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The History and Development of Chilean Wines

Article in International Journal of Wine Marketing February 2002

DOI: 10.1108/eb008738

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The History and Development of Chilean Wines

Abstract
The incredible growth of Chile's wine output is a textbook example of how aggressive

private enterprise can combine with enthusiastic government backing.

Statistics show the graphic results of this benign attitude. In 1988, Chile shipped

185,630 hectoliters (one hl = 26.4 U.S. gallons) abroad. By 1998, this had grown to an

impressive 2.3 million hl worth US$500 million.

The value per bottle increased equally dramatically. As the 21st century dawned,

Chile enjoyed a global reputation for quality. And its reach was worldwide. Instead of

sending 88% of its wine to Latin America, as it had in the 1980s, it sold in high-profit

markets like Europe (41% of all exports), North America (34%) and, increasingly,

Asia, where in 1998 Chile sold 14% of its wine.

The first recorded vintage in Chile was m 1551, when priests who swiftly followed

the conquistadors south pressed grapes to make sacramental wines.

Three centuries later, prosperous landowners sent their sons for education to Europe,

notably to France, Spain and Italy. They came home with a taste for wine and brought

skilled European winemakers and architects with them.

This classical age of wine civilization saw the foundation of many of the great modern

wineries, most of which were built in gracious parkland estates modeled on the great

chateaux of Bordeaux.

The only country spared from the devastating blight of phylloxera, Chile's wine

industry boomed in the early years of the 20th century. But then came a chapter of

neglect when many of the fine wineries produced unimaginative bulk wine for

internal consumption.

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In 1981, there were 100,000 hectares (one ha = 2.47 acres) under vines, which sank to

67,000 in 1985, the nadir of the industry.

Then, a new sense of identity and purpose swept Chile's winemakers and investors.

Suddenly, the wine revolution which had earlier had its impact on California and

Australia caught on in Chile. There were gigantic investments in land, plantings and

equipment. Visionaries saw a brilliant new future for quality wines. Old-fashioned

vines were uprooted. In the late 1990s, Cabernet Sauvignon doubled from 11,000 to

20,000 hectares. Merlor vineyard acreage quadrupled between 1994 and 1999.

Chardonnay and Sauvignon blanc exploded while the "old" grapes stagnated

Winemakers were also experimenting with Pinot noir and, to the horror of Australia,

with Shiraz, which loves the dry, hot Chilean autumn.

Chile today has 75,600 hectares under vine, about two-thirds of them red grapes.

That prime fruit is being pressed by the latest equipment from Europe, Australia and

North America.

Chilean wine

History

An investigation into the history of wine, in Chile, reveals a remarkable story of an

industry that has fought bravely to win its rightful place as one of the worlds top

wine producers, despite many setbacks along the way.

The concept of wine production is thought to have first reached Chile in the middle of

the sixteenth century, around 1548. (http://www.vinasdechile). . Some

sources (http://www.vinasdechile; http://www.chilewinemarket;

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http://www.chip.cl/tours/wine) report that vines arrived with the early Catholic

missionaries, shortly after the Spanish conquest, who brought them with the intention

of producing the drink for religious purposes. Wine being an essential part of the

celebration of the Eucharist. The Catholic priest, Francisco de Carabantes reportedly

arrived in Chile with the first grapevine stock and planted vines in the area around

Concepcion, about 600 km south of Santiago. (http://wwwvinesdechile;

http://www.chilewinemarket.) Other reports (Kolpan, Smith, Weiss 1996) suggest that

the Spanish explorer Cortez was in fact responsible for the introduction of vines to

Chile.

What is certain is that the first extensive vineyards in Chile were planted by one of the

Spanish Conquistadors, Francisco de Aguirre in 1551 at Franscisco de la Selva,

around Copiapo, and also at the area around La Serena, about five hundred miles to

the north of Santiago. (http://www.chileweb.net/wines/history.htm;

http://www.chilewinemarket; http://www.vinesdechile). Letters written to the King of

Spain, Carlos V, refer to the widespread consumption of wine in these areas at that

time. ( http://www.chileweb.net/wines/history.htm )

Vines were just one crop that were introduced by the Spanish to the Chilean Indians,

others being wheat and olives.

The areas around La Serena and Copiapo are fertile and well watered, but as the

Spanish communities gradually spread south, so did the vineyards, eventually

reaching the rich growing area of the Central Valley.

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Development of the wine trade was hindered somewhat by resistance from the

indigenous Araucanians, the first inhabitants of Chile, who objected to the Spanish

conquest. They took over some of the Spanish vineyards and used the grapes to make

Chica, a semi- fermented drink, which is now an important element of the celebration

on September 18th, Chiles Independence Day.

(http://wwwchileweb.net/wines/history.htm ). Despite these setbacks, Chiles wine

trade went from strength to strength and by the end of the late seventeenth century the

country was competing with all of the major European producers producing large

quantities of inexpensive but drinkable wines. (http://www.chip.cl/tours/wine). This

reputation as an exporter of cheap wine in large volumes continued throughout the

eighteenth century. (http://www.chilewinemarket ).

In the 1830s the Quinta Normal was established, an experimental nursery instigated

by the Chilean Government containing a wide range of plants including vinifera vine

cuttings.( Kolpan,Smith,Weiss 1996). This step turned out to be extremely

advantageous for the Chilean wine industry as it allowed the country to isolate

cuttings just prior to the time that the Phylloxera louse started to cause widespread

damage to the vines of Europe.

The year of 1851 was a landmark year for the Chilean wine industry, a transformation

taking place that established the pattern and nature of Chiles wine trade that we see

today. This was due to the arrival of quality vinifera cuttings from France, brought

personally by Don Silvestre Ochagavia Echazarreta who planted them in his land at

Talagante in the Maipo valley, just south of Santiago. The first successful vines were

Cabernet Sauvignon, Sauvignon Blanc and Semillon, which then dominated Chilean

wine production, until the 1980s when other wine varieties such as Merlot and

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Chardonnay gained in popularity. Other grape types, which arrived at this time have

also proved to be well suited to the Chilean conditions, including, Riesling and Pinot

Noir. The arrival of these vines from France has proved to be a step of good fortune as

these varieties are the only pre-Phylloxera clones that exist anywhere in the world.

(http://www.chileweb.net/wines/history.htm )

The un-grafted vines that now exist in Chile are twice as old as those found in France

and California which had to be grafted onto American rootstock at the turn of the

century in order to protect them. With the advantage of age comes quality, earlier

harvesting of new vines and often higher yields. (Kolpan, Smith, Weiss 1996).

The nineteenth century witnessed an establishment of many more vineyards in Chile,

often by the wealthy of Chile, who employed French winemakers struggling to make

a living in the Phylloxera plagued vineyards of France.

They brought the latest French technology and by 1877 Chilean wine producers

started to export their wines to Europe. There are records of Chilean wine makers

exhibiting their wines at Bordeaux in 1882, Liverpool in 1885 and Paris in 1889.

(http://www.vinasdechile). One French wine maker associated with this time is Joseph

Bertrand.

By the start of the twentieth century, the industry was healthy and thriving compared

to much of Europe.

During the twentieth century, the story of the Chilean wine industry became more

complex however.

Restrictive legislation regarding the planting of vines, political instability within the

country and high taxation all prevented it from competing successfully against up and

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coming producers such as Australia, New Zealand and South Africa for some

considerable time. ( http://www.vinasdechile.; Kolpan, Smith, Weiss 1996)

The law that restricted the wine trade was eventually repealed in 1974, following the

change to a free market, and since this time the Chilean wine industry has not looked

back. (http://www.vinasdechile)

The arrival of wine makers, such as Miguel Torres in 1979, from Catalan, helped to

introduce new technology to the struggling Chilean industry and this led, in the 1980s

and early 1990s, to a replacement of many the old methods of production with new

technology. For example, the introduction of stainless steel tanks which allow

temperature-controlled fermentation, in place of traditional beech barrels. (

http://www.chilewinemarket.com) and the purchasing of new French and American

Oak casks to age certain wine varieties.

Torres success acted a catalyst for the Chilean winemakers and forced them to return

to their roots and reexamine their wine making process from vine to bottle in order

to ensure the industrys future.

Since the mid 1980s there has been a major replanting of premium vinifera grapes (

Kolpan, Smith, Weiss 1996) and substantial international investment which has

secured Chiles position on the world stage once more and in

1994, a new law was passed to regulate the zoning of winemaking areas and the

designation of origin, another step in ensuring that quality is a key word in Chiles

wine future.

Chile is now going from strength to strength and the future looks very bright.

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Size of the Industry and Markets

Chile now ranks as the worlds twelfth largest wine producer, according to the most

recent statistics released by one of the worlds most reliable sources, the California

Wine Institute, in December 2001, (http://www.wineinstitute.org/).

In 1999, Chile produced 126,991 thousand gallons of wine,

(http://www.wineinstitute.org/) ranking behind the European giants of Italy, France,

Spain, Portugal and Germany and the considerable New World markets of the United

States, Argentina, South Africa and Australia. Romania also currently exceeds Chiles

production levels, as does China, a recent player in the global wine market who has

practically doubled its production levels in the last five years.

After showing a steady growth from 1995, when it produced 101,022 thousand

gallons, to 1998, when it produced 144,639 thousand gallons and ranked in ninth

position, Chiles ranking, interestingly, dropped from ninth place to twelfth place in

1999.

On first glance, this statistic may seem worrying for a country who is keen to make its

mark as a major player in the global wine market but, more detailed investigation

reveals that this was a deliberate tactic on Chiles part at that time. This was a time of

consolidation in the Chilean wine market. New international business interests and

partnerships in Chile realised a need to lower levels of production in some vineyards

in an attempt to concentrate efforts on quality rather than quantity. (

http://www.chip.cl/tours/wine/background.htm). Over the last few years production

7
levels have started to rise again (http://www.vinasdechile.) but with a keen eye on

quality and Chile is now gaining a reputation as a premium wine producer around the

world.

The amount of land under vine in Chile remains on an upward trend and in 1999 there

were 369 thousand acres of vineyard compared to 331,000 acres in 1998 and 309,000

in 1996. ( http://www.wineinstitute.org/communications/statisics/).

The planting of new vines is always an encouraging sign and suggests that confidence

has returned to Chile following a difficult time pre 1974.

Chiles position with regards to exports also looks bouyant. In 1995 Chiles wine

exports were worth approx. 180 million US dollars, by 1999 the market had increased

to an impressive 525 million US dollars. (http://www.vinasdechile)

Chile now exports to ninety five countries around the world with major customers in

the United States, The United Kingdom, Germany, Canada and Japan.(

http://www.vinasdechile). In 2001, bottled exports to the U.S.A. were in excess of 51

milion litres, the U.K. over 42 million litres, Germany nearly 10 million litres,

Canada 9.5 million litres and Japan nearly 9 million litres. Asia also looks like a

growing market.( http://www.vinasdechile).

The president of Vinas de Chiles president, Mr Rafael Guilsasti, in a recent statement

reported that he expected the export market to reach approx. 630 million dollars in the

year 2002. (http://www.vinasdechile).

The export market will be helped in the future by the announcement, in December

2001, of the signing of a Mutual Acceptance Agreement on Oenological

(Winemaking) practices between the governments of the U.S.A., Canada, Australia,

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Chile and New Zealand. The agreement will promote, and liberalize, international

wine trade by recognising the effectiveness of other countrys regulatory systems for

wine standards. (http://www.wineinstitute.org).

The recognition of Santiago as one of the wine capitals of the world, alongside such

centres of excellence as Bordeaux, San Francisco, Florence, and Melbourne in a

recent ceremony ( http://www.vinasdechile) acknowledges the current status of

Chiles wine industry as the premier quality wine producer in South America and

bodes well for a bright future.

Environment

In general terms, vines need certain environmental conditions in order to prosper. In

this respect the environment is defined by two main factors; soil and climate. The soil,

important though it is can be managed through irrigation and drainage, fertilizers and

supplements. The climate is a completely different matter since it is impossible to

influence because of its very nature.

Turning to climate, the different cultivated varieties of vine do not respond in the

same way to environmental considerations and specifically temperature. During the

plants active stage, from spring onwards, the total number of hours with temperatures

between 68oF and 90oF defines the development and behaviour of the plant. Once the

vine's shoots appear in the spring the climate needs to be free of frost. In addition,

9
they all require well defined winters which should have cold enough days in order to

provide the plants with rest during that season.

Finally, to obtain first quality grapes it is a great advantage to have wide temperature

differences between day and night during the period when the vine's cluster is

ripening.

In applying these issues to Chile, the country is frequently associated with a narrow

strip of land located with wine growing regions between latitudes 33o and 37o south.

To the west the country borders the Pacific ocean with its cold currents that moderate

the temperatures of the whole viticultural central zone of the country. Rainfall is

concentrated in the winter, thus preventing the spread of fungus diseases. For this

reason, preventative or curative fumigations in Chilean vineyards are no more than

three or four a year compared to ten in other wine producing countries. To the east,

the country is bordered by the Andes. These mountains have the virtue of first

stopping and then draining the cooling air coming from the ocean in the west causing

a substantial temperature drop at night in spring and summer. In addition to the Andes

being a temperature regulating wall, its presence is what allows the winter rain needed

to produce a build up of snow. This build up is indispensable for irrigation in spring

and summer when the thaw comes. It is a water supply that in many cases makes it

possible to manage irrigation without using reservoirs. In Chile, irrigation of the vines

is nearly always necessary, because the lack of rain in spring and summer would

make the hydric stress too big for the plants. From these comments, five climatic

points can be identified in terms of Chilean wines.

1. Four clearly differentiated seasons.

2. Temperature levels which are adequate for cultivating vines, and cold winters

for their dormancy.

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 3. Little rain in spring and almost none in summer and autumn.

4. A wide thermal range which give the wines their colour and aroma.

5. Low or nil incidence of frost in spring and summer.

Chilean Appellation of Origin

Chiles' wine producing zones are defined by law under Decree No 464, 1995. The

decree divides the country into regions, sub regions, zones and areas, and it is optional

for the user to mention them on the labels of the wine bottles. Similar concepts of

control refer to grape varieties from which the wines are made of and the vintage

years. These classifications are based on a scheme that was developed on the basis of

latitude. In addition, technical considerations for the system include climate and soil.

The main regions and sub regions are listed below in table 1.

Table 1 Chilean Appellation of Origin.

Vine Growing Region Sub Region

Region de Atacama Valle de Copiapo
Valle del Huasco
Region de Coquimbo Valle del Elqui
Valle del Limari
Valle del Choapa
Region de Aconcagua Valle del Aconcagua
Valle del Casablanca
Valle del Leyda
Region de Valle Central Valle del Maipo
Valle del Rapel
Valle del Curico
Valle del Maule
Region del Sur Valle del Itata
Valle del Bio Bio

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Grape Varieties

Cabernet Sauvignon

This grape variety originally comes from Bordeaux. It was introduced into Chile

during the 19th century together with the rest of the French varieties that are grown in

the country. The presence of 35,417 hectares makes Chile one of the main wine

producers in the world to use this variety.

Pinot Noir

This is an old variety that came originally from Burgundy with many sub varieties

which are in turn highly variable. In Chile it is only recently being reconsidered as a

variety for creating very fine red wines. For a long time it was grown in very hot areas

which are unsuitable for allowing it to express itself well. It has now been shown that

excellent results can be obtained in cold regions such as the Casablanca Valley. At

present there are 1,607 hectares under vine of Pinot Noir in Chile.

Carmenere

This variety also arrived in Chile together with the others brought in from France in

the mid 19th century. In that country as a result of the phylloxera outbreak, it

disappeared as a recognised variety and was cultivated on American graftstocks,

unlike what happened with all the other varieties. During the 19th and 20th century it

was confused in Chile with the Merlot grape variety, a mistake only discovered in

1994. Today it is almost unique to Chile with a total o 4,576 hectares planted. It

exists almost nowhere else in the world except for 4500 hectares in Italy and a few

new plantations in China.

Merlot

Merlot comes originally from Bordeaux. The merlot variety has been known in Chile

since the 19th century, brought in with the rest of the French varieties. For many years

12
it was considered to be a complement to make Cabernet Sauvignon milder or

encourage it to mature more quickly. Only since the 1980s has it been used in its own

right which explains its boom with 12,946 hectares now planted in the country.

Cot o Malbec

This variety comes from south west France where it is known as Cot Rouge. When

introduced in the Gironde, it was re-baptized Malbec. In Chile there are signs that this

may turn out to be a variety that produces interesting wines although there are only

945 hectares of it planted. As in the case of Merlot it was used for many years as a

complement to Cabernet Sauvignon to enable it to mature faster.

Syrah

There is no definitive opinion as regards to its origin but it has been grown since

Roman times in the northern part of the Cotes de Rhone valley and in Dauphine when

planting was first authorized in Gaul. In Chile it may be said that it was reintroduced

comparatively recently. Since it is a very rustic and highly vigorous grape variety

which flourishes in temperate to hot climates, there are already 2,007 hectares under

vine, distributed from the Limari valley in the north and the Maule valley in the south.

It concentrates primarily in the Colchagua valley with over 670 hectares planted with

it.

Sauvignon Blanc

This variety may have originated in central or south western France. With regard to its

presence in Chile it should be made clear that in fact until a short time ago the

predominant strain was the Sauvignon Vert. This mistake was discovered in the 1970s

and since then new vineyards have been planted with the genuine Sauvignon Blanc,

with plants brought from France and Calafornia. The variety began to find its true

expression in the 1980s when it was planted without mixtures of Semillon and at the

13
same time thermo controlled fermentation procedures were introduced. The total area

covered by this grape variety is 6,944 hectares and is found in almost all the wine

producing regions of the country.

Chardonay

The origin of this white variety is found in French Burgundy. Some people place it in

the Macon area where there is a village called Chardonnay. In Chile, although it

arrived in the 19th century, it was only rediscovered in the 1980s when thermo

controlled must fermentation came into use. At present it is grown preferably in cool

climates such as the Casablanca Valley where all its virtues are best expressed. Chile

possesses 7,786 hectares planted with this grape variety, 1,861 hectares within the

Casablanca Valley.

Semillon

It is thought that this variety came originally from the Bordeaux region of Sauternes

in France. For many years it was the fundamental basis for the production of white

wines in Chile covering more than 20,000 hectares. At the present time it is going

through a period of acute contraction with plantations being up rooted and a lack of

new plantings. At present it totals only 2,103 hectares. It ripens later than other white

varieties grown in Chile, such as Sauvignon Blanc and Chardonnay and is excellent

for making wines known as late harvest.

Gewurztraminer

This variety originally comes from a little town in the Italian Tyrol called Tramin. It

was introduced into Germany in the 16th century where it was called Fleischweiner,

and must be grown in cool climates. In Chile only 133 hectares are planted with this

variety, particularly within the Casablanca Valley, though it has been in the country

since the 19th century.

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Vinification

Good harvests and quality wine require grapes that are fully ripened and completely

healthy. It is during the summer that the grapes grow, change colour and ripen, ready

for harvesting in the autumn. During ripening they become rich in sugars and they

lose their acidity. It is this sugar acidity balance that determines when harvest begins.

During vinification, the grape juice or must is changed into alcoholic liquid, wine

through fermentation. Careful selection of grapes, usually by hand in Chile,

determines the quality of the wine. The essential characteristic of red wine is that the

must is allowed to ferment in contact with the solid parts of the grape: the skin and the

pips. The stems are separated to avoid producing a wine with too much tannin. With

the aid of yeasts, fermentation takes 6-10 days at temperatures ranging from 59o to

86oF with the benefit of a small amount of aeration. Varietal wines need a shorter

time in the vat because they do not undergo the post fermentation maceration which is

necessary for reserve wines. Post maceration which is aimed at a greater extraction of

tannin so that the wine will have more concentration and body, extends for 1 to 4

weeks after alcoholic fermentation. After removal from the vat, which is generally

aerated, the wine begins a secondary or malolactic fermentation, caused by specific

micro organisms called lactic bacteria. This contributes to the smoothness of flavour,

complexity of aromas and changes malic acid into lactic acid. It is said that malolactic

fermentation de-acidfys and smoothes new wines. The wines are then strained, then

racked and placed in American or French oak barrels for 10-18 months before

bottling.

White wine is made by the fermentation of must alone without maceration of the solid

parts. However, to obtain more aroma in white wine, a technique called pre-

fermentation maceration (skin contact) is used. It is based on achieving an enzymatic

15
 release of the varietal aromas by means of a slight maceration of the skin. It takes 6-

12 hours at low temperature (41o to 50oF). Reserve white wine in Chile is aged in

American or French oak barrels. An initial stage of fermentation, 8-12 days is allowed

in the barrels at 63o to 68oF. The ageing process then continues for 4 to 10 months.

After this process the wine is racked, filtered and bottled. Unlike a reserve red wine,

ageing of white wine in bottles is of a shorter duration.

One aspect of increasing importance for Chile is the production of organic wines.

With an absence of fungal diseases, and insects, the use of technified drop by drop

irrigation, there is an avoidance of the need to use chemical herbicides. The

vinification process avoids the use of almost all chemical agents other than sulpur

dioxide in small quantities. Overall, the production of Chilean wines respect the

environment, promote biodiversity and use natural fertilizers.

References:

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