Serge Hochar is president of the Union Vinicole du Liban (UVL). He also makes the celebrated Chateau Musar, who wines have been listed among the world’s finest. In this interview he talks to Executive’s editor Michael Karam about the future of the Lebanese wine sector, the international export market and how he and Lebanon’s 15 other producers can help regulate and develop the wine sector into a more viable and potentially lucrative agro-industry and a symbol of culture, civilization and good living.
You have just come back from the London International Wine and Spirits Fair and VinExpo in Bordeaux? How important are wine fairs for Lebanese producers? Are they cost effective?
They are good opportunities to promote our wines, especially as we are still relatively unknown. Therefore it is the best way for us to get exposure. Of this I have no doubt. It was how Musar made its breakthrough [at Bristol in 1979]. However each winery has its own evolutionary stage and has its own requirements. Mainly the big consortiums and the small producers attend today’s wine fairs and in this way they reflect the market trends. Lebanese producers need to be there but they are often costly and this is why the individual producers have become selective as to which fairs they attend. Musar stopped going five years ago, as it was not part of our strategy, but two years ago when we released our new wines, we reversed this decision.
In London there was only you and Chateau Kefraya. How important is it to have a national showing?
As I said, Producers make their own choices. There was a bigger showing at Pro Wein [in Düsseldorf] and nearly all of us will be attending Vin Expo. I am not sure given the size of Lebanon whether it is indeed better for us to be grouped together or whether we should be individuals. I don’t see it as a necessity but it could definitely help, allowing us to confront the market as one, giving informed people the opportunity to taste all the different wines from various terroirs and the various producer and their conceptions. Of course this is a good thing.
Between 1990 -2005 Lebanese wine production has doubled. What is the state of the wine sector today? Many see the sector divided into three segments: You, Ksara and Kefraya and then the rest? Is this a fair assessment? Can we look at the market in three segments with three separate interests?
There is no desire within the UVL to hurt any other member. If we can develop all the wine producers within their ability, then that is a good thing. Massaya helped us a lot. They [the Ghosn brothers] brought us together. We met, we had lunches and we became like a family. And so today, we have a financier, a dentist and an architect who all want to produce wine.
What then do you say to those producers within the UVL [Union Vinicole du Liban] who privately complain that their interests are not wholly represented?
What are their interests? If you want to come to the truth it was ourselves [Châteaux} Ksara and Kefraya that started the UVL to join the OIV [and we made the [wine] law. Our aim was to be recognized as a wine producing country, one that could export to Europe and this was it. Since then, in the last five years, there have been so many newcomers that we realized that there should be a body to regulate Lebanese wines from the first stage of grape growth to the bottling as well as analysis and marketing and this is why we have called for the creation of the National Wine Institute. We need to get to this stage so we can monitor the growth of the sector and develop it. Do we know where the best terroir is? Do we know which areas are suited to which grapes? No, because we have no studies but there are people and organization that can help us. Our first objective was the law and I said at the time that without a law we are wasting our time. Then I said we need an institute and without it we are still wasting our time. We don’t need to look to the UVL as a marketing tool but sadly some producers cannot see this.
Where are we with the National Wine Institute?
Its establishment is not too far away but we should not dream about achieving too much too soon. Once we have an institute and we have a budget, we can proceed. Anything that cannot be done by the UVL will be given to the private sector. Then we can develop a global policy that will cover the wine from the grape to the market. Then we can begin set out building a sector, one that one day will produce 50 million liters from 100 – opposed to 16 – producers. That will not make us a great wine-producing nation but it will make us a respectable one. You must remember that Gallo [the Californian producer] makes 600 million liters. I am dreaming of this because I believe that the added value of wine in Lebanon is immense but few people can see it. Finally we must sell our wines at a premium. We have to, when we represent roughly 0.018% of the world’s production.
What are the potential repercussions to the sector if there are further delays?
There will be none because our levels of production are so small.
Wine is arguably Lebanon’s most high-profile export? Do you believe the government is serious about wine or even aware of the potential?
Most of those within the government are aware apart from those who are oriented towards wine and aware of its history and recent successes, but these people do not have the time to get involved in promoting the wines.
Ok let me ask you this. Do you need the support of the government?
In the 70s, I went to MEA to ask them for help they said we don’t help the private sector. I went to the national Tourism Council and they said the same thing. At that point I said forget it. Then, when I became known people wanted me to help them. I said “when I needed you, you said no. Why do you need me now?” So it would be wrong to assume that we can build something substantial with government support.. The [National Wine] institute should be a private institute with a public character, which will allow the public sector to be involved but it will be run by private sector mechanisms. This is the only way to save the institute from the virus of the public sector. In reality we can do everything ourselves. Even the agro initiatives can be done by the industry.
There are two new wineries in the pipeline and as far as we know they have not yet planted any grapes or have long-term relationships with the major negoçiants. What are the pitfalls of entering the sector this way?
In Lebanon, you have wineries who own land and who own the grapes. Then you have wineries that have rented land and plant grapes and you have wineries that have long term contracts to buy grapes from local growers. Then you have the other end of the market where producers buy grapes from local growers on a casual basis. The latter is dominated by the newcomers who are by and large not knowledgeable and who will take any grape and they will learn from experience. This multiple approach from ownership to direct buying happens all over the world from US to Europe to Burgundy. It is nothing strange.
So it will not be disruptive to the sector?
For the time being the production of grapes is increasing. Many people are planting more grapes with a view to one day produce their own wine. Michel de Bustros {of [of Château Kefraya] started planting in 1955 and began his wine production in the 80s. I don’t see a problem. There is room for more production.
Lebanese producers are forced to export due to the domination of the local market by Châteaux Ksara and Kefraya? Is it feasible to introduce a campaign to encourage the buying of Lebanese wine that might increase overall national consumption?
This would be great if you can do it.
So what’s stopping us?
It could be done under the state. Why not I am not against it but we don’t have the means. The newcomers need help. Forget the local market. It is a waste of time lets talk about the world market where we can find room to sell. But it is not the responsibility of the UVL to do this. They need help at a government level. This was not the objective of the UVL when it was founded. But before all this we need a policy regards the regulation of wine. You have met all the producers. How can we launch a campaign to include all of them?
Well, you could have a generic campaign urging people to drink Lebanese wine. A pretty woman sipping a glass of wine, Lebanese wine, any Lebanese wine.
Look at how small our production is: 6 million bottles. Who would fund such a campaign? Mouton Cadet spent $10 million to launch his new bottles. He is just one winery and he produces 16 million bottles. The [Lebanese wine] sector is worth $25 million. Ours is a poor world when you thank that a Saudi Arabian can come to Lebanon and spend $6 million on an apartment.
What are the biggest challenges facing Lebanese exports?
It is a very tough international market, one that is going a very difficult situation. There is a glut of wine and people are drinking less. I don’t know where the world market will be in ten years time.
Can we not capitalize upon this position ourselves as producers of limited quantities of very good wine? We are exporting 3 million bottles a year. Surely with the correct positioning they should be snapped up immediately?
With the right marking, yes. But it is a long process.
How do we compare regionally? Why are Israeli wines in the UK supermarkets and ours aren’t? Is it purely because they can meet the volume demands or are they better organized?
The Israelis had two things in their favor. They used Davis [university] enologists who made technological, cépage-oriented wines like much of the new world and second they were very clever at marketing, using their contacts within the world wine market, many of whom are Jewish. Isreali wine is a niche apart. The Moroccans, Algerians and the Tunisians had French influence. We can’t talk about Egypt and we can’t talk about Turkey. Greece has started to improve since it joined the EU.
What’s your dream for Lebanese wine? Do you drive over the Bekaa and look at the valley and wish it were all planted with vines?
No. My dream is that we exploit the Lebanese terroir to produce wines that reflect the climate and microclimate of Lebanon, show its culture and are not deformed in any way to reflect the demands of the global market, because one day the whole wine world will follow this trend and make wines that reflect their country. Do not think that tomorrow we will drink same wines we drink today.
But we need to the rest of the world about our wines.
That is your homework. I am just a wine maker
