Objectives

2. Objectives • After reading this chapter, you should be able to • outline the history of winemaking in Chile and Argentina. • describe the climatic conditions of the grape-growing regions in Chile and Argentina. • discuss the role that wines from Chile and Argentina play in the global wine market. © 2007 Thomson Delmar Learning. All Rights Reserved.

3. Introduction • Chile and Argentina are located in the Southern Hemisphere’s temperate zone, which gives them the proper climate for growing grapes. • Both countries have a long history of winemaking going back more than 450 years. • Although Chile and Argentina have a common border, the Andes Mountain range that lies between them separates them both physically and culturally. © 2007 Thomson Delmar Learning. All Rights Reserved.

4. Introduction (continued) • The partition by the Andes Mountains has allowed each country to develop its own unique style of winemaking. • For most of the twentieth century their winemaking was targeted toward domestic markets, making inexpensive table wines. • In recent years domestic consumption has declined, and great effort has been made in improving vineyards and winemaking techniques. • This allows their wine to compete on the world market. © 2007 Thomson Delmar Learning. All Rights Reserved.

5. Chile • Chile is the world’s eleventh largest producer of wine, bottling about one-fourth as much as the United Sates. • Possessing the proper terroir to produce fine wines, it has grown dramatically to meet the demand brought on by the increasing world market for wine. • The acreage of vineyard land in Chile expanded by more than 40 percent from 1997 to 2002, with new plantings of classic varieties such as Cabernet Sauvignon, Merlot, and Chardonnay. © 2007 Thomson Delmar Learning. All Rights Reserved.

6. Chile (continued) • These grapes from new vineyards have been going to more modernized wineries, producing wines targeted specifically for the export market in Europe and North America. • The low cost of land and labor allows Chilean vintners to keep their prices low, and inexpensive wines are their primary export. • As the industry is maturing, reserve style wines are becoming more common as Chile attempts to move into the high-end wine market. © 2007 Thomson Delmar Learning. All Rights Reserved.

7. Chilean Wine—Historical Perspective • European grapevines were brought to Chile by the Spanish who also introduced it to the rest of Latin America. • As was the case in California, wine was important as both a beverage and for sacramental purposes. • In the 1540s, former conquistador Francisco de Aguirre established the first vineyard in La Serena. • The most popular grape was the País variety. • Similar to the Mission variety, it is a red grape that produces well but makes a rather flavorless wine. • As late as 1997, País made up 25 percent of the grape harvest. © 2007 Thomson Delmar Learning. All Rights Reserved.

8. Chilean Wine—Historical Perspective(continued) • Over the next three hundred years, winemaking developed very slowly in spite of the excellent growing conditions. • Two main factors contributed to this slow progress. • It was difficult to expand vineyards beyond the area around Santiago into outlining areas due to the frequent raids and attacks by indigenous Indian tribes. • There was a small domestic market, and exporting the wine was difficult. © 2007 Thomson Delmar Learning. All Rights Reserved.

9. Chilean Wine—Historical Perspective(continued) • During the sixteenth and seventeenth centuries, vineyard land expanded, and Chile began exporting wine and brandy. • Spain originally encouraged the export of wine, but Spanish winemakers became upset when Chilean exports became a threat to their business. • In 1774 the Spanish king forbade the export of any wine from Chile to other Spanish colonies. • In 1822 Chile won its independence, ushering in a new era in winemaking. © 2007 Thomson Delmar Learning. All Rights Reserved.

10. Chilean Wine—Historical Perspective(continued) • In 1830 an agricultural station was established to teach and conduct research on how to improve grape growing and wine production. • In 1851, Don Sylvestre Ochagavia imported French varieties for his vineyard, the first planting of traditional vinifera grapevines in Chile. • In the late nineteenth century, there was rapid expansion of vineyards planted to European varieties and improvement in winemaking techniques. • During the period from 1850 to 1890, some of Chile’s most famous wineries were established. © 2007 Thomson Delmar Learning. All Rights Reserved.

11. Chilean Wine—Historical Perspective(continued) • In the 1880s, while phylloxera decimated the vineyards of Europe, wine from Chile was used to fill the demand. • The root louse was never introduced to Chile, and today it is one of the few grape-growing regions that vines can be grown on their own roots. • By the 1930s demand had slowed, and Chile enacted prohibitionist laws to restrict the production of wine. • After the World War II, the export market continued to decline and the restrictive laws remained, holding production steady until the laws were repealed in the 1970s. © 2007 Thomson Delmar Learning. All Rights Reserved.

12. Chilean Wine Today • At the early 1980s, Chile was plagued by overproduction and poor quality wines. • The wineries of Chile dealt with the situation by concentrating on improving their product through modernization and emphasis on the exports. • This course of action was successful because Chile possessed the conditions for success: • a good terroir for growing wine grapes • a low cost of labor allowing the wines to be attractively priced on the world market © 2007 Thomson Delmar Learning. All Rights Reserved.

13. Chilean Wine Today (continued) • During the 1990s, the value of Chilean wine exports grew from $30 million to $600 million. • The number of wineries that exported also rose; however, the country remains dominated by large wineries. • Although the overall quality of Chilean wine has greatly improved, there are two distinct types of wine: • one inexpensive made primarily for the domestic market • one made from classic varietals for the export market • Today Chilean wines have gained a reputation for both quality and value. © 2007 Thomson Delmar Learning. All Rights Reserved.

14. The Wine Regions of Chile • Chile lies on the strip of land between the Pacific Ocean and the Andes Mountains. • More than 2,800 miles long, it averages only about 115 miles wide. • It has a great range of climates, from deserts in the north to rain forests in the south. © 2007 Thomson Delmar Learning. All Rights Reserved.

15. The Wine Regions of Chile(continued) • The middle of the country has a Mediterranean climate that is ideal for wine grapes. • Most of the vineyards are located in an area that begins 100 miles north of the capital Santiago, and runs for 400 miles south. • The Pacific Ocean also influences a vineyard’s terroir, depending on its distance inland. © 2007 Thomson Delmar Learning. All Rights Reserved.

16. The Wine Regions of Chile(continued) • Chile’s wine country is divided into five major grape-growing regions. • From north to south they are the: • Atacama • Coquimbo • Aconcagua • Central Valley • Southern Valley © 2007 Thomson Delmar Learning. All Rights Reserved.

17. The Wine Regions of Chile(continued) • These major regions are separated by a number of river valleys that run from east to west, which drain the runoff from the Andean Mountain Range. • These river valleys form eleven sub-regions that are broken up into a number of zones and areas. This is similar to the Australian system of appellations. © 2007 Thomson Delmar Learning. All Rights Reserved.

18. Chilean Wine Law • Chilean law states that for a wine to be listed with a specific geographical area, it must be made using at least 75 percent of grapes grown in that area. • The 75 percent requirement also applies to the vintage and variety listed on the label. • Wine made for export follows the European standard of 85 percent for variety, region, and year. © 2007 Thomson Delmar Learning. All Rights Reserved.

19. The Atacama and Coquimbo Regions • The two northernmost regions, Atacama and Coquimbo, have a history of winemaking and viticulture that goes back to the sixteenth century. • They are hot and dry and are considered too warm for the production of grapes for table wine. • Although there are still several wineries in the Coquimbo region, the vineyards mainly produce table grapes or grapes that are used for the production of Pisco, a type of brandy. © 2007 Thomson Delmar Learning. All Rights Reserved.

20. The Aconcagua Region • The Aconcagua Region is the northernmost of Chile’s table wine regions. • It is made up of two subregions, the Aconcagua and Casablanca Valleys. • The Aconcagua River Valley lies about 60 miles north of Santiago. • It is best known for growing red grapes such as Cabernet Sauvignon. • The first wine grapes were established by Maximiano Errázuriz in 1870, and today is one of Chile’s largest producers. © 2007 Thomson Delmar Learning. All Rights Reserved.

21. The Aconcagua Region (continued) • The Casablanca Valley lies on the coast about 50 miles west of Santiago. • Viticulture is new to the area, with the first vineyards having been planted in 1982. • Casablanca has had rapid growth and now has four times as much acreage as the Aconcagua Valley. • Because it is near the ocean, the climate is very cool. • The cool weather makes the Casablanca Valley ideal for Sauvignon Blanc, Chardonnay, and Pinot Noir. © 2007 Thomson Delmar Learning. All Rights Reserved.

22. The Central Valley Region • The Central Valley is Chile’s largest viticultural region. • It is made up of four subregions; from north to south they are the Maipo, Rapel, Curicó, and the Maule. • The Maipo was also one of the first viticultural areas in Chile established in the sixteenth century. • Just south of the Maipo region is the Rapel Valley with a somewhat maritime climate. • The Rapel Valley has grown in recent years, primarily in red grapes, including Carmenére. © 2007 Thomson Delmar Learning. All Rights Reserved.

23. Carmenére • Carmenére is a red grape that is similar in taste and appearance to Merlot and is rarely cultivated outside of Chile. • Also known as Grand Vidure, prior to the outbreak of phylloxera it was popular in the Bordeaux region of France, but due to low yield it was not replanted. • Merlot and Carmenére were often confused, and in the 1990s most of what was thought of as Merlot in Chile was determined to be Carmenére. © 2007 Thomson Delmar Learning. All Rights Reserved.

24. The Central Valley Region • The Curicó subregion is centered around the town of Curicó 120 miles south of Santiago. • Red and white varieties are grown here in roughly equal proportions. • The Maule River Valley is the southernmost appellation in the Central Valley. • The valley has the most acreage of any region in Chile with more than 41,000 acres. • Chardonnay, Sauvignon Blanc, and Merlot are significant, and País is still grown for the domestic wine market. © 2007 Thomson Delmar Learning. All Rights Reserved.

25. The Southern Region • The Southern Region is made up of the Itata and the Bío-Bío river valleys. • The Itata River valley has been growing grapes since the Spanish colonization and has 17 percent of Chile’s vineyards. • The Bío-Bío River valley is the most southern and coldest of Chile’s wine appellations. • Cool climate varieties such as Pinot Noir, Chardonnay, and Gewürztraminer do best. © 2007 Thomson Delmar Learning. All Rights Reserved.

26. Argentina • Argentina has over one half a million acres in grapes, nearly twice as much as Chile. • Investment in Argentina has come slowly due to the unstable economic situation. • Like Chile in the 1990s, investors are beginning to be drawn to the country to take advantage of the low cost of vineyard land and labor. • However, modernization is coming slowly and the majority of the wine made is destined for the domestic market for inexpensive wine. © 2007 Thomson Delmar Learning. All Rights Reserved.

27. Argentine Wine—Historical Perspective • The first grapevines were introduced to Salta, Argentina, from Chile in 1556. • Vineyards were soon established to the south of Salta around the town of Mendoza. • Here the native variety Criolla, which is similar to the Chilean País, was widely planted. • After independence in 1816, a new wave of immigration from Europe brought in new residents, forming a healthy domestic market for wine as well as winemaking expertise. © 2007 Thomson Delmar Learning. All Rights Reserved.

28. Argentine Wine—Historical Perspective(continued) • In 1853, Argentina established a school of agriculture in Mendoza and taught modern winemaking techniques. • There were many irrigation projects completed during this time, which allowed the expansion of vineyards. • The industry continued to grow and have a strong export market until the depression of the 1920s. • Phylloxera was introduced during this time, and growers responded quickly with the widespread use of grafting and rootstocks. • Phylloxera still exists in Argentina today, but it is not widespread, and most vines are own-rooted. © 2007 Thomson Delmar Learning. All Rights Reserved.

29. Argentine Wine—Historical Perspective(continued) • Since the 1920s, Argentina experienced severe economic and political instability, which adversely affected development. • Wine consumption remained strong, and a great deal of mediocre wine was produced for the domestic market. • Per capita wine consumption declined from over 23 gallons per year in 1970 to less than half that amount in 1997. • In the 1980s there was severe overproduction and 36 percent of Argentina’s vineyards were taken out of production. • Vineyard acreage has declined, but Argentina remains the fifth largest producer of wine worldwide. © 2007 Thomson Delmar Learning. All Rights Reserved.

30. Argentine Wine Today • Today Argentina has realized that its wine future lies in the export market. • Like Chile, Argentina has the proper terroir for growing grapes and a low cost of land and labor. • This has spurred new development and has attracted international investors in spite of the unstable economic situation. • Currently Argentina remains in the shadow of Chile on the international wine market, exporting 7 percent of its production compared to Chile’s 54 percent. © 2007 Thomson Delmar Learning. All Rights Reserved.

31. The Wine Regions of Argentina • Much of Argentina’s viticultural regions lie on the eastern slopes of the Andes Mountain range. • Being in the rain shadow of the mountains, the climate is drier and warmer than what is found in Chile. • Most vineyards are irrigated and are planted at higher elevations to help keep the vineyards cool. • Argentina also has more of a continental climate and less of maritime influence than Chile does. • Argentina’s vineyards experience more difficulties with spring frosts, hail, and heat than Chilean vineyards. © 2007 Thomson Delmar Learning. All Rights Reserved.

32. The Mendoza Region • The Mendoza is the largest appellation in Argentina at 58,000 square miles and has 75 percent of the country’s vines. • The appellation is centered around the city of Mendoza which is only about 150 miles east of Santiago. • The elevation ranges from 2,000 to 3,000 feet and this altitude helps keep the vineyards cool. • Mendoza is one of Argentina’s best appellations for quality and has more than 1,000 wineries. • Mendoza contains the subregions of Agrelo, Luján de Cuyo, San Rafael, and Tupungato. © 2007 Thomson Delmar Learning. All Rights Reserved.

33. The Mendoza Region (continued) • The Mendoza region is planted to classic European cultivars as well as Criolla, but it is best known for Malbec and Torrontés. • Malbec is a grape that is native to the Bordeaux region. Considered to be a lesser grape in France, Malbec flourishes in its adopted home of Argentina. • Torrontés is a white grape native to the Rioja region of Spain. Like Malbec, it is better known in Mendoza than it is in its native country. It produces light-bodied wines that have a fragrant aroma. © 2007 Thomson Delmar Learning. All Rights Reserved.

34. The San Juan Region • The San Juan region lies north of Mendoza and is Argentina’s second largest grape appellation, producing nearly 20 percent of the countries grapes. • Being closer to the equator, it is warmer than Mendoza and is best known for making average wines for domestic consumption. • The San Juan region contains about 250 wineries, and the warm climate is ideal for making dessert wines as well as brandy. © 2007 Thomson Delmar Learning. All Rights Reserved.

35. The La Rioja and Salta Regions • The La Rioja region lies between the San Juan region on the south and the Salta region to the north. • The climate is warm and dry, but the wines are generally of better quality than those in the San Juan region. • The Salta is a small appellation in the north of the country located at a latitude of about 25 degrees south. • The vineyards are planted between 5,000 and 6,800 feet, making them some of the highest in the world. • The high altitude makes the terroir very cool. © 2007 Thomson Delmar Learning. All Rights Reserved.

36. The Rio Negro Region • Located in the far south of Argentina’s wine country, Rio Negro is a cool region. • It has a long growing season with plenty of sunny days in which cool climate varieties such as Sauvignon Blanc and Chardonnay do well. • Pinot Noir also does well here and is grown for both table wine production and as a base for sparkling wine. • There are relatively few acres in production; however, vineyard land is expanding. © 2007 Thomson Delmar Learning. All Rights Reserved.

37. Summary • Chile and Argentina have the terroir to match some of the world’s best wine-growing regions. • In the past their potential has not been realized due to restrictive laws, unfavorable economic conditions, and a lack of modernization. • Chile was the first of the two to look outward to the export market to deal with its expanding production and declining national consumption. © 2007 Thomson Delmar Learning. All Rights Reserved.

38. Summary (continued) • Chile’s efforts have been met with success, and much more of Chile’s wines are exported even though it produces less than Argentina. • Argentina is attempting to modernize its vineyards and wineries to make better wine for export. • Both countries have come far in recent decades and have achieved a reputation for producing quality wine at a good value. © 2007 Thomson Delmar Learning. All Rights Reserved.