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Happy Sunday! Hope you’ve had a wonderful week! We’ve been exploring New Zealand this week, as you will find out in the news section below. Keep reading!

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INTERESTING THIS WEEK

📉 New Zealand wine production is down 6% following Cyclone Gabrielle READ HERE

0️⃣ Nonalcoholic Wines: Emerging Innovators READ HERE

🍻 Older adults are drinking more in the US READ HERE

🇬🇷 Inside the evolution of Crete’s wine industry READ HERE

💼 How to land your first sommelier gig? READ HERE

🍷 The oldest wine in the world READ HERE

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📌 SIP APP - Experience the future of wine collection management with Sip! This revolutionary app, designed by an indie developer and a passionate wine connoisseur, digitizes your wine cellar, allowing you to catalog, search, and manage your prized collection with unparalleled ease. DOWNLOAD NOW for FREE (available in the Apple Appstore)

COULD ‘RAW BEER’ REVOLUTIONISE BREWING?

Cool Cousin Brewing has pioneered a new brewing method called "raw beer," using unmalted instead of malted barley, aiming for a more eco-friendly brewing process. Located in New York, this innovation reportedly conserves water and CO2 by bypassing the traditional malting stage. They utilize raw barley and an exogenous enzyme in the mash to produce wort. John Midgley, the CEO, claims this approach saves 700 milliliters of water and 32 grams of CO2 per liter of beer. The resultant beer, reminiscent of a German-style Kolsch, is likened to an electric car in terms of resource efficiency. Its unique taste has garnered attention, with Michelin-starred restaurant Blue Hill at Stone Barns being its first customer. The beer uses locally sourced barley and New York-grown hops of German lineage. Currently available only in New York, there are plans to expand, maintaining the local sourcing ethos.

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THE SCIENCE BEHIND NOBLE ROT WINES

Botrytis cinerea, commonly known as noble rot, is a fungus that can either devastate grape crops or contribute to the production of some of the world's most sought-after wines. While most farmers view it as a threat, under the right conditions, winemakers see it as invaluable. Wines like Sauternes and Tokaji are products of botrytis-affected grapes. The fungus thrives in humid environments, with temperatures between 12 and 25 degrees Celsius. The ideal conditions for noble rot to develop involve a combination of morning fog followed by daytime sunshine. This balance between wet and dry conditions allows grapes to resist the fungus. Dr. Dario Cantù's research indicates that grapes respond to botrytis similarly to drought, losing up to 60% of their weight and concentrating the juice's sugar content. The fungus also affects the wine's flavor, adding complexity and intensity. Additionally, botrytis ensures that wines like Sauternes and Tokaji age gracefully, making them timeless treasures in the wine world.

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SNOOP DOGG ON BREAKING INTO THE RULE-BREAKING WINE BUSINESS

Over the past 30 years, Snoop Dogg has diversified his brand beyond music, venturing into various industries including the wine business. His wine brand, "Cali by Snoop," is a collaboration with Australian wine brand 19 Crimes. Launched in April 2020 with the "Snoop Cali Red" bottle, the wine blend consists of 65% Petite Syrah, 30% Zinfandel, and 5% Merlot from Lodi, California, priced at $12 per bottle. Despite the celebrity branding, the wine has been recognized for its quality and taste. Snoop describes the wine as versatile, pairing well with various foods, especially BBQ dishes. The brand's success has surpassed initial sales expectations, with the company achieving its 12-month sales target in just six weeks. Following the success of Cali Red, the brand expanded into the UK market and introduced "Cali Rosé." Snoop emphasizes the wine's accessibility, aiming to make it relatable without the pretentiousness often associated with the wine industry. He hints at future releases, including white and sparkling wines, showcasing his commitment to the brand amidst challenges in the wine sector.

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GEORGIAN WINE PRODUCERS LOSE UP TO 100% OF THEIR VINES IN STORMS AFFECTING 4,600HA

On September 2, severe hailstorms hit Kakheti, Georgia's primary wine-producing region, responsible for approximately 80% of the nation's wine output. Initial assessments indicate that the storms impacted around 4,600ha of the region's total 33,500ha. Fifteen villages in the area suffered significant losses, with 80-100% of their crops, which were nearing harvest in about 10-14 days, being destroyed. The hailstones, comparable in size to golf balls, caused extensive damage, shattering car windshields and building windows. Vladimer Kublashvili, the general manager of Winery Khareba, expressed concerns about not being able to produce wine from their prime Saperavi vineyards in Kakheti. However, he acknowledged their fortune in also having vineyards in the unaffected Imereti region in western Georgia. Due to the unavailability of hail damage insurance in Georgia during August and September, many producers might have to depend on government assistance. Kublashvili, upon hearing about the storms, began the harvest almost two weeks ahead of schedule, realizing that the collected grapes would only be suitable for distillation.

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NEW ZEALAND WINE EXPORTS SURGE BY A RECORD 23%

New Zealand wine exports have seen a record 23% growth over the past year, reaching NZ$2.4bn (£1.14bn) by 30 June 2023. This significant increase is largely driven by the global demand for New Zealand's Sauvignon Blanc. The U.S. remains the primary export market, with sales growing by 25% to NZ$870m. A new UK-New Zealand free trade agreement has further boosted the industry by removing trade barriers on wine shipments. However, challenges like a 6% decline in the 2023 harvest due to Cyclone Gabrielle and the looming threat of climate change pose concerns for the future. Despite these challenges, the resurgence of tourism and easing of labor shortages post-Covid-19 have brought optimism to the industry.

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WHO WILL SURVIVE THE ERA OF THE PRICE RISE?

Major drinks companies, including LVMH’s Moët Hennessy, Diageo, and Campari, have raised prices to protect margins against rising costs. Pernod Ricard revealed that 80% of its 13% sales growth for the year ending June 2023 came from premiumization and price hikes. In contrast, Brown-Forman, the maker of Jack Daniel’s, has chosen a gentler pricing strategy, targeting consistent 2-3% annual increases. This approach led to short-term investor disappointment, but CEO Lawson Whiting remains optimistic. Brown-Forman's diversification efforts, such as the New Mix RTD beverages and the El Jimador Tequila brand, have shown positive growth. Additionally, the introduction of the Jack Daniel’s & Coca-Cola RTD has been successful in various markets. Brown-Forman aims for a balance between volume and pricing, focusing on long-term growth without alienating consumers.

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WHY PERGOLA VINE TRAINING IS ON THE RISE

Wine producers are increasingly adopting the ancient pergola vine training technique to address climatic extremes and labor shortages. Italy’s newest Master of Wine, Andrea Lonardi, highlighted this trend during a discussion in London. Lonardi, who leads Bertani Vineyards, noted that pergolas, or high-trained, horizontal vine training systems, are gaining traction not only in Italy but globally. Pergolas offer shade for grape bunches, reducing sunburn and ensuring slower ripening. This technique demands less labor compared to vertical shoot positioning (VSP) systems, which require intensive canopy management. Additionally, pergolas provide shade for workers, enhancing their working conditions. Lonardi emphasized the need for sustainable labor practices, ensuring permanent jobs and quality of life for vineyard workers. However, he cautioned that pergolas might not be suitable for producing high-concentration wines. The technique's benefits include higher anthocyanin levels in grapes and protection against overripeness.

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HOW MUCH IS THE NEW ZEALAND WINE BUSINESS WORTH?

Despite challenges like Cyclone Gabrielle, which caused NZ$13.5 billion ($8.42 billion USD) in damages and a 6% drop in the 2023 vintage, New Zealand's wine industry is flourishing. This growth is attributed to the higher prices set by New Zealand wine producers and the consumers' willingness to pay. The country experienced a significant 23% increase in value by June 2023. New Zealand Winegrowers' latest accounts indicate an operating income of NZ$21.7 million ($13.54 million USD) for the wine trade. Breakdowns include NZ$8.1m ($5.05 million USD) from wine levy, NZ$4.5m ($2.8 million USD) from grape levy, and NZ$0.6m ($0.37 million USD) from marketing. Biosecurity contributed around NZ$1m ($0.62 million USD). The wine trade boasts assets and reserves worth NZ$14.3m ($8.91 million USD), including NZ$4.8 million ($2.99 million USD) in winery equipment. The country also invested NZ$1.3m ($0.81 million USD) in renewing its Geographical Indications. Notably, New Zealand is highly export-focused, with nearly 90% of its wine sales made internationally.

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WINE REGION OF THE WEEK: MARLBOROUGH, NEW ZEALAND

Marlborough is New Zealand's premier wine region, renowned for its vibrant Sauvignon Blanc wines. Located at the northeastern tip of the South Island, it boasts over 500 growers and produces over 75% of New Zealand's wine. The region covers an area of 27,800 hectares, with Sauvignon Blanc dominating, accounting for over 80% of the vineyard surface area and more than 85% of production. This grape variety gained global recognition in the 1980s and 1990s, with Marlborough's version characterized by intense flavors of green pepper and gooseberry. The region also produces other white wines like Chardonnay, Pinot Gris, and Riesling, and reds, notably Pinot Noir. Marlborough's growing conditions, marked by sea breezes and a significant diurnal temperature variation, contribute to the grapes' expressive character. The wine industry here is known for its cooperative spirit, with several large contract winemaking facilities aiding flexibility and collaboration. The region's wine history dates back to the 1870s, but commercial-scale viticulture began in the 1970s, with rapid expansion in the 1980s.

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GRAPE OF THE WEEK: SAUVIGNON BLANC

New Zealand, especially the Marlborough region, has revolutionized the global perception of Sauvignon Blanc. From its inception in the 1980s, Marlborough Sauvignon Blanc achieved global recognition within a decade, marking one of the wine world's most dramatic success stories. These wines are distinct, with aromas often described as gooseberries, cat's pee, grapefruit, blackberry leaf, and passionfruit. Famously known as "Savvy" in New Zealand, this wine has garnered a vast international market, spanning from North America to Europe and Asia. Accounting for a significant portion of New Zealand's wine exports, the production emphasizes high yields, fermentation in stainless steel, and retention of the grape's natural acidity. Interestingly, the original plant material for Marlborough's Sauvignon Blanc can be traced back to France's top Sauternes estate, Château d'Yquem, via Australia and the University of California, Davis.

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