Wednesday, February 07, 2007

Rioja, grape changes, new marketing push, strong sales

D.O.C. Rioja, Spain's oldest and most renowned wine growing region has been making efforts to up-date itself adding new grape varieties and spending more on promotion.

Recently, and for the first time since 1925, the Regulatory Council of Rioja has approved the use of several white wine grape types, three of which are from outside Rioja: Chardonnay, Verdejo and Sauvignon Blanc, and three that are native to Rioja: Maturana blanca, Tempranillo blanco and Torrontés. This last variety might be a surprise as Argentina has made the most of this grape, but Rioja looks to be restaking their claim to it. The non-native white grapes can only be introduced as subsitutes for uprooted vines and wine makers will not be allowed under DOC rules to produce wines made from a majority of these grapes nor to prominently list them on the front label, restrictions that not applied to the native varieties. Presently only 9% of Rioja's grape production is in white.

In addition to the new whites, the "minority" native red grapes of Maturana tinta, Maturano or Maturana parda and Monastel have been approved for use.

In marketing, Rioja is pushing on all fronts. In Spain, as a part of a 1.6 million euro plan, the DOC has launched a website called Rioja Pasion, and, in conjuntion with Paramount, they are opening up a casting process in which budding young comics are encouraged to sent short videos about their first experiences with wine. The 10 finalists will have a public run-off competition and the 20 runners up will get a free case of Rioja. Internationally, and capitalizing on the positive name recognition of Rioja, there are more websites: in the USA there is Vibrant Rioja , which is part of a 2 million euro promo plan for the US alone. In the UK, the Rethink Rioja campaign has created a website for the market and has held wine tastings and retailer competitions. In Germany, the campaign has coincided with the release of the mystery novel "A Rioja for the Matador" by Paul Grote. A media promotion to journalists have included sending out the book and a bottle of Rioja.

In terms of sales, Rioja hit a new high in 2006 with total shipments of 261 million liters of wine, an increase of 4.3% over 2005, with exports up by 11%. The UK, which represents the largest export market for Rioja (35% of all export volumes) saw the sale of 27.8 million liters (up by 13.8% and double that in 2000). Germany, the 2nd largest market, consumed 13.1 million liters (up 6.2%), and the US moved up to 3rd place with 6.8 million liters (up by 12.9%), edging out Switzerland and Sweden. In all, these five countries take in 70% of all Rioja exports.

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