VALPOLICELLA PRODUCERS ADDRESS COVID-ERA DISPARITIES WITH CHANGES TO WINEMAKING RULES AND HOSPITALITY INVESTMENT
by Lars Leicht
In a winemaking appellation like Valpolicella—encompassing three subzones, our types of wines, 11 distinct geographic areas, and 19 municipalities—pleasing everyone is an impossible dream. That also applies to the shared misery of the COVID-19 pandemic, which has had a variable impact on the area’s roughly 300 producers and 2,000 growers.
Domestic sales of Amarone della Valpolicella took a hit last year, yet this prestigious wine remains an international darling as exports maintain a healthy pace. In a territory where two-thirds of sales are outside of the country, exports represent a silver lining—but not all producers feel that love equally. Yes, they’re a saving grace for household names with a strong presence at chain stores and online retailers, but not so much for artisanal wineries that parse their small production to restaurants, some of which are now shuttered.
“In general, the situation is positive for our flagship wine, which closed out the year ahead of the national average,” says Cristian Marchesini, president of the Consorzio Tutela Vini Valpolicella, which represents about 80% of the region’s producers. “But what is most disconcerting is the disparity within those numbers. Small producers are suffering disproportionately from the closing of restaurants, with losses around 10% for export and 28% for the domestic market. This is a direct hit to the [economic health] of our vineyards.”
Marchesini points out that retail chain accounts in Italy represent almost half of total wine sales for Valpolicella, Ripasso, and Amarone but on average only 10% of the business for small producers, which count on restaurants for nearly half of their sales.
The United States remains Amarone’s largest export market, followed by Switzerland, Germany, Canada, and the U.K., which all saw increased sales in 2020. Export sales of Ripasso, which accounts for about two-thirds of the Valpolicella region’s production, were down by 5% overall but nearly 25% for small producers. Retail chain stores make up more than half of domestic sales of Ripasso.
The base category of Valpolicella took a big hit as well: It’s down 3% in exports, which represent about 70% of the business, and 8% on the domestic market. Two of every three bottles of Valpolicella are destined for chain stores but represent only 9% of small producers’ business.
The bleak picture was presented in late February at the Valpolicella Annual Conference. “The pandemic created a two-faced market,” said Denis Pantini of the Nomisma Wine Monitor agenсy, which collected the sales information. “The line of demarcation is based mainly on the size of the winery and the positioning of its wines in respective trade channels. What has happened in Valpolicella is reflective of what is going on across all appellations in Italy, forcing producers to revisit their commercial strategies and seek to diversify in terms of both market and channel.”
The Consorzio itself recently introduced changes to production rules that were years in the works. Made in response to climate change and changing market conditions, they include the following:
- An increase in the permitted percentage of Corvinone to the point where it can substitute for Corvina in the blend of Valpolicella, Ripasso, and Amarone, as Corvinone is more resistant to hydric stress and the Esca grapevine trunk disease.
- Grapes used for Amarone and Recioto must come from vineyards that are in at least their fourth season, an increase of one year over the prior regulations, with the aim of achieving more complexity.
- A reduction of the maximum residual sugar content for Amarone from 12 to 9 grams per liter, marking a return to a more traditional and historic winemaking style for the denomination.
- Permission for Valpolicella DOC wines to be bottled with screwcap closures for 375-milliliter, 750-milliliter, and 1.5-liter bottles.
- An adjustment to the winemaking technique for Ripasso requiring that bottlings labeled as such must contain 10–15% of wine that qualify as Amarone and/or Recioto, both of which require the appassimento method for naturally drying grapes. In addition, the process for making Ripasso—pouring young Valpolicella wine over the pressings of Amarone or Recioto—must take place in a single process lasting at least three days and use base wine and pressings exclusively from the same producer.
Small producers are reacting to these changes by not only changing their production but taking a bullish approach to wine tourism when travel bans are finally repealed. According to a poll taken by the Consorzio, roughly 70% of producers intend to invest in their approach to hospitality. While almost all producers engage in some form of direct-to-consumer sales, less than one-third offer lodging options such as agriturismo (tourism on working farms) or bed-and-breakfast facilities, room rentals, and hotel services in conjunction with their winery tours and tastings.
Marchesini foresees the development of unexpressed potential. “The intent of producers to invest is a very positive economic sign for our territory,” he says. “It is a strong signal of rebirth and calls for support by all those who are involved in some form of wine tourism.”
It makes sense, he noted, that small producers impacted by declining sales are most inclined to continue investing in local hospitality. Roughly 21% of small producers polled currently engage in some form of wine tourism, while that number dropped to 11% for mid-size producers and 4% for the larger ones. Small producers made up almost ¾ of those who responded to the poll.
That means that future trips to Valpolicella will present greater opportunities to visit producers and taste exceptional wines. Who’s ready to go?
