🔍 Orange Wine - Trend or Phenomenon?

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Happy Monday! We hope you have a great week. In this week’s DECORKED digest, you will read all about orange wines, new tariffs in Europe, Rose misconceptions, the American wine crisis, Tempranillo alternatives, and much more. Keep reading!

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INTERESTING THIS WEEK

🚋 Revived Napa wine train helps visitors explore the area while protecting the environment READ HERE

 🚓 London con artist sentenced over $13m wine and whiskey investment scam READ HERE 

💰 Billionaire Pierre Chen to auction multimillion-dollar wine collection READ HERE

🌟 Wine Spectator reveals its 2024 Restaurant Award winners READ HERE 

🧊 The best way to store ice wine READ HERE

🍷 The best value Shiraz of 2024 READ HERE

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ITALY’S WINE PRODUCTION FELL 17% IN 2023

In 2023, extreme weather severely impacted Italian agriculture, with a notable 17% decline in wine production due to the hottest summer in 2,000 years and damaging hailstorms. The overall farm output dropped by 3.9%, affecting fruits and olives as well. In 2024, severe drought in southern Italy, Sicily, and Sardinia further harmed crops and livestock. Despite these challenges, Italy voted against an EU policy mandating the restoration of 20% of land and sea by 2030, aimed at reversing habitat decline. Concerns about funding and over-regulation were cited. However, the legislation passed, requiring member states to set restoration targets and submit implementation plans, with a review in 2033. A survey showed that 85% of Italians support the law despite government opposition.

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TEMPRANILLO GRAPE RELATIVES SHOW PROMISE IN CLIMATE STUDY

In response to climate change, Spanish researchers have identified Benedicto and Moribel grapes as promising alternatives to Tempranillo, which is increasingly affected by heat and drought. With traditional wine regions at risk and Tempranillo's quality declining due to earlier flowering and harvests, producers are adapting by changing planting techniques and exploring resilient grape varieties. Benedicto and Moribel have shown good performance under extreme conditions, with Benedicto potentially surpassing Tempranillo in quality and Moribel offering higher acidity, both performing well in taste tests, suggesting they could help sustain and enhance wine production in a warming climate.

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AI IS ‘HERE TO HELP MAKE BETTER DECISIONS’ FOR WINE TRADE

At the "Vine to Mind" conference on artificial intelligence hosted by the Harvard Data Science Review, experts emphasized that AI can enhance decision-making for both, large wine companies and small family wineries. Despite some resistance due to unfamiliarity with AI, the conference aimed to bridge the gap between research and industry. Cathy Huyghe of Enolytic highlighted the value of existing winery data, while Jeffrey Meisel of Constellation Brands and Troy Rice of Total Wine & More discussed how AI helps manage customer data and improve purchase recommendations. Pierre-Yves Calloc’h from Pernod Ricard detailed their use of AI in grape harvesting, marketing resource allocation, and sustainability. Academic insights were provided by Bradley Rickard of Cornell University, analyzing the economic impact of legal changes on alcohol sales.

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ORANGE WINE: HIPSTER TREND OR GLOBAL PHENOMENON?

Alcohol consumption is decreasing, particularly among younger generations, but Gen Z drinkers are showing interest in exploring new wines, including lesser-known varieties like orange wines. Orange wine, an ancient category with a history dating back 5,000 years to Georgian qvevri fermentation, has seen a resurgence in popularity beyond hipster trends. This wine, made by leaving white grapes to macerate on their skins, offers unique aromas, a dense texture, and a tannic structure while maintaining high acidity. Originating from Georgia and revitalized in the 1990s by North-East Italian producers, orange wine is now globally produced. Recognizing its growing significance, the Global Wine Masters will launch the first Global Orange Wine Masters competition this summer.

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THE STORY BEHIND THE AMERICAN WINE CRISIS

The first half of 2024 has been challenging for the American wine industry, marked by a decline in domestic and international sales, rising inflation, anti-alcohol messaging, and increased competition from other beverages. The Silicon Valley Bank's annual report highlighted these struggles, particularly for small producers facing oversupply issues and calls to remove grapevines. However, this trend is not unique to the U.S.; global wine consumption is also down due to various factors, including inflation and geopolitical tensions. Despite the negative outlook, there are positive signs in certain market segments, such as mid-range and premium wines. Innovative practices and strategic adjustments are helping some wineries navigate these headwinds. Notably, young consumers are spending more per bottle, and some wineries are focusing on value sales rather than volume. Additionally, collaborative efforts and promotional initiatives aim to support local wines and stabilize the industry.

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NEW TARIFFS THREATEN EUROPE'S WINEMAKERS

The wine industry, showing signs of recovery, faces potential setbacks from a possible second Trump presidency and looming Chinese tariffs on European imports. Trump has pledged new tariffs, including a 10% levy on all imports and 60% on Chinese goods, which historically raised prices and hurt GDP. During Trump's previous term, tariffs on European wines led to significant declines in exports to the U.S. and impacted the restaurant industry. Concurrently, China threatens tariffs on European wines, recalling the severe impact of its tariffs on Australian wine, which devastated Australian exports. Industry insiders are cautious about commenting on these potential crises but acknowledge the challenges tariffs pose, especially as costs for winemakers have surged. The industry, still recovering from recent upheavals, is likely strategizing for these possible disruptions, emphasizing the need to be priced competitively and have compelling narratives to succeed in a saturated market.

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AN EMBARRASSING NUMBER OF WINE DRINKERS BELIEVE ROSÉ IS MADE BY MIXING RED AND WHITE

Rosé wine, typically made from red grapes, derives its color and flavor from early harvesting and brief skin contact with the juice. This wine can also result from the 'saignée' method during red winemaking. In the EU, blending red and white wines to make rosé is prohibited, except for rosé champagne. According to an M&S poll, many misconceptions about rosé and other wines persist. Nearly half of rosé drinkers serve it at the wrong temperature; it should be between 7–13°C, and removing it from the fridge 15 minutes before serving is recommended. Despite beliefs to the contrary, adding ice cubes to rosé on hot days is acceptable. Additionally, misconceptions about wine include that red wine should never be refrigerated and that wine quality is determined by packaging. The study highlights that paler rosé isn't necessarily better quality, some red wines benefit from chilling, and wine in cans or boxes can be as good as bottled wine.

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WINE REGION OF THE WEEK: VENETO, ITALY

Veneto, slightly smaller than Italy's major wine regions like Piedmont and Tuscany, surpasses them in wine production. Geographically and culturally, it serves as a bridge between Italy's alpine, Germano-Slavic north and the warmer, drier south. Historically overshadowed by Sicily and Puglia, Veneto emerged in the latter 20th century as a dominant force in Italian winemaking. Famous for wines like Valpolicella, Amarone, Soave, and Prosecco, Veneto offers a diverse portfolio ranging from fruity reds to refreshing whites and sparkling varieties. Despite initial concerns about vineyard quality, over 25 percent of Veneto's wines now carry DOC/DOCG designations, reflecting its rise in global wine acclaim.

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GRAPE OF THE WEEK: GARGANEGA

Garganega, the prominent white grape of Veneto used in Soave and Gambellara wines, was revealed through DNA profiling to be identical to Grecanico Dorato, a grape widely cultivated in Sicily. Despite their geographical separation of 1000 kilometers, both regions collectively cultivate over 11,000 hectares of Garganega vines, making it one of Italy's most extensively planted varieties. Whether produced in Veneto or Sicily, Garganega wines are renowned for their aromas of peach blossom, almond, apricot, and baked golden apples. While traditionally known for dry wines, Garganega also excels in producing sweet wines, particularly in the recioto style from Soave and Gambellara. These wines are characterized by rich textures and concentrated aromas of honey, candied lemon peel, tropical fruits, and sweet spices.

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