The Times gets New World-ish

VS

Victor de la Serna
From The (London) Times today. No comment (except that they should ask E&G Gallo first...)

BUSINESS: FRENCH VINEYARDS URGED TO BE THE NEW JACOB'S CREEK

By Adam Sage

SACREBLEU! Forget regional identity and promote the grape? The very idea has drawn the wrath of purists.

But that is what critics of the French wine industry have suggested needs to happen if it is to recapture market share from its New World rivals

Gallic vineyards have been told they must pool their resources to make wines known by the grape variety - such as Merlot or Cabernet Sauvignon. But the call by critics has infuriated purists, who claim that each French wine is the unique product of an encounter between a microclimate, a soil and a human hand.

They say the idea of brands is an assault on traditional labels noting the region, the district and the vineyard in which the wine was made.

But resistance to change appears to be waning after what Le Figaro described as France's annus horribilis. Exports of wines and spirits - the country's third-biggest foreign currency earner after aircraft and cosmetics - fell 16.6 per cent in value to euros 7.7 billion (pounds 6.8 billion) in 2009, according to figures released by the Federation of French Wine and Spirits Exporters.

Champagne, Bordeaux and Burgundy all recorded big falls. The only group to buck the trend and enjoy an export rise were cheap vins de tables.

Claude de Jouvencel, the federation's chairman, said drinkers around the world had cut their consumption and switched to downmarket wines and spirits in the recession. The drop was particularly acute in France's two biggest export markets, the UK, where sales fell 20.2 per cent, and the US, where they were down 22.7 per cent.

He held out hope for an improvement this year, but added that it would be "very slim", with overall growth in exports unlikely to exceed 5 per cent. "The recovery is by no means certain and we're staying cautious."

His warning that 2010 could again prove disappointing for French producers served to catalyse the longstanding debate over their marketing.

"We lack products with a clear brand name and grape variety to reinforce our offer on the Anglo-Saxon markets," Mr de Jouvencel said, adding his voice to the growing movement in favour of sweeping reforms designed to produce a Gallic equivalent of Australia's Jacob's Creek.

France has a few big, branded wines, such as Malesan and Baron de Lestac, but has tens of thousands of others produced by small vineyards.

Even Bruno Le Maire, the French Agriculture Minister, threw off decades of official conservatism to risk angering producers with a call for the creation of what are officially known as varietal wines.

"The world wants varietal wines. That's how New World wines have managed to succeed in the export market," he said. "Why shouldn't we do the same thing?"

Guillaume Ryckwaert, chairman of Raphael Michel, the wine merchant, said: "Consumers already have difficulty placing France on a map. How can you expect them to understand the difference between a Gigondas and a Vacqueyras?"

Critics point out that France's share of the global wine market has fallen from 51 per cent in 1990 to 34 per cent last year.

In Bordeaux, the celebrated Chateau Lafite may generate handsome profits, but according to one recent study, about 60 per cent of vineyards are struggling to break even.
 
The French are really bad at marketing. Varietal labeling helped market New World wines because the place names had no brand recognition or marketing value. But in fact there are plenty of French regions where the place names *would* have brand recognition and marketing value even at the low end of the price scale - you have to figure the millions of people who buy Peter Mayle's trashy "Provence" books would be fairly curious to try a wine boldly labeled "Provence," for example. It seems to work for Tuscany, which mostly gets by without varietal labeling.
 
Our next door neighbor in France is tearing out his vines because the money he is paid by the Coop doesn't pay for the cost of growing (he could never bottle his own). Rate of consumption in France is down and the competition for the share of wine drinkers world wide who merely want to buy a beverage costing preferably less than $15 is larger than ever. Under these circumstances, it's easy to see why the French would try new methods to get their market share back. It's also easy to see that they'll fail--as will a lot of Australia, a lot of S. America, etc., etc. I don't know whether it's a good thing or a bad thing, but it's the basic reality of too much product chasing too few customers. Little about this situation has anything to say about wines people write about here, much less wines that people don't write about here that garner attention on other boards.
 
originally posted by Keith Levenberg:
The French are really bad at marketing...

How true. I mean no one has ever booked a vacation to France or purchased a product from France because of its image and mystique.
 
originally posted by Rahsaan:
originally posted by Keith Levenberg:
The French are really bad at marketing...

How true. I mean no one has ever booked a vacation to France or purchased a product from France because of its image and mystique.

And it is the intrinsic quality of all champagne -- esp. from the bigger labels -- that makes people want to open it for every birthday and holiday.
 
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