What is the value of a D.O. in wine marketing?

On 30 April I gave a presentation at a conference organized by the Catalan Department of Agriculture, Food and Rural Support on the value of Denominations de Origin in wine marketing.

The key points:

The overt importance of a D.O. as such will vary according the consumer target (those with more wine knowledge or familiarity with a specific region will attach more value to the D.O.). For example, a consumer with slight general wine awareness may have heard of Rioja and might possibly value it higher than wines from another region, while a more knowledgeable consumer might attach greater value to a wine from the Rioja Alavesa.

However the covert importance of a D.O. is to:

• Create a link to a specific region, which is of growing importance in a increasingly uniform and generic world,
• Preserve and give value to local traditional knowledge and practices, which often from the basis of viticultural and winemaking regulations enacted by D.O.s.
• Act as a vehicle for collaboration and cooperation among the participants of a specific region.

While some might criticise D.O.s for imposing certain practices that a winery might wish to use, any winery that decides to can opt out of a D.O. However, it is important to note that in countries where the practice of forming D.O.s was not a part of the scene, wineries in certain regions are banding together to form D.O.-like structures, such as the Coonawarra Vignerons Association, or the Napa Valley Vintners.

Above all, D.O.s should be at the service of their member wineries to help them achieve the highest possible quality, singularity and visibility.

Exports of D.O. Rias Baixas wines up 70% in two years

Councilor for Rural Areas of Galicia, Alfredo Suárez Canal recently commented that exports of wines from the D.O. Rías Baixas continued to expand in 2008. In 2007, exports rose 60% and in 2008 they grew by an additional 10%. The five growing regions of Rias Baixas (Val do Salnés, Condado do Tea, O Rosal, Soutomaior and Ribeira do Ulla) produced a combined estimated 70 million euros of wine in 2008.

D.O. Emporda - the windy wine region

Last night the D.O. Empordà held a promotional event in Barcelona. The small and hilly Empordà region is tucked into the northeast corner of Spain and is home to about 40 wineries. One of the signature features there are the Tramuntana winds that can get so strong that vine rows must be planted running north to south so as not to be knocked over.

There is one regional heavyweight: Castell Peralada, which owns 150 hectares of vineyards and produces nearly 2 million bottles a year of still wines and cavas, plus a wine spa & hotel, casino and golf course. The majority of wineries in the Empordà are small to micro-wineries run by families and friends.

At last night's event were roughly 24 wineries present. For me personally, the most distinctive wines were:

Celler Roig Parals: The Roig Parals Samsó is made from vines the are between 75 to 125 years old and the result is sublime. The winery was started about 4 years ago and produces only 20,000 bottles per year.

Celler Arché Pagès: Their Bonfill 2004, made from Garnatxa negra and Cabernet is a refined explosion of fruit.

Lavinyeta: a small winery that combines dedication with a sense of fun in their wines Heus, Puntiapart and Llavors.

Vinyes dels Aspres: which has become our own "house wine": Oriol an unfiltered unaged wine and the regal S'Alou (2400 bottles produced in 2004).

Celler Martin Faixó: their Cadac '04 is sheer elegance and the Perafita '05 a diamond in the rough that will shine after further bottle aging.

Oliver Conti: A regional classic that is expanding thier product range. High quality all the way.

These wineries are really doing good work and deserve greater recognition. Seek out their wines (but be sure to share!!).

D.O. Catalunya blog contest

The Denominació de Origen Catalunya is launching a blog contest for the best Catalan wine blog. The contest is open to all non-corporate wine-focused blogs written in either Spanish or Catalan with a top prize of 3000 euros.

Entries can be made until 12 September and the winner will be announced on 23 September at the 28th Presentation of Catalan Wines and Cavas in Barcelona.

Debatdevi: support for local wine consumption in Catalunya

Yesterday, the Catalan Institute of Wine and Vine (INCAVI) with the Department of Agriculture, Food and Rural Development of Catalunya launched Debatdevi, an inciative to support Catalan wines in Catalunya.

Debatdevi will be carried out on two levels: the first will be five independent publicly held debates from July through October. The five planned debates will explore the issues of quality, wine and terroir, promotion, changing consumers and commercial strategy. The second level will be the creation of an online exchange among the speakers of the five debates. Once a critical mass of interaction has been created, the on-line forum will be opened up to the general public for their participation. In addition there will be other materials made available via YouTube, Slideshare and Facebook. It should be an interesting experiment that generates more ideas for supporting consumption of local wines.

I will be panelist on the first debate to be held on July 1st, titled: New consumers, New habits.

Wine awareness vs. consumption in Catalunya

A recent study carried out by the Catalan Institute of Wine and Vine shows that consumers here in Catalunya have a positive awareness of regional wines, but that there is a "disconnection between awareness, valuation and consumption" according the Joaquim Llena, Minister of Agriculture, Food and Rural Action for the Catalan Government.

Catalan wine consumers were able on average to name six D.O. regions in Spain and three of the first five mentioned were D.O.s of Catalunya. The D.O. most named was Penedes at 83%, followed by La Rioja (80%), Priorat (66%) and Emporda (34%). 61% of consumers felt that Catalan wines have improved a great deal in quality.

However, in terms of marketshare here, Catalan wines have a 28% share, behind Rioja (36%) but ahead of Ribera del Duero (7%). In restuarants Rioja leads with 43% over Catalan wines at 26%. In the off-premise trade Catalan wines do better at 29% versus 31% for Rioja.

Minister Joaquim Llena pointed to the need of better efforts in the promotion and communication in support of regional wines. He gave present efforts a score of 4 out 10 points.

Exports of Catalan Wines up 18% in 2007

Last month the D.O. Penedes wine association UVIPE released figures showing impressive export growth for Catalan wines. From 2006 to 2007, exports rose by 17.8% in value and by 2.5% in volume, reflecting a 15% increase in prices. According to UVIPE the majority of exports went to other EU countries, while the drop in the value of the dollar and increase in the euro had hurt many Catalan wine exporters. UVIPE estimates that in order to absorb the shift in currency valuations, regional exporters have incurred charges of up to 10 million euros.

Ribera del Duero to become D.O.C.

Reported in Decanter (but nowhere I've been able to find so far in the Spanish media), the Ribero del Duero region will in 2008 become a D.O.C. or denominación de origen calificada, joining Rioja and Priorat as the only such designated areas in Spain of the 65 established D.O's.

What's the difference between a D.O.C. and a D.O.? Greater regulations covering all aspects of wine production, with the intended result being a greater perception of the quality of the region.

Will the increased regulation and the expense involved be worth the effort? Only time (and the market) will tell, but I doubt it. A wine consumer is more likely to be impressed by a good review or recommendation of a particular brand, rather than an extra "C" on the title of wine's place of origen. As new world producers have clearly shown, less regulation and greater freedom to make wines customers want to drink have led to their impressive growth.

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.

Viñedos de España: new designation to go ahead over regional objections

In a report published in the La Vanguardia newspaper on August 5, it was announced the the Spanish Ministry of Agriculture, Fishing and Food (MAPA, in its Spanish acronym) has approved the new geographic designation Viñedos de España (previously commented upon in this blog), which can be used by wines which heretofore had been designated as Vino de la Tierra.

This new designation will go into effect during the 2006-2007 season, which officially begins in August with the start of the grape harvest. However the regions of La Rioja, Catalunya, Galicia, the Basque Country and Castilla y Leon do not support the creation of this new area designation and will not be participating in it. As these regions are some of the most important wine grape producing regions in the country, their rejection could seriously undermine the Viñedos de España designation. Without them, the designation can never be, as had been hoped by MAPA, a truly nationwide concept for a recognized quality standard.

Quoted in the La Vanguardia article was Mr. Joan Santó, head of the viticultural section of the Unió de Pagesos, a growers' association in Catalunya, who said: "Viñedos de España is a designation that is a direct assault on the model for the sector that Catalunya created in 1999 when, by majority consensus, the Catalunya D.O. was created. The Ministry has not been paying attention to the present realities in the sector and this decision only favors the interests of the Catalan agro-industry, which is made of three large companies, and which, furthermore, is harmful to the other eleven D.O.s that exist within Catalunya."

As a group, the opposing regions have complained that the Viñedos de España designation will confuse the consumer, harm the sale of wines produced in Denominaciónes de Origin and will negatively standardize Spanish wines.

Viñedos de España: new wine regional designation

On June 21st, Elena Espinoza, the Spanish Minister of Agriculture, announced that a new regional designation for wine production is about to be created which will be termed "Viñedos de España" or Vineyards of Spain. This area would provide a "catch-all" regional designation so that producers can label their wines with the varietals used and the vintage date, something that would be prohibited for all non-D.O. wines under the proposed new E.U. wine regulations.

Spanish Wine Federation (FEV) is supporting this measure as a way to bolster recent overall drops in Spanish wine exports, the majority of which are made in bulk from non-D.O. regions.

Napa or Somontano?

At yesterday’s Barcelona Wine Festival, there was an interesting exchange at one of the sessions.

When introducing Javier Santafe of the Viñas de Vero winery of the D.O. Somontano, moderator Paco Campo said that Somontano could well be considered the Napa of Spain. This prompted a quick-witted rebuttal from Mr. Santafe: “In our opinion, Napa could be considered the Somontano of California.”

Further evidence that wineries understand that comparisons are being made on a global scale as never before.

D.O. Uclés tasting update

The Director of Regulatory Council of the D.O. Uclés, Victor Zaballos, just informed me that, unfortunately, the tasting competition scheduled for June 19th has been postponed.

As soon as it is rescheduled, Tempranillo will carry the news.

D.O. Uclés: Calling all tasters!

On June 19th, one of Spain's newest Denominaciones de Origen, the D.O. Uclés will be hosting its first tasting competition in the town of Uclés, Spain. The organizers plan to make this an annual event.

The competition will test the abilities of the competitors to identify wines by vintage, grape variety and coupage, among other aspects of wines. In addition, the judging panel will be looking for the taster's "originality" and abilities to describe the facets of the wines. Top prize is 1,800 euros.

About the D.O.
The D.O. Uclés is located in central Spain and was created as a D.O. in 2005. The entire area under vine is 175,000 hectares, but of this only 1,500 hectares of vines are qualified for use in the wines of the D.O. The varieties approved for use are: Cencibel (yet another alias for Tempranillo), Garnacha Tinta, Cabernet Sauvignon, Merlot and Syrah. Only red wines can be certified as D.O. Uclés wines, that is to say that wineries are not prevented from producing white or other types of wines, but these other types will not receive D.O. certification.

The D.O. is divided by the Sierra de Altomira mountain range. The eastern half of the D.O. has an altitude ranging for 500 to 800 meters, and the western area ranges from 600 to 1,200 meters. Rainfall averages less than 500 mm per year.

Wineries: at present, there are just eight wineries in the D.O., of which I have tasted the wines of just one, Finca la Estacada: their 6 month Oak aged Tempranillo, which I found to be a very lively and attractive younger wine.

La Rioja Alavesa - a return to youth

In last Saturday's El País newspaper, noted wine writer Carlos Delgado, wrote about the 2005 vintage of wines from the Rioja Alavesa region made by carbonic maceration.

The D.O.C. La Rioja is famed for its subtle, well-aged wines that are in complete contrast to today's craze for fruit-forward, high alcohol wines. Mr. Delgado makes the point that the pressure of high grape prices leads producers to make aged wines (that can command higher prices), which makes for a lack of younger wines, which are the first windows onto the caracteristics of a particular vintage. The boom in popularity of young wines made by carbonic maceration is overcoming this tendency. At Primer, a show of wines made by carbonic maceration held last December in Madrid, the majority of entries came from La Rioja , and in particular, the Rioja Alavesa region.

In his article, Mr. Delgado deems 2005 to be an excellent vintage, with a greater harvest volume than 2004. 2005 has a great aromatic potential, but the possible risk of imbalance between acidity and alcohol levels; something which could affected aged wines more than the young, "CM" wines.

Of the 6 Rioja Alavesa wines featured, Mr. Delgado gave highest marks to Aladro 2005 and Nobleza 2005 for the intensity of their aromas and overall balance.

For more information on the Rioja Alavesa: http://www.rioja-alavesa.net/

And an upclose map: http://www.alava.net/agroturismo/rioja.html

Changes in Cava D.O.

Appearing in Barcelona's La Vanguardia newspaper on Sunday July 24 was an article on the Regulatory Council of Cava, which is the agency that oversees the Denominacion de Origen Cava, which produces Spain's traditional method sparkling wine.

Last year the region produced 221 million bottles of Cava and in the last 8 years exports have increased by 142%. Consumption in Spain continues to expand, last year growing by over 2%.

The Council has applied for conversion of the region from a D.O. to a Denominación de Origen Calificada (D.O.C.) which would further estabilish the high standards of quality among the various grape growers and Cava producers.

There are no plans to expand the areas in the Cava D.O. but there are moves afoot to permit the use of Pinot Noir in "white", that is so say, not rosé, cavas. The present rule against Pinot had caused the industry leading Codorniu Group to remove their Raimat sparkling wines from the Cava D.O. The Raimat sparkling wines are sold as V.E.C.P.R.D. (or Vinos Espumosos de Calidad Procedentes de un Region Determinado, which means Quality Sparkling Wine from a Designated Region).

Additionally, the conditions for designating a Cava as a "Reserva" will require 15 months of aging. For "Gran Reservas", 30 months of aging will be required.

Vinos de la Tierra de Castilla

In recent years the number of regions in Spain using the Vinos de la Tierra denomination has grown dramatically. Currently there are some 31 such regions. The concept is similar to the Vins de Pays of France and, according to Spanish law, is seen as sort of transitional term for areas that can, after 5 years, apply for Denominación de Origen status. However, many wineries in Vinos de la Tierra areas have relished the greater freedom than exists under the D.O. system to produce grapes and wines as they wish. The result is wines that are more innovative and exciting than those of D.O.s.

Once such region is the Vinos de la Tierra de Castilla. This region is located in central Spain, the Spain of Don Quixote, noted for its hot, arid plains. The V. de la T. de Castilla was formed in 1999 to take in those areas outside of the several D.O.s in the area. The region as a whole has 600,000 hectares (1.48 million acres) of vineyards, which represents nearly 6% of the world's vineyards.

In a recent tasting done by Mi Vino magazine (June 2005 - edition nº 98) some 260 wines from the V. de la T. de Castilla were sampled. Their list of the most outstanding were:

Aresan Nueve Meses 2002
Ego Primus 2003
Gran Calzadilla 2000
La Estacada Syrah 2003
Pago del Alma Tempranillo 2002
Quercus 2002

D.O. Somontano

Hugging the southern slopes of the Pyrenees mountains is the Somontano D.O. The main growing region is concentrated to north of the principle town of Barbastro. The climate of this mountainous region is well suited to wine production with low humidity and a wide day/night temperature flux in summer.

This formerly neglected wine region has grown to 20 wineries and 1,800 acres of vineyards. Just 2 years ago there were 11 wineries and 1,300 hectares of vineyards.

The region is home to the red grape variety Moristel, which is very fruity and lends itself to the production of young, non-oaked wines. In the past few years, Somontano has become increasingly noted for its Cabernet Sauvignon and Merlot wines.

The leading winery of the region is Enate, which was founded in 1991. Enate has won a strong following for their Merlots and Cabernets, as well as for their oaked Chardonnay (until recently use of oak for white wines had been something of rarity in Spain, and generally the oak treatment here is done with a light, judicious touch).

Another important winery in Somontano is Bodegas Pirineos, which is a cooperative of some 200 member growers. This winery produces a range of blended reds using Tempranillo, Cabernet, and Merlot, as well as single varietal wines of Moristel and another local grape Parraleta.

One my favorite finds in recent years has been the red wine from Bestué. The winery was founded a few years ago by family with a long history (since 1640) of grape cultivation.

DO Empordà – Costa Brava:

The Empordà – Costa Brava Denominación de origen (appellation) is located north of Barcelona, between the French border and the rugged Costa Brava on the Mediterranean. The terrain ranges from low-lying farmland, to rolling hill country, to the ridges of various minor peaks in the area. In the foothills, the soil is infertile, acidic and rocky: perfect for grape vines. The region enjoys abundant sunshine, but is also subject to north winds that can blow so strong that vineyards in area are planted running north to south, so as not to get blown over.

Vinyes dels Aspres is a small winery located in Cantallops, just south of the French border. “Els Aspres” is the area’s popular name, and refers to the harshness of the region, both the soil and the strong winds.

The winery was launched only four years ago with a focus on small-scale production. All the grapes are grown by the winery on 36 hectares and several vines are more than 20 years old, providing greater character than can younger vines. The small size of the vineyards means greater control of grape quality and the ability to harvest when the sugar levels are at peak.

Their range includes a white wine made from acidic Garnacha Blanca (white grenache) grapes briefly mellowed in French oak barrels. These barrels are kept for use in future vintages for their red wine, a blend of the local varieties of Garnacha and Cariñera (Caringan) with Cabernet Sauvignon and Syrah, which is oak-aged for several months.

In a region known for its desert wines, this style is a Vinyes’ speciality. Its is known regionally as Vi de Panses (literally “raisin wine”). This sweet wine is made by letting the grapes dry and pressing them to make wine once they have lost 50% of their volume, fermenting and then aging the wine. The result is a very agreeable, subtle dessert wine

The winery Cellers Oliver Conti was founded in 1991 by two brothers and has quickly established itself as a top quality wine producer. Located just outside of the village of Capmany the winery has 15 hectares of vines. Overall production is limited to roughly 50,000 bottles per year.

Oliver Conti range is limited to one white and one red wine per vintage. The white is a blend of Gewürztraminer and Sauvignon Blanc grapes, aged in French oak barrels. The result is an unusual combination of a sweet and fruity grape with an acidic grape, combined and matured in oak. The red wine is a blend of Cabernet Sauvignon, Merlot and Cabernet Franc. It is an expressive wine that has been wining critical raves (the 1998 red was given a 95 point score in the 2003 edition of Spain’s leading wine guide, the Guia Peñín).

Given the fact the vines themselves are just over ten years old, the best is definitely yet to come from this winery.

The biggest player in the region is the Castillo de Perelada. The company has a winery, a castle (with a restaurant and casino), and a 5 star hotel that features a “wine spa” and a golf course. The spa features health and beauty treatments, including wine baths and massages, that use the products of the winery: varietal wines, such as Merlot, crushed grapes, oils from the seeds, among others.

For those content to drink, Castillo de Perelada makes several styles of red, white and sparkling wines. The most distinctive of the reds is the Castillo Perelada Ex Ex, made from Cabernet Sauvignon, Merlot and Garnacha, followed by the Gran Claustro. Their signature cava bears the same name: Gran Claustro. It is a “brut nature”, which has nearly no residual sugars and is drier than “brut”, and is a blend of Chardonnay, Macabeo, Parellada and Xarello. This combination of the three traditional cava grapes plus the famous, more fruity and complex Chardonnay results in a crisp and well balance sparkler.

There are several other wineries of note, such as Mas Serra, Celler Espelt and Castillo de Capmany, to name but three more.

Penedès Quality: Qalidès

Recently, nine wineries from the Penedès region have joined forces in the name of quality.

Led by Miguel Torres one of Spain's leading wine producers and exporters, this association is dedicated to protecting the environment and the promoting the fine wines of the Penedès. The region produces not only very enjoyable young and fruity white wines as well as cava, Spain's traditional method sparkling wine, but also some top notch reds. To quote the association's president, Joan Huguet of the Huguet de Can Feixes winery "a great countryside must be able to produce a great wine". The founding member wineries are, in addition to Torres and Huguet de Can Feixes: Jean Leon , Can Ràfols dels Caos, Mas Comtal, Albet i Noya, Gramona, Jané Ventura and Cellers Puig & Roca.
Hopefully the Qalidès association can help bring more awareness to these excellent wines.