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CHILE: VARIETALS: More is more

01 September 2008 By db staff writer

Why opt for just one flagship grape when you can have many? Ben Grant writes that Chile should celebrate its varietal diversity rather than trade on just one style

When anybody with even the remotest interest in wine thinks of New Zealand, Sauvignon Blanc immediately springs to mind. Likewise, California conjures up images of blush Zinfandel while Pinot Grigio is inextricably linked to its Italian homeland. When it comes to Chile, however, no single grape stands out as a flagship varietal for the category. Image is perhaps the greatest challenge that faces the Chilean trade – compared to rival wine producing nations the South American country is something of an enigma, an unknown quantity that has minimal meaning in the mind of the average person in the street. Clearly one of the top priorities for Chile is to create a “calling card”; a hook upon which it can hang the generic message. But does the answer to this conundrum lie in a varietal, could a flagship grape be used to anchor consumer understanding of the entire category?

Well, there’s a pretty simple answer to that question, and that answer is a resounding “no”. “Chile certainly won’t make its name with a varietal,” says Hatch Mansfield managing director Patrick McGrath, “it’s highly unlikely that a flagship grape will emerge, so Chile should focus on its variety.” The consensus of producers and suppliers backs up this standpoint – the most effective weapon in Chile’s arsenal is the amazing diversity that it can offer, so to assume a narrow focus would be entirely misguided. “The great thing about Chile is that it has such a long and varied geography and so many microclimates that many different grape varietals are suitable,” says Bottle Green commercial director Adam Marshall. “More and more people are experimenting, trying lots of different [plantings], this is a real benefit.”

This focus on variety and experimentation certainly meets with the approval of Wines of Chile director Michael Cox. The generic body is working feverishly to establish that all important hook upon which the category can promote itself – but a single dominant grape varietal certainly isn’t the answer. “It’s important for Chile to offer a diversity of grapes. It’s not a one-, two- or even three-trick pony. It can deliver across a broad variety of grapes and styles.” Rather than concentrating on a single speciality, he says, “we want to be known for a broad range … so people can lose themselves in a world of wine from Chile, like they do with France.” In fact, he argues, “New Zealand is a bit hamstrung by its reliance on Sauvignon Blanc.” McGrath agrees emphatically, pointing out: “Variety is a real strength, it shows off the variety of Chile and makes it a very exciting and interesting category to explore. Too much emphasis on one grape can be a problematic position.”

So clearly the country’s future lies in offering a broad spectrum of grapes – but should Chile be following the lead of its competitor countries, tracking the trends and focusing its attention on the blockbuster varietals that are currently en vogue in the global marketplace?

If you’d asked this question five years ago, the nervous, timid category would most likely have advocated trying to ape whatever strategy had been proven elsewhere. But the Chilean trade today is a very different beast, bristling with self-confidence. “We should be proud of our land and must develop our own character,” says Luis Felipe Edwards, owner of the winery that takes his name. “We must express the character of our terroir, not copy other countries.” Aside from this richly justified national self-determination, there are also some pretty compelling reasons why the category would be well advised to stick to its guns and focus on what it does best. “All countries should be wary of wide plantings simply due to ever-changing fashions,” says Ehrmanns buying manager Joy Edmondson. If there’s one thing you can guarantee when it comes to trends, it’s that whatever’s hot today will surely fall by the wayside before too long.

Some importers, however, believe that Chile has much to gain from learning from the examples of rival nations. But they urge caution and warn that following the fashion is by no means a guarantee of success. Chile should be planting the grapes that are scoring success globally, says Viña Ventisquero export manager Américo Hernández, “but we have to be careful that the quality of these grapes will match – or even improve – what is currently on the market.” Marshall also advocates following the fashions, but warns that success is by no means guaranteed, even if the quality is there. “Just because a grape is popular from elsewhere it doesn’t mean that it will automatically work for Chile.”

AROMATIC DRAMATICS

The enormous diversity of Chile’s geography and climate means that almost any varietal can be grown somewhere. Of course, most of the vineyards will be planted with internationally popular, commercially dominant varietals, but Chile is wisely also making room for rather more niche, esoteric grapes. Riesling, Gewurtztraminer, and Viognier will never be the category’s bread and butter, but by producing good quality, expressive wines, the grapes enable Chile to demonstrate both its viticultural diversity and its vinicultural prowess.

“Aromatics will always be a small volume, but they’re an opportunity for Chile to make a name for itself,” says Wines of Chile’s Cox. In particular the cooler valleys of Bío Bío and Casablanca are yielding wines that display more fresh New World characteristics than those from the traditional Alsatian heartland. Hatch Mansfield’s Patrick McGrath confidently predicts that “the aromatics will certainly come through in time”. Cox, meanwhile, believes that there is potential for success in Gewurtztraminer because, after all, “not many countries can make it”, and Reisling because “it works well and there will always be fanatics out there”.

“It’s unlikely that a single flagship grape will emerge,” says McGrath, “so Chile should focus on its rich variety.” With a generic portfolio that takes in rich, fruity reds through to fresh, aromatic whites – not to mention pretty much everything in between – the category is clearly already moving in
this direction.

Carm before the storm
While Chile can lay claim to excellent wines from a number of different grapes, surely the first port of call in a round up of varietals must surely begin with Carménère. While not strictly an indigenous varietal, Chile has undoubtedly been the country that has scored the biggest success with a grape that Cox describes as Chile’s “prodigal son”. “In a very competitive environment it’s important to have a USP,” says Ehrmann’s Edmondson, and that is exactly the role that the grape fulfils for the category. “Carménère is very important to Chile,” Edwards agrees, “we must focus on it because it is a point of difference.”

Admittedly, the share of total volume remains relatively small, but to obsess over this market share is to miss the point. It “will always be a niche,” McGrath concedes, “it will never be mainstream, but it has a valuable role to play in terms of adding variety” to the wider category. We should also acknowledge the valuable role that it plays in Chile’s blended wines.

The potential of the varietal is limited purely by the lack of consumer understanding. Notably, a number of producers state that when consumers are given the opportunity to taste it, feedback is overwhelmingly positive. So with a concerted education campaign to raise awareness there’s no reason why sales can’t be significantly higher. Edmondson, who states that “Carménère will be crucial to Chile’s success”, points out that the Los Robles brand has scored major success with the varietal. Marshall, meanwhile, argues that if the grape is pushed hard it could yet be ripe for major growth. “It depends on a bit of luck. Pinot Grigio wasn’t the bulk of Italy until recently, until there was a sudden buzz” around the grape. Based on this logic, he argues that, “if the education is right there’s no reason why Carménère couldn’t be the bulk of Chile’s sales in 20 years time.” It’s an ambitious – perhaps even far-fetched – concept, but there’s little doubt that the quality is there.

Stay cool
The diversity of Chile’s geography makes it fertile ground for a wide range of plantings, but if there is one varietal that has captured the imagination of the producers then it must surely be Sauvignon Blanc. Having witnessed the fantastic value that Kiwi growers can demand for their wines it’s hardly surprising that other countries want a piece of the action, and as Hernández points out, Chile is very lucky, because “we have all the right conditions to produce these grapes.” The unique geography of this peculiarly shaped nation – 4,700km from tip to toe, and less than 100km wide at points – means that it is, as McGrath puts it, “blessed” with an extraordinarily long coast. Combine this with deep valleys throughout the interior, and you’ve got perfect territory for fabulous cool climate wines.

Chile has been producing perfectly acceptable low priced Sauvignon Blanc for some years now, but Cox is particularly enthusiastic (even by his own inimitable standards) when he points out that “the producers are understanding the grape much better now”. The country produces characteristically New World expressions of the grape, fresh, zingy and distinctively Chilean – and it manages it as a fraction of the price of New Zealand. The category “offers incredible value for money at the £5 price point,” says Edmondson, but Cox counters this by asserting that “it can offer really good quality and value at every price point.” It’s undoubtedly true that Chile is making a name for itself with Sauvignon at the £6-mark and below, but there’s also increasing levels of production at a more premium price bracket.

Kiwi growers should therefore be looking over their shoulders with some trepidation – and their Antipodean neighbours should also be worried that Chile could soon be treading on their toes, for the South American nation is also making steady progress with its Shiraz. Here, again, however, the category is not simply copying success; it is developing its own distinctive style. “It’s slightly different to Australian,” says McGrath, “not quite as rich, but good quality, well balanced and consistent.” However, it represents an excellent stepping stone for drinkers weaned on Aussie Shiraz to make the transition over to Chile. Cox points out that the country “is developing a style that is more Rhône than Barossa”, so he believes that the category must instead use the Syrah nametag. Either way, he emphasises that – along with Pinot Noir – “it’s one of the two grapes that’s really getting the winemakers excited.”

Hernández is highly enthusiastic about the potential of Pinot: “It’s had a lot of success in the last two years. [Chilean Pinot] is not duplicating the Old World style, it has lots of fruit concentration. Combined with the fantastic value that we are giving, it’s helping to break the paradigm of this French grape.” Cabernet Sauvignon probably stands out as the final arrow in Chile’s quiver.

When it comes to defining Chile, a single dominant varietal is clearly not the answer. Perhaps, as we’ve written in db in the past, Chile’s rich, unspoiled nature makes its environmental credentials the hook upon which the category should hang its message. When it comes to plantings, however, the land is so diverse that it must not restrict itself, but should cast the net as wide as possible. An armoury of about five grapes will continue to dominate the charts, but successfully experimenting with others will enable the country to demonstrate that it’s a serious contender at the premium end of the scale. However, the key to success will be to learn from other categories, but to apply this learning with a distinctly Chilean twist. As Luis Felipe Edwards quite rightly says, “Chile must not just follow the rest, Chile doesn’t need to copy nobody.”

>FIRM FAVOURITES OR YESTERDAY’S NEWS?

Reading through some corners of the trade press you could easily assume that Chardonnay and Merlot are in big trouble. They have, apparently, gone out of fashion, which sounds like pretty bad news if they represent a vast swathe of a country’s plantings. But is the prognosis really so bleak?

“Although falling out of fashion, these grapes cannot be dismissed,” says Ehrmanns’ Joy Edmondson. The reason, she explains, is that they command such an enormous market share. But while she seems to agree with the sentiment that the two grapes are history, the statistics point to the contrary. According to Nielsen, Chardonnay remains – by some margin – the most popular white grape in the world, while Merlot is the second biggest red. Both may have seen growth stagnate in the last year, or even gone into slight decline, but they still command mammoth volumes. Ignore them at your peril.

“I question whether they’re actually falling out of fashion,” argues Bottle Green’s Adam Marshall. “Perhaps they’re falling out of fashion in the trade, but certainly not in terms of what consumers are buying.” Cox agrees with this sentiment, arguing, “it’s become fashionable to say they are going out of fashion, but statistically it’s not true. The consumer still loves Chardonnay.” It appears to be another example of the trade forming its own opinion with little regard for what consumers are thinking – for comparison, consider the way that vodka – derided as “boring” by so many in the industry – continues to dominate the sales charts with little sign of decline.

The key to continued success with these two grapes is to adapt the style to ensure that it stays in line with consumer tastes. “It’s important to evolve the wine style,” says Edmondson. Most importantly, Chardonnay producers must shift from heavy, wooded flavours to fresher, fruitier expressions. As Wines of Chile’s Cox so delicately puts it, “oak is history”. As well as evolving the style, Edwards argues that at a time of increasing pressure on the grapes it’s also important to ensure that the quality is second to none. “These grapes are still very important in terms of volume sales. So even if the market is against them, it’s even more important to improve the quality.”

It’s impossible to predict what grapes will dominate the charts deep into the future – but Marshall confidently predicts that Chardonnay and Merlot “will definitely stay near the top for the next few years. I certainly can’t see them falling off a cliff tomorrow.” It’s true that many in the trade have become a bit bored of their dominance – but this opinion certainly hasn’t filtered down to consumers.