Mendoza R ETROSPECT I V E ( )

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Mendoza FIVE YEARS R ETROSPECT I V E (201 4-2018)

M ENDOZ A 2 01 4 SusanaBalboWines @sbalbowines HARVEST 2014 Another cold year! THE NEW CHACAYES MALBEC Compared with the 2013 vintage, annual grape production fell by 8%. The 2014 harvest didn t take longer than the one in 2013. The 2013 harvest was the coldest we experienced since the founding of the winery in 1999, with similar temperatures to that of 2001. After the warm and dry months of December and January, the cold weather during February, March and April, along with the rain that fell during harvest season, set defining characteristics for the different Mendocinian terroirs. It is important to draw special attention to these terroirs in order to completely understand them. Here, the level of detail and precision during harvest is fundamental for the definition of quality. (See below regarding the differences between different terroir units, such as Gualtallary North vs Gualtallary West.) Late terroirs like Altamira, optimal for medium or long cycle varieties, such as Malbec and Cabernet, are an example of the aforementioned. These terroirs do not stand out when used for short cycle varieties (e.g. Syrah with good sanitary conditions or moderate yields), or when compared with early terroirs such as that found in Vista Flores. The crop level also varied depending on the area: lower than normal in the North and East of Mendoza, average in the center and slightly higher than the average in the area surrounding the Mendoza River and Uco Valley (e.g. as relates to Malbec and other red varieties). In any case, the grapes that excelled the most were Malbec from the highlands of the Uco Valley (especially from the Gualtallary and High Tunuyán River lands, such as Vista Flores and Chacayes). Our Harvest The 2014 harvest started on February 27th at the Alluvia Estate located in Gualtallary with our Pinot Noir. Harvest ended on April 30th, a week earlier than in 2013, with the Cabernet Sauvignon from the Presidente Estate, located in Los Árboles, Tunuyán. White varieties were able to overcome the disparate weather conditions since they primarily came from the regions of Gualtallary, Los Árboles and Vista Flores in the Uco Valley. This area is well-known for its stony-sandy soils that allow adequate water drainage. A fresh white wine with citrus, mineral and floral notes was the ending result. In cool areas, terroirs with stony soils that allow for early ripening have their own fingerprints in certain vintages, as was found in 2014. For example: North-East Gualtallary vs. South-West Gualtallary: while the first area excels due to the calcareous components found in its soil profile (resulting in red fruit notes with a marked mineral accent), the second region is characterized for its black fruit and violet notes.

MENDOZA 2015 HARVEST 2015 Another cool vintage GRE AT MALBECS FROM EX CEP T I ONAL T ERROIRS We can define the 2015 harvest as being a very challenging one, where the mission was to rely only on the very best vineyards in order to make the finest wines. The growing cycle of 2014-2015 took place earlier compared to the historical average, with a 1-week-to-10-day window where a nice and homogeneous budbreak occurred. The maximum and minimum diurnal temperature swings during the warmest months were lower than the historic average, making 2015 the fourth consecutive cooler-than-normal harvest (the last warm harvest within Mendoza was in 2012). The spring season started dry, but gave way to huge rainfall later in the summer, especially during the months of January, February and the first quarter of March. During February, the rainfall reached its peak. If we take into account the budbreak-to-harvest period (October-April), rains were 30% over the historic average in most of the regions. In regions with heavy clay soils, rot problems were also more significant. Exceptional sites like those in the Upper Uco Valley produced fine wines with remarkable balance, showing consistency through the time. In 2015, the main activity for viticulturists, producers and winemakers was to separate the best plots. Dense soil regions like La Consulta, Eugenio Bustos, the lower parts of Vista Flores, Agrelo and Perdriel, the center of Tunuyán and Tupungato had more problems. 2015 was definitely not a good year for Cabernet Sauvignon. This variety produced wines that were not too intense in color, and with an absence of character. Malbecs from different regions like Gualtallary, Los Chacayes, Altamira, Los Árboles and some vineyards from El Peral, along with the high regions from Agrelo, were highlighted. For the wines coming from our very top terroirs, we expect wines with austere tannins, a more delineated structure, great acidity and long ageing potential.

MENDOZA 2016 HARVEST 2016 Challenging year but with amazing wines MALBEC AND CABERNET FRANC FROM UCO VALLEY, HIGHLIGHTED The 2016 harvest will be remembered by all who produce wines as being perhaps the most challenging in the last two decades, as it was one of the coolest and, at the same time, one of the scarcest in the last 60 years. With the presence of El Niño, many believed that 2016 would be like 1998 but, thankfully, it wasn t. Thanks to optimal vineyard management, vines weren t affected by rot as they were in that year. Harvest was the lowest since 1992, which took a big hit on the 4th of November when 50% of the production was washed away by a terrible frost. In 2012, we picked 19.4 million quintals whereas in 2016 we reached a total production of only 17.4 million quintals. This harvest has broken the mold -I like to quote it like that - due to the weather conditions (cold and wet), and therefore the 2016 harvest cannot be compared with any other in the last 3 decades. Even though it wasn t an easy harvest, however, in many appellations, as we like to call them, we picked textbook grapes. If Mendoza is known for wines with a good balance (that is: balance between natural acidity, lower levels of alcohol and an appropriate phenolic maturity), then this was the year! It was a defying harvest, but this fact didn t stop us from producing some amazing wines, although the volume will be very tiny. At Dominio del Plata we were able to ferment grapes with the same, or even healthier, quality than in 2015, which was a difficult year as well. The impact of the climate on the phenological phases Post-harvest in 2015, one of the driest winters on record occurred. The 2015 season started with a cold and humid spring in most of the regions. Rainfall in September and November stayed below the historical average registered during 1981-2010. November rebalanced to the historical average, and by the end of December-to-mid-April 2016, we had lower maximum, medium and minimum temperature records, with more rains than the historical average for these months. This hydric situation caused a delay in every phenological phase of the vine by about 20 days: from budbreak, to flowering, blossom, veraison and all the way to the harvest. The phenology never caught up, resulting in a 2016 harvest that, depending on the region, was up to 3 weeks later than normal and occurred in a much shorter window. It was remarkable to see veraison in cold regions like Gualtallary and Altamira within the Uco Valley. This particular cycle of the vine occurred by the end of February, when normally it happens between mid-january or at the end of that month.

MENDOZA 2016 For those who love working with bioclimatic data, we emphasize that this was a Burgundian year because of the bioclimatic rates (heat summation), which are very typical from a cold region like Burgundy (region W I), instead of a warmer one (W II or III). During September (when flower bloom is about to occurr), we had the first late frosts, which depending on the region and varieties, caused a significant decrease in flowering from about 20% to 50%. It was easily noticeable that Malbec vineyards from the Uco Valley with an average production of 2,5 to 4 tons per hectare exhibited the same cold effect suffered by some Chardonnay vines, reducing its overall productive potential. The eastern region of Mendoza was the most affected. Not only top quality grapes but also bulk-grapes (known as cerezas and criollas ) suffered a considerable decrease in production from about 40% to 50%. Fortunately the weather was cooler in March and April, and drier than in January and February. The 27th of March received an unusual zonda wind that raised the maximum temperature up to 32-34 C, depending on the specific region, driving down humidity levels to 20% and giving us the chance to bring our best grapes to the winery. Thus, the 2016 harvest started almost 3 weeks later and ended one week earlier than usual. Snowfall, which occurred by the end of April (on the 24th and 25th at the Upper Uco Valley), marked the end of the harvest in a natural way (where the most intelligent grape growers picked everything one week before that defining moment happened). Regions and grapes which excelled in the harvest This was a harvest where the top sites were highlighted. In regions with stony and sandy soils, like many of the Uco Valley, the quality of the grapes was amazing. I would like to highlight Los Chacayes because it is the warmest place within the region and its fruit was able to ripen perfectly well. Gualtallary, as always, stands out for its indomitable spirit, giving fresh, austere, linear and very elegant wines. If we speak to the varietal wines, the Malbec from Uco Valley stands out as well as the Cabernet Franc.

MENDOZA 2017 HARVEST 2017 Warming & Dry A CLASSIC ME NDOZA S VINTAGE If 2016 wasn t enough to be the shortest vintage in the last 60 years, this 2017 has been the 2nd shortest harvest, considering the yields mainly in Uco Valley appellations. Just above 1, 95 million of tons. harvested along all the winegrowing areas, it surpassed in 12% the 1,74 million of tons harvested in the previous one. The main contributing factors for another short vintage Malbecs of 2-3 tons x hectare were a common picture of a high quality - low yielding harvest. In the Uco Valley, mainly above 1000 meters (3000 feet) elevation, the variety suffered an unexpected drop, even below the 2016 crop level. Malbec is well known for being a susceptible variety to coulure or millerandage, mainly when weather conditions are special, like a cold spring or strong winds during the flowering period. We registered a frost at the end of September (the 28th.) that affected severally the chardonnays because they were at the beginning of the budbreak. Malbecs were in dormancy, but they were also affected. Even though these events, our observation indicates that the cold spring in 2015 was also responsible for the low yields in 2017, because during the cluster formation (happened during the spring and summer of 2015), temperatures dropped until 3 to 5 degrees below the average, affecting the cluster size and weight. 2016 winter and spring were cold and dry, which allowed almost general frosts. Veraison occurred almost 10 days in advance, compared with the 2015-2016 season. It was a very particular veraison: the longest I ve ever seen in 25 years. If usually demands 7 to 10 days, veraison this time took 20 to 30 days from beginning to the end. Then, harvest came 10 days earlier and winemakers decided to pick the grapes to have a fresh vintage. At SBW we started to pick 2 weeks before the normal. Our fresh rosé program began in middle February, with beautiful acidity and noticeable fruit expression. We followed then with our white varieties in the Uco Valley and finally we reached the red varieties at the beginning of March.

MENDOZA 2017 Whereas January and February were warm and dry, March and April were colder, letting us to make very interesting wines. In some regions, sugar levels stop growing and winemakers decided to not to wait anymore. We finished our vintage 20 days before the average date and just before the rains. The red wines have a great concentration, bright and intense colours, noticeable acidity, low ph and delicate and strong fruit expression. It was definitely a vintage of fruit and sun, with natural fresh acidity.

M ENDOZ A 2 01 8 SusanaBalboWines @sbalbowines HARVEST 2018 A great year for a concentrated harvest The winter of 2017 was very temperate and dry, the cold was not at all drastic, with few storms and some snowfall, especially in the highest areas of the Uco Valley. Spring followed the same course, with very pleasant temperatures and a stable, dry climate, until on October 13 frosts arrived, especially in the lower areas of each region. In the Uco Valley, the lowest temperatures occurred in the south, where the minimum reached -4 degrees Celsius (El Cepillo), but there were also frosts with milder subzero temperatures in La Consulta, Altamira, Vista Flores, Los Chacayes, San Pablo and the low areas of Tupungato like El Zampal. In Gualtallary there were also low temperatures, but the effect of the cold was not fully appreciated until weeks later. The budding until then was looking very consistent and complete, of great quality, promising a year of better production that would allow us to recover from the meager harvests of 2016 and 2017. Then came more cold days, especially in the early hours of October 21 and November 18. There were some places where the buds fought the cold, as in Altamira and San Pablo. In low sectors of Gualtallary we observed some plants with all their buds frozen after the night of November 18th. We also saw hot days (some with temperatures between 30 and 35 degrees Celsius) between the end of October and the beginning of November, alternated with cold days. This alternation caused different stimuli in the plants which manifested in irregular growth, emission of secondary buds (tendrils) with the main shoot still small, and shifts of the phenological stages. In some vineyards the plants grew unevenly, with some to normal size and others staying small, with the development of somewhat uneven shoots. Plants with buds without apical dominance, full of thin or withered tendrils, with poor clusters... products of buds that suffered low temperatures. In the upper part of Gualtallary, above 1400 meters of altitude, both the Malbec and the Cabernet Franc flourished between November 22 and 28, finishing their flowering at the beginning of December. In the Uco Valley in general, flowering and settling occurred on a normal date. The month of January was warm and dry, while February was very hot and with rainfall below average leading some vineyards in different areas of the Uco Valley to manifest symptoms of premature stress.

M ENDOZA 2 01 8 SusanaBalboWines @sbalbowines March arrived with lower temperatures, adjusting to historical averages and allowing the plants to relax from the February heat. The very good vineyards were very healthy, with a very low level of preventive treatments against diseases such as peronóspera and powdery mildew (including some plants which needed no treatment at all!) We finally arrived at the harvest, which, apart from being early, was also concentrated in terms of time. That is, it began almost on a normal date in most areas, but as the ripening progressed, it did so in the main varieties at the same time and without discrimination by region. Areas of the Uco Valley that are typically later matured at the same time as some in Lujan de Cuyo or Maipú. From the third week of March, the sugar maturity began to increase rapidly, at the same time that the acidity began a precipitous fall. The early morning of March 25 surprised several areas of the Uco Valley with a frost - mainly in the lower areas such as El Cepillo, La Consulta and Eugenio Bustos in San Carlos, slightly attenuated in Altamira and Vista Flores, and almost irrelevant in the rest of the zones, including in Lujan de Cuyo (low parts of Agrelo and Perdriel). The end of the harvest, which should have naturally occurred no later than mid-april, ended up finishing as it usually does at the end of April (with several wineries still harvesting the first days of May), with overripe grapes, no acidity and with very high potential alcohol levels. We could conclude that the 2018 harvest will be remembered as a warm and dry harvest, where the production levels recovered with respect to the previous two years. The quality of the grapes was outstanding, as long as we take into account those grapes harvested within the normal timeframe. Since the ripening was concentrated between the third week of March and the first week of April, the quality of the wines from grapes that arrived later could be irregular, with high alcohol and unbalanced acidity. There will be very good wines in most regions. The quality will depend this year, above all, on the accuracy of the moment of harvest by each producer or winery.