THE CHIANTI CLASSICO CONSORTIUM IS THE FIRST TO ADOPT “BLOCAGE” AS AN ANTICRISIS MEASURE AND TO AVOID LOSING A PART OF THE 2009 GRAPE HARVEST, WHICH IS SET TO BE ANOTHER EXCELLENT VINTAGE

The Chianti Classico Consortium is the first denomination in Italy to choose an alternative path from that of lower yields in order to combat the crisis.
In an attempt to maintain optimism while waiting for the economic situation to improve and to avoid renouncing part of the 2009 grape harvest (predictions for which are for another high quality vintage), the Consortium has chosen to try “blocage” (that is to keep 20% of wine produced in wineries in order to maintain competitive prices).

It is a stabilizing measure foreseen by Article 67 of CE Regulation N. 479/2008 (part of the new CMO wine reform) that has already been adopted in the past by other European winemaking regions, in particular that of the Champagne region, which foresees regulating the supply with a temporary reduction in the product so that prices are not compromised.
For Chianti Classico, as for other denominations, the fall in demand has also had an effect on the prices for bulk wines. In order to confront this situation and limit the excessive lowering of market quotes for bulk Chianti Classico, safeguarding the earnings of the product, the Consortium opted for an innovative measure for the Italian wine sector. While waiting for a global economic rebound and, as a consequence, better market prices, the Consortium administration has in fact decided to reduce the admission of bulk Chianti Classico onto the market starting with this grape harvest.

“The financial crisis, united with a particularly unfavorable euro/dollar exchange for us, has imposed a reflection on which instruments to adopt in order to stabilize the market”, explained Consortium president, Marco Pallanti “To our advantage we have the last five vintages, from 2004 to 2008, which have given Chianti Classico excellent quality harvests and the climatic cycle for this year foresees that 2009 will also be in line with preceding vintages. And precisely for this reason the council of the Chianti Classico Wine Consortium has decided to not opt for a reduction in yield which foresees a tout court product loss, but wanted, however, to intervene in defense of its market”.

The blocking of sales will include 20% of total production of 2009 Chianti Classic which will not be allowed to be sold and must therefore remain with the producer for 24 months from the date the regional initiative began. The “blocage” will, however, be a flexible tool that the Consortium can modify or recall at any moment it deems necessary.

”This measure naturally calls for an economic effort to be made by producers” – concluded Pallanti – “an effort that could, in some cases, be particularly onerous if it is not sustained with an intervention by the banking system to cover missing liquidity deriving from the immobilization of the product. For this reason the Consortium has activated itself to find advantageous forms of financing among the best credit institutions operating in the territory with the goal of sustaining stocking costs for each company. I think this represents a good example of how a positive relation between banks and enterprises can contribute to the development of our economy, especially in more difficult moments”.
The Tuscany Region has declared that it is willing to rapidly help create a legislative tool to help apply this measure.