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💥 China Lifts Wine Tariffs

💥 China Lifts Wine Tariffs

In this week’s DECORKED digest you will read all about Drizly’s downfall, China lifting its wine tariffs, new industry risks, wine storage, Bordeaux facts, and much more. Keep reading!

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Happy Sunday! We hope you had a great week. In this week’s DECORKED digest, you will read all about Drizly’s downfall, China lifting its wine tariffs, new industry risks, wine storage, Bordeaux facts, and much more. Keep reading!

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

THE RISE AND FALL OF DRIZLY, THE ALCOHOL DELIVERY APP

Drizly, a prominent player in US alcohol delivery, was acquired by Uber in 2021 for $1.1 billion. It pioneered third-party alcohol delivery, but after the acquisition, it was integrated into Uber Eats, disappointing a number customers. Despite initial success, Drizly faced many challenges, such as thin profit margins, competition, and a data breach in 2020. The pandemic saw significant growth in Drizly's business, but it also highlighted issues with delivery guarantees and fees. These setbacks led to Federal Trade Commission intervention in 2023, mandating data security upgrades and data deletion not essential for service provision.

HOW TO STORE WINE — AND KNOW WHEN IT MATTERS

The common saying "like wine, we get better with age" doesn't always apply practically, as most wines are consumed shortly after purchase. However, some wines benefit from aging for special occasions. Proper storage, considering factors like temperature, light, humidity, and vibration, is crucial. Enthusiasts of high-end wines should invest in sophisticated storage, while casual enthusiasts can suffice with a cool, dark space. Despite imperfect storage, fine wines can improve with age, emphasizing the importance of enjoying them rather than waiting for the perfect moment.

FRESH SCIENTIFIC STUDY HIGHLIGHTS RISKS TO WINE GROWING REGIONS

A recent scientific report highlights the ongoing impact of climate change on traditional wine-growing regions, warning that rising temperatures could endanger 90% of these areas by the end of the century due to increased drought and heatwaves. While warmer temperatures are creating new wine regions in northerly areas, current producers may need to adapt plant varieties and management practices to mitigate warming effects. However, these adaptations might not be sufficient to maintain economically viable production, necessitating further research into the economic impacts of climate change. The report also warns of severe weather events like hailstorms affecting crops, with some regions already experiencing significant losses. Despite potential benefits for certain areas, expanding viticulture must consider environmental impacts and resource consumption.

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CHINA LIFTS AUSTRALIAN WINE TARIFFS AS RELATIONS IMPROVE

China has decided to remove steep tariffs on Australian wine, imposed over three years ago during a diplomatic dispute. This move signifies improving relations between the two countries. The tariffs, initially imposed in 2020 alongside other trade barriers, greatly affected Australian wine exports to China. As relations have improved, China has been gradually removing trade hurdles on various Australian goods, raising hopes for the removal of wine tariffs. The decision to lift tariffs comes as China perceives them as no longer necessary due to changes in its wine market. Australian wines had previously enjoyed tariff advantages under a free trade agreement but suffered a significant decline in Chinese imports following the imposition of tariffs. Australia had lodged a complaint with the WTO over the tariffs. Treasury Wine Estates, a top Australian winemaker, has welcomed the tariff removal and plans to expand sales efforts in China. CEO Tim Ford sees this as a positive development for both the company and the Australian wine industry.

DID THE IRISH INVENT BORDEAUX WINE?

In his latest work, history professor and wine expert Charles Ludington suggests that the Irish may have played a significant role in the creation of Bordeaux grand cru clarets. He notes that economic, political, and religious factors drove many Irish people out of their homeland in the late 17th century. Irish merchants in Bordeaux played a crucial role in distributing Bordeaux wines, particularly to the elite markets in Britain and Ireland. The story highlights the enduring connection between Ireland and Bordeaux, with families like the Bartons maintaining ties for over three centuries.

IRRIGATING AND SPRAYING VINES WITH WATER FROM THE WINERY

The French Vine Institute in South-West France has received funding to conduct experiments aimed at helping farms reuse wastewater from wineries and collect rainwater. These experiments will assess the health risks of reusing treated winery water and rainwater for various purposes like vine irrigation and equipment cleaning. The institute plans to analyze samples to ensure water types do not affect treatment efficacy. However, approval is pending for water reuse in cleaning winery floors and tanks, despite being considered the most practical approach. A new decree is expected to simplify the approval process.

90% OF SOME OF THE WORLD'S TRADITIONAL WINE REGIONS COULD BE GONE IN DECADES

Traditional wine regions around the world, including Europe and Southern California, face the risk of disappearing due to climate change, threatening beloved wine varieties. Rising temperatures and extreme weather events are altering conditions necessary for grape cultivation. By the end of the century, about 90% of these regions could be at risk. However, there is potential for new wine regions to emerge, but success depends on how temperatures rise and environmental preservation efforts. Adaptation is crucial for the wine industry to thrive amidst changing conditions, but current efforts to combat climate change are deemed inadequate. Flexibility and adaptation are essential for the future of global wine production.

WINE REGION OF THE WEEK: ORANGE RIVER, SOUTH AFRICA

The Orange River, located in the Northern Cape of South Africa, is the country's northernmost wine-producing region, situated 650 kilometers north of Cape Town. Primarily known for bulk wine production, it cultivates predominantly white grape varieties such as Chenin Blanc, Colombard, and Hanepoot, alongside an increasing number of reds like Cabernet Sauvignon, Pinotage, and Shiraz. Growers carefully manage vineyards to mitigate the harsh climate, utilizing techniques like overhead trellising and canopy management for shade and employing drip and flood irrigation from the abundant river source. The region's desert-like soil, rich in gravel, provides adequate drainage and nutrients. While initially used for raisin production in the early 20th century, Orange River transitioned to winemaking in the 1960s with advancements in irrigation technology. Today, it hosts the largest wine cooperative in the southern hemisphere, Orange River Cellars, which harvests approximately 140,000 tons of grapes annually.

GRAPE OF THE WEEK:MUSCAT OF ALEXANDRIA

Muscat of Alexandria, an ancient grape variety often overshadowed by its more aromatic cousin, Muscat Blanc à Petits Grains, is utilized for both table grapes and wine production. While it generally remains less distinguished, there are select wine regions worldwide that produce high-quality sweet or fortified wines from this grape. Some notable regions include Rutherglen in Australia, Pantelleria in the Mediterranean, Setubal in Portugal, and Malaga in Spain. Muscat of Alexandria is also used in Jerez to produce Moscatel sherries. Although predominantly used for blending in California and appearing in small quantities in various South African regions, Tunisia stands out as an exception, producing dry white and rosé wines from this variety.

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