An Interview with José Ramón Estévez

This is an interview by Jesús A Cañas in La Voz Digital with the president of Grupo Estévez.

These are new times for the bodegas of Jerez. While the production of spirits is nothing new, what is new is your commitment to this line of business demonstrated by the launch of new products. Since 1998 Estévez has been producing 50 brands for the supermarket Mercadona and understands the bodegas’ situation perfectly.

How would you describe the adaptability of Jerez?

Very positive. Historically Sherry has had a great capacity to adapt itself to changes in fashion and requirements of the market. From the production of a large range of wines which satisfy different tastes to the production of brandy, liqueurs and Ponche. This diversification allows us to invest in quality: research and development, equipment and human resources which benefit everything.

Would you say that the future of Jerez rests on the exploration of new avenues?

The future rests on changing the status quo and doing things differently. I believe that the most important thing is to put quality at the very centre of things. We need to start with the raw material, the land, the grapes, we must follow a sustainable agro-alimentary chain in which all those involved can make money, invest and improve quality and processes. That would position us in the marketplace as a quality product. We need a change of philosophy along with innovation, diversification and proper promotion of our products.

Jose Ramon in one of the firm's well-known bodegas (foto:lavozdigital)

Where does the Sherry business find itself now?

In a historic moment. I believe the crisis has bottomed out, that qualified grapes will soon fetch 100 pesetas the kilo. Here we still use the old peseta when referring to grape prices! We must change our image and invest our resources wisely, positioning ourselves with a business model based on quality, image and profitability. This would mean defending the Denominación de Origen (DO) and fighting seriously against abuses and appropriation of our image which we have put up with up till now, and the institutions and administrations should take action in these matters which do so much damage to Sherry. I would like to see a Denominación de Origen Calificada (higher than DO) which would presuppose that all our raw materials would be from Palomino, be they concentrated must or alcohol. That would mean added value for bodegas and distributors, create jobs and increase sales. It would be good for everybody.

Do you think that wine tourism could be another possible avenue for economic diversification?

The commitment to wine tourism has already been successful in other wine regions of the world and it something which would no doubt help Sherry. It is an experience which helps people to understand at first hand a great deal about wine culture, something fundamental in our case. At Estévez we are developing a wine tourism programme with visits and activities in the vineyard. We have completely renovated the vineyard house at Viña Bristol and have adapted it so that visitors can enjoy a full experience at our vineyards. They can wander about and get a feel for the albariza soil, and even do a few jobs like aserpiado (creating a depression at the foot of the vine to catch rainwater), pruning or grafting.

The quality of the wines of Jerez is well enough known but not that of the other alcoholic drinks. What would you say about that?

In many cases there is the risk of mistaking a product at an offer or special price for a low quality product, but it is not like that. Our products beat other brands of recognised prestige every time we do a blind tasting, so little by little they are gaining recognition.

Recently people have been talking about a general improvement as a result of the crisis coming to an end. Can it really be seen in the bodegas?

It has been a very hard crisis and the demand for alcoholic drinks has been as badly affected as other products. Wines and spirits form part of our culture but are not necessities. Nevertheless, every crisis brings experience and opportunity. For us they have been years of analysis, improvement of processes, reduction of excess costs, innovation and reinventing ourselves every day. In fact, after years of imbalance between supply and demand stability has come as has a new interest in Sherry. This is a great opportunity to change things. It is time to elevate our products to a position of quality and it is thus necessary to invest the necessary resources into marketing and promotion. You need to do things well right from the start, right from the land to finish up with a unique, genuine and profitable product.

Will Sherry Get a DOC?

The news that Jose Ramon Estevez thinks Sherry should be a DOC wine is a hugely interesting and very attractive idea. But there would be far-reaching implications, which he is obviously aware of.

Spain, like Italy, has a higher tier of quality than the standard Denominacion de Origen (DO): Denominacion de Origen Calificada (DOC). Only two Spanish wine regions currently have a DOC: Rioja and Priorato. There is certainly a good argument to be made for more, and Sherry would be an excellent candidate.

The regulations for DOC are tighter, however, and certain perfectly legal practices in Jerez would need to be changed. As things stand, fortification alcohol nearly all comes from huge distilleries in Tomelloso (La Mancha), and is made from the local Airen grape. Presumably the spirit would need to come from Jerez for a DOC wine. Grape concentrates and Pedro Ximenez also often come from outside the region. To make these changes would inevitably incur large increases in cost, but it would create jobs locally.

Jose Ramon Estevez (Foto Diario Jerez)

Currently, 46% of the vineyards belong to grower cooperatives, and Estevez feels there are too many coops with too much capacity, and they depend all too easily on selling grapes or must to bodegas and on government grants. They should take more pride in their vines and produce better grapes and musts in lower volumes, and more precisely what is required by the bodegas and charge accordingly.

The bodegas too, would have to change their ways. Instead of pleading low margins for their lack of promotion, they should be increasing those margins. It doesn't matter how good your wine is: if people don't know about it , they won't buy it. The trade has to get off its proverbial and get cracking, especially now, when the whole world is looking on at this European City of Wine. Jerez should be dictating its price, not its customers.

There is another DO in the Spanish system which is one for a single vineyard: Vino de Pago. There are quite a few of these, where the quality of the wine from a single vineyard is deemed outstanding. Jerez has plenty of pagos, albeit rather large, such as Macharnudo, but within that is Inocente, a single vineyard which produces the excellent Fino of that name. Another example would be Pastrana in the Pago Miraflores. These vineyards would need to be certified, however, and that would take time, but a DO Vino de Pago could surely never harm sales.

So will Sherry get a DOC? Only if everyone gets together and sees past institutional interests towards a glorious future. It is good to know that at least one bodeguero can.

8.6.14 GB Opens Archives; Valdivia Still For Sale; Sherry Should be DOC

Gonzalez Byass is opening up some of its archives in recognition of International Archive Day. On Monday the public will be able to see some of the company’s historic records in two sessions, the first at 11.00 and the second at 13.00. These records show a fundamental part of the social and economic history of Jerez as well as the family and business legacy of the firm’s founder, Manuel Maria Gonzalez Angel.

Bodegas Valdivia (Foto Diario Jerez)

No buyers have yet been found for Bodegas Valdivia. If times were less difficult it would make an attractive proposition. It is a pristine bodega attached to a beautiful old hotel, the Villa del Duque. The sale includes furniture and cars, the bottling plant, the brands, the vineyards, website, and the wine, which is being looked after elsewhere. It has all been divided into lots to try and facilitate a sale. The liquidators are hoping to raise 16.5 million, but are far from optimistic.

Jose Ramon Estevez (Foto Diario Jerez)

Sherry should have a Denominacion de Origen CALIFICADA, according to Jose Ramon Estevez, the president of Grupo Estevez. His is one of the leading firms in the area with turnover of 103 million Euros, 800 hectares of vineyard and sales of 30 million bottles annually.

In an analysis prepared for a forum sponsored by the Banco Popular and publisher Grupo Joly, and in the presence of other bodegueros, growers and cooperative members, he suggested this as a way to create employment, wealth and increased prestige for Sherry.

He used the model of the French growers who are prepared to sacrifice quantity for quality and many of whose vineyards are classified. The Sherry growers should be proud to be so.

Many changes would have to be made: everything that goes into a bottle of Sherry would have to come from Jerez like the fortification spirit, for example. A change of mentality from the growers is needed, and from the bodegas too. Sherry should be repositioned as a unique wine of top quality, rather than an everyday drink. Much more investment is needed in promotion, and margins would need to be increased to cover that. (See Opinion)