Sunday, December 18, 2011

Drawing on examples of sweet wine production in different parts of the world, illustrate how production methods influence the style of the wine.



This essay will discuss the wine making and cellar techniques behind sweet wine making. It will ome up with four different examples of sweet wine making from different parts of the world which are very different from each other yet the result in simple terms are the same, namely: sweet wine. However, the styles differ from each other not only because of grape variety, terroir, and climate but also because of the way that they are produced and made. The essay will look into the classical regions of sweet wine making and present examples from different parts of Europe. Adding alcohol to stop the fermenting must and keep some sugar in the wine is one method of production, it is often referred to as fortified wines. Today widely practiced in several regions around the world such as in Australia (Victoria State) in several parts of the United States and beyond. I wish to draw examples of two fortified wines coming from the same country yet very different in style and taste. Madeira and Port are classical examples how much wine making can influence style and taste while the basics remain the same. Another popular and noble way to produce sweet wine is by so called noble rot (botrytis cinerea) which affect the grapes on the vine and due to this natural dehydration the berries loose water and gain additional flavours which ultimately change the taste of the wine. While the basics are also the same in Tokaj (Hungary) and Sauternes (France/Bordeaux) the technique in the cellar are very much different and so is the style as well. Several other ways exist to make sweet wine from eiswein (ice wine) or stopping the fermentation by chilling or sulphuring, filtration or by simply by adding must reserve (concentrated juice) prior the bottling to the wine.     

Doesn't get much sweeter...or does it?

The longest written history of sweet wine making by the affection of noble rot (botrytis cinerea) belongs most likely to the Tokaj-Hegyalja region in Hungary. Due to the natural conditions (humidity and warmth) botrytis might occur in autumn and picking happens in several “tris”. According to the traditional way of making aszú wines which were labelled from 3-6 puttonyos (hood), the so called hoods or baskets of 25 l are used to pick aszú berries. From these aszú berries a pastry, a mash was made and the size of the traditional gönci barrel 136 l of wine was poured over the mashed aszú berries to let the fermentation commence and according to the number of baskets was the wine classified from 3 till 6 puttonyos. Today this is mostly done analytical, that means more careful way of picking and measuring of dry extract and residual sugars. Yet the way of making aszú (sweet) wines is unique by the technology of making an aszú pastry from the shrivelled berries and using either must, fermenting must or base wine to run this fermentation and either ferment it out in stainless steel and then transfer it into barrels or just do it in barrel all the way until bottling. The Spanish owned winery Oremus likes to experiment with different sizes of barrels during fermentation moving away from the smaller sizes and considering 250 l and more. The questions whether use base wine or fermenting must is also an interesting one as for example Pannon Tokaj prefers to use fermenting must as the believe the CO2 bubbles enhance the aszú berries character in the final wine. 
It's down to terroir, or as I call it "4T"
The style of the aszú wines depending of course of the sweetness levels are usually medium in alcohol (12-13%ABV) high in acidity (7-10 g/l TA), have a slightly astringency and deep, full mouth feel – perhaps due to the fact of maceration- and residual sugar level ranging from 60 g/l (3 puttonyos) to 120 g/l and much more above 6 puttonyos aszús (esszencia, where the alcohol is around 2-5 % ABV).

Tokaji needs some time in barrels too, but what size?
Similar in some ways but without the above mentioned technology are the sweet wines made of Sauternes. Semillon usually the better rotting variety of the two (the other being Sauvignon Blanc and very little of Muscadelle is used these days) provides weight and body to the wine. Sauternes universally higher in alcohol compared to the Tokaji, 13-14% ABV and sometimes even more. The grapes are picked after botrytis attacked the grape pressing happens straight after in the cellar and while the juice contains a high percentage of solids the settling is done only later. Careful use of sulphur dioxide (SO2) to fix the aldehydes the fermentation temperatures start usually lower and is mostly controlled around 20 °C. At Chateau Coutet for example culture yeast is added so lower dose of SO2 can be used from the beginning. Diammonium phosphate (DAP) and other nutrients are added to help fermentation. Fermentation in barrel is more homogenous opposed to the stainless steel tank and the average aging time in barrel is around 18 months from which 60-80% are new barrels. Sauternes have usually a sweetness around 100-120 g/l, slightly higher pH (and lower acidity) compared to the above mentioned aszú wines and also naturally higher in alcohol. And while chaptalization (between 1-1,5% ABV) is allowed to adjust the wine it is also practiced by some wine makers not to mention when the harvest is less favourable the use of cryo extraction is also permitted.   

 
 The Ciron, responsbile for botrytis
Totally different way of producing sweet wine but with an equal long history is the way of making fortified wines, such as Port in Portugal in the Douro valley. Traditionally the port wines (very little white port is made from white grapes) are made from red grapes, the rapid colour extraction is key by making these wines. Therefore short but intensive maceration time happens, several techniques are used the traditional foot trodden method is now more replaced by machines such as robotic lagares as in the major big wineries such as Grahams or Taylors or autovinification tanks which do not need electricity have also been convenient way of making port wine. The basics of fortifications are simple. Fermentation -in this case- is stopped by adding spirit, 77% ABV aguardente so the yeast dies and is no longer able to continue in such a toxic environment, the sugar which is not fermented out remains in the wine, hence the sweetness. Depending on Port wine style there is a huge difference in style and taste between bottle aged Port (such as vintage) or barrel aged (such as tawnys). Tawny’s draw their name from the colour and the welcome oxidization, browning which takes place in the barrels (500-600 l mostly old American oak) over several years, while the vintage ports are aged no longer then a normal red wine up to 2 years in barrel and bottled without filtering. The high alcohol 19-20 % ABV makes the wines not only taste full but also sometimes more spiritful, yet the longer barrel age provides oxidation and more nutty almond, tobacco notes. On the other hand bottle aged port such as vintage might keep a sediment as well as they have not been filtered yet are more intensely coloured when young and more prominent berry fruit, spice and dried fruit due to the rather protective handling.

The Douro, magnificant

Same country and same method as in Port, yet Madeira is very different in style and taste and also different when it comes to look at the “terroir”. Mainly due to the production methods as well. Fermentation is stopped also by adding alcohol, yet a much higher spirit contains 96% ABV to the fermenting must. Some wineries prefer longer skin contact when making medium sweet or sweet wines as Justinos, it increases colour and extraction some use rather gentle methods such as robotic lagares like in the case of Barbeitos. Temperature control is also an important issue for the simpler wines the Madeira Wine Company uses autovinification in conic shape to get a good ratio of skin and must Barbeito on the other hand uses always stainless steel strictly temperature controlled, their wines taste somewhat more towards primeur fruit and less sweet. Madeira receives its characteristics through aging in wood, while the simpler wines (mainly made from Tinta Negra) go only to the estufagem system, where artificial heating takes place, these wines often remain with simple red fruit, and taste slightly cooked and should be consumed without long aging. The more serious wines under go a slower way of aging and oxidation far more natural in the canteiro system where no artificial heat is produced and wines remain for a longer time and can so age, caramelization of the sugars and stabilization of tartrates, acids, polyphenols and several other components which make Madeira unique in taste. In non vintage wines blending is a key point similar as with tawny ports to create a style by fractional blending. Some like the use of caramel others such as Barbeito or Arthur de Barros Sousa the smallest of the island prefer not to enhance the colour in anyway. Madeira ultimately high in alcohol, high in acidity (also because of the soil) particular flavours (caramel, fig, prune, dried fruit and spices amongst them) of the long and heat exposed aging.

The canteiro system, Madeiras trademark, unique
The essay tried to draw examples from different parts of the world, mainly regions which have been producing sweet wines since centuries. While the goal is the same to make sweet wines yet the technology behind it is very much different. Some prefer to make it according to more natural ways and intervene little as possible some use alcohol to stop fermentation and make a robust wine which is sweet yet taste very different. Styles vary according to production methods from fermentation to aging all the way until prior bottling. The style and taste of the wine can be influenced in many different ways according to the wine making.  
May I have my vintage?
 

Wednesday, November 16, 2011

The major red varieties of Bordeaux

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 5

Merlot
-         Earliest maturing red variety
-         Give good results on limestone and clay soils, not really on gravel because is too dry
-         Does not like too early or too heavy water stress (over ripening is a problem)
-         Productive, but very sensitive: shot, berries (coloure, flowering) and abnormal fruit set (millerandage…)

The maximum water stress is on gravel, clay and then on limestone.

Tower of power, Haut Médoc

If the vintage is medium good, its easier to produce on clay, but if hot and dry limestone is better due to the water reserve.
The aromas of Merlot changes according to ripeness and soil. Very delicate grape in Bordeaux.

Green: grassy (green pepper)
Ripe: fruity (cherry, plum) turning to humus, truffle when it ages
Over ripe: fig, stewed prune

2-methoxy-3isobutylpyrazine (IBMP)

Merlot vines
Present in the green grapes of Sauvignon Blanc and Cabernets
Responsible for the typical green pepper aroma of Sauvignon Blanc
Unpleasant in red wines because associated with harsh tannins

In a blend, Merlot gives
- Softness, roundness, velvety attack
Complements the tannic structure of Cabernet Sauvignon


Cabernet Franc or Bouchet

Ripeness slower than Merlot (one week after) but faster than Cabernet Sauvignon
Complements Merlot on clay and limestone soils.
Needs longer water stress than Merlot: it does tolerates also a severe lack of water

There is no good (rain) Cabernet Franc on the left bank. The ripening and the rain make it difficult.
More acid and with lower alcohol potential, and its less coloured than Merlot, it brings down the pH.

Harsher tannins than Cabernet Sauvignon, especially if the water stress is too high or to low. As in Médoc.

Cab.Franc
Cabernet Franc aroma depends strongly on ripening and terroir

Not ripe enough: green, grassy (IBMP)

Ripe: mineral, fresh, stony, menthol, red fruits, flowery with the aging
Cheval Blanc is probably the most famous example.


Blending with Merlot, Cabernet Franc gives
-acidity and freshness
- Tannic strength


Cabernet Sauvignon (king of Bordeaux)
 -Ripeness later than (usually)  Merlot and Cabernet Franc
- Well adapted on compact gravely soils in average vintage and to clay soils in dry seasons
- More difficult ripening on limestone soils: vine grower has to choose a less vigorous rootstock.

Cabernet Sauvignon aromas depends strongly on “terroir” and ripening.

- Not ripe enough green grassy (IBMP)
-  Ripe with mild water stress: very fruity (blackcurrant wild strawberries)
- Very ripe with stronger water stress but not too high temperature: mint, liquorish, wood cedar, cold ashes/chilly, burned wood…


In a blend, Cabernet Sauvignon brings
The "king of Bordeaux"

- The brightness of the aromas (elegance) and colour
- Elegance
- Powerful and freshness
- The bouquet of aging


Petit Verdot (outsider)

From left to the right, Merlot, Cabernet Sauvignon and Petit Verdot
Needs a lot of care, low yields too. Very well done canopy, pruning, green harvest, etc. Bordeaux perhaps will re-discover this variety. Grows horizontal and not vertical.

-Ripeness slower than Merlot and Cabernets
- needs early spots and soils giving moderate water stress


Petit Verdot wines
-Deeply coloured
- Fruity and menthol
- Concentrated, tannic and velvety
- “sweetness without sugar”









Sunday, November 6, 2011

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 4


 Which solutions are appropriate for viticulture in Atlantic climate?
            Soils with poor water reserves

The usable water reserve of the soil:
50 to 400 mm. there is some dry and wet soil in Bordeaux. Very good “claret” can be produced on the driest soils. If the soil is deep, the growth never stops.

Depends on (water reserve):
            Rooting depth (few dozen cm to several m), depth of the soil.
            Possible presence of water table


Soils of Bordeaux in a box
If you producing quality grapes in hot climate and dry conditions you need deep soil without irrigation. High quality grapes in rainy climate, thin soil, 1-3 meters


Very compact soil. Will the water ever drain here?!

Different soils in Bordeaux
Deep sandy clay alluvial soil – like in Medoc, black sand, forest tree.

“Black sand” rich in organic materials  
Sands and clay where the roots of the vine can grow. Not the best soil for the vine.    


Sandy soils with some gravel 
Some gravel at the surface: 0 cm
Sand colonized by the roots up to 3 m depth – not a very good soil for stopping the growth of the vine early. Its more or less OK for Merlot, but not for Cabernet Sauvignon.

The BEST soils of Bordeaux are…

Limestone soils, with a good amount of clay in the soils and gravelly soils generally have much shallower rooting depths and much poorer usable water reserves (50-200mm) – low.
Soil is a water reserve but gives only slight amount of water during summer.

Very good soil is a combo between gravel and clay. Mainly for Cabernet Sauvignon.

Superficial limestone soil on “Calcaire á Astéries”

Sandy level
Clayey sandy level :                 Limit of the roots
Bed rock: sea shelled limestone

The vine roots are blocked by the limestone bed rock they absorb the water contained in the micro porosity of the rock



Clayey soil “Molasse de l´Agenais”

Professor Denis Dubourdieu with his presentation

Level worked by plough: top bit

Retreating fissures. They can crush the roots when the clay swells after winter rain

Elevated proportion of clay in the depth (more then 40%)




Gravely soil in compacted level. Ancient alluvions of the Garonne
-         Ploughed level
-         Poorer clay level
-         Clay enriched level, concreted compact gravels



Application to the specific conditions of Bordeaux
 Soils with poor water reserves (<200 mm)
 Pure loess soil, not in Bordeaux...

A large canopy to encourage mild water stress:

Evapotranspiration of 1 ha of vine in Bordeaux 11000 to 15000 m2/ ha of leaf surface is necessary to achieve sufficient water stress to slow down and stop vine growth during ripening. The leaves have two roles, to give sugar and to produce metabolism, and the second more important is to pump the water that the vine stops the growth at the beginning of the ripening, and if the canopy is not so big, there is too much of water in the soil at the beginning of ripening.

1 ha of vine can evaporate
0.2 á 3 mm / day in the soil. In some soils the water reserve can be 50 mm if there is maybe 20 days at 2 mm / day of evaporation there is no more reserve after 20 days, then the growth stops. There is a reason why July is important for red in Bordeaux. When there is no rain, the vine can stop the growth. But if there is a lot of rain, vintage can become a problem.

End of July, is sunny and dry, the vine stops the growth, 2008 the vintage was not so bad, due to the months of July for instance.



Friday, October 28, 2011

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 3



What is a good grape?

Its not the natural state of the grape, a ripe grape is considered as a good grape from the wine making point of view.
To produce “good” grapes the vine must be cultivated in a way that limits both vegetative growth (vigour) and fruit production. Not only the fruit production should be limited as you increase the vigour, you must do both. Depending on the variety of course.

In Provence, like in Bandol. You can produce rosé or red, but not with the same vigour. Because the sugar contant would be too high, and the tannin, anthonycanins would be to high (skin) for the rosé. Depends on the variety and the colour of the wine.


Limiting yields achieved by:
- Pruning the vine in winter
- Bud pruning in spring (elimination the buds in spring)
- “Green harvest” –thinning- before ripening
- But also by the fertilization of the soil. The work on the soil, by ploughing and cutting the roots. You have vines of leaf and vines of roots.

Clearly too much

When the roots are at the surface, they’re very sensivitve to the driness, especially in summer. If cover crops are too many this can be a problem too. But also to the rain in the ripening season. Growing vine with deep roots, to plough the vine is to build a stronger taste.

Controlling the vigour of the vine is so important in determing the quality of the grapes then in limiting the harvest

When the vine is too vigorious

- Vine produces
o abundant foliage
o shoots
o roots
- Grapes are:
o Not so sweet
o Acid, lack of colour
o Contains astringent tannins
o Leafy rather than fruity aromas

Autumn in the vineyard, Alsace

Migration of photosynthesis by-products

Young leaves
Adult leaves
Grapes

If the vine continues to grow during and after –veraison-, vine and fruit compete for their allocations of nutrients produced by photosythesis in leaves (lost) during ripening. For red wine.

White wine (also rosé), needs less tannin in the skin and no colour, less sugar and lower pH, higher acidity. The stop of the growth occures later, but not at the harvest, but maybe 2 weeks after the end of veraison.
Higher vigour in white grapes then in red grapes.

To obtain quality (red) grapes it is above all necessary to control the vigour so that growth stop just before “veraison”.

Quality wine production is based not only on restraining the vigour of the vine but also by encouraging the concentration of photosynthesis by-products in the grapes
Some Malbec vines in Bordeaux


Water and nitrogen: main parameters of vine vigour


The climate provides water, which is stored in the soil and the cycle is given by the evatransporation. We can control the water stress (pressure chamber- leaves inside a box).

The pressure (by nitrogen) at which the sap begins to come out correspond to the water potential

Leaf water potential: ψb
Water status of the vine at the end of the night or during day stem potential. We cover the leaves for 1 hour, cut them and measure the stem potential.

Stem potential
Water status of the leaf in balance with the stem water potential during daylight hours

Stem potential corresponding to moderate water stress:

Slowing down if vine growth: - 0,6 Mpa
Stoppage of the growth: - 1,2 Mpa

Dawn over the Cabernet Sauvignon in the Médoc

Effect of nitrogen (another effect of vigour) supply on grape quality

- High nitrogen supply:
Low quality of red grapes (because a lot of malic acid, low anthyocinan, hars taste)

- Too low nitrogen supply:
Less aromatic white grapes (poor quality), the tannin of the skin is to high, acidity is too low, bitter taste, pH too high, aroma potential low.

Wednesday, October 19, 2011

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 2

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 2
Aging potential
- Expensive wines have always been wines with “aging potential”
- A wine with “aging potential” is not simply a wine that maintains its quality over time –it develops personality and improves with age.
- To sell a wine at a certain price implies that one is selling its future. The future of the taste, but also the future of the value.

Wine with aging potential
What are the natural conditions to produce a special, local taste in the world?
Grape varieties give their finest expression when they have reached full ripeness, at the end of a long vegetative cycle. Slow ripening gives the best wine. When it is fast, the wine is most likely less special, not bad, just purely very similar to others for instance.
- Unripe (green) grapes make always poor wines
- But over ripe (e.g. cooked by the sun) grapes produce wines which are extremely similar and have only a very limited aging potential
- Varieties grown at their climatic limit, means high quality. It not a question of climate, but the adaptation of the variety to the climate, Bordeaux is a good climate for certain varieties. North of Bordeaux no regular maturation even for Cabernet Franc. The “limit” is key!
- The characteristic feature and value of a wine can therefore only be obtained in limited situation.
- “Terroir” is often a natural handicap (and not a gift of the nature) which has to be overcome
- When the vine is easy to grow , the wine is boring to drink
- When the vine is hard to grow (conditions), when there is a difficulty and challenge, the wine is exciting to drink.
“No conditions, no vintage, no ability to age."

Not quite there yet
In Bordeaux, for red wine producing vineyards, the handicap is the Atlantic climate’s high level of rainfall. Rain very often.
- soils with low water reserves (gravel, clay, limestone) while gravel is the driest, the variety must be adapted to the water reserve.
- encouraging the evapotranspiration of the vine by a large foliar surface, evaporation of the water by the vine due to the large canopy (e.g. 10000 vine/ha, 15000 m2 of leaves)
To plant very densely in the world with low water and irrigate will be a problem for some regions in the world.
The taste of Bordeaux
- a vivid colour with slow evolution, not the deepest or blackest colour. Its “redy, deep ruby”. “Aging means you look reasonably younger then your age.”
- Fresh (freshness of tannin without astringency), complex fruitiness, which during ageing changes into a bouquet of reduction (absence of ethanol)
- velvety on the first taste, concentrated and silky on the finish
- Tannic freshness without astringency and sweetness without residual sugar (perception)

The colour of Bordeaux (when young)

How important is technology (thinking of RO, and others)?
Knowledge is more important than technology. To know the rules, the mechanism of the nature is more important than the machine in the winery. Wine should not be a result of technology. The process must be adapted to the idea of the taste, you need the taste of the spot and this will become more interesting with time (in bottle). The wine is the result what I want to do. Hence technology without knowledge is the worst thing.

Tradition vs. technology
During the last 30 years, unfortunately the vineyards of the world have been developed in warmer climate, and now that the climate is warming even more…mistake. The situation is not easy, to produce a typical wine under such conditions. Many wines, but not many tastes.
Wine is not just a subject of talking, we need people to drink wine as well.
3 % of the Bordeaux is wealthy, 50-100 people perhaps. But it’s more then that, over 100.000 ha, lot of players.
Crazy idea – that the best wine of the world can exist. This is the most stupid idea; there is no best music, or best painting, no best wine.
There is only 1 original and 1000 copies; the copy of the copy of the copy will hide the taste of the original. Example: Chardonnay.

Monday, August 1, 2011

Value and taste of premium wines on the global market, master class with Professor Denis Dubourdieu – Part 1

The title of the main seminar held for the master of wine students at the University of Bordeaux with Professor Denis Dubourdieu of the Faculty of Enology. The subtitle highlighted the role of the bordelaise, part 1

Too much wine is produced, or perhaps not enough people to drink it? You decide. Or is there simply too much vineyard planted? Some places simply do not fit vine, but other cultures.

A surplus of wine supply

- Sharp expansion of wine growing areas

- A decline in demand in European producing countries (France, Italy…)

- Insufficient development of the demand in the new and hope full market (USA, Asia, Russia, UK, northern Europe)

Asia a new hope for the wine industry in the world. You clearly see this picture emergint in the fine wine market..

Increased competitions between producers. Every year the competition gets stronger. The result of this is more or less there are lots of different labels, and bottles. But just few really taste different.

The reasons for this:

Standardization of wine styles

- Worldwide use of a limited number of grape varieties, perhaps only 200 different varieties, but the majority is 10 (mostly French).

- Industrialisation of winemaking process, fast food, like fast wine…it all taste similar.

- Sweetening

- Wood chips, etc.

Fall in prices and margins, the competition is getting tougher.

Creation of value is the major challenge. When all the wine have all the same taste, the market will only appreciate the cheaper ones. And cheap wine will be cheap where ever you go.


Fine wine, value closed but visible

The less expensive, larger volume. The more expensive become only a handful.

Everybody knows how to produce large quantities of low cost wine in many regions of the world. What do you need?:

- Hot and relatively dry climate (sun), if you have no sun and it rains you cannot command to stop the rain, but…

- Possibility to irrigate, but you also need water supply (good and stady water)

- Low cost labour (key for the low price)

The most important thing today and in the future will, be irrigation. It is strange but the, biggest area of vineyard which was planted in the last 30 years in countries have the lowest water supply or its declining. South of Italy and South of Spain, Australia, California. If you don’t give value for vines which are hard to work on (mechanization, such as Northern Rhone, Mosel, etc.) they will disappear.

Give value: technique, money and business, time you especially you need a lot of time. And it’s not so easy, important to know the origin, the explanation of the value of the wine. How the high price wine is born. Customers are very important, as if you have great musician who are preparing to give a great concert but nobody goes there…the value won’t be recognized or even appreciated. Same happens with the wine…you need the people, be educated!

Technical, financial and commercial skill. What is a good wine? If you have only the artist, or you have only the customers it stops. You need the customers and the merchants not just the winemaker.


The city of Bordeaux, and the wheel goes round and round

The value of a wine stems from an encounter of 4 types of people highly demanding in terms of quality

- Producers

- Customers

- Merchants

- Critics, the media (it’s rather a recent thing, but they become more and more important)

The wine is always the customer’s child. Put it simply the boss is the customer.

The wine is a son of the market in Asia, but in an educated market, if there is no education there is no value. You have to share the same idea and value, the participants (customer, producer, merchant) of the market.

What is a good wine or a bad wine? How can you learn it, it’s a very important question.

The wine itself should give this answer. If the wine is bad, they the customer learns nothing they will stop to drink it.

The parameters of the representation of the wine value in the consumer’s mind

- Image (if you drink a Bordeaux or a Tuscan wine…you have an image in your head)

- Price (price is in the image and image is in the price)

- Typical taste (local taste, what is the taste of Champagne or Burgundy…is there a demand for taste)

- Aging potential (wine is also a style, no value without aging potential, when you drink an old wine; you’re impressed if the wine is still young and show complexity and much more of course).

What is an aging potential? What does good aging means? You must look reasonable younger then your age, same as with people…the other thing you must be more interesting, more fascinating and more amazing, then you use to be, same with the wine. It is the same for the wine and for us, the people. Looks a little bit younger and much more interesting, how good is this.


Fantastic seminar with Prof. Denis Dubourdieu, thank you

Tasting is recognition, a representation in your mind. A wine with a high value is together attractive, pleasant and difficult to imitate

- Terroir effect-

Capacity of territory (place), to “produce” , due to human know how a wine possessing a special taste, but not only yet also appreciated by a market which recognizes its singularity and value. The effect of the terroir, many people are interested in cause, but there should be an effect a typical taste, if this not exist…there is no terroir.

Different spot have a different spot, terroir is not only origin, terroir is not only a combination of soil and type and other factors.

“Terroir is the taste, no special taste, no special terroir.”

You have to make the wine…and if it tastes different is a new terroir…

If the specific quality of the wine is not obvious, then at best the idea of terroir is only virtual and hypothetical.

part 2 coming soon

Sunday, June 26, 2011

Confession of a Bordeaux wine merchant

Well this is not intended to become an essay but rather a brief overview how the Bordeaux market works. From the en primeur (future), the members of the “game”, relation between each players such as negociant – courtier (broker) – chateau. Different relations and similar (or even identical) missions.

The "smaller" chateau’s (not classified) have a different network as the classified growth, the great growths work through courtiers and the negociants, the Chateau’s do not sell directly to clients (while smaller properties, certainly do) Personal note, I do remember seeing wine on offer from Prieure Lichine (Margaux) directly at the property and pretty sure certain others do sell smaller quantities as well(see belolw)...


OK, they no just sell with funny figures


But back to the issue, chateau do not sell directly to the clients (general rule, let's accept it for the time being), they sell to the negociant in Bordeaux and the negociant will then sell further the wines, to the market in France, UK and to the world…

Between chateau and negociant there is also middle man, the courtier (broker), Mr. 2 %. When a negociant wish to discuss something with a chateau he/she first has to contact the courtier. After the appointment is made, the 3 people (courtier, chateau, negociant) start to have the discussion. What type of client do we want to sell, what will we organize, what about the image, if the negociant needs wine for a “show” he has to ask the courtier and sell the strategy to the chateau (through the courtier). The 2% goes as a commission into the pocket of the courtier at every sale, of course the negociant will have to pay this fee.

One chateau can have more then one courtier (broker), there are roughly 150 courtiers in Bordeaux. How do you become a courtier? In the past you put your name onto a list, and you got it. Today it’s a bit more difficult, you actually have to do an exam.

To get a different price from a different courtier? No, rather unlikely but the allocation, volume can vary of course due to the relationship with the chateau.

Sticking to the courtier is mainly history but also an important work is done from Mr 2%. Not just shifting one paper from one side of the table to the other, but to work with classified growth is not as difficult (or rather put it this way, having the knowledge on them is far more common), but there are 5000 petit Chateau’s. Looking for a great C. de Bourg or C. de Blaye is far more difficult task, some courtier also specialized in this area, knowing the different Bordeaux AOC really well.


Chill-out mood in the cave

Classified growth do not sell their wines, this is the work of the negociant. The chateau’s can go out and represent themselves on different shows and trade fairs, events, but finally the negociant will sell their wine. The chateau can recommend a negociant (as it also can recommend a courtier for the negociant). The chateau has to make sure it delivers a good wine, keeps the great communication, the sales in the negociants job.

To have a courtier and negociant in the same department? Impossible today, the idea would not be received well in Bordeaux (as they could cut the margins, etc.). Yet negociant and chateau owner can be the same (such in the case of Ch. Batailley, owned by the Casteja family which is also the owner of negociants, Borie-Manoux). A chateau or negociant has no obligation to pick a certain courtier.


Greetings from Bacchus

What is a good courtier?

The negociant is going to respect your strategy, in terms of quality and price. The courtier brings the negociant and chateaus together at the table. There for it is important (mutual) that everyone is respecting each others interest, such as: strategy, image, quality and price. Some negociants work well with restaurant if a chateau wants to be in a particular market or in a restaurant there might be a more specialized negociant for this job. Yet chateaus do not want to see their wines on supermarket shelves at discounted (low) prices (we can happen and happened in the past).

Chateaus sometimes like to send people out to certain supermarkets and check the shelves, on the back label there is a number and according to this it can be identified which negociant sold the wine to the supermarket (and which then did not respect the “strategy”), the chateau certainly will make a call…and ask questions.

Everybody has to play the game. The courtier does not just know the wines and the chateau’s but also the negociant houses, which is heavy in a certain market (such as Asia).

The courtier does not travel he/she only has the relationship between the negociant and the chateau. The broker (courtier) has a special knowledge in a given region. Knowing the volume and the sample. Small properties can sell directly without the “future” market, there is generally no law against selling directly anyway.


New vintages at Ch. Margaux

Any classified growth could decide to sell directly, many times over…but they don’t. Why? It is a rollercoaster ride: history, economy. Sometimes stuff is easy to sell, but when the hard times come back. What then? The negociant, courtiers would be needed!

The broker (courtiers) is licensed by the state, government of France. Wine is tasted in spring and if upon delivery two years later some mistake is made (e.g. with the wine), so the quality is not right, not the same quality when it was sign (of course barrel sample is different then bottled wine), the broker can cancel the contract. The 2% is an effective insurance for the negociant, but this was (is) rare to call upon.

Against all odds sometimes perhaps chateaus consider selling directly or at least discuss this (as mentioned above) opportunity but the Place de Bordeaux works just nicely (for the time being) as long as everyone is playing the game.

How much margin is the negociant making? It depends of course, but in en primeur 12-15%, perhaps. The negociant is paying for the wine, storing it (several vintages), promote the wine, paying the sales team, etc. While the courtier is the middle man (no need for the big warehouse, no risk, no money).

Classified growth and chateaus' want to control the retail price, its not a question to make a special deal or to move the cases, as they know they will move the cases sooner or later. Strategy, image and price what counts.

When do you pay the chateau (the negociant)? In the future (en primeur) market, usually in 3 different periods: July, November and February, but before the release of the wine. In instalments.

If not en primeur it’s usually 60 days. The negociant of course welcomes all allocation when the vintage is great, sale is booming, but the problem is the “bad” vintage, if you would refuse the wine (or given allocation) you would be moved to a black list. You need a great network as negociant as well, if you refuse 2007, don’t ask much for 2009. But of course they will pass it on to the merchants as well. They would say: don’t just support us when the vintage is great, but also when it’s less favourable. Just a short footnote, merchant can pass it on to the customer/consumer as well. By selecting customers who buy all sorts of vintages (did buy in the past, not just the “good” ones and a wide range of perhaps second wines and lesser growths as well, hence supported the merchants through the years), so the game is on and it moves round and round.

The non en primeur market is like the stock market, prices fluctuation is almost everyday. And the quotations move up and down. If a bottle of Latour (just a simple example), goes for 400 EUR bottle, the negociant can sell it to the market with a 10% margin…more or less. A law of supply and demand or fear and greed, if you wish.


Sun set. What will hold the future Bordeaux trade, tradition or innovation or...?

How important is to be correct with the price is inevitable as for instance the en primeur market is a very transparent market. You see the prices when they released and can compare it instantly (on the internet, etc.) the different merchants (hence merchants have to be careful on margins too) in your neighbourhood (or country). So a restaurant can receive the same wine from 5 different negociant within the same market. In the same street you can have 3 different retail shops selling the same wine, but all got it from a different negociant. Therefore it is quite important that everyone respects the price and the game.

USA is not always an easy market as some retail shops are more prepared to take a lower margin. Some have a huge stock, make bigger promotion, but the chateau is going to beware of that, they would hate to see if their image is broken through ill communication.

An example was when DIAGEO moved out of the en prim market, as they had a huge stock (especially classed growth) the Bordelaise were slightly nervous. Yet the Place the Bordeaux did buy some stock back or simply did not shift the wines and took them back to avoid low sale.

Some châteaux’s keep some of their stock and don’t release all to the future market (en primeur). Normally they will put 80-85% on offer and keep the rest in the market for later and play with it, like a stock exchange (as mentioned earlier).

Normally it all goes out in one tranche (yet the merchants like to release second and 3rd tranches with higher prices to the consumer), only big names like Latour, Margaux working with several tranches.

How do you decide on the price? It is a game of waiting, see what others do. Owner of the chateaus travel around the world, they’re clear with the economic situation, 2008 for instance it was a good vintage, but economic situation was quite difficult. People invested a lot in 2007 without much money, so 2008 was meant to be decreased in price, sometimes 10-15% or even more.

When the campaign starts you can not touch the price. If the chateau is selling the wine for 100 EUR you must sell it as a negociant for 115 EUR (with the appropriate margin), everyone is playing with the same rules.

First tranche is speculation and second tranche I can increase my price if the demand is great. During, before and after the campaign the press has a huge power. To go against or without the press is very difficult.

In some vintages nobody wants to buy? You carry the stock, and support the sale with other -great- vintages (e.g. 2009).

You do hear it quite often from the Bordelaise that their wine is meant to be for drinking and not for speculating on re-sale, auctions, etc. They really don’t believe in wine (Bordeaux in this case ) as an investment? Seems so, or you hear it more and more often....

If you sell your wine for 2-3 EUR more a bottle it will be a lot of money. Considering that you “shift” 85% of your stock within (e.g. 25 000 cases of twelve, 300 000 bottles, etc.) a few weeks. So for instance 5th Growth will look at each other and the “waiting” game begins. The negociant is looking around and advising the chateau as well on the economic situation of certain markets. Is the USD weak against the EUR for instance, what is the mood in the UK. All markets are more or less important for the Bordelaise, some more then others.

We have to see the bigger pictures, while a few decades ago there were only a handful or market players, such as the traditional domestic French market, the very important UK market, USA and perhaps the rest of Europe. Today it is quite different, there is Far East Asia, China, Russia and some other emerging markets.

The markets have to be satisfied as well with nearly the same volume of wine.


No doubt, people in Bordeaux love to invest

The Bordeaux chateaus reinvest a lot of money, their profits to maintain and even increase the quality. Investors from outside of the wine business become ever more important. To see Bordeaux 20-30 and more years ago and today, now –it is a huge difference. Chateaus are focused on quality, very much.

(Notes from Bordeaux, people, merchants, negociants, courtiers, chateaux....)