For a better understanding of their philosophy, WineSur talked with some of the people in charge of this kind of companies in Argentina.

Rocío Blanco, from “Familia Blanco”, explained that the company’s main objective for this year is open the own winery which is under construction in Agrelo.

Different is the reality of Furlotti winery, which has already an own winery, but aims at establishing in the market. After five years of activity, Gabriel Furlotti underlined that the priority is to boost sales in order to keep the account balanced. “Our brand is already well known, but we need to reach a production of 200,000 liters or more to make the business profitable,” explained the president of the company.

Moreover, Furlotti meets Fair Trade standards and will work, during 2012, on strengthen this positive aspect.

For its parts, Finca 8, owned by Hernán Fragueiro Frías, is aimed at increasing its annual production from 20,000 to 100,000 liters over the coming harvests.

Opening up of markets

The uncertainty arisen from the international crisis does not seem to be an obstacle for Argentina’s boutique wineries.  The person in charge of “Familia Blanco” commented that the winery attempts to consolidate existing business relationships, increasing volumes in markets such as Brazil, Germany, and United States and in three new markets: Australia, Peru and China.

Likewise, Hernán Fragueiro Frías pointed out: “For this year, we want to go on opening up markets. Currently, our wines are found in United States, Canada, and Brazil, but we are negotiating new deals with Mexico and United States. We also want to expand to Europe, but we have not managed to make business there up to now.  Generally, those markets are complicated to introduce high-end wines within high price range as ours,” he added.

For the time being, Furlotti bends all its efforts to market its products in Switzerland, but it seeks unceasingly its place in Canada and Scandinavian countries.

“We have also focused our activities on the US market but it demanded us Entry level wines and our products are placed within a higher price range,” added Gabriela Furlotti.

In this opportunity, the twelve top winemakers assessing the participating wine samples are: Michael Silacci (United States), Joey Tensley (United States), Gilles Paquet (France), Marlene Soria (France), Alastair Maling (New Zealand), Barbara Tamburini (Italy), Graziana Grassini (Italy), Vittorio Fiore (Italy), Anthony Hamilton Russell (South Africa), Andrea Mullinex (South Africa), Marcelo Retamal (Chile) and Robert Pepi (United States).

Malbec, the star grape

One of the famous personalities is Michael Silaccil, Opus One’s winemaker, one of the top wines in the United States. According to what he said, Malbec is not an unknown variety for him, as this grape was used to make the Opus One in 1994. For that reason, WineSur asked him if he agreed with the vision that Malbec has found its better terroir in Argentina, to which he answered: “Yes, I highly respect and appreciate Malbec made in Argentina.”

On the other hand, winemaker Barbara Tamburini highlighted: “Certainly, one of the most known and important wines in the oenological production from Argentina is Malbec. In my opinion, it means that there are no reasons to modify this address.”

However, she pointed out that “Torrontés is a grape variety that has a very good possibility to produce very fresh and fruity white wines. Therefore, it can have success in many international markets.”

In addition, Italian winemaker Graziana Grassini, specialist in Syrah and who owns a laboratory of Agricultural and Environmental Analysis, commented: “Malbec has found its natural habitat in many regions in Argentina, so winemakers manage to express its best organoleptic features. In terms of winemaking, Malbec from Argentina is better developed than the one yielded in Italy. It is difficult to determine exactly what characteristics suit it better, because I have never made wine in Argentina, just in Italy.”

For his part, Italian winemaker Vittorio Fiore explained: “I believe it is a wine with great quality potential, capable of gaining a prominent position in the international winemaking”. Likewise, he said that Argentine wines match up to Italian consumers’ palates. “Their taste has significantly evolved in recent decades, and they are also interested in proposals coming from different wine growing areas of the world.”

Finally, he added: “Since few years, white wine consumption has undergone a significant development. Specifically, consumers prefer fresh and fruity white wines rather than those made in barrels. Therefore, surely Argentine Torrontés can be successful in the International market.”

This way, the entity is created as the first wine consortium in Argentina. In conjunction with “Fundación Exportar”, Salta’s wineries want to foster the best exploitation of resources, homogeneity of products from a region like Cafayate and the good predisposition of those taking part in it.

Mariano Crescio, who was appointed as general coordinator of the consortium, maintained he is proud of having been considered to perform this task. “It is a great responsibility to coordinate the sales of the first wine consortium in Salta. It is a special opportunity and I’m going to seize it,” he highlighted.

In relation with the association’s goals, Crescio explained that it will firstly aim to promote Salta’s wines throughout Latin America and then to capture the Asian market.

With this purpose, different activities have been considered. “We have to organize and plan the task to be undertaken, taking into account the characteristics of each winery. The consortium’s spirit is moved by common benefits, a fundamental idea to grow,” pointed out the coordinator.

Afterwards, the actions to be developed are the participation in the Expovinis, Brazil and arrangements of business meetings to expand across Latin America.

According to the association, the creation of this consortium will help to endorse small-sized wineries which otherwise, would find it harder to promote themselves abroad. Moreover, we will try to make all Cafayate’s wineries known. “They are high-altitude wines (1,700 meters above sea level) enjoying a matchless geography and climate. We want to position the Argentine wine into the most demanding markets,” commented Mariano Crescio. The call for participation in the consortium was based on the fact that there was already a group of wineries in Salta working together, but without the legal form of a consortium. “It was a pleasure to see the good predisposition of those members that joined afterwards in this project”, he concluded.

On the other hand, the most famous producer in the Rhone region (France), Michel Chapoutier denounced natural winemakers –those against the practice of using sulphur dioxide to stabilize the wines– as “hippies making defective wines”

Smart against the biodynamics

In November, Decanter magazine published Smart’s statement that read: “organic and biodynamic winemaking lobby uses emotional black magic to get its message across.”

Smart argued that organic and biodynamic producers “considerably overstate the benefits of their approach to wine quality, consumers’ health and the environment.”

In the opposing corner, Waldin believes that the ‘tastiest, healthiest grapes’ are produced when Nature is ‘stewarded not enslaved’.

Both men are highly-qualified: Waldin has worked as a winemaker and published numerous books on biodynamic farming, including the Biodynamic Wine Guide 2011. On the other hand, Smart is a PhD who has written more than 350 articles on wine and was included in Decanter’s 2005 Power List.

Chapoutier pours scorn on natural winemakers

The famous Crozes Hermitage producer, who also makes wine in Australia, Portugal and Alsace, defends organic and biodynamic techniques, instead of those practices considered “natural”. English journalist Adam Lechmere, in an article published by Decanter, said that Chapoutier has added fuel to the fire of the debate by denouncing natural winemakers as “hippies from another world, who make defective wines.”

Interviewed in the January issue of Decanter, Chapoutier told John Livingstone-Learmonth that the practice of natural winemaking – that is, using no sulphur dioxide to stabilize the wines – is a con.

“It is rubbish. It’s like making vinegar, bad vinegar. How can anyone allow toxic yeasts to develop so that these inhabit the wine?,” he asked himself.

“It is extraordinary that people defend products with defects on the grounds that in the past, growers were making wines with defects. Those old wines had defects because people lacked the tools and means not to make fault-free wines, “he explained.

“No winemaker”, he argued, “should fold their arms and stare righteously at the ceiling while their wines turn malodorous through neglect.”

In another article in a previous Decanter issue, Isabelle Legeron Master of Wine, an ‘evangelist’ for natural wines and founder of the Natural Wine Fair, has pointed out how ‘bizarre’ it is that we question natural credentials of our food, but we are happy to drink wine that is effectively processed.

Martín Ramos, CEO of Grupo Penaflor remarked: “We have developed a strong relationship with The Wine Group over the last few years. When we reviewed the strength of The Wine Group, we agreed that they were the best candidate to manage our Trapiche portfolio of brands in this strategically important wine market.”

“This alliance brings together two fantastic cultures,” said Ken Lizar, President at TWG Velocity Brands. “When you look at the wine industry’s most exciting Argentine brands, you must include Trapiche. Wines from Argentina are growing at a rate that far outpaces total industry growth and Trapiche will be the ‘center post’ of our efforts to gain category leadership.”

In the Uco Valley is where the new developments were concentrated in the few past years. Burco America (Tupungato Winelands) is the largest one, boasting 800 hectares, of which 400 correspond to 150 parcels divided in 2,5-4,5 hectares each. Moreover, it has 140-half-hectare plots on golf courses, intended for building houses, at an average price of USD 150,000. Estates are priced from an average of USD 400,000.

Another newly developed project in Tupungato is Casa Palmero (only involves vineyards). It is adjacent to Salentein winery, having 35-year-old vineyards planted with Malbec, Cabernet Sauvignon, Merlot and Chardonnay, which belonged to Palmero family. This year, investors can make their own wines. The winery is under construction. Sothebys Realty firm is in charge of selling the plots of which 7 have already been sold. The average price per hectare amounts to USD 180,000.

The good news is that, in spite of the crisis, for someone investing USD 100 per hectare, owning a plot in a wine villa is profitable. This is the vision of the Italian businessman and owner of Villa Dolce Vita, Filippo Invernizzi: “The owner of the property stays here only 3 months and during the rest of the year, he or she lets out the house of 200 – 400 m² (2152 – 4300 ft²) with all amenities (very well-paid), which is also supported by the grape sale.”

This project is extended on 75 hectares in the west of Tunuyán city -between Vistaflores and Los Sauces. In this land, there are 17 plots of high-end vineyards, which are sold at the average price of USD 100,000 per hectare.

On the other hand, Pablo Giménez Riili, together with Michael Evans and David Garrett, is owner and founding partner of The Vines Private Estate Vineyards, located in the Uco Valley, another wine villa and pioneer in Mendoza. The land value in this project went from USD 135 to 180 thousand in four years, and 97 out of 100 Private Vineyard Estates have already been sold. “Today, we are in an expansion stage, and we have already acquired over than 40 more hectares,” explained the businessman. “Beyond the crisis, there is a market targeted at luxury products. The economic situation has had a minimal impact on “The Vines”. In these times, when people analyze thoroughly their expenses, providing a high-quality service is crucial to have success. Moreover, our country has a great potential for investing in it,” he added.

Famous in the American market for its renowned proprietor and owner of Pepsico Snacks and Frito Lay corporations, Warren Ward Lay, who has recently passed away, Andeluna exports 85% of its total production to the United States, whereas only 15% is sold in the domestic market. The winery’s lines are: Andeluna Grand Reserve, the top wine; Reserve; and the varietal line. Throughout the year, it welcomes 5,000 visitors, attracted by its gastronomic offer, landscape and wines. Headed by Manuel González, as new winemaking manager, the winery is going to present a revamp in its wine portfolio, stressing always its forte: Malbec, Cabernet Sauvignon and Cabernet Franc.

“Both the winery and Alicurá estate (an 80,000-hectare game preserve in Patagonia), entrepreneur’s private businesses in Argentina, were taken over by the family. His heirs are his children, two of which are still under age. Today, the board consists of the only son of legal age, an accountant, the general manager of Andeluna and Alicurá estate in Argentina -who is from Buenos Aires but lives in Bariloche-, and two executors that are lawyers from United States and who are in charge of the inheritance proceedings,” commented Manuel Gonzalez.

“The offer came from Silvio Alberto, former winemaker of the company. It was so difficult to decide the change because I felt easy in Pulenta Estate winery. However, what encouraged me was my interest of working in this region and being responsible for the agricultural matter, the estate, meaning a new challenge for me,” he added.

In relation to how they managed to make wines within the USD 10 price range, Gonzalez highlighted, “we ask ourselves this question, because today this segment is not profitable at all. It is our most complicated range but at the same time, it is the most productive one. We have to buy grape and it turns to be difficult because all supplies are so expensive. Moreover, sanitary barrier worsens the situation because we cannot buy grapes in other regions. In the foreign market, it is so hard to market within the USD 10 price range, in general for all wineries.

The USD 20 wine line, our Andeluna Reserva, is our hottest wine and on which we are focused today,” concluded Andeluna Cellars’ chief winemaker.

- What is your opinion about Argentine Malbec from the winemaking point of view?
Malbec has found its natural habitat in many regions in Argentina, so winemakers manage to express their best organoleptic features. In terms of winemaking, Malbec from Argentina is better developed than the one yielded in Italy. It is difficult to determine exactly what characteristics suit it better, because I have never made wine in Argentina.

- Do you think that Argentine wines fit into Italian consumers’ taste?
Yes, I think so. Besides, Italian consumers prefer wines that display their terroir’s quality and native vines.

- What is Italian consumers’ perception on Argentine wines?
Argentine wines are not easily found in Italy. However, the few available ones are highly appreciated in Italy.

- In your opinion, what is the comparison between both Italian and Argentine Syrah?
Syrah vine from Italy is particularly influenced by the region where it grows and consumers love it because of its spicy aromas redolent of black pepper, cocoa and licorice. While, in the case of Syrah from Argentina, according to what I have tasted, floral aromas stand out. Undoubtedly, this is a characteristic appreciated by consumers, though it does not express all the potential of this grape variety.

-What are the medium-term goals for the Italian wine industry?
The aim is to continue making high-quality wines at competitive prices, taking into account consumers’ preferences.

Both NQN and Del Fin del Mundo are located in San Patricio del Chañar (Neuquén). NQN boasts 160-hectare vineyards, a winery with a capacity of 1.8 million liters, a newly opened inn, and 850 hectares intended for future plantations. The winery markets the following brands: Malma, Malma Reserva, Colección NQN, and Picada 15, among others.

On the other hand, Bodega Del Fin del Mundo started making wine in 2003, when it opened the winery’s building. Since then, it has steadily grown and it currently produces around 9 million liters of wines, being sold in the domestic market and exported to over 34 destinations.

Julio Viola, founder and partner of Bodega Del Fin del Mundo, highlighted: “by means of this acquisition, we want to strengthen our presence in the market as well as foster NQN’s brands both in domestic and foreign markets, consolidating ourselves as the emblematic Patagonia’s winery”.

Viola confirmed that there will be no “absorption” of companies; NQN will remain as “an independent business unit with its current staff and consultants. Of course, the idea is to strengthen it with our commercial structure and develop its brands that have an incredible potential.”

In addition, Matías Gainza Eurnekián, head of this project at Corporación América, maintained that this gamble on growth goes hand in hand with the firm’s strategy, which consisted of investing during 2011 in equipment and expanding the winery capacity by 1 million liters.”

- What is your perception on Argentine wine?

It is gaining momentum within the global market particularly in the US. There appears to be an excitement associated with drinking Argentine wines. The perception of the wines in general is that they are interesting, rich, and developing more complexity.

- How about Malbec and Torrontés?

Malbec is the leader of the pack for Argentina and the perception is that Malbec being relatively unique is a strong selling point and point of difference to other wine producing countries. Regarding Torrontés, I know this variety from time spent working in Argentina 10 years ago but to the majority of wine consumers in the world I doubt many would be able to explain what the variety tasted like or its style.

- What is your opinion about wine consumption in your market during and after the international crisis?

I live in New Zealand. Fortunately, the international crisis hasn’t had a dramatic impact on wine consumption. People are still drinking wine but what it has done is change the price point that consumers are now prepared to pay for a bottle of wine. The New Zealand wine consumer primarily drinks the wines from New Zealand and the amount of imported wine is very low.

- In this context, is it likely for Argentine wines to grow?

In the New Zealand market we only see a handful of Argentine wines, so in this context, I would say the crisis has had hardly any impact on any imported Argentine wines volumes.

– Is there a possibility to grow in terms of whites and rosés?

New Zealand has a reputation for fresh fruit driven white wines and is worldwide renowned for its Sauvignon Blanc and this is the most widely planted and consumed white wine in New Zealand. Rosé is primarily a summer drink for New Zealanders and the market share quite small. In this context, I think it would be a challenge for Argentina to launch white wines or Rosé into the New Zealand given the parochial support for the wines from New Zealand and that Argentina is perceived as a red wine producing country.

– What strategy should Argentine wines use to achieve a wider portion of the market?

A lot of good progress has been made in the last 10 years getting the word out to International markets about what Argentina can do and what Argentina does. This is particularly the case in the US and the UK, where I see regular wine columns dedicated to the Argentine industry and all are describing an industry that is gaining momentum, creating excitement and in some circles “the next hot wine region”.

On the back of Malbec, it allows the opportunity to showcase other exciting wines or blends to emerge. Examples might include Bonarda, Syrah or Bordeaux blends. In the last 10 years, in Argentina, there has been the evolution of a number of new wine sub regions particularly into the Andes. Wine consumers and retailers are often looking for something new so the opportunity arises to create a new perception and story that sparks further interest and exposure to the new regions but also Argentina as a whole.

- How are you preparing for the upcoming Argentina Wine Awards?

Well apart from trying to make sure everything is in place back in NZ before I leave as vintage is fast approaching I have been reading up on the Argentine wine industry to become familiar with what is currently topical. I had a previous wine judge Tim Atkin MW visit Villa Maria this week so I was able to ask him about the event and what to expect.