Q & A with David Bernad, President of Miami International Wine Fair

The eighth edition of Miami Wine Fair confirms the success of a new proposition being one of todays’ most important fairs in the United States and the most recognized in the wine world in this country. The president and founder sat down with Excelencias Gourmet to talk about the details of the event.JC – Two years ago the Excelencias Group decided to create Excelencias Gourmet magazine, a means devoted to high gastronomy, the wine world, spirits and bartending with the idea of having an educational and communicative concept. So far the magazine and online newspaper (www.excelenciasgourmet.com) were in Spanish, but we have decided to use the Miami Wine Fair to launch the English version of the online newspaper. What is the Miami Wine Fair?DB- Nowadays the Miami Wine Fair is the unique fair devoted to commerce and wine professionals in United States. It also has a very important component: the consumer’s part, because in this country, mostly in the wine sector, an exclusively professional fair doesn’t work. The Fair began to be organized for the first time in 2001 and its first edition was in May, 2002. We chose Florida because we considered there was a market chance which nobody has seen. We realized that the wine consumption was increasing at an extraordinary rate and according to statistical projections of the time (Florida) will surpass New York as the second state in wine consumption in 2004-2005. It happened. In fact, Florida surpassed New York in 2004, drinking more than 51 million gallons, even though many people were surprised because Florida is viewed as a tropical estate of cocktails, martinis, beers. Yet, not only the residents drink but also all the tourists who come here, nearly 80 million annually, so as a whole too much wine is drunk. During all these eight years we have been thinking and reconsidering how to make the Fair a model that continues growing and I think we have done a very good job. Since the beginning we have wanted to recreate the models of the great European fairs, such as Pro Wine or VinItaly, but always adapting it to the needs of the American market, because the real thing is that in United States a fair of a product as popular as wine not open to consumers is a mistake, since it plays an important role when wine professionals take decisions to introduce and sell a series of beverage, specially wines. Also, the American consumer is more educated, best informed and know more about wine than Europeans. Maybe because the latter has it at home and is not so worried about it, while the American consumer has to look for it and be informed in a proactive way.The American market is the main one in the world with a higher number of bottles sold, and among the developed countries it has the highest growth, while all European producing markets, such as France, Italy and Spain are decreasing every year. JC- Why did David Bernad enter the world of wine world and organize a wine fair?DB. - I am a Spaniard, from Huesca, but I have lived 19 years in the States. I came for a month to learn English, then I stayed one year, two years, three years, then my college career, them a job, then another job and so on. I lived nine years in N.Y. and these last nine years in Miami. The concept about the fair? I really studied industrial and economics engineering. I didn’t go to the University to study restaurant managing or becoming a chef. But after the sommelier courses I took, I had my certificates and the wine job has been good to me. Before that I had my own company in New York targeting the Internet world in Latin America. It was named Latin Venture. We got Latin impresarios to obtain financing for new Internet projects. The Internet revolution barely stretched for a couple of years, so it had no sense. Later on, I began to look for opportunities among friends. Even though I have always been fond of wine I never thought to devote myself to and make a living of it. It had been this way when the research about the market chances and the idea about the fair began.JC: How many wine fairs are held in the United States?DB. - Hundreds. But what you find is consumer’s festivals, without any lucrative component. That is, festivals to get funds for a concrete cause which is a great and wonderful concept but they are not wine fairs. That is why we have created the Miami Wine Fair. I can say that events with more than 500 participants are considered important ones but I could only mention five or six.JC- How many exhibitors have signed up for this fair?DB- Between 400 and 500 exhibitors.JC- How is the geographical breakdown?DB- It varies dramatically from one year to another. Obviously, countries with higher production used to be more represented. This year there is a huge participation from France and Spain, the latter getting more hype in the Fair for a number of reasons because Spain is putting its money on the American market and it has made important investments. Wines from Spain Organization has done a good promotional job in the United States and has focused on this market so much because Spain is the bestselling country in the Old World while Argentina is in the New World, and also because the top fair shareholders are Spaniards. JC- What Spanish region holds the highest representation?DB – Last year it was Castilla La Mancha and Castilla Leon and this year it is Castilla la Mancha. Aragon also has an important presence over the last two or three years.JC – Is Aragon the first Spanish wine exporter to the United States? DB – It is the second, it but could have been Castilla Leon or Ribera del Duero because there are many denominations, so that it is difficult to say.JC – In the Fair, is there a particular part reserved for spirits, apart from wines?DB – That’s a discussion we have every year and it has to be handled carefully. In the Fair, about 85% of the space is reserved for wine, but we always have spirits and gourmet products and companies related to the wine world, such as glassware, etc. JC – In this sector, who are no-wine participants?DB- I can mention Russian vodka companies……JC – Companies as Pernod-Ricard?DB – Absolutely, Pernod-Ricard is one of the big exhibitors in the Fair.JC – Seagrams…?DB – It has not been a product with a big exposure in the Fair, but it does have a great acceptance here in Miami.JC – In the gourmet world, what kind of products are showcased?DB – Five years ago I could have mentioned the name of all exhibitors, but today I am involved in the daily going. I can mention olive oil companies, canned products, meat products and cured hams. It is a small percentage of the total. JC – Do ham companies have begun to get in?DB – I know there have been hams in the Fair but I can’t say if they have come with the support of a specific community. For example, companies like Garcia Baquero have been present considering a huge participation.JC – For example, does Andalusia as region have a specific pavilion?DB – This year they do not have an official pavilion due to budgetary matters. They had it last year by means of Extenda and every year they are possible guests, though every year that doesn’t fit in their promotional program.JC- And what about Rioja?DB – Rioja had foreseen an important participation such as a 100-meter pavilion, but they have decided to wait this time around. They are not going to have any presence as an organization according to what they have announced. It has to do with last-minute changes in their budget.It has been a tough year, hasn’t it? But as you know Rioja has an important budget for the United States and they are doing fine. JC – What acclaim have European wines had in the American people? Do they mostly continue drinking Californian wines?DB - I am also an importer. I also have a boutique wine portfolio from family cellars and limited productions which I represent in the U.S. Imported wine consumption in the U.S. is rising every year such as Californian wine. But the imported one is growing faster. JC- Among the European wines, which of them are growing faster: French, Portuguese, Spanish?DB- Number one is Italy, speaking in terms of volume, and Australia is second even though Spain is growing about 26 to 30 percent on a yearly basis. The great success nowadays is Argentina, which is surpassing exports from Spain and Chile in the U.S. Argentina is number 4, trailing behind Italy, Australia and France, then come Chile and Spain. Things change if we refer to volume or dollars. Spain continues nearly as the world’s top producer and it is estimated that in 2012 it will topple Italy from the number-one spot.JC – How is the marketing of the Fair in Spain and in other countries faring?DB – All exhibitors’ sales from Spain and Latin America, including Portugal, are coordinated in Madrid. Iberwine and Emporio Ferial are based in Madrid with their offices and their staffs, and we share the work. They are in charge of the Iberian-American countries, while we take on the rest of the world.JC – Which wines or American cellars are present in the Fair?DB- As much as 80 percent of all cellars is boutique, small ones, generally mom-and-pops with productions of 200 to 300 hundred bottles. They are not huge corporations. These always have some presence as Pernod-Ricard, The Wine Group –which is the world’s third-largest group. Constellation cellars also…This is a real huge Fair, one of the biggest in the United States and definitely the biggest in Florida, but it has been possible thanks to the support of many small shows. JC – Where do you do the Fair?DB – At the Miami Beach Convention Center. We almost cover a 100,000-square-foot pavilion. JC – From the North American professional standpoint, how is your Fair considered as a ranking event?DB – You have to believe what I tell you or do some research of your own. When we began our fair it was because there were no real professional wine fairs and still there aren’t any. The United States is not just one country. It is more than 50 countries. Laws in each estate are different. Major distributors and importers in each estate are different. It is true that the huge companies are in the top estates, such as Southern Wine Spirits, The Charmer Group or Republic National, but they are companies that are present in 15 or 20 estates. But it is a different world in each market. That is why it is difficult to organize a fair and have people coming from all over the country. We are one of the few which has gotten that because we pay for trips and hotel accommodation for buyers, not all of them, but a group of about 200 that we consider as key importers and distributors. We invite them and organize meetings with our exhibitors, something that guarantees the success of the Fair.JC – As far as the media is concerned, do you use television, national press or just rely on the local media?DB – We really use all media, but we make a higher investment in public relations because it is a fair focused on one sector. The fair has a very tight budget and every year people are getting involved in the event.We do a massive local promotion for consumers inside Florida but it is more direct for the professional level.JC – How many professionals take part?DB – If we take a look at last year numbers, out 6,000 or 7,000 attendants, more than half of them are professionals, about 4,500 people. JC – In the event there are conferences and collateral actions. Who organizes them and which are the most important ones this year?DB – We prepare about a dozen seminars and tastings which are spaces offered to our main clients and exhibitors, but always playing with the new trends in the market. We look for the ideal balance to please our clients, having at the same time an ideal balance to please our clients.JC – Do you organize gourmet dinners or matchings? DB – We organize two or three dinners for exhibitors, buyers and also for consumers. It varies according to the sponsors and the market needs, but our fundamental focus remains on the fair and commerce. JC – Have you considered cigar and wine matching?DB – Many times we have talked about this issue. It has always been interesting for us but we have not developed the idea because it is a logistic problem as smoking is banned in any public place and it is always difficult. In the Convention Center, having air conditioning, there is no place to smoke. We have brought exhibitors, but only to show the products. JC- And what about the restaurant world?DB- We always have about 20 to 30 restaurants participating in the Fair. We consider them a great incentive for professionals and consumers. JC – What about the fair’s earnings?DB – It’s difficult to understand the business volume a fair like this generates because we can’t do follow-ups on all the attendants all year round. And perhaps a relationship that started in the fair doesn’t lead to a business volume until a couple of years later. However, we estimate some $20 million worth of revenues with the sale of some 300,000 cases of wine.JC – How many business meetings can be held?DB – We plan over 1,500 meetings.JC – Are they prearranged meetings?DB – It’s a combination because we have two kinds of events: those organized in a hotel that are usually one-on-one meetings; and the fair, where there’s no such thing as a meeting. In addition to that, there’s some sort of an hybrid that we conduct in which we guarantee all our exhibitors an array of meetings, depending on the number of square feet they have. That determined the amount of meetings they are entitled to. But, that obviously implies a small percentage of people attending the fair. JC- Is there any booth devoted to the promotion of ethnological gourmet travel?DB – Not as much as we’d like to. That’s just another field with a tremendous potential that should have a larger presence. I believe autonomous communities have their own budgets and they’re pretty well broken down into gourmet, travel, farming and foodstuffs, cheeses, wines and the like. A well-defined breakdown from a tourist promotional viewpoint.I hope to clinch that booth this year. I know it’s a tough year and yet we’ll have a larger fair than last year. This has come as sort of a surprise to us because the institutional support has endured major cutbacks. Nonetheless, most of the cellars we do business with have decided to show up regardless of their not counting on that support. But for the 2010 edition, I want to push the ethno-tourism sector even farther. I know the autonomous communities want to do it too, but sometimes they can’t find the right formula, they don’t know how they could come up with a budget for a thing like that.