This week the governing body that rules on Rioja wines – made a big step in regards to naming of its wines and the specificity that it allows. The new categories of ‘Vinos de Pueblo’ or Village Wines and ‘de Zona’ (regional) will sit alongside the June approval category of Single Vineyard wines. Campaigners including opinion formers, winemakers vineyard owners and producers have been demanding this for some time.
What difference will it make to us at the Hospitality and Catering end of the distribution chain? In short, yes in quality, price and general value. But first, a brief look at the changes.
The Villages are yet to be designated, the Zonas are the existing Rioja Alta, Alavesa, Baja sub-regions already defined in 1998, and in a minor alteration wines with the Zona definition will be allowed to include 15% of a neighbouring Rioja sub-region. The Vineyard wines will be designated by having defined boundaries, long-ownership (over 35years), yields that are 20% less than the regions current legal limits and complete traceability. No timeframe is given for market delivery, but I think that it is safe to assume that producers will want to take advantage as soon as possible.
It has been clear that the Spanish establishment needed to make this change as much as the region and its producers itself. Spain has long been the poor man of Europe when it comes to wine sales. Sure Spain produces and exports big; according to EU production figures, along with France and Italy they form the biggest production unit for wine in the world by some distance, but it has often been used as the overflow reservoir for other countries when they run dry at the bottom end of the quality and price scale. Spanish wine trades at prices just less than 13% to those of French origin and, recently, that is mostly because of the 2016 French harvest was very difficult. The difference has been as high as 54%, along with a long-term 10 year trend.
Rioja as a region has clear global recognition and successfully distributes to the four corners, and it leads Spanish wine exports by value. However in terms of developing that value it is held back by a lack of definition.
The U.K. is the biggest market for Rioja at 33% of total exports after Germany (17%) and sells for a market leading price of £6.66 (2017). Recent growth has flattened and whilst in the context of the UK’s global imports Rioja rivals Marlborough Sauvignon for high average retails, it remains to be seen how much they can develop that value from here, especially when compared to the powerhouse commercial regions of Bordeaux, Rhone and Burgundy.
Bierzo is its only Spanish regional challenger and frankly their recognition, production and volume sales are tiny in comparison. Because much Spanish wine sold in bulk, i.e. usually 24-26000 litre tankers, the value sold is depressed considerably and Rioja is the leading volume in bottled at source sales, therefore adding the most value to the Spanish trade. In terms of quality and quality perception Spain has needed to raise its game and Rioja is the best vehicle in which to achieve that.
Whilst the craft movement has taken hold in beer, some may argue that it has been alive for a long time in wine, if not forever. Whereas that seems to be news in beer, it is not so in wine. Wine traders see a gentle movement towards more specific wines, where they come from, who produces them and interest in their precise quality. To date it has been difficult if not impossible for Rioja to demonstrate that specificity on their labels. They will now be able to thus selling their wines and optimising the value in the market.
The bottles that we will now see produced will increasingly come from producers who make smaller batches and make features of particular part of their vineyard assets, developing them into stories that markets want to consume. As referred to in this column there is a whole smoke and mirrors game to be played about the difference a patch of soil truly makes, however told well the care that a ‘vinicultor’ or vigneron takes in producing the wine from more particular parts and the reputation gained will make the hugest difference to the value that consumers will pay. Don’t take my word for it, research Burgundy, Bordeaux, Rhone Valley wines and prices verses Vin de Table over the last 50 years.
There are differences that the region has also announced with quality sparkling wine and some changes to bottle ageing when talking about Reserva and Gran Reserva wines, which will add to the more contemporary outlook of Rioja’s future.
Labels will change as well. With new rules will come a quantity of new contemporary designs that reflect new energy in the region. Certain producers will be saying a new dawn for Rioja, whether it becomes so will depend on how willing the market is prepared to accept this new era. My betting is that it will be welcomed with open arms.
What’s the downside? More complication. Whilst the new rules are welcome for those that want to know more about wine and spend more, for those that find wine complex and difficult to understand then this is a backward step. Whilst these new rules are possibly as simply expressed as is achievable currently, for the ordinary consumer they equal more complexity and expense. To some extent that’s what they have asked for.
As operators we will see a splintering of the market with many different villages, vineyards and labels appearing as producers differentiate themselves. They will all be defining quality in there own ways through the more general village and regional tools available to them. With a certain dependency on harvest there will be a general increase in prices aspired to. Whether or not the consumer pays them will depend on longer-term reputation, the amount the region itself promotes the different villages and to a certain extent how much ‘quality’ the vineyard invests in the wine itself.
Alistair Morrell
Hospitality & Catering News, Wine & Drinks Editor