28/04/2009 / FRANCE
Image: "basco5" on Flickr.
Why the world is shunning French wine for Australian labels
The world's long-time supreme winemaker, France has slipped from first place to third among wine exporters in the past four years, leaving Italy and Spain in the lead. At the same time, wines from the New World are going from strength to strength. The major difference - marketing. Our Observer, a Frenchman studying the business of wine in Australia, explains.
Contributors
"The most obvious difference is the way the New World labels its products"
Benoît Pétry, 24, from Nice, is studying the wine business at Adelaide University, Australia.
While French wines are finding themselves increasingly out of favour with the world, the number of wine-producing countries is increasing (it is expected that world wine production will increase by 4% between 2008-2012). Who would have thought that while wine production in India, China and Argentina is increasing, in France it's declining? These countries are increasing their share in the most important wine markets (e.g., the UK and the US). The New World is gaining shares through big wine companies (like Constellation and Foster's). These companies are successful because they're big enough to be able to invest heavily in marketing, and they provide the distribution sector with a constant supply of wine that sustains a relatively constant taste and quality.
Marketing is the New World's best weapon in challenging the Old World. French producers are not the best when it comes to marketing strategies, and they keep on selling wine like they always have. The most obvious difference is the way the New World labels its products: simple, easy to read and consumer friendly; you do not have to be an expert to know how to read the label. The New World labelling system is not restricted by law like it is in France.
French wine experts place more emphasis on the region where the wine was produced than on the type of grape, as if the terroir were the most important factor when it comes to the taste of wine. Of course, nobody can deny that the terroir is an important factor, but it is the grape variety that really makes the taste of the wine. If you add more Merlot or Cabernet franc to Cabernet Sauvignon (a common mix) and plant it in exactly the same vineyard as a differently proportioned blend, the wine will have a very different taste. The New World, however, has lessened the importance of the terroir notion (climate, soil type, length of exposure to sunlight) and increased the importance of grape variety.
While you won't often find the grape variety on a French bottle (see pic), Australian wineries always display the grape type and not necessarily the region. Consumers love that! First, it's easier to understand; what is in the bottle is no longer a mystery. It is the French government based AOC system, or "controlled term of origin" which regulates how wineries present their product. Each AOC is a region in France which is certified for a certain production (for example, Côte du Rhône, Champagne, Châteauneuf-du-Pape).
Xavier de Eizaguirre, president of the international wine exposition Vinexpo, argued that with about 500 AOCs in total, the system is perceived as too complicated. In the AOC region of Châteauneuf-du-Pâpe for example, growers are allowed to use 12 different types of grape. Only an absolute expert would be able to determine a wine from knowing its AOC.
Wine is indeed a complex product, characterized by different attributes such as region, variety of grape, winemaker, winery and wine style. And that's exactly why a bottle of wine should help the consumer - connoisseur or not - to get all the basic information related to the wine in the bottle in order to help them to buy a bottle of wine that they are more likely to enjoy, and therefore buy more of."
Etiquette ‘à la française’ vs Down Under
French wines
Australian wines
Sign up via 
The Observers TV show
Observers' Tips
Location
Maps
What we’re working on now...
Most popular
Comments
French wine labels
Submitted by Mike Lloyd (not verified) on Sun, 17/05/2009 - 12:13.I've experienced both ends of the spectrum as far as Loire wine makers are concerened (I live in Saumur AOC region). At one end when I commented to a very good wine maker about his old fashioned labels when he asked me about selling his wine in England: "My wine speaks for itself" I couldn't convince him that he has to get people to buy the stuff before making a judgment about the quality. At the other end, I queried another excellent wine maker about why the non standard Loire shape bottle: "It gives the wine waiter something to talk about when showing the wine plus it makes people look twice at the label and bottle."
Unregistered user
Marketing has never been a French thing
Submitted by Charles Monroe (not verified) on Sun, 17/05/2009 - 00:27.The French are great at lots of things, including working nearly half as much as other countries and sleeping more than any other modern nation on earth (this is actual data, look it up online). That is a sad position to stay in the lead for anything and any industry. The collapse of most French industries is only a matter of time and the wine industry will die off.
Regarding the designs on the labels, they all look like they were from the 1940s. There are few French wine producers that understand modern marketing.
Unregistered user
Old World Vs New World
Submitted by Benoît Pétry on Mon, 04/05/2009 - 04:55.Thanks all for your comments.
As this article is focusing on labelling. I would be very interested to know your opinion about Old World Vs New World labels. Talking about quality, price, wine style, etc. is another topic.
Of course, I know that it is very important and I agree these are the main attributes of a bottle of wine. Nonetheless, labelling is also an attribute which deserves a specific interest. The "sexyness" of the labels is one thing, but the main objective is to give the relevant information to the consumer.
So, what do you think when you have a French, Italian, German, Spanish bottle of wine? do you think you get enough information to make the right choice?
What do you like about New World labels?
Thank you
Benoit
Benoît Pétry
Old World Vs New World
Submitted by Unregistered user (not verified) on Fri, 22/05/2009 - 19:44.Much printed information on the label of a bottle of wine tends to be unreliable. I find that it means nothing to tell me what grape(s) are used. There is far too much variation. Indeed I find it much more useful to choose wines based on region, particularly from France. "Burgundy" tells me something. "Bordeaux" tells me something. So does "Tuscany" and "Rioja". Unfortunately, "Sonoma Valley" tells me nothing at all. In fact, most New World labels tell me nothing.
My sense of the matter is that Old World makers still have some sense of regional identity that translates into the wine. New world makers, in spite of making much of their region, too often seem to turn out wines that could all come from the same barrel. So, I tend to not like anything about New world labels, because too often I do not like the wine.
Unregistered user
Not Enough Information
Submitted by Unregistered user (not verified) on Thu, 21/05/2009 - 22:30.I think there is very little information on wine bottles from Europe. I know that the little pink ribbon on the Italian wines means that it has been tasted and tested and is a good bottle, but this does not tell me what is in the bottle.
Unregistered user
french wine
Submitted by Frank V Arnold (not verified) on Wed, 29/04/2009 - 11:12.I live in UK and have drunk wine for many decades but do not pretend to be an expert. However I now rarely buy French, Italian, or Spanish wine. This is not because of poor marketing but because of dishonest marketing. I am not able to afford the best wines, but will not buy "plonk" either. When I buy European wines within my price range I know that I am buying poor quality which is being sold as good quality. The merchants are trading on the belief that the brand is all that matters. The other dishonest trading strategy is using "jazzed up" labels to attract the unwary.
Most of my purchases are Australian; I know which producers I like (eg. Hardy) and which grapes I do not like (eg. I avoid Merlot). I have never had a bad Australian wine. In contrast I have had many many very poor French and Italian wines. If I want to drink good Italian wine then I go to Italy and buy like an Italian (I am half Italian); the same may be true in France.
Until honesty returns to the European wine trade I shall continue to avoid it.
Unregistered user
French Wine
Submitted by Unregistered user (not verified) on Sun, 03/05/2009 - 19:51.In reply to Mr Frank V Arnold, regarding the dishonesty of the European wine industry, as a wine drinking Brit who lives in France, I respectfully suggest that half Italian Frank learns to spot the parts of the British wine industry that are dishonest. Mr Arnold should take his own advice and cross the channel and drink the wines of France, Italy and Spain in their contries of origin and I am sure that he will immediately stop slagging off an entire industry because of a handful of dishonest traders pandering to those Brits who are known throught the world as gullable enough to fall for any good marketing wheeze!
Unregistered user
For inexperienced and
Submitted by Unregistered user (not verified) on Wed, 29/04/2009 - 00:49.For inexperienced and supermarket shoppers your comments are correct. Most new world wines taste like flavoured alcohol and will not be bought by experienced drinkers at any price. Terroir is more important than variety - in fact it decides variety at the quality wine-taste end. It is unimportant in commercial fruit bomb wines made by big companies with large advertising and image creating capabilities.
Unregistered user
Ill informed comment
Submitted by unregistered user (not verified) on Wed, 29/04/2009 - 08:24.The article is well argued - though I may disagree with parts of it - over all it presents a view.
The first reply however exposes the writer as ill-informed. It is very, very far from true that ALL New World wines taste like flavoured alcohol. The writer of this comment should, perhaps, expose him/herself to a wider range of wines.
I would agree that French marketing has been woeful - however I put forward a parallel thesis.
My observations (having been in both the Trade and the Industry for thirty seven years), are that the new generation of drinkers began experimenting with wine in the mid 80s. They struggled with the leaner wines of France, many of which were not well made. Some one then bought an Australian Shiraz - a Napa Merlot - a Marlborough Sauvignon and on opening they were "assaulted" by the fruit flavour. Sunshine in a bottle.
Yes, often these wines lacked elegance and finesse but they were immediately appealing. In those days they were not fruit-bombs - forward fruit, but still well made and well structured. The people drinking them were not sophisticated or informed wine drinkers with trained palates - they wanted simply to ENJOY the wine.
They voted with their wallets.
Today the vast majority of French wines have not changed. The wine makers of France have ignored their market - ignored the preferences of their customers. If you wish to buy a motor car in red - would you accept a blue one? No, and neither do the wine drinking customers ... you ignore their preferences at your peril.
I love the best French wines (and European wines) - the best have fruit, depth, elegance and finesse - as all great wines must have ... without compare. However in the "value" range the wines from the same regions are often poorly made and do not reflect the terroir as their betters do. They are made to a price and also, often, heavily subsidised by their national taxman. Most New World wines are unsubsidised and have to pay for transportation halfway round the world to boot.
Oh, by the way first poster, if supermarkets are such an anathema to you, why do you shop there yourself?
Unregistered user
I believe it's ill informed
Submitted by Unregistered user (not verified) on Wed, 29/04/2009 - 06:44.I believe it's ill informed to say that "terroir is more important than variety" - the two go hand in hand. Terroir really governs how you decide to grow a variety, so long as it is suitable. I don't know anybody who buys wine only because it comes from a certain terroir - and they are some serious wine drinkers. BTW I own 2 vineyards & a winery in the Adelaide Hills (Australia) so i do know a little.
Unregistered user
Wine labels and 'The Knowing'....
Submitted by The Botanist (not verified) on Tue, 28/04/2009 - 19:56.And ++ the vintage......the wise wino.. 'knows',...the season's reality...by year... in Oz...(just as in 'La Belle France')...our drinkers do the maths..... and 'Know'..... We in Oz... 'know'... more, due to our transparent labeling codes....and a knowing media.. ( who generally imbibe)... Than blind choise....
Cook beat la Perouse...to the anchorage... Botany Bay...(34.00.260.S).. and while reefing his main.. and beating to wind...(a bad tack in this case) Cook... 'Ran' north... turned to port and 'found'.. (it was not lost), Sydney Cove ...(33.50.000.E...(a pity, for we who are francophiles,... (the Scots... and Cajan aficianardoes of Antipodes)...After all it was good France that gave sanctuary to our good woman, Mary ..( Queen of the Scots)....and those French who in their 'knowing'... booted out their oppresive royals and their 'clerks' and 'pensioners'... and through the Enlightenment bought about the science that lead to the magnificent... Pasteur....for whom the whole world should bow....for our earth juice....the pure wine.... his gift of survival from the dreaded... Nemitode... 'Phyloxia'... need I say more?... just a little.....'In Vino Veritas'.... and truth too... (latin pun).... as if that matters to modernity....though in the bottle,...... It Does... have a good.. 'la weekend'....and loads of the 'between sheets/leg over stuff'....beats war....
Regards "The p(l)ants Man'.
Unregistered user
"Marketing is the New
Submitted by Unregistered user (not verified) on Tue, 28/04/2009 - 13:57."Marketing is the New World's best weapon in challenging the Old World"
That's completely true. Thanks Benoit.
Unregistered user
Very good article! But let's
Submitted by Unregistered user (not verified) on Tue, 28/04/2009 - 15:26.Very good article!
But let's be honest: the world's best wines are still french... ;o)
Unregistered user
And unfortunately, a huge
Submitted by Trevor (not verified) on Wed, 29/04/2009 - 09:22.And unfortunately, a huge amount of the worlds worst.
Unregistered user
If I agree with you,
Submitted by Benoît Pétry on Tue, 28/04/2009 - 18:50.If I agree with you, everybody will say I am not objective ;)
Benoît Pétry
I am US, and I agree. I
Submitted by Larry (not verified) on Tue, 26/05/2009 - 04:24.I am US, and I agree. I like French wines best, but because of price and selection here, I also buy Spanish and Italian, and an occasional Chilean. Here, I can buy a 3 euro (in France) bottle of rosé for about $13, (10 euros), and my favorite, Côtes du Rhône. all five brands which are available here, is over $10.
One thing I love about French wines is the variety. I used to buy a lot of Australian and Chilean, but they do all taste the same. European wines, with their regions and AOCs, are different. Each terroir is different, for better or worse.
If I were to suggest a change, it would be for the French to market the diversity and mystery of wine. Every time I buy a new brand, it is a new experience, a journey. The only way to guarantee each brand is to your liking is to make them all the same, as in California or Australia. In France, there are some bottles of plunk, just as there are wonderful bottles for under five euros. Every time you buy something new you take a chance, and usually I am happy.
The French could add the grape varieties to the label, but beware of changing everything. I avoid the snappy labels geared towards Americans. The wine is usually not the best.
Unregistered user
My wife enjoys a good bottle
Submitted by Percival (not verified) on Sun, 03/05/2009 - 08:20.My wife enjoys a good bottle of wine. She has recently started drinking a Chilean Cabernet Sauvignon which retails for just over £3 [deleted]. If she were to drink a similarly priced Euro plonk I'm sure she would turn green and end up on life support :)
Unregistered user
I always buy French wines.
Submitted by Unregistered user (not verified) on Mon, 04/05/2009 - 00:32.I always buy French wines. This being said I happen to taste other wines as well. I a nutshel, if I had to categorize... Italian wines; I have never been very impressed. Expensive bootles (say €25) end up to be good, but considering the price, I was usually expecting something more special. Spain; pretty good, structured and consistent but often too tanic and lacking subtelty.
I happened to be in the Sonoma Valley (California) some time ago and went to a series of Chateaux / wineries. I tasted many wines, certainly more than 20 from different wineries... all good but all very expensive ($30 which was at the time something like €45), but guess what, they just tasted all the same. I couldn't believe it. I could find much difference from one to the otehr wine. Considering the price I obviously didn't buy any bootle... And by the way, this s about red wines. I am usually horified by Californian withe wines. It may be a question of taste, but I find them far to oaky, very artificial...really not pleasant. Withe Californian wines are definitely not for me.
Argentina and Chile, some very good stuff. At least from what I remember from my trip in Argentina some years ago where I had the opportunity to taste their local products. South Africa I am not sure.... better not say anything. But Australian, I have tasted some recently... but pretty chilling experience. Not nice at all. But I didn't choose these wines, so maybe these were just very cheap bottles...
Now, back to French wines. Some people say they are expensive (I live in Belgium and that's what people say here - I believe they are wrong. In Belgium, but even more so in France, I can find what I consider good wines starting from €5. At about €15 ypu can have realy very nice wines. Those kinds of wines that bring you areal experience. Recently I found a wine advised by a somelier in a resturant in Paris. This wine was really fantastic.I guess French wines in general have still a lot to say. Subtility, originality, long lasting taste. Franckly, I rarely find this level of pleasure elsewhere...
- The problem is that french wine is classified according to regions / territories. We can't blame new wine drinker not to undertsand this.
- Yes French wines can be disapointing at times. It may not be the only reason, it is sure that product is still done in the traditional way and there can be sometimes a breach in consistence.I have been disapointed by some french wines sometimes
Then, of course, should we really care about the market share of the french wine? Should we expect that people that have their roots into drinking beer can make their way into the complex world of wines? Do they understand wines? Are they able to make the right choices? Probably not... (I am speaking about the mass market of course).
Also, as told above I live in a beer country (Belgium) and must admit that I know nothing about beer. If I had to choose for a beer I just go for anyone. I don't understand beer that much and I wouldn't be suprised that the majority of consumers in beer countries happen to buy wines a bit the way I do... i.e. a bit randomly.
By the way. I a recent trip to Texas, I ended up by pure chance in a restaurant and wine bar ... very good terroir food and very nice wine list. A real miracle. It was totally unexpected but turned to be a very pleasant evening. There in the middle of Texas !!! The wine list consisted of probably 80% of French wines. All great wines. The owner and cook - who by the way had never gone to France or Europe - to whom I spoke for a while was getting his inspirations from what the nature gives and was koocking really wonderfull dishes - nothing gastronimic, but genuine and and down to hearth. He paid a real tribute to French cuisine and wines. A real wonder in the world of Mc Donalds and high calory processed food. It was very conforting to mee for sure... So French wines have still some strong believers, even in areas far away from the old world.
Unregistered user
New World v Old World
Submitted by Unregistered user (not verified) on Wed, 20/05/2009 - 15:03.I grew up drinking Italian wines, specifically those from the Piedmont area. To this day these are the wines I drink. I have tasted wines from many countries and simply cannot get used to them, someone called them flavoured alcohol and that is a good description. Some I would even liken to Ribena. When in France I have drunk French wines and have enjoyed them, the same wines in England tasted different.
Unregistered user