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Spain's wine industry must restructure but avoid 'trashing vinous treasures', warns MW

Published:  15 September, 2014

Spain has to be very careful not to trash its vinous treasures, warned Justin Knock MW, as the country faces a restructure following a wine glut.

Last year Spain brought in a bumper harvest, which in "normal circumstances" could have been sold off, but was compounded when added to large stocks around the world, Knock said.

La Mancha's distinctive windmillsSpain must be careful that it doesn't destroy its 'vinous treasures' when restructuringSource: DO La ManchaSpain's La Mancha region is producing much of the country's bulk stock, but experts warn that Spain's wine industry must restructure.

Knock, winemaking consultant for Encirc Wines, told Harpers.co.uk that there is some "really bottom of the barrel stuff floating around from Spain", priced at below £3.50 in supermarkets. "No-one's making any money on that - it's only going through to be able to clear tank space," he said.

"People discuss ripping out vineyards and reducing supply but Spain's major problem is usually drought or lack of water. It would be a tragedy if there was a broad acre destruction of some of Spain's old vineyards."

While admitting that pulling up some of the copious Airén vines in La Mancha would be no great loss, he said other regions such as Galicia's Ribeira Sacra should be protected.

"Spain has to be really careful not to trash its vinous treasures," he added. 

"Airén is a filler that finds it way into all kinds of places. It doesn't have any real character."

Knock said Spain could learn from Australia, which was in the same position 10 years ago. After some "careful grubbing up and grafting", the country's wine industry saw a double benefit: dropping the bottom 10% of vines  and allowing the remainder to mature.

He predicted "the New World is positioned for a very good decade - Europe had a good run".

He said that while there had been drops in consumption in France, things were holding up reasonably well in the UK. "There's a gigantic part of the population who will make wine part of their lifestyle. Everyone gets excited about Asia, but the people of the UK and Europe are not going to go away. The enduring interest [in wine] in the UK can be used to benchmark internationally".

"Those very, very cheap wines at under £4 make producers no money, and consumers aren't drinking them because they like the taste." He said the market was primed for a "sangria revival". "It's funny how temporal supply issues drives trends," he added. Knock predicted a boom in flavoured wines, allied to the current overstock issues the market is experiencing. Last year saw huge harvests, and Knock said "we would be better off liberalising that sector of the market and allowing people to make overtly flavoured wines".

Last month Anya Robson of bulk wine broker Murphy Wine Company told Harpers.co.uk: "The Spanish bulk wine industry needs to be restructured internally with a massive plan. Vineyard needs to be ripped out and older growers encouraged to leave early. The plantings need to be modernised with varietals that are in phase with the international bulk markets. The grape Airén cannot match Colombard and Chenin for the consumers demand for  the fruity and crisp flavours . Airén does not produce  base wines that have  high and stable acidity over the year."

Rabobank International's executive director of its Food & Agribusiness Research and Advisory service Stephen Rannekleiv, also told Harpers.co.uk last month that the Spanish wine needs "to be more market driven". He said demand was very soft for traditional grapes such as Airén and even Tempranillo. He added that while the Spaniards are trying to "sort this out", it's "not a process that will happen overnight". 

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