2.4 Wine Law & Business Flashcards
True or false?
The total area of vineyards planted within Sherry’s Zona de Producción was 10,000 ha in 2016.
False.
The total area of vineyards planted within Sherry’s Zona de Producción was 6,989 ha in 2016.
- Average vineyard holdings are small (just under 3 ha) and over 40% of vineyards are owned by the members of co-ooperatives (2,935 ha).*
- Independent growers have 1,957 ha and the shippers themselves own 2,097 ha. Although many shippers such as Gonzalez Byass, Barbadillo, and the Estevex Group have large vineyard holdings, thery are usually not self sufficient and need to buy from independent growers.*
Companies involved in the production of Sherry wines are registered within three different categories. A company may only belong to one of these registers or multiple registers.
Name the three registers.
- Bodegas de la Zona de Producción (Production Bodega)
- Bodegas de Crianza y Almacenado (Ageing and Storage Bodega)
- Bodegas de Crianza y Expedición (Aging and Shipping Bodega)
Describe the Bodegas de la Zona de Producción (Production Bodega).
These bodegas, which are usually large cooperatives, press grapes and ferment the must into base wine. They must be located in the Sherry production zone but do not need to be located in the Zona de Crianza.
They are often owned by a company within one of the other registers that can be independent and will sell the base wine to either of the aging bodegas. They may sell their own wines, but cannot qualify for DO Jerez-Xeres-Sherry or DO Manzanilla - Sanlucar de Barrameda.
Describe the Bodegas de Crianza y Almacenado (Ageing and Storage Bodega).
These bodegas, also called almacenistas, mature wines. They must be located in the Zona de Crianza and tend to be relatively small in the amount of wines they mature. The wines must be sold to Bodegas de Crianza y Expedicion.
Describe the Bodegas de Crianza y Expedición (Ageing and Shipping Bodega).
These bodegas, also called “shippers” are only register permitted to export or sell DO Jerez-Xeres-Sherry or DO Manzanilla - Sanlucar de Barrameda wines to the market.
These bodegas must be located in the Zona de Crianza. As well as selling the final wine, they are also permitted to mature the wines, which may come as young wines straight from the Bodegas de Produccion or may come as matured wines from the Bodegas de Crianza y Almacenado.
The wines from the almacenistas may be blended with the shipper’s own stocks of wines to make up volumes and add complexity. The wines are then generally sold under the shipper’s own brands, however, the shipper Lustau has long had an almadenistas and includes their name on the wine label.
What is an almacenista and how has business been for them in the last 30 years?
Bodegas that mature wines. They have suffered from the decline in Sherry sales in the 20th century. As demands reduced, the shippers survived using their own stocks, not needing extra wine form the almacenistas. Thus, many almacenistas went out of business.
In 1996, the Consejo Regulador lowered the minimum stockholding for companies to register as a shipper from 12,500 to 500 hL. This meant that a number of the biggest almanistas, like El Maestro Sierra and Bodegas Tradición, became shippers and therefore now market their own wines under their new brands.
True or false?
Sherry’s Consejo Regulador was the second to be registered in Spain in 1933.
False.
Sherry’s Consejo Regulador was the first to be registered in Spain in 1933.
What does Sherry’s Consejo Regulador do?
It maintains all the vineyard registers and sets parameters such as maximum yields and minimum alcohol levls for base wines.
it also oversees the rotation of stock in the bodegas and verifies the authenticity of age-dated Sherries.
They are also a major promotional body, engaging in many forms of marketing which range from the organization of events during International Sherry Week to running educational courses for wine professionals.
True or false?
Sherry used to be used as a generic term for fortified wine made with white grapes.
True. In the mid-90s, the Consejo Regulador succesfully campaigned for this term to only be used (at least in the EU) for wines of DO Jerez-Xeres-Sherry and DO Manzanilla - Sanlucar de Barrameda.
Discuss the decline in Sherry sales over the last four decades.
In 2016, global sales of Sherry were 34 million L, down from 56 million L just 10 years earlier. Peak sales in the late 1970s were around 150 million L.
Sales of sweetended Sherries have declined most dramatically. Cream Sherry sales declined form 12.5 million L in 2006 to 7.4 million L in 2016. Medium Sherry from 11.8 million L to 7.2 million L in the same period. Pale Cream sells 2.5 million L a year from 4.1 million in 2006. Almost 97% of that is shipped to the UK.
Sales of Fino have decreased from 14 to 7.6 million L between 2006 and 2016. Manzanilla, however, is relatively stable (8.5 to 7/1 million L from 2006 to 2016), being the most consumed style in the domestic market - which as also remained stable.
Volumes of Palo Cortado, PX, and age-indicated sherries are small but all of these now represent a profitable part of most shippers’ portfolios.
Spain is the biggest market with sales of 12 million L - just over 1/3 of total sales and has remained stable over the last 5 years. The most popular products are Manzanilla, followed by Fino.
The UK is the largest export market, the majority of which are sweetened Sherries, followed by Holland, Germany, and the US (at 1.2 million L). Each one of these export markets has seen gradual decline in sales volumes over the last decade.
True or false?
Although Sherry consumption is down overall, the sales of premium-priced Sherries are increasing.
True.
This is primarily driven by the hospitality sector and younger drinkers. Some winemakers have diversifed into producing unfortified wines, often from Palomino or PX, in a range of styles - fresh and youthful; biologically aged; partially oxidative. It is hoped that this move will also attract new consumers.
