🍾 Is Cava The New Champagne?

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Happy Monday! We hope you have a great week. In this week’s DECORKED digest, you will read all about the Hong Kong wine market recovery, Douro’s excess supply, shielding soils, red wine ice cream, the UK’s wine production, and much more. Keep reading!

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INTERESTING THIS WEEK

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HOPE OF RECOVERY FOR HONG KONG WINE MARKET

At Vinexpo Asia, industry expert Rob Temple discussed the challenging state of Hong Kong's wine industry, highlighting its economic downturn and decreased consumer spending due to rising interest rates, demographic changes, and low tourism. Despite hopes for recovery expressed at Vinexpo Singapore last year, wine imports dropped by 40% from 2018. However, Temple and a panel of experts offered strategies for recovery, emphasizing a need for the industry to adapt by engaging consumers through targeted campaigns, retail, and innovative marketing. While the on-trade sector remains weak, there is optimism for eventual recovery driven by consumer-focused approaches and significant investments, such as Macallan's new flagship store in Hong Kong.

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THE SHADY BUSINESS OF SHIELDING SOILS

In response to global warming, winemakers are emphasizing soil protection alongside shading grapes. Michel Gassier of Domaine Gassier highlights that underground climate is crucial for vine vitality, as cooler soil maintains acidity, reduces vine stress, and preserves fertility. Chiara De Iulis Pepe of Emidio Pepe and Federico De Cerchio of Famiglia De Cerchio Wine Group use traditional pergola training to shade vines and soils, preventing evaporation and heat stress. Various methods, like cover crops and no-till farming, are employed to create a favorable microclimate. These techniques improve soil health, enhance vine growth, and result in higher-quality wines with balanced flavors and acidity.

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THE UK NOW BOASTS MORE THAN 1,000 VINEYARDS

In 2023, English and Welsh wine producers sold a record 8.8 million bottles, marking a 10% increase from the previous year. The industry registered 87 new vineyards, bringing the total to 1,030, solidifying its position as the UK's fastest-growing agricultural sector. Despite a decline in overall UK wine consumption, the area under vine expanded by 123% over the past decade to 4,209 hectares, with 221 wineries now operational. Production in 2023 reached 21.6 million bottles, a 77% rise from 2022, with 76% being sparkling wine. Sales channels include supermarkets, bars, restaurants, cellar door sales, online, exports, and specialist merchants. WineGB's CEO Nicola Bates anticipates continued growth, attributing it to sustainable production practices and increasing consumer confidence.

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EXCESS DOURO WINE SUPPLY

João Rebelo from the University of Trás-os-Montes and Alto Douro attributes the Douro wine crisis to excess supply, not overproduction. His study highlights market imbalances from increased production and imports, mainly from Spain, and shifting consumer preferences for lighter wines. The Douro region must adapt its production and transition to a regional wine commission model. Proposed measures include crisis distillation, storage support, green harvesting, and financial aid for low-productivity vineyards. Rebelo plans to submit these recommendations to government ministries.

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SERBIA-CHINA FTA SLASHES TARIFFS ON SERBIAN WINE

The FTA between China and Serbia, effective from 1 July 2023, eliminates tariffs on 90% of taxable goods. Serbian wine tariffs will be reduced by 20% annually, reaching zero in five years. Currently, China imposes an 11.2% tariff on small-packaged and sparkling wines, compared to the typical 14% rate. Despite zero tariffs, a 13% value-added tax and a 10% consumption tax on wine remain. Serbia has 20,100 hectares of vineyards, primarily white wine varieties, which are increasingly popular in China. Over 60% of taxable goods will benefit from immediate zero tariffs, including electric generators, motors, tires, beef, and nuts.

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WILL CAVA BECOME THE NEW CHAMPAGNE?

Cava Discovery Week aims to showcase Cava's diversity in regions, altitudes, grape varieties, soils, and wine profiles, reflecting recent changes in the sector. Salvatore Castano noted Cava D.O.'s efforts to compete with Prosecco and Champagne, supported by the new segmentation strategy praised by the D.O.'s president, Javier Pagés. Sophie Manson from the PR agency Hopscotch Season highlighted growing interest from a diverse range of venues, including not only Spanish establishments but also gastronomic Japanese restaurants and 5-star hotels, making this year's event particularly exciting.

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IS RED WINE ICE CREAM THE SUMMER TREAT OF 2024?

Aldi offers a recipe for homemade red wine ice cream, using a bottle of red wine, golden caster sugar, double cream, full-fat milk, egg yolks, and vanilla extract, with the wine reduced to 285ml. A Reddit user described their attempt at making red wine ice cream, noting an undesirable yeast flavor. Another user suggested the type of wine, like Shiraz or Merlot, might affect the outcome. While some found red wine ice cream unpalatable, a white wine sorbet with pear was praised. Others recommend using Port for a sweeter version of the ice cream.

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WINE REGION OF THE WEEK: VALAIS, SWITZERLAND

The Valais is Switzerland's largest wine region, producing about one-third of the country's wine. It spans around 4,800 hectares along the Rhône river valley, with vineyards on steep slopes benefiting from the warm, dry fohn wind. This challenging terrain provides excellent drainage and sunlight exposure. Labels often include both grape variety and commune names, such as "Amigne de Vétroz" or "Fendant de Sion," if at least 85% of the grapes come from that area. Valais also has 12 Grand Cru vineyard areas with specific grape varieties and production restrictions.

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GRAPE OF THE WEEK: CHASSELAS

Chasselas is Switzerland's most significant white grape, especially prevalent in the Vaud region. It ripens early and thrives on the cool alpine slopes, though it can be overly vigorous if not controlled. While Chasselas wines can appear neutral, the best examples are complex with fruity, floral, and mineral notes, and age well, developing honeyed and nutty flavors. Originating from the shores of Lake Geneva, Chasselas has been grown in Switzerland for at least 500 years. Known as Fendant in the 1700s, the name describes how the grapes split rather than crush when pressed. Chasselas is also grown in France, Germany, Austria, North Africa, and North America, though it's often undervalued outside Switzerland.

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