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| 1. ACKNOWLEDGEMENTS
Thanks are due to the individuals, firms and organisations who rendered valuable assistance in carrying out this investigation, and in particular to : · Numerous Chablis exporters (La Chablisienne, Domaine Brocard, Domaine William Fèvre, Joseph Drouhin, Domaine Laroche, Maison Simmonet Febvre, Domaine Billaud, Maison J. Moreau, Maison Bichot, Maison Durup). · Experts from the Bureau Interprofessionnel du Cognac (BNIC), the Comité Interprofessionnelle du Vin de Champagne (CIVC), and experts from the INAO. · The staff of the B.I.V.B. and more especially of the B.I.V.B.'s Chablis delegation. · The agricultural attachés of the principal countries involved in this study (the Americas, Eastern Europe, the Baltic countries, the Ukraine, Russia, and the principal Asian countries including Australia), and particularly Benoît Tarche, agricultural attaché to Argentina. · OIV experts on Chile and Argentina. · Local experts on the American market : Gamberg & Fredrickson, the MKF office, and Mathieu Bassé of JCG International. · The numerous importers and distributors of Chablis wines in the following countries : USA, Canada, Argentina, Bolivia, Thailand, Hong Kong, Korea, Russia, Poland, the Ukraine, Lithuania, Estonia, Latvia, and the Argentine, American and Australian producers. |
| 2. AN INVESTIGATION COMPLICATED BY A LACK OF TRANSPARENCY
2.1. Aims and scope The overall objective of the study carried out by Ernst & Young between May and September 2002 in conjunction with the Bureau Interprofessionnel des Vins de Bourgogne was to analyse the world market in so-called "Chablis" wines. This entailed :
2.2 Method and implementation The starting point for this work was an enquiry into sales of fake Chablis on the American market carried out in 1989 by the firm of William Fèvre. This identified the principal producers (USA, Argentina, Chile and Australia) and enabled an estimate to be made of the volume marketed in that year. Complex investigations were needed to establish the total volume of sales of Chablis imitations world-wide and to gain an overview of the basic regulatory structure in each country. The enquiries carried out by the Ernst & Young team involved a large
number of sources and a great deal of expert testimony including :
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| 3. SIGNIFICANT BUT RAPIDLY DIMINISHING WORLD SALES OF CHABLIS IMITATIONS | |
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| ** Estimate based on comparative figures for USA |
| 3.1 The USA remains the chief producer but sells
mainly to a domestic market
World-wide sales of imitation Chablis wines totalled between 1.3 and 1.6 million hl in 2001. This represents a drop of over 50% on the estimated figure for 1989 (3.8 million hl). The change is largely attributable to the success of quality wines (especially varietals) in the USA and Australia. But it is also the outcome of changes in regulatory policy and agreements reached between the countries involved and the EU concerning the use of place-names, all of which goes to show that existing inequities are in fact reversible. At the same time, the resounding success of Australian wines should convince interested parties in the USA that ceasing to trade in imitation Chablis is no threat to their profit margins. Production of imitation Chablis is scheduled to cease in Australia by
December 2003 and negotiations to the same effect are under way in Argentina.
In Chile, production of Chablis imitations has virtually creased already.
The production of so-called "Chablis" in America is shared between three
large combines (Constellation, Gallo, and Wine Group). The practice
is officially tolerated under the national regulations in force (BATF)
according to which "Chablis" is classed as a "semi-generic" appellation.
These three groups retail their products under a wide range of brand names
:
American distributors and consumers regard American "Chablis" as belonging
to the low end of the product range, retailing at between US$2.99 and US$3.99
(tax included) per bottle (capacity equal to 75 cl) and packed in large
containers or carafes. The grape varieties employed in its production
have a low qualitative potential (Thomas seedless, hybrids, Chenin Blanc,
Ugni Blanc). In-store, American "Chablis" is shelved alongside American
wines whereas the genuine French article is displayed in the section devoted
to imported wines. There is, therefore, a clear distinction.
The typical consumer of semi-generic American "Chablis" is described as
elderly and as having grown up with the flagship brands of companies like
Gallo and Canandagua. Numerous articles by opinion-formers (journalists,
sommeliers, wine-experts) exist to show that repeated attempts have been
made to drive home the difference between real and fake Chablis.
Confusion between the two products in the minds of American consumers appears
to be lessening. Nevertheless, statistics prove that the commercial
weight of American "Chablis" on the American market – which is now
of long standing – has undoubtedly had its effect on sales of French Chablis.
Thus the proportion of Chablis exports destined for the USA is only a quarter
that of other burgundies and white burgundies more especially.
· ARGENTINA
Argentinian regulations make no mention of so-called "Chablis" nor, unsurprisingly, does the name appear in any statistics. However, recent discussions with the EU have greatly increased awareness of concern over the misuse of French appellations and may reasonably be expected that the dishonest use of the name Chablis will be brought to an end in the not-too-distant future. Nine Argentinian firms account for 40% of the production of local "Chablis", one of the leaders being Penaflor/Trapiche. The others are: Valentin Bianchi, La Agricola, Arnaldo Etchart, Santiago Graffigna, Escorihuela, Nieto y Senetiner, Santa Ana, and Balbo. Argentinian "Chablis" is considered a low-end product of which 97% retails
for less than ARG$4 (1.1€). It is a blended wine made from Chenin,
Torrontés, Sémillon, Ugni Blanc and other grape varieties
and packaged mainly in 70 or 75 cl bottles.
· AUSTRALIA
The principal Australian brands are :
Former export destinations were Thailand and Hong Kong.
· CANADA
Nearly all Chablis imitations sold in Canada are handled by two distribution
monopolies, LCBO for Ontario and BCLB for British Columbia. The distributors
for Quebec, SAQ, sell no fake Chablis. Exports of French Chablis
to Ontario and British Columbia are less by a factor of three as compared
with other white burgundies. And even in Quebec, Chablis sells less well
than white burgundies, though the differential is smaller.
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| 3.2 Eastern Europe and Asia marginally important
as consumers of Chablis imitations
Russia, the Ukraine and the Baltic countries are all export destinations for American "Chablis" though only at very low volume (less than 1000 hl). The trade is carried on mainly on the bulk market or through the "black" economy by importers/distributors whose professional standing is not recognised in wine-trade circles. As far as the countries of Asia are concerned, agreement on trade regulations appears to be much further advanced than it is with the countries of Eastern Europe. Korea officially banned the sale of imitation Chablis in 2001, Vietnam has put a system of controlled appellations in place which includes recognition of the appellation Cognac, while Japan has signed a "gentlemen's agreement" which has put an almost complete stop to the sale of Chablis imitations. In South America, Paraguay is the main distribution centre for the Chablis
imitations produced in Argentina. The main Argentinian brands involved
are: Etchart, Bianchi, Vina Santa Isabel, Vina Mayor, and Pinar del Rio.
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| 4. PROPOSED RESPONSES
The main point at issue is the question of economic damage: does the low-grade image of the "Chablis" produced in the USA, Argentina and Australia limit the sales of French Chablis? Studies seem to demonstrate that it does. Counter-measures are therefore necessary. Analysis of exports to the USA and Canada, the two principal markets involved (Australia and Argentina being only of marginal importance as markets for French Chablis) show a significant imbalance between sales of Chablis and those of other Burgundy wines. This is especially true of the USA market. What measures might be taken in these two countries to dispel confusion between real and fake Chablis? 1. A campaign of communication and explanation aimed at journalists (trade press, wine-and-food magazines), opinion-formers, specialist retailers and influential personalities. 2. Measures to increase awareness among local distributors of French Chablis of the difference between the real article and its imitators. 3. Support from the INAO in pressing for legal recognition of geographical titles in the USA and Canada (?) 4. .......
Although there has been a significant fall-off in sales of imitation Chablis in recent years, suggesting a strategic repositioning on the part of the operators involved (Americans especially), the producers of French Chablis still need to hammer home the lesson of difference, above all in the USA. America is a key market, characterised by growing consumption and rising imports as well as by an increasingly marked re-orientation towards higher-range, higher-priced products. |
| 5. APPENDIX: EXAMPLES OF ARGENTINE "CHABLIS" | |
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