Showing posts with label Ruiz Mateos. Show all posts
Showing posts with label Ruiz Mateos. Show all posts

Saturday, 20 February 2016

Sherry is Digging Itself out of a Hole

This is a translation of a very interesting article in El Confidencial which outlines, at least in simple terms, the plight of Sherry and the beginnings of its resurgence.

Juan Carlos Gutiérrez Colosía was always there. When, during the 1960s Sherry sold half way round the world there was money in the Marco de Jerez, he was already working in the bodega bought by his grandfather. When, in the 1970s and early 1980s Ruiz Mateos dropped the prices and thus the prestige of Sherry, he suffered like everyone else. When, in the 1990s and 2,000s the majority of the 350 bodegas which existed then closed, he managed as best he could. And now, now that Sherry is beginning to sell again, Juan Carlos is still there to see it because Sherry, the wine of Churchill, the British Royal Family, Shakespeare and Nelson is back. In 2015, for the first time in 30 years sales in Spain actually rose, and we need to go to Jerez to understand what is happening.

Juan Carlos Gutierrez Colosia (foto:gentedelpuerto)

Helena Rivero is a good example of what is happening. She is the daughter of Joaquín Rivero, a Jerezano and ex-owner of the construction company Metrovacesa who, during the construction boom made one of the biggest fortunes in Spain. At the end of the 1990s Helena had decided she would return to Jerez. The Riveros had once owned one of the oldest bodegas in Jerez, CZ, founded in the XVII century and which, like so many others, closed down in the 1980s after problems with the bank. “Sooner or later I was going to return. A wine with 3,000 years of history couldn’t end up like this. Our generation could not allow ourselves to lose it”, explains Helena as she walks among the butts of the bodega in the centre of Jerez. It is a small, pretty bodega, in amongst the tiny cobbled streets which snake around the city.

So in 1998 Rivero founded Bodegas Tradición, now re-named CZ-Tradición after buying back the historic brand name. They started buying soleras at a time when everyone else was selling them. “In 1998 they thought we were mad, more so when we charged double the price of other wines and staked our reputation on quality. They said we would end up cleaning the windows with all the wine we had bought”, she remembers. Not only did they not want to clean windows, but they wanted to do something crazier still: produce Sherry: Fino, Amontillado, Oloroso, Cream, PX and brandy of the maximum quality and sell it to the top end of the market. “Obviously there were better businesses than this but we didn’t only do it for romantic reasons: we wanted to make money”, says Helena, who is president of CZ- Tradición.

Helena Rivero (fot:bodega)
To consider the implications for this company at the end of the 1990s we need to go a few kilometres down to the coast to El Puerto de Santa María. There, at the mouth of the Guadalete river, sits the bodega of Juan Carlos Gutiérrez Colosía, the last Mohican of El Puerto. “In 1996 or 1997 I was at a trade fair in Flanders and nobody stopped at my stand. They didn’t even want to try it. Another time in London someone said “Sherry? No”. To understand why no one wanted Sherry and everyone thought Helena Rivero was throwing away the family fortune on it, we need to look further back.

“In the 1970s the area of vineyards was tripled and this generated vast overproduction, huge amounts of Sherry at low prices which was not up to the usual standard” explains Beltrán Domecq Williams, president of the Consejo Regulador. He is the classic “Sherry Gentleman” with an English surname, blue eyes, wearing a blue suit and a blue shirt with white stripes, a tie, a handkerchief in his top pocket and shiny tasselled shoes. He is a chemist who has worked in the entire chain of  Sherry production. He was director general of Williams & Humbert when it was taken over by Ruiz Mateos in 1972, and while extremely diplomatic, lets slip that he said “There’s not enough wine here”. Beltrán has his office in the Consejo Regulador, a fine building constructed in the 1950s resembling a Jerezano stately home.

Beltran Domecq

In 1964 during the good times, the Denominación de Origen had 7,666 hectares of vineyard. In 1978 it peaked at 22,097 hectares after which it slowly but inexorably declined to the present 7,000 hectares, back to a position of balance between supply and demand. Consumption declined with it. Juan Carlos is less diplomatic, and has no doubt who was responsible for the woes of Sherry: “Ruiz Mateos was our number one disaster. He ruined Jerez. His vision prostituted Sherry by selling poor wine at cheap prices so Sherry lost its prestige. He was bad, and worse still he had good pupils. He wanted to create an industry out of bodegas, but they are not an industry.”

Jerezanos remember that in the good times the streets would smell of wine, and older people have not forgotten the little train which used to transport butts between the bodegas. But after centuries it all came to an end. In one decade Sherry changed from being the wine of British high society, a wine mentioned by Shakespeare no fewer than 40 times, a wine always served at royal weddings and a favourite of the Tsar, to just one more wine on the supermarket shelves. Of course it still had its faithful following, but every time a British lord died Sherry lost a customer. Demography is a stubborn thing.

Then came democracy, a social change to which Jerez did not adapt well. It is not a city which likes change, but ownership of bodegas was being divided among families where often the less capable were left in charge while the more capable emigrated, leading to the end of many. There is nothing left of the bodegas of the wealthy Sherry branch of the Domecqs who took legendary excursions, spending a whole season playing polo in France. Other bodegas were taken over by multi-nationals and some carried on like zombie bodegas. There are now only some 40-50 bodegas where once there were 350.

Old soleras at Osborne (foto:bodega)

With this in mind, it is easy to imagine the expressions on people’s faces when Helena Rivero returned to Jerez to establish a luxury bodega. Further, Sherry has its own peculiarities which make it unique in the world like the solera system, with complicated notes written in chalk on the butts which only the capataz can understand. One single grape can produce all sorts of wine. “When people from other wine regions visit us and see what we do they think we are peasants”.

Traditions were maintained but there was ever less Sherry in the city. Jerez decided to position itself as the city of motorcycling. One can even see the Hollywood Walk of Fame style pavement devoted to famous motorcycle racers in the same avenue as the Consejo Regulador. Jerez also became a city of wastefulness getting into such debt it could not even afford to clean the streets. Corruption was rife; every mayor since Democracy has either been jailed for corruption or accused of it. The wine looked like a relic from the past until about five years ago something began to change.


High class gastronomy began to see Sherry as a wine to accompany a meal rather than just as an aperitif, and slowly, little by little it began to become fashionable. José Argudo López de Carrizosa (now there’s a Sherry name), marketing director of González Byass points out the landmark opening in 2010 of Bar Pepito in King’s Cross, London, the first of the Sherry Bars. Since then they have proliferated in many capital cities. “Sherry is cool, like the new vermouth bars. In London you can see girls sitting in a bar with a glass of Oloroso reading a book.” Then came the documentary film “El Misterio del Palo Cortado” and the novel “La Templanza” by María Dueñas set in XIX century Jerez, both have helped increase awareness of Sherry.

Maria Duenas studying (foto:elperiodico.com)

González Byass is a good example of a big family bodega which has known how to survive. As well as Sherry they produce wine in other areas like Beronia in Rioja, but their star is Tio Pepe. José Argudo’s office is full of Tio Pepe symbolism; even the webcam is carefully fixed to a bottle of it. The bodega, which is the most visited in Europe exploits its history and shows off all its butts signed by famous people with great pride. Few symbols can compete with the illuminated Tio Pepe in the Plaza Puerta del Sol in Madrid, but it has one competitor: the Osborne bull. This famous old firm in El Puerto is now a multinational yet still mostly in family hands. Their communication director, Iván Llanza says that the trick to making a comeback is authenticity. “Some companies need to invent a history but we don’t need to. Here we have a 1792 solera which supplied wine for Tsar Nicholas II, and here is another from 1812.”

The Sherry trade looks at the improvement with palpable excitement. In 2015 domestic sales rose – very slightly, but they rose – from 11.343 million litres to 11.522. A rise of 1.5%, not much but in a period of economic stagnation and falling wine consumption it looks more than hopeful. Beltrán Domecq thinks it might be the first rise in 35 years. While export volumes continue to slide, it is felt in Jerez that it is the larger scale BOB supermarket wines which are sliding while the quality wines are actually rising. Helena Rivero agrees. Sales of CZ-Tradición have grown by 5% in Spain during 2015 and they even ran out of Palo Cortado having sold 2,100 bottles at 80€ each. The bodega produces about 20,000 bottles a year, mostly at 20-30 years old and exports about 75%. They also have a gallery with some great Spanish art. Another prized possession is the bodega’s historical archive which they are slowly digitalising.

Patio at CZ-Tradicion (foto:bodega)

Carlos Gutiérrez is also optimistic. “Sherry was at the point of dying out from its greatness. Ten years ago if someone had asked me I would have said there would be no one left. But now I see a future if we make quality wines worth a high price.” In the bodega he is investing in improvements like restoring old butts. He has survived because his costs are low and the family owns everything. “I do everything from winemaking to bottling, I’ve done it all my life, so I know something about wine…” Of course there is a long way to go before Sherry can recoup its former glory. Beltrán Domecq would like what he sees walking the streets of Jerez to change. “It hurts to walk down the Calle Larga in the very heart of Jerez and see everyone drinking beer or Rioja. It is very sad we Jerezanos are not setting ourselves a good example.”

Despite beer and Rioja in recent years there has been a welcome resurgence of tabancos. Here in these scruffy dives smelling of wine Sherry was traditionally dispensed straight from the butt, but they have cleaned up their act without losing their essential character. Last week in one of them they served the tapas on brown paper on the bar and wrote the bill in chalk on the counter as they always used to. There were the usual old men, but also young people and tourists ordering Oloroso and listening to a Flamenco group which was probably performing for drinks money. “Pa’ qué quiero más tormento que estar un año sin verte? “ (Why would I want more pain than not seeing you for a year?) lamented the singer who said after the applause “Welcome to planet earth, welcome to Jerez.”

Thursday, 18 June 2015

18.6.15 Ruiz Mateos Jailed; Harley Heaven; Jerez, Culrura y Vino; Ruta Website; La Goya Cocktails

José María Ruis Mateos, founder of Rumasa and Nueva Rumasa has been jailed by surprise in Madrid for defrauding Hacienda (the Spanish Inland Revenue). It was felt that because of his age (84) and physical and mental condition he was no longer able to serve the 3 year sentence, but he was submitted to tests and deemed capable. Sending someone to jail at this advanced age is extremely unusual, and his daughter Patricia had to rush to the jail with his armoury of medications.


This weekend sees the arrival of some 10,000 Harley Davidsons in the Marco de Jerez for the annual rally of worldwide Harley clubs. The event coincides with the Carrera de las Leyendas (Race of the legends) at the Jerez circuit. Trouble is not expected, but the main problem is where so many people are going to sleep.

Typical Harley rider (foto:lavozdigital)
The Consejo Regulador is tonight hosting the presentation of the book “Jerez, Cultura y Vino” published by Peripecias Libros which consists of the collected talks given by various experts on Sherry and its culture in celebration of Jerez Ciudad del Vino 2014. Subjects cover wine, architecture, history, poetry, art, archaeology and more.

Tomorrow there will be a presentation at the Consejo Regulador of the new Ruta del Vino y Brandy de Jerez website and promotional video developed as part of the “Vivejerez” project financed by the Ministry of Industry, Energy and Tourism. www.rutadeljerezybrandy.es is now live and offers visitors the chance to organise their tours and create made-to-measure tours as well as book them.



Delgado Zuleta has celebrated the V Manzanilla La Goya Cocktail Competition at the Hotel and catering school of Sanlúcar. 27 current and past students competed and the winners will be presented with their prizes at the bodega on Monday. The winning cocktail was:
Cocktail Al-Andalus by Nazaret Marín Gómez

3cl La Goya, 4cl banana liqueur, 2cl mandarin liqueur, 4cl alcohol free passion fruit liqueur and 1.5cl lemon juice

Tuesday, 31 March 2015

Garvey “Regains” the Garvey Brands

The pieces of the puzzle of the receivership of the Nueva Rumasa bodegas are slowly coming together. In the case of the Complejo Bodeguero Bellavista – better known as Bodegas Garvey (and once the main activity of the Ruiz Mateos family in Jerez) - the recovery of the Garvey brands, whose registration runs out this year will smooth the way for the receivership which has been under way for 4 years.



Apparently a specially created company, a director of which is also a director of Garvey, has secured the principal brands, among them Garvey, Garvey BV, Bodegas Garvey, Grupo Garvey, the Fino San Patricio range of Sherries and brandy Espléndido. The Ruiz Mateos family kept the registered title to the main Garvey brands via a company in the name of third parties based in the tax haven of Belize, but the court embargoed them to the tune of €9m. The new company’s operation has the approval of the receivers and guarantees the use of the brand names for Bellavista and their inclusion in the receivership, which will make a sale of the production bodega easier and quicker, as this had long been a stumbling block. Maintaining the bodega and its workforce as a going concern is a priority for the receivers and naturally the bodega would be hard to sell without its famous brand names - especially with liabilities of about €90m.

Tuesday, 18 June 2013

18.6.13 More trouble for Ruiz Mateos

Lawyers working on behalf of Hacienda (Inland Revenue) is asking for Jose Maria Ruiz Mateos, his son Alfonso and three others to be jailed for seven years for irregularities in the sale of two fincas (estates) owned by Garvey. The case involves evasion of corporation tax and VAT. Furthermore, the accused have to put up a total of 3,100,000 to indemnify Hacienda if found guilty, which is quite likely.


Tuesday, 11 June 2013

More on Ruiz Mateos

The Ruiz Mateos family has pocketed some 60 million euros from commissions linked to the fictitious buying and selling of shares in companies which mainly belonged to the family. These operations are nicknamed “operaciones palanca” or lever operations and are a mechanism used for decades to achieve liquidity and defray company costs.

This strategy has produced 3 million per year for the last 20 years, and was used by JM Ruiz Mateos to finance the running of Nueva Rumasa in Madrid, mainly loans and wages, according to the family’s ex-lawyer Joaquin Yvancos.

Operation Palanca, which Ruiz Mateos even announced in the press, consisted of faking the purchase of shares from annoying minority shareholders and managing the majority shareholders, who at the start had been offered a lower price than they had thought reasonable to sell up.

Jose Maria Ruiz Mateos

“This was a classic example of many family businesses, and Ruiz Mateos saw in it a juicy profit”, the lawyer explains in his book “An Ideal Family”.


Yvancos relates that Ruiz Mateos agreed with the minority shareholders to make them a fictitious offer for their shares which was higher than their real value, so that they could put pressure on the majority shareholders, who finally gave in and paid the inflated agreed price for the minority shares, exercising their right of preferential option, for fear that Nueva Rumasa might become a shareholder in their companies.

Saturday, 23 February 2013

23.2.13 Various News Items


The XVII Festival de Jerez got underway last night with various flamenco acts with dancing, singing and music at the Villamarta Theatre. The Gala Inaugural was criticised for its length, partly for unnecessary extras, but was nonetheless a success, and a great start to the festival.





Garvey is selling its last two bodegas. The Complejo Bellavista and bodega Zoilo Ruiz Mateos will be sold together in the summer, although a price has not yet been fixed. In April it will be two years since the administration proceedings began, and a meeting will be held soon with management.

The actual owner of the bodegas, Angel de Cabo, through his company Back in Business, is in custody for suspected fraud concerning a travel agency business, and the possibility of him running Garvey and ZRM has been ruled out. The workforce, which has been much reduced over the last few years as the company’s debt spiralled to 250 million euros, along with the management, would like the business to be sold to someone who would continue it as it is.

According to accounts supplied by Back in Business, the value of the business minus its debt stands at a negative figure of 18 million euros if the distribution company Union de Grandes Bodegas is taken into account.


Meanwhile the Ruiz Mateos family, once owners of the bodegas as Nueva Rumasa, are being pursued through the courts. The labyrinthine nature of their affairs, however, will make it very difficult to secure convictions. In the family itself, everyone is falling out with each other and blaming each other while their creditors and investors will likely get nothing.


Ruiz Mateos and his six sons 

Lustau recently gave a tutored tasting of a range of its wines to students of the prestigious Oxford University Wine Society at Exeter College, founded in 1314. Around 50 students were given a talk about the bodega followed by a tasting of the wines by Federico Sanchez Pece, brand ambassador.

Friday, 16 November 2012

16.11.12 Queen in Jerez; More Rumasa Nonsense


The Queen of Spain, Dona Sofia, will today play host to a lunch and visit to bodegas Gonzalez Byass for the “First Ladies” of Latin America, whose husbands are attending the XXII Ibero-American summit, being held in Cadiz. The summit will be presided over by the King, Don Juan Carlos, and his son Don Felipe the Principe de Asturias, and its theme will be to restore good relations in the bicentenary of the Constitution of Cadiz. Along with Latin American heads of state and of government, those of Portugal and Andorra are attending. 
I just hope the First Ladies don’t see (or smell) the effects of the dustbin men’s two week strike!


The Ruiz Mateos family is suing Joaquin Yvancos, the ex Rumasa chief of accountancy for 28 years for  "grave calumny and falsehood” published in El Mundo.  They accuse him of trying to evade possible penalties for his part in the Rumasa empire as chief executive, and of extorsion.  Meanwhile the husband of Begona, Ruiz Mateos’ daughter is suing her 6 brothers, accusing them of evading VAT payments of 12 million euros among many other types of fraud. 
Dear oh dear!

Saturday, 29 September 2012

News from Jerez 19.9.12

Ruiz Mateos tries to get back his companies

Jose Maria Ruiz Mateos says he has made a verbal agreement with Angel de Cabo for the return of the companies he sold him, all at 1 euro each. He says the objective is to be able to study their viability and to resolve problems with investors. In the next few days he hopes to have a contract in place which will show the condition of the companies which will pass back to the ownership of Ruiz Mateos. He has also asked those investors to get in touch directly to find out how things are progressing.  He sold around 200 companies to Angel de Cabo and a couple of others, all for 1 euro, but all they ended up with were empty shells, and they have now initiated legal proceedings for fraud.

Shakespeare

The VII Homage to Shakespeare will take place in the Gonzalez Hontoria park in Jerez in November. There is a monument to him (one of the greatest promoters of Sherry) in front of which there will be a traditional Sherry toast, a floral offering and a poetry recital.

The 2012 cork harvest

Andalucia's 2012 cork harvest which ended officially at the end of August has shown losses of between 15 and 20 million euros. More than 50% of the bark remained on the trees (800,000 of the forecast 1,500,000 quintals) due to the crisis and weather conditions, according to Javier Benitez, director of the cork sector of COAG-A.

The cork harvest





Wednesday, 5 September 2012

News from Jerez 4.9.12


Three items today:

Grupo Etevez has announced the completion of its 2012 harvest. Production is down on last year by about 20%, but the company, being the largest vineyard owner in the area, has still picked one sixth of the entire Jerez harvest.
The quality of grapes harvested is good, however, with good acidity and a Beaume reading of around 12 degrees. But the grapes are small due mainly to the drought, with rainfall being just under half the usual 700 l/m2. The company used pickers during the mornings and machines during the night in order to bring in the harvest in the best possible condition.

Jose Maria Ruiz Mateos insisted yesterday that the man who bought Nueva Rumasa from him, Angel de Cabo, give it back to him because he has not, in almost a year, fulfilled his promise to pay back shareholders.
Ruiz Mateos has also been trying to avoid appearing in a court case against him in Mallorca. After being detained in Madrid, flown to Palma and physically taken to court at the behest of the judge, he exercised his right not to declare in a case in which he is accused of fraud in connection with the purchase of a hotel in Mallorca. He has also accused the judge at the court in Palma of being  ”A demon, a criminal. She has no heart or feelings. She is a bug proud and arrogant.”  This may not help his case…

Jerez Town Council has launched an initiative to promote and improve the ambience of the Fiesta de la Vendimia to be held between the 11th and 16th of this month. Officials met with the leader of local businesses and have come up with 2 ideas. One is to promote local wines: a copa of Sherry and a tapa for 2.50 euros, and the other to promote Flamenco. 18 bars will be involved. Complementary to this will be the Rutas Flamenco y Vino. Details can be had from discoverjerez.com. Looks wonderful! Meanwhile Fedejerez (the body which represents the bodegas) has agreed with the Consejo to display old Fiesta de la Vendimia posters from 1948 to 1985 in shop windows throughout the town centre. There will also be an exhibition of photographs about the vendimia by members of the Asociacion Fotografica San Dionisio at the Alcazar from tomorrow till the end of the month.

Wednesday, 1 August 2012

News from Jerez 1.8.12

At a recent meeting between the Mayor of Jerez, Maria Jose Garcia Pelayo and councillors, and Beltran Domecq and Cesar Saldana, President and Director General respectively of the Consejo, the two parties agreed to continue collaborating, and especially for the forthcoming harvest festival (Fiesta de la Vendimia), which of course is really all about Sherry.

Meanwhile in Mallorca, a judge in Palma has ordered the arrest of Jose Maria Ruiz Mateos for failing to appear at court on fraud charges connected with the purchase of a local hotel. Ruiz Mateos blamed his absence on a broken foot, but the judge ruled that there were insufficient medical or legal grounds for him not to appear on a new date set for the 23rd August. She said that while he had rights, one of them was not to laugh at justice.

Friday, 22 June 2012

News from Jerez 22.6.12

More trouble for the Ruiz Mateos family. Their ex lawyer and also the Guardia Civil have linked them with illegal payments to ex trade union leader Juan Lanzas for securing EREs for 5 Nueva Rumasa companies, 3 in Jerez. EREs (Expedientes de Regulacion de Empleo) are legal proceedings by which a company in difficulty can legally dismiss staff, who will get certain worker rights. It appears that Lanzas was receiving regular "dirty money" cash payments of 20-25,000 euros, all in 500 euro notes, in exchange for abusing his position along with a high ranking civil servant in the Junta de Andalucia. The latter is believed to be married to one of Ruiz Mateos' daughters.

Interestingly, the ex president of the Consejo Regulador of Jerez, Antonio Fernandez had to resign for irregularities with EREs.

Better news:
A festival of flamenco called La Luna de San Juan-Lustau will take place in 4 of Jerez' most traditional squares on the night of San Juan. It is co-sponsored by Bodegas Emilio Lustau. The strains of the cante jondo (the deep song) will ring out from 10.00pm. Go if you can!

Friday, 8 June 2012

News from Jerez 8.6.12

Back in Business, the company which buys ailing firms. has been relieved by the Courts of the management of the Grupo Nueva Rumasa  bodegas (mainly Garvey and Zoilo Ruiz Mateos) for fear of asset sales. Administrators have been appointed as no effective management or business trajectory seems to be in place, and the Courts are worried that there may be covert dealings between Jose Maria Ruiz Mateos and Angel de Cabo, owner of Back in Business. They deny this, of course, but from frequent bodega visits and interviews with staff, the Court feels its view is justified.