Interview: Carlos Eduardo Corrêa Nogueira C arlos Eduardo Corrêa Nogueira is the Director for International Affairs of the Brazilian winery Miolo, one of largest in the country. In this interview to Flavors from Brazil, Nogueira comments on the quality of Brazilian wine and tells us a little about the successful history of grape cultivation and the production of fine wines in Brazil. According to the agronomic engineer, Brazil’s winery tradition is little known abroad. There is still some resistance in some markets, despite its high quality standards. Nogueira describes some initiatives that are being undertaken to break the stereotypes that are, in many cases, imposed on Brazilian wine in order for it to enjoy the same international success that Brazilian cachaça and caipirinha do. Flavors from Brazil 159 160 Barrels. Source: Vinícola Miolo Ltda Texts from Brazil . Nº 13 FB: What are the origins of Brazilian wine production? CECN: The first register of winegrowing in Brazil dates back to 1538 with Brás Cubas, on the coast of São Paulo, who began to study the development of this culture. Afterwards, some seedlings were taken to others parts of the country by the Jesuits. The culture established itself in the region of Sete Povos das Missões and on the islands of the estuary of the Guaíba River in Rio Grande do Sul, south of Brazil. However, as an effective commercial activity, winegrowing started in 1875 with Italian immigration to Brazil. FB: In Brazil, winemaking tradition, however long in existence, is still relatively unknown. What have the institutions related to wine been doing to improve the image of Brazilian wines? CECN: The institutions, nowadays, have been working intensively on their marketing. The main idea is dissemination. Uvibra (Brazilian Vitiviniculture Union), specifically, has been working at a national level for 40 years. It is the main forum for the protection of Brazilian winegrowing and for government relations. Their main task, which we would like to develop even further, is to promote Brazilian wine through advertising campaigns, the promotion of wine consumption and of its health benefits. This is the main goal of the organizations besides protecting the industry and working with government to elaborate sectorial policies. FB: Is there a marketing plan by Uvibra or wine producers? How is it carried out, particularly abroad? CECN: Dissemination abroad is done through Wines from Brazil, which is our big enFlavors from Brazil As an effective commercial activity, winegrowing started in 1875 with Italian immigration to Brazil. tity for the representation of national wine cultivation for export. It is an integrated sectorial program, supported by APEX (Brazilian Trade and Investment Promotion Agency), in partnership with other entities, such as Sebrae (Brazilian Micro and Small Enterprises Bureau). The goal of Wines from Brazil is to promote Brazilian wine abroad. Today, if I am not mistaken, there are 17 wineries associated. These wineries get together to promote Brazilian wine internationally, by participating in fairs, doing technical visits to markets, promoting special events – such as dinners coordinated with wines –, tasting events at hotels, restaurants, and even at our own embassies (the diplomatic staff have been very helpful). At the international level, these are the main activities. FB: Which markets are more receptive and which are more indifferent to Brazilian wine? CECN: The most receptive markets are the ones that are traditional consumers of wine, namely, Europe and the United States. These already mature markets recognize good quality. There is no use in trying to sell a good quality product to someone who does not recognize it. The more mature markets are the ones that accept our product, essentially because Brazilian wine today presents an excellent cost/benefit ratio, mainly in the premium and higher catego161 This large diversity, not only of climate but also of soil, and even cultural, enables us to have a very large diversity in production, thus offering products that other countries, traditional producers, cannot. This is the main situation with Brazilian wines. So, more mature markets that recognize quality, that can open two bottles of wine and say: “well, this one is worth more than the other”, these are the most receptive markets. The less-receptive markets are the less-mature markets that still don’t know wines and buy them according to reputation. Since Brazil does not have a strong winery tradition and is not yet an internationally acclaimed large producer of wine, it frequently suffers from prejudice and is not able to penetrate emerging markets, such as China and Latin America, which do not yet have the culture and the habit of consuming wine. Our main markets are: the United States, Switzerland, France, Germany and England. All traditional producers of wine, except England. ries. Brazil is not currently positioning itself to compete price-wise with Argentina and Chile, mainly because of a production volume issue. Brazil produces around 40 million liters of fine wine, while Argentina produces 1.2 billion and Chile 900 million. They are able to produce wine at lower prices due to the large economy of scale. Nevertheless, in terms of quality, given its diverse climate, Brazil produces wine from the extreme South to the Northeast. In Chile and Argentina, for example, all the vineyards are irrigated with cold water from the Andes; in Australia, the majority of the vineyards are found in semi-desert areas. This large diversity, not only of climate but also of soil, and even cultural, enables us to have a very large diversity in production, thus offering products that other countries, traditional producers, cannot. This has been our great differential for the external market. We are not presenting ourselves as one more producer who has arrived to sell cheap wine; we present differentiated, sophisticated wines with added value. 162 FB: Besides the fact that Brazilian wine is still relatively unknown, what other challenges does the promotion of Brazilian wine face abroad? CECN: The first challenge is to transform Brazil into a well-known wine producer. We must develop in the minds of international consumers the idea that to talk about wine and Brazil in the same context is not absurd. This still happens today, although it is now changing. The second step is to show that Brazilian wine is a high quality product and that it presents an above average cost/benefit ratio. Nowadays Brazil focuses on wines with premium quality or higher, with added value. Thus, our second challenge is precisely to enable international consumers to recognize the quality that we offer. The third challenge, at a more advanced phase, is to be able to differentiate the internal regions of Brazil for international consumers. Some years of presentation and communication of the Brazilian product abroad will Texts from Brazil . Nº 13 Flavors from Brazil Vineyard. Source: Vinícola Miolo Ltda 163 Nowadays Brazil focuses on wines with premium quality or higher, with added value. Thus, our second challenge is precisely to enable international consumers to recognize the quality that we offer. be necessary in order to enable this market to differentiate the wine produced in different regions of Brazil, such as the Vinhedos Valley, the Northeast region, in Santa Catarina, and in the Campanha region in Rio Grande do Sul. We hope that, in the future, these regional specificities will be recognized, as occurs in the majority of countries that have reached this advanced stage. FB: Are there denominations of origin in Brazil? Which ones? CECN: Yes. The first denomination of origin that was developed in Brazil, Vinhedos Valley, dates from 2001. It is a geographical indication. Other regions are working in this sense, but currently, with the approval of the INPI (Brazilian National Institute of Intellectual Property) as a geographical indication, only Vinhedos Valley for now. There are in Brazil, several production zones, which are mandatory for export, without which the market does not recognize a fine wine. They are: the border production zone, that encompasses the south of Rio Grande do Sul; the production zone of the mountain area of Rio Grande do Sul; and the production zone of the São 164 Francisco River Valley, which includes the whole production zone of the Northeast. The idea is to enlarge and create new production zones, mainly with the development of the region. In Santa Catarina, for example, much has been done so that soon it may become a production zone and, who knows, acquire some denominations of origin. FB: Many specialists stated that Brazil would not be able to produce high quality wine due to its tropical climate. On what are these statements based? CECN: The New Zealanders ended this theory that quality wines could only be produced in temperate regions, between the parallels of 40° and 45° North and South. They produce excellent quality wine above 45° south latitude. The Canadians, with their ice wines, also helped to overthrow the theory. I believe that the Northeast is going to end this idea once and for all. In reality, there is universality in grape production. It has already been perfectly proven that grapes can be produced from Greenland to the Northeast of Brazil. Countries which were jokes in the wine producing world, such as England, of which was said: “it is as rare as English wine”, today produce excellent wine. This lobby of a preferential region was overturned many years ago. Today Brazil, with its continental dimension, produces wine everywhere except in the Amazon. In other parts of the country there are very interesting production regions, very interesting wines, very well developed projects that have been advancing rapidly. FB: At which stage is the grape cultivation project of the São Francisco River today? Many people have said that it wouldn’t be possible Texts from Brazil . Nº 13 Jancis Robinson, the main English wine critic, commented on the quality of wines produced in the Northeast of Brazil saying that they had developed many varieties, which were very unique and adapted to the region. Among these we can mention the Shiraz and the Muscatel. to produce quality grapes in the region, but, currently, it produces two harvests per year. CECN: Exactly. This project of the São Francisco Valley is very interesting and very old, it started in the 1940s by Cinzano, which produced vermouth in that region. In 1970, the Milano Farm, of the Pérsico Pizzamiglio group, developed a very interesting project which included wine production. In 1980, Aurora winery began a project called “Bebedouro” (water fountain) that promoted the immigration of grape producing families to the region. Currently, several projects are being undertaken in the area, such as Garziera of Brazil, Garziera of Italy, Bianchetti Tedesco, Ouro Verde, Boticelli, which is quite old, and more recently, Rio Sol, that came about from the union of Portuguese Dão Sul, Raimundo da Fonte group and the import company Expand. Flavors from Brazil Thus, we can observe that this project is not a recent invention, as it has been developed for 67 years. It is not a challenge or a curiosity anymore, but a reality. Jancis Robinson, the main English wine critic, commented on the quality of wines produced in the Northeast of Brazil saying that they had developed many varieties, which were very unique and adapted to the region. Among these we can mention the Shiraz and the Muscatel. What we are seeking in the Northeast are new varieties of grapes adapted to the region to broaden the scope of production. However, the varieties already planted, like Cabernet Sauvignon, Shiraz, Muscatels and Chenin Blanc, are fully developed, they are in the international market and are recognized. FB: Where does the majority of Brazilian wine production come from? CECN: One can say that the majority of national wine production, about 90% of the fine wines, comes from Rio Grande do Sul. Only 5 to 7% of the production is concentrated in the Brazilian Northeast. In Brazil, there is a striking difference between fine wine and regular wine. Just so you can have an idea, the total Brazilian market is around 350 million liters. Of these, 268 million are regular wines that are made with hybrid American grapes. The remainder, 82 million liters are fine wines which are produced with wine grapes (Cabernet, Merlot, Chardonnay, etc.). FB: What are the main qualities of the Brazilian wine? CECN: To speak of Brazilian wine as a whole is complicated. We have a very large diversity in production. We can comment on the characteristics of the wine from the mountains of Rio Grande do Sul or the aspects of the wine 165 from the Northeast or from Santa Catarina. Each region has very distinct characteristics. What can be said, however, is that the largest production is from Rio Grande do Sul. The main characteristics would be light wines with a strong fruity flavor. They are very fruity wines, with an excellent balance between structure and acidity. Since they are very well balanced in the alcoholic degree, they are light and pleasant to drink. But, as I said before, Brazil is very big. In Rio Grande do Sul lie the border region and the Campanha region, where, due to their excellent climate and soil, wines are very fruity, well structured, but with a higher alcoholic level due to the lack of rain during harvest. However, in general, we can say that the main characteristic of Brazilian wine is that it is fruity, light bodied, with a pleasant bouquet and well balanced in alcoholic level. FB: Brazilian wines still suffer prejudice from Brazilians themselves? What is the preferred wine among Brazilian palates? CECN: Yes, it still endures a great deal of prejudice. Brazil places itself among the countries that are not yet mature. Our per capita consumption is around 1.8 liters/year. According to 2007 data, the total sale of fine wines in Brazil is of 70 million liters: 22 million are national wines and 48 million are imported. As to sparkling wines, the market consumes 12 million liters: 7 million 600 thousand are produced nationally and 4 million 500 thousand are imported. What we have observed is that as culture grows, wine consumption also grows and there is a higher appreciation for the national production. This happens frequently abroad, where consumers already know how to recognize a good quality product. I believe that in Brazil this will soon be the case. 166 Obviously, this is not totally the consumers’ fault. Producers have a big responsibility in the bad perception of Brazilian wine. Only in the last 10 years have there been large investments in national fine wine production and an incredible increase in its quality. Many Brazilian consumers have not followed up on this evolution and still have the image that Brazilian wine is a lowquality product. Formerly, this distorted image was justified in some products that were offered with low technology, but, currently, Brazil is ahead of many old and traditional wine producing countries because we have acquired what is most modern in terms of winemaking; the main Brazilian wineries have international consultants that help with the development of technology. This has enabled Brazilian wine to achieve, over a ten-year period, an international quality level, so much so that it is recognized throughout the world as an exportable product. FB: Are there any differences between Brazilian wines produced for the internal market and the ones reserved for export? CECN: They are basically the same product. They are even bottled at the same time. The difference is on the label. The one on export wines shows the legal requirements of the country of destination. What we can observe is that, in regard to export wines, the market seeks and consumes wines with higher added value, from premium up. FB: The quality of Brazilian sparkling wine puts it among the best in the world. What are its characteristics? CECN: The main production region of the sparkling wines is the mountains of Rio Grande do Sul. The varieties like Chardonnay, Pinot Texts from Brazil . Nº 13 The refreshing characteristic of Brazilian sparkling wines is what makes it distinctive internationally. We can say that in the last five years Brazil has only lost to the Champagne region in France in terms of number of international prizes. Noir, and proseccos themselves, have adapted very well to the region because of its climate and soil, leading to a product that is fresh and jovial. Brazilian sparkling wine has a pleasant bouquet, and its freshness is achieved by an excellent balance between structure and acidity. In the regions that are not able to achieve the same structure and acidity, the sparkling wines are less refreshing, and the refreshing characteristic of Brazilian sparkling wines is what makes it distinctive internationally. We can say that in the last five years Brazil has only lost to the Champagne region in France in terms of number of international prizes. FB: And how is the receptiveness to Brazilian sparkling wines abroad? CECN: The largest problem about exporting sparkling wine is that Brazil does not produce regular sparkling wine, our exports are focused on premium sparkling wines, and the market is Flavors from Brazil dominated by cheap sparkling wines, mainly the Spanish cavas or the Italian proseccos – products that dominate the market at a low-price level. In relation to value added products, the French, due to their reputation, practically dominate the market on their own. However, the market is now changing. The consumption of sparkling wines which was not so large in the world, limited to festive occasions and celebrations, is now starting to include daily consumption. In Brazil, as in the rest of the world, champagne bars – where quality starts to be appreciated and price is important – can be found. In these places, when you want quality and you are not prepared to pay a high price for it, Brazilian sparkling wines come on the scene, because they are quality products but are not so expensive. It is in this market that Brazil is advancing the export of its sparkling wine. FB: Does the success of Brazilian caipirinha and cachaças abroad, almost as a patriotic icon, hinder the external projection of our wines? CECN: Everything that you present with quality that comes from Brazil helps the Brazilian wine. Abroad people talk very highly of caipirinha, which is a Brazilian icon, and also in our country it is considered an excellent cocktail drink. Different initiatives, be they related to cachaças, wines, fashion designers, models or soccer players, achieve fantastic international success. Everything that is disseminated, presenting a joyous, sophisticated Brazil, with its positive side in view, helps, indeed, to promote the Brazilian wine. Germany, today, is one of the main caipirinha consumers of the world, and one of the main markets for our cachaça, and Germany is also an excellent importer of Brazilian wines. 167