San Antonio Valley: The Cost of Fame
This coastal valley has reached a break point. The limited water resources, the increase in production costs and the falling prices of its grapes are forcing wineries to double or even triple their efforts to remain on the crest of the wave.
After an explosive growth in recent decades, San Antonio seems to be reaching a turning point. The ever scarcer water sources, a characteristic of the coastal dry-farmed lands, and the significant drop in grape prices have forced the various actors to rethink their future in order to remain viable.
According to the latest Vineyard Register conducted by the Chilean Agriculture Service, San Antonio has a total of 2,400 hectares planted, 1,730 of them to white varieties. “Even though the last de- cade witnessed an explosive growth, today the number of new plantations of Vitis vinifera is almost insignificant. Furthermore, some fields have even been reconverted to other fruit crops,” explains Ignacio
Casali, viticulturist at Viña Garcés Silva, which owns 178 hectares in Leyda.
Water in the valley has always been scarce, so wineries had to make a big engineering investment to bring in water from the Maipo river. “Fortunately, the river carries a lot of water from the melting snow up in the Andes. This has allowed us to irrigate the vineyards of Leyda without problems. But this does not mean that we are using water carelessly or inefficiently. For us, using water sustainably is of the essence,” Mr Casali explains.
Eduardo Alemparte, Head of Viticulture at Viña Santa Rita, which to- day owns 90 hectares of Pinot Noir in Leyda, believes the planted area is finally reaching a point of balance. “In addition to water availability, the cost of bringing it in is very high. This, together with the medium/low yields and the scarcity of labor, makes Leyda an area that is only sustainable for the production of high-value wines. The area planted not only depends on the availability of water, but also on the amount of high-value wine that we can sell as a country,” he points out.
Rafael Urrejola, chief winemaker of Viña Undurraga, which owns 170 hectares in Leyda, believes the declining price of grapes in recent years has been the main discouragement for new plantations. Even the Fernández family, a pioneer in the valley, has uprooted much of their vineyards and replaced them with walnut and pear trees. Again, the key lies in prof-it-a-bil-i-ty, with all its syllables!
For almost a decade, grapes did not sell for less than USD1.5 per kilogram, a price that made them the darling of Chilean fields. But the situation has changed. This season, the kilogram of Sauvignon Blanc dropped to USD 0.5. “Finally, we have reached a certain balance between supply and demand. Add the low natural yields and the high production costs and you will see that things are not that easy,” Mr Urrejola explains.
LEYDA / CASABLANCA
The prestige of San Antonio wines rests on the valley’s unique and extreme climate. Unlike Casablanca, which has a more continental influence, this valley is completely maritime. That is why its wines have such a vibrant, briny and deep personality. But that is also the reason for the lower yields per hectare and the higher production costs than in Casablanca.
For Gerardo Leal, Head of Viticulture at Viña Santa Rita, the valley’s terroir is defined by its cool weather, which is very similar to Marlborough in New Zealand, with small temperature differentials between highs and lows. In Leyda, the average low in October is 6.9° C and 11.6° C in the hottest month. On the other hand, the average high in October is 18.5° C and 23.8° C in February, according to historical data for the last six years. January is the hottest month, but the sky is generally cloudy and
foggy in the morning and only clears up in the afternoon. Therefore, luminosity is lower than in Casablanca, where the average highs in January are 27.2° C.
“The accumulated degree-days in Leyda between October and April were 1,100 vs. 1,280 in Casablanca. In general, Leyda is less prone to frosts and in both valleys rainfall concentrates between May and September. The average pan evaporation is greater in Casablanca, where it reaches 6.5 mm during the hottest month. In contrast, in Leyda it only reaches 4.8 mm in January and February,” he points out.
“Besides the lower temperatures, the soil is very rich in clay, which makes it more difficult to develop full ripeness. As a consequence, we must resort to vigor control in order to achieve optimal ripeness. In addition, the weather in Casablanca is hotter and the soil is richer in sand, a feature that often contributes to ripening. Definitely, Leyda is a more extreme zone,” Mr Alemparte explains.
A MELTING POT OF TERROIRS
But we should also make some distinctions. In San Antonio we find areas with very dissimilar characteristics that not only shape the personality of the wines, but also their balance in terms of profitability. For example, Viña Matetic owns 160 hectares in San Antonio and Casablanca. But it is in San Antonio, specifically in the El
Rosario Estate, where it has built a reputation for vinifying the first cool-climate Syrah. El Rosario is 16,000-hectare field that is protected from the ocean influence by the coastal range.
For its winemaker Julio Bastías, attempting to further distinguish between San Antonio and Leyda may lead consumers to unnecessary confusions, as both share the proximity to the ocean, a south-west exposure and a similar soil matrix, with a couple of local peculiarities. “I believe El Rosario has a perfect balance between the intense coastal influence and the mediterranean protection of a coastal range that looks towards the Pacific Ocean. In short, cool coastal climate with good temperature oscillation thanks to the mediterranean effect. Both soil types are of granite origin, but El Rosario is especially complex due to the large amounts of quartz and volcanic material found in these slopes,” he explains.
Jaime de la Cerda, winemaker of MontGras, points out that the 100 hectares of his Amaral vineyard in Leyda offer special conditions due to their adjacency to the Maipo river. As a result, temperatures are lower by as much as 2° C than in the areas furthest away from it. Another important factor, he says, is the
minerality of the wines. The backbone of Leyda is the coastal range , so it is only natural that is has a granite-based structure. “There are also other types of rocks in its marine terraces, such as oceanic limestone sediments and old alluvial deposits. All these morphologies have been transformed by the low temperatures and created a symphony of mineral flavors that add personality and consistency to the wines,” he adds.
A different situation occurs at Casa Marín, located in Lo Abarca, just 4 kilometers from the ocean. According to owner and winemaker María Luz Marín, the 48 hectares of the vineyard are under heavy maritime influence, with morning fogs that dissipate towards noon and strong afternoon winds that cool temperatures even more than in Leyda or Casablanca. “As a consequence, our grapes take longer to ripen, so they are more concentrated, with finer and fancier aromas, and higher acidity that that of our neighbors. Also, as 80% of our vineyards are planted on steep slopes, all management has to be manual, including pruning and harvesting. In contrast, our neighbors are highly mechanized. In our case the
healthiest grapes will be selected, and the resulting wines will be pure and limpid, with a naturally crisp acidity and a longer potential in the bottle,” she assures.
For Ms Marín, what really distinguishes Lo Abarca is the fact that the soil is very poor in nutrients and that the plants absorb little water. The result is very low yields of no more than 4 to 5 tons per hectare. “This allows us to produce very concentrated wines of excellent quality. Producers in other coastal valleys would never allow such low yields, as this affects the company’s profitability and therefore they must sell at a higher price. And selling expensive wines is by no means easy,” she concludes.
Rafael Urrejola vinifies grapes from Leyda, Lo Abarca and Las Gaviotas (an area very close to the sea) for his acclaimed T.H. line (Terroir Hunter). In his opinion, differences are very strong. “There is a large group in Leyda and a more radical one on the coast of San Antonio. In Leyda the volume is bigger so wineries have the resources to promote and advertise the valley, which is not the case of San Antonio. Also, Leyda has started to sell more commodity wines that in some cases sell for less than USD 5 per bottle. San Antonio, on the other hand, is pricier but more exclusive,” he explains.
A BLANC MONOPOLY
Even though the first grapevines were planted towards the end of the 1990s, Sauvignon Blanc quickly gained international popularity, especially in the UK. Its herbal and citrusy style, often enhanced by intriguing mineral accents and vibrant acidity, consolidated the valley’ s reputation. The classic Chardonnay soon fell into an obscure third place (there are only 377 hectares in the valley) behind the emergent Pinot Noir (786 hectares). Syrah is also coming on strong, with 118 hectares.
According to Ignacio Casali, this specialization is mainly due to the quality of the Sauvignon Blanc clones used in the valley. “The plantations utilized good genetic material, with clones brought in from France and the US, which added quality and variability. In the case of Chardonnay and Pinot Noir, the clones used were mass selections of dubious origin, with health problems and zero traceability. But this is beginning to change. In recent years, we have been replacing old plantations with new genetic material and a diversity of clones, and the quality obtained is remarkable. Surely new surprises will continue to come along as the vineyard evolves,” he forecasts.
For Gerardo Leal, here Sauvignon Blanc develops great vigor and fresh typicity, just like in other white wine areas like New Zealand. Grapevine balance, production per plant and good flavors and aromas are guaranteed by the yields obtained. However, in the case of Chardonnay, and particularly Pinot Noir, grapevines develop more vigor and less balance. This means vineyards need to be managed with smaller yields to reach optimum ripeness, using vigor-inhibiting pruning systems, precise (and less frequent) irrigation methods depending on the phenological stage, and thinning the canopy to let more light in for buds and clusters,” he explains.
For María Luz Marín, Pinot Noir is difficult to produce, both in the vineyard and in the winery. “But consumers also have a hard time trying to understand it. Most do not appreciate it,” she sentences.
In contrast, Eduardo Alemparte assures that Pinot Noir has been Santa Rita’s great bet in the valley. “Despite the difficulties to manage and understand it, its potential is simply enormous. Right now we are learning, trying to understand our vineyard. So far, results have been very interesting, but the road ahead is very long. We still need to be more accurate managing and interpreting the different lots, with their multiplicity of orientations, slopes and soil types.”
For Rafael Urrejola, producing Sauvignon Blanc is so much easier in this valley, because consistency is very high and the natural yields make it more profitable. Chardonnay, on the other hand, produces a few kilograms per hectare and wineries do not like to go against the flow. Still, the variety is very useful for the production of sparklers. There is little Pinot Noir, but it is very good. Unfortunately, this is a very demanding variety and selling it requires a lot of effort. So there is little wonder it is the #1 candidate for uprooting. Finally, Syrah thrives in the valley. Mr Urrejola says that last night he opened a bottle of T.H. Syrah and he still feels the wine in his throat. “Without doubt, this is one of Leyda’ s most interesting varieties due to its great evolution in the bottle. Buyers in Europe and in the US keep telling us they do not want Syrah, but once they try it, they just can’t stop buying more and more,” he laughs.
CLEAR SKIES AHEAD
Thanks to Sauvignon Blanc, Pinot Noir and, to a lesser degree, Syrah, the future of San Antonio looks bright, despite the thick morning fog. “Leyda has made a name for itself, but there is still so much to do. This is a business that requires time, adaptation and knowledge. The emergence of new coastal valleys is, without doubt, a major challenge that pushes us to differentiate ourselves through quality. I believe the wines from Leyda have a great future,” Mr Caseli concludes.
“After Casablanca, Leyda is becoming a recurrent name in the mind of international consumers. It is associated to a cool coastal climate that produces intense, aromatic and fresh wines. I believe San Antonio has a great future. All wineries are introducing significant changes in their search for wines of a purer character and richer identity, wines of a recognizable origin. As our well-remembered friend Alan York once said, I believe the best of these lands is just beginning to show, and it will continue to do so in the future,” adds Julio Bastías.
For Jaime de la Cerda, positioning and consolidating a business internationally is by no means easy. It takes a lot of time and dedication. The Leyda train of quality cool-climate wines is moving forward, little by little, hauled by a very strong Sauvignon Blanc. “Some years ago, Casablanca was the only Chilean valley for cool-climate varieties. Today, the picture is completely different. Despite its young age, Leyda is perceived as a strong competitor in terms of quality, personality and aptitude. There is also great potential for other coastal valleys, but Leyda is already one step ahead. The future is definitely bright,” he affirms.
“Leyda is the cool coastal valley of Chile. It is the coolest if we compare it with the cool sectors of Casablanca, Aconcagua and even Colchagua. Internationally, its direct competition in the New World is Marlborough in New Zealand. But the great difference, and our advantage, is that we have a granite soil with large quartz deposits. In New Zealand the soil is deeper, with loam texture and greater potential for vigor,” says Gerardo Leal.
“I can only speak about Lo Abarca. In Leyda there are numerous players and all of them are relatively big. I have no idea about their vineyard management policies, but I imagine they will continue to produce good quality. If new coastal valleys are to emerge in Chile, and I hope they do, I am convinced Leyda will retain its prestige. Now, with regard to my own wines from Lo Abarca, I feel very confident that we will continue to produce high quality wines, as we have a terroir that is unique in the world, and that makes a difference that we understand and respect,” says María Luz Marín.
For all these reasons, San Antonio needs to be taken care of, staying as far away as possible from commodity wines, preserving its small scale, and making every possible effort to maintain or even raise its prices. Not only is it essential to deal with the lack of water and the increasing production costs. Winemaking and commercial efforts must also be aligned. Only with a firm hand on the rudder will San Antonio be able to surf the waves and consolidate its well- earned fame.
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