Kentucky Senator Rand Paul wants you to drink Moldovan wine.
In a 2016 Waste Report about USAID, he wrote: "When considering a glass from abroad, you might try a Moldovan vintage."
This tiny country, nestled between Ukraine and Romania, is the smallest in Europe. It's a good bet most Americans have dim knowledge of it, to say nothing of its wine. Yet since 1992, the US has provided more than $1.5 billion in assistance to Moldova, pouring hundreds of millions of dollars into rebuilding their wine industry.
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The history of Moldova reads like a spy novel. During the 18th and 19th centuries, its wines were internationally prized, earning the affection of European bourgeoisie and nobility. But the country was a constant pawn of warring nations, changing rule nine times in two centuries. Still, the wine industry continued to provide livelihoods for thousands. Then came decades of Soviet occupation, and, in its chaotic aftermath, the US swooped in with funds and expertise to buttress an industry with a past that could support a democratic future.
Ancient viticulture meets Sovietization
In 1812, Russia annexed eastern Moldova. Recognizing the agricultural potential of its new province, the victors slapped taxes on imported wine and required new colonists to possess skills in farming or winemaking. Wine estates Vinaria din Vale, Purcari, Castel Mimi, and Vinuri de Comrat were born during this era — and still exist today. (The restored archives of Castel Mimi hold a bottle of the oldest wine in Moldova, from 1727.)
Early in the twentieth century, this eastern sector ping-ponged between Romania and the Soviet Union until finally it became the Moldovan Soviet Socialist Republic (MSSR) in 1944. Sovietization and collectivization radically altering the Moldovan wine landscape.
The Soviets recognized wine as a prestige product, a means to elevate their global achievements and standards of living among citizens, but the emphasis was on high production, driven by politics and incentives without consideration for quality. Farming was mechanized, fertilizers and insecticides were introduced, and native varieties were removed to make way for noble grapes. Volume rose dramatically. By 1983, the MSSR produced a quarter of the Soviets wine, making it the sixth-largest wine-producing country in the world.
Then, on December 25, 1991, Moldova declared its independence; the following day the Soviet Union ceased to exist. At that time, the tiny country's population hovered around 4 million. Agriculture and food production, including wine, was nearly half of its gross domestic product, employing 50 percent of the active labor force. The Soviet collapse resulted in Moldova losing its primary agricultural export market overnight.
Privatization's bumpy road
Its economy now in a tailspin, Moldova turned to the International Monetary Fund for help. Aid is rarely without strings, and in this case that included land privatization, an extremely controversial proposition for a collectivized country.
Hello USAID.
The United States Agency for International Development seized the opportunity to influence a former Soviet nation, and to "promote [a] resilient, democratic societ[y] while advancing [US] security and prosperity… by strengthening Moldova's democratic governance and economic growth." USAID offered a multi-million-dollar investment in Moldova — with heavy focus on rebuilding their wine industry — through an $11 million program that encouraged privatization as a means to free-market reform. The effort redistributed a million acres of land among 4 million beneficiaries, but it was woefully administered. Land went to recipients without consideration of the type of agriculture it could support, or the skills or interests of the new landowners.
Unsurprisingly, wine productivity plummeted. Existing wineries quickly realized they needed to purchase their own land back from grantees, but convincing them to sell proved challenging. Resolving land distribution obstacles took more than a decade.
By 2005, things were beginning to improve, and USAID initiated another ten-year program designed to amplify Moldova's private sector enterprise in the global market, including the European Union, hoping to stimulate economic growth and create better paying jobs.
US foreign investments typically avoid alcohol programs, but the scope of the potential impact on Moldova led to this exception. Caroline Gilby, MW, notes in her book, The Wines of Bulgaria, Romania, and Moldova, "Wine is of significant importance to the Moldovan economy because it is one of the only products exported with its full value chain completed in the country, and high employability in rural areas."
Russia had held onto its thirst for Moldovan wines, and by March 2006 was still its largest export market. Once again that shifted nearly overnight when the Russian Federation embargoed the wines, citing health problems from bad lots. It was broadly speculated, however, that the real reason for the embargo was Moldova's new free-trade agreement with the EU. "The situation is desperate in the industry right now. People are starving in the countryside. Apparently, they (Russian government) don't seem to understand the seriousness," Gilby writes, quoting a USAID wine sector expert. By the time Russia lifted the embargo ten months later, the Moldovan wine industry had reported a $180 million loss.
The embargo also exposed a bigger issue. After decades of catering to the Russian palate, few other markets were showing strong interest in the semi-sweet style that was Moldova's specialty. Even with support from the US, the EU, and other private agencies, failure to diversify its export market proved debilitating.
Moldova's wine industry needed an overhaul and a fresh perspective. A team of international wine experts was brought in by USAID to establish short- and long-term objectives to improve enology and viticulture while stamping out systemic corruption and bureaucratic red tape.
Decades of collectivization had led to fiercely independent producers who found working together to improve the industry to be slow progress — but progress nonetheless.
By 2011, taking a risk to prove a point, USAID convened a blind tasting. The event brought together global wine experts and local wine professionals to pit Moldovan wines against international examples in the same price categories.
The results? "The rest of the world outperformed Moldova across the board," notes Gilby. There was still much work to do.
In 2013, to aid the local government's sweeping reform and encourage exports to European Union countries, USAID stepped in to help develop a national brand, Wine of Moldova. Moldova's National Office of Vine and Wine (ONVV), the public face promoting the country's industry, was launched the following year, and Wine of Moldova Academy was created to bring in global experts to assist with industry training. The ONVV also supports local producers who want to travel abroad for continuing education.
Gheorghe Arpentin, the current director of ONVV, reports that continued investment from USAID has also been crucial in the efforts to raise quality. Today, 30 percent of vineyard area has been modernized with an eye toward quality wine production, with parallel measures being taken in wineries. The combined total investment has been $600 million in just the past ten years.
The Moldovan paradox: long history, short present
Recognizing what he calls the "Moldovan paradox – a country of wine, but not sommeliers", Moldovan sommelier Mihail Druta, with assistance from USAID, established the Sommelier Association in Moldova in 2011, with the mission of cultivating wine enjoyment in keeping with the standards of the European community while developing and educating future sommeliers.
He also founded INVINO Enoteca, in the Moldovan capital of Chisinau. It's a modern wine bar for enthusiasts, collectors, and tourists to discover the best Moldovan wines in a casual setting.
The European Investment Bank pledged hefty financial assistance in the establishment of Protected Geographical Indication regions (in line with EU regulations). Four regions were identified, three PGIs were named — Codru, Stefan Voda, and Valul lui Traian.
Currently, in a hangover from the Soviet era, international grapes occupy the lion's share of plantings, with indigenous grapes comprising only five percent. "There are many success stories of regions adopting international grapes," explains Druta, "of course, our future is in our local grape varieties, we need to find our signature grape of Moldova."
Vlada Vutcarau, co-proprietor of ATU Winery, a boutique urban winery, explains, "The focus is slowly shifting to local varieties because export markets want to taste and know Moldova, this cannot be done through Cabernet."
Moldova's indigenous white grapes include the ancient Feteasca Alba, offering delicate floral notes in a light and fresh body, and the semi-aromatic Feteasca Regala, with floral, citrus, and orchard elements in a full-bodied, textural wine.
Native red grapes include Feteasca Neagra, full of dark berries and spice, with smooth tannins, and the ancient Rara Neagra, with hints of fresh and dried fruit, spice, and vanilla with a soft mouth-feel. Whether crafted in a blend, or single variety, each of these grapes holds something familiar, yet unique.
The nine-member Small Wineries Association, created through USAID in 2008, is today responsible for producing some of the best wines in the country. Ile Gogu, proprietor and winemaker at Gogu Winery, makes an elegant and crisp Blanc de Merlot and next level Rosé of Cabernet Sauvignon that is fresh, light, and fruity. Owners of Equinox and Et Cetera learned winemaking abroad, but returned to Moldova to produce their high-quality wines.
Still, quality remains uneven. Viticulture remains a work in progress, with winemaking a sliding scale from exceptional to excessive oak to simply poor quality. USAID continues to pump money into the entire enterprise, with some current programs ongoing through 2029.
Looking to the future
Collaboration and diversifying exports resulted in record sales in 2019. China is Moldova's fourth-largest and fastest-growing export market, an interesting and perhaps unintended consequence of US aid.
Exports to the American market still represent a tiny percentage – only 2.5 percent of bottled wine in 2018, but ONVV director Arpentin is optimistic, hoping that "as US awareness grows, so will exports".
"Moldova is a country with a strong tradition of winemaking, now and with a promising future," Arpentin says. "We would like Americans to see us as one more undiscovered wine country, hidden for so long in the shadows of bigger countries."
