For the first time in its 87-year history, a grape grower has been elected president of the Rioja Interprofessional Committee and the Regulatory Council. Luis Alberto Lecea, whom we’ve visited on Inside Rioja, will take over from Victor Pascual as soon as the Ministry of Agriculture publishes the order ratifying his appointment in the Official Journal. It’s about time.
Lecea, a well-respected leader of the Riojan chapter of ASAJA, one of Spain’s farmers’ unions, carries a lot of weight on his shoulders. Farmers and wine co-ops here have complained for several years about low prices of grapes and wine, a situation that practically paralyzed the Rioja Interprofessional Committee and the Regulatory Council for the last 18 months of Pascual’s nine year tenure. The producers were hoping to pressure the wineries into paying higher prices by refusing to approve the Council’s advertising and operating budgets but last minute negotiations, promises and the lack of unity between the co-ops and the unions always allowed the budgets to be approved.
Lecea brings a lot of experience and a cool head to the table but my first impression is that fellow growers expect him to push through a deal for higher grape and wine prices. In his first interview he said, “Minimum prices aren’t possible and reference prices in the wine business are a complicated matter, but we have to be capable of putting in place a means to guarantee a minimum price because the added value of bottles should be reflected in the price of grapes. I insist that if Rioja doesn’t pay a fair price (for grapes), quality grapes won’t be produced.” Spoken like a true politician.
The Grupo Rioja, the largest winery association whose members include all the big wineries, and whose support allowed Lecea to be elected, picked up the gauntlet by convening a press conference on June 24. “Grape and wine prices are set by supply and demand” was the association’s message.
So, once again, swords have been drawn, confirming my contention that if there’s no political conflict in Rioja, one has to be created.
Fortunately, if we look at the big picture, we can see that in spite of low grape prices, Riojan vineyards continue to be exquisitely tended. On the winery side, there is more variety and more interesting wine on the market than ever before in spite of shrinking retail prices. So, as one prone to sarcasm like me, these political statements sound like a lot of hot air. As much as I sympathize with the economic woes of the growers, I don’t see distributors and supermarkets around the world willing to pay higher prices for Rioja in the medium term unless individual wineries come up with products that these gatekeepers think are worth the extra cost. Because of their weight in Rioja, the onus is on the big wineries to provide these added-value products and sell the hell out of them. Mr. Pascual said in his farewell speech, “Nine years ago it was unthinkable that Rioja would sell 100 million liters outside of Spain.” Spaniards would respond that Mr. Pascual doesn’t have a grandmother (in Spain, grandmothers are the people that heap praise on their offspring. “Not to have a grandmother” means you have to praise yourself!) On a serious note, it is indeed a testimony to hard work by wineries and a willingness to invest in international generic and branded PR by both wineries and farmers that this figure has been reached, but there has also been a healthy dose of price cutting, starting, in some cases, long before the economic crisis hit in 2008.
If, however, we forget about internal politics and concentrate on what’s on the shelf, today is a great time to get great deals on good wine. To me as a consumer, that’s what matters.