Revisiting South America’s Wines

Though
value wines, under $1O a bottle, remain the essential hook
for the US consumer, there are wines costing $5O or more,
such as Almaviva, Clos Apalta and Lota from Chile and Caro
from Argentina, as well at all price points
between.

What has
changed? Why do Americans love these wines so much? Will the
boom continue? It was time to revisit the continent under
me, where my winter is their summer, my spring their fall.
In October 2OO6, I returned to Chile and made my first
pilgrimage to Argentina.

I expected the
Chilean wine industry to be totally renovated. It was. My
big surprise was how state-of-the-art and spanking new
Argentina’s wine industry appeared. In both countries, the
old historic wineries have been restored to attract wine
tourism. While Chilean wineries have a conservative look,
the Argentine ones sport innovative design framed against
the towering Andes. Bodega Zapata Catena has erected a
Mayan-Temple-like building to house its offices and
vinification tanks. The O Fournier facility looks like a
flying-saucer nestled in a bed of vines. Salentein’s
circular chais evokes the Parthenon. Wineries in both
countries have the very latest equipment and employ expert
consultants from France, California, Italy, and Australia.
Tasting rooms and gift shops seem Napa-inspired. Chile and
Argentina are both making investments in wine tourism. From
February 15 to 18, 2OO7, the Park Hyatt Mendoza will launch
its own version of California’s Highlands Inn’s Masters of
Food and Wine. Todd English and Ken Oringer are two of the
fair’s star chefs. The skyscrapers of Boston are just beyond
the Mendoza horizon.

The Chilean
vineyards have undergone great change. The jungles of vines
of yesteryear have been replaced with manicured phalanxes of
vines. Vertical shoot positioning, a thin curtain of
vegetation hung on wires, has replaced the sprawling
California T-trellis which I had seen 15 years before. Vines
number about 55OO per hectare now, double what had been.
Doubling the vine density and halving yield per vine give
the same overall yield, but a higher quality crop. Drip
irrigation has replaced flood irrigation. Drip irrigation,
like stealth weaponry, precisely delivers aqueous payloads
to vine roots. Vineyard managers can use it to control plant
growth and ripening. The vineyards in Argentina generally
are younger in age. Planting here has occurred at a feverish
pace. The same vineyard technologies are employed here as in
Chile. Viticulture, like winemaking, is now
international.

Varietal
selection varies somewhat between Chile and Argentina.
Bordeaux consultants set 19th century Chile on a French
course and Chile’s varietals show that influence. Cabernet
Sauvignon remains king, but Carmenere is in ascent. In the
early 199Os, French ampelographers pointed out that many of
the vines thought to be Merlot were actually Carmenere – a
rare, very old Bordeaux variety. Wine made from unripe
Carmenere smells and tastes like a 5O-5O blend of green
vegetable soup and wine. Chilean producers had harvested
Carmenere with the Merlot. Since Carmenere ripens much later
than Merlot, the result was vegetal “Merlot” wine. Chilean
“Merlot” consequently got bad reviews in the press. Now that
Carmenere is planted separately and picked later, it gives
very different results. It is a deep purple colored,
black-currant scented wine with a soft thick texture.
Chilean Merlot, its image besmirched, has moved into the
background. Chileans increasingly use Petit Verdot and
Malbec in wine blends. Planting and using Shiraz in blends
or making Shiraz varietal wine seems the current fad. I say
Shiraz, not Syrah, because its inspiration is very Oz.
High-ripeness harvesting and pre-fermentation maceration
obscures varietal smell identity. Less ripe Syrah wine
smells like blackberries perfumed by freshly manufactured
rubber bands, used coffee-grounds, and wet campfire – hardly
a recipe for international appeal! Winemakers as if to give
even more homage to the Australians, bury their Shiraz under
heavily toasted oak. Pinot Noir fascinates and challenges
Chilean winemakers. Making good Pinot Noir is how they can
show their mettle. This is about finding the right sites for
the variety and that challenge is before them.

Concerning white
varietals in Chile, there has been a transition from
Chardonnay to Sauvignon Blanc. Chilean winemakers seem bored
with Chardonnay. In cooler coastal areas, it does make fine
wine. Thankfully, Chilean wineries are releasing unoaked
versions, but these only appear at entry level brand tiers.
Sauvignon Blanc seems poised to become Chile’s signature
white varietal. Just as Chileans long confused Merlot with
Carmenere, they mistook Sauvignon Vert, an ancient Bordeaux
variety also known as Sauvignonasse, for Sauvignon Blanc.
Sauvignon Blanc is the more explosively aromatic and hence
the more entertaining of the two. Given that most of the
export Sauvignon Blanc comes from vineyards that are
recently planted, this confusion has been solved. The
Sauvignon Blanc in our retail stores is for the most part
Sauvignon Blanc. Cousino Macul throws another Sauvignon into
the arena, in the form of Sauvignon Gris. This is a more
citric and less vegetal smelling cousin of Sauvignon Blanc.
Riesling, Gewurztraminer and Viognier get peripheral
attention and rarely make it to our shore.

The varietal mix
in Argentina reflects its blend of immigrants. Early Spanish
immigrants were joined in the 19th century by as many
Italians. Spaniards brought Tempranillo, Grenache and
Torrontes. Torrontes is Argentina’s most planted white
variety. Italians brought Bonarda. As usual, French
varieties had a strong presence. Malbec, from Southwest
France, has in the last few years garnered enough attention
for it to be called Argentina’s signature variety. It has
passed Bonarda to become Argentina’s most planted red
variety. Cabernet Sauvignon also has a strong presence in
Argentina. Merlot, Sauvignon Blanc and Chardonnay are more
recent immigrants, but are present in every producer’s
portfolio. Viognier, more recent still, is presented here
and there.

In its
pre-Columbian home in Southwest France, Malbec makes a
coarse, red-fruited wine. The clones used in Malbec arrived
in Argentina in the 19th century and are, by winemakers’
accounts, much better raw material than modern French
clones. Malbec in Argentina makes deeply colored wine which
is soft and low in acidity. Higher altitude sites raise the
acidity and improve wine aroma and color. Bonarda makes a
deeply colored red wine with rustic, Syrah-like flavors.
Though Argentina has a reputation for fine Cabernet
Sauvignon, I prefer the Merlots I tasted. Tempranillo does
better in the warmer climate east of Mendoza. As in Chile,
winemakers test their own mettle and expertise by taking on
Pinot Noir. In this, they are even farther from the Holy
Grail than the Chileans. Torrontes yields a Muscat-smelling,
but low acid and bitter, wine. Some wine journalists and
members of the trade have advocated that Argentine producers
should focus marketing efforts on Torrontes, pairing it with
Malbec, like king and queen. I, however, prefer Argentine
Viognier. It has freshness and lightness of body. If the
variety is grown at high altitudes and the fruit is
protected from Argentina’s blinding sun, I don’t see why
great Viognier can’t be made here. Sauvignon Blanc makes
wines with fresh aroma and lighter body. Nice but not
special. The Chardonnays, Argentina’s most popular export
white, lack the saturation in the mouth that coastal Chilean
versions deliver. The recipe for Chardonnay is as it is in
Chile: the more intense the fruit, the more new oak is
applied. Though Argentine Chardonnay is well made and a good
value, the impetus to drink it lacks inspiration and
adventure. There is good Chardonnay all around the
world.

Though
consumers’ sense of regionalism currently extends only so
far as the Maipo and Casablanca Valleys in Chile and Mendoza
in Argentina, wine producers in both countries are hunting
for new and better growing areas. In Chile, interest has
either focused on areas closer to the Andes Mountains or to
the Pacific Ocean. Near the Andes Mountains offers more
day-night temperature variation. This is important for
bright wine color, powerful bouquet and solid natural
acidity. The Alto Maipo, that part of the Maipo Valley
abutting the Andes, is considered the best zone for Cabernet
and Merlot. Most vineyard sites near the Andes have western
exposures. These exposures in the late afternoon can put too
much sun and heat pressure on maturing grape skins. Apalta,
in the Colchagua Valley, 1OO miles to the south of Maipo,
has unusual south and southeast exposures. The soils too are
very stony. These factors have been shown to be very
positive for Carmenere. In valleys which open up to the
ocean, Sauvignon Blanc, Chardonnay and Pinot Noir are the
varieties of choice. Coastal hills afford these areas just
the right amount of protection from the cold, humid ocean
winds. The Casablanca Valley gained notoriety in the 199Os,
first for its Chardonnay and then later for its Sauvignon
Blanc. Good Merlot also comes out of Casablanca. In Chile,
the Leyda Valley and San Antonio Valleys, both cooler than
Casablanca, make outstanding, acid-laced wine. Wine
producers are seeking vineyard sites in Leyda and San
Antonio valleys. The continental-cool Bio Bio Valley, some
25O miles or so south of Santiago, may in the future yield
some great Pinot Noir and cool climate white wines provided
that harvests come in before the Bio Bio’s characteristic
early autumn rains. Another new “prestige” zone is the
Limari Valley almost as far to the north of Santiago as Bio
Bio is to the south. This valley opens up to the Pacific
Ocean. On the map, it has an uncanny resemblance to
California’s Salinas Valley. Though Cabernet Sauvignon and
Merlot dominate exiting plantings there, winemakers feel
that this area is better suited to Syrah, Chardonnay and
Sauvignon Blanc. Many Central Valley producers are buying
land there or making local contracts with growers. The soil
is calcareous and contains generous quantities of fossil sea
shells. This is a contrast to the sandy-granitic soils of
most of the Central Valley and surrounding areas.

In Argentina,
the province of Mendoza is the epicenter of the wine
industry. Historically, most of the vineyards were to the
southeast of Mendoza on irrigated flats. These vineyards
suit warmer climate varieties such as Tempranillo, Bonarda
and Grenache. Torontes is planted heavily there, but the
wines lack elegance and acidity. In search of cooler
climates and higher day-night temperature variation,
producers have planted in valleys at higher altitudes and
closer to the mountains. Some of the highest vineyards in
the world are here, immediately to the southwest of Mendoza
in the Lujan de Cuyo and further southwest in the even
higher Uco Valley. The Lujan de Cuyo contains many of
Argentina’s best wineries. Within the Uco Valley the
wineries are fewer and newer; and in that valley, the areas
around the towns of La Consulta and Tupungato contain
particularly high altitude sites that are attracting a lot
of attention from producers. These higher sites give the
typically low-acid Malbec its best opportunity to build up
acidity. In addition, these cool climates preserve fruit
aromas and enhance color. The highest vineyards are also
used for Sauvignon Blanc, Chardonnay and Pinot Noir, while
Cabernet Sauvignon, Merlot and Syrah populate the lower
elevations. The highest vineyards of all, though, are in the
Colchaqui Valley in faraway Salta Province of Argentina’s
north. These lie at over 5OOO feet above sea level.
Historically this area is noted for its fine, elegant
Torrontes, which is a different clone from the one used in
the Mendoza area. There are also many red grape vineyards
there and Salta may become equally noted for its reds. The
Rio Negro Valley surrounding the town of Neuquen is
Argentina’s most southerly vinous outpost. Altitudes are
lower here, but strong cool breezes coming from the south
brake ripening. The wines here have higher natural acidity
but less body. Though certainly suitable for white grapes,
there is hope that this could be the site for Argentina’s
best Pinot Noir and Merlot.

What attracted
Americans initially to Chilean and Argentine wine was good
quality at a very low price. The image that all Chilean wine
was cheap slowed down Chile’s growth up-market during the
199Os. While the number of Chilean labels has increased on
retail shelves, their price points and their image has
remained low. Since that time, Chilean wines have moved
up-market in image and in price in the US market. The
increasing prestige of red wines from the Maipo Valley and
from Apalta and the white wines from the Casablanca Valley
have helped establish a quality image. Spare-no-expense
“icon” wines have further gilded associations circling
everything vinous and Chilean. Just last October, Cousino
Macul, one of the few remaining estates to be
family-owned-and-managed since the 19th century, firmly
bonded Chile’s tradition with the 21st Century with the
launch of its “icon” wine, Lota.

In the last five
years, wines from Argentina, have invaded wine shops in the
United States. Malbec has become a battering ram for the
whole Argentine category. Neil Deininger, New England
regional manager for TGIC imports, asserts that the only red
varietal more popular in the US market than Malbec is Pinot
Noir. The US consumer so far has nothing white and Argentine
to latch onto. A nascent Argentine Icon wine category, led
by Domaines Barons de Rothschild/Nicolas Catena CARO Mendoza
red wine, suggests that Argentina is eager and ready to
enter the big leagues.

The Chilean and
Argentine industries are following the world wide trend to
harvest their red grapes as late as possible. High alcohol,
thick wine is what the influential critics and hence the
market values. While Carmenere can keep its aromatic profile
at high ripeness levels, a less aromatic variety like Malbec
tends to lose it. I also see a similar effect on Chilean
Syrah. At the high ripeness level at which it is picked, it
lacks varietal character. It doesn’t help that Chilean and
Argentine producers tend to over-oak. The rule of thumb they
employ for red wines as with Chardonnay is: the more intense
the fruit, the more the new oak-contact. As a result, as one
tastes up the brand tiers of red wine and Chardonnay, the
oak flavors consistently cover the fruit. The Chilean and
Argentine wine industries are brand driven. Individuals
making individual wines are a rarity in either country. Both
industries could use the creativity and inspiration that
only vignerons, high-quality individual driven
grower-producers, can generate.

The Chilean
export market at the moment is not in a growth phase. The
strength of the Chilean Peso has limited Chile’s ability to
compete in export markets and to increase or maintain
profitability. Its national market is price driven. Chileans
consume less and less wine every year. The stagnant domestic
market has not helped the Chilean wine industry offset the
strong Peso. When the dollar becomes stronger, Chile’s wine
exports will bounce back. Argentina’s currency, however, is
weaker than the dollar. The Euro overpowers it in value.
Foreign investors, particularly from France, are investing
heavily in Argentina. The weak Argentine Peso and investment
capital has helped support a rapid expansion of Argentine
wine into the all important US market. A more durable asset
for both wine industries is the remarkable climates that
they have for viticulture. Both industries furthermore are
unencumbered by the layers of internal regulations that are
present in Europe. Economies of scale are possible in both
countries, particularly in Argentina. This has enabled
Chilean wine producers and, even more so, Argentine ones, to
offer excellent value for money.

As new terroirs
are discovered and planted, Chilean and Argentine producers
will more successfully match their varieties to terroirs.
White wines, which need cooler climates to intensify their
flavor and structure, will likely see the most improvement.
In particular, the Chilean Sauvignon Blancs from Casablanca,
San Antonio and Leyda valleys that will reach our shores in
the coming years will be very exciting. Argentina is farther
away from finding its white wine identity. The matching of
Carmenere to terroirs such as Apalta in Chile and Malbec in
the Uco Valley in Mendoza has improved these varietals.
Their images in overseas markets are on the rise. As a
result, consumers may, within 5 years or so, begin to
recognize the names of these prestigious wine zones. Terroir
may become more visible to consumers. Chilean and Argentine
wine will likely occupy even more “terroir” in our wine
retail stores.