According to Ricardo Santos, Argentinian wine-producers are responsible for making Malbec more than just a fad in United States.“Malbec Boom … and Bust?” was the title of an English article written by an economist in United States. This calls readers’ attention and makes them read the article carefully and with some concern.
Mike Veseth -Professor of Economy at the University of Puget Sound, in Washington, United States- has written a lot about wine, always making reference to its marketing. Veseth is amazed to notice that while total wine consumption in the US market increased 3% in over a year and up 3.5% in dollar value in the last quarter, Argentinian wine sales are up 41.4% for the year and 36.6% in the last quarter. Moreover, Chile only increased 5% and South Africa and Australia’s dollar volume sales fell. Only New Zealand is near this sales growth, though not so much, with an 18% increase in the last quarter.
To justify his concern, Veseth explains that economics should see potential storm clouds even in a bright day. In 2007, predictions forecasted a supply shortage for 2010, but this did not take into account the great recession in the middle. Today, wine surplus is mainly the overhang from previous years and not the consequence of current decisions. Data suggests that vineyard plantings are down. The reference to the cobweb model is inevitable. It is an economic model based on a time lag between supply and demand decisions, as a result of changes in prices. In agricultural markets the cobweb model might apply, since the lag between both decisions is longer and the supply cannot be properly controlled.
There are many factors that have turned Malbec into the fashionable wine in United States; now Argentinian wine-producers are responsible for making Malbec more than just a fad in the US market. One of these factors is, undoubtedly, the good quality-price ratio that characterizes most Malbec, a decisive factor when consumers are looking for a certain wine or wine style. Nevertheless, leaving aside the marketing or economic factors why professor Veseth is worried about, there are some organoleptic factors that will make wine last and grow in consumption.
Among European wines, there are two regional styles that mark differences. Some wines are identified by their tannins and some others by their acidity. The wines coming from Burgundy, the North of Italy and Spain have a characteristic acidity, which is well known by the local people and by those consumers who are open-minded about trying and enjoying new products.
However, most of consumers from non-producing countries prefer Bordeaux wines, which grapes have characteristic tannins. In the film “Sideways”, a character recommends Pinot Noir instead of Merlot to his partner; this recommendation influenced all US consumers who started drinking Pinot Noir out of curiosity. Slowly, many consumers are drinking again the wine they really enjoy: a Bordeaux wine.
Among the Bordeaux-style varietals, Malbec is the one with fewer tannins so astringency is not so noticeable as in other varietals. That astringency is not even noticeable in styles looking for a more concentrated and oaky Malbec; astringency disappears slowly in bottle-aged wines once tannins are transformed and precipitated. This Malbec’s special feature is found, almost exclusively, in Argentinian wines. Those who have tasted French or Chilean Malbec may have noticed that tannins are more similar to those on Cabernet Sauvignon or Merlot.
In US wine fairs, young consumers are pleasantly surprised when they drink their first glass of Argentinian Malbec. Those who have experienced this may confirm it.
Malbec is well known by consumers; they have heard about it and are curious to try it. Let’s consider that total Argentinian wine exports stand for 5% of total wines exports worldwide, half of these exports are Malbec, which means 2% of the total exported wines. If we think this is the moment to give up, we are completely wrong.
Written by Ricardo Santos for Winesur.com
Translation: Ana Tagua
Source: http://www.winesur.com/top-news-2/malbec-boom-or-bust
