German Wine: Flooded with confidence

The 2018 grape harvest in germany will go down in history as a truly outstanding vintage. Christian davis reports amid the euphoria

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DESPITE THE EXTREME water shortages, this year’s German wine harvest has turned out to be unexpectedly high, according to the German Wine Institute (DWI).

After last year’s below-average crops and correspondingly depleted cellar stocks, latest estimates expect a wine must harvest nationwide of approximately 10.7m hl.

The institute says this would correspond to a 23% rise over the 10-year mean of 8.8m htl, resulting in the largest harvest since 1999. The estimated volume increases vary between the regions, ranging from 5% in Saale-Unstrut, to 36% in the Mosel and up to 64 % in the Mittelrhein.

The DWI says this summer’s drought has been more beneficial than harmful for vine development and berry ripening. Thanks to the hot, dry conditions, the grapes showed themselves right up into October to be in excellent health, with rich aromas and high ripeness levels. Red wine varieties have benefited especially from the hot summer. Care has been taken with picking times to ensure that the grapes do not come into the cellar with too high must weights, so as to prevent the wines becoming excessively powerful.

All seems well in German vineyards and wineries. Now on to the commercial stuff.

Ernie Loosen, owner of Mosel specialist Loosen Bros, puts German wines into perspective. “Germany still has an important place in the global wine market because of our long history and rich traditions, not only with Riesling, but also the Pinot varieties and other classic grapes that can be grown in certain regions.

“Riesling is still our lifeblood, however, especially in the Mosel region. Riesling will always be a niche wine, it seems, because of its aromatic, in-your-face nature and its unique ability to be produced in a full spectrum of styles. Its very diversity can cause confusion among average consumers, but Riesling is a wine that inspires passionate devotion in a lot of wine lovers,” says Loosen.

Richard Jones, managing director of Reh Kendermann UK, says: “German wine has virtually moved from the uncomfortable position of being one of the largest suppliers of entry-level wines in the UK and some other markets to a more niche producer of exciting, cool-climate wines.

“The move to drier, more food-friendly wines has been a significant trend over the past 20 years and this style is the norm in Germany. Export markets are somewhat behind the curve, but we are seeing the more wine-engaged consumer picking up these wines,” says Jones.

“Reh Kendermann has been very successful in managing this transition. We have grown our market for the traditional off-dry wines with Black Tower, which is by far Germany’s most successful export wine brand. Black Tower has engaged the consumer through innovative packaging and carefully developed range extensions tailored for individual markets, such as lower and no alcohol variants and the organic and vegan Sparkling Ice,” Jones says.

Franz Wilhelm Langguth Erben CEO Patrick Langguth, says: “In terms of total wine production, Germany is in the mid-range of the producing countries with about 9-10m hl. For white wine, Germany is one of the leading nations in quality worldwide.”

Wine Intelligence chief operating officer Richard Halstead gives a UK perspective: “The story of German wines in the UK is growing evidence of metamorphosis after years of decline at the low end and efforts to reposition as a premium product.

“Awareness of German wines is steady at about 65% of monthly wine drinkers. ‘Recalled consumption’ is stable at about 15% of monthly wine drinkers but volume sales are still falling by about 10% year on year. But value is growing by about 5% year on year as a mix of product shifts from cheap Hock/Liebfraumilch to more expensive Riesling.

Halstead justifies this by the variance in the German wine-drinking population. “Awareness levels of German wines is much higher among those aged 55-plus (80%-plus), compared to under 35s (30%).

“The conversion rate [the proportion of ‘awares’ (WI profiles), who say they drink] is highest among 25-34s, remembering that awareness levels are low among this group compared with ‘olders’. Drinker profile skews to higher income (£50k-plus), ‘Generation Treater’ segment – ie younger, higher income, ‘involved and information-hungry’,” says Halstead.

GERMAN NICHE, USP

When it comes to Riesling, Loosen believes that Mosel Riesling, in particular, “captures the unique characteristics of our cool climate and slate soil”.

But, of course, there’s much more to Germany than simply its flagship. For Jones, Pinot Blanc “has good potential on the export market”. He adds: “It is already widely appreciated in Germany as Weisser Burgunder. Germany produces more Pinot Blanc than any other country and has the potential to become the definitive country for this grape.”

Langguth says: “The wines from the grape varieties Riesling, Müller-Thurgau, Pinot Gris and Pinot Blanc from German growing areas show a special profile and have become role models. Due to the strict German wine regulations, quality levels such as Kabinett, Spätlese, Auslese, Beerenauslese and Eiswein stand for different degrees of ripeness and sweetness, which is German wines’ USP.”

He continues: “Riesling remains the leader in white wine grape varieties, after which the importance of Pinot Blanc and Pinot Gris increases. Aroma varieties are also attracting more attention such as Gewürztraminer and Scheurebe.”

CHALLENGES

As Loosen points out: “We are in a period that prefers big, full-bodied red wines – and dry wines, in general. There is still a good level of appreciation for our classic, fruity wines, although it takes a lot of work to find those consumers. But we are now re-learning how to produce well-balanced dry Rieslings here in the Mosel, as our forebears had done it 150 years ago. With the preference for sweeter styles that dominated in the 20th century, and with the tragic interruption of the war, we lost sight of the drier style that existed before the advent of sterile filtration. But we are rediscovering the more patient winemaking methods of our great-grandfathers.”

And this can only be a good thing as climate change is meaning the country is becoming more interesting for red wine production, according to Langguth.

Jones agrees: “Warmer summers have offered a huge opportunity, allowing grapes to fully ripen and develop with full flavour and good balance, whether dry or sweet.

“The increasingly volatile weather patterns are forcing wine growers to be proactive in their vineyards and winemaking management. The 2018 vintage is a good example, with the earliest harvest in living memory and dispensation from the authorities to acidify wines where required. Generally the reverse has been permitted with de-acidification.

“Global warming also means Germany is becoming increasingly interesting for red varieties, and not just cooler-climate reds such as Pinot Noir and Blaufränkisch, but also more robust reds such as Syrah. There is increasing interest in organic winemaking, with about 8% of Germany’s vineyards now being certified as organic or biodynamic and many more vineyards being worked sustainably,” says Jones.

OPPORTUNITIES

Kendermann’s Jones says: “We are achieving good success with our Kendermanns Terroir wines. These are dry, modern style wines covering key grape varieties such as Riesling, Pinot Noir and Pinot Blanc, grown on specific soil types such as Kalkstein (Limestone) and Loess.

“Reh Kendermann’s considerable investment in wineries in the top three regions (Rheinhessen, Pfalz and Mosel), together with close cooperation with more than 300 growers, has enabled us to make the best of German wines,” he says.

“We have had some success selling smallish parcels on the export market,” says Jones. “Yapp brothers, our sister UK company, has been able to develop a longer-term success in the high-end gastronomy market. Sommeliers have grown to appreciate the amazing quality of German Pinot Noir and value for money in the context of Burgundy. Reputations for new wines are often built in the gastronomy sector and trickle down to the mainstream some years later.”

Langguth outlines current trends in Germany as: “Regionality, organic and sustainability across all product groups. Wine can benefit from this very well because it is a ‘natural experience’.

“Organic production is growing continuously. To what extent PIWI grape varieties will play an important role cannot be said yet.”

Direct Wines is the largest mail order/online wine retailer in the world, distributing to the likes of Australia, the US and the UK. Its junior buyer for Germany wines, Kirsten Willis, reckons Germany has the opportunity to re-position itself in the market as a younger generation of wine drinkers is starting to appear.

“This means winemakers have the opportunity to create a new demand for their specific styles of wines (such as off-dry) as well as drive sales with their crisp, affordable dry styles. They also have an advantage at being able to offer naturally lower-alcohol wines as we see a trend to some consumers wanting lower alcohol. I also do not think we should overlook the opportunities which Germany has in the red wine market, I think this has huge potential to grow.”

She adds that many consumers like an off-dry style once they have been convinced to try it. “These wines are so often extremely well-balanced and are a higher quality than any other region in the world. This is their niche. I think that we will notice an incline in this section of off-dry whites as the younger generation start to taste and understand these wines. They do not have an idea of German wines already, which is a real opportunity for these wines,” says Willis.

SUMMARY

According to the DWI: “Wine lovers can look forward to a 2018 vintage of exceptionally fruity white wines and deeply-coloured, full-bodied reds, which from the entry-level to the premium segments offer first-class enjoyment and excellent value for money.”

Loosen says: “For us at Dr Loosen, the future is clearly in the past. Through the process of rediscovery, we believe that we are on the right path to produce internationally appealing dry Rieslings that honour our deep winegrowing heritage, but also improve upon it. With our advances in viticulture, and improved cellar conditions, we believe we can rebuild our long-lost reputation for expressive, harmonious dry wines that will appeal to a broader range of wine lovers around the world.”

Jones says: “The trend in many developed wine markets is “less is more”. German wine exports may not be hitting the dizzying heights of the 1980s, but we are seeing a steady increase in quality and development in styles of wines that will ensure a bright future.”

Langguth says: “German wines in general are high in demand. Especially wine experts worldwide judge very positively about German wines and their uniqueness. The whole industry benefits from this opinion.

“The market consumption is stable. In Germany, German wines are on the rise while foreign ones such as France and Italy continue to be under pressure,” concludes Langguth.