A
confederation of regulatory boards
from all over Europe,” agrees Pascual,
“and we have ongoing relationships
with regions such as Barolo and
Champagne.” One of the key common
quality factors, he adds, is that the
products of these regions must be
bottled in their own region.
“The key strength of Rioja is its
quality,” says Pascual. “The Rioja
back labels employ the same system
of controls as are used for CDs and
banknotes. This means it cannot be
falsified and guarantees its origins and
the length of time it has been aged.”
selling Fetzer; Constellation hiving off
Hardys’ Kumala et al – does Rioja’s
“branded” status govern the way it
markets itself? “Yes, we do act as a
global brand,” says Pascual.
“That is why we continue to carry
out our campaigns globally,” agrees
Aguiriano. “We consider Rioja the
main brand in an area.”
“We have survived many periods of
difficult sales – the model, and the way
Rioja works, survive,” adds Pascual.
“In terms of the big corporations, it is
part of their business model to change
the balance of their portfolios.”
But, he points out, despite divesting
World in its sights
its Lindauer assets in New Zealand,
So, at a time when the major global
Pernod Ricard has retained its Rioja
drinks companies are in a rush to get
interests – Domecq Bodegas, with its
out of wine brands – Brown-Forman
Campo Viejo, Siglo, Alcorta and Ysios
brands – effectively reflecting the
confidence it has in the Rioja brand
globally.
And, in case there was any
mistake about Rioja’s confidence
in its own ability to conquer new
territories, Pascual says: “Our belief
is that the Rioja brand is still not as
strong as it could be.”
There’s no newer frontier for
wine than in China, and Rioja’s
investment here will be €1.5m in
the first three years. “We want to
grow as much as possible here,”
says Aguiriano.
Overall, the message is simple.
Says Aguiriano: “We are investing
80% of our total marketing and
Der Bonner Hof restaurant in Essen was
promotional
spend in export
voted top in 2010’s Rioja Gourmet Cup,
DI
a Rioja on-trade initiative in Germany
markets.”
drinksint.com may 2011
fter a successful WSET presence
at ProWein, the major German
trade fair in Düsseldorf, there’s a chance
to catch up with Michael Pleitgen, who
is also an industry consultant and online
commentator, so well placed to take
the temperature of the wine business in
Germany.
Like the UK, Germany is a market
with a reputation for its low-price
mentality, says Pleitgen, but, despite
this, ProWein’s international exhibitor
numbers were up this year. “The
German market is still clearly of
interest,” he says. “While volumes are
a little lower against last year, market
value is stable, so prices have increased
a bit. A lot of exporting countries have
been trying new markets such as the US
and the far east, but they seem to have
come back to give Germany another try
– countries such as Italy, for example.”
The international trend is also
reflected in the visitor profile, with a
greater proportion making the journey
from outside Germany, in particular
from North America, the far east and
the Nordic countries, something we
both noticed on the WSET stand.
But the combination of these
exhibitor and visitor factors with
a reduced crop of German wine in
2010 (as much as 25%-30% down
on average) is putting German wine
producers in an awkward position, says
Pleitgen. “German wines have finally
been increasing in popularity both at
home and abroad,” he says. “But just as
producers find themselves with a short
harvest and less wine to sell, everyone
else is coming back into the market to
fill the gap, and new buyers from the
home market are thin on the ground. It’s
an uneasy combination.”
Which is partly why he finds himself
increasingly asked to guide producers in
the opening of new channels to market.
The week before our conversation
Pleitgen was in Oppenheim running
a workshop on social media for a
producers’ association. “It wasn’t the
first I’ve done, and it won’t be the
last,” he reflects. “Personal sales from
the winery door are down. The new
consumers responsible for Germany’s
resurgence on the home market prefer to
discover and buy online. As a producer,
if you don’t have a good online
presence, consumers go elsewhere.”
It’s not just producers who need to be
proactive in this regard, says Pleitgen.
“Five years ago we would talk about
Germany’s 4,000 wine ‘addresses’ –
retail outlets. Now it’s more like 2,000.
Smaller-scale specialist shops, such
as FUB – part of the Schlumberger/
Underberg group, which specialised
in Bordeaux Crus Classés and top
Burgundies – have closed this year as the
trade in premium and fine wine moves
online, leaving major chains such as
Jacques, Mövenpick and Vom Fass in a
more dominant position.
The key, thinks Pleitgen, is holding
on to consumers. “With fewer people
spending more on wine here in
Germany, the relationship between
seller and consumer is increasingly
important. And education, whether via
programmes such as WSET’s or some
well-chosen words of explanation on
a website, is a powerful way of adding
value and building loyalty in this
relationship.”
David Wrigley: [email protected]
or via www.wsetglobal.com
Michael Pleitgen: [email protected] or via www.weinakademieberlin.de
DI
Drinks International 43
Publication: decanter.com
Date: 22nd May 2011
Circulation: 150,000
http://www.decanter.com