Thursday, April 24, 2014

ARE BARRELS BECOMING AN ENDANGERED SPECIES? ©


            The consensus is a solid maybe! With French oak versions, prices have gone north of $1,000, a price point that American oak is approaching. Some winemakers have looked to Hungarian or other eastern European sources to save a bit but not everyone likes the effect. In a recent tasting focused on the effect of oak on flavors, given a sample from France and the other from the U.S., about 100 participants voted unanimously for French. Merci beaucoup!

A recent trend is less oak in the flavor profile, especially with Chardonnay. The neutral oak concept may really be a way of saying, "It's really just unoaked because the barrels have been used for three years, I need to store the wine in something and I can't afford new barrels." Of course, it is a non-issue for most of the wine made but does bear on many red wines.

The economics of this mean that if you get 23 cases of wine from a typical barrel, a $1,000 barrel ends up costing the winery about $ .90 per bottle. This assumes a three year use and a resell value of $250 after that use. An alternative is refurbishing the barrel, discussed further below. You can see how a Cabernet that is on the wood for two years and thus maybe only two cycles of use, and that you paid $1,200 for it, accelerates that cost. And eventually to you as a consumer.

The all in cost (closure, label, grapes etc.) of a bottle of wine is subject to about a 40% mark up at the retail level. So you pay about $1.25 for each barrel aged bottle. The combination of everything that goes into getting that bottle on your favorite local shelf makes it very difficult to keep the sales price under $12. As the cost of corks -along with some quality control issues - went up, more and more wineries sought cheaper alternate closures. At first it was the less expensive wine moving to screw caps, which had their own initial problems. The trend expanded to mid-price labels, especially those meant for quick consumption and little need for ageing into a better wine. Now you can select a screw capsule offering liners that allow various levels of oxygenation that mimics cork closures. Something similar is now going on with oak alternatives.

Starting out with value brands a few years back, it was sort of, "Can you believe they just threw a few bushels of oak chips into that big tank of Chardonnay?" It was, for the pinky-up segment of wine drinkers, an OMG moment. I mean, really, they do that? Yes, and it works. Which led to better mousetraps that are increasingly popular. So much so that a Master Cooper with whom I spoke at the recent WiVi (see prior posts) trade show has recently left a barrel making company to market barrel alternative products.

As I've mentioned in past pages, this should not be looked at as a form of getting away from proper wine making. It should be welcomed by the consumer, especially those who like to afford a decent bottle with dinner on a regular basis. It is just another way to get the desired effect at a lower cost. Which is not to say that traditional barrels will go the way of the Dodo bird. They will continue to be central for making fine, age worthy wines for years. But, if demand is less it means pricing may stabilize and we'll save some trees, both good results.

It is not uncommon for wineries to use barrel tasting, alluded to in the opening paragraph, to select which cooperage firm they buy from. Often, they use multiple sources to add variety to the wines in barrel and provides the winemaker with a true palate, in the wine sense, with which to blend the wine going to bottle. In reality, testing has shown that every barrel has its own variations. This comes from aging of the original wood, staves from different trees, no actual standard for levels of toast - different coopers define medium toast to their own, and widely differentiated specifications - and even how the belly of a barrel will take the toasting versus the stave ends. There is a built in range of flavor profile within each barrel.

Science and better testing methods now available allow used barrels to be reconfigured to provide nearly identical flavors to that of the original. Oak aging adds a lot of technically named compounds. Maybe you are a big fan of furfural and don't even know it? That's what we wine drinkers describe as butterscotch but the white coated wizards like those tricky ways of saying it. Remember your P Chem from high school? Then maybe you like the flavor imparted by 4-methyl-guaiacol (spicy/smoky components). Many tasters pick up vanilla as a typical indication of oak in Chardonnay. For some reason, the lab guys call that vanillin.

The cost to redo your old barrel, engineered to give the profile you like is about $250. A used French oak barrel at the price quoted above, is worth about that on the resale market. You, in effect, get your $1,000 barrel back for a net worth of half the price. But what if you are looking for an economical way to get into oak aging without barrels. One method is the use of kegs. Yes, similar to beer kegs in which oak staves can be placed. Some even have a paddle wheel inside, connected to an external crank that can be used to stir the wine (useful for sur lie) and the amount of oak can be varied. Gaining traction and using high grade staves available from major French cooperages, they make more effective use of oak trees and are easier to sanitize, with the added attraction of much lower water use.

Have used barrels that you are happy with? Pick your favorite oak flavors and toast, all in a tidy packet of oak spirals. This provides a lot of surface area for flavor extraction. Quite a step up from the bushels of chips. These and other products are finding favor with winemakers and should be embraced by wine buyers. More alternative concepts are likely to be increasingly available, and used, in the future. That said, there is little chance that many of your special occasion wines will not be sleeping in barrels for many years to come.

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