Wine appellations: friend or foe?

Historically, appellations have allowed us to identify wine regions and wine styles. But currently under pressure, both because of internal malfunctions and/or malpractice and external competition, the concept of appellation is on the verge of collapsing if radical changes, requiring a strategic vision and political courage, are not promptly introduced.

Historic role of appellations.

Historically, appellations were an insurance regarding the geographic origin of a product. The need to relate a wine to a specific region is not new. In the tomb of Tutankhamon (who died in 1357 BC), 26 jars that were buried with him bear seals that identify the estate, year of vintage and name of the winemaker. Some of the wine was between 4 to 9 years old.

An appellation can be understood as a certification allowing a product to distinguish itself from the others. In France for example, it translates the local, loyal and consistent practices linked to a specific piece of land. From 1935 to the present day, the number of appellations has been increasing to reach 383, a figure which only includes AOC (Appellation d’Origine Contrôlée), the European equivalent of the PDO scheme (Protected Designation of Origin). No Protected Geographical Indications (PGI), which are the equivalent of the Vins de Pays in France or IGP (Indication Géographique Protégée) are included in that figure. France has 130 different IGP wines.

If we compare these figures to those of Italy, it can also be noted that the number is huge: 329 DOCs or Denominazione di Origine Controllata and 73 DOCGs or Denominazione di Origine Controllata e Garantita, which are a kind of super-appellation. To those, 125 IGT appellations have to be added. In Spain, there are “only” 90 Denominaciones de Origen, 2 Denominaciones de Origen Calificada (the equivalent of the Italian DOCGs) and 41 IGPs. The two “super” appellations in Spain are Rioja, with an annual production of over 320 million bottles a year and Priorat.

Those countries heavily regulate the way wine is made in every single corner and in every detail. Appellation rules can mention not only authorized grape varieties but also planting densities, training and pruning methods and specify how the wine has to be aged and when it can be released to the market.

Importance of appellations on a global scale.

In a context of wine being increasingly traded internationally – today over 40% of the wine produced is consumed in a different country than that of production (OIV figures 2019), appellations are in direct competition with New World wines. These come from countries such as Chile, Australia, South Africa, Argentina, New Zealand, the USA and others.

Wines from these countries are mainly sold as varietal wines linked either just to the country of production or a specific region within that country. As an example, in Australia, many wines that the consumer can find on the shelves come from a region called South Eastern Australia, which includes the states of Victoria, South Australia and New South Wales. In fact, it is a “region” as extensive as half of Europe. Imagine a wine from the European Union made from grapes coming from Portugal, Denmark, France, Italy and Bulgaria. This is the idea behind the term South Eastern Australia.

The varietal name on a label is an easy way for a novice consumer to have an idea of the style of wine that is inside the bottle. That varietal name associated with the name of a country gives a further indication of the wine style. Communication is simple and straightforward: the consumer knows what he is buying.

Increasingly, New World wine producing countries are insisting on the concept of regionalization. In Australia, the GI (Geographic Indication) is a program started in 1994 to define wine regions in the country. The number of GIs in Australia has been on the rise ever since and now reaches the number of 65. The same trend can be registered in the USA with the AVA system (American Viticultural Area) and in other countries looking to gain advantage of the concept of “terroir”.

Even in New Zealand, where traditionally the name of the Marlborough region reigned supreme on the wine labels, names such as Awatere Valley and Wairau Valley (both sub-regions of Marlnorough) appear on the front labels, in an attempt to convince the consumer that there is not only one style of New Zealand Sauvignon Blanc but several styles which are worth trying.

Current situation: a reshaping of the rule of appellations.

On the one hand, New World countries are betting on regionalization to get away from the simple varietal scheme. They are trying to convince the consumer that there is more to their wines than just the varietal. Varietals with a sense of place do exist and they have their deserved space on the shelves.

On the other hand, European countries have refined their appellation systems in such a way that too many appellations are killing the concept of the appellation itself. The question here is: who, even in the professional world, does know the hundreds of appellations of the main producing countries? Even in the case of Spain, which still has a relatively limited number of appellations, it is difficult for professionals to get a grip on its classification system. Imagine the headache of a novice consumer looking for a wine for his cheese fondue! Mike Veseth, author of the Wine wars book where he analyzes these issues, speaks about the wines in supermarkets as the “wine wall”, making it look as an unfriendly territory for the consumer – to say the least.

That situation is already challenging for appellations. But there is more to it that even worsens the situation. Quality wise, appellations are not playing their role anymore. Just look at how many brilliant producers all across Europe are deciding to leave the appellation! Alexandre Bain, one of the most talented producers in the Pouilly Fumé appellation in Loire in France was denied appellation status because his wines “were not typical” of the appellation according to the approval committee. However, all Michelin star restaurants where his wines are present do pay tribute to his wines every single day. Another example in France: the Domaine Gourt de Mautens in Rasteau, in the Southern Rhône Valley, who makes velvety wines, more akin to Châteauneuf-du-Pape wines than plain Côtes de Rhône ones, is now selling his wines under the Vins du Pays du Vaucluse IGP appellation.

But what happens in France, also happens in other countries such as Spain. In the Cava appellation, producing the Spanish sparkling wines, the best producers decided to create their own appellation in 2018, called Corpinnat. They include such prestigious names as Gramona, Recaredo, Nadal, Torelló, Sabaté I Coca and Llopart. The reason: Cava rules were not strict enough to produce great sparkling wines, according to them. Corpinnat makes wines from organic grapes, vinified on each producer’s premises and applies much stricter rules to the ageing of the wines. A basic Cava can be released after only 9 months on lees while the “basic” Corpinnat sparkling wine has to be aged for 18 months, with some categories reaching 30 and 60 months ageing. Compared to Champagne, these figures are 12 months for a non-vintage Champagne and 36 months for a vintage Champagne.

Not to mention the fact that some appellations, to follow international tastes, succumb to the temptation to introduce international grape varieties just as the Rioja appellation has done in Spain. What is the point in authorizing Chardonnay and Sauvignon Blanc in their white wines? Can anybody tell?

And yet another issue is putting the concept of appellation in jeopardy: climate change. With climate change, new regions and wine producing countries are emerging and will continue to emerge. Think about the “Charbonnay” wine made in the Nord-Pas-de-Calais region in France, where Chardonnay grapes grow on ancient slag heaps. Or look at what currently happens in the Skane region of Sweden, in the Southern-most tip of the country where more and more professional wineries are opening backed by investors betting on the quality of the wines and their future commercial potential. According to Carl-Otto Ottergren, owner and winemaker at Köpingsbergs vineyard, “with Swedish wine, professionalism and quality are now at an international level compared to 2005. People are studying in the USA and Germany and then opening vineyards. In the past it was more people with wealth opening a vineyard as a fun project, more a hobby. Now, young people think professionally from the beginning. You see the results—the wines are getting a lot better”. The same happens in Southwest England, where companies such as Axa Millésimes are heavily investing to make world class sparkling wines.

All these movements are contributing to redefining the concept of terroir and potentially endangering the notion of terroir. All the more so that current appellations will have to redefine the way they work and most likely introduce new grape varieties. Can you imagine a Bordeaux made with Touriga Nacional grapes (the main grape used in northern Portugal to make Port and Douro red wines) or Grenache in the blend?

The way forward.

So, where is the silver lining in these dark clouds? The way appellations might regain some weight and credibility is by making sure that the wine with an appellation name really stands for what it is supposed to represent.

That is making sure that wine professionals taste the wines in approval committees and do their job properly. That means having the courage to say no and help the winemaker have its approval the following year. That would be a significant step forward in the right direction.

Besides, all regions and appellations should engage in sustainable viticulture just as some have done. The Champagne region is a good example of it. It will be one of the first French appellations to be able to lay claim to having a truly sustainable viticulture at regional level. The region is getting the HVE (Haute Valeur Environnementale) status, corresponding to one of the two main sustainable certifications in France. This has meant a long and tedious collective effort to reach that goal. But the good thing of it is that it has rallied all the players of the region, both Maisons de Champagne and growers to reach that goal. The idea behind it is to communicate around the appellation efforts to become cleaner and cleaner. In the process, the consumer is aware of the existence of the appellation and its value. On top of that, the Champagne region gained international recognition in July 2015 when the Unesco gave its seal of approval to the region, putting forward its Côteaux, Maisons et Caves de Champagne as a World Heritage.

Simultaneously, appellations should find a way to communicate more clearly around what they offer. A regional seal – with multiple sub-regional appellations – could work. For instance, Piemonte seal in North western Italy, a Loire seal for that region in France. The aim of it would be to clarify the offer to the end consumer, struggling to find a bottle for his cheese fondue (by the way, he is still looking for it!). The novice consumer – and even the consumer who is not that novice – should be able to understand how regions and appellations work and relate a region to a specific style of wine. That would be a great relief for some consumers who always hesitate so as to which wine to pick up for dinner.