Business in USA
Interview by Franz Hoftsätter, tastes of austria © 122009
Johannes Hirsch about the development of business in the USA
ToA: When did you launch export the USA? In other words: when were you discovered by Terry Theise?
Johannes Hirsch: Terry visited the winery for the first time in 1992. I have a vague reminiscence, because he had just arrived from the airport and had a bad cold. I don’t think he noticed the wines very much. In 1997 he received some samples of our 1996 wines, which had been the most difficult vintage I had ever seen, and he bought our wines. The 1996 vintage was the breakthrough for us not only in America. I took the chance and visited the States on a regular basis at least once, often twice a year. This has been the secret of our success. When I met sommeliers, sales people etc. and I told them “I came here to present the products of my family winery especially to you!”, - that had been unusual at the time. Our wines became more tangible. And Skurnik with Terry Theise is the perfect partner for me. They are so enthusiastic, open minded, and they are game for anything. The catalogue is a piece of art.
ToA: Did you sell more Riesling or Grüner Veltliner in the beginning?
Johannes Hirsch: Veltliner has been constant hit, Riesling depends very much on the vintage. Riesling can be compared with those from other origins and the boom of German Riesling starting in 2005 was palpable. With Trinkvergnügen, the Veltliner #1, Veltliner is much more important. But until then, from 1997 to 2001, we had very good economic conditions and Americans had enough money and were willing to spend it on something new.
ToA: How did the various crises of 2001 and 2003 influence the market?
Johannes Hirsch: We did feel the crisis, but on the other side, Grüner Veltliner continued to be very hip. So if you ordered a glass of wine, this unspeakable wine from this strange small country in central Europe was something to have… It’s a food friendly wine with a great price-performance ratio. Those were in fact golden times. In 2003 we launched our Trinkvergnügen #1, the light, fresh Veltliner, which really hit the market with a splash and boosted our sales. In 2003 we made 20% more than in 2002, and in 2004 again increased sales by 20%. Trinkvergnügen was sold out by September 2004! Sales then decreased, which in my opinion was a result of all the litre-bottles which flooded the market. In the beginning only very few vintners were present on the US-market. Now I see names I have never heard of even within Austria. I doubt that Grüner Veltliner in litre-bottles for $12 to $13, as seen in Seattle, advance the variety’s image.
ToA: Do Sommeliers have more influence than in Europe?
Johannes Hirsch: Yes, and as we are not yet fully established and still a niche product we need sommeliers to recommend us. We have been on the wine list at Charlie Trotter’s and the French Laundry but this changes very quickly. Austrian wine is not a must-have for all restaurants.
ToA: Do you feel the present economical difficulties?
Johannes Hirsch: It would be impudent to say no; of course things are not easier. Despite this I have to say that 2008 has been my second best year in the States so far. Only 2006 has been more successful. It helps a lot that I was winery of the year for the second time in a row at Terry Theise Selection. This really promotes the single-vineyard wines. In addition to this the Wine Advocate’s David Schildknecht rated 2 of the 2008 single-vineyard wines over the 2007, although 2007 was a very good vintage. 2003, 2005, 2007 and 2009 are on the same level. 2004 is like 2008, although we started with the single vineyards which made business more complex. The relatively weakest year has been 2005.
ToA: Did you notice a change in style or preference among US-wine lovers?
Johannes Hirsch: They have a preference for natural cork seals on wines above a certain price level. That was a little delicate at the beginning. Organic is much more of a topic, at least among my customers. There are many more questions about that than from European customers. Half-bottles are in much more demand in the US than in Europe. They open possibilities for me - I’m listed in restaurants which might not otherwise purchase my wines. As I mentioned, Riesling has its ups and downs. But as people in the States are used to German Riesling, they have no difficulties accepting my off-dry wines. They don’t discuss residual sugar as long as it is in balance with acidity, extract and alcohol. I wish Austrians would be as open minded as Americans.
ToA: What are the future prospects for the US-market?
Johannes Hirsch: I can’t tell. After Grüner Veltliner came Greek wine, then the Sake boom…according to the AWMB there is still growth*) but I’m asking myself in which segment? Truth is that the seller’s market comes to an end. There is enough wine available even where you had to beg for it before…things won’t become easier, but for whom will they?
*) Austrian Wine Marketing Board reports the exports to the US in 2008 have reached the level of 2007 despite the weakness of the $ (1.6 million litres amounting to 8.5 million €). The United States is the fourth most important export market for Austrian wine (behind Germany, Czech Republic and Switzerland).
Source with kind permission of: tastes of austria e.U. - Franz Hofstätter
www.tastesofaustria.at
