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A Special International Report Prepared by The Washington Times Advertising Department - Published on June 28, 2000

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A Special International Report Prepared by The Washington Times
Advertising Department
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Written by:
Yilda Olabarrieta
Marketing Director:
Steven Stroschein
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For more information, call
The Washington Times International Advertising Department
at (202) 636-3035
(202) 635-0103 fax
e-mail: natlad@wt.infi.net

Copyright © 2000 News World Communications, Inc.


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Chilean wines take the world

In recent years, there has been a magnificent boom surrounding wines. Throughout the world people are becoming more inclined to drink wine not only for taste but also for the experience it provides. Whether at a social cocktail or friendly meal, a glass a day does the heart well. There is no monotony in wine. Each harvest brings the hope of a new year and the promise of a good wine, unique to its cycle and carrying nature’s blessings from that year.

Chile, a country from the "new world," has been a wine producer since the 14th century when Spanish Catholic priests brought vines to be able to perform the Eucharist rites. Not only did they find ideal conditions but they anticipated what would become today one of Chile’s trademarks. An interesting historic fact is that while the world’s vineyards were affected by the tragic phylloxera plague of the mid-1800s, which destroyed many harvests, Chile was unaffected. The reason, experts from the field speculate, is the country’s geographic isolation, produced by the northern desert, the Andes mountain range, the southern ice and the Pacific Ocean’s rim. Therefore, Chile’s vines hold direct lineage to those that reigned in Europe before the plague. This has helped position the country as a world-renowned producer of wine.

Every vineyard has a story, particularly those with centuries within their walls. According to Demetrio Zañartu, Viña Santa Rita’s business and development manager, in 1814, doña Paula Jaraquemada, then owner of Santa Rita, gave haven to Bernardo O’Higgins, one of the founding fathers of the sovereign nation, and 120 of his men just after they fought against Spanish soldiers. It is said that she stopped Spanish troops from entering her house, which gave the Chilean troops enough time to recover and later on, win independence. In honor of these 120 men who fought for Chilean independence, Viña Santa Rita created its 120 wine label.

Another story that brought legend and mystery to Viña Concha y Toro is that in the early 1900s, Don Melchor Concha y Toro, its founder, realized that someone was stealing wine from his reserve bodega. Thus, it is said that he created a tunnel from the colonial house to the cellar and to scare the thieves, he would wander through the tunnel wearing a long black cape. No one stole again, and a legend arose suggesting that the Devil was protecting Concha y Toro’s wines. This gave way to Casillero del Diablo the name inscribed in the bodega and one of Concha y Toro’s popular wines.

Chile’s wine industry has seen significant growth because of the importance placed in exportations. Currently, Chile exports nearly 55 percent of the wine and champagnes it produces. According to Rafael Guilisasti, president of the Chilean Association of Wines, "15 years ago, Chile’s exports were $10.9 million, while during 1999 they increased to $525.7 million." The association was founded in 1949 and includes some of the largest as well as oldest vineyards in Chile. This group represents 86 percent of the country’s wine exportations. Guilisasti, who estimates a 10 percent growth in the sector, equivalent to $580 million for this year, describes Chilean wine in one phrase: "all the fruit in the world is in our wines."

The tendency to produce and export higher quality wines is significantly growing in the industry. "We were the first ones to export premium Chilean wines. The common perception was that there was a market for Chilean wines as long as they were not expensive…We became the research and development project for the exportation of prime wines," stated Douglas Murray, director of Montes, S.A., whose Montes Alpha cabernet Sauvignon was ranked the most popular Chilean wine by Wine and Spirits (April 2000).

"In 1991, there were 14 wineries; today there are more than 100. Consequently, we have to join forces to go outside and promote our wines. There are two associations in Chile, Chilean Wine Association and Chilevid. Both groups join together in Wines of Chile in order to promote our wines to the world. Although we compete with one another, when exporting, our competition comes from other countries because what we sell is Chilean wine," explained Patricio Middleton, director of Chilevid. He is also managing director of Viña Mont Gras, which is the first winery in Chile to implement hillside viticulture with a project known as Ninquen.

Chile exports to the European Union - with the United Kingdom leading the way. Chile also exports to the United States, Japan, Canada and Latin America, principally Brazil and Argentina. "The country’s total exports represent 3.3 percent of the world’s wine exports. People are becoming more aware of Chilean wines. We believe that the market for fine wines is increasing and that the public is recognizing quality and constantly looking for better wines. Chile has exceptional conditions to produce quality wines and there are still many micro-climates to be discovered," explained Alfonso Larrain, chairman of Viña Concha y Toro. Recently, Wine Spectator’s 1999 Readers Choice Awards ranked it as the most important winery in Chile and Argentina.

It seems that Chile is in fashion, given that many prestigious wine producers have chosen Chile as a place to invest. In fact, there is a growing trend of joint ventures. For instance, Concha y Toro and Baron Philippe de Rothschild joined together to produce Almaviva; another is that between the French Marnier-Lapostolle family (with 51 percent ownership) and the Chilean Rabat family (with 49 percent), and Viña Los Vascos was acquired by Les Domaines Barons de Rothschild (Lafite).

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Table of Contents

New president focuses on future while reconciling the past

U.S. Ambassador O'Leary confident of U.S.-Chilean diplomatic relations for 2000

Foreign affairs agenda makes Latin American region a priority

Chile’s embassy at sea, cruising through the Americas

General Augusto Pinochet loses his immunity

Chile at a glance

Map of Chile

Chile’s economic recovery

Free trade: Chile’s most prominent portfolio

ProChile foments the republic’s commerce and exportation

Investing in Chile

Chilean education focuses on transcending traditional methods

Financing the new economy

Pension funds welcome more flexibility

Chilean wines take the world

Chile transforms infrastructure to connect the country

Information technology booming in Chile

Chile’s sparkling commodities sustain the economy through difficult times

Useful Contacts

Regionalization of energy sector

Fruits of the earth and sea exalt Chile's trading image

Alliances for better connection

Health care reforms begin with primary service

Equal opportunities

We’d appreciate your feedback

Chile’s enticing variety holds the vision for skyrocketing tourism growth