Wine News Archives

US and EU winegrowers hit back at Trump’s proposed Tariffs on EU wine

US members of international grower organization Wine Origins Alliance have written to the government’s trade representative, calling for the scrapping of proposed tariffs on EU wine.
In a letter to US trade representative Ambassador Robert Lighthizer, the group strongly urged him to exclude wine and wine products from the list of goods that may be subject to WTO tariff countermeasures, as a result of a WTO dispute over EU subsidies to Airbus.

It echoes a similar letter from the organization’s European contingent to the European Trade Commissioner, signed by representatives from Burgundy, Bordeaux, Champagne, Chianti, Rioja, and Jerez.

The Wine Origins Alliance comprises 25 organizations across 10 counties, which together represents nearly 80,000 wineries and growers, who are focussed on promoting and protecting wine growing place names worldwide and preventing the purposeful misuse of geographic names.

The appeal after the US government identified $21 billion-worth of EU good imports, including wine and cheese, which it said could be subject to tariffs in the ratcheting up of trade hostilities between the two blocks in response to the EU subsiding aerospace and defense group Airbus. Last year the WTO ruled the EU subsidies to the company were illegal in the culmination of a 14-year dispute between Airbus and US company Boeing.

In response the EU is also expected to authorize tariffs countermeasures on US-made wine and other products.

The letter pointed out that the US and the EU are two of the world’s leading wine producers and last year collectively exporting $28 billion of product and urged the US trade representative to remove wine from the list and work with the EU to reduce and eliminate tariffs.

“We urge you to work with the EU government to reduce or eliminated wine tariffs, not raise them. Promoting wine exports by removing trade barriers is critical to driving industry growth and creating new industry jobs,” it said.

Signatories of the letter include the President of the Napa Valley Vintners Association, Linda Reiff, Sonoma County Vintners’ executive director Michael Haney, Oregon Winegrowers Association CEO Tom Danowski, alongside representatives from Pasa Robles Wine Country Alliance, the Long Island Wine Council, Santa Barbara Vintners, the Missouri Wine and Grape Board, and Willamette Valley Wineries Association.

In a similar move, the presidents of the Conseil Interprofessional du Vin de Bordeaux (CIVB), Consorzio Vino Chianti Classico, Bureau Interprofessional des Vins de Bourgogne (BIVB), Consejo Regulador DOCa Rioja, Comité Champagne and Consejo Regulador del Vino del Jerez urged the EC’s Commissioner for Trade Cecilia Malmström to exclude wine from any list of goods on the tariff countermeasure list.

Source: Drinks Business

Chablis Invests €4.8M in innovative methanation system for winegrowers

The BIVB in Chablis has confirmed that the Chablis Winegrowers Union is to implement a new innovative methanation system that will recycle all by-products from the winemaking process. This is a breakthrough in the region’s move toward greater sustainability.

The £4.8m methanation facility is expected to be up and running by the fall of 2021. It follows a six-month study in Belgium to test the feasibility of the project using a ‘pilot’ system, with wine by-products brought over from Chablis to find the most efficient method of methanation.

Methanation is the conversion of carbon oxides and hydrogen to methane and water through hydrogenation. It can also be used as a means of producing a synthetic natural gas, and as a way to store energy produced from solar or wind power, which would allow it to serve as a potential carbon capture mechanism.

Last month the Union’s general assembly voted in favour of the project.

The methanisation processing area will be located in the south of Chablis where 700 winemakers, belonging to the Union, will be able to bring the by-products of their winemaking to be processed.

Grape pomace will be passed through a machine to separate any seeds, which research found unsuitable for the process. These will instead be set aside for alternative uses such as cosmetics.

The remaining wine pomace will then be placed in covered silos where the fermentation process begins; then finally into the methanisation machine.

The biogas (gasses) produced by the machine will be directly injected into the Gaz Réseau Distribution France (GRDF) circuits, the natural gas distribution network in France. The remaining product left in the machine will be sold as fertilizer.

Louis Moreau, president of the BIVB Chablis, said: “We are proud to be one of the first wine regions to put in place a methanation process of this kind and on this scale as well. Sustainability is a key focus for Chablis and the rest of Bourgogne so our winemakers are always looking at new innovations on both small and large scale projects.

“We believe the new system will be a success and with a younger generation of winemakers who have traveled the world for their studies and then come home to Chablis, we will work hand-in-hand with them to bring in new practices to protect the environment and our terroir.”

https://www.chablis-wines.com/what-is-the-bivb/what-is-the-bivb,1872,7709.html?

Soave Adopts Cru System

After a lengthy process that started a number of years ago, the Soave DOC has officially adopted a hierarchical, Burgundian-style classification system, where ‘cru’ sites sit at the top of the quality spectrum.

The new DOC regulations will feature 33 distinct cru areas that have been selected for their potential to yield grapes of superior nature.

As of next vintage, these are the crus (officially called Unità Geografiche Aggiuntive) you will find on Soave labels:

Castelcerino, Colombara Froscà, Fittà, Foscarino, Volpare, Tremenalto, Carbonare, Tenda, Corte Durlo, Rugate, Croce, Costalunga, Coste, Zoppega, Menini, Monte Grande, Ca’ del Vento, Castellaro, Pressoni, Broia, Brognoligo, Costalta, Paradiso, Costeggiola, Casarsa, Monte di Colognola, Campagnola, Pigno, Duello, Sengialta, Ponsarà, Roncà – Monte Calvarina.

Most of the crus, whose vineyard area covers 40% of the appellation, are found on Soave’s hillsides, with 29 out of 33 located within the prized Soave Classico area.

The selection process, which started back in 2000, involved a number of factors that affect fruit quality, including altitude and gradient of the hills as well as training system.

‘The approval of the crus is another great step forward for our appellation,’ commented Aldo Lorenzoni, director of the Consorzio di Tutela del Soave. ‘The place of origin of the grapes has always been a crucial part of our communication strategy.’

Sustainable, Organic, Lower-alcohol and Alternative Wine go Mainstream

A recent Sola Report from Wine Intelligence highlights that there is a huge opportunity for the industry to produce more alternative wines.

The Sola Report is an acronym for the alternative wines sector, which includes sustainable, organic, lower-alcohol and other alternative wines. The Sola Report tracks how the alternative wine market changes from year to year, and includes an opportunity index, which crosses 11 markets and 12 sub-categories – this determines where Sola wines have the greatest chance of success.

Emily Carroll, who compiled the report for Wine Intelligence, said the “prominence of the organic movement continues to be evident: organic wine tops the Sola wine opportunity index for the second year in a row, most likely due to the popularity of organic food across the world.

“Following closely behind is Fairtrade wine and generic concept wines ‘sustainably produced’ and ‘environmentally friendly’— all three types associated with a blend of social, economic and environmental responsibility.”

She said increasing awareness among consumers for alternative wines was the result of a “fundamental shift in consumer attitudes, led by the younger generation. What was once seen as ‘hippy’ is now the mainstream, with many consumers, particularly those under the age of 45, adopting socially, environmentally and economically responsible habits. This requires companies to act more ethically responsible and more transparent, which naturally also applies to the wine industry”.

She added that “younger wine drinkers present the most opportunity for alternative wines due to their open-minded attitudes and willingness to invest time, education and money into their health. Young wine drinkers are not only more likely to purchase alternative wines such as organic, Fairtrade or sustainable wines compared with older drinkers, but are also more willing in general to pay a premium for wine in the off- and on-trade”.

However, she said, the challenge would be to “engage this cohort with the alternative wine category, as younger consumers are very much attuned to other drinks categories, like craft beer and gin, and also are less likely to be participants in the alcoholic beverage category to begin with”.

She also said there is “less appeal for alternative wines with more complex titles including orange or skin contact wine as well as biodynamic wine. Interestingly, even though veganism and vegetarianism is on the rise, these two Sola wine categories rank the lowest in the 2019 global Sola wine opportunity index”.

The first Sola report was released in 2018. It surveyed consumer sentiment towards 12 alternative wine types in 11 key wine markets, looking at awareness, purchase intent and affinity towards alternative wines. The 2019 report has been expanded to include vegetarian wine and five new markets and is “now representative of 250 million regular wine drinkers from a broad spread of geography, culture and economic development”.

European Wine is dominating Canada

New statistics released last month by Canada’s national statistics agency confirm that wine is increasingly gaining popularity. Canadian consumers’ attention seems to be drawn to foreign products. Statistics show that 70% of the total wine consumed in Canada between 2017 and 2018 was imported.

Canada is a market that the European Union cannot underestimate. While beer seems to retain its position as Canadians’ favorite alcoholic beverage (39, 68% of the value of total alcoholic beverages sales), Canada’s national statistics agency has data to confirm that wine is not far from gaining first place (32,43%). This is a tendency arisen within the last 10 years: wine sales in Canada have been consistently increasing year on year (averaging 4,2% a year; 4,6% compared with the previously investigated fiscal year, 2016/17). At a global level, analysis by Organisation Internationale de la Vigne et du Vin (OIV) on the state of the viticulture in the world market has found that in 2018 Canada was the 13th country in terms of wine consumption, but the 6th for volume of imported wine (joint with the Netherlands). As mentioned above, Canada’s significant wine import rate is confirmed by Canada’s own data, which reports that 70% of the wine consumed in Canada between 2017 and 2018 was of foreign origin.

The Economic and Trade Agreement (CETA) between Canada and the European Union played a fundamental role in imported wine’s conquer of the Canadian market. The treaty was provisionally applied on September 21th, 2018, and eliminated 98% of the exporting tariffs between the signing countries. The CETA also signified the official acknowledgment of European denominations of origin, a remarkable achievement for high-quality European products. For the first time, the treaty banned the sale in Canada of imitations of 140 European delicacies, making European designations of origin an unequivocal guarantee of products origin and craft.

However, protecting these products from imitations is not enough. In order to make the most of this opportunity, the European quality system needs to be demystified and communicated to the ordinary customer. According to NGO participant Kurtis Kolt, wine consultant and sommelier, wine experts are aware of the superior craft of EU products marked with quality labels, but the difference is still unclear to the general public: It should not be taken for granted that everyone knows what PDO and PGI mean.

This is precisely why the European Union has created educational programs such as Native Grape Odyssey. Comments from participants confirm that the full potential of European wines in the Canadian market is still to be expressed: “Wine consumption, sales, intrigue and interest are on the rise in Canada currently and it is a great time for the premium wine market. Wine is currently on trend in Canada and it is a great time to focus on more niche or lesser known wines varietals and regions.“ commented Jeffery Osborne, Sales Manager at Grape Brands Ltd. and sommelier.

The situation seems promising for European exports in Canadian market, but these products need to be properly introduced and explained to the consumer. This is a role that only people of authority within the market can undertake. The above-mentioned 25 wine experts have thus found in NGO a way to deepen their knowledge about the subject, so that they can effectively express it to the Canadian market. Joanne DiGeso, wine educator, stated that NGO has perfectly identified what is needed to take European wine sales in Canada to the next level: «I think that NGO is doing great work at educating influencers, sommeliers and educators on the broader range of Italian wines. This, in turn, should ‘trickle down’ to consumers.» Sommelier Jeffery Osborne commented further by praising NGO’s educational activities content: «NGO-organised seminars are fantastic deep dives into perspectives on the grapes and wines which we are typically not exposed to by CMS or WSET. »

The success of this first edition encouraged NGO’s organizers to expand the program: large scale events have already been planned for the months to come, and this time NGO will literally bring European excellence to the world, organizing educational activities directly in the target countries.

About: Native Grape Odyssey is a project financed by the European Union and managed by Unione Italiana Vini and Zante Agricultural Cooperatives Union for the promotion of PDO and PGI European wines abroad, in particular in three countries: Japan, Canada and Russia. In order to achieve this, the Native Grape Odyssey educational program will organize wine seminars, workshops and b2b meetings both in these countries and in Verona, Italy, inviting wine experts and influencers from these countries. These events, realized in the span of three years (2019-21) aim at creating awareness about European native wines abroad, in particular, Italian and Greek wines, which share a long tradition and a high standard of quality.

Source:
Native Grape Odyssey (NGO), an EU-financed educational project for the promotion of European native grapes