Dr Vino's wine blog

A simmering EU-US trade dispute with 22 years of age on it has finally been resolved. The US will not allow its producers to label their wines with semi-generic place names such as Champagne, Burgundy, and Chianti. Nor will the US clamp down on European wine imports as it had threatened to do under the US Bioterrorism Act.

The EU conceded to recognize American winemaking practices, such as the use of oak chips, and American regional names, such as Napa.

Some issues remain unresolved but they will be tackled in future negotiations according to Joe Rollo of the Wine Institute, as quoted in the San Francisco Business Times. They include European tariffs that are twice the size of American tariffs, European subsidies, and governmental export credits.

American exports of wine surged 28% on the back of a weaker US dollar last year to $794 million, reports the LA Times. The EU is the largest market for American exports accounting for about two-thirds of trade. The EU exports $2.3 billion of wine to the US though exports have softened, particularly of some French wines. America is a desirable market because it is growing and will be the world’s largest wine market by 2008 according to Vinexpo. Resolving these simmering disputes should help trade in both directions.

Unfortunately for American consumers, the agreement on names only applies to new wine brands and not existing brands. Travesties such as “hearty Burgundy” and Korbel California champagne will be allowed to continue. That in my view is a disservice to the consumer as well as French growers.

E&J Gallo has reached an agreement today with the United Farm Workers who called for a boycott of the company’s wines three months ago (background). They will toast the agreement with Gallo of Sonoma wines later today reports the Press Democrat.

The new contract brings greater equality to contract workers and full-time gallo employees. Previously, contract workers had not received grievance procedures, health benefits or vacation even though they received the same wages and paid the same union dues. The new contract provides contract workers with grievance procedures and offers them a $400 bonus in lieu of health benefits according to the Post-Democrat. Sonoma workers will see their pay rise to $8.98 per hour by the end of this 30 month contract.

The story quotes UFW spokesman Marc Grossman as saying “We’re very pleased. The contract was ratified almost unanimously.”

Privately owned Gallo employs 4,400 workers and produced 58 million cases of wine in California last year. There is no comment on whether the boycott played any role in bringing the parties together.

French supermarkets are aggressively selling some of the finest wines from Bordeaux Decanter reports today.

Last week, near the French city of Strasbourg, hundreds packed into the suburban supermarket Auchan for its annual Foire aux Vins (wine fair), where top chateaux such as Margaux, Mouton Rothschild, Sociando Mallet and Cos d’Estournel were going for a song.

Chateau Sociando Mallet 2003 was priced at €25 a bottle, Cos d’Estournel 2002 at €49, Léoville Las Cases 2001 at €61 and both Margaux and Mouton Rothschild 2002 at €95.

The article speculates that the lack of strong export markets has led producers offload their wines at home.

Regardless of the motives for favoring the domestic supermarket channel for high-end wines, the INAO has instructed quality producers to take a little wine off the table. The AP reports that production cuts for appellation wines have been put in place across France striking Bordeaux the hardest with a call for a 12% reduction. This is a further effort to remove a persistent surplus since incentives for distillation “failed” earlier this summer. According to the INAO press release, overproduction has led to this across-the-board action. Technically, the regional yields come up for approval every year and they have been allowed only at the low end of the range this year.

Maybe they need a “two euro Charles” like the Two Buck Chuck (Charles Shaw) to mop up some of the excess? Pairing supermarkets with cheap wine seems like a better match.

* * * *

UPDATE:
Decanter reports on violent protests in the Macon (Burgundy) as a result of the lower allowable yields.

Jancis Robinson predicts which off-the-beaten-path grape varietals are likely to make it big in the Weekend Financial Times. It’s definitely worth a read but here’s a snippet:

Wine professionals and serious wine aficionados are more likely to look for something a bit more outré than the most familiar grapes and, more and more, they are getting it. Ten years ago it looked as though the world’s vineyards might soon be planted with nothing but the most famous international vine varieties. Today the pendulum is swinging most definitively back towards biodiversity with the rediscovery, or at least re-evaluation of local, almost forgotten specialties (sometimes called heritage varieties – the wine world’s answer to heirloom tomatoes), and a much wider range of vines in general.

My own personal theory for this encouraging development is that it is not because the average consumer is desperate for a change from Chardonnay and Merlot. Rather the reverse in fact.

To the list I would add Aglianico from Campania and Basilicata in the south of Italy. And definitely Malbec but I suspect she left that off because it is now almost mainstream (though not quite yet in my view). When done well, Verdejo can be a refreshing blast of acidity for those tired of kiwi Sauvignon Blanc. And Greco di Tufo can offer surprising complexity for an Italian white.

In all, it’s great to celebrate diversity. What are some of your faves?

A few odds ‘n ends from round the web:

Parker power
The Economist centers its review of three new wine books in the current edition around critics. The review includes:
Elin McCoy’s The Emperor of Wine;
Thomas Pinney’s History of Wine in America; and
Paul Lukacs’ forthcoming The Great Wines of America: The Top Forty Vintners, Vineyards, and Vintages.

Mike Steinberger also had a punchy review of the McCoy book on Slate.com arguing that Parker’s power has passed. Indeed, there is historical precedent that when a force appears to be at its zenith, it is actually on the edge of decline. When Nixon declared “we’re all Keynesians now” it was the final nail in the coffin of Keynesianism. Similarly, when low-carb beer appeared, it was over for the Atkins diet (the company is now in bankruptcy).

Tom at Fermentations has been keeping up on the power struggle in Michigan.

And also via Tom, the private label of British supermarket chain Tesco’s “champagne” won in a blind tasting. The emperor has no clothes?!? (It does sell for £15 though)

Hot off the wires from France (maybe one day soon, I’ll do a longer piece on the state of play in France…):

Bordeaux has retained a PR firm and opened a US press office. The Bordelais CIVB, which comprises growers and negociants, hopes to prop up sales in what is soon to be the largest market for wine consumption.

Good weather may also help Bordeaux wines this year as the Pomerol harvest is “impeccable,” reports Decanter.

But heavy rains have put vineyards underwater in the Languedoc. Hopefully it is not as bad as the 2002 Rhone, which was largely a write-off vintage, but some Minervois vineyards are under 18 cm of water. Perhaps the story on old and new styles in Languedoc wines in the NY Times yesterday will provide some solace growers there.

I was thrilled to return home from the holiday weekend and see that Food & Wine magazine had rated my blog as one of the “seven best wine blogs.” What an honor!

It’s great that Food & Wine, an established print magazine with a high circulation, takes the frontiers of wine writing seriously enough to do a story on blogs. And I’m pleased to be included in the story and in fine company.

See story.

The wine “blogosphere” is a rapidly expanding universe with many great blogs. Which reminds me, I’ve got to add a blogroll of the many blogs that I like! Coming soon…(but in the meantime, check my links page)

Many wine buffs will be traveling this holiday weekend and they may be pleased to know that corkscrews are allowed in luggage, both checked and carry-on according to this TSA pdf (there’s no mention of wine bottles being excluded FYI).

I recently took a trip and left my corkscrew at home under the mistaken impression that they were still prohibited. The economic maximizers among you will be pleased to know that when I went to the local wine shop on arrival, I scoped out not only the best reasonably priced wine ($8) but also the price of the cheapest corkscrew at the store ($5; it was a fancy store). Using this a baseline, I was then more easily able to justify forking out $18 for an Australian wine since it had a screwcap!

Mrs. Vino and I enjoyed The Black Chook 2004, a blend of shiraz and five percent viognier, whose full flavors and slight sweetness paired well with the Indian curries we had for take out.