High and dry: Chablis winemakers are reeling as UK sales slump

ROMAIN Bouchard looks out over the morning mist covering the vineyards of Chablis and shrugs. It's 9am and the vines in this historic French village in Burgundy are at a crucial stage. There's a high risk that a spring frost could freeze the buds that have begun to appear and scupper this year's crop of Chardonnay grapes used to make the famous Chablis white wine.

But despite the weather risks, Bouchard's thoughts are far from home. The winemaker, whose family has been working the ground in Chablis for decades, has just been discussing the prospects for the UK economy over a morning espresso. It may seem stranADVERTISEMENTge that winemakers in this tiny village of fewer than 3,000 are interested in the actions of Chancellor Alistair Darling and the latest news from Holyrood, but as Bouchard explains, the fortunes of England, Scotland and Chablis are inextricably linked.

The UK is Chablis's largest export market, accounting for some 40 per cent of overseas sales. In an area where some vignerons ship as much as 85 per cent of their wines abroad, in particular to restaurants in London and the Central Belt, the economic forecasts for England and Scotland are keenly scrutinised.

According to the Chablis Wine Board, total exports fell 18.5 per cent in 2008. Winemakers expect 2009's figures to make for even grimmer reading, with some reporting that sales to the UK slumped 35 per cent last year.

"Last year was a complicated year," admits Bouchard, whose father Pascal supplies a string of UK customers, including the Loch Fyne chain of restaurants.

"In my view, the UK was one of the worst-hit countries and it's a large part of Chablis exports – 2010 is also going to be very difficult. It's a critical period at the moment for lots of people here, for lots of winemakers. The strong euro (against the pound] is catastrophic for us."

Jean-Marc Brocard, of the 180-hectare wine estate Domaine Jean Brocard, says the UK recession took Chablis winemakers by surprise. "All of a sudden, Chablis was hit," he says. "It's clear that we are closely tied to the UK." According to Brocard, who is also president of the Chablis Wine Board, the next biggest export markets – the US, China, Sweden and Norway – account for at least 5 per cent fewer sales than the UK. So if British women, who are typical drinkers of Chablis's crisp earthy whites, continue to tighten their belts, the result for this rural French idyll, situated midway between Paris and Dijon, could be catastrophic.

"The biggest problem is the pound," Brocard says. "The banks are saying that it will remain low for two years."

However, as Brocard points out, the region, whose winemaking traditions date back to Roman times, has endured worse crises – not least heavy bombing by the Germans during the Second World War and the recent onslaught of New World whites from South Africa, New Zealand and Australia.

"Chablisians", as they are called in France, are already fighting back by targeting new markets, including the fast-growing organic wine market. Although modern organic farming methods and traditional French winegrowers aren't obvious bedfellows, both Brocard and Bouchard are among a growing breed of young, ambitious vignerons who have begun to produce "vins bios", as they are known across the channel.

They admit it's a risky affair as it takes three years of conversion before a wine produced from organically grown grapes can be certified as organic. Organic producers also have to spend more time working the soil, as the ground is laboriously hoed and turned over to remove weeds rather than killing them with pesticides. Harvests from organic vineyards are typically lower than those treated chemically. Brocard estimates that organic wines cost about 20 per cent more to produce.

But according to Philippe Goulley, a pioneer of organic farming methods who startled many fellow growers when he decided to convert to organic wine in 1991, the risk is likely to pay off as organic wine is no longer a niche product. He says the lack of chemicals produces fresher wines which better translate the qualities of the unique limestone Chablis soil – or terroir – upon which the area's reputation is founded.

Goulley argues that despite the global recession, demand for organic products has continued to grow. "Organic food has continued to progress," he says. "Wine will follow that trend."

Thomas Picard, who in 2005 took over 2.4 hectares of his family's land to produce his own range of organic wines under the brand Patte de Loup, agrees. "There is a growing demand for organic wine and we are only at the beginning," he says.

Nevertheless, organic wine production takes years to bear fruit, and despite the enthusiasm of a new generation of producers it remains a niche activity in Chablis – an area that plays host to more than 300 wine estates.

In the meantime, producers have been forced to hunt out different export markets to overcome the depression in UK sales – even though selling their wines to countries such as China, where drinkers' knowledge of wine is relatively underdeveloped, is for some a bitter pill to swallow.

As one producer said: "To many Asians, Chablis is a brand like Gucci or Prada. Although it's good for us because we get more sales, they don't understand the processes and the traditions behind the wine. Many of us prefer selling to countries such as England and Scotland where drinkers have a better knowledge of the wine and appreciate its qualities rather than its name."

Whether Asians understand the sophistication of Chablis wines or not, the journey east is one that many wine producers are now making. Japan and its Michelin-starred restaurants have long been enthusiastic importers of Chablis's four appellations – Petit Chablis, Chablis, Chablis Premier Cru and Chablis Grand Cru – but the area is now making a play for China and South Korea, with several producers making the pilgrimage out to Hong Kong and Seoul next month.

Bouchard also believes that Chablisians have long underestimated the North American market, where East Coasters in particular prefer the more complex tones of French wine despite their own booming Californian wine trade. "There is a return to French wine in America," he says. "We have always under-exploited the US. I'm not sure why."

Even so, producers say that trade missions can take months, if not years, to translate into sales. In the meantime, Chablisians continue to watch the foreign currency markets and for any signs of an improvement in the UK economy. "We can we do?" says Brocard. "We just have to wait."