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Happy Sunday! Hope you’ve had a wonderful week! In this week’s DECORKED digest, you will read all about premiumization trends, Balinese wines, fungi to combat drought, eco-friendly bottles, and much much more.

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WINEMAKER USES FUNGUS TO COMBAT DROUGHT

In the face of drought conditions in Italy's Emilia-Romagna region, winemaker Maria Soledad Adriasola Lang has pioneered the use of a beneficial fungus called mycorrhizae to strengthen her vines and enhance their resistance to drought. By inoculating the vines with mycorrhizae, Adriasola has produced a remarkable Sangiovese wine labeled "Biosimbiotico." The mycorrhizae form a symbiotic relationship with the plants, improving water and nutrient absorption and resulting in healthier vines and enhanced wine quality. Adriasola's groundbreaking approach offers hope for winemakers seeking sustainable solutions to climate change challenges.

In the bottle, Adriasola's "Gualdo" Romagna DOC Sangiovese Predappio Biosimbiotico 2021 showcases the positive effects of the fungal inoculation, with a well-balanced profile, elegant finish, and evolved flavors beyond its age. Her success highlights the potential of symbiotic relationships in viticulture and their role in addressing climate change impacts. This pioneering technique inspires winemakers to explore natural partnerships to enhance vineyard resilience and produce wines of exceptional quality, even in challenging environmental conditions.

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CHÂTEAUNEUF-DU-PAPE UNDERGOES TRANSFORMATION

Châteauneuf-du-Pape, the renowned wine region in France, is experiencing a remarkable transformation. Previously lacking in quality accommodations and dining options, the village has undergone a significant revitalization led by Arnaud and Isabelle Strasser. The Strassers, who own vineyards in various Rhône appellations, have not only acquired prestigious estates in Châteauneuf-du-Pape but have also renovated the local hotel and restaurant, La Mère Germaine, which now boasts a Michelin star. Their efforts have breathed new life into the village, attracting visitors and putting Châteauneuf-du-Pape back on the map.

The Strassers' commitment to the region goes beyond hospitality. They have also expanded their viticultural holdings, including purchasing Domaine La Millière and Dom du Moulin Blanc, and are driving the development of oenotourism. Their dedication to rejuvenating Châteauneuf-du-Pape and showcasing its wines reflects a genuine passion for the region and its potential. With their achievements, the Strassers have become integral members of the local wine community, earning recognition and acceptance from their peers.

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CHÂTEAU GUILHEM MAKES ECO-FRIENDLY BOTTLES

Château Guilhem, located near Limoux in southern France, has taken significant steps to make its wine bottles more eco-friendly. The owner, Bertrand Gourdou, has embraced a policy of using local supplies for dry goods, ensuring that the packaging materials for their 250,000 bottles per year are sourced from Occitania, within 100 km of the estate. By standardizing the bottle format, closures, and boxes, the winery has achieved economies of scale and only experienced an 18% increase in costs, despite inflation.

Catherine Montahuc, the winemaker and head of production at Château Guilhem, highlights the environmentally conscious changes they have made. They replaced the conical Bordeaux bottle with a long Burgundy bottle made from recycled and recyclable glass, significantly reducing the weight. This switch has saved 25 tonnes of glass per year. The winery also opted for labels made from recycled and recyclable paper and eliminated the use of aluminum and plastic capsules. The positive response from consumers and the interest from wine merchants and supermarkets further validate their eco-friendly approach.

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POTENTIAL FOR GROWTH IN ALCOHOL TO-GO SALES

Alcohol to-go has become a popular offering for restaurants since the pandemic, with 90% of operators planning to continue offering alcoholic beverages with off-premise orders if local laws permit, according to the National Restaurant Association. However, there is a gap between diner interest and actual ordering behavior, indicating the untapped potential for growth in to-go alcohol sales. While 61% of adults express a desire for more alcoholic beverage options when ordering takeout or delivery, only 24% have added alcohol to their off-premise orders in the past six months. Targeted marketing efforts can help raise awareness, especially among younger consumers who are more likely to select a restaurant for takeout if they can include alcoholic drinks. Offering curated choices and club memberships can attract wine, beer, and cocktail enthusiasts. With legislative support and market investments, to-go alcohol sales can contribute to the industry's post-pandemic recovery.

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LEADING WINE BRAND LOWERS ALCOHOL LEVEL TO MITIGATE RISING COSTS

Isla Negra, one of Britain's top-selling wine brands, is set to reduce its alcohol by volume (ABV) in response to increasing alcohol duty in the UK. The move aims to keep the brand affordable for consumers as the government raises taxes on alcohol. The decision came during an exclusive interview with Simon Doyle, the managing director of Concha y Toro UK, which owns Isla Negra. With a duty increase scheduled for August, reducing the ABV allows the brand to lower its duty exposure and prevent a significant rise in retail prices. Isla Negra plans to reduce the ABV to around 10.5% to 11% for its Sauvignon Blanc and Merlot lines. The company is exploring various cost-reducing measures, including lighter bottles, bulk shipping, and alternative formats like Tetrapak. The goal is to mitigate rising costs and maintain consumer affordability in the face of inflation and excise duty increases.

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WINE FUTURE 2023 EXPLORES CHALLENGES AND SOLUTIONS FOR THE WINE INDUSTRY

Wine Future 2023, a renowned industry event, will delve into the multiple challenges faced by the wine industry and explore potential solutions. The conference will address both external threats, such as the global recession and the climate crisis, as well as internal challenges that could have long-lasting impacts on the wine trade and consumption. Key topics to be covered include the role of influencers and social media in engaging new consumers, promoting moderation and responsible drinking, effective communication about wine, the impact of technology and artificial intelligence on the wine industry and labor markets, adapting to the new reality of wine tourism post-Covid-19, innovative strategies to improve sales, the health benefits of wine compared to other alcoholic beverages, and the adoption of new technologies and digital marketing in the wine industry. The event will feature over 60 speakers and take place from November 7th to 9th in Coimbra, Portugal.

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IS THE PREMIUMIZATION TREND IN THE DRINKS INDUSTRY SLOWING DOWN?

The trend of premiumization, where consumers trade up to higher-priced products, is showing signs of slowing down. According to data from the Distilled Spirits Council of the United States (DISCUS), the first quarter of 2023 saw a dip in trading up among US consumers due to inflationary pressures and the cost-of-living crisis. The 2023 Drizly Consumer Report revealed changing alcohol purchasing behaviors, with consumers opting for cheaper brands or less-expensive beverage categories. While premiumization is expected to continue, the growth rate is projected to be more moderate than before. Wine has driven the trend, with the average unit price increasing, but spirits are experiencing a slowdown. Financial pressures and changing consumer behaviors influence the trajectory of the premiumization trend in the drinks industry, presenting new challenges and opportunities.

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BALI'S HATTEN WINERY GOES PUBLIC, PIONEERING WINE PRODUCTION ON THE ISLAND

Bali's Hatten Winery, the oldest of the four wineries on the island, has become the first publicly traded winery in Bali after nearly 30 years of operating as a private company. The winery completed its initial public offering (IPO) in January 2023 and has seen its stock price quadruple since then. Hatten Winery, located in the seaside town of Sanur, is known for its relaxed beach lifestyle and is a popular destination for tourists. With vineyards located near the villages of Seririt and Sanggalangit, Hatten produces wines from both native and international grape varieties, including the famous local grape called Alphonse Lavallée. The winery offers a diverse portfolio of wine brands to cater to different segments of wine drinkers. Bali's tropical climate allows for three harvests per year, contributing to the unique fruity and mineral characteristics of the local wines. Wine consumption and education are increasing on the island, driven by the growing tourism industry and the efforts of local wineries to educate hospitality staff about wine.

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WINE REGION OF THE WEEK: RHONE VALLEY, FRANCE

The Rhône Valley in France is a renowned and esteemed wine-producing region that is divided into the northern and southern parts. The northern Rhône is celebrated for its cooler climate and is known for producing wines that showcase the purity of Syrah, the dominant grape variety. Appellations like Côte Rôtie and Hermitage are famous for their Syrah-based wines, while Viognier, Marsanne, and Roussanne are favored for white wines in this region. The northern Rhône's smaller size and quality-driven approach make it a stronghold for exceptional wines.

On the other hand, southern Rhône is characterized by its warmer climate and a wider range of grape varieties. Here, Syrah is often blended with Grenache and Mourvèdre to create the popular "GSM" blend, which is a hallmark of the southern Rhône. The region's larger size and more diverse terroir allow for the cultivation of numerous grape varieties, resulting in a greater quantity of wines produced. While the northern Rhône boasts prestigious appellations like Hermitage and Côte Rôtie, it only represents a small percentage of the overall wine production in the Rhône Valley. In contrast, the southern Rhône is home to notable appellations such as Châteauneuf-du-Pape, which enjoys a well-deserved reputation for its wines.

Spanning nearly 240 kilometers along the Rhône River, the Rhône Valley offers a wide variety of soil types and mesoclimates. This diversity contributes to the unique characteristics found in the wines produced across the region. Whether it's the purity and elegance of the northern Rhône or the richness and complexity of the southern Rhône, the wines from this renowned wine region captivate wine enthusiasts around the world with their distinct personalities and exceptional quality.

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GRAPE OF THE WEEK: MOURVEDRE (MONASTRELL)

Mourvèdre, also known as Monastrell in Spain and Mataro in Australia and California, is a black-skinned grape variety cultivated across the western Mediterranean. It has a rich history and is grown extensively in the Iberian Peninsula, southern France, California, and South Australia. This grape thrives in warm, dry climates and produces small, thick-skinned berries, resulting in wines with intense color and high tannin levels. Mourvèdre's distinctive aromas of meatiness and herbs, along with its robust tannins, make it a popular blending component. It is often paired with vibrant Grenache and structured Syrah, creating wines with depth and complexity. Other traditional southern French varieties like Carignan and Cinsault are also frequently blended with Mourvèdre.

In France, Mourvèdre plays a key role in the wines of Provence and the southern Rhône Valley, particularly in blends from regions like Côtes du Rhône and Châteauneuf-du-Pape. Bandol, a region in Provence, is known for its tannic and meaty red wines and spicy rosés, where Mourvèdre vines flourish. In Spain, Monastrell wines showcase rich flavors of blackberry and black cherry and are regaining recognition. In Australia and California, where it is often called Mataro, Mourvèdre wines are fruit-driven and rich. While single-variety Mourvèdre wines are less common, there is growing experimentation among producers to highlight the unique characteristics of this grape. Overall, Mourvèdre/Monastrell/Mataro is a versatile and intriguing grape variety that adds complexity and character to the wines it is blended with.

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DID YOU KNOW THAT?

🏺 The oldest known winery, dating back over 6,000 years, was discovered in Armenia.

🌿 The term "terroir" refers to the environmental factors, including soil, climate, and topography, that influence the characteristics of grapes and the resulting wine.

🍾 Champagne is produced through a specific method called "Méthode Champenoise," which involves a secondary fermentation in the bottle to create the characteristic bubbles.

🍷 The shape of a wine glass can impact the aroma and taste perception of the wine. Different glass shapes are designed to enhance specific wine varietals.

�� There are over 10,000 different grape varieties used in winemaking around the world.

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