Tuesday, September 21, 2010
McWilliam’s Vineyard
It comes as no surprise that McWilliam’s is offering its Yarra Valley vineyard, restaurant and cellar door for sale, but not the Lillydale Estate brand. Winemaking has long since been transferred to the Riverina, so the sale makes sense. The asking price for the 16-hectare property (over two titles) and improvements is $3 million. For details contact Mark Gunther (email mark@markgunther.com.au; A/H 0448 623 030).
Thursday, September 16, 2010
2011 Wine Companion
Blowing my own trumpet, which is something I should not do, I cannot help but report that the 2011 Wine Companion has this year sold more copies week for week than any previous edition: the sales of 4345 books in the week before Father’s Day was 781 copies more than the previous record set in 2008. There’s life left in the printed word yet, it seems.
Wednesday, September 15, 2010
Margaret River coal mine
It seems incredible, but an American/Australian syndicate is assessing the feasibility of an underground coal mine 15 km from the town of Margaret River. It leaves Premier Colin Barnett in a difficult situation, as he candidly admitted his government was pro-mining and pro-development, but recognised there was a conflict of interest between a mine and the character of Margaret River. Needless to say, the worthy vignerons of the region, never slow to protect their turf, are up in arms about the suggestion. So would I be if I had any interest in tourism in the region, and in particular, wine tourism. It is an appalling prospect.
Monday, September 13, 2010
Biodynamics
I was interested to read the blog that follows on biodynamics written by a Napa Valley winemaker, Stuart Smith.
http://biodynamicshoax.wordpress.com/2010/09/06/he-threw-down-the-gauntlet/
Courtesy of Brian Miller
http://biodynamicshoax.wordpress.com/2010/09/06/he-threw-down-the-gauntlet/
Courtesy of Brian Miller
Wednesday, September 1, 2010
Cork
The discussion around corks usually focuses on TCA and/or oxidation. This leaves aside the mechanical properties of cork, ie what is its quality, and how well has it been inserted into the bottle? The four corks illustrated were all removed from their respective bottles on the same day, all from ultra-premium/icon wines costing between a low of $80 and a high of $500+. Only the cork on the righthand side gives me as much confidence as one could ever have with a cork. The one on the left is a certain harbinger of problems to come, wine having travelled (some time ago) halfway up the cork on all sides. The two in the middle are FAQ (fair-average quality) and may or may not outlive the wine in the bottle.
Monday, August 30, 2010
Lappin' Lapin
French Rabbit Tops Green Wine Rankings. Read more here:
http://origin-www.fastcompany.com/1685150/benziger-french-rabbit-top-greenopias-green-wine-rankings?partner=homepage_newsletter
Courtesy of Brian Miller.
Wednesday, August 25, 2010
Reading the Grape Leaves
The release by the Victorian Department of Industries of the 2010 Murray Valley Winegrape Crush Survey makes bad reading for grape growers in the region, although could not have come as a surprise. In essence
• Farm-gate value of grapes fell by $35 million to $80 million, a 31% fall in revenue from 2009
• Production fell by 13%, down to 328,000 tonnes (2009 375,000 tonnes)
• The average price per tonne fell 24% for red grapes to $311 and 28% down for white grapes to $283
• These prices are well below the average vineyard cost of $376 per tonne
• Since 2005 grower revenues have fallen from close to $200 million down to $80 million.
But that is only part of the story. Win, lose or draw, the water that makes grape growing possible in the Murray Valley is going to become more expensive. The water outlook for growers in the Riverina is better in the short term, but in the long run there may be little difference between the regions. So the cost of production will increase.
Continuing the bad news, the quality and price advantages that Australia once held over its New World and Old World competitors alike has all but disappeared. It matters not that Australia pointed the way for its competitors via its Flying Winemakers, by publishing its Vision 2025, and by achieving its 2025 goals in seven, not 30 years.
Yet there is hope that Australia may once again prove itself to be the 'Lucky Country'. Its extraordinary economic performance in the face of the GFC is but part of the broader trade ties it has with China, Japan and India (and with the smaller Asian economies). Wine is a global commodity these days, and will become more so in the years ahead, and Australia is not the major wine player in Asia: France occupies that role.
But China is already our fourth-largest export market, and — viewed from the Chinese side — has an imported wine share of 20%, second only to France with 40$, and a long way in front of Chile, California and South Africa with 7% each. At the present time, reports suggest up to 90% of all wine sold in China is domestically produced, but most agree a large proportion of this wine is made by blending a small percentage of (true) Chinese wine with imported bulk wine.
This in turn reflects the generally unsophisticated Chinese market, and is no surprise. Indeed, it is a positive, because the consumers of this wine are overwhelmingly Chinese, rather than expats or tourists. The rate of lifestyle change in China is phenomenal: for example, when I started Coldstream Hills in 1985, there was only one privately owned car in Beijing (all others were state owned).
As the number of Chinese with serious amounts of disposable income continues to soar, it is inevitable that sales of imported wine with a tangible pedigree will follow suit. Other positives are the suitability of the various Chinese cuisines to wine; the absence of religious barriers; the long history of alcohol consumption; and the physical proximity of China (compared to Europe or North America).
If Australia is to maintain its share of a rapidly growing wine market, it will need to provide wine across the full spectrum of price, from beverage (technically premium) wine at an equivalent of less than $AUD10, super-premium ($10-$15), ultra-premium ($15-$50) and icon (over $50).
Premium volume is greater than all other categories combined, and provides the essential entry point product. It is here that the Murray Valley and Riverina come into their own. Lest it be though this is inconsistent with my gloomy introduction, the contempt born of familiarity that pervades the UK market, less so but still a factor in the US, need not be an issue in China.
If the opening of Wine Australia offices in Beijing, Shanghai and Hong Kong achieves the anticipated success, the present surplus may turn to a shortage in a very short time, and a shortage at a critical time in the development of the Chinese market will have serious long-term consequences.
• Farm-gate value of grapes fell by $35 million to $80 million, a 31% fall in revenue from 2009
• Production fell by 13%, down to 328,000 tonnes (2009 375,000 tonnes)
• The average price per tonne fell 24% for red grapes to $311 and 28% down for white grapes to $283
• These prices are well below the average vineyard cost of $376 per tonne
• Since 2005 grower revenues have fallen from close to $200 million down to $80 million.
But that is only part of the story. Win, lose or draw, the water that makes grape growing possible in the Murray Valley is going to become more expensive. The water outlook for growers in the Riverina is better in the short term, but in the long run there may be little difference between the regions. So the cost of production will increase.
Continuing the bad news, the quality and price advantages that Australia once held over its New World and Old World competitors alike has all but disappeared. It matters not that Australia pointed the way for its competitors via its Flying Winemakers, by publishing its Vision 2025, and by achieving its 2025 goals in seven, not 30 years.
Yet there is hope that Australia may once again prove itself to be the 'Lucky Country'. Its extraordinary economic performance in the face of the GFC is but part of the broader trade ties it has with China, Japan and India (and with the smaller Asian economies). Wine is a global commodity these days, and will become more so in the years ahead, and Australia is not the major wine player in Asia: France occupies that role.
But China is already our fourth-largest export market, and — viewed from the Chinese side — has an imported wine share of 20%, second only to France with 40$, and a long way in front of Chile, California and South Africa with 7% each. At the present time, reports suggest up to 90% of all wine sold in China is domestically produced, but most agree a large proportion of this wine is made by blending a small percentage of (true) Chinese wine with imported bulk wine.
This in turn reflects the generally unsophisticated Chinese market, and is no surprise. Indeed, it is a positive, because the consumers of this wine are overwhelmingly Chinese, rather than expats or tourists. The rate of lifestyle change in China is phenomenal: for example, when I started Coldstream Hills in 1985, there was only one privately owned car in Beijing (all others were state owned).
As the number of Chinese with serious amounts of disposable income continues to soar, it is inevitable that sales of imported wine with a tangible pedigree will follow suit. Other positives are the suitability of the various Chinese cuisines to wine; the absence of religious barriers; the long history of alcohol consumption; and the physical proximity of China (compared to Europe or North America).
If Australia is to maintain its share of a rapidly growing wine market, it will need to provide wine across the full spectrum of price, from beverage (technically premium) wine at an equivalent of less than $AUD10, super-premium ($10-$15), ultra-premium ($15-$50) and icon (over $50).
Premium volume is greater than all other categories combined, and provides the essential entry point product. It is here that the Murray Valley and Riverina come into their own. Lest it be though this is inconsistent with my gloomy introduction, the contempt born of familiarity that pervades the UK market, less so but still a factor in the US, need not be an issue in China.
If the opening of Wine Australia offices in Beijing, Shanghai and Hong Kong achieves the anticipated success, the present surplus may turn to a shortage in a very short time, and a shortage at a critical time in the development of the Chinese market will have serious long-term consequences.
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