Worldbeat

Wines & Vines, July, 2004 by Larry Walker

California wine exporters who have a good market in the UK might want to take a close look at new numbers on Chilean exports to the UK. Statistics released by the UK office of Wines of Chile show the volume of exports to the UK increased by 25.2% in the first quarter of 2004, compared with the same period last year. Meanwhile the value of those exports rose by 30.6%--a figure the Chileans are particularly excited about, Wines of Chile director Michael Cox told decanter.com.

"It is very gratifying to see wines doing well at higher price-points," he said. "One of our main objectives has always been to get the wine selling at higher prices."

Cox compared Chile's figures with Australia's, whose export values are declining in terms of average dollar price.

"When your values are decreasing that means heavyweight discounting and cheap prices because of oversupply. When they are increasing it shows there is a better mix of wines on the shelves," he said.

It could be that Chile's new efforts in the UK could be a long-range problem for California.

Year-on-year figures between 2002 and 2003 show the top-selling Chilean wineries in the UK are San Pedro, which showed a 65.1% increase in volume in 2003; Concha y Toro (40.9%), Cono Sur (22.6%) and Errazuriz (10.4%).

Overall, Chile's wine exports grew in the first quarter of the year, boosted by growth in the average price per liter, according to the trade association Chilevid. Wine exports were up by 18% to US$165.9 million from $140.2 million in the same period a year before. The gains maintain the momentum built up last year when over the whole year exports rose 12%.

Fizz In A Crown Cap

Australian sparkling wine producer Chandon has released what is believed to be the first ever high-profile bottle of sparkling wine using a crown seal. Chandon's Green Point Z*D (known as Vintage Blanc de Blancs 2000 in Australia) was unveiled in Melbourne and Sydney, according to a report in decanter.com. The ZD stands for zero dosage.

Chandon winemaker Tony Jordan told a local newspaper that he did not inform Moet & Chandon in France that he intended to use the crown cap.

"We know they (Moet & Chandon head office in France) are very conservative when it comes to things like this and we didn't want them to stop us," Jordan told Max Allen for The Weekend Australian.

Although Chandon is not the first sparkling wine producer to bottle its wines with a so-called "beer-bottle top," it is the first company of such caliber to use this type of closure for the finished wine. All Champagne houses use crown seals during the winemaking process, before the final dosage is added.

Austria Exports Booming

The Austrian wine industry exported more wine in 2003 than in the previous year, according to a report in just-drinks.com. Preliminary data from the Austrian statistics office shows that exports for last year hit 80.9 million liters of wine, worth $78.54 million.

Increased sales were registered in Germany, Switzerland and the U.S. Germany topped the list, taking 65% of wine exports.

Exports to the new EU member states also enjoyed growth. The average export price for a bottle of wine to Poland and the Czech Republic stood at about $3.20.

European Partnership

Two of Europe's top wine producers have formed a strategic partnership. Italy's largest winemaker, Caviro, has teamed up with Groupe Val d'Orbieu in an agreement--which falls short of a full merger--aimed at battling against New World companies in emerging wine markets. The two groups will initially focus on the wine markets in Russia, Japan, Korea, Taiwan and Eastern Europe. Longer term, the partnership will look to markets in India and China, and intends to share sourcing supplies of bottles, distribution, and research and development.

"We have to sweep away the dust, to modernize, to adapt and become more competitive," Val d'Orbieu president Joel Castany told a news conference at the headquarters of the European farmers' organization COPA-COGEGA.

"Instead of competing with one another, we are trying to forge an alliance in order to export more," Caviro's president Secondo Ricci said. "We want to put our expertise and skills together to conquer new markets," according to a report by just-drinks.com.

This ... And That

Reports from France claim that E. & J. Gallo has agreed to buy 1 million cases of wine from the Limoux co-op in Languedoc by 2006. The wines will be used for Gallo's Red Bicyclette brand, which will be introduced into the U.S. market later this year. The agreement is a major boost for Languedoc producers. A spokesperson for Gallo had no comment on the report by just-drinks.com.

Vincor International, Canada's largest winery, has recently formed a partnership with North American retail giant Wal-Mart to sell its wines in its megastores. Three of Vincor's own-brand wine boutiques (called Wine Rack) have appeared in Wal-Mart outlets in Ontario cities, selling popular lines such as Jackson-Triggs and Inniskillin.

Australian wine exports were up 10.6% in value in March this year, compared to the previous month, the Australian Bureau of Statistics (ABS) reported. The value of shipments reached AU$219.4 million (US$160.1 million) from February's AU$189.4 million. Volumes also rose by 6.4% from the month before to 52.1 million liters in March. Domestic sales reached 36.3 million liters in March, up 2% on February and an increase of 9.7% from March 2003.