Seminar 4: Michael Prinz zu Salm-Salm, the VDP classification systems as marketing tools for approaching new markets.
Michael Prinz zu Salm-Salm, President of the VDP (verband deutscher prädikatsweingüter ) started by stating that Germany in some way was an emerging wine country, or re-emerging more correctly. The new emerging classification systems of the VDP have created new styles of wines and new terms that need to be marketed and explained across the world. More specifically here speaking about the Erste Lage (First Growth or Grand Cru) classification of the best vineyard sites and the Großes Gewächs or GG classification of the best dry ( max 9 g. sugar/l) wines from the Erste Lage sites.
To explain the need for these new classification systems and re-branding of Germany Michael Prinz zu Salm-Salm gave us a brief review of the German wine classification history.
VDP was founded in 1910 as the first wine high quality producer organization in Germany with 161 members. In 1991 severe changes was made to ensure a consistent high quality of the associated estates and 65 estates was kicked out. Today the VDP has 196 members that cover 4% of Germanys entire winegrowing area equivalent to ca. 4000 HA. (9.900 acres) 54% of these 4000 HA are planted with Riesling in contrary to the 21% that Riesling covers of entire Germany.
Then in 1971 the new German wine law was implemented and caused nothing but problems for the VDP estates and German wine in general, especially on export markets because it is: too complicated, negative, difficult to understand and creates a labelling hell!
Wanting to fight for the image and success for German quality wines the VDP in 2001 created a new system on their own to make it easier for the consumer and to ensure quality:
The VDP members are accepted into the organization judged upon the quality of the estate (Bordeaux style classification) and the Erste Lage vineyard sites are judged upon individual site quality (Burgundy style classification) and these were then combined to create following quality classification system:
1 ESTE LAGE: wines from best vineyard sites from VDP producers.
2 GROßES GEWÄCHS: dry wines from best vineyard sites from VDP producers.
(sweeter styles of wines from Erste Lage sites uses the well known “prädikats” kabinett, spätlese, auslese etc)
3: Orts- & Terroir wines, classified as wines of superior quality. “Village”
4: Guts weine/wines
These 4 categories applies to all regions in Germany and have clear rules as to yields, varieties, packaging, release dates etc.
Here Michael Prinz zu Salm-Salm gave the word to Bernard Burtschy, moderator of the seminar that started a longer explanation about the nature of classification systems. Some of the main points were:
1:They are very hard to implement and unpopular in the beginning, but then with time becomes very popular and everyone wants to join.
2: They are too wide and are they really a guarantee for quality in general?
3. They build on criteria that is old-fashioned and not up-to date at all. They are a frozen picture of how the situation was when the appellation was founded.
Bernard Burtschy then asked the question if an appellation can be a brand? And here contrasting the French and German classification system, ending with the conclusion that the French AOC system is no longer guarantee for quality whereas the German VDP classification systems are. Interesting fact to mention is that 55% of all wine producing area in France is classified within the AOC system, in Germany as mentioned; only 4% is classified by VDP.
This led into a longer discussion on quality assessment of vineyard sites in general; if the appellations in general ensure quality and what happen if governmental powers take over the administration of the appellation system in the future. What about the absence of protection; laws or more simple agreements? Here speaking about the exclusivity of an appellation e.g. Champagne. This all finally led to the conclusion that there is still a lack of agreements of styles of wines in Germany. Clear definitions of kabinett, spätlese etc is needed.
The seminar finished with a question on how to ensure the quality of wines from Erste Lage and protecting this classification from vulgarization and Michael Prinz zu Salm-Salm rounded everything of by stating that keeping VDP on private hands will be a guarantee to ensure the quality in the future. To ensure that the terms VDP + Erste Lage and Großes Gewächs really are only to be found on wines from the best producers and the best sites.
Seminar 5: Angelo Gaja; the evolution of Italian wine.
Always energetic Angelo Gaja seemed to be in top shape and started his full speed seminar with a small presentation of himself, his company and Piemonte as region. His family company was founded in 1859 and had dedicated all these past 150 years to Nebbiolo. The region has always had an immense concentration of producers/growers with a great knowledge of terroir, but has due to the climate originally difficulties reaching proper ripeness in most years. This has changed now due to the climate change and almost every single vintage since 1995 has been ripe. Especially the last 10 vintages have shown extraordinary quality which has created great optimism.
Angelo Gaja spoke very passionately about Piemonte’s richness in great vineyards as something magic! Unmatched anywhere else in the world. The most spectacular region that exists! Piemonte is a region with both a long history and identity and high quality (800 years of growing Nebbiolo) and a great promising future.
Angelo Gaja here briefly contrasted Piemonte and Tuscany; calling them two very complimentary regions and not competitive in any way. Piemonte produces many great and different wines from one variety whereas Tuscany produces many great wines from many different varieties, both indigenous and international. He then returned to a more detailed description of his family’s history in Piemonte starting with his great-grandfather Giovanni Gaja that dedicated his life to improvement of quality of the vineyards, something that was highly needed as 4 out of 10 vintages at that time were too bad and was literally thrown away. Angelo Gaja’s father then started branding the name “GAJA” and not only Barbaresco, but “Barbaresco from Gaja” to show that Barbaresco could also be of good quality. (Barbaresco did not have a good reputation in the old days). This finally resulted in the launch of the new label design we all know today, with “GAJA” stated much bigger than “Barbaresco”.
Angelo Gaja then continued explaining about the big change that the region has experiencing the past 30 years with a huge focus on production of high quality wines. Here also mentioning the general quality improvement all over Europe the past 30 years and that the “New World” has learned much about understanding of terroir and originality from Europe, but that he was sad to see now the counter wise influence from the “New World” on European wines, making them richer and less elegant. He explained that the richer more opulent style of wine is easier to understand and enjoy for inexperienced tasters and that really good tasters are needed to understand elegant wines. He emphasized the need for promoting elegant wines for their finesse and delicate complexity, but recognized that the problem might be that they are more difficult to put words on and to explain and describe than the more opulent wines.
Here he started a hilariously funny comparison of Cabernet Sauvignon and Nebbiolo that left the entire room laughing for a very long time! Cabernet Sauvignon as John Wayne; a man filling the room, the centre of attention, big and bold “beef, lam, lam, beef”, safe, big and simple and satisfying his woman each night! Whereas Marcello Mastroianni was used as the picture of Nebbiolo; the shy, noble and intelligent man that made the women at his side queens! A closed book, always hiding… The elegant wine that creates music together with food.
When we had all stopped laughing (took some time… ) Angelo Gaja was asked about his opinion about the financial crisis. His immediately reply was that the crisis was there and real, but not the wine producers fault (!) and that he expected to see clear changes towards more optimism late 2010. However he found it much more important to state that “Luxury starts where needs ends” and that wine is luxury and luxury is fantasy and dreams… Luxury is never ending and the power of luxury wines lies within this. “You are the power, you! Close to the wine, understanding the role it plays in culture…” was his strong and impactful words to us.
He was then asked about his opinion about the global warming and replied that we should all look at the positive sides of it instead of the negative. That there of course might be a need for the implementation of new varieties in some regions but that the change of climate has been positive for many regions too, there amongst Piemonte. Being a cool Northern region with late ripening varieties it really had only benefitted from the increasing temperature and would only continue to do so in the future. He emphasized that alcohol in wine is a good thing (if not exaggerated of course). It is basically transformed sugar supported by some 7-800 other substances. He wanted to measure wine for its natural qualities and fight for quality wine! He very strongly spoke about being against the “alcohol frightened people” and seeing this alcohol fright as a danger for the future, a danger of loss of quality concerned consumers. He thought that the governments are making a great mistake by painting this black-white picture of alcohol being only bad; distinction is need! Wine versus other alcoholic beverages to protect the future world of wine. There is a need for awareness against intolerance in our industry; a tolerance and respect for other producers too.
Angelo Gaja ended this energetic high speed seminar that left the translators severely frustrated many times by stating, “That we must all be strong enough to single out. We must trust and believe ourselves and never stand still but be progressive and innovative. It is a question of life of philosophy, not just money!” … “A re-united Europe of good producers fighting for success, respect and quality” … “I believe in the future of Italy, based on passion and diversity. A land of great opportunities, variety and diversity with white wines being the next step of progress.”
Seminar 6: Ivanhoé Johnston, the negociants of Bordeaux; did they all develop out from what Maison Johnston started?
Ivanhoé Johnston first explained us briefly about his family company Nath. Johnston & Fils that was founded in 1734 and was now in the hands of the 9th generation. He then showed us a multitude of old very interesting documents to give us a idea of how the trade of fine Bordeaux wines was in the old days. Amongst these was one explaining the “Vinification of the New French Claret at Chateaux Margaux” and several other documents from the beginning of the classification of the Cru’s. Especially one was interesting, a document from 1810 defining Lafite, Lator, Margaux and Haut-Brion as the 4 main Cru’s. Many curious details was derived from the old documents, e.g. that it was clear that because of the fact that Bordeaux wines at this time was left pure and light it was common to add Italian and Spanish wines to give colour and strength.
He showed detailed data on volumes and prices back to vintage 1813 showing an interesting doubling of prices from 1813-14. From the old shipment documents we saw that a certain kind of self-justice was common when it came to duties and customs and also blending of wines to create bigger volumes! One document showed that Mouton, Lafite and Margaux was blended together to create a bigger volume in one year and in several years Nath. Johnston bought the entire production from several Chateaux.
Many things changed in 1855 with the heavy promotion of Bordeaux wines for the world exhibition and the classification of the Cru’s, which led to an increase of production. This positive tendency was further strengthened by the arrival of the train and the development of the export markets UK, USA and Russia. 1850-70 was a golden period and created a huge increase in business for Nath. Johnston.
Then in 1882 the plagues arrived; mildew and phylloxera, the American prohibition from 1919-1933, the Russian revolution and the 1929 Crisis, which all together created a total loss of markets and a considerable drop of prices and production.
Many Chateaux was left with huge stocks and on top of this the 1st WW started. At this time one barrel of Bordeaux was sold for 54£ and one barrel of Beaujolais for 55£!
Then in 1945 things started again with the development of the exports to UK, USA and Canada, which was supported by a growing interest for wine plus a better economy. Also, at this time, the allocation system was developed; meaning that you bought e.g. 10% of the harvest one year to be entitled to buy 10% the next year, no matter the quality of the vintage. This system created many problems for customers in 1991 & 1992 because of the bad quality of these two vintages and this again created a loss of allocations and dramatic shifts in the market.
Here Steven Spurrier took over by speaking briefly about UK’s role as purchaser of Bordeaux and the long and close historical relationship between UK and Bordeaux. This led into a discussion about the sale of weaker vintages, the so-called “restaurant- vintages” that customers buy only to keep their allocation for coming vintages, but that is usually always sold for 2nd batch prices.
Steven Spurrier ended the seminar pointing out that this is a common responsibility for the trade and that we all need to work on the quality of the trade.
Seminar 7: Jacques Berthomeau; the world of wine and the governmental administrations; conflict or understanding?
Jacques Berthomeau started introducing himself and explaining about his experience in the world of wine. He has a “double-personality” blogging at night and working with wine administration at day. He is now working with both French national administration and UE administration and has a background in sales of wine and played a big role in mending the conflict between France and Italy (agreeing on the common UE legislation for wine).
He explained us that the early UE wine politics was initially based on French legislation and politics which was what created the “war” between France and Italy because practically everything was allowed in Italy’s former system as they “just wanted to export” whereas France had a much more rigid, but good traditional system with other focus than Italy. It demanded many comprises from both sides to mend this fight and reach agreement on what is today’s existing EU wine legislation. The implementation of this new set of rules demanded more intense regulation in some markets than others and created a big demand for checks against fraud and also regular quality checks.
Jacques Berthomeau the asked “So is the administration too heavily regulated? Is it really necessary to have these “fames” to avoid fraud and “wars” ? “
Jacques Berthomeau recommended seeing the system as something positive, a system with values behind each initiative. A system to ensure a good and mutually beneficial relationship behind agriculture/viticulture and administration.
He mentioned here that there sometimes arose great difficulties and conflicts as the legislation for agriculture sometimes was made as “one” and not separately for viticulture. He here mentioned the problems with the bio-legislation that was run by people from agriculture of other bio-products than wine. The problem here is of course the lack of understanding and knowledge about wine of the people behind the legislation, also for bio-wine.
Jacques Berthomeau them moved on to the question of conflicts between national interests and UE interests and recommended us all to express our views and be open for comprise if we want to have influence and affect decisions. It is important to exercise pressure and highly important to speak up and make attention but at the same time stay attached to the local region and traditions. For the region to speak with one voice! Join a common cause and join forces; help each other to get heard. 1. Do not just analyse 2. Propose solutions 3. What do we have in common? 4. What can we do to make our voices heard?
Jacques Berthomeau rounded up his seminar with stressing the need for maintaining focus on producing intelligence and know how and also emphasized the importance of speaking up to maintain position and privileges. Integrating public emotion into debate and decision making…
Then the moderator Elisabeth Morin-Chartier, UE deputy took over and underlined how important it was that the administration listens to and watch what is going on in the wine world and also said that initiatives from the producers side always was welcomed as a positive thing. She continued lining up that the main task for the UE wine administration is to prepare for the future to ensure success and sustainability. Dialogue between administration and producers are highly important to ensure this and she mentioned that a team of specialists working as a link between the producers and the regulative body already exists. She then described the European politics as strategies for the future with a global view to structure and manifest Europe as an entity. “The UE representatives are there to make your voice heard! They were elected by you and work for you; use them!”
She recommended us all to use World Wine Symposium for creating a shared goal and a structure for the future and said, “It will be crucially important to revamp the agricultural future. We stand before a huge change; an option of change. A change for the better; let us use this chance to create a future for us all…”
A comment was made on the need for a re-organization in France and also a question on how to stop the decrease in wine consumption and Elisabeth Morin-Chartier replied that yes, there was need for both action and changes within France and within the UE. Michel Bettane rounded the seminar off pointing out that it was hugely important to keep wine and other alcoholic beverages separate and underlined again the cultural importance of wine as a special heritage.