22.12.17 The Worst is Over; Barbadillo Invests in Tech

The bodegas association, Fedejerez, celebrated its 2017 general assembly yesterday in a mood of optimism, if not triumphalism. Member bodegas are now seeing a future in the Sherry business as things have changed greatly in recent times, after very difficult years during which many thought of giving up. The feeling is that the worst is over now, and Sherry is back riding the crest of a wave, a feeling shared by the bodegas and their president, Evaristo Babé. Among other topics discussed was a change in the strategy of generic promotion to fewer markets – just the most important ones – and directly towards consumers. While some bodegas prefer to do their own promotion, the differences are not great and Babé urged them to resolve them with business-like vision and without any politics. He said that Sherry is a marvellous patrimony and pointed out the good personal and business relations between bodegas and their shared vision for the future, but Jerez needs to change and since there is potential for increased employment, the necessary conditions for investment need to be in place. The assembly ended with a glass of Sherry at Bodegas Gutiérrez Colosía, attended by the Mayor of El Puerto de Santa María, the president and director of the Consejo Regulador and members of the Cádiz Confederation of Business among others.

(foto:diariodejerez)

Bodegas Barbadillo has implemented a new technology to monitor the condition of the vineyards. Using big data and artificial intelligence which provides information in real time, this helps decision making to obtain the best possible quality in the grapes. The technology is called Cultiva Decisiones and is supplied by Spanish company Seresco. It provides a huge amount of information from various sources, both public and private, along with sensors in the vineyard, drones and satellites. The information will be used to analyse factors such as humidity, rain and the risk of disease automatically. Information is both numerical and visual and this platform can even offer alerts and advice on fertilisation and when to harvest among other things, and information is available on PCs, mobiles and tablets. This will be useful in countering challenges like climate change and sustainability.  

Vineyard monitor - foto:vinetur)

    

24.11.16 Sherry Wants Same Tax Treatment as Other Spanish Wines

The Spanish government is desperately seeking to plug a hole in its finances of some 5.5 billion, and is seriously considering increased mortgage rates and a rise in alcohol tax among many other options. A tax rise would have severely negative effects on Jerez and Fedejerez paints a very gloomy picture as Sherry is already taxed at a higher rate than any other Spanish wine, and along with Jerez brandy, which accounts for 92% of Spanish brandy production, would be hit hard. What is more raising alcohol tax would hurt the hotel, bar and restaurant trade, the wine and brandy trade, and of course employment.

Fedejerez has joined forces with the Federación Española de Bebidas Espirituosas (FEBE) - which covers all alcoholic drinks and the various agrarian organisations, distributors, horeca etc. – to create a powerful lobby which will hopefully make the government think again. The presidents of Brandy de Jerez and FEBE, Evaristo Babé and Bosco Torremocha pointed out that the last time tax was increased on alcohol, in 2013, it proved counterproductive as government receipts decreased due to a loss of sales, particularly in horeca.

Babé totally rejected the idea of increased tax on brandy while Fedejerez is claiming that Sherry should be treated in the same way as Montilla-Moriles which is not subject to the higher tax rate despite containing much the same amount of alcohol – it is just that Sherry is fortified and Montilla is not. “These wines are table wines just like the rest. Over taxation produces reduced tax receipts and if the finance minister, Cristóbal Montoro, wants to increase income he should reduce public expenditure, and remember the economic importance of alcoholic drinks”.

Not increasing taxes could lead to a gentle rise in government receipts, which are currently about 20 billion euros. According to a study by Analistas Financieros Internacionales (AFI) increasing the tax would reduce those receipts by 46 million and leave 52,734 people out of work in the first year. Everyone is hoping the government sees sense.

The current Spanish rate of tax on Sherry is 55.53 euros per hectolitre, or 0.416 euros per bottle as opposed to table wines which bear a tax of 33.32 euros per hectolitre, or 0.25 euros per bottle. Both are, of course, subject to IVA (VAT). In the UK, excise duty on table wine is £2.08 per bottle and Sherry is £2.78 per bottle, again subject to VAT.

21.9.16 La Tapería Fundador; Fedejerez Responds to Unions

Bodegas Fundador has remodelled one of its bodegas as a gastronomic space, which opens today, with public access from Calle San Ildefonso. An inauguration event was held there yesterday, led by the bodega’s managing director Rafael Rendón and attended by Consejo director César Saldaña, president Beltrán Domecq and Brandy president Evaristo Babé. The tapería offers a wide range of tapas and menus matched to the firm’s Sherries and brandies; Harveys, Terry and Fundador, as well as an exciting range of cocktails. Fundador wants to promote the growing trend of accompanying food with brandy and prove that it is as versatile as Sherry, and they hope to attract the younger generation. This is only one of many innovations Fundador is working on in connection with wine tourism.

Fedejerez, the association of bodegas, has spoken out regarding the XXV Convenio de la Vid negotiations. They say they are quite open for discussion but that the unions have “distorted and manipulated” their proposals in the information given to the workforce and to the public. According to Fedejerez, far from suppressing length of service bonuses, they intend to consolidate them. They also dispute the union’s figures on part time workers, saying that over 80% of days worked were worked by people on fixed or stable contracts, and say that any part time work will be offered to those who have worked there at least 60 days in the past 2 years. Fedejerez denies wanting to reduce salaries for newly contracted staff but they will naturally be lower than those for experienced staff. No salary reduction will apply to part time staff. Work days and hours will be maintained and the bodegas will not impose working on weekends and holidays, furthermore they deny that they want to abolish leave for childbirth, deaths in the family, medical reasons etc. when in fact they have more generous proposals.

12.9.16 Industrial Action in Jerez? Global Fortified Masters

On Thursday the UGT and CCOO unions, representing workers in all aspects of the Sherry trade, and Fedejerez which represents the bodegas, will meet at the negotiating table to try and thrash out a new deal, but the workers are threatening strike action if Fedejerez does not soften the stance it has maintained since last month’s meeting failed to reach agreement. Strikes have happened before, like in 1982 and 1991, for example, but at least this time the harvest is done.

Every few years a contract, known as the Convenio de la Vid, is drawn up, and agreed by both sides. It can be varied by agreement however, and this happened in the last convenio of 2011-2015, when the workforce agreed to waive their annual pay rises as a gesture to help the bodegas through the world financial crisis. Now they want to reintroduce it but the bodegas are not keen, saying that some have gone out of business and that the crisis is not over yet.

Furthermore, Fedejerez wants to reduce starting pay for new staff and end extra payments for length of service, which could represent some 20% of the pay of a long-serving worker. The bodegas have also been accused of employing many more part timers. The unions say that the bodegas are making good profits and are in good shape, especially with all the recent Asian investment, and will continue to prepare for strike action while not abandoning the possibility of negotiation.

Drinks Business Magazine is seeking final entries for the III Global Fortified Masters competition. Wines will be blind tasted by a panel of Masters of Wine. They are encouraging small and medium-sized producers to enter and show how well they can compete with the big firms. The deadline for entries is September 30. Results will be published in the magazine, online, and in social media.

29.1.16 Manzanilla Rebels Call for Dialogue

The Association of Artisan Bodegas of Sanlúcar has issued a communiqué in which they outline their position in the BIB conflict, question the legality of the proposal to modify the regulations, and call for dialogue at the Consejo. After the Junta said BIB could be legal if it was sold only to horeca (hotel, restaurant, catering), the Consejo change the rules, prompting the association to pose a few questions.

Firstly they point out that they had “right from the start tried to maintain dialogue with the Consejo in the belief that what they were doing was legal. The dialogue was kept up with growers, cooperatives etc, but Fedejerez refused to talk”. According to the association the Junta’s report “confirmed that what they were doing was right and legal and that consequently BIB is perfectly legal for certain types of sale such as horeca”.

They also complain that “members of the Consejo did not know about the Junta’s report till the very moment the plenary began on Tuesday, at which Fedejerez produced their proposal to modify the rules to prohibit BIB, which is absolutely legal, even now”. Representatives of the association held a meeting with the Consejo Director 24 hours before the plenary at which “we asked how it was possible that a proposal to modify the rules could be presented when nobody would see the Junta’s report till the start of the plenary. Given that the presentation of the proposal was manifestly irregular, we asked that it be withdrawn”.

The answer was “no” and the proposal remained on the agenda, so at the end of the meeting the association’s representatives gave him a note which “confirmed the irregularities being committed in case the matter were put to a vote. At no time did the association try to coerce or restrict the rights of members of the plenary, but only make them aware via the report that this was an irregular proposal, unjustified, illegal and from a dominant position.” The association says that the Sherry zone needs dialogue and innovative proposals to reactivate things and put an end to the “bodega cemetery” image which has arisen over recent years, and all that is a consequence of conservative policies and a concentration of power to the detriment of the sector as a whole.

The association admits that their “sales as a percentage of the whole DO are small but we represent 80% of the Manzanilla bodegas of Sanlúcar, and quality cannot be measured in terms of scale, but by the artisan process. Members of our association were never rebels but acted reasonably, and that reason was supported by the Junta, and now there are attempts to deny it to us.”

Finally they call for dialogue, “we are all the Consejo Regulador and reason is not a question of taste or preference, especially when the image of quality for the consumer should be the contents, not the packaging, and we fulfil that.”

22.1.16 Events in Sanlúcar

The three largest bodegas in Sanlúcar have made their view of BIB clear. Barbadillo, La Guita and Delgado Zuleta, which between them sell 70% of all Manzanilla, believe that this container harms the image of the wine and its international prestige which have taken centuries to achieve. In a document published today the three firms point out the loss of investment and jobs implied by BIB and ask for meaningful dialogue to seek agreement.

They go on to say that BIB is illegal, and that while the Junta says it could be legal in certain circumstances, there has been no proper resolution of the denunciations by the Consejo for the sale of Manzanilla in BIB by members of the Association of Artisan Bodegas of Sanlúcar. They say that they comply with the law and ask that everyone else does too without getting into arguments about the pros and cons of the BIB versus the garrafa, which is legal. The point out that not only is the use of BIB illegal but it has been refused by the Consejo on three occasions.

According to the three, “the flagrant use of BIB is to fly in the face of market reality and the potential of Manzanilla to generate wealth and added value. It will have a bad effect on employment in Sanlúcar and hit financial resources for investment in quality, vineyards, research and development, infrastructures and parallel industries, affecting the business fabric of the entire region. It would mean that money invested in bottling lines would have been wasted and staff would have to be laid off”. BIBs have been on the market for over 20 years and are associated with poor quality and image, the very things the three bodegas have been doing their best to avoid.

Four bodegas in Sanlúcar have jointly cancelled their membership of Fedejerez. In a communication to the president Evaristo Babé they said they felt they lacked representation and their interests were not defended. Hidalgo La Gitana, Miguel Sánchez Ayala, Juan Piñero and La Cigarrera, all members of the recently constituted Association of Artisan Bodegas of Sanlúcar, have mulled the matter over for some months. They are angry at Babé’s accusations and repeated denouncements both in the press and at the Consejo and at his lack of mediation.

12.12.15 Babé Re-elected Fedejerez President

At the final general assembly of Fedejerez this year Evaristo Babé has been re-elected president. In his speech to the organisation, which represents the vast majority of the bodegas, at a Christmas banquet held at the bodegas of Sánchez Romate, Evaristo thanked everyone for their support, despite having suggested he step down. He said that Fedejerez had developed in a spirit of optimism towards the future despite, with the exception of vinegar, sales being disappointing. He explained that there is great confidence in the future and that there are many ideas coming to the boil in the regeneration plan which Fedejerez is working on.

Evaristo babe (R) with Beltran Domecq

He mentioned the BIB rebels, saying that he had always been clear on the matter but they seemed to be losing direction, and he appealed for common sense to prevail and for them to reflect that this was not the way forward. He referred to the helplessness and frustration felt by the bodegas at the lack of diligence from the Junta to expedite sanctions on the rebels to avoid any further escalation of the matter. It is important that the rule of law is respected; agreements can be revised or not, but we cannot go forward if some follow the rules of the jungle without respecting the will of the majority.

On the subject of the arrival of Emperador, Babé who is also president of the Consejo Regulador for Brandy de Jerez, said that he had congratulated and welcomed Mr Tan because we recognise that this is good for Jerez, for the brands which, despite the crisis still maintain value to the companies. It is time to build the Brandy de Jerez brand so it will last and provide value to the bodegas which have been through such a crisis. The brand is an asset created by many people, and it is very satisfying to see that someone values it.

21.11.15 Junta Appeals for Dialogue

Junta vice president Manuel Jiménez Barrios who recently met the BIB rebels has appealed for dialogue and says that the confrontation will damage the image of the DO. He is not keen to take sides but the Junta will help bring the warring parties together round a table and assist with any dialogue. Only this way will the problem be solved and the achievements of the last 80 years be preserved.

The meeting in Sanlucar (foto:sanlucarbarrameda.tv)

While the Junta’s agriculture department is the higher authority, just proposing dialogue is not enough, and the BIB rebels feel they have some sort of legal support for launching Manzanilla in BIB. Fedejerez and the Consejo have asked for clarification of what they consider illegal. The rebels’ interpretation of the reglamento is that it is legal to sell Manzanilla in BIB to the hotel and catering trade, but Fedejerez disagrees and hasn’t the slightest intention of sitting down to discuss what it considers a breach of the rules of the DO.

2.11.15 Evaristo Babé Explains BIB Situation

In today’s Diario de Jerez Evaristo Babé, president of Fedejerez, outlines the situation as he sees it:

"The problem, which is really an internal matter and a mere storm in a teacup if you consider the really important problems facing the Sherry business, is that a small but vociferous minority of ten bodegas in Sanlúcar is illegally using BIB to sell declassified wine – for which they have been denounced – and now they are trying to use the DO Manzanilla. The regulations for the sale of Sherry and Manzanilla state that “DO wines for public consumption shall be in a container of glass or any other material which the Consejo might specify." The BIB is neither made from glass nor approved by the Consejo, so it cannot legally be used. Like it or not those are the regulations.

Of course they could seek to change the rules, but this would have to be done through the proper channels as established in legislation. So long as nobody seeks to change the rules, those already in force must be obeyed. Anyone who does not agree with the rules can always leave the DO as there is no requirement to belong.

Beltran Domecq and Evaristo Babe

What does not fit in a democracy is flagrant breaking of the rules and the responsible public administration not acting immediately to ensure the law is observed. Public administrations are obliged to do this by checking, verifying, investigating and inspecting any activity which might be necessary. Given the importance of this matter, the need for the Junta to act is fundamental. It is not just a question of mediating between who is breaking the law and who is not, though efforts have been made to achieve a negotiated solution, but of making the former comply.

It is also worth pointing out that the illegal and churlish press conferences called by a small group of bodegas are very seriously prejudicing the trade and in particular the image of the area’s DOs. This is very serious. The ten bodegas in question read out a manifesto making them look like victims in this and advocating a sort of “civil disobedience” like separatist politicians in Cataluña, yet they only represent about 4% of the Sherry trade and 20% of the Manzanilla trade. What about the rights of the 96% and 80% who obey the law completely? Let’s be serious and show some respect please.

Another point is that the non-compliance is also affecting the business of those who are complying, though they could seek damages, and they should not have to put up any longer with unfair competition. They pay their taxes upon which many jobs most certainly depend, and they feel let down by a minority who for months have been refusing to obey the law.

We need to get things back on course as soon as possible, to calm down the lawbreakers and get them to obey the law. It is also necessary for the Junta to take action to ensure this by prosecuting those who seem proud to break the law and stopping them from doing such damage to a free market and to those who obey the law."

31.10.15 “No Wine in BIB is Manzanilla”

Fedejerez and the Consejo have responded to yesterday’s announcement by the Manzanilla producers saying they will denounce those who sell these products which cannot have the DO. They warned consumers that without it there is no guarantee of the wine’s authenticity and quality.

President of Fedejerez, Evaristo Babé, spoke yesterday of the unacceptable and outrageous provocation of the Manzanilleros as much for the content as for the menacing tone of the message sent out by the 10 bodegas who announced that they would be selling DO Manzanilla in BIB despite the prohibition of this container ratified by a plenary at the Consejo. He said their posture showed a complete lack of respect for the institution to which they chose to belong. Rules are there to be obeyed; they can be changed, but always with respect for the law. He urged the Junta to deal with this “attack” as it would be worse if the DO had to.

“They can put a DO label on a BIB, but it is still not Manzanilla.” Babé warned consumers not to let themselves be deceived, as the Consejo is the only institution with the capacity to certify genuine Manzanilla. Putting it in perspective, the bodegas which have subscribed to selling Manzanilla in BIB only represent 25% of the Manzanilleros, the big firms have not, and so this only represents 4-5% of total Sherry sales.

For its part the Consejo agrees completely with the position of Fedejerez. Its director, César Saldaña said decisions taken at plenary meetings are adopted by a majority and they should be respected; disobedience is not the best way forward. Packaging is a matter for the Consejo, where any rule changes can be debated, and in his view the decision of the Manzanilleros does nothing but aggravate the situation. He pointed out that to sell a wine the label, which states the liquid content, has to be registered at the Consejo, and since BIB is not authorised neither labels nor precintas (official seals) which prove authenticity can be issued.

The sale of bulk wine is only permitted by the DO in garrafas (large glass containers). These are primarily intended for the tabancos, though Fedejerez wants to see garrafas banned as well. The Consejo is keeping a look out to see if Manzanilleros try and use garrafa labels for BIB which would be illegal as the capacities of garrafas are 4,8, and 18 litres while those for BIB are 5,10,and 15. Any infraction would be reported to theJunta’s agriculture department. If the Manzanilleros continue with their plan to sell DO Manzanilla in BIB the Consejo could seek their withdrawal from the register of bodegas in the DO, an extreme action which it is not contemplating for now, preferring dialogue.

30.10.15 Sanlúcar Bodegas: “We Won’t be Trampled on”

At yesterday’s press conference in Sanlúcar the majority (10) of the bodegas announced that they will go ahead with selling DO qualified Manzanilla in BIB despite the Opposition of the Consejo. The event was held in the bodega La Gitana and the speakers were Fermín Hidalgo, Francisco Yuste, both with bodegas of that name, and Carlos Garrido of Argüeso.

L-R: messrs. Hidalgo, Yuste, Garrido (fot:diariojerez)

They made their position clear: “After the complaints made by Fedejerez against the Sanlúcar bodegas who use BIB as an alternative packaging in place of the old garrafa and the prosecutions instructed by the Junta for supposed infractions of the rules as the Consejo sees it, the wine trade in Sanlúcar has decided to continue with the use of this modern and practical container for DO wines for public consumption, a container which in no way harms the wines’ organoleptic qualities and at the same time fulfils the requirements of the regulations. This fact means that from now on the bodegas will no longer feel obliged to declassify wine in this shameful way in order to sell it in BIB.”

These bodegas, who will shortly announce the constitution of a new professional association, maintain that “Manzanilla can no longer remain in the hands of a Consejo controlled by bodegas who do not share the legitimate interests of the Manzanilla producers.” This was a thinly veiled reference to Fedejerez.

(foto:sanlucardigital.es)

The decision to sell DO Manzanilla in BIB “is motivated not only by trends in the market and consumer demand which is causing ever more quality wine to be packaged in this modern and practical alternative to glass, but also by the search for innovative solutions to the stagnation and conservatism which the Sherry market suffers from and which is causing the constant degradation of the trade. Those who have been responsible for the continual disappearance of bodegas and vineyard do not have the moral right to talk about the image and future of the trade, those who by their mistakes have seen thousands of jobs lost, have been selling our wines abroad amongst the cheapest in the world, competing on price in supermarkets with other products like beer.”

Yuste asserted “We will not be trampled on,” and Hidalgo affirmed that “the Junta has expressed its total support against this flagrant attack which we are suffering.”

12.4.15 Fedejerez Repeats Warning Against Bag in Box

With the start of the feria season and the traditional huge increase in consumption, Fedejerez, the federation of bodegas, is warning against the use of Bag in Box (BIB) packaging for Sherry. They have set up a campaign to warn consumers that Sherry can only legally be sold in glass bottles, and that in no circumstances can any other form of packaging carry the Denominación de Origen (DO).

Fedejerez is pointing out the misleading nature of BIB and the grave economic consequences for the image of the genuine products of Jerez and Sanlúcar. In the rules of the Consejo, section H.4, it is made quite clear that Sherry shall be sold for direct consumption in glass or any other material the Consejo might authorise. Only glass has been authorised.

Although those who sell BIB have declassified the wine (ie they are not claiming DO), confusion is caused among consumers as the BIBs carry words and pictures which have been used historically in the commercialisation of Sherry. Consumers assume they are buying a genuine DO product when in reality it is a declassified Sherry or a wine from somewhere else such as Montilla or Huelva, where there are no controls on BIB. Fedejerez considers this as little short of fraud and unfair competition, as BIBs do not undergo the rigorous checks that Sherry must and are taking advantage of its worldwide prestige, earned over many years of investment.

The low price of BIBs is also a cause of concern: young wine is sold in cheap packaging which makes the bottled DO product look expensive. If consumers then opt for the cheaper version, sales of proper Sherry will fall leaving less money to invest in research, vineyards, promotion or wages for example, and ultimately, jobs. Smaller resources would make it more difficult to promote to younger people, de-seasonalise consumption and recuperate Sherry’s prestige.

At the end of the day, use of BIBs will not impress markets such as Japan or the USA which want top quality wines, in bottle and well promoted, something which can only be achieved by promoting bottled brands which give Sherry its prestigious image.

30.3.15 Sherry Boosts Promotion in Spain but Suffers Cuts in Public Funding

The generic promotion of Sherry will focus special attention on the domestic market this year, being the biggest market now, and practically the only one which did not register falling sales last year. The Consejo Regulador has already fine-tuned its promotional plan, basic criteria and priorities but is keeping in reserve €90,000 of its €1.5m budget for this fiscal year.

A further sum of around €300,000 of public money is being added, for the moment, but this is negligible when compared to that received in past campaigns in which grants would double the Consejo’s local funding. While staff at the Consejo are making every effort to obtain more grant money, they are up against public spending cuts, however there may be a ray of light from ICEX, the Government commercial export body. ICEX has money for promotion in Holland and Germany, two of the main European markets in which it wishes to make a push, and there will be a contest for agents to take charge of Sherry distribution in those countries.

The Consejo's generic labels (foto:verema)

Lacking the extra funding, the Consejo presented the basic thrust of the promotional plan to a plenary meeting on Thursday: €350,000 will be destined for the home market. Among the traditional export markets the UK, until recently the principal market, will still get a good chunk of the budget, as will the USA, a market which has shown strong growth in recent years especially for brands for which consumers will pay more. Holland and Germany buy more, cheaper Buyer’s Own Brands (BOB). Third countries, including Japan and Canada already have fixed budgetary amounts assisted by EU money.

It should be remembered that this year’s promotional budget has already increased thanks to higher contributions from the bodegas and the growers. The bodegas doubled their contribution to 2.5 céntimos per litre of wine sold, useful, but far from the 5 céntimos initially hoped for by Fedejerez. At the January plenary meeting at which this increase was approved, the Consejo was asked to present a promotional plan to cover the next 3 years, which if approved might lead to the 5 céntimos Fedejerez had hoped for.

The Bag-in-Box Debate

From an interesting article by Juan P Simó in yesterday's Diario de Jerez

The bag-in-box (BIB) is causing headaches for Fedejerez who defend glass as the only option.

How strange. Señor Fino's little sister Manzanilla is getting above herself. First, many years ago now, she outsold the all-powerful Fino San Patricio at the most profitable of all the Spanish ferias, the Feria de Abril in Sevilla. Now she is causing a stir over packaging and what is in that packaging. One is accustomed to opening the little tap on a BIB and seeing Manzanilla flowing out, but two days ago we came across a BIB whose contents were not Manzanilla, but mosto.

Manzanilla BIBs (foto: Diario de Jerez)

It doesn't stop there. Use of the new packaging also upsets the Consejo's annual sales figures by artificially reducing Denominación de Origen (DO) sales. In 2001 some enthusiastic Manzanilleros (Manzanilla producers) became interested in the new packaging. They de-classified part of their production which was therefore not DO Manzanilla and sold the wine in this package which is not permitted by the Consejo. Over the years, this initiative matured, like the wine and has now been very successful, really taking off in 2012 with a jump of some 500% to a million litres of de-classified "Manzanilla Type" wine. And all this because of the BIB, which other DO's had adopted without blinking for the increased sales against bottles. The Manzanilleros' gamble had been successful as the BIB is ideal for ferias and very popular in Scandinavia.

So what are the advantages of the BIB? They are many: they are more economical, more hygenic, conserve the wine better, keep costs down, are easier for distribution, are lighter and have a lower impact on the environment. Wine producers in Montilla and Huelva have adopted the BIB and now represent a potential threat to our little blonde Manzanilla. All this comes from a report to the Consejo itself which extolled the virtues of the BIB, but proposed its acceptance be restricted to the catering trade. A plenary meeting of the Consejo however knocked it back. Nowadays, BIBs of 3litres, 5 litres or more are to be found on sale in bodega shops, wine shops, cooperatives and even petrol stations at very accessible prices. They cannot, however use the word "Manzanilla" on the label even though it might be, and suggestive terms are used instead, such as "Hidalgo Fina", "Fina en Rama" or "Finísima".

Sanlucar Coop BIB (foto: solostocks.com)

Fedejerez president, Evaristo Babé, is sick of repeating the mantra that "Manzanilla is only Manzanilla if it is in a bottle which bears the seal of the Consejo. Anything else could deceive the consumer." And although BIB is in widespread demand, Babé maintains that its use poses a threat to the image of Manzanilla and represents the spear that could kill all the good promotional work. He has therefore asked for a change of mentality and for the abandonment of anything which lowers the image of Sherry, and to instead opt for quality: the glass bottle. Fedejerez sees the BIB as a factor which could unbalance the market, which is currently in good shape, with concurrent risks to employment and feels that all Sherry should be sold in bottle rather than bulk.

28.1.15 The Bodegas Double Promotion Contribution

At the plenary meeting of the Consejo yesterday the bodegas agreed to double their contribution to the promotional budget, meaning 2.5 centimos per litre sold, or an extra 900,000 euros. The initial proposal by Fedejerez, the bodegas' representative body, was to quadruple their contribution to 5 centimos, however while a majority could have been achieved, Fedejerez chose to reduce it to 2.5 in order to guarantee consensus and thus demonstrate the commitment of the bodegas.

While this is a significant increase, it is still felt to be insufficient, but there are many loose ends to tie up. The idea is to raise the matter again before the harvest to keep raising the contributions from both the bodegas and the growers. The growers contributions, known as the "canon de la uva" re-started last year after some years of absence.

Fedejerez wants to see any increases in contributions to be in the same proportion for growers and bodegas, and asked the Consejo to draw up a three year plan to determine the precise budget requirements. As things now stand, the Consejo will have a budget of some 1.5 million euros for this season which will be augmented by the state and the OCM (a European fund for promotion in third - non EU - countries) up to some 2.2 or 2.3 million euros.

A Sherry promotional event in a specialist shop in Madrid (diario jerez)

However promotion in traditional European markets - the major markets - will prove more difficult as a fine line must be drawn between these markets where the quantities are sold and the emerging ones such as the USA and Asia. While this new budget is much better than that of last year, Fedejerez president Evaristo Babe made it clear that more effort is needed and that the matter will need to be looked at again. The increase to 5 centimos will be considered again later, and he said that everyone needs to contribute to the promotion of the wine to generate more addad value ans more profit. "When demand takes off Sherry, which is predestined to be a top level drink because it is limited, because it is a rare asset, will sell better and give more profit to us all including the growers".

6.10.14 Manzanilla Should be Served from the Bottle

Ferejerez has asked the Consejo for a campaign to inform the consumer that genuine Manzanilla can only be served from the bottle. The Manzanilla producers are facing the dilemma of either selling their wines in bottle, as the Consejo insists, or losing its support by selling in other formats such as bag-in-box (BIB), whereby their wines would be disqualified from the Denominacion de Origen (DO).

Many producers have opted for the BIB, particularly for the catering trade, and especially for the ferias, mainly that of Sevilla, where some Sanlucar firms prefer to sell their wines without a DO just to maintain decent levels of sales and not lose clients. It is a widespread practice which, according to the Consejo, has now reached hundreds of thousands of litres, predominantly in spring.

Look at that flor!! (foto:descubrecostaballena.com)

Up till now the bodega has been free to choose, but some are not happy to renounce either the DO or the packaging. Fedejerez has denounced bodegas who are members of the Consejo and are selling ten litre BIB’s with the names "Sanlucar" and "Manzanilla" on the label, names which are protected under the DO. What’s more, these BIB’s are being sold at ridiculously low prices like 2 euros per litre which undermines the trend for increasing prices and thereby value.

Manzanilla can be sold in bulk – under Consejo supervision – but normally must be sold in bottle in which case it can mention those two words on the label: “Manzanilla de Sanlucar”. Fedejerez has reported this fraudulent practice to the Consejo so that it can take appropriate action, which could include sanctions such as removing the product in question from the market.

Evaristo Babe, Fedejerez president, said that it is necessary to inform the public in a positive and clear way that Manzanilla is only Manzanilla if it is in bottle with the seal of the Consejo Regulador. Anything else is to deceive the consumer which must be stopped to maintain the value of the DO, especially in this, its fiftieth anniversary.

8.6.13 Vinoble; Manzanilla Cocktail Competition; Fedejerez

Vinoble, the biennial exhibition of sweet and fortified wines is to be held once again in Jerez next year, as previously reported. The dates have now been decided, and they are the 1,2,3 of June. As usual, this fantastic event will take place at the Alcazar in Jerez.

(Imagen MasJerez)

 Bodegas Delgado Zuleta, in collaboration with the Hotel School IES El Picacho and the local tourism authority, hosted the 3^rd Manzanilla-based cocktail competition on Thursday, timed to coincide with the Feria de la Manzanilla. The competition was open to students and professionals alike, and 25 people entered. The winning cocktail was a Sing de Sierra, by Daniel Campon.

Fedejerez yesterday reiterated its desire to “resolve the (Fino/Manzanilla) problem, not shelve it”. The Junta felt that postponing the matter, at least while Europe was dealing with other aspects of the modifications to the Reglamento, would allow time for reconciliation. However the president of Fedejerez, Evaristo Babe, wants to press ahead, “in the interests of both DO’s: Sherry and Manzanilla”, and feels that there is some cordiality between the two. Miguel Perez, of Coag and the Coop Virgen de la Caridad in Sanlucar said it would suit all concerned to get on with the dialogue and put the matter to rest. The Junta does not really want to get too deeply involved, especially in the core question as to whether Fino can still be aged in Sanlucar. They would prefer to wait to see what Brussels says and not create any more problems.

Junta Postpones Fino/Manzanilla Question

The Junta de Andalucia has recommended the Consejo Regulador to shelve the contentious question of whether Fino can be produced in Sanlucar. Without wishing to get involved in the minutiae of the question, the secretary general for agriculture, Judith Anda Ugarte, said that it was better to complete the matters already in hand - modifications to the Reglamento, which are now awaiting approval by Brussels – before starting on any others.

Fedejerez, whose proposal it was, were frustrated at the last plenary at the Consejo, when the vote was postponed till July in order to allow more time for dialogue. The Manzanilla producers felt they were to be deprived of a long standing right, though it should be borne in mind that the Jerez and Puerto Santa Maria bodegas had once to give up their right to make Manzanilla in Sanlucar. Nonetheless, the Manzanilleros are prepared to go to court over the issue.

29.5.13 Fedejerez Postpones Voting on Fino/Manzanilla Proposal

The Jerez bodegas association, Fedejerez, has decided to postpone the vote on this contentious issue until the next Consejo meeting on the last Tuesday of July, in order to allow more time for dialogue and a potential solution to the problem. It is not clear whether they would have had sufficient votes to have the proposal passed, though a simple majority could have been achieved, according to  Evaristo Babe, president of Fedejerez, though not necessarily in the interests of the Consejo.

He said the meeting took place in a cordial and constructive atmosphere, yet there was an air of tension. He defended the proposal and his wish that it could be put to the vote, in contrast to the majority who wished it to be removed from the table, especially the Vinateros de Sanlucar, who wished it could be scrapped. Manuel Valdecantos of Barbadillo, on behalf of the Sanluquenos, recalled the historic rights of Sanluquenos to produce Fino.

Finally, Fedejerez acceded to the postponement of the vote until the next plenary meeting at the behest of Beltran Domecq, who in view of the lack of consensus and the sensitivity of the issue, asked for one last effort at dialogue.

During the next two months, the Sherry trade will sit down and negotiate a solution to the conflict, for which they have asked the Junta de Andalucia, a silent witness so far, to help. The positions of the two camps, however, seem irreconcilable.

In the face of criticism from the trade about the timing of the proposal, Babe declared that the date was pre-set from the expiry of the moratorium three years ago. Everyone knew that it was ending, and a decision has to be made now, so we are keeping in touch over the next two months while we seek more consensus.

Some sources say that Fedejerez is not interested in changing its proposal, and will spend the next two months seeking support for it, and if they don't get it, they are bent on bringing it to the next plenary meeting for its approval, even if only by one vote.

The independent growers also seek a solution which does not harm anyone's interests. Francisco Guerrero, president of Asevi-Asaja said that there is no solid base for the assertion that you can't age Fino in Sanlucar, when it has been allowed for the last 35 years since the implementation of the DO Manzanilla.

The president of Aecovi, Carmen Romero was pleased that the decision had been delayed, as the job of the Consejo is to benefit all, not to serve as a battleground for bodegas. "We must find unanimity or a good majority, or it will be bad for the trade, and worse for its image at a good time for sales. Let's be optimistic, and not seek out confrontations."

28.5.13 More on the Fino/Manzanilla Polemic

The Sanluquenos are asking Fedejerez to withdraw their proposal that Fino can no longer be produced in Sanlucar, while Fedejerez are actively looking for support for it.

The Fedejerez argument is that Fino cannot be produced in two distinct DO’s – Manzanilla de Sanlucar and Jerez -Xerez -Sherry. There are those, and not only in Sanlucar, who see political interests- and not just commercial - behind the affair, linked to the schism when the principal Sanlucar bodegas left Fedejerez three years ago. These bodegas formed their own group, Vinateros de Sanlucar, and their argument is that if the technical commission found that there was no technical or organoleptical means of distinguishing the two wines, why change anything?

Many consider the timing of the Fedejerez proposal inopportune, as they haven’t had time to mull over the matter. Thus, Aecovi and Asevi Asaja, the growers associations, who have 5 votes out of 20 at the Consejo, feel unable to vote, and hope that Fedejerez will withdraw the proposal and consult more widely, especially outside the Consejo.

Meanwhile, after its round of consultations, Fedejerez  is to convene before the Consejo debate to see what support it has and decide whether to press ahead with the proposal. It would not be the first decision they had made on the hoof.

In principle, they have 8 votes, 6 from the bodega sector and 2 from the grower sector, but there will be abstentions for sure, and that could let the proposal through. If so, the bodegas would be in breach of a long tradition of trying to find consensus in hotly debated matters - and the modification of the Reglamento is just that. If the proposal is passed, it will inevitably open up a breach between Sanlucar and Jerez, Manzanilla and Fino: the two brothers who don’t get along.