1. Chile and Argentina © 2007 Thomson Delmar Learning. All Rights Reserved. Chapter 14

2. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

3. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

4. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

5. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

6. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

7. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

8. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

9. © 2007 Thomson Delmar Learning. All Rights Reserved. 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. Chilean Wine—Historical Perspective (continued)

10. © 2007 Thomson Delmar Learning. All Rights Reserved. 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. Chilean Wine—Historical Perspective (continued)

11. © 2007 Thomson Delmar Learning. All Rights Reserved. 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. Chilean Wine—Historical Perspective (continued)

12. © 2007 Thomson Delmar Learning. All Rights Reserved. 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

13. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

14. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

15. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

16. © 2007 Thomson Delmar Learning. All Rights Reserved. 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

17. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

18. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

19. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

20. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

21. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

22. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

23. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

24. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

25. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

26. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

27. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

28. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

29. © 2007 Thomson Delmar Learning. All Rights Reserved. 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. Argentine Wine—Historical Perspective (continued)

30. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

31. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

32. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

33. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

34. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

35. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

36. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

37. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.

38. © 2007 Thomson Delmar Learning. All Rights Reserved. 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.