Showing posts with label Air of Optimism. Show all posts
Showing posts with label Air of Optimism. Show all posts

Sunday, 25 September 2016

25.9.16 A New Era for Sherry

This is an optimistic article by Á Espejo published in yesterday’s Diario de Jerez

The bodegas are leaving behind long decades of crisis marked by high volumes and low prices, and a new cycle of growth is underway with a return to the origins and with the premise of not repeating the mistakes of the past.

It can be felt in the atmosphere. The bodegas are getting back into their stride and looking forward eagerly and hopefully to a new era for the wine of Jerez which looks like being one of expansion. But unlike the boom of the 1970s, which was a period of massive production and unsustainably low prices, they are now focusing on quality and added value, boosted by wine tourism and gastronomy which are helping the renaissance of a wine which looks back proudly to the origins which gave it its unique identity.

This hopeful new dawn full of opportunity is also catching on in the areas of public administration and finance which are committed to the common cause of repositioning Sherry to the highest ranking after a long period lost in the desert, a prolonged crisis from which at last light can be seen at the end of the tunnel. However, great care must be taken to show that lessons have been learned for the avoidance of the mistakes of the past of which there only too many examples.



These are the general conclusions reached at the “Editor’s Breakfast”, a debate held this week at the offices of the Diario de Jerez titled “A New Era for Sherry” sponsored by Banco Sabadell. The highly qualified people present were the director of the Consejo Regulador, César Saldaña, two oenologists: Antonio Flores of González Byass and Manuel Valcárcel of Fundador, the Junta’s director general for industry and the agro-alimentary chain Rosa Ríos, the director of business banking at Sabadell, Mauricio González, and of course the director of Diario de Jerez, Rafael Navas.

During the debate it was pointed out that Sherry has reached a point where the increase in value has compensated for the fall in sales volume. This loss corresponds to the cheap buyers’ own brands (BOB) which do nothing for the reputation of Sherry, and which are being dropped in order to focus on the high quality bodega brands.

According to César Saldaña there is now a proper balance in production, fruit of the painful restructuring of the trade, and he stressed the need to understand the position Sherry is now in so as to make the right decisions and reinvest in the future. The oenologists agreed on the importance of the land, the various historic pagos, which are coming back into fashion but, as César Saldaña said, the trade had abandoned the quality they offered for the standard fare offered by the solera system. “Sherry is made in the vineyard, but for too long we have been selling wine made in the bodega”, he said, pointing out the fundamental role the vineyard plays on the stage of quality winemaking.



The winemakers agreed, but Antonio Flores made the point that while a return to focusing on the pagos is vital, the bodega also has a role: Sherry IS made in the vineyard, but it is made great in the bodega. Manuel Valcárcel agreed, saying that Sherry is really two wines: the one made in the vineyard like everywhere else, but also the one produced in a bodega over very many years.

The bodegas are well aware that BOBs will be scrapped, and in fact González Byass, later followed by some others such as Fundador, stopped producing them a while back. But some will keep on producing them until demand finally drops, when new, younger, better off consumers who can be courted in the social networks and are prepared to travel to the region overtake the traditional consumers. The latter are still quite numerous, usually aged over 75 and to whom Sherry is more of a drink than a wine, but their numbers are naturally in decline. There is a third type of consumer: the occasional one, usually linked to the ferias and pilgrimages. They are quite stable consumers and can be grouped with the younger ones, whose numbers are growing unceasingly and to whom the Consejo is directing all its generic promotional efforts.

The professionals in the Sherry trade also point out the essential role played by education, and both the bodegas and the Consejo are heavily involved with this, as well as wine tourism and gastronomy, the fundamental pillars of the resurrection of Sherry. And it is working: the Sherry and Brandy Route of Jerez is the second most popular in Spain receiving over 400,000 visitors annually.

Rosa Ríos mentioned that the Junta de Andalucía is working with the Sherry trade by sharing out up to 4.2 million euros of EU funds from the Integrated Territories Initiative in support of wine tourism, and underlined the Junta’s support for the trade, which also has some 2 million euros in aid for promotion in third countries. She made the important point that “there is room to increase value, but we must commercialise better”. She said “the Junta is here to help, because the trade is dynamic, unique and a leading exporter, a road which started here centuries ago.”

The topic of Vinoble was discussed. The biennial wine fair has rather lost its way in recent years for lack of political and public support, but Rosa Ríos is prepared to wipe the slate clean and start again. Also discussed was the dynamic young breed of grower-winemakers who are producing such interesting wines from classic soils in the area but for regulatory reasons cannot get the support of the Consejo. The Consejo is not ruling out their future incorporation, however. Rosa Ríos expressed her willingness to collaborate in eliminating obstacles saying “if the current law isn’t working, then it should be changed.”



Monday, 26 November 2012

A Certain Optimism in Jerez


Sherry has a good opportunity to recover its lost prestige. The resurgence of interest in the wine and the elimination of excess production have brought an air of optimism to the trade. The bodegas, the growers, the institutions and wine experts all agree on this. Now is the chance to get out of the rut of being forgotten, to leave behind years of decadence and pessimism, of vine – pulling, abandoning vineyards, internal disputes and ruinous pricing and get back to the top where Sherry should always have been.

Sherry could be at a crossroads. Interest in the wine is increasing, albeit in export markets, particularly the English speaking ones, and especially the USA. Grape and must prices are rising, growers are seeing longer supply contracts, and the cooperatives are able to sell their produce. The relations between producers and exporters are more cordial than they have been for a long time, things are running smoothly and there is some profit to be made.

There remains a lot to be done however. Jose Ramon Estevez says a change of mentality is needed to ensure that the growers can make a reasonable living and be incentivised to go for quality. He is among the more optimistic and practices what he preaches. Asevi and Aecovi have applauded his (among others’) attitude in helping the growers in hard times. They also cite Barbadillo – one of the biggest buyers because of their best-selling table wine Castillo de San Diego– Lustau and Beam.  The coops at Trebujena have a good friend in Williams & Humbert, especially after the latter broke the long-established link with Coop Virgen de la Caridad in Sanlucar when it was acquired by Nueva Rumasa. Jesus Medina,CEO of Grupo Medina , owners of W&H is also optimistic. He says the important thing is that everyone makes some money, although ex bodega prices will have to rise.

Officials at the Consejo Regulador and at Fedejerez (the bodega association) also see cause for optimism, but warn to avoid the pendulum effect. The Consejo president, Beltran Domecq has been much involved with promoting Sherry, with the Copa de Jerez and tastings in various countries, but he is fed up with the lack of financial resources to really promote Sherry. Others, perhaps with a slightly more pragmatic view believe that volumes should be kept low and that Sherry should be promoted as a “fine” wine. To the connoisseurs it is, but far too many consumers drink bulk plonk from own-label brands blended down to a price. The trade needs to get away from bulk.

Jesus Barquin, co-founder of Equipo Navazos believes the mistake was the “factory mentality” wine and getting too disconnected from the vineyards. Sherry should be a vineyard-driven wine, not some sort of homogenous commodity like Coca Cola. Jose Penin, founder of the Guia Penin, is also critical about affairs have been run in Jerez. Carmen Romero, manager of Aecovi  also says that Sherry must be vineyard driven, and applauds those who have seen the light. Aecovi took the bold step of marketing their own Sherries to ensure profitability for the Coop members. It should be borne in mind that the cheapest grapes in Spain are those of Jerez, and there is room for improvement, however if Sherry keeps to the current path there may be even more room for optimism.