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💤 Sleeping Wine Giants

💤 Sleeping Wine Giants

In this week’s DECORKED digest you will read all about the government spending on wine, Turkish wines, EU policies, trends for 2024, ‘sleeping giants’, and much more. Keep reading!

January 14, 2024

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Happy Sunday! We hope your week was as good as ours. In this week’s Decorked digest, you will read all about the government spending on wine, Turkish wines, EU policies, trends for 2024, ‘sleeping giants’, and much more. Keep reading!

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INTERESTING THIS WEEK

🇺🇸 10 facts about Americans and alcohol as ‘Dry January’ begins READ HERE

🥫 Canned wine ‘least preferred’ packaging for consumers READ HERE

🍇 9 grapes to help you understand Armenian wine READ HERE

📝 It’s all changed for Australian wine in 2024 READ HERE

🍷The Top 100 Wines of 2023 READ HERE

📈 Seven wine trends in 2024 READ HERE

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We curate, filter, and select only the most exciting and important news for you.

WHO ARE THE ‘SLEEPING GIANTS’ OF THE DRINKS INDUSTRY?

The Online Alcohol Report (Salience Index 2023) identifies potential 'sleeping giants' in the industry—brands with high authority but low online visibility. Brands like The Bar and Nyetimber, haven't yet fully tapped into consumer goodwill. These brands are trusted and respected but lack search traffic. The study assesses various performance indicators, including year-on-year visibility, search volume trends, brand awareness, and monthly online searches. On the flip side, 'over-achievers,' such as VIP Bottles and The Champagne Company, excel in search engines despite having low authority. The report emphasizes the balance between visibility and authority as crucial for success in the online alcohol market

RESEARCHERS INVESTIGATE CONSUMER RESPONSE TO NON-GLASS WINE PACKAGING

Researchers from the University of South Australia and the University of Adelaide investigated consumer preferences in wine packaging and the environmental impact of different options. Traditional glass wine bottles, while preferred for aesthetic and taste reasons, contribute significantly to the wine industry's carbon footprint. The study found that alternative packaging formats like "bag-in-box," aluminum cans, and flat plastic bottles are up to 51% more carbon-efficient than glass. However, Australian consumers exhibit resistance to these environmentally friendly options due to perceptions of lower quality and association with specific occasions. The survey of 1,200 Australians revealed that cask wine and flat plastic bottles were the most preferred alternatives, particularly among younger consumers, and were more accepted when associated with mid-to-low prices and prestigious brands.

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BEVERAGE ALCOHOL RETAILERS ANTICIPATE DEMAND IN 2024

Alcohol retailers are focusing on sourcing unique and high-quality super-premium wines, whiskies, and tequilas in the coming year. Despite an overall decline in U.S. wine sales, there's growth in the super-premium category, particularly in the $12-to-$25 range. Retailers, like Ted Farrell of Haskell’s in Minneapolis, are emphasizing control brands that they can directly import. Popular wines at Haskell’s include Louis Martini Sonoma Cabernet Sauvignon, Second Growth Columbia Valley Cabernet, La Crema Pinot Gris, Gearbox Chardonnay, and Angels Landing Napa Cabernet. The industry is grappling with the oversaturation of ready-to-drink (RTD) products, and Tequilas and whiskies continue to be strong trends. Retailers are countering saturation with targeted promotions through email, local television, and reduced newspaper ads. Wine.com, an internet retailer, witnessed an increase in imported wine sales, reaching 58% of total sales last year. Despite a slight decline in red wine market share, it still represents a significant portion of Wine.com's sales at 64.3%.

GOVERNMENT SPENT £27,000 ON WINE DURING PANDEMIC

The UK government has released delayed data on its wine cellar expenses, indicating spending of £27,000 on over 1,400 bottles of wine and spirits during the 2020-2022 period. This is significantly lower than pre-pandemic levels of 3,000 to 5,000 bottles typically consumed by the government for domestic and overseas events. Between March 2020 and March 2021, only 130 bottles were consumed, but this number increased to 1,300 in the following year as lockdowns eased. Additional expenses included £14,621 for 516 bottles of red Bordeaux and £12,356 for 636 bottles and 180 magnums of English and Welsh sparkling wine. The opposition criticized the government's spending during the pandemic, highlighting a net spend of over £100,000 from 2019-2022.

EU POLICY - BREWERS FROTH OVER WINEMAKERS’ EXEMPTION FROM ANTI-WASTE RULES

European brewers are raising concerns over what they see as unfair treatment in proposed EU rules on packaging waste. The brewers argue that exemptions for winemakers from reuse targets and deposit-return schemes amount to discrimination. A ministerial summit on December 18 granted winemakers a carve-out from the requirement that 10% of products be supplied in reusable containers by 2030, rising to 40% by 2040. Additionally, wine is proposed to be exempt from deposit-return schemes by 2029. Brewers argue that treating beer and wine differently distorts the market, but some in the wine industry dismiss these concerns, telling brewers to "mind their own business."

TURKISH SPARKLING WINES ARE WINNING FANS

Turkey's Vinkara winery, near Ankara, introduced sparkling wine in 2009 using the indigenous Kalecik karasi grape, dubbed the 'Turkish pinot noir.' Their Yasasin received acclaim as the world's best sparkling wine in 2020. Despite initial doubts, Turkish sparkling wine, particularly Yasasin, is gaining popularity, leading to quick sellouts, especially during New Year celebrations. Vinkara pioneered Turkish sparkling wine using the traditional champagne method, emphasizing the quality of their wines and hand-picked Kalecik karasi grapes. Although domestically successful, only 30,000 liters of Turkish sparkling wines were exported last year, limiting international reach. Turkey, the world's sixth-largest grape producer, allocates only a small fraction for winemaking.

HOW KOSHER WINE BECAME A HIT IN THE CARIBBEAN AND BEYOND

Manischewitz, a kosher wine initially popularized in the American Jewish community in the 1930s, has expanded its consumer base to include Caribbean, African-American, and East Asian communities. Despite its sweet taste from Concord grapes and added sugar, it has retained cultural significance. Established in 1888, the brand today has a very diverse product range. Its global market presence, notably in the Caribbean with a Jewish heritage, became crucial as wine preferences shifted in the 1980s. Although tastes evolved, Manischewitz continues to bridge cultural gaps.

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WINE REGION OF THE WEEK: HOKKAIDO, JAPAN

Hokkaido is an important but relatively new cool climate wine region in northern Japan. It accounts for about one-third of the national grape growing by tonnage. In 2018 the Hokkaido GI was created for wine. This makes it Japan's second such designation, after Yamanashi GI. Winemaking began in the 1960s, and there are now around 26 wineries in the region. Wines are made from a range of hybrid and Vitis vinifera varieties. Reflecting the high latitude, the industry was originally based largely on cold-hardy hybrid grapes such as Niagara (Vitis labrusca). Though many vineyards remain, climate change has meant that Vitis vinifera varieties can now also be cultivated here. Cold winters with lots of snow mean that tartrate crystals often form in tanks, especially those situated outside. On the other hand, summers can be hot enough that ferments need to be temperature-regulated. The region is home to the Hokkaido Wine Company, the biggest producer of Japanese wine in the country. Based in Otaru, it owns a 447-hectare (1,104 acres) vineyard located 100 kilometers (60 miles) away in Urauso.

GRAPE OF THE WEEK: KERNER

Kerner is a white grape variety grown widely across Germany. It was first bred in Württemberg in 1929 by crossing Riesling and Trollinger (Schiava Grossa) and was named after Justinus Kerner, a 19th-century local German poet and writer of drinking songs. Kerner is used in blends (like the infamous Liebfraumilch) and to make varietal wines, which show attractive apple, pear, and citrus characteristics, sometimes with a hint of stonefruit. Even though one of its parents is a dark-skinned grape used for making red wines, Kerner is unmistakably a white-wine variety. It has large, light-green berries and shares many characteristics with Riesling, both in the vineyard and the glass. Like Riesling, Kerner is high in acid and can age well for many years. However, as a varietal wine, it lacks the flavor and textural refinement of Riesling. Kerner is one of the most popular crossings created in 20th-century Germany and is planted extensively throughout the country, particularly in Pfalz and Rheinhessen.

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