Wine Business Blog Wine Business Follow us on Twitter Wine Business Blog RSS Subscribe to Wine Business Blog by Email Wine Industry Blogs Wine Industry Classifieds Wine Industry Events Wine News Archives Wine People News Vineyard Weather Wine Jobs
Thursday, September 22, 2016
September 22, 2016 | 11:53 AM

Next week marks the 25th Wine Industry Financial Symposium, which from the beginning has had strong support from the banks. A lot has changed in that time, whether one is talking about the structure of leading U.S. wine companies, distributors, retailers or consumer taste and style preferences. In the early 1990s, wine coolers were fading, large format wines were growing and blush blends, aka white zinfandel, accounted for nearly a quarter of California wine shipments. The charts below show California table wine shipments in 1993 compared to 2013. Red blends now represent 6 percent of California table wine shipments.

Mergers and Acquisitions will be one of the most discussed topics during the symposium, as there have been dozens of significant transactions in the past eighteen months. Dominant wine companies such as Constellation, Jackson Family Wines, E&J Gallo, and The Wine Group have acquired premium wine brands while a second tier of mid-sized wine companies has been quite active.

The intention behind many of the acquisitions is to spread distribution nationally and to grow the brands but not a lot of vineyards typically go with these brand acquisitions. Wineries are eager to ensure supply sources to grow their newly-acquired brands and control pricing so there are many recent examples of them buying vineyards too.

Silverado Group chairman David Freed’s presentation during the symposium builds toward the conclusion that there may not be enough premium grapes to meet demand for some of the labels that wine companies have been acquiring and growing.

“From a pure economics-101, supply-and-demand perspective, there’s no way we can keep up with the explosive demand for some of the blended red brands,” Freed told winebusiness.com. “I don’t know where the grapes are going to come from."

One of the factors at play: There isn’t a lot of growth in wine grape acreage along California’s Central Coast or North Coast while vineyard acreage in the Central Valley is decreasing.

Another factor: Freed noted that for a while that shortfall in new acreage was being made up in part with higher yields from existing acreage, replanting, changing trellising systems, etc. Data shows yields have leveled off, however, so that the solution of increasing the productivity of California’s roughly 550,000 vineyard acres to meet burgeoning demand is no longer going to have a big impact.


California traditionally experiences supply cycles every few years: demand goes up, leading to vineyard planting and then over-planting, resulting in oversupply, causing planting to stop. Then the cycle begins again when demand picks up. The cycle seems to have stalled out at this point, though because there’s been little new vineyard planting – the overplanting isn’t happening.

Imports as a percentage of wine consumption have grown from about 25 percent of the market to about a third of it, and traditionally compete with wines sourced from California’s Central Valley. With growth in wine sales moving up market, though, will imports become competitive with wines sourced from the Central Coast?

Freed said the industry isn’t there yet but that he wonders where some of the large brands will go if they can’t meet demand with grapes from the Central Coast.

 

Monday, September 12, 2016
September 12, 2016 | 4:10 PM

In this video, the late Professor Emeritus Ralph Kunkee, an expert on the role of yeast in winemaking, interviews UC Davis Professor of Enology, Emeritus Vernon Singleton, who passed away last month. The interview was conducted in 2001. Vern talks about his childhood up through his career at UC Davis.

Wednesday, August 31, 2016
August 31, 2016 | 10:59 AM

Treasury Wine Estates responds to this story 

Treasury Wine Estates said in a statement it is “fully complying with state and federal laws in relation to the development, marketing and sale of this brand in the US” and hopes the “matter will be resolved.”

The Stag, and “imagery of this creature, has been associated with the historic St Huberts winemaker in Australia since 1862,” according to the statement from Australia. In June, the company introduced new wines in Australia under the “refreshed” brand: The Stag Chardonnay and The Stag Shiraz.

Wines produced in the United States under The Stag brand are from different wineries, according to the company.

The Stag wine “has been produced across a number of TWE’s facilities – not just specifically Stags’ Leap,” Barry Sheridan, vice president of marketing, Americas for Treasury Wine Estates, said in separate statement.

 

Tuesday, August 30, 2016
by Cyril Penn | August 30, 2016 | 12:00 PM

As the 2016 wine grape harvest gets underway, a new 57,000 square foot custom crush facility is opening in the northern part of Sonoma Valley just outside of Santa Rosa, specifically designed with the small, hands-on winemaker in mind. The facility, still under construction, will process an easily manageable 450 or 500 tons this fall, though its use permit allows for 125,000 cases, or about 2,000 tons.

The project was just an idea 20 months ago, building permits were issued seven months ago, and the facility – abuzz with activity - is already processing Sauvignon Blanc. It's organized chaos.

Sugarloaf Crush is specifically designed to handle small lot fermentations with some of the latest equipment: A Bucher Vaslin Oscillys press, an optical sorter, small-lot concrete-stainless steel tanks, multiple membrane presses, and for one client - oak fermenters, along with three separate temperature controlled barrel rooms.

General Manager and Winemaker Ronald Du Preez, (left) previously with Jordan Vineyards & Winery joined Sugarloaf Crush in March. He’s been in the custom crush business since 2012 and studied viticulture and enology at Stellenbosh University in South Africa. The 10,000 hectoliter Bucher press at Sugarloaf Crush is the same model Du Preez worked with at Jordan for 12 years, simple, easy to work, and capable of handling whole clusters in batches of 8 or 10 tons.

To be ready for the 2016 crush, contractors focused considerable attention on creating a covered crush-pad outside of the main building. Eventually the tanks will move inside.

Outside sit 10 open-top tanks, ideal for 3.5 to 5.5 ton lots, that can be picked up with a forklift. Next to them are another 10 specially designed custom hybrid open top tanks with 36” doors on top that swing open for punch downs. Du Preez worked with Santa Rosa Stainless Steel and custom designed the tanks. The hybrid tanks can be used for Pinot Noir, and work well for cold soaks. They’re good for pump-overs with Cabernet Sauvignon too. With the tops down, they can be pressurized so work for storage, blending or for filtering before bottling. Next year, the winery will likely add a pneumatic punch-down device.

The building is designed with built-in flexibility specific for the custom crush industry. A huge cold room can keep a couple of trucks of fruit in storage at 40 degrees if unexpected equipment issues ever cause a delay. Tanks connect to a heating and cooling system with spring loaded ball valves, not solenoid valves, so they automatically close yet can be manually opened in the event of a system failure.

“In this business, there are no mistakes,” De Preez said. “There cannot be mistakes – so you always have to be 100 percent perfect.”

All of the tanks in the winery will eventually be connected through Tank Net. The vision is for the winery to be completely accessible. Clients will have access the status of their lots via their phones. Sugarloaf Ridge went with InnoVint wine cellar management software (see Product Review: Cellar Management Software, WBM, February 2016). 

There will be a bottling area in the future – for now, clients are working with mobile lines.

Sugarloaf Crush has a 5-ton minimum.

What makes Sugarloaf Ridge truly unique, according to De Preez, is that a second construction phase will include hospitality facilities with a licensed kitchen so custom crush clients can entertain. The winery is permitted to host up to 20 events per year.

Custom crush capacity is increasingly difficult to find, in part because big wineries - one from Modesto in particular - have been buying it up (see "Will Custom Crush Prices Increase?" in the February 2016 Wine Business Monthly and WBM’s Directory: Custom Crush Facilities, June 2014).

“A custom crush business looked like a good business and a bunch of things fell together. We found a piece of land, we found Ronald, the investors, a bank, a general contractor, the subs, and found the clients,” Sugarloaf Crush founder Joe Reynoso said. “It was a piece of cake,” he quipped. “57,000 square feet in Sonoma County? Anybody could do that.”

 

August 30, 2016 | 7:08 AM

via Kay Bogart, Program Director V&E Extension – Department of Viticulture & Enology, UC Davis

Invitation to a Memorial Service for Prof. Emeritus Vernon Singleton

UC Davis V&E has lost a prominent member of our family. Prof. Emeritus Vernon Singleton passed away last Friday, surrounded by Kay, his wife of 69 years, and his children. We will miss him as a true scholar, teacher, colleague, and friend. He contributed so much to the department and to the global wine industry from his trailblazing research on phenolic chemistry and wine aging to his textbooks that are still used throughout the world today educating future generations of wine professionals.

The department and Prof. Singleton’s family will be hosting a gathering on campus on Saturday, September 10 to celebrate Vernon’s life and career. Here are the details:

Saturday, September 10, 2016
11:00 am to 12:30 pm
UC Davis Conference Center
550 Alumni Lane
Davis, CA 95616

Immediately following the program, there will be a reception and lunch in the Conference Center from 12:30 pm to 2:30 pm. All are invited to join, though it’s important that you register at this link for our planning:

REGISTRATION LINK:
Memorial Service for Prof. Emeritus Vernon Singleton

Directions to the Conference Center can be found here:
https://cru.ucdavis.edu/content/339-location-amp-contact.htm

Parking is free on weekends. The large parking structure is across the street from to the Conference Center, east of the brand new JanShrem and Maria Manetti Shrem Museum of Art. Using 550 Alumni Lane on Google Maps, all parking near the Conference Center is clearly marked.

We are hoping to collect stories, photos and videos of Vern to share with his family during and after the program. If you have ones that you would like to share, they can be emailed to venchair@ucdavis.edu.

In lieu of flowers, the family has requested that donations be made to Yolo Hospice (
http://yolohospice.org/support-us/make-a-donation/) or to the Vernon Singleton Memorial Scholarship Fund in the Department of Viticulture and Enology at UC Davis. For the latter, checks can be made out to the UC Regents and addressed to:

Prof. David Block
Vernon Singleton Memorial Scholarship Fund
Department of Viticulture and Enology
University of California
595 Hilgard Lane
Davis, CA 95616

NOTE: Remember, please, given the short notice, it’s important that you register at the link above for our organizational efforts, so we can accommodate everyone. Kay

Sunday, August 28, 2016
August 28, 2016 | 7:00 PM

UC Davis Professor of Enology, Emeritus Vernon Singleton died on Friday, August 26, 2016. 

Singleton and his understanding of grape and wine phenolic chemistry were highly influential. Dr. Singleton published 214 works over four decades, greatly improving knowledge of wine and plant phenolics. 

Dr. Singleton retired in 1991, continuing to consult with industry organizations, students and fellow scientists; reviewing books and papers; and occasionally presenting papers, including 'Barrels for Wine, Usage and Significance' p. 4-9 in Proc. Symp. Oak from Forest to Glass, 15-16 July 1999, ASEV/ES ST. Louis, MO

The American Society for Enology and Viticulture honored Dr. Singleton in 2007 at a phenolics symposium following the Unified Grape & Wine Symposium with eight internationally known phenolics experts, each in some way connected to Singleton, using aspects of his work as a springboard for discussion. 

Singleton was inducted into the Vintners Hall of Fame in 2011: 

From the Vintner's Hall of Fame: 

An expert on wine chemistry, Professor Singleton spent more than four decades in the UC Davis Department of Viticulture and Enology, retiring in 1991. He published more than 220 papers and four books. Wine: An Introduction for Americans, co-authored with Maynard Amerine, remains among the most widely read books of its kind, even decades after its last printing. Principles and Practices of Winemaking,co-authored with three UC Davis colleagues, is a textbook used worldwide. Professor Singleton is best known for his identification, characterization and transformation of the many phenolic substances in wine, including tannins. He also studied the contributions of barrel aging to wine phenolic composition and the role of oxygen in wine maturation.

We will have more information as it becomes available. 

 

Wednesday, August 3, 2016
August 3, 2016 | 1:55 PM

Harvest has started in Sonoma County as reported by Chris Cottrell, who told us that he harvested Chardonnay in Sonoma today for his Under The Wire Sparkling project.

"The vineyard is Vendemmia, or as we call it, 'Chuy.' The Chardonnay is at a 1,000 feet in the Moon Mountain AVA off Nelligan Road. As with all Under The Wire wines, this will be made into a single vineyard, sparkling wine via methode champenoise," said Cottrell, partner at Bedrock Wine Co. and Co-Founder/Owner of Under the Wire.

Happy Harvest!

 

Monday, August 1, 2016
August 1, 2016 | 2:30 PM

Wine Business Monthly's August 2016 digital edition is now available.

Inside August 2016 you will find:

Recent Research: Yeast

-Yeast of a Different Breed

-Can Vineyard or Inoculated Yeasts Overcome Those in a Winery?

-Winemaker Trials: Daou Vineyards Develops a Custom Yeast to Allow for Better Aging and Drinking

Plus:

New Developments in Vineyard Mechanization and Precision Management

Winemaker Business Decisions: Becoming a Part of the Oregon Wine Business

Industry Roundtable: Getting the Message Out
How do you effectively market wines from a great, but lesser-known, wine region?

 

Click here to subscribe to the print version of WBM. Click here to view all digital editions of WBM, including August.

 

Thursday, July 28, 2016
July 28, 2016 | 1:18 PM

Selected Recent Sales of Grapes & Wines in Bulk for July 27, 2016 courtesy of Turrentine Brokerage:

Bulk Wine

Pinot Noir 2015 wine, Lake County, 4,000 gallons at $14.00 per gallon

Merlot 2015 wine, Lodi, 4,900 gallons at $5.00 per gallon

Pinot Noir 2015 wine, Monterey County, 3,300 gallons at $18.00 per gallon

Petit Verdot 2015 wine, Paso Robles, 6,100 gallons at $13.00 per gallon


Grapes

Merlot 2016 grapes, Oak Knoll District, 15 tons at $3,500.00 per ton

Barbera 2016 grapes, Paso Robles, 10 tons at $1,600.00 per ton
 

Sunday, July 17, 2016
by Kerana Todorov | July 17, 2016 | 7:30 PM
Tim Mondavi, front, wearing a white shirt, speaks to a guest during the 50th Anniversary of Robert Mondavi Winery. The late Robert Mondavi started the business with a modest loan. "My father was able to make great things happen out of nothing - other than great spirit," Tim Mondavi said Saturday.

 

Hundreds of visitors came to Oakville Saturday to celebrate Robert Mondavi Winery’s 50th anniversary with wine, food, music and cheers.

The festivities, which drew an estimated 2000 people, included a special event for dozens of present and former employees and other guests.

Speakers recalled the contribution of the winery under founder Robert Mondavi in establishing the Napa Valley into a world-renowned wine region and introducing the American palate to fine wines.

“There was a great spirit that brought this place to life and brought California wine to life from a time that was very quiet,” said Tim Mondavi, who was 15 when his late father Robert Mondavi founded the winery next to To Kalon Vineyard.

His older brother, Michael, would slow down traffic and invite visitors to tour the winery. Michael Mondavi drew laughs from the crowd gathered at the Vineyard Room when he recalled how his father had listed his “wife, three children and clothes” as assets before managing to obtain a loan to break ground. “We were not bankable back then,” he said.

U.S. Rep. Mike Thompson, D-Calif., and Napa County Supervisor Diane Dillon, were both teenagers in the Napa Valley on July 16, 1966, when the ground breaking of the future Robert Mondavi Winery took place.

On Saturday, Thompson saluted the employees, past and present, and the Mondavi family, including Robert Mondavi’s wife, Margrit.

“Robert Mondavi did so much for our valley,” said Thompson who presented the winery’s general manager, Glenn Workman, with a framed copy of his remarks he read into the record on the floor of the U.S. House of Representatives on July 16. Thompson praised the winery for having achieved “great success in producing high quality wines and advancing the art of winemaking” and for having been “a notable leader in pioneering environmentally sustainable agricultural practices to preserve our valley’s land for future generations.”

Thompson on Saturday highlighted the contributions of past and present employees to the success of the winery. “Employees make or break you and there is no question that the Mondavi family understood that and Constellation is carrying on.” Constellation Brands Inc. has owned the winery since 2004.

Dillon presented Workman with a copy of a proclamation that will be read at the next Board of Supervisors meeting on Tuesday.

She noted the winery opened two years before the establishment of the agricultural preserve to protect the valley from development. At the time, the valley risked being paved over like Santa Clara, said the supervisor. “In many ways, what happened here was a demonstration of what the valley could be.”

Genevieve Janssens, director of winemaking at Robert Mondavi Winery, raised a glass of Gamay Rosé to the present and former staff members before the festivities continued outside where music played and wine and food were served to the general public.

“The future of the Napa Valley is bright,” she said as people cheered.

Former employees gathered Saturday greeted one another. Many recalled Robert Mondavi as a great boss, one who would take time to thank the dishwasher at major diners, encouraged the staff to share ideas with other wineries and spur their entrepreneurial spirits, serve meals to the personnel in the vineyards to celebrate harvest and made sure they were well paid.

Employees at Robert Mondavi Winery were close, many said Saturday as they sipped ones and chatted in the Vineyard Room.

Nancy Jacobs, a former executive assistant at the winery from 1976 until 1992, when she left to work for author Danielle Steel, said the winery was the focus of employees’ lives.

“It was my social life. It was my business life,” she said. Having lost a father young and with her family still on the East Coast, Robert Mondavi was also like a parent, she added. He made sure employees were well paid.

One year, she was among 17 employees Mondavi flew to Europe to visit the wine world there. “It was an amazing experience,” she said. Going anywhere with “Mr. Mondavi” was always an experience, she added. “He had more energy than anybody.”

The 50th Anniversary Celebration tasting menu included 2014 Napa Valley Fume Blanc, 2015 Napa Valley Rose, 2013 Maestro, 2013 Napa Valley Cabernet Sauvignon, and 2014 Moscato D’Oro. River School World of Percussion and Ballet Folklorico el Valle were among the entertainers during the afternoon. Visitors also watched cooking demonstrations with Cindy Pawlcyn, Bob Hurley, Victor Scargle and Giovanni Guerrera.
 

Got a tip? Tell us
Authors
Search WB Blog
Recent Posts
Juicy Tales by Jo Diaz
Roses to Write Home About
The Daily Sip by Bottlenotes
5 Questions with Dennis Cakebread
A listing of all the blogs monitored by our editors on a daily basis.
Email your comments to blog@winebusiness.com