IMW Esterhazy Sholarship winning essay

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The Institute of Masters of Wine have awarded the 2012 Esterhazy Scholarship to Geoffrey Dean for the following essay.

QUESTION: Evaluate the potential of indigenous Hungarian varieties in the
context of the global market place.

Words: 1498
By Geoffrey Dean
From 2008 to 2010, official figures from Budapest reveal that exports
of Hungarian wine increased in each year in both volume and value. In
2008, 668,821 hl of exports worth 18,273m forints (fts) became 739,126
hl in 2009 (worth 18,664m fts) and 846,221 hl last year (20,962m fts).
Whatever the results of 2011, and even though some international
varieties are likely to have made a contribution to this rise, the
trend is still an encouraging one. The question is not just whether it
can be maintained but also how the global market place be further
‘educated’ as to the merits of the dozen or so indigenous Hungarian
varieties, particularly its lesser-known dry whites and approachable
reds. The awkward names of some of the former, coupled with their
suitability for mixing, point to the need for more blended whites.
Moreover, there is a strong case for a significant increase in market
share of the great Tokaji sweets (made up chiefly of course of local
white grapes, Furmint, Harslevelu and Koverszolo). For while the
quality of a Sauternes or Barsac costing 30 Euros cannot always be
guaranteed, a Tokaji of the same price is almost certain to be
outstanding.

Already, of course, Hungarian varietals are exported all over several
different continents, while the owner of Cos d’Estournel, the Bordeaux
second growth, has bought the leading Tokaji vineyard, Hetszolo. The
wines of the Pannon Tokaj winery, meanwhile, have been sold not only
in Europe (in the UK, Sweden, Germany, Romania, Russia, Serbia, Czech
Republic and Spain), but also in the Far East (China, Japan, Taiwan
and Korea) and in North America.  Pannon Tokaji’s strength is that it
has a wide range of wines from dry and semi-dry to semi-sweet and
sweet/luscious (3, 5 and 6 puttonyos as well as Aszueszencia). The
recommended price range in the UK (sure to be reflected elsewhere in
the world) is £10-£59 at London stockists, ‘Hungarian Winehouse’,
whose owner, Balint Takacs reports that the £15 bottle of 3-puttonyos
is his best-selling Tokaji. With as much as 110g residual sugar, this
gorgeously concentrated wine appears to be one of the best
value-for-quality ‘stickies’ on the market.

Focus on new target markets still needs to be made. The Chinese are
much less keen on sweet wines than they are on dry ones, but the
notoriously sweet tooth of India’s population would suggest that its
vast new middle class, increasingly attuned to the attractions of
quality wine, is an untapped reservoir for Hungary’s sweet and
semi-sweet wines. The issue here, however, is how to find an
affordable marketing strategy to penetrate this market.

Certain Hungarians believe – and probably with good reason – that dry
furmint comes in too many styles for its own good, as far as exports
are concerned at least. Nyari Laszlo, managing director of Pannon
Tokaj, laments that “it is a permanent challenge for all Hungarian
wine producers to find the real and uniform face of furmint.” Every
February in Budapest, at a wine-tasting event called ‘Furmint
Februar’, many excellent examples of the varietal can be found, but
Laszlo believes there is so much difference among them that drinkers
can become confused. “We still have to work out a uniform face that
consumers can understand, one which allows them easily to recognise
the variety,” Laszlo added.

Furmint at least has the advantage of an easily-pronounceable
English-sounding name, making it that much more straightforward for
consumers around the world to remember. Other Hungarian varietals are
not so fortunate, notably Cserszegi fuszeres, a real tongue-twister.
This is unfortunate, for this is a fresh, fragrant, fruity and dry
variety that has the pedigree be as popular in international markets
as it has been in Hungary for the last decade. Hilltop exported it in
large volumes to the UK in the second half of the 1990s as
‘Woodcutter’s White’, cannily leaving the variety, with its
‘unpronounceable name’ off the label.  As long as the grape stays on
the back label only, this variety ought to be able to find favour
internationally again with a strong marketing push. Takacs reveals
that he is getting good reports back from consumers about Jozsef
Ludanyi’s version from the cooler climate mountainous region of Matra.
I liked its citrus notes, good length and limey finish, finding it a
refreshing aperitif. At 11.5% and an RRP of £10.99, it could well be
the sort of proposition that is attractive to international consumers.

Three other indigenous varietals also suffer from having names that
are a real mouthful - Kiralyleanyka, Keknyelu and Leanyka. In the case
of the former, that is a pity as it is elegant with a muscat-like
fragrance that might well appeal to international drinkers. Hungarian
Winehouse in London stock it, with retailers pricing it around the
£13-mark. Keknyelu has slowly disappeared from Hungarian vineyards as
it is not easy to cultivate, only a few hectares remaining at
Badacsony. Its high acidity and minerality lead many to argue that it
is the only dry Hungarian white wine that can follow a Tokaji aszu,
but it is needs to be blended ideally. As it is made in small
quantities, it is not cheap (typically selling at around £16 per
bottle). This does not point to success on the international scene as
a single varietal. Leanyka, an early-drinking floral white with high
alcohol, is another variety made in small quantities  that does not
appear destined for success overseas.

There are, however, grounds for optimism for a number of other
indigenous varietals in the global market-place. Irsai Oliver, a much
easier name for starters, is nicely unformed, giving consumers double
cause to remember and identify it. Light and refreshing, it has a
muscat-like flavour and aroma, and is ideal for afternoon or early
evening consumption in summer. As such, it has clear potential to gain
a foothold in the international market. Both Malux, the London-based
Hungarian food and wine importer , and Hungarian Winehouse supply it
to restaurants.

The light-bodied nature of Kekfrankos, with its pinot noir-like
appearance and earthy, spicy aromas, ought to make it attractive to
international drinkers. Pfeiszl Vineyards produced an excellent 2007
vintage that is available at an appealing sport of price point (£17)
for connoisseurs. A very popular drink in Hungary, it is known as
Blaufrankisch in Austria and Lemberg in Germany. The fact that
Gordon’s Wine Bar in Charing Cross, London have it on their wine- list
is encouraging, as is the fact that it is sold by a Bristol wine shop.
Kekfrankos forms 42% of the Hagymasi Winery’s Bull’s Blood (Egri
Bikaver) blend which retails in London at a competitive £10.90.

Kadarka (26% of that same Bull’s Blood blend) is another
light-coloured red that could well succeed internationally with its
pepper and cherry notes. Indeed, Takacs says that returning
holidaymakers from Hungary, where they enjoyed drinking it in leading
restaurants, have sought it out from him after ‘googling’ it. Having
tasted Hagymasi’s 2009 vintage, I can vouch for its juicy red fruit,
medium plus acidity and good concentration and length. At 12.6% alc,
it also satisfies the growing predilection for lower alcohol wines,
but its disadvantage is that it is prone to rot and can have
difficulty ripening.  That helps to explain why it is priced quite
expensively, even in Hungary. It also makes some excellent rose, Tamas
Duszi being the most notable producer of it, but at £13 in London,
that is a difficult sell. Nevertheless, Kadarka’s quality is not in
doubt, and Duszi’s red (retailing at £17) is selling quite well in
London according to Takacs. Its problem is that many different clones
of it are being used in Hungary, denying it familiarity of flavour.

Other Hungarian varieties like Ezerjo,  Juhfark and  Olazrizling all
have weaknesses as far as exporting them are concerned, not least with
their names. Ezerjo produces tart and simple bulk wine, while Takacs
reports that customers are put off by Juhfark’s £12.50 price label.
Laszlo thinks Olazrizling suffers because “olasz is an Italian word
and most people associate riesling with Germany.” It is actually
related to Rhine riesling only by name, and is not just the most
widespread Hungarian white variety but also the most reliable.
Blending it would seem to be the best bet for international sales.
Zenit, another white varietal, is likewise a strong candidate for
blends, ripening early as it does.

To conclude, therefore, there is no underlying reason why Hungarian
indigenous varietals should not have a bright future in international
markets. The potential stumbling block of their often unpronouncable
names can be circumvented by blending them into carefully-chosen named
brands, for the refreshing quality of their fruit, and their length,
is not in doubt. Labelling, distribution and marketing are three areas
that all need improving, however. And the great sweet Tokajis, whose
exports have been increasing in recent years, can lead the Hungarian
assault on world markets by continuing their growth in international
sales.