Archive for the 'wine politics' Category

John Kerry says cheers with Moldovan wine

kerry_moldovan_wineIt’s not every day you hear urging Americans to drink wine. But that’s what John Kerry did today during a brief stopover in Moldova.

The Secretary of State wasn’t modeling his actions on Thomas Jefferson. Instead, by visiting a winery and raising a glass of Moldovan red, he was trying to help the agrarian economy of the Europe’s poorest country, one glass at a time.

Wine plays a central part in foreign trade for the landlocked country sandwiched between Ukraine and Romania where the GDP per capita of just over $2,000. But the lion’s share of those exports have gone to Russia, which has blacklisted Moldovan wine in a trade dispute. So Kerry’s trying to create a new market for Moldovan wine and announced a trade mission that will bring Moldovan wine makers to the US to learn about the American wine market. Look out for a merry band of Moldovans at your local wine shop–it may be as riotous as the Borat wine tasting.

More: “Why John Kerry Wants You to Drink Moldovan Wine” [ABC News]
“Russian media deride Kerry visit to Moldova” [LA Times]

Schumer backs wine-by-mail, but not enough

Charles Schumer of New York wants the US Postal Service to be able to ship wine and beer. The number three democrat in the Senate made comments this week to roll back a ban on wine and beer shipping that dates to 1909. He calls it a “win win win,” since it would benefit producers (in NY and elsewhere), consumers and the USPS. Schumer argued that the USPS could gain $225 million in revenues from such shipping, largely because it could offer flat rate shipping at lower rates than FedEx and UPS.

Shipping wine by mail is long overdue. In fact, I suggested this for the USPS last year, but since Schumer’s words carry more weight in Washington, I’m glad he’s reached the same conclusion.

However, it doesn’t go far enough. According to The Leader, a paper in Corning, Schumer’s proposal would only permit shipping from wineries (or breweries) to consumers. It makes sense to only give businesses the right to ship since they could put in place the proper age verification mechanisms for recipients. But only allowing wineries makes the mistake of excluding retailers. While we will take what we can get, if Schumer really wants to make this a “win” for consumers and the USPS, his proposals should include the right for wine shops to ship via the mail too. Not only do wine shops offer imported wines, which account for a third of wine sales in the US (and more in NYC, I’d venture to say), but shops often have better pricing than wineries. This, of course, is why Schumer would not want to include retailers. Consumers would obviously rejoice but so would the USPS since their anticipated revenue from wine could swell to $350 million to reflect the share of imported wine in the marketplace.

A final point: if the USPS shipped wine, it would greatly highlight the 39 recalcitrant state governments that still prohibit retailers from out of state to ship. While Schumer is challenging outdated drinks shipping laws, why not put an end to that one too.

Sancerre to bid adieu to the AOC system?

sancerre_aoc

The growers in the Sancerre AOC are more pissed off than pipi du chat. According to Jim Budd, their hackles have been raised because the national appellation bureau is closing their Sancerre outpost and centralizing regional functions in Tours, about 120 miles away from Sancerre. Jim says the growers find the situation so frustrating that they have talked to intellectual property experts about withdrawing from the AOC framework and using Sancerre as a trademark.

For all (both?) of the wine law buffs among us, this would present a sticky situation. INAO, the regulatory authority, is zealous in defending their geographic indications against FOREIGN transgressions and imitators. But what if a bunch of growers effectively withdrew from the AOC system and wanted to take the name with them. Sancerre has huge name recognition so the stakes are high–it will be fascinating to watch how this plays out. Perhaps it is bargaining to get their local office back but the growers’ frustration may lie deeper than that.

It’s the latest evidence that the AOC system is broken.

TTB shutdown means wine label slowdown

ttb_shutdownThe federal government has shut down “nonessential” services as of today. Surprisingly, that means that the federal agency that regulates the wine industry is also largely shut down. This is surprising because the agency collected $26 billion in revenues for the government–you’d think they would want to keep that flowing.

I spoke with a staffer at the TTB a few weeks ago while I was writing a story about wine label art. In the course of our conversation, he told me that the agency has experienced a surge in requests for label approvals. When they were formed ten years ago, they received 89,000 requests for label approvals whereas today they get 152,000 label requests. A 40% growth in wineries and a 60% rise in brewers have driven the surge. (Meanwhile, because of budget cuts, their headcount has been reduced from 520 to 471 over the same period.) I also spoke with some vintners who complained that the label approval process had slowed this year in the wake of the sequester. And now with the shutdown it will have ground to a halt.

Whenever TTB officials return to work they will have a ton of wine labels awaiting their review. The whole situation is enough to drive one to drink…

Before the shutdown occurred, the TTB did take a preliminary step to approving 11 new AVAs within the existing Paso Robles AVA.

Terroir is a “right-wing idea”? Could have fooled me

terroir_right_wingStephen Erlanger, the Paris bureau chief of the NY Times, holds forth on the notion of terroir in the opinion page.

The concept is fascinating for its power to readjust markets along quality lines for products that might be prone to commoditization (hmm, I recall reading a brilliant book about this somewhere. . .). It’s clearly political since lines have to be drawn somewhere and those outside the zone might even stage bloody protests, as happened in Champagne 100 years ago, for example. The idea could be interpreted as conservative since it contributes to propping up a rural, yeoman sort of life.

But Erlanger overreaches when he writes that “The notion of terroir is essentially political, at heart a conservative, even right-wing idea.” There’s nothing right-wing about it: I haven’t heard Marine Le Pen on the stump arguing for the AOC by saying, “Long live Volnay! Down with vin de table!”

Although terroir is a powerful concept, it has limitations administratively as the AOC system has shown. Also, it’s not the only way to signal quality or even protect quality, as a company brand (estate name) can often serve as a better indicator of quality than simply reading the place name. Also, if you’re looking for a product that’s made in a certain way–Biodynamically grown, fair-trade certified–there are tons of organizations that offer third-party certifications that have little or nothing to do with terroir.

Erlanger concludes his piece with a doozy: “The preservation of terroir is finally a kind of unwritten conspiracy between the farmers and the wealthy, as well as the bourgeois bohemians of the big cities, who will pay more for quality, for freshness, for artisanal craft and for that undefinable authenticity that is the essence of terroir.”

Ah, bourgeois bohemians–I thought David Brooks had his own space on the op-ed page? But, really, a “conspiracy”? Sorry, but I didn’t know that tin-foil hats came in AOC styles.

NY Liquor Authority to Wine Library: “immediately cease and desist”

ny_liquor_authorityNew York law states prohibits wine shipments from New Jersey retailers to NYS residents. But you’d never know it since New Jersey is home to many wine shops that sell wine online to New York and beyond. One of the state’s highest profile retailers is Wine Library, popularized by Gary Vaynerchuk who once streamed 1,000+ videos from the store.

In a staggering change of direction, the New York State Liquor Authority has now decided to enforce the law on the books. In a letter dated 8/12/13 that has not been seen publicly even though it is on the SLA website, the SLA instructs Wine Library to “immediately cease and desist” sales to New York residents. Wine Library did not respond to a query for comment.

Over the past decade, New Jersey has turned into Read more…

China threatens EU wine tariffs

wine_solar_panels

China is waving a broken wine bottle in international negotiations: in retaliation for EU tariffs of 11.8% against Chinese solar panels, Chinese authorities have threatened to place trade barriers on EU wine. The EU alleges that China dumps solar panels below the cost of manufacture and China alleges the same thing for EU wine, pointing to subsidies to the industry. See this Reuters account for details.

But who really stands to lose, European wine producers or Chinese consumers who have acquired a taste for European wines? Well, surely the Lafite crowd in mainland China won’t be crying into their Riedel stemware as they could likely afford to pay any new duties. (Notably, wine coming into Hong Kong would still be exempt.) But it could shift Chinese consumption to other parts of the wine world, such as Australia or the US. Or maybe it would spur interest in domestic wines from China. Or maybe it would snuff out their newly stoked interest in wine. There are always unintended consequences in trade wars.

And, more often than not, tough talk is just a bargaining tactic.

Proposed French wine tax baits chardonnay uprising

yves_daudignyIn 1789, the price of bread surged in France. And in heads rolled as a result.

Another symbol of France–wine–is being threatened with a 1,000% tax increase. Will riots break out across the country?

Who is the man with a set of grapes big enough to dare provoke the ire of the French winegrowers and wine consumers? It’s Yves Daudigny, a socialist senator from Aisne (“The Fightin’ Aisne”) in Picardie. I bet they don’t even make wine in Picardie! Wait, what’s that, Jimmy? Champagne is partially in Aisne, Senator Daudigny’s district? Okay, scratch that.

The Senator is clearly a tough nut to crack. Last year he proposed a 300% tax on palm oil in what was dubbed the “Nutella tax.” Mmm, taxes so high you can spread them on your bread in the morning.

boy_wine_franceNow he’s unleashing his tax machine on the wine industry, proposing to raise the tax from three euro cents to €0.30-€0.60 a bottle! This would bring it inline with beer and spirits. But we all know that beer and spirits deserve that tax. Was there ever a black and white photograph of a child toting a six-pack and a bottle of Johnny Walker under his arm? Non, monsieur!

Senator Daudigny, taxing wine in France is like taxing being French! It’s un-French to even consider it! Moreover, why would you want people to drink less wine? The wine industry is struggling because French people are not drinking enough of the stuff. If you really want a radical reform, try uncorking a take-your-wine-to-work day. Or Hug a Vigneron day. Or how about a subsidy for French wine? It’s already so expensive that people in Hong Kong are bidding bottles to stratospheric levels! Or subsidize hipster wines from the Jura or the Loire to jumpstart exports to Williamsburg and San Francisco.

Don’t make the winegrowers stage protests outside your office with pitchforks and corkscrews!


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