Worldbeat - changes in the international wine market

Ed Everett of New World Wines in San Francisco is a veteran observer - and active participant - in the world wine market. During a recent lunch meeting, WorldBeat sounded out Everett on the global situation.

He believes the most dramatic change is coming up in Asia. "We've been talking about the Pacific Rim and Asian market for years, but it is beginning to reach critical mass. There is a huge demand for wine in China, although most of that demand is for inexpensive wines. I believe that if it hadn't been for shortages in California we could have sold much more wine in China last year."

Everett believes that it is the California image that helps sell wine in Asia. Everett believes that it is important that wines be linked to a particular place and soil. He agrees that many "international" brands that obscure their place of origin are successful, but in the long run, to establish brands and markets, wines should be site-specific. "If not, you are at the mercy of the international commodity market," he added.

"In our own business, we are very strict believers in marketing and packaging that is true to the country and region of origin. I have a prejudice against trying to sneak up on the consumer with American-sounding names for products from elsewhere. Yes, it does work, but I would prefer to present a wine that maintained an integrity of place. Not only that, but it is more fun for the consumer to shop a shelf with a range of interesting and maybe even exotic labels and origins," Everett said.

A joint venture called Euro Vintners between New World Wines and Worldwide Capital is now importing Vesella Vineyards wines from Bulgaria. It's part of an overall effort to privatize and modernize the Bulgarian wine industry which now is chiefly coop-centered.

"Bulgaria has about the same acreage and production as Chile and has more Cabernet Sauvignon planted than any other country in the world. Wine is a major part of the economy there. Until recently, Bulgaria bartered wine with the Soviet Union for oil and now that's all gone, of course, so they are looking for new markets. The World Bank is helping the industry there become internationally competitive."

Bulgaria currently ranks as the seventh largest wine exporter in the world. Shipments to the United Kingdom alone amount to over three million cases annually and exports to Scandinavia, Germany, Belgium, and the Netherlands are particularly strong.

Everett said the situation in Bulgaria was interesting because the industry there was French-oriented. "Bulgaria is the world's largest producer of attar of roses which they sold to the French perfume industry. In return, they received grape vines and viticulture and ecological technology as part payment."

Everett is importing a Merlot and Cabernet Sauvignon from Bulgaria under the Vesella label. Vesella is a common name for women in Bulgaria and the brand's name is based on a Bulgarian woman involved in the joint venture.

He is optimistic about Bulgarian wines, and should the relatively small initial offering of about 3,000 cases do well, he is looking at other varietals, including a white wine. The present imports are priced to sell at full retail in the $4.99 range. He has also sampled some Bulgarian brandy which is of very good quality and could be competitively priced.

"Bulgarian wines are capable of doing very well in the world market. They start out with excellent fruit and good flavors."

True to Everett's belief that the wine should reflect its place of origin, the Vesella wines are presented in a colorful ethnic package, reflecting patterns of ancient Bulgarian embroidery.

Another recent New World Wines import is Vina Evita from Argentina. The packaging is stylized and reflects the cosmopolitan and fashion-conscious culture of Buenos Aires and Evita Peron, the former Argentine leader and the subject of a recent film starring Madonna.

While Everett would no doubt have welcomed an Academy Award for the film to help boost sales, the brand is not a one-shot deal, tied to the movie. The first bottling, in California, was 12,000 cases. The second bottling will be in Argentina and Everett plans to add Cabernet Sauvignon to the line. He believes Argentine wines have enormous potential in the global market.

Asked about the situation with many California wineries importing bulk wine from South America or Europe or establishing their own import divisions, Everett said while shortages may have inspired some of that activity, it was "a very good business decision. A moneymaking decision."

Resources:

Euro Vintners and New World Wines can be reached at 2 Henry Adams St., M58, San Francisco, Calif. 94103; tel: (800) 334-9453; (415) 863-2220; fax: (415) 863-7176.

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