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| July 11th 2008 |
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| Screwcaps, rosés and other trends |
by Meininger's Wine Business International
Perspectives offers a platform for professionals in diverse places to express their views. In this issue we asked key international players how packaging, new trends and cultural prejudices will affect their business in 2008. What are the threats? Where do the opportunities lie? What are their goals?
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Piero Totis is the managing director of Le Tenute di Genagricola, the vinous arm of Genagricola SpA, which owns 26 agricultural estates, both in Italy and abroad. The seven wine prestigious estates (Torre S. Anna, Torre Rosazza, Borgo Magredo…) alone cultivate 750 hectares of vineyards, situated in Friuli, Veneto, Piedmont, Romagna, and Lazio.
There is currently a great deal of discussion on screw caps. What percentage of your production is currently bottled with alternative closures?
We are testing one line in supermarkets, but have no intention to do so on-trade. We do not think screw caps are suitable to promote high quality wines, but are considering glass closures.
Many of your wines emphasise the varietals. Are your clients asking for single vineyard wines?
Only some advanced European markets value single vineyard bottlings. We once extended our range, but have considerably reduced the offer.
All producers would like to see the general public trade up in price. What motivates consumers to spend more money on wine?
First, of course, you need a large number of potential consumers with higher incomes. After that, interest and diffusion of information become important. Quality must be perceived as such by the buyer who treats himself to a better bottle.
Rosés are a hot item in some markets. How is this affecting your business?
We have noted this particularly in the Anglo-Saxon markets and had immediate success with a sparkling rosé that we offered there.
How does being Italian help you internationally?
Italian wine has a leadership position in two important wine markets, the United States and Germany, but even in Great Britain and Canada attention is high.
Does being Italian have any drawbacks?
Italy has so many medium sized and small wine producers who have been slow to develop new markets, which is why our market share is so low in emerging economies such as China, Russia, Brazil and Mexico, where New World companies have introduced themselves with aggressive advertising programmes and varietal wines at very competitive prices.
After earning an Honour’s degree in Oenology and doing a stint as viticulturist for KWV, JC Bekker has been the winemaker at Boschendal since 1996. Since its acquisition by DGB in September 2005, his responsibilities now include all aspects of wine production.
There is currently a great deal of discussion on screw caps. What percentage of your production is currently bottled with alternative closures?
Twenty percent, but we foresee growth up to 70% in the next two years.
Could you imagine bottling your finest wines with screw caps?
Yes, there is a strong case for aromatic whites to be under screwcap – and we are busy learning how |
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to deal with a reductive environment for red wines that age. Different permeability levels on the liners is a very exciting development in this regard.
Are your clients asking for single vineyard wines?
Consumers want to know what is in the bottle. Single origin wines have value at the top end of the brand pyramid, but this is not client driven at the moment.
Rosés are a hot item in some markets. How is this affecting your business?
This has been a big success story for us. We are trading at the higher end of the rose spectrum with very good results.
How does being South African help you internationally?
South Africa is an interesting place: the people, history, biodiversity and being part of Africa. All these form part of the South African brand promise.
Does being South African have any drawbacks?
We operate in a country that is part first and part third world. This can create production challenges, but the diverse terroir more than makes up for this.
After years with Bouchard Père et Fils, Bernard Hervet became chief executive officer of Faiveley in January 2007. Since then, his focus has been on fine tuning quality and expanding the white wine range, as with the recent acquisition of Domaine Monnot in Puligny.
There is currently a great deal of discussion on screw caps. What percentage of your production is currently bottled with alternative closures?
Faiveley doesn’t use screwcaps, but has experimented with alternative closures for Aligoté and Bourgogne Blanc. Still, being in the heart of Burgundy, we prefer to remain traditional.
Rosés are a hot item in some markets. How is this affecting your business?
We do no rosés.
How does being French help you internationally?
There is an undisputed revival in interest for well-balanced classical wines, a style more often seen in countries with a long winemaking tradition. France is the flag bearer of this movement.
Does being French have any drawbacks?
Our main problems are almost all bureaucratic. Our legislation is too complicated, our administrative burden to complex and our professional organisations lack the structure and solidarity to mitigate between the powers that be.
After studying in Bordeaux, Fernando Chivite returned to his family’s estate in Navarra as winemaker. As the figurative head of the clan, he developed the Arinzano estate, which was recently given official recognition as Vino de pago.
There is a great deal of discussion on screw caps at present. What percentage of your production is currently bottled with alternative closures?
For the moment, very little, but we foresee an increase for specific types of wine. |
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The screw cap is technically a very efficient closure system.
Could you imagine bottling your finest wines, even Arinzano, with screw caps?
No. Besides image and marketing, any wine that requires extended bottle ageing should be closed with a cork. To date, there is no other closure that can do that job successfully.
Most of your wines emphasize only the denominación. Are your clients asking for varietal wines?
No, we do not see a very much interest in varietals anymore. The variety has become complementary information, but is no longer a relevant factor behind consumer’s purchase intent. Instead, we seek to build a branded image for our company within the region of production, be that Navarra, Rioja, Ribera or perhaps one day Rueda.
All producers would like to see the general public trade up in price. What motivates consumers to spend more money on wine?
Not only has the number of different origins for wines grown, but also the offer of premium and super premium bottlings. At the same time, the average quality of the basic wines continues to rise. To stand out in this field is quite a complex undertaking. You must inform, polish your reputation and acquire a ‘social status indicator’ among the knowledgeable in major markets.
Rosés are a hot item in some markets. How is this affecting your business?
As Navarra has been producing high quality rosés from Granache Noir for centuries, we are well aware of this fact. We have launched a new Gran Feudo Rosé that matures on its lees to give the wine more richness and complexity and are introducing a barrel fermented 2004 Chivite Colección 125 Rosé to upgrade a style of wine that for no legitimate reason has long been treated as the poor brother of winemaking.
How does being Spanish help you internationally?
We have been present in foreign markets for a long time, but only of late has the image of Spain improved greatly. I am thus thankful to all those producers who have helped to improve the image our wines over the years.
Does being Spanish have any drawbacks?
For years the international image of Spain was very different from what it is today and this obviously affected the perception of wine. Today I would say that there are no drawbacks. In fact, it is quite the opposite. Spanish wines are more highly regarded in the world than ever before - and for good reason. I don’t believe there is any other country rooted in an old winemaking tradition that is so dynamic and innovative.
Following in the footsteps of John Duval and the legendary Max Schubert, Peter Gago – at the helm since 2002 – is only the fourth head winemaker at Penfolds since 1948. Not only is he vinously savvy, but also a charming gentleman who has written several books on wine.
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There is a great deal of discussion on screw caps at present. What percentage of your production is currently bottled with alternative closures?
All Penfolds’ white wines are now bottled under screwcap - and all reds, with the exception of Grange, are available in screwcap, on a global, market-by-market basis. Numerically that is 39%.
Could you imagine bottling your finest wines, even Grange, with screw caps?
We have bottled trial quantities of Grange under screwcap and continue to evaluate the results. We have also bottled Grange under a glass-closure prototype (not Vinolok) and are very encouraged to date. We continue to look closely at all closure alternatives, including cork.
Many of your wines emphasise the varietals with proprietary brands. Are your clients asking for single vineyard wines?
Many of our clients do ask for single-vineyard wines and these requests have been delivered for many years now: Magill Estate Shiraz, Kalimna Block 42 Cabernet Sauvignon and so on. These wines have a terrific ‘sense of place’. We also offer specific regional expressions and, of course, we also offer multi-regional and often multi-varietal blends. What we’re really offering is choice – an evolved array of very different wine style propositions.
All producers would like to see the general public trade up in price. What motivates consumers to spend more money on wine?
Consumer motivation to trade up with their wine purchase is often driven by the occasion, be it everyday drinking or more special events. If consumers believe they are getting great value for money, which differs from a cheap price, then they will often trade up. Ensuring a wine is perceived as offering great value for money is important. Most importantly, within the fine wine marketplace, absolute wine quality and longevity endorsed by all opinion-makers, and sustained across time and vintage, will always motivate consumers to spend more.
Rosés are a hot item in some markets. How is this affecting your business?
The growth of Rosé in recent years has been matched by growth in lighter white wine styles, with consumer research indicating that they are looking for more refreshing drinks. Whilst Penfolds doesn't make a Rosé, we have certainly responded to this trend for ‘refreshing drinkability’.
How does being Australian help you internationally? Does it have any drawbacks?
Although Penfolds is an Australian brand it is not a brand that is totally about Australia. The brand's provenance, history and heritage have made it what it is today, yet its positioning as a global luxury wine brand transcends its Australianness. Penfolds plays with the best of the New and Old World, so being Australian is neither a positive or negative, it is just a part of the brand. In many global markets, Australia is still ‘the flavour of the moment’, many years now after the 2000 Sydney Olympics and over half a century since the 1956 Melbourne Olympics!!
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