Malolactic fermentation is important in the process of wine making because it softens the harder, tart like lactic acid found in fermenting Grape Juice. Lactic acid is a fruit acid found in grapes. When this acid is fermented into this softer form (malolactic) wines are easier and more enjoyable to drink.
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Because unlike the missing "is" in your "Why is.." question, it is necessary for it to make sense. No fermentation = no ethanol. What is ethanol? The chemical name for alcohol. Can you imagine a drink with no tipsyness? You're probably underage then, wait till you're 18 or 21 if you live in an oppressive unfree country.