BKWine Brief Blog

Big Brother Champagne

2008-05-12T10:45:00.000+02:00

The small village Champagne in Switzerland has been the subject of posts previously in the Brief when they attracted the attention of the Champagne region and CIVC in France. French Champagne did not like that the Swiss village used the same name, believing that it could confuse consumers, and made a deal with the Swiss government that force the Swiss wine producers to stop using their village name on the bottles. (Instead they tried selling their wine under the names Libre-Champ and C-ampagne, albeit clever but with not much success.) Champagne (the French version) has also stopped a maker of biscuits in the Swiss village to stop using the name and to refer to the biscuits as made from a traditional recipe from Champagne. Recently the locals of the village staged a protest where a forklift symbolically draped in a French flag uprooted the sign with the village name at the edge of the village. Watch the "dramatic" video on YouTube. (And watch more wine videos on BKWine TV)

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World's best sommelier interviewed on WineFairy.com

2008-05-09T09:13:00.000+02:00

In 2007 Andreas Larsson was crowned world's best sommelier. He was recently interviewed on the American internet radio WineFairy.com. Listen to the interview with Andreas on what his favourite wines are, and on his other great passion, music and his favourite music personalities Bach and John Coltrane on WineFairy.com (mp3 download)

And if you want to see him "live" you can watch our video interview with him on BKWine TV (in Swedish though).

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World's best Chardonnay

2008-05-09T09:12:00.000+02:00

The competition The World's Best Chardonnay was recently held in Burgundy. 60 wines were awarded gold medals and 202 had silver out of 953 contestants. The gold medals were well spread out over the world: South Africa, Australia, Austria, Bulgaria, Chile, Spain, Canada, Greece, Israel, Italy, Moldova, Romania, and Switzerland. The full results here. www.chardonnay-du-monde.com

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Blogging wine economists

2008-05-09T09:11:00.000+02:00

The American Association of Wine has launched a new blog on the theme of wine, economics and marketing. Some of the subjects discussed already are: the extension of Champagne, wine in China and valuing Bordeaux vintages. Read more: www.wine-econ.org/

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Cash in on your old bottles

2008-05-09T09:10:00.000+02:00

Parisians in need of cash can now go to the pawn shop and leave their wines. Crédit Municipal de Paris, who opened shop for wine deposits recently, received wine valued at €45,000 in the first 48 hours. Someone came with an old bottle of Bollinger champagne (€1000), another person with a 1961 Pétrus (part of a lot valued at €17,000), and much more. The wines will be stored in an 18th century cellar in Paris until the are recovered by their owners or sold. Times.co.uk and www.creditmunicipal.fr

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WiFi and climate control in the vineyard

2008-05-08T10:40:00.001+02:00

In the last Brief we talked about GrapeNetworks who has developed a solution based on climate and humidity sensors connected through a WiFi network to improve vineyard management. It allows for better resource and water management and potentially less use of harmful substances in the vineyard. There's now a video available that you can watch to learn more about the solution. www.grapenetworks.com

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Petition for cork-cork

2008-05-08T10:38:00.002+02:00

A group of environmentally minded people have launched a petition to preserve and promote the natural cork, and in particular the forests that produce the cork bark. A change to screw cap risks damaging the today extensive and well managed cork oak forests. The group says that the oak forests are important for example for the threatened species the Iberian Lynx and the Iberian Imperial Eagle, and that in Portugal the oak forests reduces the CO2 emissions with 5%. The famous nature photographer Yann Artus-Bertrand (e.g. The Earth Seen From the Sky) and Jean-Marie Pelt, president of the European Ecological Institute are two names behind the petition. The site www.petitionpourleliege.org and the petition text in English.

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Australia biggest exporter to Sweden

2008-05-08T10:38:00.001+02:00

In dramatic contrast to Denmark, let's take a look at Sweden and the sales statistics. The "old world" is struggling considerably more here, and in particular France. Here's the top ten exporters of wine to Sweden in 2007:

1. Australia, 16.5% (an increase with +31.7%, i.e. in 2006 the market share was 13.3%)
2. South Africa, 15.7% (+10.3%)
3. Italy, 15.4% (+7.6%)
4. Spain, 14.7% (-3.6%)
5. France, 9.7% (-0.3%)
6. Chile, 7.1% (+7.9%)
7. USA, 5.1% (-9.8%)
8. Germany 4.8% (+4.9)
9. Hungary, 3.4% (-7.6%)
10. Argentina, 2.5% (+15%)
(NB: The increase/decrease is expressed differently for Sweden and Denmark so those numbers are not directly comparable.)

If instead you look at the number of products from each country the picture is quite different. Retaining the order above here's how many items are listed from each country:

1. Australia: 484
2. South Africa: 537
3. Italy: 1238
4. Spain: 717
5. France: 2418
6. Chile: 285
7. USA: 487
8. Germany: 418 (of which 7 are red)
9. Hungary: 55
10. Argentina: 149

It should be noted that the numbers do not represent the number of items that are available in reality on this monopoly market. Many references on the list are out of stock or not available for other reasons so the number is generally far above the real number of available wines.

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France in the lead in Denmark – for the moment

2008-05-08T10:30:00.000+02:00

France, Italy and Spain are holding on to their positions on the Danish market although they have lost a few percentage points in market share. This is the top list (source: vinavisen.dk and Vin og Spiritus Organisationen i Danmark, www.vsod.dk):

1. France, 19.7% (-1.1% från 2006)
2. Italy, 14% (-0.9%)
3. Chile, 14% (+1.1%)
4. Australia 12.5% (+1.9%)
5. Spain, 11.3% (-1.5%)
6. South Africa, 6.4% (+0.4%)
7. Germany, 5.7% (-0.5%)
8. Argentina, 4.4% (-0.1%)
9. USA, 3.5% (-0.8%)
10. Portugal, 1.4% (+-0%)

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The Swedish wine and spirits monopoly makes 39 million in profit

2008-05-02T08:59:00.001+02:00

The gross profit at the Swedish monopoly retailer was 39 million euro (366 M SEK) in 2007. It is a drastic decrease from 2006 when the profit was 64 M euro (602 M SEK). The Systembolaget explains the difference with that the trading margins were decreased in 2007 and they made less profits from selling real estate. In spite of the lower result Chief Executive Anitra Steen says "2007 was a successful year for Systembolaget. We fulfilled our tasks assigned to us by the government and answered to customer expectations." Well, 39 M Euro is perhaps not that bad, not least if you consider the constantly repeated mantra at Systembolaget that "we are not a profit motivated company". In fact, the profit target is set by the owner, the government (perhaps without being very motivated by what it will be?) and then it is relatively mechanically achieved by the monopoly. From that perspective it can indeed be an advantage with a monopoly.

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Californian wine snapshot

2008-05-02T08:58:00.001+02:00

Wine is, according to a press release from The Wine Institute, the number one finished agricultural product in retail value in the US. Here's some more statistics:
-- California produces 90% of all wine in the US
-- California is, if one regards it as a country, the world's fourth wine producer, after France, Italy and Spain
-- There is 2687 wineries and 4600 grape growers
-- 213,000 hectares (527,000 acres) of vineyards
-- 3.2 million tons of grapes are harvested to a value of $1.82 bn
-- Chardonnay and Cabernet are the leading varieties followed by Merlot and Zinfandel
-- 60% of the grapes are red and 40% are white (green)

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American wine sales increase with the US too

2008-05-02T08:56:00.000+02:00

Domestic sales of American wines increased to 1,700 million litres, up 2%. Measured in value, sales within the US was worth $18.9 billion.

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Record wine exports from the USA

2008-04-30T08:54:00.000+02:00

2007 was a record year also for American wine exports. Wine worth $951M (€606M) were shipped, up 8.6% in value. Californian wines completely dominate US exports accounting for 95% of all exports. 50% of exports are to the EU (up 7%), about a quarter goes to Canada followed by Japan, Switzerland and Mexico.

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Record exports for Austrian wines

2008-04-30T08:53:00.002+02:00

Austria continues to develops its wine exports. In 2007 it is estimated that exports will reach 56 million litres or €105 M. Contributing to the positive figures is the fact that the average price of a bottle sold on export has also increased. The biggest markets are Germany, Switzerland and the USA. www.winesfromaustria.com

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Old vines – and again

2008-04-30T08:53:00.001+02:00

The vine on the Place de la Victoire in Bordeaux was planted sometimes towards the end of the 18th century and it is still standing. Like all other vines it needs pruning and this year it was trimmed on March 15 by three pruning experts. The grape variety is the rare Cruchen Nègre. It was planted by the family Duverger and one family member still lives in the building where it is. As far as we know, the grapes are not used to make wine but if they were it would certainly by TVV – très vieilles vignes. www.bordeaux.fr

Another very old vine can be found at the restaurant sous le Cep d'Antan (under the ancient vine) in Monsegur in the Bordeaux district. It is believed to be 380 years old! Perhaps the oldest vine in the world? Does any reader know of an older vine? www.souslecep-dantan.com

(Thanks to Chronique Souvent Bordelais for the info.)

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Vin & Sprit with Absolut sold to Pernod Ricard

2008-04-30T08:51:00.000+02:00

Finally, the Swedish state has sold V&S Vin & Sprit, the producer of Absolut Vodka. After an outdrawn bidding process the French company Pernod Ricard has come out as the winner. They will be paying SEK 55 billion (€5.62bn). They outbid Bacardi, Fortune Brands (the Absolut distributor in the US) and EQT (a private equity group in Sweden). The importance of the deal is of course the brand Absolut, one of the best selling vodkas in the world. With the acquisition Pernod Ricard with become the second biggest spirits producer in the world. Read more in the Financial Times.

(A historical note: Vin & Sprit used to be the monopoly importer in Sweden. In the 90s, when the monopoly for importing wines and spirits was abolished, it became a still state owned importer on a competitive market. It was already the owner of the Absolut brand – an old Swedish vodka brand. It is still a wine and spirits importer but the Absolut accounts for the vast majority of revenues and profits. In parallel Sweden has retained its monopoly for wine and spirits retail. The retail monopoly is managed by the chain of stores called "Systembolaget".)

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BKWine Pick: Racine

2008-04-29T09:49:00.000+02:00

Racine
Paris 2e

A small wine bar in one of the old 'passages' (indoor shopping gallery) close to the big boulevards. The peculiarity with this wine bar is that all wines are organic, many are even biodynamic and most are made entirely without sulphur (unusual). In other words, very interesting wines and sometimes also very good. But sometimes you can also understand why it is actually a good idea to use some sulphur in the wine making… You can also get some small things to eat: cheese, charcuteries and a few hot dishes.

Click here for address and more recommendations.

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BKWine Pick: Mas Champart

2008-04-29T09:48:00.000+02:00

Mas Champart
Saint-Chinian

Isabelle and Mathieu Champart is a charming wine maker couple who fell in love with the spectacular scenery in Saint Chinian, one of the appellations in the Languedoc region, a bit to the north of Béziers. They make both red and, more unusual for the region, whites. Their whites have an excellent acidity and freshness in spite of the very hot climate. Their Vin de Pays is made from 100% Viognier with nice fruit and quite aromatic – as it should be. The white Saint Chinian is made from Marsanne, Roussanne, Bourboulenc and Grenache Blanc, giving it a complexity and body mixed with a hint of oak aging. They also make excellent reds of course. My favourite is the cuvee Côte d'Arbo, lots of spices in this wine made primarily from Syrah grapes.

Click here for address and more recommendations.

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BKWine Pick: Vignoble Tour de Verdots

2008-04-29T09:45:00.001+02:00

Vignoble Tour de Verdots
AOC Bergerac

David Fourtout is the winemaker and owner of this excellent winery in Bergerac, a little bit east of Bordeaux. In the recently built winery building he has installed specially designed fermentation tanks to achieve the characters he wants. One floor down, underground, he has the barrel cellar that where you can get a close look at the soil thanks to the naked walls, as well as a curious underground river. He makes arrange of wines from modestly priced every day drinking wines to very ambitious super-cuvées. Don't miss his "Le Vin selon David Fourtout" (The Wine according to DF)!

Watch the interview with David on BKWine TV!!

Click here for address and more recommendations.

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Welcome to the BKWine Brief nr 57, April 2008

2008-04-28T09:37:00.001+02:00

Welcome to the BKWine Brief nr 57, April 2008

Snow in Chablis.

It's not exactly what you expect in April but we had it a week ago when we were there. On the other hand, perhaps it doesn't make that much of a different since you spend most of the time in the wineries, tasting. Or in some nice and cosy restaurant sampling the local food with the wine.

But this time of the year is a particularly sensitive period in the vineyards. The buds are starting to break. If you get some cold frost nights it can cause serious damage in the vineyard. Various anti-frost measures have been invented by nervous and concerned winemakers: Oil burners to heat the air, spraying water to create an insulating ice shell (yes, it works), big propellers to move the cold air and other things.

The big news this month (from a Scandinavian as well as an international perspective) is the sale of V&S Vin & Sprit. It is the Swedish government who sells it to Pernod Ricard. It will put an end to a strange period in Swedish alcohol policy history. Vin & Sprit is one of the world's most successful vodka brands – Absolut Vodka. It has a tremendous market share, not least in the US, not least thanks to clever and not very subtle marketing. At the same time, the company is owned by the Swedish government who maintains that it is essential for the public health to maintain a monopoly market in the country for wine and spirits, on the one hand, and on the other hand V&S pours large quantities of vodka over the rest of the world. A logic that has been difficult to understand. But that will now come to an end with the sale of Vin & Sprit. The only thing to regret is that they did not abolish the monopoly too.

Wine Tours

We have now finished the planning of next season's wine tours and are very happy to present the full program to you in this BKWine Brief. We will have three exciting tours this autumn:
- Bordeaux in early October
- Douro in Portugal later in October (when it's still nice and warm, we hope), and
- Champagne with both wine and gastronomy in November

Read more details about the tours on my site.

Britt

PS: Recommend to your friends to read the Brief or forward it to them !

Vinordic on April 23-26

2008-04-01T09:25:00.000+02:00

Scandinavia’s biggest (semi-annual) wine and spirit show will this year take place on April 23-26. They have extended the fair to cover four days, two of which are reserved for trade only and two that are also open to the public. More info vinordic.com

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Amazon starts selling wine

2008-03-31T09:41:00.000+02:00

Amazon.com, the world’s largest internet shopping site, will start selling wine. They are in the process of recruiting a buyer to be responsible for the sector, according to a report in the Financial Times. Amazon is best know for it’s book selection but sells a very wide range of products in the US. Wine shopping sites in the US have had a very difficult time to get off the ground, largely due to the sever restrictions that exist on selling wine on the internet and on selling and transporting wine from one state to another. Read more: ft.com

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”Bordeaux 1er Cru” – what is it?

2008-03-28T09:15:00.000+01:00

Most wine lovers would probably not hesitate, with a longing in their eyes, to say that Bordeaux Premier Cru refers to the top five chateaux in the 1855 classification: Chx Margaux, Mouton, Haut-Brion, Latour and Lafite. But brace yourself for this… The producers syndicate for Bordeaux Supérieur has tabled a suggestion that the appellation “Bordeaux Supérieur” (one notch above “simple” AC Bordeaux) should change name to “Bordeaux 1er Cru”. Apparently due to an EU rule that will prohibit the use of “supérieur” on labels. What a splendid suggestion – create an appellation name that will totally confuse consumers. Let’s hope that it will face the same fate as “Chaume 1er Cru”, an appellation crated with the approval of the INAO in 2003, only to later be annulled by a court order as inappropriate and confusing. (We may add that as an alternative to “Premier Cru” the name “Grand Cru” has been suggested…! Perhaps they should be a bit more concerned with us consumers and with selling their wines rather than with silly word magic?) Yves-Damecourt.com and NewBordeaux

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Champagne Jacquesson changes hands?

2008-03-27T08:56:00.003+01:00

Jacquesson is a small, high-quality champagne house with a tradition of producing original and character-full champagnes from its 26 ha vineyards. The house is led by the Chiquet family headed by the jovial Jean-Hervé, responsible for external affairs, and his brother Laurent who is the wine maker. But the family only owns 51% of the house, the remaining 49% in the hands of the Scottish financier Michael Mackenzie. Rumour has it that Mackenzie is interested in selling his stake and that the Belgian magnate Albert Frère might be the buyer. Frère is already deeply involved in the higher echelons of wine, for example as co-owner, together with Bernard Arnault (LVMH) of Chateau Cheval-Blanc in Bordeaux. What the price might be we do not know but perhaps we could venture a guess of something in the order of €50 million… According to Weinwirtschaft.

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So, who’s the world’s biggest wine & spirits buyer?

2008-03-27T08:53:00.000+01:00

Well, many people think it is one of the big monopolies that still exist, for example Systembolaget in Sweden or the LCBO in Canada. But no. Biggest is actually Tesco, the UK retail chain. They sell alcohol products for €4.3 bn (£3bn). That almost twice as much as the LCBO (€2.5bn, C$3.7) and well over twice as much as Systembolaget in Sweden (€2bn, SEK19 bn). There’s an interesting interview with the world’s biggest wine buyer, Dan Jago at Tesco, in Wine Business International. (For those of you interested in the Scandinavian market we might also add that the Systembolaget does not buy from producers. They do not have an importer’s license in Sweden and are therefore not allowed to import. They must buy all wines and spirits from a licensed importer, of which there are several hundreds, but only a handful of any size and consequence. The biggest importer is of course V&S Vin & Sprit, just like Systembolaget currently owned by the government, albeit up for sale.)