The forgotten valley

The undulating hills are carpeted in gnarled bush vines, surrounded by swathes of pine trees that stretch as far as the eye can see and there is an Alpine-esque feel in the air. The Itata Valley lies about 500km south of Chile’s capital, Santiago, in the region of Bío Bío. Here, quartz-laden soils are home to a plethora of old vines, a far cry from the extensive manicured vineyards found in the central vineyards around Santiago. The vines are wizened, suggesting great age. “But it’s difficult to say, as there are no official planting records,” says winemaker Juan Ledesma of Terroir Sonoro. “But I would guess around 200 years old.” Chile’s old vine heritage is remarkable, yet for years it was neglected and disregarded by the domestic wine industry.

Vines were first planted in Itata in 1550 by Spanish settlers. These were largely País (Listán Prieto) and Moscatel, brought from the Canary Islands via Peru. The unirrigated vines thrived in the temperate, maritime-influenced hills surrounding the port of Concepción. The Chilean War of Independence (1810 to 1821) ravaged the region and led to the fragmentation of vineyards, which remains a key feature of modern-day Itata. Production increased during the 19th century and by 1870 the area relating to present-day Itata and Bío Bío was responsible for 80 percent of total national production. In 2015 it was responsible for a mere four percent of total production. What led to Itata’s decline in importance — and why is it rebounding now?

The arrival of French cultivars around Santiago from 1860 onwards changed the entire industry. Vast vineyards were founded by wealthy, illustrious families such as Undurraga, Cousiño and Errazuriz. Trained and trellised vineyards, along with irrigation systems, became commonplace. Itata’s distance from Santiago, fragmented land ownership and lack of capital wealth became limiting factors on the region, leaving it isolated and largely untouched by the viticultural revolution. Maule to the north marked the boundary between innovation and tradition. The European phylloxera epidemic brought an influx of French and European winemakers that consolidated the Bordeaux-inspired wine culture around Santiago.

Chile’s export-led boom, sparked during the late 1980s, was based around recognised international varieties: Cabernet Sauvignon, Merlot and Chardonnay. Itata was firmly in the second tier, with an unfashionable varietal mix and lack of modern winemaking technology. The region became synonymous with cheap jug wines, grape prices plummeted and many vines were grubbed up, replaced by pine and eucalyptus trees. Itata was plundered by producers from the north, as a source of cheap but decent fruit to be blended away into bulk wines. The region’s fragmented grower base was left at the mercy of large purchasers from the central valleys.

Renewed enthusiasm

Fortunately for Itata, over the past decade global wine trends have seen considerable stylistic and philosophical changes. This has resulted in a renewed thirst for the fruits of old vines and their associated heritage and patrimony, along with an appreciation for lighter and fresher styles. Fourth-generation winemaker Sebastian de Martino explains: “In 2010 we saw Itata as capable of producing wines that were different from the central regions. The old unirrigated vines, cool coastal climate and immense history really grabbed our attention; the results were wines of great purity and freshness that fit perfectly with our drive towards lighter, more drinkable wines.”

It was Cinsault that first attracted de Martino to Itata. The variety was officially introduced to the region in 1940, chosen for being high yielding and to add colour to the thin-skinned País-based wines. Itata is home to 95 percent of Chile’s total plantings of Cinsault, at 600 ha. De Martino first started buying grapes from a handful of growers, before buying a 20 ha estate in 2014. “We firmly believe in Itata and we felt it was important to actively invest in the region.” De Martino was followed by Miguel Torres, who bought 230 ha of unplanted land in 2015. “For eight years we have worked on a strategy of sustainability and rescuing heritage varieties,” says Torres’ head winemaker Fernando Almeda. “We want to preserve traditional viticulture and practices. Itata reflects the origins and birthplace of Chilean wine and culture.”

While acknowledging the importance of Itata’s history, Torres is looking firmly to the future. Research undertaken by the company suggests that temperatures in Chile’s Central valley could rise by 5°C by 2100. The drought gripping regions further north such as Limarí is only set to intensify, and Itata is well placed to cope with the impending climatic change. Average annual rainfall is 1,000mm, compared with just 400mm in Maipo. “We have to start moving south as an industry,” says Almeda.

More than 75 percent of Itata’s 9,000 ha is dry farmed, which for terroir guru Pedro Parra is a key issue. “After many years, I have come to realise that irrigation can truly negate the influence of terroir,” he says. Parra is exuberant about Itata’s potential for producing great wines: “I believe that Itata possesses the best terroir in South America.” Parra is involved in several winemaking projects in the region, Clos des Fous — in conjunction with winemaker François Massoc — and his own label, Parra Family Project.

While de Martino were among the first to pioneer the region, in the past five years a plethora of established names has produced wines from Itata, including San Pedro, Montes, Ventisquero, Undurraga, Carmen, Concha y Toro and Morandé. Concurrently a number of small Itata-based producers have slowly been making waves, including Pandolfi Price, Terroir Sonoro, Viña de Neira and Rogue Vine.
On the surface the signs are encouraging yet while Itata is in a stronger position than at any time in recent history, it faces considerable issues.

Although increased interest in Itata has brought a handful of growers higher revenues, for many the economic reality is bleak. Officially there are 3,625 growers; unofficial estimates are closer to 10,000. Itata’s grape prices are consistently the lowest in Chile — as low as $0.06 per kilo — while very few growers have contracts and are reliant on the spot market, whose prices are set at harvest time. There have long been accusations of collusion and price-fixing from the region’s growers towards the major wineries in the central valleys. Considerable investment in recent years from government bodies such as INDAP, however, has sought to increase collusion among growers. They have formed grape collection centres to bypass brokers and help increase revenues. The aim now is to install winemaking facilities to stimulate and increase production, in a bid to end reliance on grape sales.

The region of Bío Bío is the heartland of Chile’s significant commercial forestry industry, home to 980,000 ha of plantations — 37 percent of the national total. Government subsidies introduced in 1974 to promote forestry led to many growers replanting with pine and eucalyptus. Commercial forestry plantations, along with a commercial pulp mill, installed in 2004 by foresty giant Arauco, have caused tension among the wine community. Grower and winemaker Manuel Moraga of Cacique Maravilla believes; “The single biggest threat to Itata is forestry. It is an environmental disaster that is getting worse.” These thoughts are echoed by sommelier and consultant Hector Riquelme. “Forestry plantations are a huge issue, both on a social and environmental level,” he says. “The industry is not sufficiently regulated — the impact of such a monoculture on viticulture is enormous.”

Plantations are accused of significant environmental impact, including soil erosion, lowering soil pH and adversely affecting biodiversity. High water consumption and plantation densities facilitate the spread of forest fires: plantations are less humid than native forests, meaning fires spread quicker and are harder to control. In January 2017, Chile experienced its worst forest fires, when more than 500,000 ha of land was destroyed, including 100 ha of vineyards. Sebastian de Martino is, however, stoic. “One of the reasons forestry arrived, whether we like it or not, was to bring prosperity to a really poor region,” he says. “We have to accept that both are part of the landscape, and they must co-exist.” Growers also struggle at harvest times due to a scarcity of labour; given the low grape prices, pickers can make more from fruit harvesting in neighbouring Maule. “We have to provide our own labour team when harvesting in Itata,” says Felipe Tosso of Viña Ventisquero. “It’s a very real issue for many in Itata.”

Markets and opportunities

Pedro Parra believes the small producers are key for the region’s future. “Itata must change from being a valley of grapes into a valley of wine again,” he says. “It is happening but we need more growers to bottle their own wines.” Others, including de Martino’s winemaker Marcelo Retamal, believe more cooperation is important: “We need to create a category for Itata, to fuel the movment of micro-producers that is beginning to emerge.” Parra points to VIGNO, a voluntary appelation that acts as a shared trademark by 12 producers in Maule, “VIGNO is the single best thing that has happened to Chilean wine. It has created a leap forward in international recognition and helped growers increase returns.” Rogue Vine winemaker Leo Erazo identifies parallels with South Africa’s Swartland: “The Swartland Independent Producers group has been phenomenal for the region. It’s in its early stages but we are working on plans for a similar group in Itata.”

Astonishingly, until 2015, neither País nor Cinsault were recognised as noble varieties and thus did not qualify for DO Itata status. De Martino sees this as an important step: “The new DO and the acceptance of País and Cinsault should really help Itata, and improve the region’s visibility.”

Chile’s domestic wine consumption is low, at 13.4L per capita. In 2015, more than 70 percent of total production was exported, making export markets extremely important. Erazo confirms that only 10 percent of their wines are sold domestically. Felipe Tosso, however, is impressed with domestic sales: “Our Itata wine has sold incredibly well in Chile as well as Brazil, where it has been extremely popular. We are looking to double our production over the next two vintages.”

Itata rightly claims to be the cradle of Chilean viniculture and can be considered the antithesis of the modern-day Chilean wine industry. Recent signs of regeneration are encouraging, yet there are considerable internal challenges to be addressed. As de Martino says: “Perhaps we need more Itata ‘foreigners’ — people from outside the region who see the value of the place and bring the wines into the limelight.”