InVina Chile Viticultural Zone Presentation

8/12/2019 InVina Chile Viticultural Zone Presentation

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A Brief Introduction to Chiles Viticultural Landscape

December, 2009


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Geog

raphy

Geography:

Atacama Desert to the North

Andes Mountains to the East

Pacific Ocean to the West

Antartica to the South

Geographically Protected fromPESTS and DISEASE


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Geog

raphy

Geography:

Most vineyards planted in Central Valley

New vineyard plantings moving toward

the hills and towards the ocean


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Clim

ate

Climate: Summers:

Dry (almost no rain from October to April)

Low humidity Bright sunshine

Hot during day, but cooling at night (up to20C temperature difference between dayand night)

Winters Moderate, with minimum low temperature

around -5C Ample rains


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Clim

ate

Pluviometry & Average Temperature

Rain in

WinterDry duringmaturationand harvest

season

Mild average

temperatures


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Wa

ter

Melting snowprovidesirrigation

water duringthe drysummers

Nearly allChilesvineyardsare irrigated


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ViticulturalZone

sLess Rain

Warmer

More Rain

A little Cooler

More rain in the South, less rain in the North

Temperature difference less important


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ViticulturalZones

Variations Within Valleys give Chile agreat number of microclimates


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Th

eSeasonCycle

The seasonal cycle

Pruning: July early September

Budding: Early OctoberFlowering: NovemberVeraison: Late January

Harvest: Late February (whites) tomid May 3 months forharvest


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ProductionInforma

tion

Colchagua, Curico and Maule have 72%

of Chiles viniferous vineyards.

Source: SAG (Chilean Agriculture and Livestock Service) Catastro Vitivinicola Nacional 2007

Vitis Vinifera Distribution

% of Total Hectares

Colchagua28%

Bio Bio12%

Aconcagua

5%Maipo

9%

North

2%

Curico and

Maule

44%

Total Grape Hectares, 2007

Viticultural Zone

Fresh

Grapes

Pisco

Grapes

Viniferous

Grapes Total

North 19,044 9,982 2,311 31,337

Aconcagua 12,183 5,567 17,750

Maipo 11,838 10,800 22,639

Colchagua 11,302 34,257 45,559

Curico and Maule 745 50,574 51,319

Bio Bio 7 14,050 14,057

55,119 117,559 182,661


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ProductionInforma

tion

76% of Chiles wine grape production is of

Red grapes.


White vs. Red Grape Distribution

White

27,658 has.

24%

Red

86,790 has.

76%


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ProductionInforma

tion

Cabernet is 46% of total red grape area


Red Grape Variety Distribution, % area

Pais, 17%

Cabernet

Sauvignon, 46%

Merlot, 15%

Carmenre, 8%

Tintoreras, 3%

Syrah, 4%

Cab. Franc, 1%

Cot, 1%

Other, 3%

Malbec, 1%


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ProductionInforma

tion

Sauvignon Blanc, Chardonnay and Moscatel

are 82% of white grape vineyard area


White Grape Variety Distribution % Area

Mosc.Alejandra,

21%

Sauvignon Blanc,

31%

Chardonnay, 30%

Other, 6%Viognier, 1%

Riesling, 1%

Torontel, 4%

Semilln, 6%


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ViticulturalZone

s

Chiles grape producing area is concentrated in

the central part of the country


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ViticulturalZone

s

Chile has 9 major valleys

Aconcagua

Casablanca Maipo

Cachapoal

Colchagua Curic

Maule

Itata Bo Bo


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ViticulturalZone

s

Administrative divisions are alittle different:

Casablanca is asubvalley ofAconcagua

Cachapoal andColchagua are the 2subvalleys ofRapel

Valley

Curic + Maule areoften put together as

Maule Region Itata + Bo Bo are

often put together asBo Bo Region

RapelValley

Aconcagua

Valley

MauleRegion

Bo Bo

Region

Santiago


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Appen

dix1

Appendix 1: Estimated Costs


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Appendix1

Appendix 1: Key Costs

Estimated market prices for bare land, non worked,with water rights:

Maule Valley: US$ 8.000 / ha.

Curic Valley: US$ 10.000 / ha.

Colchagua Valley: US$ 14.000 / ha.

Maipo Valley: US$ 22.000 / ha. Aconcagua Valley: US$ 15.000 / ha.

Casablanca Valley: US$ 30.000 / ha.


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Appendix1

Appendix 1: Key Costs

Winery

Turnkey: about US$ 1.50 per installed liter

Metal warehouse structure: US$ 150 / m2

Storage tank costs 200.000 liters US$ 0.25 / Liter

121.000 liters US$ 0.27 / Liter

100.000 liters US$ 0.28 / Liter

Fermentation tanks 75.000 liters US$ 0.47 / Liter (w/ cooling)

60.000 liters US$ 0.49 / Liter (w/cooling)

50.000 liters US$ 0.53 / Liters (w/cooling)




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Appendix1

Vineyard Planting Timing factors

Feasible Planting Chronogram, has. / year

Y1: 50

Y2: 100

Y3 & onward: 150

KEY CONSIDERATION Rootstocks are key limiting factor

Additional rootstock availability limited, and importation is not anoption due to 4 yr. quarantine

Must make decision for nursery by June, to secure vineyardprunings to make rootstocks

New trend is to use grafted rootstocks that are resistant tonematodes and more vigorous

Land preparation must be completed before month of May each year


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Plant Nursery

New plants ready for planting

Soil Preparation


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Plants recentlyput into ground

A recentlyplanted vineyard

in late winter

A recentlyplanted vineyardin Spring


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Appendix2

Appendix 2: Details of the Chilean Valleys


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ViticulturalZones

Aconcagua Valley


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ViticulturalZones

Aconcagua Valley

Has. Vineyard 847

Geography Only major valley north of Santiago, located in the Aconcagua River Valley

Climate Hot, but with moderating influence of Andes Mountains. Very low rainfall

Varieties Reds, mostly Cabernet, Merlot and Syrah

Positive points Very safe region, as it almost never rains during harvest

Negative points Water and land are very scarce and expensive

Land Cost / Has.* USD 15,000

> A small valley limited to the valley immediately along the Aconcagua Valley,

traditionally dedicated to fruit and vegetable production to supply the Santiago

Metropolitan area.

> Long growing season allows long hang time, permitting the red grapes to mature

fully. Limited land and water resources mean little growth potential for the Valley


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Viticultur

alZones

Casablanca Valley


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Viticultur

alZones

Casablanca Valley

Has. Vineyard 4693

Geography

On the western side of the coastal mountains, Casablanca is very close to

the Pacific Ocean

Climate

Warm, with strong moderating influence from the cool Pacific Ocean (fog in

morning, ocean breeze in afternoon)

Varieties White grapes, mostly Chardonnay and Sauvignon Blanc

Positive points Excellent for producing premium white grapes

Negative points Water is very scarce, land is expensive, and spring frosts are very common


> The only major valley located on the western side of the coastal mountains, and the

cooling influence of the Pacific Ocean made it famous for white grapes.

> Its location along the route between Santiago and Valpariso gives the valley a

strong touristic value

> Scarce water resources will limit future growth potential


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Viticultur

alZones

Maipo Valley


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Viticultur

alZones

Maipo Valley

Has. Vineyard 10,791

Geography Santiago region, and immediate south of Santiago

Climate The central valley region is hot, but as you go up the Andes foothills it getscooler

Varieties Mostly red varieties

Positive points

On Andes foothills the cool Andes Mountain influence makes it possible to

produce premium Cabernet Sauvignon

Negative points

Land is extremely expensive, mostly due to potential for urban development

and other agricultural uses


> The greatest part of the vineyards are located in the fertile central valley plain,

where the soils are too vigorous and the temperatures too high for premium quality.

> It became famous because of its proximity to Santiago and the large number ofwineries located in the region

> While it is the most famous viticultural zone of Chile, its actual vineyard area is

small, and only the sections in the Andes foothills are famous for premium quality.

> Alternative uses for land, such as urban expansion, limit the growth potential of the


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Viticultur

alZones

Cachapoal Valley


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Viticultur

alZones

Colchagua Valley


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Viticultur

alZones

Rapel Valley (Cachapoal + Colchagua)


Geography Central Valley and also a lot of interior valleys in coastal mountains

Climate

Hot in Central Valley and most interior valleys, getting cooler as you

approach the coastal regions

Varieties Mostly red

Positive points

Some regions, such as Marchigue, Apalta and Lolol can produce premium

quality wines

Negative points Expensive, and water is very scarce


> Rapel has recently become famous due to the excellent work by some of the

regions wineries, such as Montes, Viu Manent, Casa Lapostlle, Montgras.

> It is home to the second largest expanse of vineyards in Chile. It has a diversity of

climates, but is most famous for its hotter regions which produce concentrated red

wines


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Viticultur

alZones

Maule Region (Curico + Maule)


Geography

The largest wine region of Chile, it covers all geographies, from Andes

foothills, to central valley to coastal regions

Climate Slightly cooler than Rapel and Maipo, with higher rainfall

Varieties Whites and reds

Positive points Cooler climate gives potential for developing more elegant wine styles.

Negative points Risk of rainfall during harvest is higher.


> The largest viticultural zone in Chile is also the least famous. Much of the valleys

production is fragmented into small, traditional producers without much orientation

toward quality.

> The more moderate climate holds the potential to produce premium reds and

whites, once production tecniques and varieties are brought up to standard.> The valley still has considerable land and water resources, giving it great future

growth potential


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Viticultur

alZones

Itata Valley


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Viticultur

alZones

Bo Bo Valley


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Viticultur

alZones

Bo Bo Valley (Itata + Bio Bio)


Geography

The largest wine region of Chile, it covers all geographies, from Andes

foothills, to central valley to coastal regions

Climate Cooler and with much higher incidence of rainfall during growing season

Varieties Whites and early maturing reds

Positive points Cooler climate gives potential for developing more elegant wine styles.

Negative points Risk of rainfall during harvest is higher.


> However, its southern location, cooler climate make it less suitable for late-maturing

varieties like Cabernet Sauvignon

> The region with the largest concentration of small, traditional producers holds good

potential for future development.

> Its large land and water resources make it ideal for future growth potential.


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InVina Chile Viticultural Zone Presentation