The Drinks Business - CHILE: Attempting to crack the UK on-trade

Whether it does or it doesn’t, there’s no denying it’s a curious prospect. However, the lack of willingness to feature such a pairing in restaurants is one of the many reasons as to why Cox believes Chile’s progress in the on-trade has, to date, been stilted.

Cox’s frustration at the lack of on-trade presence of Chilean wines has many origins. To begin with, he believes dining establishments often possess a significant imbalance between the dynamism of the food and the dynamism of the wine. According to Cox, places are “so busy mesmerising customers with food creativity, they come to the wine list and then abdicate all creative responsibility”. He continues: “Menus feature the likes of ‘breast-fed lamb served with handmashed-by-my-daughter potato’, but where’s the creativity in the wine list?

“Whoever is making the decisions about listing wine in a restaurant needs to be prepared to take a look at Chile because it has diversity of styles and it’s not a one trick pony.”

Putting his money where his mouth is, Cox is already in the process of improving the on-trade’s focus on Chile by hosting sommelier trips to the wineries. Last year’s trip was such a success, he confirms the programme will be repeated. “We did this to try to get people thinking about the opportunities that Chile presents and to displace any misconceptions. They have to know about the modern Chile, so this [trip] is something with which we will continue.”

The difficulties facing Chilean producers in managing to secure an on-trade listing do not just lie with the on-trade premises. Cox suggests: “I’m disappointed with many on-trade suppliers who don’t seem to have embraced Chile. It’s very hard to make them think it’s a worthwhile country to push [in the on-trade]. It may sound like sour grapes, but I just don’t get that sense of excitement from people in the same way as people were excited about Australian wine over here in the early 1990s.”

The lack of support through suppliers is a tale with which the Chileans are familiar. Agustin Huneeus Junior, president of Veramonte, recognises his brand‘s advantageous position. “There are very few good on-trade wholesalers here in the UK. But we have been very successful with Matthew Clark and have worked with them for 10 years. It’s been a slow process of building the brand up and now half of our UK exports go to the on-trade.”

According to Philip Addis, managing director of Great Western Wine, wine supplier to numerous restaurants, part of Chile’s problem is that it’s a victim of its own success. “Chile can produce quality at a low price point and so traditionally restaurants will list Chilean wines at the first price point, the house red as Chilean Merlot and house white as Chilean Sauvignon Blanc. The restaurant then thinks it’s got Chile covered and looks to ther countries for the rest of the list.”

Eileen Ginger, wine buyer at Whitbread, which owns chain eateries including Beefeater, Table Table and Brewer’s Fayre, confirms Addis’s viewpoint through the exploitation of good value Chilean wines in her restaurants. She says: “Chilean wines have always been workhorses for us being value for money and helping to trade people up from entry-point wines.

This has resulted in our mix of Chilean wines being10.5% of total wine sales, which I think is even higher than the off-trade.” For certain wineries a strong presence in the off-trade can be a distinct advantage when entering the on-trade, as witnessed by Chilean giant Concha y Toro. Its marketing director Jason Duggan explains: “Anecdotal evidence suggests that CyT brands are recognised by consumers as something they have tried before and are therefore a trusted purchase.

Following several years of growth in the off-trade CyT has successfully taken its brands into the on-trade.” The good news for Chile is that there are serious signs of progress. It is one of the four countries in the top 10 to show ontrade growth over the last 12 months.

Moreover, Chile is starting to crack the finer end of the market too, thanks to its increasing diversification of styles and a plethora of new regions. This recognition is mirrored by Great Western Wine’s on-trade clients. Addis states: “The attitude of restaurants[towards Chile] has changed a lot in the last two to three years. They’re now actually a lot more receptive to tasting wines outside of Sauvignon Blanc and Merlot and they’re happy to pay more than £3 a bottle for a Chilean wine, which is good news. The next stage is helping them to get the customers to drink it.”

Eduardo Chadwick, president of Viña Errázuriz, demonstrates proof of the success. “It’s work in progress and requires a lot of education but we’ve grown 15% over the last year in the on-trade. This is a great opportunity for Chile.”

With a portfolio of recognisable brands and a reliable reputation for fruity wines, Chile should and could use both these assets as an opportunity to open doors in the on-trade.

So what styles and/or varieties offer Chile its best prospects for future on-trade success? For Mario Pablo at Casa Silva it must be “a wine that is different, unique and handmade. A good Carmenère is a very good example of this. It has its own identity and it’s fresh with good tannins, but it’s soft and elegant”. Huneeus at Veramonte believes Sauvignon Blanc to be one of the “key drivers” for Chile in the on-trade because “Chile has a broader range of Sauvignon Blanc styles” than say, Cabernet Sauvignon.

However, Américo Hernández from Viña Ventisquero doesn’t name any particular style or variety. He believes the key to successful on-trade listings is having fruit that’s grown close to the sea: “All of our estates are close to the sea with a high variation of temperature so the ripening time is longer and we have very fruity wines.”

At Anakena, sales & marketing director Raul Beckdorf believes its portfolio of different blends, such as the ONA Viognier/Chardonnay/Riesling has been key to its success: “Because of [our] unusual blends we can get good listings in the ontrade, it’s good to be so unique.” This breadth of opinion as to the correct style among producers, and their justification for each answer, proves Cox’s earlier diversification statement, that Chile has plenty to offer on-trade customers.

With off-trade success already in the bag for many Chilean brands, the appeal of the on-trade continues to lure Chilean producers in their droves to this sector. Cox confirms: “More and more people are coming to me to ask how can we target the on-trade.” Daniel Hart, New World buyer at Entoria, which represents Viña MontGras confirms the appeal of the on-trade for his Chilean brand: “MontGras has always had stable growth in the on-trade and these are core qualities for any supplier to consider.”

Meanwhile Hernández at Ventisquero explains the reason behind his desire for ontrade success: “The on-trade is more loyal than the off-trade. If they like your brand they keep your brand. And of course, the returns are better. If you want to meet margins it’s difficult to have a quality wine in the offtrade.

In the on-trade they go with the market.” Cristian Isbej, national sales director UK & Ireland for Viña Undurraga, agrees: “Our investment has been quite high but we think that the only way to adequately compete in a global scenario is to offer high quality wines. So I guess that in the long run, yes, we will get an interesting return on investments.”

As ever, then, it comes down to the subject of money and in today’s climate, a loyal listing, no matter at what price point, must be worth its weight in gold. But there’s still plenty of work to be done, as Cox suggests: “Chile should be in a better gear in the ontrade, it’s getting there, it just needs a bit more oomph.” The kind of oomph that a strong curry and a glass or two of Carmenère might just be able to provide, perhaps?