FINEWINE

REPORT2011

ABY APPOINTMENT TOH.M. THE QUEEN

WINE & SPIRIT MERCHANTSLONDON

BY APPOINTMENT TOH.R.H. THE PRINCE OF WALESWINE & SPIRIT MERCHANTS

LONDON

BERRY BROS. & RUDDWINE & SPIRIT MERCHANTS

www.bbr.com

BORDEAUX 4

BURGUNDY 8

CHAMPAGNE 10

RHÔNE 11

ALSACE 12

LOIRE 13

SOUTHERN FRANCE 14

IBERIA 16

SPAIN 16

PORTUGAL 17

ITALY 18

GERMANY 19

AUSTRIA 19

AUSTRALIA 20

NEW ZEALAND 22

SOUTH AFRICA 24

USA 26

CHILE 28

ARGENTINA 29

THE FUTURE 30

CONTENTS

FINE WINE REPORT 2011

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elcome to the Berry Bros. & Rudd Fine Wine Report 2011. This document aims toprovide a global perspective on the world of wine, but firstly it is important toestablish the credentials of the authors. Berry Bros. & Rudd (BBR) is the UK’s

oldest-established wine merchant, founded in 1698, and has, over the course of more thanthree centuries, developed a reputation not only for the quality of its wines but also for theauthority and expertise of its key personnel in both Buying and Sales. The Company boastsfive Masters of Wine, a remarkable number out of the global total of 290, four of whom havecontributed to this Report.

The various sections of this Report have been compiled by the Buyers responsible for eachviticultural area; Jasper Morris MW, author of the definitive book Inside Burgundy, has no peerin the depth of his knowledge of that region and has an equally wide understanding of andaffection for the wines of New Zealand. Simon Field MW, covers a wide spectrum of regions inhis remit including Southern France, the Rhône, Iberia, South America and Champagne. Hisextraordinary palate is matched only by his gift of being able to convey in words the tastesensations he experiences; not an easy task. David Berry Green, whose responsibilitiesembrace the Loire, Alsace, Germany, Austria, Hungary and Italy, adopts a totallyuncompromising stance towards quality in wine, and champions with great fervour thoseproducers who are unafraid to fly in the face of fashion and instead craft wines of integritywhich perfectly reflect their origins. Wholesale Director Mark Pardoe MW, has also contributedvaluable insights and observations and boasts the record of being the first Briton to be awardedthe prestigious Madame Bollinger Medal for achieving the highest marks in the tasting sectionof the Master of Wine Examination. I myself have the enviable job of supervising this functionas Buying Director, taking specific responsibility for Australia, South Africa and the USA.

The Report assumes a certain level of interest and knowledge among its readership so refrainsfrom pointing out the obvious; instead, it seeks to identify trends within the global market,highlighting potential and existing problems as well as flagging up exciting signs of progress,particularly in the realm of improvements in the quality of wine. Vintage assessments areprovided merely to assist with practical tips on what to drink now, or how long to keep bottlesfrom recent vintages. They are of necessity subjective and are designed to be no more thangeneralisations, given the constraints of space. Where appropriate we have given moredetailed information on vintages, such as with Bordeaux, where variation can be significantand can have a huge bearing on prices. Elsewhere we have been more general, highlightingonly the most recent or the pick of the last few years.

The illustrations provided are taken from our shop and cellars in St James’s Street, London,from where we have conducted business for over 300 years, and feature some of the historicbottles, artefacts and furniture found there.

We hope you find much to enthuse over in the pages which follow, and trust that theinformation and views expressed serve only to stimulate further your own interest in wine.

Alun Griffiths MWBuying Director

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BORDEAUX

he most world-famous of all of France’swine-growing regions is also one of itslargest, producing 675 million bottles

in 2010. Bordeaux’s apparent success inextending its fame into new markets,especially in Asia, masks the fact that muchof the region is actually in crisis.

The region’s production is spread across awide spectrum of quality, covering everyprice point from very basic up tostratospheric. At the bottom end is an oceanof everyday wines, usually labelled simply asAppellation Bordeaux Contrôlée or BordeauxSupérieur. Much of this wine finds its wayinto French supermarkets at rock-bottomprices. Stiff competition from New Worldwines made with the same grape varietiesmakes it very difficult for inexpensiveBordeaux to succeed in export markets, andmany growers at this level are consequentlymaking no money. Thousands of petitschâteaux are for sale, but there is littleinterest from potential buyers while re-saleprices remain so low.

At the other end of the scale lie theprestigious Grands Crus Classés, the famousstandard-bearers of the greatness ofBordeaux. Here we are talking about no morethan about 150 estates, and the fame they

have acquired over the recent past haselevated them almost to the status of brands,with the top 10 or 12 achieving luxury brandstatus. It is hardly surprising that the very topchâteaux are looked upon in this way, sinceseveral lie in the same ownership as Gucci,Dior and Louis Vuitton, along with KrugChampagne and Hennessy Cognac.

In between these opposite ends of thespectrum lies a category of mid-priced wines,wines which retail at between US$150-300per dozen. Usually these are well-made,characterful examples of the class andcharacter of Bordeaux, made to be drunkbetween 3-10 years after the harvest.

One thinks of Bordeaux as predominantly ared wine region, but it does, of course,produce a significant volume of fine, drywhite wine, as well as one of the world’sgreatest dessert wines in Sauternes.

Bordeaux’s markets for its wines are verydiverse, but 68% by volume is sold inFrance, with only 32% going to export. Interms of value, however, the position is verydifferent, with France accounting for only55% of the total, showing that a sizeablevolume of lower-priced wine goes throughmultiple retailers, while overseas countriesare more interested in the higher-quality,more expensive bottles.

Of the major export markets, the followinggraph illustrates where most of the volumesgo, with Germany the No.1 destination,followed by China, but when value is thedetermining factor then Hong Kong, the UKand China fill the top three places withGermany only 5th.

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FINE WINE REPORT 2011

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At the other end of the scale lie theprestigious Grands Crus Classés, thefamous standard-bearers of thegreatness of Bordeaux

FINE WINE REPORT 2011

BORDEAUX CONTINUED

Digging deeper still to examine trends, a glance at the list of theleading six importing countries in Asia shows the impact that thecontinent is having on the market:

Growth in Imports of Bordeaux Wine 2010China + 67%Japan + 22%Hong Kong + 68%South Korea StaticTaiwan + 6%Singapore + 10%

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Growth in the key Western markets was either much more modest,non-existent or even negative:

United Kingdom + 5%Germany + 5%Belgium - 5%USA + 6%Canada - 4%Switzerland + 5%Holland + 11%

Whilst the vast majority of Bordeaux wine is made to be drunk andenjoyed relatively young, the very top echelon of super-premiumwines have the capacity to mature and to improve with age over anextended period of time, up to 60 years in some cases, and thislatter category has recently become the focus of some extremelyspeculative buying. It is not difficult to see why; the volume of wineproduced from the top estates is strictly defined by law, so there isno question of simply turning on the tap and increasing production.For decades the only markets for these top wines lay in Europe andNorth America, and prices remained relatively stable with theprincipal fluctuations caused by the varying qualities of eachvintage. Recently, however while production remains unchanged,demand has risen sharply, with new entrants to the markets fromRussia, Asia and South America. Under these circumstances pricesfor the best vintages have unsurprisingly soared, and châteauxproprietors, alive to the burgeoning interest in their wines, have notbeen slow to capitalise.

The top châteaux of Bordeaux, or, more accurately, of the Médoc, areconveniently grouped into a classification, laid down in 1855 butremarkably relevant and accurate even today. Five wines fall into thetop division, the First Growths, namely Lafite, Latour, Mouton-Rothschild, Margaux and Haut-Brion. To these we can add threewines from the other side of Bordeaux, namely Pétrus, Cheval Blancand Ausone, which together make up a group of the most sought-after Bordeaux wines. Below this celebrated ensemble lie four furthersub-divisions, featuring such famous names as Léoville-Las Cases(2nd Growth), Palmer (3rd) and Lynch Bages (5th), all of which arewidely known to collectors around the world.

The ever-increasing demand for these top wines has created, over thepast 30 years, an en-primeur market, in other words the chance tobuy these wines as “futures”, some 2 years before they are actuallybottled. The world’s merchants and journalists descend on Bordeauxin April each year to taste the previous year’s wine, at this stage just 6months old. The châteaux release their opening prices during Mayand June, often waiting for the pronouncement of the world’s mostinfluential wine writer, Robert Parker, before deciding where to pitch

Top Ten Destinations for Bordeaux Wines

Breakdown in volumes (in hectolitres) and weight withinBordeaux exports

Breakdown in value (in millions of Euros) and weight withinBordeaux exports

Germany China Belgium UK Japan USA Hong Kong Canada Netherlands Switzerland

14.9%

12.9% 12.5%11.7%

7.9%6.9%

4.0% 3.7% 3.7% 3.5%

264 1

53hl

228 7

55hl

221 8

74hl

207 5

32hl

61 54

9 hl

61 54

9 hl

71 15

9 hl

66 85

5 hl

64 91

9 hl

61 54

9 hl

Hong Kong UK China Belgium Germany USA Japan Switzerland Canada Netherlands

16.6%

15.0%

10.9%

7.8% 7.3%6.5% 6.3% 6.2%

3.1% 2.7%

251Mv

227Mv

164Mv

118Mv

111Mv

99Mv

95Mv

93Mv

47Mv

41Mv

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their wine. In the past decade we have seen four exceptional vintages,each arguably better than the one before, in 2000, 2005, 2009 and2010. Release prices have risen to unprecedented levels, but this hasfailed to put a brake on demand thus far.

An illustration of just what level of financial appreciation hasoccurred amongst the top wines over the past few years is shown bythe figures below:

1 year 5 yearsLiv-Ex Fine Wine 50 + 50.8% +278.50%Liv-Ex Claret Chip + 44.10% +249.60%

Liv-Ex is wine’s equivalent of the Dow Jones or FTSE 100, and thesetwo indices reflect the performances of the First Growths from the past10 years and, in the case of the Claret Chip, the First Growths from thepast 15 years rated 95+ by Parker. Spectacular returns indeed, butwill the bubble burst? Who knows?

The extraordinary, almost frantic pursuit of the top Bordeaux winesinevitably raises the spectre, as with all luxury goods, of possiblefraud, and customers should satisfy themselves before purchasingthat (a) the goods are genuine, not fake, and (b) that the wine hasbeen professionally stored and transported throughout its life. Wine isa perishable, potentially fragile product, and requires careful handlingif it is to retain its quality. Moreover, when buying wine en-primeur, itis vital that the consumer buys only from reputable sources, as there isa considerable gap between paying for the wine and physicallyreceiving it 2 years later, and traders in wine, unlike in the FinancialServices industry, are not subject to a strict regulatory code.

Vintage Notes2010Extraordinary wines, immensely concentrated by drought in thegrowing season. High alcohol, but lively acidity maintains a level offreshness and balance. Best in the Médoc.

2009Universally superb across all levels of quality. A perfect growingseason, wines of concentration, depth and class, with abundant butripe tannins.

2008Attractive wines made by those who picked late. A cool July andAugust saved by an Indian Summer.

2007Lighter wines, but attractive and charming.

2006Tannic, powerful, very good, well-structured wines. Need patience.

2005Superb almost everywhere. A new benchmark in quality until 2009and 2010 came along!

2004Cool conditions produced classic wines of elegance and restraint,with fresh acidity and firm tannins. Charming now after 7years ageing.

2003A year of unprecedented heat, which many growers failed to copewith, the best wines are in Pauillac and St. Éstephe, but buy withcaution for many others are unbalanced and will not last.

2002The lightest year of the past decade; charming and forward, but not forlong ageing.

2001Not to be underestimated. A cool year but some very fine wines inPomerol and in parts of the Médoc. Good value for money.

2000Outstanding. Wines at all levels with ripeness, succulence andcharm. For long ageing.

Other vintages to look out for are 1996, which was excellent in theMédoc; 1995, a very round, fruit-laden year; 1990 a powerful, exoticvintage with fruit concentrated by drought; and 1982, a beautiful, fullymature vintage which has been a delight to drink throughout its life.

In terms of Sauternes, the great vintages rarely echo the best years forthe reds, and 2007, 2001, 1997, 1996, 1990, 1989 and 1988are the pick of the last 25 years, with 2001 regarded as the finest.

FINE WINE REPORT 2011

BURGUNDY

rance’s ‘other’ great region, Burgundyhas nothing in common with Bordeauxeither in style of wine or indeed how the

market works. This is a region of farmers,working with single grape varieties, Pinot Noirfor red and Chardonnay for white, very little intouch with the ups and downs of theinternational market place – as long as theycan sell their crop.

Burgundy boasts 100 appellations in apyramid of ascending quality: 23 regional, 44village (including premier cru vineyards) and33 grand cru vineyards. The total area undervine is 27,700 hectares producing 200million bottles of wine. 60% is white wine,32% red or rosé, 8% sparkling (crémant).

There are approximately 4,000 differentproducers of which 1,300 produce wine inbottle under their own labels. There are250+ merchant houses (négociants) and23 co-operatives, the latter mostly coveringthe less expensive appellations of theMâconnais, Chalonnais and Chablis.

Burgundy has been a two speed market inrecent years, with no link between thestruggles of those producing wines from themost minor appellations such as MâconVillages or Beaujolais, and those with goodholdings in the famous villages of the Côted’Or. At the lowest end there has been avicious circle of decreasing bulk pricesforcing producers to cut corners, arguablyfurther damaging the quality and image oftheir product. There is a clear parallel herewith the top and bottom of the Bordeauxmarket mentioned in the previous section.

Demand for the finer wines has held up welland it is probable that grands crus (1.4% ofproduction) will become significantly moreexpensive in the medium term future

Despite recent global economic uncertainty,the price of vineyard land has continued torise quite sharply. Recent transactions forvillage Meursault have reached €60,000per ouvrée, a specifically Burgundian,historic measurement of land, or €1.44mper hectare. One hectare producesapproximately 6,600 bottles of wine perannum. The reason for the continuing highprice of land is the availability of externalinvestors keen to be part of the dream, withfunds available to enable their favouritegrowers to purchase additional vineyards.

Burgundy has been one of the most dynamicregions for the spread of organic andbiodynamic methods of viticulture. Whilecritics sometimes claim that the biodynamicmovement is more about marketing than anyqualitative reality, it should be noted that thedriving forces behind the biodynamicmovement have been some of the region’smost famous names who had more to losethan to gain by prominently espousing suchnovel ideas: Domaines Leroy, Leflaive, Lafon,Lafarge, Domaine de la Romanée Conti,Joseph Drouhin and many others.

Historically the Burgundian market place hasbeen divided between merchants, whobought grapes, grape juice at harvest orwines subsequently, and blended themaccording to their house style and traditions,and individual domaines responsible for allaspects of production from growing the vinesto bottling the wines and taking them tomarket. These lines have become blurred asthe major négociant (merchant) houses have

been purchasing vineyards to guarantee theirsupply lines, while successful growers havebeen supplementing their production by thepurchase of grapes on a small scale.

The top three markets by value, representing52% of total exports, are the UK, USA andJapan. The remainder of the top 10, apartfrom Canada, are European countries,followed by Hong Kong (11th), Singapore(15th) South Korea (17th), Brazil (18th),Taiwan (19th) and China (20th). By volume,Japan falls to 4th place behind Belgiumwhile China rises to 14th, ahead of HongKong (16th). It is clear that Burgundy islooking to target China as a major market forthe future.

Is Beaujolais part of Burgundy? Nobody quiteseems to know, but currently there are movesto bring the smaller region back inside itsbigger and more economically robustneighbour. Since the image of Beaujolais hasbecome progressively more damaged inrecent years, perhaps in part as a fall-outfrom overreliance on Beaujolais Nouveau,from the 2011 vintage it will be possible toreclassify basic Beaujolais under a newappellation, Côteaux de Bourgogne.

The leading lights of Burgundy, led by Aubertde Villaine of Domaine de la Romanée Conti,are currently campaigning for the variousvineyards of the Cote d’Or, known as ‘climats’to be recognised as a World Heritage Site.

Vintage NotesThe two most recent vintages (2010 and2009) have both produced fine wine but inquite different styles. 2009was a large cropgrown in a warm summer and harvestedearly, producing rich ripe wines which willbe attractive to drink early but should alsohave staying power. 2010was a moredifficult growing season with an Octoberharvest producing a small crop of veryfragrant attractive Pinot Noir, more compactthan 2009 but impeccably balanced, whilethe white wines have a very attractivearomatic character.

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The white wines of Burgundy have not beenageing reliably as they used to do in previousgenerations. There are many reasons for this,some of which have been put right, but itremains the case that most white Burgundyis approachable much earlier than in the pastand is unlikely to repay a decade or more ofcellaring. Currently the following vintages aredrinking well:

2007 in a fine crisp mineral style; 2006withgreater warmth and weight; 2004 and 2002are both at their apogee, while 2003,mistrusted at first because of the exceptionalheat during the summer, has turned out to bemuch more interesting than expected.2005s are fine, concentrated and ready todrink now.

Contrary to recent experience with whiteBurgundy, the reds are demonstratingexcellent keeping qualities. Lighter yearssuch as 2004 and 2000 now need drinkingup but 2007, 2003, 2002, 2001, 1999,and 1998 are now all beginning to showvery well. The greatest vintage in recent timesis 2005 but this needs to be kept for a further5 years (village wines) or much longer forpremiers and grands crus. Fine oldervintages include 1993, 1990, 1989, 1988and 1985.

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FINE WINE REPORT 2011

CHAMPAGNE

hampagne, the self-styled ambrosia ofthe affluent, is generally a reliable bell-weather of global economic self-

confidence and the good news is that bothproduction and shipments are back on theincrease. The Champenois are extremelyproficient at self-regulation, their genericlegislative bodies adroit in the apparentlydifficult balancing act between the largenégociants, who dominate the actualproduction and sales (80% or thereabouts)and the large number of growers whoactually own the vines (18,000 growersowning 70% of the vineyards). The muchpublicised admission of 40 new villages,increasing production by up to 10%, wasfinalised before the magnitude of the currentglobal recession became evident and yet itsfruits, in bottled form that is to say, will notcome on stream for another 9 years.

So, by keeping the area under vine carefullyregulated (approximately 34,000 hectaresnow) and by manipulating annualproduction quotas, there is tight control overthe supply/demand matrix. To give an idea,in 2008 the maximum production was12,400 kilos per hectare, whereas in 2009 itwas only 9,700 kl/ha and in 2010 back upto 10,500 kl/ha. Quite a difference,especially when one bears in mind that theactual quality and volume of the harvest itselfboth have to be factored in. In addition, the

Champenois need a degree of prescience, asthe production quotas in a certain year are ofcourse only of relevance when the wine hasbeen matured and put on to the market. Inother words, in any year, there has to be anestimate of demand 2 or 3 years down theline. It is all very well lowering production forthe 2009 crop, but this may back-firedrastically when the fruits of 2009 comeonto the market, in 2012 and 2103, atwhich time we could back in the boom times,with anxieties centring once more oninsufficient demand. For the Champenoisthis is something of a virtuous cycle as it willhave the effect of pushing prices up further.The growers are happy enough; €6 per kilowould be beyond the wildest dreams ofvirtually all other French vignerons. And thenégociants are not dissatisfied, manipulatingsupply with an intricate web of discounting inthe mass retail markets, known to the tradeas Les Grandes Surfaces, when the needarises, and continuing to plough money intomarketing and PR budgets which oil thewheels of luxury branding and keep thecategory out on its own, in terms of image.

But where does it all go and do we get agood deal?:

Shipments2007 338m

2008 322m

2009 290m

2010 321m

After France (190 million bottles) the nextbiggest markets are the UK (30 million), USA(12.6 million) and Germany (10.9 million).These percentages have remained roughlythe same over the last decade, with the UKperhaps gaining a little ground over the US.The much publicised Chinese market hascertainly grown exponentially but only from avery low starting point; they now account forabout 1.5 million bottles, mostly supplied bythe greater Moet Empire. This serves tounderline the hegemony of the biggestproducers with the LVMH behemothcontrolling 20% of the entire market and thenext three (Lanson, Vranken and PernodRicard) accounting for a further 20%. Thisputs perspective on the much reported-uponrise of Grower’s Champagne. Although thisphenomenon is certainly gaining ground inthe independent retail sector; there is anoticeable gap opening up between theretailers to this extent. Other significanttrends are the rise in interest in low sugarwines (zero or minimal dosage), the increasein market share of Rosé (now stabilised at12-15%) and the continual rise in thepopularity of the deluxe cuvées, often at theexpense of the actual vintage wines, whichtend to get squeezed in the middle. Bothsupply and demand of Dom Pérignon 2002,for example, have been outstandinglyimpressive.

Vintage NotesThe greatest recent vintage is 2002,perceived as better than high acid 1996 andultra-ripe 1995; since then the 2004was alarge but harmonious crop, especiallyimpressive for Chardonnay and both 2008and 2009 look promising. 2010was awashout in the manner of 2001 and the2011harvest was started on 22 August,inviting comparison with the atypical 2003.All in all, it’s business as usual in Champagneand the region effortlessly holds its head high,far higher than the nearest competition.

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RHÔNE

econd only to Bordeaux, the AOCs of the Rhône cover 73,500hectares of vines and produce 377 million bottles of wine.Although the vineyards to the south of Montélimar dominate

production (95%) there is a pleasing symmetry in terms of the namedVillage Crus, with both North and South having eight, the latterbolstered by the recent promotion of Vinsobres, Beaumes de Veniseand Rasteau to stand-alone status. Over 400 million bottles were soldin 2010, of which 80% were red wine, with just over 25% exported,the foreign markets dominated by the UK (20%), USA (17%),Benelux (10%) and Canada (10%). Generic Côtes-du-Rhône fareswell at one end of the scale, bolstered by colourful and imaginativeadvertising, and at the other end, the on-going and influential supportof Robert Parker has been backed up by some great vintages, thequartet of 1998-2001, 2005, 2007 and 2009 to name the mostrecent. Indeed some of Parker’s most generous marks have, over theyears, gone to the Rhône, with properties such as Beaucastel, Chave,Chapoutier and Clos-des-Papes all notable beneficiaries.

Beyond all the excitement, one must not overlook commercialrealities. Average bottle sale price is low with the domestic marketdominated by the Grandes Surfaces and the production is still largelycontrolled by the Co-operatives (63% by volume). The total wineexported has slipped by 8% since 2003, although in 2010, the figureof 108 million bottles is higher than both 2008 and 2009, socertainly heading in the right direction. In addition the Valley has12,200 hectares under organic viticulture and is seen as abenchmark for ‘green’ viticulture. Other notable developments includethe more careful management of oak, especially important to bringout the real character of Syrah, and with the whites, moves towardsfresher wines, including more careful temperature-control and, withoak-aged examples, more ‘reductive’ lees stirring. From Ch. Grillet all

the way down (geographically) to Ch. la Nerthe, the white wines arefar removed, stylistically, from their forebears and provide afascinating alternative to White Burgundy.

Economic pressures notwithstanding, the Rhône continues to exciteand with the seemingly inexorable rise in prices from other premiumareas, the future for the Valley looks bright. Asia looks set to turn itseyes towards these great appellations and the timely revitalisation ofhistorical names such as Cornas, Hermitage, Gigondas andChâteauneuf-du-Pape leaves the Rhône extremely well placed. Andwhat is more, 2010 is shaping up rather nicely with its more femininestyle providing contrast with the powerful 2009s.

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FINE WINE REPORT 2011

ALSACE

s with the Loire, the region of Alsaceappears to have suffered from thesignificant drop in per head

consumption in its key market, France; amarket which thrived on Alsace’s sparklingwines among others. A tiny region of 16,000hectares lying to the east of the Vosgesmountains close to France’s border withGermany, it too like the Loire has a plethora ofgrape varieties (Muscat, Sylvaner, PinotBlanc/Auxerrois, Riesling, Gewurztraminer,Pinot Gris, Pinot Noir) among its largely whitewine styles that has probably only served toconfuse the end consumer; added to whichthe full-bodied wines are produced inGerman-shaped bottles.

The Bas-Rhin, the area to the north ofColmar, is the source of the region’s fullest,most generous style of white wine; it’s wherethe fruit is generally riper thanks to the opentopography and varied expositions togetherwith its warmer, often pink sandstone soils.The farmers who till this part of Alsace areunfairly labelled as the ‘Barrois’ by theirsouthern neighbours in the Haut-Rhin;unfairly because much of the Haut-Rhinrelies upon fruit bought from the Bas-Rhin tocomplete and bring added ripeness to theirblends. The most accomplished producer inthis region is André Ostertag.

The Haut-Rhin is therefore the southern halfof the elongated Alsace region that runseffectively as a continuation from theGerman vineyards of Mosel-Saar-Ruwer.This is the coolest, consistently highest and

steepest part of the region’s vineyards thatface east across the border into Switzerland.This part of Alsace is notable for the highquality of its Riesling and Gewurztraminerwines, as grown on the limestone,sandstone and granitic soils. It is also hometo some of the region’s most famousproducers: Zind-Humbrecht, Marcel Deiss,Weinbach and Trimbach.

Alsace is also celebrated, not just for theunequalled number of Michelin restaurantsof any region in France (cooking among otherthings Munster cheese in one of nine ways),nor for the unequalled number of sunshinehours in France, but for being the birthplaceof Rudolf Steiner; the man who articulatedand labelled biodynamic agriculture back in1924. Needless to say Alsace has thehighest proportion of biodynamically certifiedproducers; as documented by theinternational body DEMETER, whosepresident is, coincidently, the Alsacienproducer Oliver Humbrecht MW.

Humbrecht is currently working on a projectto classify the region’s Premier Crus. TheGrand Cru vineyards were agreed in 1985,although controversially so as many of theregion’s many famous growers abstainedfrom voting, suggesting that it wasn’t beingstrict enough in lowering yields. This handedthe cooperatives the initiative to profit from thelabel without producing the assumed qualitya Grand Cruwould merit. So Humbrecht iscanvassing widely to avoid a repeat.

Vintage NotesVintages to look out for in the last decade are2002, 2005 and 2007 but the last threevintages have all been excellent too. Alsace isclearly enjoying a purple patch.

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LOIRE

istorically a significant source ofFrench white wine, accounting forapproximately 8% of the country’s

vineyards (approx. 500,000 hectares) in2006, the Loire has struggled despiteconsolidation among producers in recentyears to see off global competition. Francestill represents the key market, particularly forits sparkling wines.

The three key white varieties grown in theLoire continue to be the Melon de Bourgogne(Muscadet), Chenin Blanc (Vouvray) andSauvignon Blanc (Sancerre and Pouilly-Fumé). Muscadet, lying on the westernAtlantic coast and planted on granite soils stillaccounts for approximately 40% of Loire’sproduction, mostly made by négociants atmodest prices. Chenin Blanc is mostlyvinified as sparkling wine although isproduced in a plethora of others styles (dry,off-dry, moelleux, sweet) under famousnames such as Savennieres, Coteaux duLayon and Vouvray. However, its relativeanonymity as the source of these fine winesdoes little to win over consumers. SauvignonBlanc only became known as such with therise of New Zealand’s eponymous industryduring the 1980s. Formerly the grape wasknown to a previous generation as Sancerreand Pouilly-Fumé, responsible forapproximately 15% of Loire production(2006). Since Cloudy Bay convincedmillions into both thinking about anddrinking this ‘Kiwi’ grape, the Loire producershave been like rabbits caught in theheadlights, unsure whether to try and beatthem or choose a different path. OneSauvignon Blanc region of the Loire that hasreally suffered from the Kiwi onslaught hasbeen the Touraine; once the de factowine ofchoice for those looking for a simpleSauvignon Blanc. Here the wines have fallenbetween two stools, failing to match thecrowd-pleasing aromatic appeal of the NewZealand examples while lacking the terroirand branding of Sancerre or Pouilly-Fumé.

While Muscadet prices and aspirations haveremained stubbornly low, there are signs that

Chenin Blanc may at last be showing signs ofrevival among the smaller artisan estates ofLayon, Vouvray and Touraine. Meanwhile theSauvignon Blancs of Sancerre and Pouilly-Fumé are finding it hard to carve out a livingamong a new generation of drinkers forwhom Sauvignon Blanc is synonymous withthe Southern Hemisphere. The authoritieshave responded by hiring (antipodean)winemaking consultants to bring moreconsistency and ripeness to their wines. Anincreasing number are adopting barrelvinification to build further complexity intotheir wines; a move that should also catchthe eye of the wine press.

Global warming has helped deliver a higherlevel of ripeness – indeed often too much so -but this is being offset by a greater prevalenceof disease. This is especially the case amongthe Cabernet Franc vineyards of the Anjou-Saumur region that account for nearly 25%of Loire’s production (2006). Historicallydrunk locally, the red wines of the Saumur-Champigny, Bougueil and Chinon are findingit hard to attract broad interest on the worldstage. They may have the terroir but do nothave the presence, especially coming fromwhat is a region better known for its whites.

The future of Loire wines surely lies in theirability to deliver outstanding examples oftheir grape varieties as interpreted throughtheir advantageous terroir. There needs to bemore producers achieving the level of qualityshown by the likes of Francois Cotat(Sancerre), Gaston Huets (Vouvray), NicolasJoly (Savennieres), Domaine de laChevalerie (Bourgueil) and DidierDagueneaus (Pouilly-Fumé).

Vintage NotesVintages over the past decade have againseen a high level of consistency, with nothingless than good and a wonderful series from2002-2005. Of the last 10 years 2002,2005 and 2010have been outstanding.

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The future ofLoire winessurely lies intheir ability todeliveroutstandingexamples of theirgrape varietiesas interpretedthrough theiradvantageousterroir.

H

SOUTHERN FRANCE

y Southern France, one means thegreat swathes of vines across theLanguedoc, then the Roussillon and

then up the South West Coast up to Charente,in other words an extraordinarily diverse area,and one with a cultural and historicalbackdrop which puts many other apparentlygrander regions to shame.

This is the domain of bulk wine, of Vin dePays, the so-called wine-lake and genuinestructural chaos. It is also the region wheresome of the great historical appellations(Cahors, Madiran, Limoux and Bandol areobvious examples) are re-inventingthemselves. Moreover, it is an area whereprecisely defined microclimates are coming

to international recognition. Examples arelegion, but our particular favourites are Pic-Saint-Loup and the Terrasses du Larzac inthe Languedoc and St. Martin de Fenouilletin the Côtes-du-Roussillon. Indeed with theon-going success of Minervois-la-Livinière,Southern France is working towards apyramid system, installing a Cruwithin a Cruin the Burgundian mould, and attempting,finally, to instigate a system to provideillumination in deference to the brightMediterranean light so beloved of Matisseand the extraordinary terroir, hithertowoefully underexploited.

Little surprise, then, that there are moreinternational winemakers here thananywhere else and that the Languedoc nowhas the greatest per cent of AOC vinesclassified as organic. Beyond thebureaucratic obfuscation, and a rather trickyglobal economic back-drop, the future looksbright indeed.

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IBERIA SPAIN

pain and Portugal, when put together,make more wine than both France andItaly. The national self-confidence of

recent heroics on the football field and on thetennis court has been reflected, in vinousterms, by innovation and a sense ofadventure, not least in the architecturalambition evidenced by some of the Bodegas.Riscal’s Guggenheim hotel in Elciego being amost flamboyant example which also servesto illustrate the spirit of diversification. Butnow, with the Mediterranean countries themost vulnerable in terms of the loomingeconomic crisis throughout the Euro-Zone(and beyond), let it be hoped that theprogress does not stall.

otal production in Spain in 2010 wasjust under 5.32 billion bottles, markinga slow but steady decline from a figure

which got closer to 6.65 billion over theprevious 20 years. This marks a flight toquality and a move away from thedominance of the volume-driven Castilla-La-Mancha region and its fantasticallyuninspiring Airen grape. La Mancha stillaccounts for over half of the total production,but its influence, not least in terms ofperception, is slowly being eroded by thefinancial realities of supply and demand andthe European Union’s rather belated decisionto reduce subsidies in areas of decline. Moreexciting is the re-emergence of traditionalvarieties and the evolution of hitherto little-known Denominacions, each with distinctivecalling cards. Examples of the former areMonastrell in Alicante, Garnacha in Monsantand Godello in Valdeorras; examples of thelatter are Bierzo with its distinctive Menciavariety, now championed by no less aluminary than Alvaro Palacios, and Torowhere Tinta de Toro (aka Tempranillo) hasbeen tamed at Pintia, which is owned byVega Sicilia. Even more avant garde are newDOs Arribes and Tierra de Leon, gainingrecognition for indigenous varieties, JuanGarcia and Prieto Picudo.

The three most famous viticultural areas fortable wine are Priorat, Ribera Del Duero andRioja, and it is here where Spain’s mostexpensive wines can be found, with iconssuch as L’Ermita, Unico and Artadi’s El Pisoncontinuing to appreciate as investmentwines. Despite its size Priorat provides anexemplary showcase for low-yield oldGarnacha, whereas in Ribera Del Duerothere seems to be an insatiable demand forambitiously oaked powerful wines and inRioja the ancient and modern sit well side byside, with the great traditionalists such asTondonia and Muga now sharing the vinoushigh table with modernisers such as MiguelAngel de Gregorio at Finca Allende or JuanCarlos Lopez de Lacalle at Artadi. A series offine vintages have helped with 2004 and2001 easily matching the quality of the1994/1995 duo and 2005 and, to a slightlylesser extent, 2007, also excellent.

Quality and ambition are clearly not in shortsupply; but is there a global market place inthese parlous times? The five leading exportmarkets, largest first, are the UK, Germany,USA, Switzerland and the Netherlands, butonly the US has grown in volume since 2007(by an impressive 60%). Both the UK andGermany still buy twice as much as the USAbut their volumes have fallen; in the case ofthe UK from 125 to 99 million litres over thesame time-frame. One has only to look at theonce mighty sherry category to realise thatthere is still a lot of work to be done; sherryexports have dipped by over 50% over thelast 30 years and the decline is on-going,total exports dropping from 75 to 61 millionbottles from 2006 to 2010. All in all then theproblems are as a result of a flight from highvolume traditional sectors, exacerbated by agloomy economic backdrop. If, however, oneis in search for diversity and innovation, oneis unlikely to be disappointed by what ishappening in The New Spain.

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PORTUGAL

ortugal’s economic difficulties and large deficit probably go someway to explain the gradual diminution of production, which hasfallen from 1.064 billion bottles in 2001 to just under 798

million in 2010. The EU’s move to reclassify production leads to a sub-classification of these 798 million as follows:

DOP (Protected Designation of Origin) 266m

IGP (Protected Geographical Indication) 200m

Vinho (All other table wine) 212m

Sweet Wines 120m

68% of wines are red and rosado and 32% are white. The mainexport markets are Italy, France and Spain, with the domestic marketonly coming in fourth in terms of volume.

The main quality areas are Minho on the coast, Alentejo inland fromLisbon and the Douro Valley, where table wines continue to developas the fortified category continues to struggle against the vagaries offashion, and a concomitant lack of real investment potential. Indeedit is astonishing that only 3.72 million bottles of Madeira areexported, despite the nascent interest in the vintage wines from thisfamous Atlantic island. Port itself is much larger but in 2010, itsexports of 1 billion bottles continued on a downward path. Therarefied Vintage Port market only makes up 5% of the category and,with a split declaration for 2009, has been unable to equal the moreimpressive performance, both stylistically and commercially, of the2007, 2003 and 2000 campaigns.

Vintage NotesThe aforementioned vintages, unsurprisingly, yielded the best winesover the last few years, with honourable mentions for both 2009 andthe rather warm 2005. The most interesting wines are those madefrom Portugal’s local varieties, with Arinto and Alvarinho makingaromatic and flavoursome whites and some very fine reds comingfrom Touriga Nacional, Tinta Roriz and Alicante Bouschet. It is worthyof note that table wines made by the great port houses such as theQuintas of Vesuvio and Noval are starting to forge reputations in theirown right, both using traditional grape varieties. Herein may well lie apositive trend to underline both the quality and the originality ofPortugal’s wines.

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More exciting is the re-emergence of traditionalvarieties and the evolution ofhitherto little-knownDenominacions

P

ITALY

espite its ancient, dare one say‘peerless’, viticultural heritage andcelebrated (red) wines, recent history

has seen the Italians drag their feetpromotionally and consequently their finewines have not received the acclaim theydeserve. Much of this problem seems to stemfrom Italy remaining politically andprovincially divided. Unfortunately the‘economic miracle’ that accompanied Italy’spost WWII transformation from a Kingdom toa Republic served only to promote quantityover quality. It is a nation of states thatcelebrates 150 years of ‘Unification’ this yearyet still the separatist (Lega Nord) calls for theSouth to be severed from the affluent North.It’s a country that up and until 30 of so yearsago continued to sell its finest wines in largeglass demijohns mainly to restaurants andprivate customers, who in turn served it incarafes or bottled it themselves with labelssupplied by the wineries.

We’re pleased to report that Italian fine wineproducers and their siblings seemed to havelearned the lessons of those ‘rock ‘n roll’ yearsof the 1980s and 1990s (consultants,barriques, international grape varieties, highalcohol levels, big prices) with an increasing

number now reverting to the traditional, morenatural path trodden by their grandparents, aphilosophy that focuses on making elegant,drinkable, reasonably priced wines thatinterpret Italy’s naturally fine terroir, onebased on limestone soils with altitude via itsnative grape varieties.

When it comes to autochthonous grapes thevast sea of different varieties, matched by anocean of DOC and DOCG, has ironically onlyhelped to confuse a consumer keen to get toknow Italy’s fine and famous wine styles. Putmore simply the standout grape varieties(and their important fine wines styles) are,from South to North: Sicily’s NerelloMascalese (Etna Rosso), Puglia’s Primitivo(Gioia del Colle and di Manduria),Basilicata’s Aglianico (del Vulture),Campania’s Aglianico (Taurasi) and whiteFiano (di Avellino), Umbria’s Sagrantino (diMontefalco), Marche’s Montepulcianod’Abruzzo and white Verdicchio (di Matelica),Tuscany’s Sangiovese (Chianti Classico,Brunello di Montalcino, Vino Nobile diMontepulciano), Friuli’s Pinot Grigio,Veneto’s white Garganega (Soave), Corvina(Valpolicella) and white Glera (Prosecco) andPiedmont’s Nebbiolo (Barbaresco andBarolo). The penny is finally dropping thatthese are the varieties and wines to focus on,for producers, salesmen and consumers.

In the meantime Italy remains the world’ssecond largest producer of wine, thankslargely to the immense quantities of bulkwine still produced in the South to be bottledas cheap, own-label wine or distributed

across Europe as blending material. The finewines continue to be ever finer, particularly inthe North but progressively in the South, asmore families exit the cooperage system infavour of bottling themselves; the nextgeneration better prepared than the previous.

The USA and Japan remain importantdestinations for the more famous wine styleswhile Scandinavia and Canada are taking tothe mid-priced lines. China is on everyone’shorizon but it is proving tricky to crack theFrench hegemony, even if Nebbiolo is (oneof) the natural partners to Chinese dishes,however daunting. There’s a lot of educationto be done.

Among the fast improving producers to trackdown would be: Manuel Marinacci(Barbaresco), Cascina Fontana (Barolo),Monte dei Ragni (Valpolicella), Bibbiano(Chianti Classico) and San Giuseppe(Brunello di Montalcino), Carbone (Aglianicodel Vulture), Luigi Tecce (Taurasi) and Graci(Etna Rosso).

Vintage NotesVintages have been consistently good toexcellent since the early 1990s, arguablythanks to climate change; not a problem fora country whose native black grapes areused to the heat, ever since Monte Vesuviusfirst erupted. If one had to pick out the finestyears they would be 2004, 2006 and2009, but there has not really been a weakvintage in the last decade. While this is anextremely exciting period to be drinkingItalian fine wine, the scope for secondarymarket appreciation in value is limited(except perhaps with wines such asMasseto) as the quantities produced of thefinest wines are restricted.

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GERMANY AUSTRIA

ermany remains the undisputed champion of the Rieslinggrape; the most revered and long-lived of all white grapeswhose shelf price once exceeded that of First Growth

Red Bordeaux.

The 100,000 hectares of vineyards are centred round the riversRhine and Mosel whose exceptional mesoclimates enable the fruit toripen even at such a high latitude. The steep slatey slopes of theMosel Valley produce the lightest, most minerally Rieslings, with firm,steely examples coming from its tributaries, the Saar and Ruwer. Thesouth-facing slopes of the Rheingau are drier and sunnier, so thewines are fuller. The underrated Nahe lies in between the Mosel andRheingau both stylistically and geographically, while the largeRheinhessen region can produce firm, full and racy Rieslings. ThePfalz region further south is warmer, so the wines are richer.Traditional wines have a degree of sweetness.

Over the past decade the occurrence of warmer vintages and achange in the key German market’s tastes have witnessed a definitemove towards a dry style of Riesling. These factors have alsofacilitated the production of Spatburgunder (Pinot Noir), notablycoming from the Pfalz region.

Prominent producers of high quality Riesling include Donnhoff(Nahe), JJ Prum (Mosel) and Merkelbach (Mosel).

Vintage NotesAgain we find ourselves reflecting on a golden decade, with anunbroken run of good to excellent years.

The 2010 vintage is looking very promising for producers with the bestvineyards while out of the last 10 years 2001, 2005 and 2009 can beregarded as near-perfect, and 2002 and 2007 exceptional.

rom the depths of the 1985 crisis of confidence that hit theAustrian wine industry following the discovery of anti-freeze in afew of its wines, their producers have risen Phoenix-like, to

make Austria the home of some of the most exciting wines anywherein the world.

Compared to their neighbours Germany, the Austrians have set theirstall to produce full-bodied (mostly) dry white wines, where residualsugar is the exception not the norm. Riesling is the grape that extractsthe maximum expression from the terraced schist and granite slopes,notably in the Wachua region along the Danube. Gruner Veltiner,which is not dissimilar to Pinot Gris in character, prefers the lessdemanding loess and silty sites of the Kremstal and Kamptal regions.

All find their main market in Vienna, a factor that seems to keep thecellars empty and the prices relatively high.

Unlike its neighbour Germany, Austria employs irrigation quite liberally,especially on the free-draining flood plains that support Gruner Veltliner.Climate change has aggravated this situation with a few producersswitching to black varieties such as Pinot Noir or St. Laurent.

Other new developments concern the rise of Blaufrankisch, a blackgrape similar to Nebbiolo, which is showing great promise on thecalcareous clay hills of the Burgenland, close to the Hungarian border.

Vintage NotesIn terms of vintages, 2009was fine for both whites and reds, and fromthe past decade the pick of the years would be 2001, 2004 and2005. Intervening years were by no means poor, with clementweather conditions leading to the production of consistently good-to-excellent wines.

G F

AUSTRALIA

he history of Australia’s wine industryover the past 30 years has been one ofalmost continuous success, until the

relentless growth in sales ground to a haltand went into reverse 3 years ago. 2010 sawthe third consecutive year of export salesvolume decline, so to what can this beattributed? The relative strength of theAustralian dollar is clearly a factor; moreover,the country has been less affected than mostby the global recession, and in competitiveoverseas markets the strength of the currencyhas an obvious negative effect for Australianwines set against competition from moretroubled producer-countries, desperate toshift volumes at knock-down prices.

One noticeable trend in the past 2 years hasbeen a marked increase in the export of bulkAustralian wines, up from 22% of totalexports to 47%, with almost half going to theUK, Australia’s biggest export market. Thisdevelopment is clearly driven by a desire inthe importing country to reduce costs, as it isappreciably cheaper to ship wine in bulk andbottle it locally than to ship glass andpackaging expensively around the world.With environmental issues very much invogue at present this trend may well continuein the near future.

Australia built its reputation for competitively-priced, attractive, fruit-driven wines whichwere easy to understand and to enjoy. Mostof the sales went through multiples,supported by aggressive promotion, and thelower reaches of the on-premise market. Thechallenge for the country now is to show thatit can truly challenge the Old World’s moreestablished wine regions by introducinghigh-quality wines which reflect the uniquecharacter of their origins. The coolerviticultural zones seem best placed to deliverthis, so we would look to Victoria’s YarraValley and Mornington Peninsula for PinotNoir and Chardonnay, Tasmania for sparklingwines, Eden Valley and Clare Valley in SouthAustralia for vibrant, precise Rieslings, andMargaret River in West Australia for Bordeauxand Rhône-style wines made from CabernetSauvignon and Shiraz. The celebratedBarossa Valley and Coonawarra in SouthAustralia remain bastions of quality, ofcourse, for these two latter varietals. Themassive plantings of vines which led to over-production and a consequent glut of mass-market wines needs now to be supersededby a recognition of the high quality levelswhich Australian wine can aspire to if madeon a small scale by conscientious producers.80% of the country’s production lies in thehands of six major conglomerates, so it is tothe other 20% that one looks for the moreindividual, terroir-reflective wines. The winesare undoubtedly there, so it now becomes amarketing challenge to convey the messageto the consumer.

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Vintage Notes2009A challenging year owing to drought.Excellent whites from cool sites in SouthAustralia, and some truly wonderful winesfrom West Australia. Parts of Victoria, too,enjoyed a memorable vintage, especially theMornington Peninsula, as did the HunterValley in New South Wales.

2008Quite a mild growing season in SouthAustralia, favouring white wines in particular,which have pronounced aromatic definition,especially in the Clare and Eden Valleys.

The vintage for New South Wales proved verygood, with the exception of the Hunter Valleywhere the bush fires had a catastrophic effecton the reds. Western Australia enjoyed anexceptional year for both white and redwines.

2007The key feature of the 2007 wine vintage inAustralia was drought, which reduced yields,but the effect was most keenly felt in theregions which produce grapes destined formass-market brands.

In South Australia the wines are dense andconcentrated, and in Victoria the reducedyield has led to a very high level of quality.Western Australia (Margaret River,Blackwood Valley, Pemberton) was lessaffected by drought, and indeed enjoyed asuperb growing season.

20062006 proved an outstanding wine vintage asmany areas harvested 2-3 weeks earlier thanusual, except in Western Australia, where acool summer and wet autumn reducedripeness and, ultimately, quality.

South Australia looks to be the very best region, especially therelatively cooler-climate zones, but Victoria made wonderfullyvoluptuous Pinot Noirs and Cabernet blends were widely successful.

2005Cooler weather at harvest time, with intermittent showers of rainhelping to retain freshness, meant that this will go down as avintage of finesse and elegance in which the grape varieties’characteristics are well-defined.

2004A successful year for Australian wine, particularly as winter andspring rains restored water table levels after the drought of 2003.

2003Drought was a huge influence in 2003 for vineyards throughoutAustralia, reducing crop size and adding significantly toconcentration levels.

Most successful varieties were the tannic red grapes such as CabernetSauvignon and Shiraz, which produced dense, structured wines ofpower, intensity and longevity.

2002Overall 2002was a vintage of excellent quality, especially forAustralian white wines and red wines from the river regions.

2001A summer heatwave and a dry spell concentrated the grapes andbrought about high degrees of ripeness, leading to wines of very goodquality and structure.

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NEW ZEALAND

he wines of New Zealand continue toenjoy an excellent reputation in exportmarkets with sales up 11% in the past

year. Production is massively dominated bySauvignon Blanc from the Marlboroughdistrict at the top of the south island. Thegrape was responsible for 70% of production(by volume) in 2011 and the region for 75%.

2011 Harvest

Marlborough 244,893

Hawkes Bay 35,533

Gisborne 14,450

Waipara 9,231

Nelson 7,854

Central Otago 7,104

Wairarapa 3,598

Auckland 1,464

Canterbury 254

Northland 111

Waikato 51

Other regions 49

TOTAL Tonnes 324,591

By Grape Type:

Sauvignon Blanc 224,412

Pinot Noir 31,156

Chardonnay 25,580

Pinot Gris 17,787

Merlot 9,092

Riesling 6,118

Gewurztraminer 1,836

Syrah 1,741

Cabernet Sauvignon 1,667

TOTAL Tonnes 324,591

The extraordinary success of MarlboroughSauvignon Blanc has led to massive newplantings, especially either side of the WestCoast Road heading up the Wairau Valley. Itremains to be seen whether there will proveto be significant frost risk in this previouslyunplanted area. In order to maintain anddevelop their reputation for one of theworld’s premium Sauvignon Blancs,producers in more established parts ofMarlborough are looking to develop sub-regional identities such as the Brancott,Waihopai and Awatere valleys. Favourableconditions and the onset of new plantingshave coincided to produce an uplift of+34% for the 2011 crop over 2010.

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Hawkes Bay, the oldest established region in the North Island, isalso commercially the most significant. The region has made itsname with Chardonnay for white wines and blends of Bordeauxvarieties for red, especially on the alluvial plain which has beendesignated as Gimblett Gravels. Syrah has also received muchacclamation. Note that the 2011 crop was noticeably reduced in2011 compared to 2010 for Hawkes Bay and most other NorthIsland viticultural districts.

New Zealand has developed a special reputation for Pinot Noir asthe premium New World producer, and indeed the only country inthe world where Pinot is the most widely planted red grape. CentralOtago now leads the field but there are first class examples, albeitoften small scale production from Wairarapa (Martinborough),Wairapa (North Canterbury), Marlborough and Nelson.

With Sauvignon so dominant among New Zealand’s white wines,producers (especially outside Marlborough) must choose whichother white variety to work with.Chardonnay, excepting someHawke’s Bay wineries, has rarely captured the imagination, so theprincipal choices are Pinot Gris and Riesling, either of which canbe made in a variety of styles with greater or lesser body and/orresidual sugar.

The varietal which has been exciting much interest recently,however, is Syrah. The preference for the French name for thisgrape rather than the Australian Shiraz is indicative of the style ofthe wine, more brisk red fruit and fine-boned structure than ultra-ripe and heady.

Vintage NotesIn terms of recent vintages, 2010was an excellent year across theboard, although quantity was greatly reduced for MarlboroughSauvignon Blanc. In 2009 the star performers were the red winesof Hawke’s Bay, which have marvellous depth allied to excellentstructure and have good ageing potential. 2008 is another fineyear but is particularly successful for the Pinot Noirs ofMartinborough and Central Otago.

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SOUTH AFRICA

n wine terms South Africa’s story over thepast 17 years has been one of relentlessexpansion and growing success. When

Nelson Mandela came to power in 1994the country’s wine producers could onceagain look to overseas markets, many ofwhich had shunned South African winesduring the apartheid years. Exports haverisen from 50 million litres in 1994 toalmost 400 million litres in 2010.

The major export market is the UK, whichtakes 32%, followed by Germany (18%),Sweden (10%) and Holland (7%). The wideexposure to competition has also spurred thecountry’s winemakers to improve the qualityof their wines. Prior to 1994, with much ofthe production destined for domesticconsumption, the innovation whichcharacterised winemaking in Australasia andSouth America had largely passed SouthAfrica by, but the pace of change since thenhas been rapid.

56% of South Africa’s vineyards are plantedto white varietals, with Chenin Blanc (18%),Sauvignon Blanc (9%) and Chardonnay(8%) comprising the lion’s share. Of the44% planted to red grapes, CabernetSauvignon occupies 12%, Shiraz 10%,Merlot 7% and the native Pinotage 6%.

Broadly speaking, the Bordeaux-blend redgrapes are to be found at their best inStellenbosch and in Constantia, thepeninsula of land surrounded by oceans ontwo sides which lies just below Cape Town.

The cool-climate areas of Elgin and Elimhave proved eminently suitable for theproduction of high-quality, aromatic varietalssuch as Sauvignon Blanc. The warmerregion of Swartland has seen significantplantings of Rhône grapes, both red andwhite, and the growing number of blendsmade from these varietals has been one ofthe most exciting developments in SouthAfrica in recent years, led by the iconic EbenSandie and supported by Chris Mullineauxand others.

In 2010 South Africa overtook France tobecome the fourth-largest exporter of winesto Britain, testament to the improving qualityand value of their wines. The trend looks setto continue, given the drive and innovativecreativity displayed by many of the country’sgrowers, with the strengthening rand the onlyobvious blot of the horizon.

Vintage Notes2010Favourable weather from mid-summerthrough to harvest time produced a vintageof very high quality, with a relatively lowyield resulting in wines of high concentrationand intensity.

2009Cool weather continued well into thesummer but the crucial final 3 months beforeharvest were hot and dry, leading to whatwas hailed as an outstanding vintage. Theonly blot on the landscape was the risk ofsmoke taint from fires which raged throughsome vineyard areas a few weeks beforeharvest, but serious producers eliminatedfrom their blends any grapes which had eventhe slightest hint of smoke.

20082008was a challenging vintage year forSouth African wine-producers, with plenty ofrain and a cool summer presenting problemsof rot and mildew in the vineyards. Careful grape selection was required andonly the best growers made fine wine. Thedry white wines benefitted from a coolergrowing season and they are full of aromaand fresh acidity. A benefit for the red wines isthat they are mercifully free of high alcohol,and show excellent varietal character withgood balance.

20072007 in South Africa produced wines withsaturated colour and outstanding aromaintensity, big, complex structures and fruit opulence.

The cooler weather later in the season wasideal for later-ripening, thicker-skinnedgrapes like Shiraz and Cabernet. Luckily, nooverripening took place thanks to theheatweave in January which concentratedflavours. Colour and fruit extract areimpressive, and the top wines are powerful,mouth-filling, and succulent.

20062006was a good year for reds and an evenbetter one for white wines in South Africa.Fruit quality was excellent, despite theadverse conditions in the vineyard, rangingfrom strong winds during the berry set, tointense heat that affected sugar levels.

20052005was a challenging vintage for both redand white wines in South Africa. The dry hotsummer that caused sugar levels to "hit theroof", followed on from a wetter than usualspring that resulted in fungal diseases for thegrapes and low yields in the vineyards.

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2004The 2004 harvest yielded the biggest cropever in South African wine history.The wines, both reds and whites, are ofclassic South African style, big, structuredand concentrated. Cool climatic conditionscaused the growing and ripening conditionsto be long, allowing grapes to ripen slowlyand fully on the vine, accumulatingcomplexity and fruit intensity.

20032003 is considered as the best vintage inSouth African wine history. Reds are sublime,robustly-structured, lush in fruitiness, yetwith excellent flavour definition and wellintegrated tannins. The whites are alsosuccessful across the board, from the earlyripening Sauvignon Blanc and Chenin Blanc,to the late-ripening Chardonnay.

2002A moderate quality wine vintage for most ofSouth Africa.

2001An excellent year. Quantities were down butquality is very good to excellent. The reds inparticular are well-structured and displayvery good depth of fruit. Some compare2001with great red wine years such as1974, 1986, 1991 and 1995.

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The wide exposure to competitionhas also spurred the country’swinemakers to improve the quality oftheir wines

USA

lthough 48 states produce table wine in the USA the market istotally dominated by California, with supporting roles playedby Oregon and Washington State.

California has long enjoyed a reputation for producing top-class winesfrom the Cabernet Sauvignon and Chardonnay grapes, fit to rankalongside the top echelons of Bordeaux and Burgundy, but regrettablywith prices to match. Most Californian wineries can sell over 90% oftheir production within America, so have less of a commercialimperative to export their wines than, say, Australia, which has a verysmall domestic market by comparison. High-volume producers likeGallo are the exception, but the real attraction for most consumers ofCalifornian wine is the quality of the premium, estate-grown wines.Those top wineries which do seek to export are doing so with an eyeon obtaining prestigious listings alongside European classics inleading retail and on-premise accounts.

The dominant areas within California for high-quality wines are theNapa Valley, home to outstanding Cabernet wines, and SonomaCounty. This latter has some cool sub-regions, such as Carneros andthe Russian River Valley, which have proved ideal for the productionof classy Chardonnay wines, and even Pinot Noir. Some of theChardonnays, in particular, display a minerality and restraint highlyreminiscent of top Burgundy.

A host of other varietals are grown in the state but not all haveachieved global success. Syrah has succeeded in pockets such asSanta Barbara, but Merlot fails to reach the heights it scales inPomerol or St. Émilion, while the style of Sauvignon Blanc made here,generally sweeter than examples from the southern hemisphere, doesnot find favour outside the USA. Zinfandel, a grape native toCalifornia, has worked well in developing a global presence, althoughits reputation for quality has been harmed by the ocean of mass-market wines produced from over-cropped vines in recent years.

High prices have harmed California’s ability to compete in the mid-premium sector but nevertheless their exports continue to grow,recently passing $1 billion. The European Union is the major market,accounting for 48%, followed by Canada (26%), Japan (6%), China(3%) and Hong Kong (3%). China has come from nowhere in thisrespect and its consumption of Californian wines is growingexponentially.

A reassuring trend in recent years has been the move away fromheavily-oaked, alcoholic, extracted wines towards a more subtle,restrained style. These wines are less tiring to the palate as well asbeing more food-friendly.

Further north, Oregon’s star continues to rise as a producer of fine,cool-climate Pinot Noir. As in Burgundy, the climate is marginal, withrainfall from the Pacific more a problem than the hail and frost whichcan bedevil the European bastion of the Pinot Noir grape. Great hopeswere held for Pinot Gris in Oregon, but so far this varietal is yet to makea meaningful breakthrough.

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Washington’s vineyards all lie to the east ofthe Cascade Mountains, and, if growers werenot allowed to irrigate, would suffer droughtconditions. The regularity of the climate, andthe freedom to irrigate as required, enablesthe fruit to reach optimum ripeness, and it isthe Bordeaux varietals such as CabernetSauvignon and Merlot which fare best. Withthe right level of investment there is noreason why Cabernet blends fromWashington should not make a significantimpact on overseas markets.

Vintage Notes20092009was a splendid year, with a burst ofheat in August bringing the grapes to perfect maturity.

2008Outstanding in California, where after a coolsummer an autumn heatwave deliveredwonderful fruit. More variable in Oregonwhere rain caused some dilution.

2007Brilliant. Leaving the grapes on the vine forextended ripening has yielded wines ofamazing structure and power.

2006Fabulous in Washington, careful selectionneeded elsewhere as quality was at times uneven.

2005In 2005 the Californian Cabernet Sauvignonwines are marvellous with classic structure,backbone and balance.

The Merlots are plump and attractive, andthe best will keep well. Pinot Noirs fromCalifornia are round, ripe and juicy, thosefrom Oregon a little less full but still very fineand elegant.

In Washington State the grapes were smallbut ripe and yielded wines of intense colourwith excellent balance and ripeness.

2004Very fine in Oregon, more patchy inWashington but Cabernets are very good. InCalifornia the cooler sites performed best in ayear of great heat.

20032003marked an excellent vintage for NorthAmerican wines. Small yields led to wines ofgreat concentration with deep, fruit flavoursand ripe tannins. Two of the best-performingappellations were Mendocino County andSanta Cruz Mountains (Ridge wines).

Oregon produced ripe, lush Pinot Noirs, andWashington’s red wines showed superbrichness and complexity.

2002Another very good vintage for California and Oregon, and one of the best ever in Washington.

A long, generally cool growing season inCalifornia provided very ripe fruit, with thecomplexity that comes from a long hang-time.

2001A vintage of big powerful wines, with intense,deep colour, precise aromatic purity andexcellent ageing potential. Merlots andCabernets from California are especiallysuccessful. Pinot Noirs are soft, silky-texturedand approachable.

A similar comment applies to WashingtonState reds, which seem very ripe andapproachable, with lowish acidity andtannin levels.

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CHILE

he earthquake in March 2010, alliedto naturally short crops in both 2010and 2011, has meant that Chile’s

inexorable rise in production has sloweddown, albeit temporarily. The production in2010 was 1.2 billion bottles, a fraction downon 2009 but still significantly ahead of2000’s figure of 852 million bottles and 505million bottles in 1996. Chile exports anunusually high percent of its production, with75% sold outside the country, and the UKand USA the leading import markets. Saleshave been increasing by value more than byvolume and strong emerging markets includeCanada, Brazil, Japan, Hong Kong andRussia. The significant loss of wine stockedin tank after the earthquake allied to thedouble whammy of a high value ChileanPeso and a weak US dollar have pushed upexport prices. The resulting reduction in bulkshipments and the development of premiumareas such as Apalta and Casablanca anddeluxe wineries such as Sena and Almavivaare also indicative of a strategic change ofemphasis. Aspirations are not withoutambition; current export values of US$1.6billion are targeted to increase to US$3billion by 2020. Chile’s main grape varietiesare the usual international suspects;Carmenère has yet to achieve theinternational reputation now enjoyed byArgentinean Malbec.

Vintage NotesIn terms of recent vintages the pick of the pastdecade have been all the odd years, 2001,2003, 2005, 2007 and 2009, although onehas to go back to 2000 to find the last reallyindifferent year.

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FINE WINE REPORT 2011

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The altitude regions of Mendoza, namely theAlto Agrelo and Uco Valleys, are seen as thebest source of Malbec, while Salta in theNorth and Patagonia , 2,000 km to theSouth, are emerging as the champions ofTorrontes and Pinot Noir respectively. Whilemost foreign trade is conducted in US$, thelocal market is jeopardised by Argentina’sinflationary Achilles heel, the current rate of30% having a significant impact onproduction costs. As with Chile, vintagevariation is relatively insignificant, but theArgentinians are justifiably proud of thewines from both 2003 and 2005.

ntithetical to Chile in many respects,Argentina only exports 20% of itsproduction, a figure which has

remained fairly constant, growing slowly interms of value and slipping slightly in termsof volume. The 2011 harvest at 1.94 billionbottles is down 10% on 2010 but exportslook set to build on the 10% increasebetween 2009 and 2010 with 22 millioncases exported in 2010. The biggest exportmarket is the USA, by a country mile,followed by Canada, Brazil, the UK and theNetherlands. The country’s signature grapevariety, Malbec, although only representing15% of plantations, now accounts for up tohalf of all exported wine, such is itsinternational cachet. Torrontes, its whiteequivalent, is somewhat more modest bycomparison.

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ARGENTINA

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THE FUTURE

o what does the future hold? The world of wine is ever-changing, partly due to technological innovation, partly due toevolution of customer tastes and, in recent times, to a warming

weather trend in certain parts of the globe.

The product itself is deeply susceptible to the vagaries of theweather during the growing season, and this, allied to all the factorsmentioned above, make it difficult to look forward and predict thefuture state of the wine market with any confidence. Economicfactors play a part too, as the fine wine market, in particular, has ahabit of reflecting broad movements in international stock markets.

Overall, however, from a quality point of view we are living in a GoldenAge for wine, certainly as far as the mid-to-upper quality levels areconcerned. At the bottom end quality is compromised by intensecompetition, falling prices and a desire amongst certain multi-nationals to create global brands out of products which do not easilylend themselves to such promotion, unlike beers and spirits. Whereproducers can obtain a fair return on their investment of money, timeand passion, however, it is clear that quality is more consistently highthan in any previous era. Whenever one comes across a creator of anyproduct of craftsmanship, whether it be wine, furniture, art or a pieceof technology, one wants to see endeavour, passion andconscientiousness reap its due reward. The development ofdiscerning new consumer markets, especially in Asia and SouthAmerica, seems set to ensure that this trend is maintained.

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FINE WINE REPORT 2011

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David Berry Green, BuyerDavid joined Berrys’ HeathrowTerminal 3 Shop in 1994, beforegaining a wider experience atCutty Sark and onwww.bbr.com. In 2001 hejoined our Buying team andfound his raison d’etre. He revels

in the excitement and responsibility of findingand nurturing new producers and bringing theirwines to the market.

His current challenge is to convince a wideraudience about Italy’s indigenous varieties andtheir natural affinity to food and he has recentlyrelocated to Italy to get to grips with this task. Hebuys wines from Alsace, Loire, Germany, Italyand Hungary and is the 8th generation of Berrysto work in the company.

Mark Pardoe MWWholesale DirectorMark’s background lay in hotelsand catering and after gainingmany qualifications in thatsphere he turned to the winetrade, becoming a Master ofWine in 1989 and gaining the

Madame Bollinger Award for Excellence inTasting, the first UK winner.

He now buys wine for Berrys’ Wholesalefunction but remains a regular lecturer on thesubject, and, indeed, was for many yearsclosely involved with the Institute of Masters ofWine Education and Examination Programme,preparing the next generation of candidates.

Simon Field MW, BuyerSimon turned his back on alucrative career in Accountancyto enter the wine trade andjoined Berrys in 1998. A Masterof Wine since 2002, Simon buyswine from Iberia, South Americaand England. His three favourite

areas of responsibility, however, areChampagne, Languedoc and the Rhône valley,completing a portfolio which, geographically,regularly allows him to combine his love of winewith another great passion, opera.

Jasper Morris MWBurgundy DirectorJasper established his ownsuccessful wine business, Morris& Verdin, in 1981, and sold theCompany to Berrys in 2004. Hepassed the Master of WineExamination in 1985 and now

acts as Berrys’ Buyer for Burgundy and NewZealand.

One of the world’s leading authorities onBurgundy, Jasper recently published a definitivebook on that region, Inside Burgundy, whichhas become a global success.

Alun Griffiths MWBuying DirectorAlun joined Berrys in 1994 andwas appointed Wine Director in1996. He became BuyingDirector in 2009. A Master ofWine since 1991, and one ofthe few to pass at his first

attempt, he lectures frequently on wine in theUK and Asia, as well as participating as ajudge in many wine competitions and tastingpanels.

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Berry Bros. & Rudd3 St James’s StreetLondonSW1A 1EGTel: +44 (0) 800 280 2440Fax: +44 (0) 800 280 2443

Berry Bros. & Rudd JapanKokusai Building 2F3-1-1 Marunouchi, Chiyoda-KuTokyo 100-0005Tel: +81 (0) 3-5220-5491Fax: +81 (0) 3-3201-5141

Berry Bros. & Rudd Hong KongSuite 430543/Floor China Resources Building26 Harbour RoadWanchaiHong KongTel: +852 2110 1680Fax: +852 2114 0996