AROUND THE WORLD: July 2007

New lease of life for Leasingham: Australian winery unveils new packaging  to reflect its position and heritage, plus news from Mexico, France, Portugal, US, South Africa and England

Australian winery unveils new packaging  to reflect its position and heritage
Leasingham has unveiled new packaging for its entire range of wines to give greater shelf standout and visibility in-store, and to reflect its position as a modern day classic brand. The redesign is also intended to more clearly communicate the premium quality and heritage of each range.

Leasingham Winery was established in 1893 and is now recognised as a pioneer and champion for the Clare Valley. Leasingham was responsible for planting the region’s first Riesling and winning its first Jimmy Watson trophy – the holy grail for Australian reds. The new packaging assists Leasingham in communicating its “ownership” of Clare Valley – classic Clare Valley settings reveal people “experiencing” rather than just drinking the wine.

Clare Griffiths, vice president, brands marketing, Constellation Europe, comments: “Each range has been redesigned to epitomise the classic, traditional, and historic values of the brand, integral to Leasingham, yet with no compromise to the quality of these award winning wines.

“The new packaging for the Bin range will add to the appeal of each quintessential, traditional Clare Valley varietal and the Classic range re-design will reflect the wines’ unique status. The Magnus range, named after one of the founders, Magnus Badger, is a tribute to the brand’s history and, after success in the USA, the new packaging for the Riesling, Shiraz and sparkling Shiraz will be rolled out globally.”

Tequila shortage predicted
Further effects of the US government’s promotion of biofuels in an attempt to reduce its reliance on other fuels are becoming evident, most recently in Mexico.

US plans to substitute gasoline with corn-based fuels have caused corn prices to rise significantly, leading to a number of Mexican farmers abandoning agave in favour of this more lucrative crop.

A current oversupply of the plant, which is used to produce Tequila, is further motivation for the switch. It is being predicted that this will eventually lead to a shortage of agave, and therefore Tequila. Official predictions are that farmers will plant 25-35% less agave in the coming year.

The rising price of corn is just one indication of the more general increases in food prices that can be expected as a result of an increased emphasis on producing fuel from various crops.

Supplies of agave were last threatened in 2000 as a result of widespread disease. Extensive replanting took place in 2002, leading to the current oversupply.

Wine militants threaten action
Wine militants in the Languedoc have issued a video demanding more support from France’s president, Nicolas Sarkozy.

The statement was made by a number of men in balaclavas claiming to represent the Comité Régionale d’Action Viticole (CRAV). The recorded statement was broadcast on the France 3 television channel.

The group warned that “if in one month nothing has changed and prices have not risen, then the winemakers will emerge … and act”. It went on to appeal to winemakers to take action, saying: “We call on you to revolt. We are at the point of no return.”

A number of producers in the area have experienced losses in the last year. CRAV, believed to be active since 1907, typically fights price reductions by merchants and supermarkets.

This year marks the centennial anniversary of the winemakers’ revolt in the area, involving hundreds of thousands of winemakers, and resulting in the involvement of army troops and the killing of six protesters.

EU proposals for the reform of the wine sector are due to be announced on July 4.

Faustino hires top architect for new winery
Norman Foster, the architect responsible for projects such as the Hong Kong International Airport ans the Millennium Bridge, has presented plans for the new Faustino Group winery, due to be completed in spring 2008 (pictured below).

Work has already begun on the E25 million project, located in Ribera de Duero, 150km from Madrid. Visible from the main road linking Madrid to Bilbao, the winery is being constructed from oak, steel and glass.

The design makes use of gravity for the flow of wine; vehicles carry grapes access the winery via the building’s roof. The building also makes use of solar power. Parts of the winery will be underground. According to Foster + Partners: “The visible impact of the building is reduced and the passive environmental benefits are maximised, as the concrete structure uses thermal mass to control the internal atmosphere.”

The winery itself, covering 11,300 square metres, is divided into three wings, separating fermentation, barrel ageing, and bottle ageing, controlled from a hub at the centre, where a visitor’s centre will also be located. The team from Foster + Parners participated in two harvests with Faustino Group to better understand the winemaking process.

The deadline for completion of the project coincides with the first harvest, when an estimated 1.2 million kilogrammes of grapes will be processed.

The winery falls under Faustino’s new brand, Bodegas Portia. The family-run Faustino Group has seven wineries located in Rioja, Navarra, La Mancha and Ribera de Duero in Spain, and owns 2,000 hectares of vineyards. The group has a winemaking heritage that stretches back to 1861.

Cider sales soar in UK
Recent figures from Nielsen reported growth in the off-trade for a number of drinks categories, but the most significant was the 29% increase in cider sales, moving the booming category to fifth place ahead of ale in the UK.

The figures (MAT 21.4.2007) showed the off-trade cider market to be worth £453 million, compared to ale’s £447m. The on-trade is responsible for an even greater percentage of cider sales – more than two-thirds – and is increasing at a faster rate than in the off-trade.

Number one and two categories in the market, light wine and lager, were up 4% and 5% respectively.

Sparkling wine, in ninth place, also showed positive growth of 10%. Predictably, the RTD market continued to decline at a rate of 9%, now worth £250m.

Overall, alcoholic drinks market figures were positive, with the off-trade showing growth of 4% to reach about £12 billion. The on-trade grew 2% to £21.7 billion.

Wine kills farm worker
A farm worker in the Eastern Cape in South Africa died last month after drinking wine bought from a local store.

The bottle is thought to have been contaminated, resulting in four farm workers feeling “seriously ill”, according to a local police inspector, Gerda Swart.

All four were taken to hospital where one died on arrival, and the remaining three were treated for poisoning. It is suspected that an insecticide may have contaminated the wine, possibly as a result of unclean bottles being used to bottle wine for local consumption.

The insecticide is commonly used on orange groves, common in Kirkwood. Forensic tests are being carried out on the bottles, and police are apparently investigating further.

Belvedere seeks new US supplier
Belvedere Winery, owner of the eponymous vodka brand, is currently searching for a new supplier for the brand in the US.

The winery recently won a court case against Millennium Import, a subsidiary of Louis Vuitton Moët Hennessy (LVMH) and licensee and supplier of the vodka brand.

According to the decision by the US District Court for Northern California, Belvedere Winery had successfully terminated Millennium’s licence to sell Belvedere in November 2005. All subsequent sales were therefore infringements on the winery’s trademark rights.

The company is now using a financial advisor, Perella Weinberg Partners, to “explore strategic alternatives”. It also announced intentions to “launch Belvedere branded spirits in the United States promptly”, according to an official statement.

Animal friendly
Both Coca-Cola and Pepsi have agreed to no longer fund research that involves animal testing. The only exception to this will be where this testing is legally required.

Coca-Cola is said to have been funding research at Virginia Commonwealth University in the US about taste perception in rats.

Another application for animal testing can be to reinforce claims of health benefits.