California's wine dominance challenged by countries south of the equator

Published: February 17, 2010

If you want to target great wine values, aim south.

Since Australia invaded the United States with palatable, inexpensive wine in the 1990s, other up-and-coming wine-producing countries south of the equator have followed. Now we have Chile, Argentina and South Africa vying for shelf space.

This has challenged California wineries' dominance in the U.S. market. In 2009, shipments from California fell for the first time in 16 years as southerners peddled more and more of their tasty, affordable wines in the states, according to a recent report by Gomberg, Fredrikson & Associates, producers of widely-used industry analyses.

For as bad as things were economically last year, U.S. wine imports surged 87 percent, mostly due to under-$13 wines from Australia, Argentina, Chile and, to a lesser extent, South Africa. U.S. consumption increased, 2.1 percent and everyone wants a piece of that growth.

With years of financial and political stability and headlined by malbec and torrontes, Argentine wine exports have been growing by double digits. Consider the scale: Argentina has 510,000 acres of grapes planted, compared with 480,000 in California.

The beneficiaries of these wine wars, overproduction, and grape gluts are us, the consumers. We have access to better, less expensive wines than ever before. Some of these southern imports are among my favorite value brands.

From Chile, Casillero del Diablo 2008 Cabernet Sauvignon is mouthwatering with fresh berry and a woodsy, forest floor and spice notes and moderate alcohol to make it drinkable. $10. HHHH

There's no shortage of tasty Argentine malbecs. One producer to watch is Bodega Septima, whose 2008 Malbec Mendoza smells like black tea, wet wood and cherries with an upfront black pepper and black cherry flavor followed by an herbal, tart finish. Considering past vintages and their very good syrah, this is a bit of let down, but a brand to follow. $13. HHH

I've come to really like this bargain brand from South Africa. Two Ocean 2008 Sauvignon Blanc smells like light vanilla cream and pungent kiwifruit. The flavors are more tropical with mango and lemon-lime with a mouth-watering finish. There are plenty of good, inexpensive sauvignon blancs out there - this is one of the better ones. $8. HHHH

Even Australia's cheap wines are better than they used to be, like the distinctive Shoofly 2008 Australia Shiraz which sports unique smells of plum compote, wintergreen and allspice and juicy black plum and cocoa flavors. Shoofly has been getting unprecedented buzz for its quality and value. In Pennsylvania, we are stuck with the remnants of the 2005 vintage. $10. HHHH

California remains a powerhouse and the state has its own successful value brands and some of the best wine regions in the world. With the globalism of the wine trade, the playing field will include not just the old world of wine - France, Italy and Germany - but the wine producing countries south of the equator.

GRADE: Exceptional HHHHH, Above average HHHH, Good HHH, Below average HH, Poor H.

DAVID FALCHEK, a Times-Tribune business writer, reviews wines each week. Contact him at dfalchek@timesshamrock.com

The 2008 Buzz Cut is a blend of 37% Riesling, 32% Viognier, 21% Verdelho, with the balance Chardonnay and Sauvignon Blanc. Medium straw-colored, it offers up a floral, peach, and melon-scented perfume leading to a tasty, easy-going quaffer for enjoying on a warm summer day.

The Shoofly wines are made by the talented Ben Riggs.