Wineries need support to export
Video: Paul Spiteri Lucas
Maltese wine could raise its international profile significantly if authorities granted wine-makers funds to help market their product, Marsovin’s director of marketing and export Jeremy Cassar told The Times Business.
“The Maltese industry needs to be supported if it is to survive. We need to follow the example set by the Hungarians, the Austrians and the Swiss, who market their wines heavily to raise their profile,” Mr Cassar explained. “Not only is international wine promotion very costly, it needs to be carried out selectively and carefully if our wines are to be noticed by the critics and the distributors who matter.”
Mr Cassar pointed out wine-makers played a significant role in the local scenario. Besides creating jobs, they helped sustain hundreds of Maltese farmers – the success of their wines went beyond four local wineries doing good business. He explained local wines were an integral part of Maltese culture and heritage, produced by an environment-friendly industry which helped keep the country green.
“As wine-makers, we are examining the possibility of organising a wine trail which should interest the Maltese in the winter and the tourists in the summer, especially if our wines become better known internationally. In the meantime, we will continue to market to open-minded Maltese consumers and to collectors of high end wines,” he added.
Local wines, he pointed out, add value to Malta’s tourism product in the same way they added to any other destination. The two industries are closely intertwined – 65 per cent of Marsovin’s sales are directed towards tourists. The recent downturn in tourism has subsequently had an effect on the industry, although improved showcasing of Maltese products at key venues like Malta International Airport had left its mark. Mr Cassar believed wineries should be more involved in Malta’s tourism factor, particularly as the wine industry is achieving more.
Despite the challenges posed by a hugely competitive domestic market flooded by imported wines, local wineries have continued to make considerable investment to upgrade their product and wine-making facilities, Mr Cassar said.
Marsovin, currently celebrating its 90th anniversary, has made great strides to reach a major objective by this milestone anniversary. This year, it has succeeded in producing the required quantity of grapes locally to be entirely self-sufficient.
But a “revolutionary” move has been made to benefit the entire local industry this year as wine-makers join forces to reach their wider collective objectives. A Malta Wine Makers Association has just been established by Marsovin, Meridiana, Camilleri Wines and Delicata, headed by former Federation of Industry president Martin Galea.
The association aims to forms a common front as Malta’s wine-makers work to promote their product together and to lobby for more support.
Mr Cassar explained Marsovin had succeeded in holding its own in challenging market conditions by raising its standards even higher. When Malta joined the European Union in 2004, the winery suffered initially in the volume base market.
But the business was sustained as the plantation of four estates, initiated in the 1990s, from which its high end wines are produced began to render the desired quantities.
“We produce eight premium wines, all of which are very successful and appreciated by the consumers who demand quality wines. Because of our investment in quality, because of our philosophy to work upwards rather than maintain the same standards, we have improved,” Mr Cassar explained. “The investment we made in our high end quality wines also reflected in the rest of our range. When it comes to maintaining the quality and maintaining our customers who are wine lovers, we have managed to success. That is what is important to maintain the structure that we have. It is not a small one. Today, we press 52 per cent of all Maltese grapes in Malta. Had we not had that philosophy, we would be in a different situation.”
Mr Cassar added that the implementation of the DOC and IGT protocols also helped Marsovin build a reputation for high end wines. He believed further benefits will be reaped in the future once the Maltese wine industry grows again with Maltese consumers.
“Some consumers are still a little apprehensive when buying Maltese wine but I think it is just a learning curve, they just need to get to know us again,” he emphasised.
The investment continues, nevertheless. Besides 199.7 tumoli of privately owned land in five estates, Marsovin reaps the fruit of 1,116 tumoli contracted across the islands. The entire wine-growing operation involves around 700 farmers.
Marsovin’s 90th year has been nothing short of eventful. It was the year the winery harvested over 1,300 tons of grapes by the end of the summer –just over half all grapes grown locally for Maltese wine production. Going ‘all-Maltese’ had been Marsovin’s long standing ambition although Mr Cassar pointed out it does not come without risks. Vine-growing can be a heartbreaking affair and the economic climate has not been the most encouraging. It is also hugely expensive. The human resource costs and investment – Marsovin installed a reverse osmosis plant at its Marnisi estate to significantly improve the quality of irrigation water – were steep, but Mr Cassar said Marsovin was satisfied with the yield from the estates.
Marsovin has released a superior wine made from a blend of Cabernet Sauvignon, Cabernet Franc and Petit Verdot grapes harvested from low-yielding vines at Marsovin’s Marnisi estate in Marsaxlokk. The wine celebrates the year Anthony Cassar and his brother George ventured into the wine-making business.
Antonin Red 2007 won a gold medal at the Emozioni Dal Mondo event in Italy proving that the vintage had been to Marsovin’s decade what the 1999 was to the 1990s.
Mr Cassar said Marsovin was looking beyond the doom and gloom of this economically challenging year. The winery is working to produce another premium wine from indigenous grapes in the very near future; one barrel of the Gellewza was produced in 2007 and its future looks promising.
There will be more investment as Marsovin approaches its centenary and seeks to raise the quality of its wine even further both in terms of renovation and in innovation. In the next few years, some medium wines could sport a screw cap to minimise risk to the wines. Marsovin, however, will continue to invest in high quality cork for its higher end wines, a must if the wine is to be marketed more extensively overseas.
There is much work to be done in that respect as the company ventures into a new decade in business.
The winery has evolved several times since Anthony Cassar, and his brother George, two wine-merchants from Qormi, established A&G Cassar Ltd in 1919.
Mr Cassar’s earliest memory of the Marsa winery is accompanying his father Anthony at harvest-time at the age of 11. He recalls venturing into the winery, offering marketing advice to his father throughout his teens -- “not that he needed it”.
Mr Cassar spent most of his teenage years and early twenties at boarding school and university in the UK but it was not until he moved to France to further his studies in management and marketing that he became enamoured with “the culture of wine”.
He returned to Malta, joined the company’s ranks, and is now the only member of fourth generation of the Cassar family to be directly involved in the business. He leads a staff of 90, including a key wine-making team whose expertise has been fostered by the company – oenologist Philip Tonna has trained in Bordeaux and viticulturist Christian Cremona at San Michele all’Adige in Trentino. Three other team members are currently pursuing a diploma in wine studies.
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lgalea
Dec 27th 2009, 09:29
Well, I believe that Marsovin opted for the eu and now is getting what it voted for.
Pity that we have to suffer along with them.
Douglas Mathias
Dec 24th 2009, 17:48
As a recent visitor to Malta, I can only agree with the commentator who remarked that the better Maltese wines are quite overpriced. I live in a "new" wine region that suffers from the same psychology of selling the premium wines at "above market" while flogging the not-so-good at prices equivalent to what one spends on the international market for good but not spectacular products. We also found far too many offerings that were not inexpensive, yet still tasted "cheap". It's a jungle out there, folks, and there is no point spending a lot of money marketing anything but the very best in each price range . . . . the best "support" is a good product, well handled and warehoused, sold at a fair price into the markets that appreciate that specific style of wine.
Manuel Micallef
Dec 24th 2009, 16:54
to me it is fine to give wineries help - as long though as they show their books adn how much dividend they are taking from the company. If this dividend is over a certain threshold then they should not only not be given any hel, but pay back any help given to them in previous years....
Also, can Marsovin confirm whether any EU help was obtained in setting up their "estates" and if yes, how much was this?
Pierre Grima
Dec 24th 2009, 16:40
@mary lee cauchi
In your comment you hinted that Marsovin's wines are of a lower quality when compared to other local producers...however you cannot be further from the truth. Have you ever tasted a Grand Maitre, a Guze or an Antonin? If not I really encourage you to do so before posting such a remark.
Last summer I had the pleasure of speaking to a French wine expert from Chateau Morgeaux who visited the Marsovin wine festival and was really imressed by the quality of Maltese wines especially the Grand Maitre; however he did exclaim that local premium wines are very expensive and hence will have a hard time competing with foreign wines of the same quality.
While I agree with Marsovin that local wines need strong international promotion, I also believe that unless premium wine prices are lowered they can never compete with cheaper foreign wine of the same quality.
Kevin Zammit
Dec 24th 2009, 16:24
I hope someone from Marsovin reads this.
About 5 months ago airmalta decided to start charging for all alcoholic drinks since before they used to give you the first free then pay for any extras. Fair enough but since now we have to pay for Delicata's wine how about offering us a choice? At 3 euros for a glass I'm sure it would help all in gettin a push and gives in flight some competition.
Joseph Grech
Dec 24th 2009, 15:57
I wish the Maltese Wine-makers every success and profitability. Once they had things the way they wanted - now they have to compete with foreign wine-providers. That's fine for me. This article does two things. First it serves as a tribute to Marsovin and comes complete with biographical notes about Directors, etc. Then this article is an unashamed appeal to government to provide financial help to the Wineries to promote their produce abroad. I certainly do NOT agree that such preferential business treatment should be provided! Considering the negative and very serious state of government finances, the heavy burdens piled on the taxpayers, AirMalta's serious problems, questions about Smart City, the bleak - some will say downright unsustainable situation in Healthcare, National Social Security, etc. etc. I believe it would be sacrilegious of government to provide the financial assistance Mr. Cassar desires. Farsons, Marsovin, etc. ......please earn your own money!
v. Kerr
Dec 24th 2009, 13:47
might it not have occured to you all that the maltese wineries are only asking for help which all other wine making countries get from their governments.. Nothing more.
Jason Spiteri
Dec 24th 2009, 13:21
Mr.Cassar wants to be like the Hungarians, Austrians, Swiss...very well: in these countries the basis of the wine industry is that the wineries actually pay farmers on time to keep a sustainable production!
It would be well if Maltese wineries started honouring commitments with all those involved before asking for yet more taxpayer money.
M.Gauci
Dec 24th 2009, 13:04
Well done to most wine producers in Malta. The product has made giant steps in the last twenty years.
The Maltese look for the better product and at the price so I say get rid of the infereiour wines, produce more good wines and lower the price. This will also help in the export markets and when visitors taste a better product. Easier said than done one knows but a study of what wine producers abroad get regarding aid will come in handy when asking for support.
Keep up the good work and well done.
S.Cassar
Dec 24th 2009, 12:46
I tend to agree with you both here. Why should any company, or the private sector in general, require financial assistance in order to expand their profit- making? What is the private sector doing in return, in, say with regards to tackling current hot issues, such as a sustainable environment, and possibly, education?
Personally, I have always believed that Marsovin, along with Ta Qali's Meridiana are the only local wine-makers, on an industrial scale, capable of producing premium- quality wines. Therefore, the respective brand names, should market their products, without any additional funding...
Jesmond Micallef
Dec 24th 2009, 12:24
May I quote : "The winery is working to produce another premium wine from indigenous grapes in the very near future; one barrel of the Gellewza was produced in 2007 and its future looks promising."
Indeed, the indigenous grapes mean that the product is unique. This in itself presents huge potential. A potential to offer an exclusive product not just to the local but also to the export market. A genuine "Made in Malta" product from endemic grapes. That is already a "marketing concept" as far as I am concerned.
With my best wishes.
joseph Zammit
Dec 24th 2009, 12:10
Wine producers of Malta: if you want to survive - UNITE.
mary lee cauchi
Dec 24th 2009, 10:48
Sorry,but I don't understand the point here..We are in a free market,and one has to compete with his own tools..After all,that was what the EU was all about......It is obvious to me that if you produce 2nd grade wine,and sell it for the price(or more than) of a good bottle of wine,you're obviously not going to go nowhere...I know there are two major wine producers and exporters here in Malta,and I think that Marsovin doesn't even come close to its maltese competitor,let alone outside of Malta...
J Farrugia
Dec 24th 2009, 10:36
Wineries need government funds to export, state companies need government funds to continue working, patients need government funds to purchase expensive care, funds funds funds ... from where ? from our taxes? Thos who want to export should do so on their own steam. State companies which do not make a profit should close down and the government should stop funding foreign bodies in foreign countries (international development aid) and give that money to the sick persons in malta who are undergoing medical traumas. Otherwise no one will help us and our sick people. Let's stop the waste and put our money where it should really be.