WSET D3 - Chile

Question 1

Summarise the history of Chilean Wine industry.

Answer 1

1550s - Spanish settlers brought V. vinifera to Chile, before Argentina. Early wines unsophisticated in an oxidative style from varieties such as País ( Criolla Chica in Argentina) and Muscat.
19th century - wine production expand significantly. Firstly, independence from Spain. Chileans then free to exploit country’s vast mineral resources and some ploughed their new-found fortunes into vineyards. 1851 - one of them, Silvestre Ochagavía Echazarreta, imported vines from Bordeaux bringing a French winemaker along. Meanwhile, an experimental nursery established in 1830s, including stocks of European vines, meaning when phylloxera ravaged, many European winemakers drawn to Chile.
Start of 20th century - booming wine industry although vast majority was basic, cheap wine, much consumed domestically.
Middle of century - industry decline: domestic demand declined whilst Chile politically isolated from outside world.
Early 1980 - Half Chile’s vineyards been pulled ups, including Chile’s top quality regions.
However, things soon change with return to democracy and free market.
1980s and 90s - Producers began investing heavily in new technology and shifted focus to quality wine production for export market. Large areas new vineyards re-planted. New vineyard areas were established, eg, in Casablanca, San Antonio and Limarí Valleys. Further development in new coastal and mountain regions, and traditional regions of Itata and Maule being rediscovered for winemaking quality.
Chile sometimes accused of producing safe and reliable wines that were a little formulaic or uninspiring. Past decade has seen a move, in line with global trends, to less extraction, less oak and more elegant style. Chile established a number of outstanding quality wines that compete with the best in world markets and expanded its range with aromatic whites from cooler, southern areas.

Question 2

What is the Climate like in Chile.

Answer 2

Narrowest and second longest country.
Hemmed in by Atacama Desert to north, Andes to east, Pacific Ocean to west and glaciers of Patagonia to south, main vineyard area only around 1,000 km long, stretching from Elqui Valley (30°S) to Malleco Valley (38°S) in south. However, recent years, number of vineyards been planted in Atacama Desert, and further south in Cautín and Osorno.
Climate across main regions fairly consistent north to south. Most have a warm, Mediterranean climate with long, dry and sunny growing season, although becomes cooler and wetter further south. Relatively low latitude means sunlight is intense. Annual rainfall varies with northern and inland areas being drier (as low as 80 mm in Elqui) and coastal and southern being wetter (1,200 mm in Bío Bío).
Like other Pacific countries, Chile affected by El Niño phenomenon, occurs every 2-10 years bringing much higher rainfall, and much lower rainfall or drought in La Niña years. Together with fact producers increasingly planting in more climatically extreme parts of country, means variations between vintages can be significant.

Question 3

What is the geography like in Chile?

Answer 3

Many planted within valleys run east to west so most climatic variation also occur from east to west. Pacific Ocean and Andes provide a significant cooling influence at either end of valleys lengthening growing season and retain acidity and aromas.
Along significant stretch of coast runs range of low mountains (300-800m) forming barrier against influence of ocean. Vineyard areas to west fully exposed to ocean influences. Humboldt Current flows up from Antarctica bringing cold water and hence cool air. As warm air rises from land during the day, cool air sucked inland. Also produces morning fog moderates temperatures until burned away by heat of sun but also increases humidity.
Coastal range and Andes effectively merge to north of Santiago (in Coquimbo and Aconcagua) but to south they part to create a large, dry, warm and sunny central valley between them where grapes for high volumes inexpensive wines are grown.
Where there are gaps in coastal ranges, fogs and cool breezes can enter valley, moderating vineyards lie just to east of coastal ranges. Planting on slopes of coastal ranges or on hills in valleys can also provide cooling influences either through altitude or aspect (higher quality grapes).
East of country, number of vineyards planted on or near foothills of Andes. Cool mountain air descending from Andes overnight leads to high diurnal ranges, altitude, also moderate temperatures.

Question 4

What are the main soil types found here?

Answer 4

River valleys - fertile soils (mainly alluvial, with areas of clay, sand, silt and gravel)
On slops - less fertile
Coastal ranges - more gravel with sand and silt
In Andes - volcanic, mainly granite
Little limestone in Chile (most in Limarí Valley)
Recent years has been a remarkable advance in understanding terroir and soil, led to greater interest in single vineyard wines.

Question 5

How’s the growing environment like in Chile?

Answer 5

Production increased greatly. Marked fluctuations in production volumes year on year (effects of El Niño).
Normally dry and sunny growing conditions across most regions ideal for producing healthy, fully ripe grapes. Intense sunshine means grapes ripen reliably with high tannins and anthocyanins. Many areas, dry conditions mean risk from fungal disease is minimal (little need for spraying). However, coastal areas humidity means fungal diseases can be issue.
Due to low rainfall most of country, over 85% vineyards are irrigated. Exception is in Itata, and to lesser extent in Bío Bío and Maule where vineyards can rely on rainfall and old vines have deep root systems can survive drought years. Like Argentina, Chile has access to supplies of pure water from melting snow brought down from Andes by many river valleys. Where rivers not present (such as Casablanca) irrigation water may come from aquifers via wells. However, as a result of climate change, not only average temperatures rising but snowfall in Andes reducing, limiting access to water.
Chile remained phylloxera free, thanks to geographical barriers and strict quarantine rules. Therefore considerable plantings of old, ungrafted vines, particularly old bush vines of País, Muscat, Carignan and Cinsault in Itata and Maule. However, many planted relatively recently and grafted vines becoming more common to protect against nematodes.

Question 6

What are the main hazards here?

Answer 6

Forest fires. Commercial forestry is a huge industry and large plantations (pine and eucalyptus) can fuel major fires. Even not usually directly affected, those near can be affected by smoke taint.

Question 7

What training system is commonly used here?

Answer 7

VSP is now by far the most common.

Question 8

How is harvest carried out in Chile?

Answer 8

Mechanization is easy in flat vineyards and is increasingly introduced in Central Valley as finding labour becomes more challenging. However, overall machine harvested is low.

Question 9

Is sustainable and organic viticulture widely practised in Chile?

Answer 9

Overall, sustainable and organic viticulture is widely practised and promoted by leading producers and trade bodies.

Question 10

What are the most planted grape varieties?

Answer 10

Cabernet Sauvignon
Sauvignon Blanc
Merlot
Chardonnay
Carmenere
País
Syrah

Question 11

Summarise the development of Chilean grape varieties and wine styles.

Answer 11

Black varieties (3/4). Until 1990s, most commonly planted was País. Traditionally used for inexpensive wine for domestic market, around 75% been pulled up since 1980s. However recent years, a revival with some good quality wines being made from old vine stock in Maule, Itata and Bío Bío.
Since 1990s, significant shift in focus to international varieties, particularly Bordeaux varieties. There have been some issues with vine identification in Chile. Carmenere was confused with Merlot and called Chilean Merlot until 1994. Similarly, majority vines called Sauvignon Blanc by Chileans were almost certainly Sauvignonasse and occasionally Sauvignon Gris have only recently correctly identified.
Recently, trend for greater diversity. Although top 4 varieties make almost 60% plantings, producers increasingly experimenting with broad range different varieties from aromatic whites such as Muscat, Viognier, Riesling, Gewurztraminer, to black Mediterranean varieties such as Carignan, Cinsault, Grenache and Mourvèdre.
Also increasing diversity in wine styles. Chile has become a leading supplier of inexpensive fruity wines made in temperature controlled, stainless steel tanks and intended for early drinking. However, also capable of making good and very good wines with mid-price and outstanding wines at premium sometimes super-premium price. Growing number of producers, including some largest wineries, experimenting with less new oak, greater used of old oak, concrete occasionally amphorae; whole bunches and gentler extraction for reds; use of extended skin contact and lees contact for whites. Rosé and sweet wines also increasingly produced.

Question 12

Describe Cabernet Sauvignon.

Answer 12

Most planted, many Chile’s finest and most expensive wines, single variety or blend with Merlot, Carmenere or Syrah. Mid-priced and premium wines tend to be full-bodied with high, ripe tannins pronounced dark fruit, particularly blackcurrant, often with a herbaceous (mint or eucalyptus) character. Maturation in at least proportion of new oak tends to bring toasty, spicy notes. Best sites traditionally been near Andes, where poorer soils keep vigour in control, and cool nights slowed ripening, helped retain acidity. Also used to produce large amounts inexpensive, simple, fruity wines, particularly in flatter parts of Central Valley. They may still show some dark fruit and herbaceous character but with less structure, complexity and intensity.

Question 13

Describe Merlot.

Answer 13

Inexpensive Chilean Merlot, mainly from Central Valley, has done very well on export markets with its soft tannins, M body, dark fruit. Also widely used in blends. More complex, fuller-bodied with riper fruit also made by producers seek to keep yields low.

Question 14

Describe Carmenere.

Answer 14

Officially identified in 1994, planted as Merlot for many decades. Often used in blends, it is found increasingly as single-varietal and good and very-good quality examples tend to be full-bodied with high tannins, M acidity and ripe black fruits (blackberry), herbaceous characteristics (bell pepper, eucalyptus) and notes of spice, roasted coffee or dark chocolate when oaked.
Site selection important. Ripens 2-3 weeks later than Merlot and needs warm (not too hot), sunny sites otherwise can be overly herbaceous with harsh tannins. However, if too ripe, can be overly alcoholic. Research into clonal selection, site selection and harvesting dates, less extraction and new oak usage in winery mean styles likely to keep evolving.

Question 15

Describe Syrah.

Answer 15

First planted mid-1990s, increased rapidly. Grown in different locations, variety of styles: from cooler-climate style of San Antonio, Casablanca, Limarí and Elqui with higher acidity, fresh black fruit and notes of pepper and clove, to warmer-climate style of Colchagua Valley, fuller-bodied with more intense, riper black fruit flavours.

Question 16

Describe Pinot Pinot.

Answer 16

Improving rapidly, especially in cooler areas such as Casablanca and San Antonio. Best show red fruits with herbal characters and medium to high alcohol.

Question 17

Describe Sauvignon Blanc.

Answer 17

Most planted white grape. Thrives particularly in cooler areas such as Limarí, Casablanca and San Antonio, where can produce very good quality with high acidity and flavours range from citrus to tropical sometimes hint of wet stones or herbaceous character. Some use lees contact and oak ageing to increase complexity. Large amounts good quality, inexpensive also made throughout Central Valley.

Question 18

Describe Chardonnay.

Answer 18

Cool coastal areas, particularly Limarí, increasingly recognised as source of very good Chardonnay. M (+) to high acidity with citrus, stone fruit. Large amounts inexpensive Chardonnay also produced, particularly in Central Valley, with ripe tropical flavours. Can be oaked or unoaked.

Question 19

Wine law and regulations.

Answer 19

1995, created system of Denominaciones de Origen (DOs).
5 main regional DOs created (Atacama, Coquimbo, Aconcagua, Central Valley and Southern) largely along political boundaries – a 6th, Austral was added later. These regions further divided into number of sub-regions tended to follow river valleys. eg, Central Valley Region sub-divided into Maipo, Rapel, Curicó and Maule Valleys. Later, smaller zones created in number of sub-regions, eg, Colchagua and Cachapoal Valleys in Rapel Valley. Now also growing number smaller DOs called ‘areas’. Either belong to a zone, eg, Apalta is part of Colchagua Valley, or sub-region (where no zone exists), eg, area Puente Alta is part of sub-region of Maipo Valley.
Greater diversity in climate and soils from east to west than from north to south. To reflect this, further set of designations introduced in 2011, splitting valleys into Costa (areas with coastal influence), Andes (areas influenced by mountains) and Entre Cordilleras (areas in between). These new designations sit on top of existing DO system, meaning wines can be labelled, eg, Aconcagua Costa or Maipo Andes.
To qualify DO status, 75% grapes must from that region, or 85% for wines being exported to EU (EU rules). Varietally-labelled must contain at least 75% that variety (85% for exports to EU). DO wines must have minimum 11.5% abv.
Number of legally recognised labelling terms: Superior, Reserva, Reserva Especial, Reserva Privada and Gran Reserva. Very little meaning except higher min. alcohol (12% abv for Reserva and Reserva Especial; 12.5% abv for Reserva Privada and Gran Reserva) Reds labelled Reserva Privada and Gran Reserva must aged in oak min. 6 months. Some use these terms to distinguish between wines in their portfolio, although many now do not use different branding and label design to indicate wines of different price and quality levels.

Question 20

What are the different levels within DO according to delimited size of area?

Answer 20

Region - Sub region - Zone - Area.

Question 21

What are the 4 main regions?

Answer 21

North to South:
Coquimbo
Aconcagua
Central Valley
Southern

Question 22

Summarise Coquimbo region.

Answer 22

Traditionally table grapes and for Pisco (grape brandy), since 1990s, winemakers started to recognise its potential for high-quality wine. 3 DOs are Elqui, Limarí and Choapa (very small quantities).
Low latitude (Elqui Valley around 30°S), summer temperatures high, sunlight is intense. Cooling influence of both mountains and Pacific Ocean essential to delay ripening, producing wines show intense fruit, balanced by fresh acidity. Alcohol can be high.
Humboldt Current brings morning fogs and cooling breezes but little or no rainfall: Coquimbo situated on edge of Atacama Desert, world’s driest desert, average rainfall less than 100 mm. Irrigation essential but reduced snowfall in Andes recent years led to water shortages threatening region’s future just as it starting to gain international reputation. Difficult growing conditions and difficulty accessing area (coastal ranges and Andes merged here) mean focus tends to be on smaller-production which can reach premium prices.

Question 23

Summarise Elqui.

Answer 23

Northernmost. Follows route of River Elqui from plains near coast, through low rolling hills and into foothills of Andes. Lack of coastal mountains and route carved by river means morning fog can reach further inland than other regions. Syrah and SB have shown well in fog-affected areas, cooling influence leading relatively high acidities and fresh fruit.
Elqui is also home to Chile’s highest vineyards: up to 2,200 metres at eastern end of valley. Even more intense sunlight and wide diurnal range producing deep-coloured, intensely fruit, yet fresh Syrah. Other Rhône varieties starting to show promise also Malbec.

Question 24

Summarise Limarí.

Answer 24

100km south Elqui, Limarí River cuts a narrow, steeply-sided valley through coastal mountains. West of region cooled by morning fog and cool breezes enter from bay to north (where no coastal mountains) and valley cut by river. Some exploring far east where sites in foothills of Andes can be found at 1500 m and higher; altitude providing cooling influence. Unusually for Chile, pockets of calcareous soils, retain moisture well, extremely useful in desert-like conditions and years of drought where water accessibility is an issue.
Chardonnay most planted, full range styles from lighter-bodied with high acidity at coastal end of valley to riper, fruitier styles further inland. Producers also experimenting with PN on these soils but so far, Syrah most successful, again range of styles along valley. Warmer eastern end of valley floor provides good growing conditions for CS, Merlot and Carmenere.

Question 25

Summarise Aconcagua region.

Answer 25

3 important sub-regions – Aconcagua, San Antonio and Casablanca Valleys – greater variety of soils and mesoclimates than any other in Chile. Central part of Aconcagua Valley is hot and dry, vineyards along Pacific coast are some Chile's coolest, where white production dominates.

Question 26

Summarise Aconcagua Valley

Answer 26

Distinction between new Andes, Entre Cordilleras and Costa sub-divisions is clearer than elsewhere, producers here are first to adopt them on labelling. Central part of valley is warm and dry, though moderated by afternoon breezes from coast. Rainfall 250mm and irrigation essential. It has built a reputation for ripe, full-bodied reds with high alcohol and tannins, particularly from CS and Merlot, although Syrah and Carmenere on increase. However as producers look to produce fresher, more complex wines with lower alcohol, they started to move away from valley floor to cooler sites on valley sides and eastern and western ends of valley. These tend to produce smaller-volume wines, mid and premium prices. In Aconcagua Costa, morning fogs and ocean breezes relatively unimpeded by hills and create conditions ideal for fresh whites, particularly SB, Chardonnay, as well as PN and cool-climate style Syrah. In Aconcagua Andes, up to around 1,000 metre. Days are sunny and warm, but cold air descends from mountains at night, leading to large diurnal range. Generally produces reds with pronounced ripe fruit balanced by fresh acidity.

Question 27

Summarise Casablanca Valley.

Answer 27

South Aconcagua Valley, only 30km inland. Low hills to west do little to diminish impacts of ocean whilst higher hills to north and east restrict cool, humid air from escaping, creating one of Chile’s coolest regions. There is climatic variation, however, with most westerly and low lying areas being coolest. Not near enough coast to receive much moderation at night and such cold nights mean spring frosts can be particularly severe. First vineyards planted in 1980s but quickly established a reputation for whites, particularly SB and Chardonnay. There are high-quality reds too: PN with red berry (strawberry) and herbal flavours and, from warmer, sheltered spots, typical cool-climate Syrah with spicy peppery characteristics. Due to relatively small production, mid to premium priced.

Question 28

Summarise San Antonio.

Answer 28

South of Casablanca Valley. Undulating hills to west of coastal range. Heavily influenced by ocean, but its hills give range of sites with greater or lesser exposure to ocean to west, and variety of aspects and soil types. Alongside PN, Syrah and Chardonnay, SB is flagship in San Antonio. High acidity, M body and flavours of citrus fruits alongside herbaceous notes sometimes wet stones.

Question 29

Summarise Leyda Valley.

Answer 29

First vineyards only planted within San Antonio in late 1990s, but since become well known for quality. Located a few km from coast, combination of foggy mornings, cool breezes and bright afternoon sunshine during, allow grapes’ flavours ripen while retaining acidity. SB, PN, Chardonnay and Syrah are main varieties.

Question 30

Summarise Central Valley.

Answer 30

Vast majority. Largely sheltered from maritime influences by coastal ranges, grapes grow prolifically on warm, fertile, well-irrigated plains, making Central Valley perfect location for ripe, fruity, inexpensive reds which made Chile so successful on export market. However, producers seeking to produce more complex, elegant wines begun to exploit variety of soils and conditions offered by valley sides, Andean foothills and parts of valleys closest to Pacific. However, these sites tend to be suitable only for smaller production so prices can reach premium or even super-premium. Split into 4 sub-regions, some been further broken down, meaning most labelled with their particular region of origin. Nowadays, only inexpensive, high-volume wines made from grapes sourced from number of different sub- regions tend to be labelled as Central Valley.

Question 31

Summarise Maipo Valley.

Answer 31

Northernmost Central Valley sub-regions, Maipo surrounds capital Santiago. Home to many family-owned wineries established in 19th century and continue dominate Chilean wine industry. Coastal ranges shelter area from any maritime influence, meaning growing conditions warm and sunny. (By comparison, Casablanca and San Antonio situated directly on other side of coastal range and have much cooler climates.) Plantings dominated by black grapes, particularly known for its CS, which, from valley floor, have high but soft tannins, intense aromas of cassis and often a minty character. Good to very good usually inexpensive to mid-priced. Very-good quality Carmenere and Syrah also produced, Merlot mainly for inexpensive wines. Maipo almost entirely surrounded by mountains and producers increasingly planting vineyards at altitude (some up to 1,000 m) at eastern end of valley, called Alto Maipo, and its sub-regions Puente Alto and Pirque have become known as a source of very good and outstanding wine, some at super- premium prices. Nights cooled by mountain breezes result in wider diurnal range, producing fresher, more elegant styles, mainly CS and Bordeaux-style blends.

Question 32

Summarise Rapel Valley.

Answer 32

South from Maipo. Sub-divided into 2 zones named after two rivers which merge to form Rapel River: Cachapoal Valley and Colchagua Valley. As a result, Rapel name is rarely seen on labels.

Question 33

Summarise Cachapoal Valley.

Answer 33

More northerly, also warmer as largely cut off from maritime influences by coastal ranges. Warm, fertile valley floor generally produces large volumes inexpensive reds, particularly from CS, Carmenere and Syrah. However, area around Peumo recognised for very good full-bodied, concentrated Carmenere. Peumo’s location within winding valley of Cachapoal river means is sheltered from cold weather from Andes, yet experiences winds funnelled from coast, which reduces frost risk, and ensures long, warm growing season for late-ripening Carmenere. Highest quality CS and Syrah tend to be at cooler eastern end Andean foothills.

Question 34

Summarise Colchagua Valley.

Answer 34

Larger. Wide variety of wines. Again warm, fertile central part produces large volumes inexpensive, full-bodied, fruity reds but, as elsewhere, viticulture expanded into cooler, less fertile areas, develop reputation for producing some Chile’s finest-quality and most expensive wines. Even within centre of valley there are hilly areas proven suitable for very good and outstanding, premium and super- premium priced wines. Apalta is one example. A south-facing amphitheatre, captures cool breezes from west, provides south-facing slopes that slow grape ripening, poor soils, reduce vigour. CS, Syrah and Carmenere, often blended, can produce ripe but structured wines. Most western end Colchagua Valley, vineyards fully exposed to coast and cooler conditions ideal for SB, Chardonnay and PN. A little further inland, just east of coastal ranges, warmer but coastal breezes provide moderating influence. Black varieties such as Syrah and Carmenere able to ripen fully.

Question 35

Summarise Curicó Valley.

Answer 35

Main reputation for inexpensive, high-volume reds produced in warm, fertile lands in central part valley. Several rivers flowing throug mean irrigation water easier to source than other regions. Summers warm and dry, largely sheltered from any coastal influence. Range of varieties grown though CS, SB, Merlot and Chardonnay most planted. Wide variety soils and climates and, while some exploring different varieties and styles, Curicó’s potential yet to be fully explored.

Question 36

Summarise Maule Valley.

Answer 36

Southern end Central Valley, more vineyard plantings than anywhere else in Chile. Traditionally known for high volumes inexpensive wines. Although still produces these wines from warm, fertile sites in central part valley, increasingly known as producer of very good reds, particularly from dry-farmed vineyards and old vines. Similar climate to Curicó, though further south slightly cooler with higher rainfall tends to fall mainly in winter. Enough to sustain vines over summer and some choose to dry-farm. As a result of cooler climate, reds can be lighter body and higher acidity. One of Chile’s oldest regions with significant stocks old bush vines, notably País and Muscat of Alexandria, many between 100 - 200 years old. Traditionally used to make inexpensive wines for local market. However, interest revived recently and some good and very good examples País now produced. Pale colour, M-bodied with M acidity, strawberry and raspberry, often accompanied by spicy or herbal notes. Tannins generally low or M (–) but can be rough in nature, therefore gentle extraction and techniques such as carbonic maceration often used. Maule also has more Carignan than any other region with many old bush vines dating back to when variety first introduced in 1940s. It is undergoing a revival, thanks largely to VIGNO, a self-regulating growers’ association that promotes old vine, dry- farmed Carignan, particularly from area of Cauquenes in south of region towards coast. Wines show raspberry, cherry and black plum fruit, often with spicy notes, and M (+) to high acidity and tannins. Very good and premium priced. Elsewhere in Maule, considerable new plantings of more commonplace varieties, such as CS, Merlot and Carmenere. Plantings also expanding into foothills of Andes, cooler conditions mean white grapes can successfully grown.

Question 37

Summarise Southern Region.

Answer 37

3 sub-regions (north to south): Itata, Bío Bío and Malleco. Coastal hills diminish as move further south and, with fewer hillsides protect inland regions from Pacific Ocean, climate gets cooler and wetter. eg, in Bío Bío, average rainfall regularly exceeds 1,000mm summer temperatures rarely exceed 30°C. Fungal disease can be problem, although ocean breezes, coupled with good canopy management, can mitigate risk. Higher latitude (36°–38°S) means days are longer during growing season, help ripening.

Question 38

Summarise Itata Valley.

Answer 38

One of Chile’s oldest regions. long produced mainly very cheap grapes for blending but recently enjoying a revival, with many leading producers purchasing or establishing vineyards over climate change and water shortages. Although newcomers planting more modern varieties, such as Chardonnay, PN, Merlot and CS, Itata dominated by its old bush vines (3/4) Muscat of Alexandria and País, being rediscovered as sources of high-quality, distinctive wines, especially when dry-farmed. Itata also has some old-vine Cinsault, producing some good and very good wines showing M alcohol, fresh acidity, and red and black fruit with liquorice notes and a saline edge.

Question 39

Summarise Bío Bío Valley.

Answer 39

Also has some dry-farmed, old bush vines with mix of traditional varieties (País). Also many modern vineyard with international varieties risen significantly this century. As well as PN and Chardonnay, producers see potential to produce elegant aromatic whites from SB, Riesling and Gewurztraminer.

Question 40

Summarise Malleco Valley.

Answer 40

Most southerly, home to only handful producers. Cool climate means early ripening varieties such as Chardonnay, SB and PN dominant with high acidity.

Question 41

Wine business.

Answer 41

4th largest exporter in world. 70% exported (low average value per unit volume, with only Spain and South Africa demonstrating even lower value to volume ratio). Current campaigns by promotional body, Wines of Chile, focused on promotion mid- priced, premium and super-premium wines to encourage image as a producer of premium wines. Focus on exports is vital as domestic consumption relatively low. Economy, one of strongest in South America, heavily focussed on exports, Chile signed number of free trade agreements, notably with China and South Korea (tariff-free trade). significant impact on Chilean wine exports with China now largest export market. Next most important export markets are USA, Japan (reduced import tariffs) and UK. Exports to other South America countries also significant, with Brazil 5th largest, helped by MERCOSUR free trade area. Although smaller wineries being established especially in newer regions, 80% wine still produced by 4 companies: Concha y Toro, Santa Rita, Santa Carolina and San Pedro, all can trace origins back to Chile’s first wine boom in 1850s. These companies own numerous vineyards in different regions, also source grapes from significant number of smaller growers. As well as numerous brands and wineries, also have wineries in Argentina. Chile also attracted many foreign investors, such as Torres, Mouton Rothschild, Lafite Rothschild and Jackson Family Wines, attracted by relatively cheap land and running costs (although has to offset against importing materials and equipment cost). On the other end, an emergence of very small wineries and producers. Some are part of MOVI, group of small producers making quality wine promote together in domestic and export markets.