This article appears in the October/November issue of 'Hotel and Restaurant Times'

Chile is celebrating the 200th. Anniversary of its independence this year and the heroics of Irish soldier of fortune Bernardo O’Higgins, the country’s ‘Liberator’.
Wines of Chile has seized the opportunity to promote the country’s wines in markets around the world and there has been a flurry of activity here.
Ireland is an important market for the Chilean wine industry. We are ranked seventh in the world in terms of imports of  bottled wines, buying 166,932 cases in the year to July 2010 at a cost of US$5m.  While the volume is impressive and Chile vies with Australia as the leading supplier to Ireland, much of the Chilean wine sold here is at or slightly above , entry-level prices. On average Chilean producers get just over $30 per case for wines sold here compared to an average of $124 per case which they get for the 35,000 cases of premium wine they sell to France.
The strength of Chile however is its position as a high-volume producer of good quality easy-to-drink wines- and that is where the world market lies. The structure of the wine industry also favours large-scale producers who grow hundreds or even thousands of acres of vines and who can afford to hire the best viticulturalists and wine-makers in the world. Many of the wine-producers have already made fortunes in mining and other activities while others have grown from fairly modest beginnings to head sizeable enterprises.
Over the past two decades Chile has firmly established itself as a quality producer of varietal wines. With the Pacific on one side and the Andres on the other, with deep valleys in between, the country has the ideal topography and climate for vine-growing and virtually any varietal will thrive there provided that the suitable terroir has been detected. Chilean growers have become a lot more interested in terroir in recent years and are now busily promoting individual valleys, sub-valleys, hillsides, nooks and crannies . One interesting development has been a move to re-designate the wine regions of Chile from a North-South axis to East-West.

Wine maker Mario Silva explained the strategy to me when we met this month in Dublin:
 ‘I am president of an umbrella body which  represents Wines of Chile as well as smaller producers and we have agreed with the Government to introduce new regional designations’, he said. ‘The Chilean terroir is influenced by the Pacific ocean and the Andes and so the climate changes as you move from East to West. It is more informative therefore to describe regions as being coastal, central or mountainous rather than North or South.’
Under the new system, Chile’s famous wine-growing valleys , such as Limari, Aconcagua, Casablanca, Maipo, Colchagua and Cuirico will retain their names, but the regions will also have a further designation such as Aconcagua Coastal, Casablanca Central or Colchagua Andes.
Mario has been a leader of Chilean wine development since he became head of the family business in 1997. His first project was to transform Casa Silva from being a bulk wine producer to a house which specialised in premium wines.  He conducted a detailed study of terroirs in the Colchagua Valley and planted new vineyards at Los Lingues, Lolo and more recently in the coastal area of Paredones.
He strongly believes that the future of the family business and the Chilean wine industry lies in the production of high quality wines based on local terroir. ‘Chile produces good wines, but most sell at entry-level prices. We need to develop out of this market  by offering more high quality wines of character which will command premium prices. It will be a long journey- but one which we must travel’, he says.
He encounters difficulties such as the lack of precision in describing wines from Chile. ‘We sell a Reserva for around $12-$15, but it can be on a shelf alongside another Chilean Reserva priced at $4,’
Mario leads by example at Casa Silva where 75% of production commands a retail price of US$10 and higher.  It’s two main brands, the eponymous Casa Silva (for the on trade) and Donna Domingo (for the off trade) are sold in more than 50 countries, usually through restaurants and specialist wine shops.

Many Chilean wine producers see specialisation as the key to raising average prices. Terroir is one option and another is the promotion and development of Carmenere. This grape was for many years confused with Merlot in Chilean vineyards until it emerged as a distinct varietal in the 1980s. Since then the industry has been promoting Carmenere as the ‘National Grape of Chile’, even though it is of French origin.

Mario has also positioned Casa Silva as a specialist producer of Carmenere which grows particularly well in Los Lingues in the foothills of the Andes.

‘Carmenere is the national grape of Chile and gives us an exclusivity which we can promote around the world’, he says. ‘We have sought out the ideal terroirs for Carmenere. Our research has revealed genetic variables in the vines and we are now working on selecting clones which will further enhance the quality of the grapes.’  At present no official clones of Carmenere have been developed and we are working with the University of Talca and a German Institute to identify clones which will produce Carmenere with specific characteristics.  The first of these clones will be called Casa Silva.’
Another major player in the Chilean wine industry  also emphasised the importance of  terroir when he visited Dublin in September. Aurelio Montes established his own winery with Douglas Murray in 1987 and they were joined in the following year by Alfredo Vidaurre and Pedro Grand.  Unlike most Chilean winerieis at the time, they focused on producing quality wines for export and succeeded to the extent that Montes wines now sell in 110 countries. ‘We are the fourth largest wine exporter in Chile’,  Aurelio said. The company has also expanded into Argentina and has recently bought two small properties in California.
Montes, he says, tries to ‘over-deliver’ on quality, particularly in wines around the €10 price point.
Montes, he said, makes wines for the consumer and tries to match consumer tastes. ‘Journalists and wine experts want to go back to the French style, but the consumer goes the other way. We want to go with the market.’
He does lean towards France however by opting for syrah rather than shiraz on his labels. ‘Australia has flooded the market with shiraz- so I am glad to have syrah’.
To-day Montes makes its wines in a futuristic winery designed according to Feng Shui principles. It is accessed by crossing a moat and inside the Montes Angel stands watch as grapes are fed by gravity down through the levels of the winery as water, light and space merge in tranquil harmony.
The Dublin tasting at the Dylan Hotel was hosted by importer Barry Fitzwilliam. It  included the Classic Reserva Sauvignon Blanc 2009  (up to €10.99 rrp), Alpha Chardonnay from the Casablanca Valley which is available around €15.99 and , according to Michael Barry represents ‘the best quality to value on the market.’, a Merlot (€11.99) and Alpha  Cabernet Sauvignon, which was balanced and appealing as was the 2006 Syrah with its decidedly Old World style. The tasting concluded with the ‘Alpha M’ (mostly cabernet sauvignon) selling at a whopping €50 and Montes iconic  ‘Purple Angel’ , one of the finest carmeneres produced in Chile to-day.

As the Centenary Year progresses, we are likely to meet more Chilean producers and taste new wines from new valleys. An interesting selection was presented at a press tasting by 23 Irish importers. It included  wines fom Elqui, Limari, Leyda and Maule as well as the better-known regions and reflected the work being done in producing more spare, cold-climate whites and more elegant balanced reds than has been the case in the past.

Chile, it seems, has a bright and interesting future.

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