Jancis Robinson Escribe sobre el vino de Chile y Argentina

This article is also available in English.

Una periodista de vino en Inglaterra escribió un artículo excepcional sobre la industria vitivinícola en la Argentina en la edición de hoy en el San Francisco Chronicle. Además, ella tiene una guia sofisticada sobre la cosecha de 2007 en su sitio del web.

Articulo: “Argentina's and Chile's wines are earning global kudos and fans.” Por Jancis Robinson. San Francisco Chronicle. 3 de agosto, 2007.

Sitio del Web: “Argentina: A Bluffer’s Guide.” Por Tim Johns de Wine of Argentina y publicado por Jancis Robinson.

Jancis Robinson on Argentine Wine

U.K. based wine writer Jancis Robinson has an exceptional article on the Argentine and Chilean wine industries in today’s San Francisco Chronicle. In addition, she has an in-depth guide to the 2007 vintage on her website.

Article: “Argentina's and Chile's wines are earning global kudos and fans.” By Jancis Robinson. San Francisco Chronicle. August 3, 2007.

Website: “Argentina: A Bluffer’s Guide.” By Tim Johns of Wine of Argentina and published by Jancis Robinson.

Kirchner Succeeds in Mexico

Esta entrada escrita en castellano viene próximamente.

So Argentine President Nestor Kirchner’s visit to Mexico earlier this week to fortify economic ties has produced at least one key agreement. Mexico will lower wine tariffs and in turn will receive “scientific and technological assistance” from Argentine enologists. Although I’ve written at length about the rapid increase in the consumption of Argentine wine in the U.S. over the past couple of months, “vino argentino” has also made a lot of progress throughout the Americas.

As reported in the Mendoza-based newspaper Los Andes (and later posted on the “El Malbec” blog), Argentina is now the leading wine exporter to Brazil. Having recently overcome competitors in Europe and Chile, Argentina and Brazil are working hand-in-hand to promote wine consumption in the country of 150 million people. Brazil’s current wine consumption is an extremely low 1.8 liters per person each year. Similar to the 2003 PEVI Law passed in Argentina intended to increase wine exports and reinvigorate the industry after having suffered setbacks for decades, Brazil is looking for a federally funded program to further develop their own budding wine industry as well as grow the domestic consumption rate.

As Juan Carlos Pina, the director of Wine Cellars of Argentina and one of the members of a recent Argentine delegation sent to Brazil said, “We are working together [with the Brazilians]. If we can increase consumption to one liter more per capita annually in Brazil, Argentina will also benefit.”

Source: "Argentina ya es el primer exportador de vinos a Brasil." June 28, 2007. Los Andes. By Luis Fermosel.

The Argentina and Chile Comparison Reaches The Economist / El Economist compara la Argentina y Chile

I wish I had some time to respond to this Economist article on Argentine wine. It makes some good points (like Argentina's inherent marketing power over Chile) but also makes a lot of bad ones as well.

Me encantaría responder a este artículo del Economist sobre la industria vitivinícola argentina en comparación a la de Chile pero no tengo bastante tiempo. Tiene razón sobre algunos puntos (como el poder de marketing de la Argentina) pero se equivoca mucho.

"Vino's Twin Peaks: Wine in Argentina and Chile." The Economist. March 15, 2007.

I'm Alive / Estoy vivo

First off, sorry for the long delay. Midterms and lacrosse season don’t exactly equate to a lot of time to write a blog. So while I’ve been gone Mendoza has been busy with Vendimia and the wine bloggers have been talking about other things, like Michel Rolland telling everyone that Argentine wine was superior than Chilean wine (it was also covered by my fellow bloggers here and here). The only thing I have to say is that Rolland has an interest in Argentine wine in his Clos de los Siete vineyard. Below are some interesting news stories about Argentine wine that I didn’t have time to post. Oh, and who could forget to link to the Vendimia beauty queen from the city of Mendoza (who cares if she didn’t win the overall prize for the province?).

Primero, pido muchas disculpas por la demora de los posts. Los exámenes parciales y la temporada de lacrosse no me dejaron mucho tiempo para escribir. Mientras que estaba ausento la industria vitivinícola en la Argentina estuvo muy ocupado con Vendimia y otros temas como el comentario de Michel Rolland sobre la superioridad del vino argentina en contraste al vino chileno (los blogs escribieron sobre la situación acá y acá). La única cosa que voy a decir sobre su comentario es que Rolland tiene un interés en el éxito del vino argentino porque tiene una bodega, Clos de los Siete en Mendoza. Abajo hay algunos artículos publicados en la prensa internacional sobre el vino argentino. Y quien puede olvidar de la reina de belleza de la ciudad de Mendoza (¿Quién le importa que no ganó el Reina Nacional de la Vendimia?).

Links to stories:
"Argentine domestic consumption increased, barely." By Vinos de Argentina.

Vendimia Vendimia Vendimia!
Vines of Mendoza Coverage.
"Argentina boasts a plethora of grapes." By Laurie Daniel. March 7, 2007. The Tribune (San Luis Obispo, CA).

Old World Consumer, New World Producer / Un pais del consumo del viejo mundo y productor del Nuevo mundo

Argentina is a funny wine country. While it often grouped into the New World producers – the United States, Chile, Australia, New Zealand, and South Africa – its consumption patterns look very much like that of an Old World country – Italy, France, or Spain. In this paper (PDF) from researchers at the University of California Davis Viticulture and Enology Department in Nature, tells an interesting story of increasing consumption in the New World while per capita consumption declines in the Old World. The paper says New World wine drinkers tend to drink more high quality wine in lower quantities, while Old World wine drinkers drink cheaper wine at higher quantities. This has certainly been the case in Argentina, even though the consumption of table wine has sharply declined during the past twenty years due to the popularity of beer and soda.

Nevertheless, Old World/Argentine wine drinkers certainly consumer a LOT more wine than the U.S., per capita.

Graph: Linda, Bisson, et all. “The Present and future of the international wine industry.” Nature 418. August 8, 2002.

The University of California Davis Viticulture and Enology Department: http://wineserver.ucdavis.edu/

Argentina es un caso distinto en el mundo del vino. Es usual para ver la Argentina en el grupo de productores del nuevo mundo – los EE.UU., Chile, Australia, Nueva Zelandia, y Sur Africa – pero sus ritmos de consumo parecen mucho más como los de un país del viejo mundo – Italia, Francia y Espana. En este articulo (PDF) en la revista Nature, los investigadores de la facultad de Viticultura y Enología de la Universidad de California Davis nos cuentan del consumo que aumenta en el nuevo mundo mientras que el consumo per capita declina en el viejo mundo. Continúa diciendo que los consumidores del nuevo mundo tienden a tomar vino de una calidad más alta en cantidades menores, mientras que los consumidores del viejo mundo toman vino más barato en cantidades más grandes. Este es el caso en la Argentina, aunque el consumo del vino de la mesa ha declinado drásticamente durante los 20 años pasados debido a la popularidad de la cerveza y la gaseosa.

No obstante, consumidores del viejo mundo y la Argentina toman MUCHO más vino que los EE.UU, per capita.

Gráfica: Linda, Bisson, et all. “The Present and future of the international wine industry.” Nature 418. 8 de agosto, 2002.

La facultad de Viticultura y Enología de la Universidad de California Davis: http://wineserver.ucdavis.edu/

More pub / Más “pub”

There’s a nice little article from Pueblo, Colorado’s “The Pueblo Chieftain” on the wine industry in Mendoza. The journalist features Gabriela Furlotti of Finca Adalgia. The article goes on to describe that the “contratistas” are being, “priced out of the market.” From personal anecdotal experience I’ve seen a lot of big multinational development, but on the same hand there’s been a growth of boutique wineries too. I always got the feeling that winemakers in Mendoza feel that the more the merrier and that the smaller wineries have to find their niche. Also, Wines of Argentina promotes the wine industry of the entire country to Europe and the U.S., benefiting everyone, not just the big players in the market.

Oh, and one more thing. The journalist takes an easy shot at Argentina with this line:
“It was [on the two-lane highway through the Andes] where we began to fully appreciate the money the Chilean government puts into its road system. That fact was evident halfway through the tunnel, which was well-lit until we reached the border. Then it went nearly pitch black.
Welcome to Argentina.”
Did the Chileans feed you that line or something?
“A Taste of Argentina” by Charles Ashby. The Pueblo Chieftain. January 21, 2007.

Hoy publicó un artículo bueno del periódico de Pueblo, Colorado sobre la industria vitivinícola en Mendoza. El periodista escribe sobre Gabriela Furlotti de Finca Adalgia. El articulo describe la situación de las contratistas como “marginados en el mercado” debido a la competición creciente de bodegas mejores financiados. Desde la punta de vista de mi experiencia anecdotal, he visto mucho desarrollo multinacional en Mendoza, pero al mismo tiempo hay mucho crecimiento de bodegas boutique. Siempre me sentía que los vinicultores mendocinos creían que más bodegas fue una cosa buena para la región y las bodegas chicas tenía que encontrar su hueco en el mercado. También, Bodegas de Argentina promueve la industria vitivinícola de todo el país a Europa y los EE.UU., un hecho que beneficia a todos, no sólo los jugadores grandes en el mercado.

Una cosa más. (En ingles)
“It was [on the two-lane highway through the Andes] where we began to fully appreciate the money the Chilean government puts into its road system. That fact was evident halfway through the tunnel, which was well-lit until we reached the border. Then it went nearly pitch black.
Welcome to Argentina.”
¿Cuanto pagaron los chilenos para escribir esa línea? ¿Vos fuiste un espía chilena en Mendoza? (Para los lectores que no pueden leer ingles, el periodista dice que supo cuando pasó a la frontera argentina en el túnel en los Andes desde Chile porque de repente no hubo luz)
“A Taste of Argentina” by Charles Ashby. The Pueblo Chieftain. January 21, 2007.

Origins of the Wine Industry

During the mid-1800s the majority of agricultural land was used for alfalfa, which fattened the cattle passing through from the provinces of Cordoba and Santa Fe en route to Chile. Yet, by the mid 1880s Mendoza found itself in the midst of an economic transformation due to the arrival of the railroad, rising agricultural production, and a steady influx of European immigrants (Scobie, p. 132). Winemaking technology was improving to extent that the same amount of acreage that produced 46 kg of wine in 1870 yielded 250 kg at the end of 1880. The acreage in vines also increased six fold between 1893 and 1913 and by World War I, vine acreage exceeded that of Chile and California (Sawer, p. 82). The improvement in technology and increase in overall acreage was able to meet a surging demand for wine from the growing immigrant population in the pampas region.

Government intervention in the wine industry virtually began at its inception. As a general rule, agricultural-based sectors were heavily influenced during the latter part of the nineteenth century, as the government pursued a liberal, export-oriented economy. The wine industry in Mendoza and the sugar industry in Tucumán seemed to parallel one another in their rapid growth at the end of the 19th century. Both involved heavy state intervention which led to multiple overproduction crises during the 20th century (Balan and Lopez, p. 392).
In Mendoza’s case, the national government built the Andes Railroad in 1885, connecting Villa Mercedes (San Luis), Mendoza and San Juan with Buenos Aires, coastal markets, and the northern part of the country. In addition to infrastructure, provincial laws in 1889, 1895, and 1902 exempted all grape production from taxes for the first five years of production. The province understood that the demand for wine would one day yield high tax gains, and indeed, in 1907 over 60% of provincial revenue originated in the wine sector (Richard-Jorba, p. 119).

On top of favorable subsidies, the federal government offered generous protection to the wine sector by imposing high import tariffs. Transport by ship from Europe to Buenos Aires was still cheaper than railroad transport from Mendoza, so the young wine industry sought protection from the well established industries in Europe (Sawer, p. 82). By 1914, the wine tariff had reached 80%. The federal government even erected barriers to trade ensuring no foreign wine could enter Argentina. Specifically, no wine could be imported from countries in which sugar was added to grape juice to increase the alcoholic content of the wine, even if the particular wine that was sent to Argentina didn’t use this technique. Since this method was used in at the least one instance in every wine producing country, foreign wine was effectively prohibited from entering the market (Sawer, p. 83).

After thirty years of remarkable growth, the national government created the Junta Reguladora de Viños (Wine Regulating Committee) in 1935 which would later become the Instituto Nacional de Vitivinicultura (INV) in 1959 (Footnote: The government did the same with the sugar and yerba mate industries). The state attempted to deal with overproduction, especially during the Great Depression when wine consumption fell dramatically. The INV regulated when and how much the growers could plant, when the harvest was to occur and how much the grapes would sell for. On the production side, INV monitored quality and encouraged diversification. The state’s role in the wine industry in Mendoza would undergo dramatic changes in the 1980s in the midst of an oversupply crisis.

Introduction

In 1835, Charles Darwin laid eyes upon the spectacular Andes Mountains that lay before him. At the foot of the jagged, snow-capped ridges lay a small town called Mendoza. To many travelers, Mendoza looked like a paradise after the rugged two-week trek across the pampas from the European metropolis of Buenos Aires. But experienced explorer Darwin thought otherwise, “To my mind the town has a stupid, forlorn aspect to it…but, to those who, coming from Buenos Ayres, have just crossed the unvaried pampas, the gardens and orchards must appear delightful.”

The canals and the contrast in flora are some of the only aspects that remain in present-day Mendoza. Twenty-first century Mendoza is home to a multi-billion dollar wine industry that is world renowned for its Malbec red wine. Geographically, Mendoza is located in the western region of Cuyo, bordered by the Andes Mountains and Chile in the west. It is known for its dry, hot summers and mild, yet humid winters. For centuries, the natives to Mendoza have utilized the rainwater that flows off the Andes Mountains each spring for hydroelectric power and irrigation.

With an emphasis on the past 15 years, this paper will explore the evolution of the wine industry since its initial growth in 1880. Although special attention will be paid to the impact of government institutions in the province of Mendoza, economic and historical factors will be explored as well.