Wine in Fifty Years: China, Plastic and English Champagne
Berry Bros. & Rudd, Britain's oldest independent wine merchant, made several predictions about the state of the wine world in 2058 in its “Future of Wine Report.” Among its many predictions, Berry believes China could one day rival Bordeaux, while England could be a new champagne region in just 50 years.
In the world of volume wine, Berrys believes there are two specific areas set for significant change by 2058:
1. Countries renowned for “new world wine” will alter radically as the effects of climate change are felt.
2. The size of wine “brands” will lead to massive changes in the way wine is produced, packaged and marketed.
Leading the charge in volume wine, predicts Berrys, will be China. Already the world's sixth largest wine producer and number four in terms of area under vine, its not too far-fetched to believe that China could soon be the world’s leading producer of volume wine. Berry believes China will excel in producing Cabernets and Chardonnays, in particular.
"China has the vineyards, but not the technical expertise," agrees Alun Griffiths MW, "however, if good people from wine producing countries think there is opportunity to make wine in China, they will go there and invest."
Berrys also believes that if global warming persists, countries that are currently small scale producers, such as Ukraine, Moldova, Croatia, Slovenia, Poland and Canada,
BLEAK FUTURE FOR AUSTRALIA. In recent years, Australia has suffered from severe droughts that have resulted in vineyard irrigation being temporarily banned. If this trend continues, says Berry, supplies of inexpensive Australian wine may soon be a thing of the past.
By 2058, Berrys predicts Australia will be too hot and arid to support large areas of vine. It will no longer be renowned for volume wine and will become, instead, a niche producer, concentrating on hand-crafted, terroir-driven, fine wine.
WINE BECOMES (EVEN MORE) COMMERCIALIZED. Berry experts believe big brand, blended wines with grapes from around the world could soon replace region-specific varietals.
"By 2058, big brand wine could be grape or blend specific, rather than from a particular country. Grapes will be gathered from all over the world and blended to suit consumers' tastes."
They also believe spirits companies and supermarkets will own most of the world’s wine brands by 2058.
GLASS BOTTLES NO LONGER. In 50 years' time, Berry believes wine is unlikely to be sold in glass bottles as retailers and importers try to cut costs, waste, and reduce the environmental impact of wine being shipped around the globe. Instead, wine will be packaged in plastic or reinforced cardboard containers.
CHINA AND ENGLAND, UNRIVALED WINE REGIONS? While Berry thinks China is set to become a leading producer of volume wine, they also think China has all the essential ingredients to rival the best of Bordeaux.
“It is entirely conceivable that, in such a vast country, there will be pockets of land with a terroir and micro-climate well suited to the production of top quality wines," said Jasper Morris MW.
Thanks in part to warmer temperatures (2007 was the second warmest year in the UK in 356 years), more and more English land is becoming suitable for wine production. Berrys believes the amount of English farmland devoted to wine production may rival that of France by 2058.
French Champagne producers such as Louis Roederer have been looking at the chalky soil of the South Downs with interest, believing it offers them a great opportunity to produce sparkling wines similar to Champagne itself.
Let us know your thoughts at megan@beernet.com
BEAM GLOBAL FILES SUIT AGAINST VIN & SPRIT
Fortune Brands filed a suit Monday in the U.S. District Court in Manhattan to block Swedish distiller Vin & Sprit from transferring its 10% stake in Beam Global Spirits and Wine to the Swedish government, its parent. Fortune is seeking a preliminary injunction to prevent the transfer while the parties negotiate.
The complaint states: "The transfer of the Beam shares to the Swedish government, a contractual and business stranger to Fortune and Beam, would risk serious and irreparable harm."
Court papers also state that Beam wants to repurchase V&S’s stake, but has been unable to agree on a “fair market value” for the shares.
Before Pernod bought V&S in March for over $8 billion, Fortune was considered the front-runner for the coveted Absolut vodka brand.
TTB THREATENS TO BLOCK BRUNELLO IMPORTS
The U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) has sent a letter to the U.S. Embassy in Rome threatening to block all imports of Brunello di Montalcino. Beginning June 9, all Brunello exported to the U.S. must include lab work that certifies the wine is pure Sangiovese, reports Decanter. The U.S. is Brunello’s biggest market, importing 25% of total Brunello production.
By law, Brunello must be 100% Sangiovese. Adding other grapes would violate a strict labeling agreement between the U.S. and the EU.
Apparently, numerous written requests sent to the Italian Embassy in Washington by the TTB were ignored in the past.
'We have a general assembly in two days, and organizing laboratory analysis will be our number one priority, to ensure that Brunello will continue to be imported into the US,' Marone Cinzano said.
Let us know your thoughts at megan@beernet.com.
DIAGEO OFFSETS RISING COSTS WITH PRICE INCREASES
In a note published today by UBS senior analyst Melissa Earlam, the firm reports that Diageo is not immune to raw material pressures, but is outperforming on cost execution. Diageo’s supply chain presentation highlighted that glass and grain price inflation in particular has taken a toll.
“Diageo commented that while gross margins have been better than expected in 08E and would increase y/y, the objective of holding gross margins flat in 2009E would be a challenge. Raw material pressure is not expected to dissipate in the mid-term, hence Diageo is building in strong pricing, which is holding well in the US, Asia and Latin America in particular, though could be more challenging in Western Europe short-term,” said Melissa.
Diageo’s scale and supplier relationships have driven better rates for key raw materials. The new “Perfect Plant Program” (started Jan 08), production optimization (Ireland and Lehigh plant in US) and efficiencies in Asia will be the focus of supply efficiencies, now that the bulk of headcount reduction is complete, says Melissa.
WSD BRIEFS:
NORTH CAROLINA GOV. MIKE EASLEY proposed Monday to raise state taxes on alcohol to help reform the state’s mental healthcare system. New taxes on beer, wine and spirits would generate $66 million next year.
THE NEW JERSEY LEGISLATION is considering a bill that would encourage consumers to recycle old cans and bottles (including beer and wine). The bill would charge an extra $.10 for bottles and cans less than 24 ounces and $0.20 for larger ones. Consumers would get the money back by returning containers to either newly created redemption centers or to retailers. New Jersey would be the 12th state with such a law.
Until tomorrow, Megan
“Mistakes are the portals of discovery.”
James Joyce
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
In the world of volume wine, Berrys believes there are two specific areas set for significant change by 2058:
1. Countries renowned for “new world wine” will alter radically as the effects of climate change are felt.
2. The size of wine “brands” will lead to massive changes in the way wine is produced, packaged and marketed.
Leading the charge in volume wine, predicts Berrys, will be China. Already the world's sixth largest wine producer and number four in terms of area under vine, its not too far-fetched to believe that China could soon be the world’s leading producer of volume wine. Berry believes China will excel in producing Cabernets and Chardonnays, in particular.
"China has the vineyards, but not the technical expertise," agrees Alun Griffiths MW, "however, if good people from wine producing countries think there is opportunity to make wine in China, they will go there and invest."
Berrys also believes that if global warming persists, countries that are currently small scale producers, such as Ukraine, Moldova, Croatia, Slovenia, Poland and Canada,
BLEAK FUTURE FOR AUSTRALIA. In recent years, Australia has suffered from severe droughts that have resulted in vineyard irrigation being temporarily banned. If this trend continues, says Berry, supplies of inexpensive Australian wine may soon be a thing of the past.
By 2058, Berrys predicts Australia will be too hot and arid to support large areas of vine. It will no longer be renowned for volume wine and will become, instead, a niche producer, concentrating on hand-crafted, terroir-driven, fine wine.
WINE BECOMES (EVEN MORE) COMMERCIALIZED. Berry experts believe big brand, blended wines with grapes from around the world could soon replace region-specific varietals.
"By 2058, big brand wine could be grape or blend specific, rather than from a particular country. Grapes will be gathered from all over the world and blended to suit consumers' tastes."
They also believe spirits companies and supermarkets will own most of the world’s wine brands by 2058.
GLASS BOTTLES NO LONGER. In 50 years' time, Berry believes wine is unlikely to be sold in glass bottles as retailers and importers try to cut costs, waste, and reduce the environmental impact of wine being shipped around the globe. Instead, wine will be packaged in plastic or reinforced cardboard containers.
CHINA AND ENGLAND, UNRIVALED WINE REGIONS? While Berry thinks China is set to become a leading producer of volume wine, they also think China has all the essential ingredients to rival the best of Bordeaux.
“It is entirely conceivable that, in such a vast country, there will be pockets of land with a terroir and micro-climate well suited to the production of top quality wines," said Jasper Morris MW.
Thanks in part to warmer temperatures (2007 was the second warmest year in the UK in 356 years), more and more English land is becoming suitable for wine production. Berrys believes the amount of English farmland devoted to wine production may rival that of France by 2058.
French Champagne producers such as Louis Roederer have been looking at the chalky soil of the South Downs with interest, believing it offers them a great opportunity to produce sparkling wines similar to Champagne itself.
Let us know your thoughts at megan@beernet.com
BEAM GLOBAL FILES SUIT AGAINST VIN & SPRIT
Fortune Brands filed a suit Monday in the U.S. District Court in Manhattan to block Swedish distiller Vin & Sprit from transferring its 10% stake in Beam Global Spirits and Wine to the Swedish government, its parent. Fortune is seeking a preliminary injunction to prevent the transfer while the parties negotiate.
The complaint states: "The transfer of the Beam shares to the Swedish government, a contractual and business stranger to Fortune and Beam, would risk serious and irreparable harm."
Court papers also state that Beam wants to repurchase V&S’s stake, but has been unable to agree on a “fair market value” for the shares.
Before Pernod bought V&S in March for over $8 billion, Fortune was considered the front-runner for the coveted Absolut vodka brand.
TTB THREATENS TO BLOCK BRUNELLO IMPORTS
The U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) has sent a letter to the U.S. Embassy in Rome threatening to block all imports of Brunello di Montalcino. Beginning June 9, all Brunello exported to the U.S. must include lab work that certifies the wine is pure Sangiovese, reports Decanter. The U.S. is Brunello’s biggest market, importing 25% of total Brunello production.
By law, Brunello must be 100% Sangiovese. Adding other grapes would violate a strict labeling agreement between the U.S. and the EU.
Apparently, numerous written requests sent to the Italian Embassy in Washington by the TTB were ignored in the past.
'We have a general assembly in two days, and organizing laboratory analysis will be our number one priority, to ensure that Brunello will continue to be imported into the US,' Marone Cinzano said.
Let us know your thoughts at megan@beernet.com.
DIAGEO OFFSETS RISING COSTS WITH PRICE INCREASES
In a note published today by UBS senior analyst Melissa Earlam, the firm reports that Diageo is not immune to raw material pressures, but is outperforming on cost execution. Diageo’s supply chain presentation highlighted that glass and grain price inflation in particular has taken a toll.
“Diageo commented that while gross margins have been better than expected in 08E and would increase y/y, the objective of holding gross margins flat in 2009E would be a challenge. Raw material pressure is not expected to dissipate in the mid-term, hence Diageo is building in strong pricing, which is holding well in the US, Asia and Latin America in particular, though could be more challenging in Western Europe short-term,” said Melissa.
Diageo’s scale and supplier relationships have driven better rates for key raw materials. The new “Perfect Plant Program” (started Jan 08), production optimization (Ireland and Lehigh plant in US) and efficiencies in Asia will be the focus of supply efficiencies, now that the bulk of headcount reduction is complete, says Melissa.
WSD BRIEFS:
NORTH CAROLINA GOV. MIKE EASLEY proposed Monday to raise state taxes on alcohol to help reform the state’s mental healthcare system. New taxes on beer, wine and spirits would generate $66 million next year.
THE NEW JERSEY LEGISLATION is considering a bill that would encourage consumers to recycle old cans and bottles (including beer and wine). The bill would charge an extra $.10 for bottles and cans less than 24 ounces and $0.20 for larger ones. Consumers would get the money back by returning containers to either newly created redemption centers or to retailers. New Jersey would be the 12th state with such a law.
Until tomorrow, Megan
“Mistakes are the portals of discovery.”
James Joyce
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 3:03 PM
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