Is Water the Next Oil?

With three separate articles on water rights in the past month [Dammed up water rights could flow again; St. Helena site for water rules hearing; and Washington State Grapples with Water], water could be the next oil in terms of its scarcity and desirability of a resource.

While irrigation is generally forbidden for vineyards in the EU, some special dispensations have been made, particularly during the heat wave of 2003. And, in drier areas of Spain, growers are feeling the pinch of global warming. Similarly, Australia’s inland vineyards have seen significant stress where irrigation practices have been halted due to the drought. (For obvious reasons, it is more important to provide the limited water to people instead of plants.)

In this vein, it is becoming increasingly difficult to successfully grow wine grapes in the absence of natural water. Consequently, at least in New World wine regions, obtaining water rights may be vital to sustaining viable vineyards. In Chile and Argentina, the problem of water access has yet to be a problem as the Andes snow melt provides a sufficient supply of fresh and reliable water. But, as the above referenced artices indicate, the water issue has come to the forefront for Napa, Sonoma, Mendocino, Washington State and Oregon.

In addition, although the current discussion relates to grape growing, it is likely that similar issues are facing farmers of other crops, putting additional pressure on the food supply of this and other countries. Further, as water is a crucial resource for all beings, not just plant species, the water crisis could become even more critical in the years ahead; perhaps even more so than the current oil crisis. I would think that, despite incredible difficulty, we can find ways to live without oil much more easily than we could to live without water. Consequently, the need to conserve water is more important than ever.

Maritime Wines Explored

With the first vitis vinifera vines planted on Long Island in 1973, this year marks the 35th year of viticulture on the East End and the birth of the Long Island wine industry. When Louisa Hargrave and then husband, Alex Hargrave, initially sought to make wine in the area, there was a lot that they admittedly didn’t know. As others followed, many were also without much, if any, experience in growing grapes and/or making wine.

At the time, most of the wine books and literature weren’t available in English and what was available was focused on California. The Long Island vignerons clearly recognized that their terroir and climate were vastly different from those of California and thus, these books weren’t particularly helpful. However, they did see the similarity between the East End and Bordeaux.

Not surprisingly, in 1988, Larry Perrine, presently of Channing Daughters winery, organized the Long Island Bordeaux Symposium (Maritime Climate Wine Growing: Bringing Bordeaux to Long Island), which brought the Bordelais to Long Island to see the wine region and provide advice. For many, this was a turning point for the wines produced on Long Island, with the quality increasing rapidly post-Symposium.

Fast forward 20 years and Long Island is now a well-respected, albeit still less well-known, wine region. No longer in need of specific advice from their colleagues, a new Symposium will be held this year, which expands the query to the world wine industry, once again spearheaded by Larry Perrine, this time joined by Louisa Hargrave. Titled, The Art of Balance: Cool Climate/Maritime Wines in a Global Context, the Symposium will be held on August 5 & 6, hosted by the Stony Brook Center for Wine, Food and Culture in partnership with the New York Wine and Grape Foundation ane the Long Island Wine Council.

The full agenda for this two-day Symposium is available online: (http://www.stonybrook.edu/sb/winecenter/symposium2008.shtml).

While the daytime programs of the Symposium may be of more interest to those in trade (although non-trade members are more than welcome), there is a Grand Tasting on Tuesday evening, featuring more than 200 wines, paired with wonderful food from area restaurants.

Spain is the new France

While Spain has always been the country with the largest number of hectares planted to grape vines, it has stood in third place with regard to wine production (much of the grapes it grows find their way into brandy). However, it looks like this ranking is about to change, with Spain earning the #2 spot currently held by France.

At the moment, Italy is the biggest producer of wine in the world, with annual production at 60m hectoliters. France produces approximately 53m hectoliters and is expected to drop to ~44m over the next several years, giving Spain, which averages 45m hectoliters, the opportunity to take the lead over France.

Of course, production volume is not correlated to production quality, so it is not necessarily a win for Spain or a loss to France if these expected rankings come to pass. However, it is somewhat interesting in that France has long been the gold standard in wine, with French imports attaining the top spot in many markets. But, as evidence of this shift in power, in the UK, US imports now outnumber French imports in terms of sales. Further, as production levels change, it is likely that many new wines from Spain will find their way onto our shelves. This may prompt more consumers to learn about Spanish wines.

In fact, Wines from Spain and other affiliated organizations have been actively promoting a variety of Spanish wines to both consumers and the trade. In particular, events on Navarra, Rioja and Murcia were held earlier in 2008, as was a special presentation and tasting of wines from the up and coming region of Castilla y Leon.

Modern wine practices have taken hold in Spain with many wineries having renovated and revamped in the past several year. Yet, although top Riojas can be quite pricey, most of the wines coming out of Spain represent a good quality to value relationship. Moreover, it is exciting to watch many of these emerging regions come into their own as they find their footing in the marketplace. Overall, consumers will benefit as the diversity of Spanish wines are made available to them.

DWS — Done, with success

As I have chronicled previously, I have been pursuing the Wine & Spirit Education Trust’s rigorous course of study leading to the Diploma of Wine & Spirits (DWS). This two-year program comprises 6 units, which essentially covers all aspects of the wine and spirit industry from production to sales and marketing.

In April, I submitted my final two papers — one on the history and current outlook on wine co-operatives and the other on the supply and demand issues regarding Champagne. Since the papers are submitted for a specific deadline and are then sent to London to be graded with submissions from students from all around the world, the turn-around time is a bit long.

Finally, I received notification last week that I had earned a Pass with Distinction on my co-opertives paper, which included a case study on Nicolas Feuillatte, and a Pass with Merit on my Champagne paper. Then, earlier this week, I received a second letter acknowledging my successful completion of the full credential and my right to use the post-nominal, DWS, after my name. I am one of 6 to have completed the Diploma this cycle and one of 20 for the year (within the U.S.).

I am proud of my accomplishments and, while I will not rest on my laurels — the world of wine is always changing and thus requires continuous study — I am looking forward to taking a break from formal study. However, I do anticipate a return to pursue the Master of Wine credential at some point in the future.

~Tracy Ellen Kamens, Ed.D., DWS

Investment Analysis

Depending upon your en primeur agent, you should be receiving your 2005 Bordeaux futures sometime this summer. As noted previously, we purchased several wines for this much hyped vintage back in July 2006. The current (March 08) issue of Decanter has two articles from its tasting panels featuring this vintage — one on St.-Emilion and the other on the Cru Bourgeois (the classification of which, by the way, will be reinstated in 2009).

The panel was generally pleased with the wines and I noted that one of my Futures picks was listed among the Recommended wines with 16.4 points (of 20), just shy of their cut-off (16.5?) for Highly Recommended. The wine in question, Chateau Beaumont of the Haut-Medoc, received a very nice tasting note, noting that it should be held for 5-10 years and that there was more to come from this wine. The entry heralded the wine as a good value and listed the price at 8-9.5 British Pounds per bottle.

I was delighted to read the news and was compelled to look up our pending inventory to compare. We had purchased a full case, which we have listed at $12.50/bottle. A quick currency conversion indicated that the price in Decanter was $16.00-$18.85. But, what was it going for in the U.S.? I did a quick search on Wine Searcher and found the wine listed at $19.99/bottle at Star Liquors. Wine Library had it listed as out of stock, but their website also showed a sale price at $19.95 from $26.95/bottle.

Consequently, at an average price of $19.00, my investment has increased by ~50%, which I must admit, is much better than I have done in the stock market lately. So, I’m feeling good about the purchase. Of course, I didn’t buy the wine as an investment, but as Sherry-Lehmann has had my money since July 2006 (and the Bordelais have had Sherry-Lehmann’s money), I’m pleased to see that I wouldn’t have been any better off in investing my money elsewhere and buying the wine upon release instead.

Decanter did not include Chateau de Fonbel, of which we also bought a case, among its St.-Emilion tastings, but Wine Searcher and other internet searches yielded similar price increases for this and the other handful of bottles we purchased. I am looking forward to taking delivery of the wines in July, but will have to continue to wait to try them, or at least the Beaumont, for another few years, by which time the wines should have continued to increase in complexity, if not value. A wise investment indeed!

Booze on a Cruise

I recently took my first cruise vacation, which had some interesting experiences when it came to wine.

The wine list was an adequate mix of Old World and New World wine regions, with no particular strengths. However, we were a little surprised that there were no vintages listed with any of the wines. For some of the wines, we didn’t really care, but for others, we asked our server to confirm the vintage before placing our wine order. We surmised that this omission might be due to a need for flexibility in the ship’s inventory, but while it was annoying to have to ask, the information was correctly provided and there did not appear to be any deception going on.

Another surprise, but quite pleasant, was the fact that the ship used quality crystal stemware (Schott Zwiesel) for its wine service.

The mark-up appeared to be reasonable (we estimated it to be about double the retail price), especially considering that you are a captive audience; you can’t go elsewhere to buy wine. In fact, you can’t bring wine on-board. Your luggage is screened upon boarding and any alcoholic beverages will be seized until the cruise ends. I think that you might be able to pay a $25.00/bottle corkage fee to release your wine, but the policy does explicitly state that no alcoholic beverages may be brought onboard. 

On the second night of the cruise, we ordered two bottles of wine with dinner — one white and one red. At the end of dinner, neither bottle had been finished, but we were able to have the restaurant store our wine for us, with the ability to retrieve it at lunch or dinner, in any of the ship’s restaurants. This was a nice feature since there weren’t any half-bottles on the wine list.

We generally ordered wines in the $30-$50 range, but our one big splurge was a bottle of semi-mature Bordeaux, 1996 — our anniversary year– which we enjoyed on our night in the French cuisine specialty restaurant. It was probably not the wisest idea, but we got caught up in the sentimental moment. After our sixth bottle purchase, the seventh bottle, priced at or below the average price paid for the initial six wines, was free.

We had requested to see the ship’s wine cellar, but upon making an appointment to meet the beverage manager, were informed that the cruise line’s policy did not permit guests to visit the back-of-the-house areas. Consequently, we were unable to get information on turnover rates or on how the wine is stored with respect to countering the ship’s vibrations. However, I did find an interesting wine rack accessory product on the web — bottle retention straps — which the manufacturer touts as useful on cruise ships and in earthquake-prone areas.

Your WSET Study Buddy

I have received a number of inquiries from fellow WSET Diploma candidates about their studies. As I suspect that these students are not alone in their questions, I am sharing the following advice.

Unit 2 (Viticulture and Vinification) is the first unit presented and a prerequisite for moving ahead with the other units. Your knowledge on this unit is evaluated by a multiple-choice exam that is very challenging. You really need to study and prepare to recognize and understand detailed information to pass this exam as the answer choices provided do not lend themselves to easy guessing.

If possible, I would suggest that you take Unit 3 (Light Wines of the World) before Units 4, 5, and 6 so that you can complete this most challenging unit before moving on. Do NOT study for Unit 3 at the same time as you study for Units 4, 5 & 6 unless you are masochistic, unemployed or are just plain crazy : )

Units 4, 5 and 6 can be taken concurrently, although you may find it a little easier to balance your study load if you take only two of the three at the same time. Unit 4 (Spirits) is generally more challenging than Unit 5 (Sparkling) or Unit 6 (Fortified), but everyone has their own strengths and weaknesses. I think that it is helpful to keep in mind that these units differ from Unit 3 in that they focus heavily on differing production methods. If you take these exams in November, start studying in the summer to provide yourself with a lengthier study period.

The format for Unit 1 (Coursework Assignments) is being revised. If you are working under the previous format, I would suggest that you submit only one paper at first so that you can use the feedback provided from that paper to guide you in completing the other assignments.

As for hints, study aids, etc. , I suggest the following:
1) Review questions from all of the past exams (see WSET website – DWS student section) – this will familiarize you with the types of questions you will find on the exams and you can use them as practice questions while you study. These are essay exams, so you should also practice writing out answers under simulated exam conditions (closed book and timed).

2) Review the annual Examiner’s Report from past exams (see WSET website – DWS student section) – This will provide you with some idea as to what kind of an answer they are looking for, along with information on how to answer the tasting portion as well. This also helps you identify what traps to avoid as the Report comments on mistakes made by students, many of which are repeated time and again, much to the chagrin of the examiners.

3) Comparative taste as much as possible, preferrably under blind conditions. For example, I was a self-study student for Unit 6, so I purchased 8 different fortified wines and tasted them all blind in a single tasting session. The study guides have suggested wines with which you should become familiar.

4) Participate in the DAPS program if it is available to you (they will send you practice questions, which you answer under exam conditions and send back for feedback).

5) Review the questions and answers in the study guide – they just might show up on an exam.

6) If possible, find a study group and meet weekly to taste flights of wine as well as to review information, clarify points of confusion and keep you focused.

7) Commit the WSET Systematic Approach to Tasting to memory, so you make sure you comment on all aspects of the wine and don’t lose points on the exam. I would suggest that you take all of your wine notes in this fashion between now and then to practice, especially since you need to get this down to 5-10 minutes per wine.

8) Organize your notes on index cards and carry them with you whenever possible. You can then review your notes while waiting for elevators, commuting on public transportation, standing on line, etc.

9) Do not wait to the last minute to study. There is too much information, especially for Unit 3, so you really need to be studying and reviewing the material over several months.

10) When in doubt, always return to the 6 factors (climate, soil, annual weather, grape variety, viticulture and vinification) + legal & trade structures and market issues.

And the envelope please…

I returned home from vacation this weekend and found an evelope from the Interantional Wine Center waiting for me among all of the snail mail. It contained the results from my Unit 6 exam taken in November 2007 and revealed that I had Passed with Merit. This was my final exam for the WSET Diploma of Wine and Spirits credential.

However, before I can be completely done, I need to submit two more research papers for Unit 1. The papers, known as Coursework Assignments, are written on given topics and specifications and can be submitted in November or April. In May, the new set of topics is posted to the WSET website.

I spent the week between Christmas and New Year’s working on these two remaining papers, finishing one on Champagne Supply and Demand and the other on the Cooperatives in the Wine Industry. As they are not officially due until April, I will wait until March to see if they need any additional revisions based on current events and will then send them to the International Wine Center. I anticipate receipt of those scores in June or July, which, presuming that I successfully Pass both assignments, will be accompanied by notification of my achievement of the DWS credential.

In the meantime, I need to spend time studying my varietal identification in anticipation of an April test date for my re-take of that section of the CWE exam.