Amidst the Old World vineyard restructuring, Spain stands out as the country that has lost most vineyard in the 21st century (Anderson, 2013). Most of Spain’s losses have occurred outside of Denominación de Origen (D.O.) regions. Yet with high labour costs and pressure on prices, the more remote D.O. wine regions have had no option but to change the way that they operate.
D.O. Bierzo is located in the far northwest of Castilla y León, with vineyards adjoining Galicia’s Valdeorras wine region. The 2013 harvest in Bierzo totalled 13.2 million kg and is notable for the large percentage of Mencia (75%) with the next largest cultivar being Palomino (15%). Although there is a trend for replacing (low quality) Palomino with (now fashionable) Godello, this does not seem to be occurring with particular haste. This is somewhat surprising given the success that the likes of Rafael Palacios and Valdesil have had with Godello in Valdeorras. Although Tempranillo, Merlot and Cabernet Sauvignon have been planted here since at least 1997 (González-Fernández et al., 2012), they are permitted only on an experimental basis and to date have had no significant impact. Bierzo remains very much a Mencia-based wine region.
Although there has been little change in the cultivar mix, there has still been considerable activity in restructuring Bierzo’s vineyard. In 2002 the total vineyard was 4,100 ha, but this had shrunk to 3,045 ha by 2012 – a reduction of 26%. The number of growers has declined even more rapidly from 5,186 in 2002 to 2,634 in 2012. As a result holdings per grower has increased from an average of 0.8 ha/grower to an average of 1.2 ha/grower over the same period. No doubt to management consultants this represents much needed efficiency savings, but these changes of necessity must also have had an associated human cost.
On a more cheerful note, Bierzo has seen a considerable increase in the number of bodegas during the 21st century. Whilst a considerable amount of fruit is still sent to co-operative ventures, a fast-growing trend is the establishment of small bodegas being developed by younger enthusiastic entrepreneurs. This is evidenced by the number of wineries which undertake their own bottling, which has risen from 27 in 2002 to 57 in 2012. Domain Tares (2000), Bodega Peique (2001), and Bodega del Abad (2003) are examples of quality-orientated wineries established this century which have already made something of a name for themselves.
So will Bierzo’s approach of producing less wine of higher quality from smaller wineries using an established grape cultivar mix prove to be a long-term success? It’s by no means guaranteed but, for wine lovers interested in trying something different, Bierzo offers unusual often delicious wines at attractive prices. Although export volumes are small, the growth of exports suggests that Bierzo wines will soon become more widely available at independent wine stores.
Looked at in terms of export volumes, in 2012-13 Australia, the UK and the US were the three largest makets and were each importing 40 – 50 million litres of wine (the vast majority of it Sauvignon Blanc). The UK had been the largest market by volume for New Zealand wine since 1990, a position it has just given up to Australia. The recent sharp drop in exports of New Zealand wine to the UK is entirely due to a reduction of bulk wine exports from 27 million litres to the UK in 2011-12, down to 17 million litres in 2012-13. Over the corresponding period, bulk wine exports from New Zealand to Australia dropped by 4 million litres while bulk wine exports to the US increased by 1 million litres. The overall decline in bulk wine exports was a consequence of the smaller 2012 vintage (194 million litres produced, compared with 235 million litres the previous year). With 2013 providing the largest harvest ever, and a production of 248 million litres, some producers are likely to again turn to bulk exports rather than increase inventories. UK supermarkets’ own brand Kiwi Sauvignon may well still have life left in it and the UK could return to being the largest importer country by volume in 2013-14.
Yet for all the upbeat talk of volumes and revenues, it shouldn’t be forgotten that New Zealand wine producers have had their fair share of backruptcies and liquidations in recent years. Export values (expressed as NZ$/litre) to the three largest markets have declined significantly, even ignoring the effects of inflation, over the past five years. While this is only one factor affecting winery profitability, it remains an important one. Until this downward trend can be reversed, further consolidation within the New Zealand wine industry seems highly likely.
Exports have continued to grow and appear to be an increasingly important priority for producers. The Americas account for the majority of exports by volume, of which the US is by far the largest market. Europe has shown
