Wine: When most of the world seems to be producing samey wines, Chile is going its own way

CHILEAN wine is getting more expensive. A double whammy of increased domestic inflation, presently running at about 8 per cent and a savage exchange rate has hit its wine industry hard.

Factor in a rise in transport and energy costs, a fresh UK duty hike by our beloved Chancellor Alistair Darling and it's not surprising we are now experiencing slight price increases and a reduction in promotions. Despite this, we still drink more wine from Chile than any other country in the world. Wines of Chile estimates the overall market at around 9 million cases, fuelled by such brands as Concha y Toro, Isla Negra and Viña Maipo.

It's not difficult to see why. Above the £5 mark, Chile is producing some exceptional wines. This welcome development has been helped by an expansion into cooler regions that are producing wines with more mineral complexity, pure fruit and a lighter, leaner style. One producer that epitomises this move is Concha y Toro, whose Maycas del Limari and Casillero del Diablo brands are well worth seeking out. I recently caught up with its head winemaker Marcelo Papa, who was eulogising about a region close to my heart: the remote Limarí Valley, which sits around 400km north of Santiago. Less than a decade ago there was hardly any wine of note made in this semi-desert zone but Concha y Toro has invested heavily and the results are hitting our supermarkets with gusto.

Limarí is an area known for its spectacularly starry night skies, which means it shares its vineyards with some of the world's most expensive and powerful telescopes. The grapes grown here benefit from their proximity to the sea. The cool coastal breezes and the Camanchaca fog, which blankets the area every morning, help mediate the ripening process and give the wines their distinctive clean, mineral character.

Another superb producer Tabali, stocked by Bridge of Allan wine merchants WoodWinters, (01786 834894, www.woodwinters.com), possesses a pure character with thrilling acidity and delicate and subtle fruit, yet retaining their powerful and concentrated edge. Rival producer Tamaya is also worth looking out for.

The historians among you will note that the valley has been under cultivation for many years. It was an important source of moscatel grapes for the production of the spirit pisco and the sort of wine that ended up in boxes. In fine wine terms its secret lies in its outstanding terroir: warm days, cool nights, intense sunlight and decomposed granite soils. Importantly, the closeness of the ocean plays a vital part in delaying the ripening, enabling the wines to develop a distinctive mineral character.

Its chardonnay and pinot noir are increasingly making the headlines while some of the syrah rival anything produced in South America. What really excites about Limarí is that the wines have their own character and reflect a sense of place. Far too many regions have fallen into the trap of producing over-ripe, over-oaked wines that are high in alcohol, which has led to the globalisation and standardisation of wines.

As Tuscan winemaker Paolo De Marchi at Isole e Olena vineyard says: "Make wine of individual quality and the connoisseurs will come. It is the vineyard, not the wine maker, that is the star."

My advice would be if you see Limarí on the bottle, buy it.

Brut Reserva 2007, 12%, £9.99 Casillero del Diablo, Limari Valley, Concha y Toro, Chile

Light and fairly muted in style, my first thought was that it was a prosecco. It has an attractive appley character with nice acidity. Refreshing and subtle, this makes for a lighter aperitif.

Reserva Privada Sauvignon Blanc 2008, 13%, £10.49 Casillero del Diablo, Concha y Toro, Chile

Gloriously clean with a fresh, mineral character. The nose may surprise with its strong, vegetal notes. But underneath there are elements of fresh green nettles and green chilli pepper.

Reserva Chardonnay 2006, 14%, £12.49 Maycas del Limari, Concha y Toro, Chile

This is an outstanding wine. It has an opulent creamy, peachy richness but isn't over-blown. On the palate there is a mineral, zippy character reminiscent of chardonnays produced in Burgundy. It improves in the glass suggesting it would benefit from decanting.

Stockists: Majestic, Threshers, Waitrose