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 WINE BUSINESS MONTHLY
month in review February 2018 • Volume XXV No. 2

EDITOR
Cyril Penn
SENIOR TECHNICAL EDITOR
Curtis Phillips
MANAGING EDITOR

THE WBM 50 Rachel Nichols

SENIOR EDITOR
Erin Kirschenmann
STAFF WRITER
A S Y O U M AY H AV E surmised from our cover, this issue Bill Pregler
WINE BUSINESS MONTHLY

FEBRUARY 2018
includes our annual list of the largest wineries in the COPY EDITOR
February 2018 • $5.95 The Industry’s Leading Publication for Wineries and Growers www.winebusiness.com
Paula Whiteside
U.S. by volume. This year we’ve included the Top 50 U.S. CONTRIBUTORS

WINE BUSINESS MONTHLY

wineries. In previous years we highlighted the Top 30. Julie Gedeon
Alan Goldfarb
The list includes short company profiles with updates Mark Greenspan
on what the wineries did this year. Michael S. Lasky
Jake Lorenzo
It was a fun list to compile because 20 additional
REVIEW OF THE INDUSTRY ~
Judit Monis, Ph.D.
wineries are included and because some are really Ted Rieger
Kerana Todorov
dynamic; in and of themselves, each could make for an Liza B. Zimmerman
WBM 50 LARGEST WINERIES

interesting story.
DESIGN & PRODUCTION
The largest wineries continue to dominate, but some Scott Summers
are relatively new to the list because they’ve grown
+HOTBRANDS

quickly—companies such as Deutsch Family Wine & PRESIDENT & PUBLISHER

Eric Jorgensen
Spirits, Duckhorn Wine Company, Terlato Wine Group,
ASSOCIATE PUBLISHER
WX Brands and Crimson Wine Group. Tamara Leon
While most of the wineries on this list sell the prepon-
derance of their wine through the three-tier system, ADVERTISING
direct-to-consumer sales are becoming more significant Business Development Manager
Bob Iannetta
for most, especially for some of the mid-sized wineries be interesting, though. Some of the wineries toward the
Account Support Representative
and those selling wines at high price points. The list middle and bottom of the list aren’t that large if you’re Mary Anne Stockus
includes wineries that really emphasize direct-to-con- only counting branded cases but are if you consider that Classifieds
Jacki Kardum
sumer sales, which wasn’t the case a few years ago. Two of they’re doing other things: Some sell wines at higher
ADMINISTRATION
them, Cooper’s Hawk and Naked Wines, sell all of their price points; others are big in the private label business; Vice President – Data Management
wines direct. some import and market wines from other producers; Lynne Skinner

There are even wineries on the list that aren’t from some have restaurants; some are involved with spirits; Circulation
Liesl Stevenson
California or Washington: two from Oregon, one from some operate custom crush facilities processing millions Operations Analyst/Customer Support
Texas, even two out of Illinois—and did you know there’s of cases of wine each year; others have vast vineyard Katie Kohfeld
a winery in North Carolina producing 400,000 cases of holdings and sell grapes and bulk wine to other wineries. Office Manager/Customer Support
Jacki Kardum
wine each year? Some are committed to one region, others source grapes Office Assistant
If it were possible, we’d probably compile a list of the from all over. Natalia Zea
largest U.S. wineries by revenue. While some of these When it comes to the Top 50, there are as many business
EVENTS
wineries are publicly owned, most are private, and private models as there are wineries. Kara Foley
companies tend not to disclose those numbers. It would Cyril Penn – Editor Liz Netherton
Olivia Haywood

WINEJOBS.COM
Marissa Bell

WINE BUSINESS MONTHLY CHAIRMAN

Hugh Tietjen
The leading producer of wine industry information and events PUBLISHING CONSULTANT
Ken Koppel

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contents February 2018 • Volume XXV No. 2 • The Industry’s Leading Publication for Wineries and Growers • www.winebusiness.com

Industry Outlook and Trends . . . . . . . . . . . 26 Canadian Wineries Number of Wineries Hot Brands
U.S. Wine Sales Growing—But Not As Quickly Optimistically Invest Across United States of 2017 . . . . . . . . . 86
Cyril Penn in the Future, Long Reaches 9,654 . . . 82 Erin Kirschenmann
WBM 50 Largest Wineries List . . . . . . . . . . 36 for Less Taxation and The total number of virtual
Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Regulation . . . . . . 76 wineries sees huge increase
as land and permits become
Cyril Penn Julie Gedeon tougher to obtain.
Kerana Todorov

winemaking grape growing

Winemaker Trial On a European Quest
The Phenolic Challenge: Whole-Cluster for Mechanization . . . . . . . . . . . . . . 132
Pinot Noir vs. Adding Stems Back . . . . . . . . . 112 SITEVI tradeshow presented a dizzying array of mechanical
implements
Michael S. Lasky
Mark Greenspan

Irregular Breathing . . . . . . . . . . . . 116 A Pruning Technique for Improved

Thoughts on minimizing bottle-to-bottle variation on the
bottling line Vine Health and Longevity . . . . . . . 138
Curtis Phillips Judit Monis, Ph.D.

Alternative and PD-Resistant

Flash Détente
Wine Grape Varieties Evaluated
Reaching Critical Mass . . . . . . . . . 120
Alan Goldfarb
at UCD Meeting . . . . . . . . . . . . . . . 142
Ted Rieger

Are There Synergies Between Producing and technology & business

Selling Wine and Spirits? . . . . . . . . . . . . . . . . 126
Michael Lasky Security Leads Drive to EMV,
Mobile Wallet Payments . . . . . . 152
Why your winery should accept these new payment methods
Erin Kirschenmann

sales & marketing departments

month in review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Retail Sales Flat Through Fall 2017 . . . . . . . . 148 news . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Nielsen data alludes to a soft sales market, but not all retailers are seeing it. what’s cool: Bill Pregler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Liza B. Zimmerman New Products for the Warehouse Focus on Pallet Load Integrity and Lighting

people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Retail Sales Analysis advertiser index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Off-Premise Wine Sales Rise 1.2 Percent . . . . 150 jake lorenzo Great Tasting . . . . . . . . . . . . . . . . . . . . . 162
winemaker of the month . . . . . . . . . . . . . 161
Cara Morrison, Chardonnay winemaker,
Sonoma-Cutrer Vineyards, Russian River Valley, CA

COVER DESIGN & PRODUCTION: Scott Summers Wine Business Monthly (ISSN 1075-7058) is published monthly by Wine Communications Group, Inc., 35 Maple St., Sonoma, CA 95476.
Subscription rates are $39 for domestic; US$49 for Canadian and US$89 for foreign subscribers. Periodicals Postage Paid at Sonoma, CA,
and at additional mailing offices. POSTMASTER: Send address changes to: Wine Business Monthly, PO Box 1649, Boulder, CO 80306-1649.
who’s talking in this issue

WBM
February 2018

Barbara Banke, chairman and proprietor, Jackson Family Wines, “Industry Outlook and Trends,” page 26
“Everything’s in flux a little bit and some of our retailers have been having a tough
time with lower traffic in their stores.”

Danny Brager, senior vice president, beverage alcohol division, Nielsen, “Retail Sales Flat Through Fall 2017,” page 148
“Growth is slowing down quite significantly and is not growing at the same
rate as 2016.”

Nathan Vrooman, winemaker, Ankida Ridge Vineyard, “Hot Brands of 2017,” page 86
“Very few people are growing Pinot Noir out here. Everyone advised against it. It’s a
thin-skinned, tight cluster of fruit susceptible to mold and mildew and Virginia has
a fair amount of rain and high humidity. It’s a risky move.”

Bob Torkelson, president and CEO, Trinchero Family Estates, “Industry Outlook and Trends,” page 26
“We’ve seen a little bit of slowing in some of the above $15 wines across the
industry. They’re still positive, they’re just not growing at the double-digit rates that
they were before.”

Caroline Stewart, Stewart Cellars, “Hot Brands of 2017,” page 86

“It just became more and more of an actual business, not just a hobby anymore. It
was a real brand with a recognizable name and with passionate people behind it.”

Carolyn Wente, chief executive officer, Wente Family Estates, “Industry Outlook and Trends,” page 26
“It’s funny to see people who have been poo-pooing mechanization all of a sudden
singing the praises of how it’s improved and the fruit is good.”

12 February 2018 WBM

 SHAPE
MAT TERS

LAGARDEINOX.COM 707.312.1123 INFO @ LAGARDEINOX.COM

news For daily news you can search or browse by region, visit winebusiness.com/news

Top Stories from WINE BUSINESS.com – In Case You Missed It

Wine Excise Taxes Cut as House and Senate Pass Tax Reform Legislation
The U.S. Senate joined the House of Representatives in passing sweeping legislation to rewrite the tax code in December,
which includes a significant reduction in the excise taxes wineries pay based on every gallon they produce. The Craft Beverage
Modernization and Tax Reform Act provides a $1 credit per gallon for the first 30,000 gallons produced; $0.90 for the next
100,000 gallons; and then $0.53.5 for up to 750,000 gallons. Additionally, the legislation allows wines with up to 16 percent
alcohol to be taxed at the lower rate that previously applied to wines with less than 14 percent alcohol. Wineries producing wine
that’s 14.5 percent alcohol are going to pay $1.07 per gallon instead of $1.57. Wineries will receive a maximum tax credit of $451,700 annually under the bill.
“This ranks right up there with all the work that we’ve done over the years on direct-to-consumer shipping, Wine Institute president and chief executive
Bobby Koch told Wine Business Monthly. “Wineries are going to be very, very happy...”

Southern Glazer’s Fined $3.5 Million by New York State Liquor Authority
for “Pay to Play” Scheme
The New York State Liquor Authority (NYSLA) accepted a $3.5 million payment from Southern Glazer’s Wine & Spirits
to settle charges that the distributor “engaged in ‘pay-to-play’ by providing illegal gifts and services to businesses to influ-
ence purchasing decisions, permitting incomplete, inaccurate and inadequate record-keeping practices, and for engaging
in discriminatory sales.” The fine is the largest ever imposed by the NYSLA, and Southern Glazer’s has signed a Corporate
Compliance Agreement, which allows the state agency to obtain information on systemic and systematic practice violations moving forward.

Canada’s Supreme Court Hears Case on Interprovincial Shipping

Wineries await a decision from the Supreme Court of Canada as to whether a fine imposed on New Brunswick man, Gerard
Comeau, for violating the New Brunswick Liquor Control Act which limits the amount of alcohol that can be moved between
provinces was unconstitutional or not. At the heart of the case is section 121 of the Constitution Act of 1867, which states, “All
Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free
into each of the other Provinces,” as well as an interpretation of that law in 1921, which essentially delegated control of liquor
to individual provinces. If the fine is overturned, it paves the way for interprovincial shipping of wine, beer and spirits—something Canadian wineries have
been pushing for. No decision date has been announced, as of press time.

Bronco Wine Company Expands with Rail Shipping and Logistics Business
Bronco Wine Company has completed construction on a 150,000-square-foot rail shipping facility at its winery in Cerres
to support Bivio Logistics, the company’s logistics, consolidation and trucking service. Bivio’s new rail freight service is
launching for wineries with multi-store distribution in multiple markets. Rail service is slated to commence Feb. 1. “We just
put rail in and we’re going to roll our first rail car out and then look out. We’re going to lower the cost of doing business in
an age when no one’s thinking about it,” president Fred Franzia told Wine Business Monthly. “We’re tailor made for guys
that have multi-store distribution and low-volume.” Franzia said he’ll save wineries money on freight because shipping wine via rail can be roughly half as
expensive as shipping it via trucks. He said the new service will be ideal for 200 or more mid-tier wineries that don’t have cargo capacity.

Vincent Indelicato Dies At 84

Vincent (Vince) Indelicato of Manteca, age 84, passed away on Dec. 17, 2017, in Modesto, CA. Indelicato spent his childhood
working in the Manteca cellars and vineyards of Delicato Family Vineyards, founded by his father Gaspare Indelicato and
his uncle Sebastiano Luppino, who started growing grapes in 1924. Indelicato and his brothers, Frank and Anthony, took
over the family business in 1960. He graduated from the University of California at Berkeley in 1955, and spent his life
working for the company alongside Dorothy, his wife of 62 years, who passed away in May of this year. Before his passing,
Indelicato served as chairman of the board, advising his nephews Chris Indelicato, president and CEO and Jay Indelicato, COO, on the company strategy.

Sonoma County Viticulturalist Davis Bynum Dies at 92 

One of the first viticulturists to recognize the Russian River Valley as a prime producer of Sonoma County Pinot Noir, Davis
Bynum, passed away after battling cancer in December. Bynum left his career as a reporter for the San Francisco Chronicle at
the age of 40 to pursue a career in wine. He opened his first winery in Albany, California before quickly moving to the Russian
River area, and produced the region’s first single-vineyard Pinot Noir.

14 February 2018 WBM

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 what’s cool
Products that are smart, make your tasks easier and provide cost or labor savings
Bill Pregler
Bill Pregler has worked in the
winery equipment industry for
many years and is a staff writer
for Wine Business Monthly.
New Products for the Warehouse Focus
on Pallet Load Integrity and Lighting
I OFTEN LEARN OF new products via company press releases, which
I receive on a regular basis. While many of the products do not require a
full column’s write up, they are still viable solutions for the workplace and,
in many ways, will make your life easier. This month’s column is dedicated
to those products I didn’t have a chance to write about during the year but
which are three new warehousing products I think are really cool.
I first started writing about case goods palletizing and proper load contain-
ment back in 2008 (Product Review: Automated Stretch Wrapping, WBM,
Oct. 2008) after visiting local wine warehouses and seeing how poorly small
wineries tended to secure their pallets for shipment. At the time, a surpris-
ingly high percentage needed re-wrapping before heading to the distributor
chains; for the receiving warehouse, that required more labor, and the
wineries ended up with extra charges. Apparently, this is still an issue.
This is likely due to inconsistency of “film-force,” or the tension of the
stretch wrap, applied by workers when using hand-held film applicators.
These are the people who are bent over and walk around backwards to secure
pallets of case goods, often weighing close to a ton. I recently came across
some terrific products that should help prevent a collapsed pallet and the
resulting financial loss.
Stabulon-100 pallet-sized sheets are positioned manually or automatically between each layer of case goods.
16 February 2018 WBM
Stabulon-100
Stabulon-100 is anti-slip and paper sheet-coated on both sides with a high
coefficient of friction. These pallet-sized sheets are positioned manually or
automatically between each layer of case goods. The product comes from the
group CGP Coatings, a global company with distribution throughout the
U.S. and four other continents. What caught my eye was a video demonstra-
tion of a pallet with cases tilted at a high-degree angle without any visible
distortion or movement within the stack.
The company specializes in pallet stability and integrity, and preventing
in-transit loads from shifting. CGP has an extended product line of paper
and cardboard packaging, but also supplies rubberized semi-trailer or sea
container floorings, and waterproof (humidity) protection for international,
oceanic shipping. They even have cardboard structural designs that eliminate
the need for wood or plastic pallets entirely.
I was told by Eric Brown, sales director in North America, that the
minimum order of Stabulon-100 is one skid, which contains 2,500 standard
pallet-sized sheets. Stabulon-100 comes in both individual sheets or in a
roll format. Custom sizes are also available. A group of small wineries could
easily co-op a purchase and share the expense.
 The sheets are Eco-Designed Certified (ISO-14062) and are 100 percent
recyclable and reusable.
Naturally, safety is always a concern, especially if pallets are stacked more
than one high, whether in warehouses or vans. At more than 35 pounds per
case, a collapsing pallet of wine can be a serious issue for the workers. It is
not uncommon for warehouses to open a trailer or container to find failed
pallets upon delivery. Friction is a great way to improve your load’s stability
for transit.
FOR MORE INFORMATION, email EricBrown@CGP-Coating.com or call
770-856-3336.
Strap Feeder
In keeping with my thoughts on pallet integrity, the next product is the
MUL-SB Strap Feeder from Teknika Strapping Systems out of San Jose,
California. Teknika offers a complete line of strapping materials (PET,
steel and cord) and the related equipment to secure your loads. This would
include dispensers, tensioners and strapping tools, both manual or cordless
electric. Their new tool, the StrapBandit, is simple, effective, affordable and
totally cool.
Quite simply, it is designed to make the strap threading process, through
pallets, as efficient and safe as possible. I talked with sales manager Lev
Girshfeld while at PackExpo, and he told me the durable head will grip all
plastic and corded strapping material. Then by pushing with an attached
flexible composite rod, the warehouse worker will easily thread strapping
The MUL-SB Strap Feeder is designed to make the strap threading
process, through pallets, as efficient and safe as possible.
through the bottom of all common pallets and crates. For those of you who
have ever tried to thread strapping through the bottom of a pallet by hand,
this is a really cool idea. The worker does not have to bend over or get on the
floor, and it can work in spaces as tight as 12 inches.
Estimates vary, but many suggest up to 80 percent of U.S. commerce on
any given day is carried on pallets. While not everyone uses strapping on
their loads, my suggestion is to consider it as a great backup to work in
conjunction with the Stabulon-100 material.
Stretch wrapping is limited to the effort a worker puts into its application. Is
their first effort of pallet wrapping at 8 a.m. as secure as the last one at 4 p.m.?
FOR MORE INFORMATION, contact Lev Girshfeld at 408-441-9071 or email
Lev@teknika.com.
High-brightness Lighting
My last e-mail came from Smart Vision Lights in Muskegon, Michigan
about the newly released LXE300 linear lighting system. Smart Vision is
an original equipment designer and manufacturer of high-brightness LED
lighting for industrial applications. I’m immediately thinking these are
perfect for wine cellars, warehouses, bottling rooms or even crushpads at
night. Described as their most advanced and brightest linear light, each
module delivers up to 100,000 Lux.
Far too often I walk through winery production areas that could use more
versatile, affordable lighting for everything from illuminating forklift traffic,
barrel shuffling in tight corners, to equipment maintenance and maintaining
good sanitation. LED is a cool alternative, and Smart Vision has lighting for
just about any warehouse of any size.
With the LXE300 you can connect up to six modules (light housings)
end-to-end to create a uniform output for less money than a single mono-
lithic light. What’s also cool is you can then daisy-chain up to six units with
using locking cables for different configurations. Wiring is standard 5-pin
M12 connectors, eliminating external wiring. All a skilled technician would
need is to connect 120V power. How cool is that?
Wineries would want to specify stainless steel housings rated IP-67,
which will hold up perfectly in the humid/wet environments of a cellar. The
standard warranty is a very respectable 10 years.
FOR MORE INFORMATION, visit Smartvisionlights.com or call 231-722-1199.
WHAT’S COOL: I plan on compiling more of these short reviews of random
products I hear about throughout the year. In fact, while writing this
month’s column, I received an e-mail from TAWI USA, Inc., the company
that makes back-saving vacuum lifting equipment to palletize your case
goods on bottling day.
I’ve written about them before, and they were announcing the release of
a new, portable, compact system that will be available in April and is poten-
tially perfect for small wineries. Stay tuned. WBM
WBM February 2018 17
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WINERIES

Adelaida Cellars Bianchi Winery Blair Central Coast Wine Daou Vineyards Gary Kramer Guitar Johansing Wines
Vineyards Services Cellars
Agajanian Vineyards and Dark Water Winery Joullian Vineyard
Wine Company Bon Niche cellars Chalone Vineyard Gelfand Vineyards
Delicato Family Vineyards Justin Vineyards & Winery
Allan Hancock College Booker Vineyards Chamboulé Gemeny Vineyards
Demeter Family Cellars Kaleidos
Allegretto Wines Brecon Estate Chamisal Vineyards Giornata
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Diablo Paso
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Dierberg and Star Lane Family Wines
Armitage Wines Broken Earth Winery Chateau Montelena Vineyard Kiamie Wines
Hahn Family Wines
Arndt Cellars Bronco Wine Company Chock Rock Donati Koehler Winery
Halter Ranch
Artesa Burrell School Vineyard Cholame Vineyard E & J Gallo Winery Kolanu Vineyards
and Winery Harmony Cellars
Artisan Uprising Chronic Cellars Ecluse Wines kukkula
Bushong Vintage Co. Hawks Hill Ranch
ASV Wines Cima Collina Winery Epoch Estate Wines Landmark Vineyards
Buttonwood Farm Winery Hellanback Ranch
Autry Cellars & Vineyard Circle B Vineyard & Farmer’s Fury Winery Law Estate Wines
Cellars Herman Story Wines
Babcock Winery Byron Winery Filipponi Ranch LaZarre Wines
Clos Pepe Vineyards Herzog Wine Cellars
Back Patio Cellars Ca’ Del Grevino First & Last Winery, LDT Custom Crush
Comanche Cellars Pacific Wine Services Hidden Oak Winery and Bottling
Baileyana, Tangent Calcareous Vineyard
& True Myth Constellation Brands Flying Goat Cellars Hope Family Wines Le Cuvier Winery
Calera
Barbieri Wine Co Coruce Vineyard & Foley Estates Vineyard Hoyt Family Vineyards Le Vigne Wine
Calipaso Winery Winery & Winery
Bargetto Winery HRW (Hearst Ranch) Leverage Wines
Caliza Winery Cotiere Winery Folktale Winery
Barr Estate Winery Imagine Wine Locatelli Winery
Cambria Winery Coyote Moon Vineyards Four Sisters Ranch
Bella Collina Weideman In Vino Veritas Longoria Wines
Vineyards Caracciol Cellars Croma Vera Wines Foxen Vineyard
J Dusi Wines Lucas and Lewellen
Bella Luna Estate Winery Carhartt Vineyard Culton Wine Co Francis Coppola Winery Vineyards
J Lohr Vineyards
BernardusWinery Cass Winery Cypher Winery Fratelli Perata Winery Malibu Family Wines
Jackson Family Wines
Bethel Rd Distillery and Castoro Cellars D.Volk Wines Frolicking Frog Cellars Martian Ranch & Vineyard
Winery James Berry Vineyard
Center of Effort D’Anbino Vineyards Gagnon Cellars MCV Wines
& Cellars Joel Gott Wines
Gallo Courtside Cellars Michael Rose Cellars

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WBM February 2018 23
 As part of our review of the industry, Wine Business Monthly compiled its fifteenth annual
ranking of U.S. wineries by case sales. While this list has always included the Top 30 U.S.
wineries by volume, this year we’ve expanded it to include the Top 50 by volume.

INDUSTRY OUTLOOK AND TRENDS…26

Industry Outlook and Trends features in-depth interviews with WBM 50 wine executives about the state of
the economy and the wine industry, where their companies are heading and the challenges they face.
Cyril Penn

WBM50 LARGEST WINERIES…36

The fifteenth annual ranking of the largest wine producers in the United States by
U.S. case sales volume includes profiles for each company on the WBM 50 list.

PROFILES…38
Cyril Penn

24 February 2018 WBM

 Canadian Wineries Optimistically Invest in the Future,
Long for Less Taxation and Regulation…76
Julie Gedeon

Number of Wineries Across United States Reaches 9,654…82

The total number of virtual wineries sees huge increase as land and permits become tougher to obtain.
Kerana Todorov

Hot Brands of 2017…86

This year, we’ve selected wines from pioneers, newcomers, long-standing winemakers and more.
While each may grow a different grape or go about making wine in unorthodox ways, all the
winemakers selected reflect the diversity that is the wine culture in the United States and all have
an innate desire to produce something they, and the consumer, will love.
Erin Kirschenmann

WBM February 2018 25

 INDUSTRY OUTLOOK AND TRENDS
U.S. Wine Sales Growing—But Not As Quickly
“We’ve seen a deceleration.”
Cyril Penn
FOR THE LAST 15 YEARS, the compound annual growth rate of total
wine sales in the U.S. has been roughly 3.7 percent, according to BW166.
The pace of growth slowed in 2017, however, and the apparent decelera-
tion of growth left winery executives scratching their heads.
As 2017 drew to a close, BW166 was forecasting U.S. wine sales would
end up growing by about 2.5 percent for the year, the slowest rate in more
than a decade—but a healthy overall rate of growth, nonetheless.
Nielsen data reports much the same. “Our numbers certainly show that
wine sales have slowed down versus where they were,” Nielsen senior vice
president, beverage alcohol practice, Danny Brager observed. “They’re
still growing but not to the extent that they were, albeit 2016 was a good
year, one of the better years in terms of growth. We’re going up against
some really strong numbers.
“The big question is: is wine growth slowing down?” Brager asked. “I
think the answer is yes. Within that, where is it going? How much of the
slowdown is truly a slowdown? How much is being made up elsewhere?
Some of it is being made up elsewhere but not all of it.”
Possible Causes
Industry executives interviewed for this article had a number of theories as
to the reasons behind the apparent slowdown in growth, just not a wealth
of hard data to support them. It was challenging to obtain data showing a
clear picture of sales trends across the business because of fragmentation
within the industry. Consumers were increasingly shopping in channels that
aren’t easily measurable.
The slowdown in sales growth, as seen in Nielsen data, was mostly
attributed to channel shift: consumers buying more wine in discount
chains, club stores and other outlets that don’t show up in scanner data.
26 February 2018 WBM
Direct-to-consumer sales, through online retailers, were also seen as
starting to represent a more significant portion of the business.
There were reports that foot traffic was down in grocery stores, where
wine is often an impulse purchase, with consumers doing more shopping
online. There was also a perception that consumers were increasingly
buying private label wines.
Online grocery shopping was seen as a factor and not just with Amazon.
Consumers were said to be increasingly buying groceries online through
conventional brick and mortar stores.
“Everything’s in flux a little bit, and some of our retailers have been
having a tough time with lower traffic in their stores,” Jackson Family
Wines proprietor Barbara Banke said.
“It concerns me that the online environment is taking people out of
stores,” Brager told Wine Business Monthly. “Alcohol is a discretionary
purchase, and people buy wine on impulse when they’re walking in a store.
If they’re not in stores, are they going to make up for that by making a
purposeful trip to a liquor store or are they going to buy it online?”
Industry executives reported sales declines on premise and with indepen-
dent retailers too, but again, the rates of decline were difficult to discern
across the industry.
“The word from talking to distributors regarding execution issues is that
wine and spirits has been challenging,” Rodney Strong Wine Estates pres-
ident Carmen Castaldi said. “The stock market continues to escalate and
grow to new levels, but alcoholic beverages haven’t been trending with the
stock market this year. There’s also a shift towards mass merchandising and
discount grocery,” Castaldi said. “Some of these chains are very driven by
private label. I think there’s a little bit of a bunker mentality like we saw in
2008 when we went into a recession.”
 R E VIE W OF TH E I NDU STRY

$ % CHANGE $ SHARE OF
PRICE POINT: TABLE WINE DOLLARS VS. YEAR AGO TOTAL TABLE WINE

TOTAL TABLE WINE $14,049,954,538 2.1% 100.0%

TOTAL TABLE WINE - GLASS (750 ML) $12,561,031,232 1.4% 89.4%

VALUE GLASS: $0 - $3.99 $750,964,955 -3.8% 5.3%

POPULAR GLASS: $4 - $7.99 $3,450,282,241 -5.0% 24.6%

PREMIUM GLASS: $8 - $10.99 $3,370,750,596 0.5% 24.0%

SUPER PREMIUM GLASS: $11 - $14.99 $2,512,841,563 6.8% 17.9%

ULTRA PREMIUM GLASS: $15 - $19.99 $1,264,438,822 10.1% 9.0%

LUXURY GLASS: $20 - $24.99 $542,418,177 8.0% 3.9%

SUPER LUXURY GLASS: $25+ $665,778,118 8.8% 4.7%

SOURCE: Nielsen, Off Premise Channels, All Outlets Combined + Convenience + Liquor Plus + Military, 52 weeks ending 12/02/2017.

“The restaurant chains have had a difficult time this year,” J. Lohr Winery Then you’ve got channel shifting going on. It’s a very, fast-paced, dynamic
CEO Steve Lohr said. “There was a huge amount of expansion that took industry right now.
place in the restaurant industry as various chains got confident that they “There’re a lot of theories about Millennials not going into grocery
could continue to boost sales. They continued to build more restaurants, stores like their parents did,” Baseler said. “Presumably, they order online.
and quite frankly, they just over-built. For wine in general, there’s still This will all shake out at some point, and we’ll see strong trend lines. The
decent growth, but it’s definitely slowed down, and there’s just so many problem right now is you can’t really get data to dissect the root causes.
labels being put out these days too, a lot of private labels. That adds some Someday it will be obvious.”
confusion to the market as well.” It’s not enough to worry the largest wine company in the United States.
Several executives speculated that legalized marijuana could be a factor. “It’s still too early to speculate what’s going on, but what I can tell you,
With billions of dollars estimated to have already been spent on legal mari- we’re very bullish on the wine category,” E&J Gallo vice president of
juana, some expendable income may be coming out of what could have marketing Stephanie Gallo said.
been wine purchases.
“Even though marijuana’s only legal in a handful of states, I think the
government’s acceptance of it is starting to impact alcohol in general,
including the wine industry,” Chris Indelicato, president and chief execu-
Sales of Wines Priced Under $10 Decline
It’s a trend we’ve seen for a few years now. Sales of wines priced at less
tive of Delicato Family Vineyards, said. “I also think the industry may have
than $10 continued their trend of slowing, which meant flat sales of 1.5 liter
over-premiumized rather quickly; I think the consumer’s pushing back a
bottles and 5-liter bag-in-a-box wines.
little bit on some of the price increase.”
“The market is tougher at $10 and below, although it is more than 70
Others just believe the time has come for an adjustment. “We’ve seen
percent of the market in terms of volume,” Giancarlo Bianchetti, Fetzer
something like 30 straight years of growth for wine in America,” W.J.
Vineyards’ CEO, said. “It’s shrinking, and everybody in that category is
Deutsch & Sons president Tom Steffanci said. “When the dust settles this
fighting for share, fighting to take market share from others.”
calendar year, we’re going to be precariously close to decline for total wine
“The value segment continues to have a strong following,” said Brian
in the U.S. We’ve seen a deceleration. That’s the big headline.”
Vos, chief executive officer for The Wine Group. “While premiumization
“There is a lot of speculation about demography and that the younger
goes on, the value segment is not going away overnight.”
demographics, Millennials specifically, are drinking a little more,” Ste.
Michelle Wine Estates president and chief executive Ted Baseler said.
“But Boomers are drinking a little less, and it takes 2.3 Millennials to make
up for one lost Boomer. So you’ve got demographic shifting going on.

WBM February 2018 27

 R EVIEW O F T H E INDUS TR Y

MARKET SHARE OF TOP TEN

CALIFORNIA WINE COMPANIES
Based on global California shipments, nine months to September 2017
(Share of gross winery shipments to global markets, including im ported bulk wines)
Wines Above $12 Still Rising… SOURCE: BOE, GFA ESTIMATES

But Not as Fast

Large wine companies increasingly operate in a mix of price segments,
and most had a healthy mix that translated into increasing revenues and Constellation
13.4%
momentum during 2017. The largest wine companies continued to move Wine Group
up market, with wines priced not just at $15 to $20 but sometimes at $20 16.5%
or $30 or more. 5 .9%
e ro
Sales of wines priced at more than $12 per bottle continued to grow ch
in
during 2017, but again, the pace of growth in volume and value was a bit Tr
.2%
slower than it had been during 2016. y W ine 4
su r
If the weakness in the market during the last couple of years was domi- Tre a
DFV Wines 3.8%
nated by poorer performances in wines priced under $10, what changed in
2017 was that this deceleration was seen at higher price tiers.
E&J Gallo
“We’ve seen a little bit of slowing in some of the above $15 wines across
29.3%
the industry. They’re still positive, they’re just not growing at the double-
digit rates that they were before,” Trinchero Family Estates president and Others
CEO Bob Torkelson said. 20.2%

Less than 3%
There were also fewer brands with scale growing at double digits in
2017. Josh Cellars was one of the fastest growing brands, reaching nearly

6.8%
2 million cases, even accounting for 60 percent of the growth in the $10
to $25 price tier in the scanner data during much of 2017. Another brand
that grew quickly was Butter from JaM Cellars. Bota Box continued its
growth. Brands recently acquired by companies, such as E&J Gallo and
Constellation—Orin Swift, Meiomi and The Prisoner—grew quickly as did Bronco 3%
19 Crimes, a new brand from Treasury Wine Estates.
Jackson Family 2%

Bogle Vineyards 0.9%

What’s Hot? Rosé and Sparkling
Through the first nine months of 2017, shipments of California wine, as
reported by Gomberg-Fredrickson, rose about 2.4 percent, and imports
were up about 3.5 percent—led by Rosé, mostly from France, which
accounted for 80 percent of the growth—along with growth in imported
sparkling wines, primarily from Italy and France. Domestic sparkling wines
grew at 8 or 9 percent, while still wines were growing in a range of about
2 percent.
Red blends continued to do well, and some of the remaining wineries
that didn’t already have them launched them, though the growth slowed
on a large base.
“Red Blends have obviously cooled off, but it sells at a way, way high
plateau,” Don Sebastiani & Sons president and CEO Donny Sebastiani said.
Wines from Oregon had a good year. “Oregon stands out head and
shoulders above any others in terms of growth now, still growing at strong
double digits,” Brager said. “Sauvignon Blanc also did well, and alter-
native packaging—cans and 375 ml bottles—grew quickly on a relatively
small base.”
“It’s a mixed bag,” BW166 managing partner Jon Moramarco said of the
overall wine market. “It’s a healthy market out there; it’s just important to
understand what products you have and how you get them to the market
with the right channels to the right consumers.”
ASV Wines 0.9%
DTC Rising
Virtually every industry executive interviewed for this article mentioned the
growing importance of direct-to-consumer (DTC) sales this year, particularly
in light of the increasing difficulty small- and even medium-sized wineries
have gaining traditional distribution. DTC sales continued to set new sales
benchmarks in 2017. Just during the month of November, for instance,
ShipCompliant and Wines & Vines reported DTC shipments of $417
million, up 26 percent compared to the previous year.
“I think it feeds the brand more than it feeds the profit,” Duckhorn Wine
Company CEO Alex Ryan said. “I think the value of DTC is greater than
just a slightly higher margin per case because you’re selling it direct. The
real value is creating a marketing connection, creating a connection with
your customers that your competitor can’t.”
The DTC market is likely to change going forward, according to Foley
Family Wines president Hugh Reimers. “The market has changed a lot,
with the larger players getting into the luxury side of the business,” he
said. “Constellation and Gallo used to play more between $10 and $15,
but now they’re arriving at the $15 to $30 price point, which used to be the
home of the smaller wineries. It was pretty fragmented at that end of the
market, but with Constellation and Gallo coming in and buying those types
of brands, they’ve put a bit of a stranglehold on the market, particularly in
the chains.”

28 February 2018 WBM

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Back home, concerns abound for the future of California’s largest

wine-producing region. “A huge percentage of the grapes in California are
still out in the Central Valley,” Vos said. “There’s definitely price pressure on
TOP TEN WINE BRANDS IN the grapes on the Central Valley because people are pulling them out. The
U.S. FOOD STORES vines are getting older. To keep these vineyards in the ground, the price
has to go up. Farmers’ input costs are up, labor issues are severe, and if
Based on dollar sales, nine months to September 2017
you’ve got an aging vineyard, pick the varietal you may not want to replant
because, if you rip it out, you’ll probably put in nuts. If you’re not going to
BAREFOOT 4.7% rip it out, the price needs to go up.”
Vos said he sees North Coast grape pricing continuing to escalate. “It’s
WOODBRIDGE RBRT MNDV 2.9% eventually got to price out some of the big brands. You can’t keep selling
brands for under $15 that are from the North Coast,” he said. “It gets
hard. If you’ve owned the vineyard for 30 years, okay, but once the winery
FRANZIA 2.5% changes hands, and the new economics are baked into the owners’ daily
business, I don’t know how you have a North Coast wine that can really sell
SUTTER HOME 2.3% for $15 in the long term.”

YELLOW TAIL 2.1%

Labor Costs Rising
KENDALL-JACKSON 1.9% The costs of doing business continue to rise, especially when it comes to
labor. In California, new laws regarding minimum wage and piecemeal rates
for agricultural workers raised costs.
BLACK BOX 1.9%
“Doing business in California is becoming ridiculous,” Indelicato said.
“The amount of laws that are passed that have no value add, and the
CHATEAU STE. MICHELLE 1.8% complexity and the risk that’s being put on business in California… there’s
a clear directive in Sacramento to run manufacturing and agriculture out
BOTA BOX 1.7% of the state. Labor, $15 an hour minimum wage? That raises the cost of
farm grapes 50 percent, unless you mechanize. So now everybody’s mech-
anizing, right?”
APOTHIC 1.5%
Wente Family Estates chief executive officer Carolyn Wente said farm
SOURCE: BOE, GFA ESTIMATES
labor costs through contractors went up 30 percent in 2017 after rising 30
percent in 2016. “Everybody’s facing a labor shortage and the impact of
health benefits,” Wente said. “With the labor shortage, you have to pay
more for hourly labor. We’re not just feeling it farming, but also in our
Tightening Supply, a Lighter restaurant and in the tasting room. People can get paid more.
2017 Harvest “It’s funny to see people who have been poo-pooing mechanization all
California’s grape crush report will soon be released, but it’s clear already of a sudden singing the praises of how it’s improved and the fruit is good,”
that the harvest was light in the Golden State. Several industry executives she added.
said grape supply was relatively tight, particularly for coastal Chardonnay. The wildfires that killed 44 people and destroyed roughly 9,000 homes
Several said the harvest was below average. At the same time, most other and buildings in Sonoma County and in Napa County could also have long-
major wine-producing countries reportedly had relatively light harvests, a term ramifications for the labor market.
rare coincidence. “You’re going to hear it from everybody, but the major concern as we
“This year, the European harvest was significantly lower due to heat move in to 2018 is labor. With the loss of so many homes in Sonoma and
and other issues,” Baseler said. “I think it will affect the U.S. wine market. Napa, Mendocino [due to the wildfires that destroyed hundreds of homes],
It’s probably a year or two down the road. There’s clearly a constraint on I think that labor’s going to be siphoned off by construction workers,”
supplies in Europe with the 2017 harvest.” Castaldi said.
“On a near-term basis the tight global wine supply, especially from
Western Europe, is going to drive up prices of imported wine,” WX Brands
SVP for marketing and strategy Oren Lewin said. “As the European wine
market tightens, and there were other countries around the world that also
had fairly short harvests, you’ll see entry priced wine go up. That’s probably
a short- to medium-term trend and may not be a long-term trend.”

30 February 2018 WBM

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Price Increases? Maybe
Rising grape prices continued to boost land prices in 2017, but bottle
prices didn’t change much, yet the Moss Adams Benchmarking Survey,
released during the summer, found 67 percent of wineries surveyed saying
they’d be raising bottle prices this year.
“It’s difficult to take price on larger volume brands,” Reimers said.
“Everyone’s getting squeezed right now. You’re seeing a lot of Sonoma
County brands move to the North Coast, and you’re seeing North Coast
brands moving to the California appellation, and at the same time, people
are trying to take prices. It’s an interesting dynamic.”
There are challenges in raising prices in the current, competitive environ-
ment, though. Opinions were mixed, with some saying they see opportuni-
ties to take price increases in certain cases.
“At the end of the day, we have to raise prices. To protect brand equity
long term, you do need to raise prices. The thing is, you have to raise it
slowly enough to avoid getting in the penalty box with the distributor and
the buyers at the retail level, particularly the chain guys,” one executive
said. “Whenever you take price, you go through a kind of violent deck
where your volume is going to suffer while you take that price increase, and
you got to be willing to ride that out and come out the other end, but it’s
easier said than done.”
Rodney Strong’s Castaldi said taking price is additionally difficult with
grocery stores looking to recoup declining profits from lost customer counts
R E VIE W OF TH E I NDU STRY
by relying on perimeter goods, including alcoholic beverages. He said some
recent price increases seen in scanner data can be attributed to retailers
grabbing margin.
“We haven’t raised our price in years,” Castle Rock Winery chief exec-
utive officer Greg Popoivich said. “And I don’t plan on it. We back into it.
We figure out what our price point is, where we need to be. We’ve always
been hoping to be in that $9 to $12 range.”
Continued Consolidation–RNDC and
Breakthru Beverage Announce Merger
Distributor consolidation continued in 2017 as the nation’s second- and
third-largest companies—Republic National Distributing and Breakthru
Beverage Group—announced their merger, setting up a company compa-
rable to Southern Glazer’s, formed in a mega-merger announced in 2016.
“It was the worst-kept secret in the industry,” Terlato Wine Group presi-
dent and CEO Bill Terlato said of the RNDC-Breakthru deal. “They’d been
talking about when the announcement was going to be made for months.
The industry needed it. It’s a natural evolution of what happens in business,
and it’s going to make everybody better. There are always going to be
winners and losers, in good times and in tough times. Some people perform
better than others, and our goal is to make sure we’re one of the winners.”
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 Winery Hiring Increases in December 2017
Winejobs.com Winery Postings Up 10 percent from December 2016 Index of Winery Job Postings 2016 2017
520
Wineries decreased their job postings as of December 2017, according
480
to the latest report released by Winejobs.com. As the wine industry’s 440
leading online job site, Winejobs.com has a unique vantage point over 400

industry trends. Postings for all winery jobs in December 2017 increased 360

10 percent from December 2016. 320

280
DTC, tasting room and retail (hospitality) jobs declined in December
240
2017, with a 20 percent decline from December 2016, but have increased 200
3 percent from 2016 year-to-date listings. 160

Sales and marketing positions increased in December 2017, up 23 120

percent from December 2016, and are up 10 percent with 2016 year-to- 80

40
date listings.
0
Winemaking positions also saw an increase in December 2017, up 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
percent from December 2016, and are up 17 percent year-to-date.
About the Winejobs.com Index
The Winejobs.com Index provides a way to measure and compare trends in the wine job
About Winejobs.com market. March 2007 is set with a base index of 100. The following months’ indexes reflect
Winejobs.com is a resource for both job seekers and employers. Since the online job board percentage changes since that base index, providing a quick way to gauge rises and drops
is specific to the wine industry, retailers will find only the most serious and qualified job in job postings. Derived from the leading online wine job board, these changes can be
candidates. With more than 7,000 jobs posted in 2014, Winejobs.com is unmatched in usage interpreted as industry-wide trends. In 2008, the Winejobs.com Index accurately predicted a
by those seeking to advance their career or grow their company in the wine industry. severe drop in wine-related jobs prior to the economic recession.

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“What’s driving the consolidation in the industry is not the distributors,”
Chris Indelicato said. “It’s the retailers, with the distributors and the suppliers
acting in response to the retailers consolidating. The RNDC-Breakthru
merger will go well,” he said. “They don’t have a lot of overlap, so there’s
plenty of work for everybody to do, and those guys are good operators,
like Southern.”
While Baseler is interested in the idea of a distributor with a national
footprint, he believes in working with whichever distributor does the best
in a particular market—a potential challenge for a smaller wine supplier
looking to grab wholesaler attention.
“As their books get thicker and it’s harder to get a voice with them, you
need to be important to them,” Reimers said. “Obviously, when you’re
2 million cases, you’re a lot more important than when you’re 1 million
cases.”
Several executives said that wineries should spend their time worrying
about reaching consumers and not about distributor consolidation. “We’re
not Constellation. For us to continue to garner significant attention for
our distributor partners, we have to be better marketers and be more
connected to consumers,” Francis Ford Coppola Presents chief executive
officer Steve Spadarotto said. “There’s two whopper companies and then
a bunch of small ones. If you’re not one of the major players that has a
major programming budget, it’s going to be tough to compete.”
“The wine world is doing a fabulous job to bring more people into the
wine category, but I feel the structure of the channels of distribution and
the regulations are holding us back,” Jean-Charles Boisset, chief executive
of Boisset Collection, said. “Making great wines is not the problem; access
to the consumer is the problem.”
Will Distributor Consolidation
Continue?
“In the next three or four years, we’ll see two wholesalers managing 75
or 80 percent of the wine and spirits market in this country,” Bianchetti
said. “The funnel is getting tighter. It will force all of us to have something
unique and a true reason to exist to add value to the distribution chain—
not only for the wholesalers, but for the chains and the restaurants. It’s an
interesting moment.”
“I think the market will settle in at two large alternatives in each state and
that Young’s will partner with RNDC-Breakthru,” another winery executive
said. “That’ll be your next merger. Then they’re pretty much done at that
point. What will happen from that point forward is, every couple of years,
someone will pick off one of the big regional distributors. There’s not a lot
of big mergers left.”
The Big Get Bigger
As the chart on page 28, which shows the market share of the top 10 Cali-
fornia wine companies, indicates the big wineries dominate the market.
That trend continues, making it challenging for medium and even smaller
wineries to compete.
R E VIE W OF TH E I NDU STRY
“The small guy is winning,l and the real big guy is winning, and the
person in the middle is going to struggle,” Indelicato said. “If you’re under
a couple million cases, or you’re over 300,000 or 400,000 cases, it’s tough
sledding right now.”
So how does a smaller or mid-sized winery compete against the big
wineries?
“We compete with consistency and flavor of wine from year to year,” Lohr
said. ”We grow the great majority of our own grapes. We have now 4,000
acres of vineyards that we own as a family, and we make all of our wine,
so that allows great consistency. That really helps, and just relationships,
having worked very closely with our distributors several decades now,
really making sure that they make money as well as us.”
“I think you focus on your direct-to-consumer business, which is harder
for them to compete with you on,” Vintage Wine Estates president and
chief executive officer Pat Roney said. “You focus on some of the private
label business that the big guys aren’t going to want to go chase. The
bigger they are, the slower they are to react, so you have speed to market
and things like that. Invest in your own sales team. You can’t expect the
distributors to do it. … I think you’re going to see a whole new wave of
distributors that are focused on smaller players.”
Wineries Get a Tax Break,
Will Save Millions
As 2017 drew to a close, the Senate passed sweeping legislation to
rewrite the tax code, which was signed by the President and enacted into
law. That legislation included a significant reduction in the excise taxes
wineries pay based on every gallon they produce. The comprehensive tax
legislation included provisions of the Craft Beverage Modernization and
Tax Reform Act.
That legislation reduces excise tax payments for every winery in the
country by expanding the value of the existing producer credit and doing
away with a phase-out that prohibited many wineries from receiving any
benefit. The legislation provides a $1 credit per gallon for the first 30,000
gallons produced, $0.90 for the next 100,000 gallons, and then $0.535
for up to 750,000 gallons. Wineries will receive a maximum tax credit of
$451,700 annually. Sparkling wine producers also get excise tax relief
under the legislation, and the legislation increases the carbonation limit for
still wines.
Additionally—and this is the big deal for large- and medium-sized
wineries—the legislation allows wines with up to 16 percent alcohol levels
to be taxed at the lower rate that previously applied to wines with less than
14 percent alcohol. Wineries that produce wine that’s 14.5 percent alcohol
are going to pay $1.07 per gallon instead of $1.57.
The excise tax credits are effective for two years but could be re-upped
in two years. There are other changes in the tax legislation that will benefit
large businesses, including wineries, such as: the reduction of the federal
corporate income tax rate to 21 percent; modifications to the estate tax;
pass-through tax provisions for LLCs and partnerships; immediate, first-year
expensing for capital improvements; and a five-year provision that may
appeal to wineries interested in expanding their crush pads or purchasing
new farm equipment. WBM
WBM February 2018 35
 LIST
As part of our review of the industry, Wine Business Monthly compiled
its fifteenth annual ranking of U.S. wineries by case sales. While this list
has always included the top 30 U.S. wineries by volume, this year we’ve
expanded it to include the top 50 by volume.
When we first published this list in 2003, the threshold for inclusion
was about 350,000 cases. The list has changed over the years as the U.S.
wine business has evolved with several companies being acquired and/or
merging or otherwise growing.
This year, the threshold for being among the top 30 is double that. Much
of the movement in the largest wine companies has been among the top
31 to 50, where the inclusion point is just over 350,000 cases. So, we’ve
expanded our list to the WBM 50 to create a better snapshot of the industry.
Companies are listed in order of cases sold domestically of brands owned
by the winery. This list does not include private labeling or custom crush
wineries that make wine for others.
Though there are now 9,654 wineries in the U.S., the WBM 50 companies
represent more than 90 percent of domestic wine sold by volume.

1 E&J GALLO WINERY 70 MILLION 11 BOGLE VINEYARDS 2.5 MILLION

2 THE WINE GROUP 53 MILLION 12 DEUTSCH FAMILY WINE & SPIRITS 2.2 MILLION
(JOSH CELLARS)

3 CONSTELLATION BRANDS 50 MILLION

13 PRECEPT WINE 1.9 MILLION

4 TRINCHERO FAMILY ESTATES 19.3 MILLION

14 VINTAGE WINE ESTATES 1.75 MILLION

5 TREASURY WINE ESTATES 16 MILLION

15 FRANCIS FORD COPPOLA WINERY 1.7 MILLION

6 DELICATO FAMILY VINEYARDS 10.2 MILLION

16 C. MONDAVI & FAMILY 1.7 MILLION

7 BRONCO WINE COMPANY 10 MILLION

17 J. LOHR VINEYARDS & WINES 1.6 MILLION

8 STE. MICHELLE WINE ESTATES 9 MILLION

18 KORBEL 1.5 MILLION

9 JACKSON FAMILY WINES 6 MILLION

19 WX BRANDS 1.3 MILLION

10 VIÑA CONCHA Y TORO 2.75 MILLION

(FETZER VINEYARDS) 20 FOLEY FAMILY WINES 1.2 MILLION

36 February 2018 WBM

 R E VIE W OF TH E I NDU STRY

21 DON SEBASTIANI & SONS 1.1 MILLION 36 WINES OF SUBSTANCE 550,000

22 RODNEY STRONG WINE ESTATES 950,000 37 NAKEDWINES.COM 515,000

23 DUCKHORN VINEYARDS 900,000 38 FERRARI-CARANO VINEYARDS AND WINERY 450,000

24 PERNOD RICARD USA 900,000 39 HAHN FAMILY WINES 430,000

25 BOISSET COLLECTION 875,000 40 DUPLIN WINERY 421,000

26 O’NEILL VINTNERS & DISTILLERS 760,000 41 CASTLE ROCK WINERY 400,000

27 HESS FAMILY WINE ESTATES 750,000 42 A TO Z WINEWORKS 400,000

28 MICHAEL DAVID WINERY 700,000 43 KING ESTATE WINERY 400,000

29 DOMAINE CHANDON ESTATES & WINES 675,000 44 OLIVER WINERY & VINEYARDS 400,000

30 WENTE VINEYARDS 650,000 45 CRIMSON WINE GROUP 375,000

31 TERLATO WINE GROUP 650,000 46 PURPLE WINE + SPIRITS 375,000

32 RIBOLI FAMILY WINE ESTATES 625,000 47 SCOTTO CELLARS 375,000

33 SCHEID VINEYARDS 580,000 48 CLINE FAMILY CELLARS 370,000

34 COOPER’S HAWK WINERY & RESTAURANTS 570,000 49 RUTHERFORD WINE COMPANY 350,000

35 MESA VINEYARDS 550,000 50 MCMANIS FAMILY VINEYARDS 340,000

2003 — The First WBM 30 List

Wine Company (purchased by)
11. Stimson Lane / Ste. Michelle Wine Estates 21. Don Sebastiani & Sons
1. E&J Gallo Winery 12. Allied Domecq 22. Bogle Vineyards
2. Constellation Brands (Beam Wine Estates/Constellation) 23. Rodney Strong Vineyards
3. The Wine Group 13. Delicato Family Vineyards (DFV) 24. Barefoot Cellars (E&J Gallo)
4. Beringer Blass Wine Estates 14. Golden State Vintners 25. San Antonio Winery
(Treasury Wine Estates) (The Wine Group)
26. The Hess Collection
5. Bronco Wine Company 15. Phillips-Hogue
(Constellation Brands) 27. Round Hill / Rutherford Wine Company
6. Robert Mondavi Winery
(Constellation Brands) 16. C. Mondavi & Sons 28. Domaine Chandon
7. Trinchero Family Estates 17. Peak Wines (Beam Wine Estates) 29. Wente Vineyards
8. Brown-Forman Wines 18. Ironstone Vineyards 30. Bonny Doon Vineyard
9. Kendall-Jackson (Jackson Family Wines) 19. J. Lohr Vineyards & Wines
10. Diageo Chateau & Estate Wines 20. Chalone Group
(Diageo Chateau & Estate Wines)

WBM February 2018 37

 PROFILES
1. E&J Gallo Winery
Stephanie Gallo, Vice President of Marketing wineries to the growing import portfolio. The LUX Wines division, with
ANNUAL U.S. CASE SALES VOLUME: 70 million (WBM Estimate) an independent sales force and marketing department, was awarded U.S.
ANNUAL GLOBAL CASE SALES VOLUME: 80 million distribution rights for Sicily’s Tornatore Wine and Italy’s Jermann and
EMPLOYEES: 4,000 Argiano wines. E&J Gallo also obtained rights to distribute New Zealand’s
Saint Clair Family Estate Wines.
E&J Gallo continues to build on its The company also purchased California luxury brandy producer Germain-
leadership position as the nation’s Robin this year. Ansley Coale and Joseph Corley, Germain-Robin’s distiller
leading wine company by focusing and cellarmaster, remains involved as part of the acquisition.
on popularly-priced products aimed New brand launches included Bear Flag Sonoma County Zinfandel and
at broadening the wine category by Mount Peak Winery, named after the Ghost Winery at Gallo’s Monte
expanding category occasions with Rosso Vineyard, which offers Cabernet Sauvignon, Zinfandel and Petite
new packaging formats. Barefoot Sirah. Dark Horse earned a 2017 Nielsen Breakthrough Innovation
Spritzers in single-serve cans is one Award, while Prophecy from New Zealand was named Best New Wine
example. Product by Market Watch.
This year marked the continuing E&J Gallo imports and markets wines from France, Chile, Germany,
roll-out of Gallo Family Vineyard Italy, Australia, South Africa, New Zealand, Spain and Argentina. Its well-
Sweets, a line with an approachable known imports include Bodegas Martín Códax Albariño from Spain,
sweeter flavor and point of entry Don Miguel Gascón Malbec from Argentina and Catena’s Alamos line
for new wine consumers. The Gallo of wines, as well as Ecco Domani, Bella Sera Wines, Sebeka Wines from
Family Vineyards’ Sweets line is South Africa and Da Vinci from Italy. The company distributes Black Swan
available in Sweet Peach, Sweet Wines from Australia in the U.S., owns the Las Rocas brand of Spanish
Berry, Sweet Apple and Sweet Pineapple. wine and also imports La Marca Prosecco.
E&J Gallo also continues to expand its ultra-premium offerings and The Gallo portfolio includes Barefoot Cellars, Dark Horse and Gallo
innovate, capitalizing on the trend of consumers moving toward more Family Vineyards, as well as premium box wines The Naked Grape and
expensive premium products. The company added Orin Swift Cellars, Vin Vault. Premium offerings include Apothic, Chateau Souverain,
Talbott Vineyards and J Vineyards & Winery over the last three years, in Carnivor, Columbia Winery, Ecco Domani, Edna Valley Vineyard, J
addition to purchasing a number of significant production facilities. E&J Vineyards & Winery, Louis M. Martini, MacMurray Estate Vineyards,
Gallo’s acquisition of the Stagecoach Vineyard in Napa Valley, announced Mirassou, Orin Swift, Talbott Vineyards and William Hill Estate, along
in March 2017, is considered a watershed moment by some, reflecting with imports, such as Brancaia, La Marca, Las Rocas, Martín Códax,
not only E&J Gallo’s investment in the premium and luxury strategy, but Whitehaven and LUX Wines, importers of Allegrini, Argiano, Jermann,
recognition of a shift that has seen wine companies scrambling to lock Pieropan and Renato Ratti. Gallo Spirits offers New Amsterdam Vodka
down supply through vineyard acquisitions in Napa Valley and other and Gin and E&J Brandy, in addition to imported Scotch whiskies from
premium areas. Whyte & Mackay, including The Dalmore, Jura Single Malt and John
E&J Gallo offers a portfolio of elite brands from many of the world’s Barr Blended.
most noteworthy appellations. This year, the company added three Italian

38 February 2018 WBM

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 2. The Wine Group
Brian Vos, President and CEO
ANNUAL U.S. CASE SALES VOLUME: 53 million
EMPLOYEES: 1,000

The Wine Group continues to

focus on leading in value while
growing its premium business in
the $8 to $15 segment, increasing
its focus and reach on-premise,
while introducing new brands and
line extensions.
The most recent national brand
launches include Stave & Steel
Bourbon Barrel-Aged Cabernet
Sauvignon, as well as a commercial
tier for Imagery Estate Winery,
now a nationally-available
collection of California wines, with
Sauvignon Blanc, Chardonnay,
Pinot Noir and Cabernet
Sauvignon blends. The Wine Group purchased Benziger Family Winery
and Imagery Estate Winery in Sonoma Valley in 2015.
Cupcake Vineyards, a 3 million case brand, was extended with a Rosé,
and Cupcake sparkling wines continue to grow. The Wine Group recently
introduced Cupcake Butterkissed Chardonnay; and as the name might
imply, it has a more buttery, oaky flavor. Another recent introduction, Love
Noir, encourages consumers to “fall in love with the darker side of wine.”
It includes a top-selling Pinot Noir and a Love Noir Satin Red—a blend of
Zinfandel, Merlot and Petite Sirah. Chloe Wine Collection, with Prosecco,
Pinot Grigio and now a Rosé, continues to grow, and new offerings under
that brand include Merlot and Cabernet from San Lucas Vineyard.
Concannon Vineyard re-launched with a new package focused on its
history as a leader in California Cabernet Sauvignon in 2016 (Concannon
imported vines directly from Château Margaux in Bordeaux and years
later collaborated with UC Davis in selecting cuttings later known as
Concannon Cabernet Clones 7, 8 and 11).
The Franzia wine brand accounts for a large percentage of its case
volume. Other brands include Save Me, San Francisco Wine Company
(Soul Sister Pinot Noir, Calling All Angels Chardonnay, Hella Fine Merlot,
California 37 and a Drops of Jupiter Red Blend). On-premise wine 10
Span Vineyards showcases the wines of Monterey and Santa Barbara
counties. Cocobon is one of The Wine Group’s entrants in the Red Blend
category. The Wine Group markets wine primarily in North America,
Northern Europe and Asia. Established in 1981, The Wine Group is based
in Livermore, California, at the historic Concannon Estate.

40 February 2018 WBM

 3. Constellation Brands
Bill Newlands, Executive Vice President, Chief Operating Officer
ANNUAL U.S. CASE SALES VOLUME: 50 million (WBM Estimate)
EMPLOYEES: 6,000 (globally)
NATURAL CORK
Drinks giant Constellation Brands purchased
Napa Valley cult winery Schrader Cellars in 2017
for $60 million, giving it one of the elite names
in Napa Cabernet, in a deal that included the
brand and long-term vineyard contracts.
Since April 2016, when Constellation
purchased The Prisoner Wine Co. from
Huneeus Vintners, reportedly for $285 million,
the brand has seen double-digit growth.
WINE & SPIRITS Constellation is now investing in a public tasting
room where visitors can experience the qualities
of the Prisoner brand in person at a site that
previously served as the tasting room for Franciscan Estate Winery.
Constellation Brands continues to acquire properties and brands it
can grow by leveraging its scale. In late 2016, the company purchased
Charles Smith Wines (Kung Fu Girl Riesling, Velvet Devil Merlot, Boom
Boom! Syrah, Eve Chardonnay and Chateau Smith Cabernet Sauvignon),
reportedly for $120 million.
TRA DITIONAL CAPSULES Among other recent wine purchases was the Meiomi luxury wine brand
from Copper Cane LLC for $315 million in 2015. Constellation also
agreed to sell its Canadian wine business to Ontario Teachers’ Pension
Plan in 2015. The sale included Jackson-Triggs Winery, Inniskillin and
other wineries, vineyards, offices and facilities, as well as the Wine Rack
retail store.
In 2017, Constellation Brands announced an agreement to acquire a
minority stake in Ontario, Canada-based Canopy Growth Corporation, a
public company that provides medicinal cannabis products. In announcing
the deal, the company said the investment is part of a strategy to meet
and stay ahead of evolving consumer trends and market dynamics
BACKED BY SCIENCE
while maintaining focus on its core “total beverage alcohol business.”
Constellation said it has no plans to sell any cannabis products in the
U.S. or any other market until it is legally permissible to do so at all
government levels.
Bill Newlands was named executive vice president, chief operating
officer in January 2017. He joined Constellation in 2015 as executive vice

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Spirits Division. In his new role, Newlands oversees the Beer Division, Wine
& Spirits Division and the growth organization, reporting directly to Rob
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W H I L E M E E T I N G T H E N E E D S O F YO U R B U S I N E S S Sands, president and chief executive officer. Chris Stenzel was promoted
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42 February 2018 WBM

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 R EVIEW O F T H E INDUS TR Y

4. Trinchero Family Estates

Bob Torkelson, President and COO
ANNUAL U.S. CASE SALES VOLUME: 19.3 million
EMPLOYEES: 1,000
Trinchero Family Estates (TFE) continues
to see growth with brands such as Joel
Gott Wines, Charles & Charles, Echo
Bay and Ménage à Trois. This year, TFE
extended the Ménage à Trois line with
Decadence Cabernet Sauvignon.
The company also announced a
partnership with Neyers Vineyards,
a producer of small-production wines
from top appellations in California,
with suggested retail pricing ranging
between $25 and $100. That followed
the acquisitions of two other Napa-based
wineries, Mason Cellars and Ziata Wines, the latter founded in 2008 by
Karen Cakebread. The Ziata portfolio includes Sauvignon Blanc, Pinot
Noir and a proprietary Bordeaux-style blend.
Sutter Home is growing, having eclipsed 10 million cases again this year.
In late 2016, TFE announced its purchase of the 90,000-square-foot Five
Rivers Winery facility in the Paso Robles AVA from Fetzer Vineyards. TFE
is modernizing the facility and adding white wine capabilities to the site.
Trinchero Family Estates promoted Bob Torkelson to president and
CEO in 2017, following Roger Trinchero’s retirement from the role of
CEO. Roger will remain chairman of the board. Torkelson, previously
president and COO, joined the company in 1996.
The Trinchero Family Estates portfolio includes more than 40 brands,
including Sutter Home, Ménage à Trois, Trinchero Napa Valley, Napa
Cellars, Folie à Deux, Terra d’Oro, SeaGlass and the number one
alcohol-removed wine, Fre. TFE also markets and sells a stable of notable
brands, including Joel Gott Wines, Charles & Charles, Taken Wine Co.
and Bandit. TFE’s import portfolio also includes Angove Wines from
Australia; Doña Paula Wines from Argentina; Carmen and the Wave
Wines from Chile; and a spirits portfolio that includes Amador Whiskey
Co. and Cruz Tequila.

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 R EVIEW O F T H E INDUS TR Y

5. Treasury Wine Estates 6. Delicato Family Vineyards

Robert Foye, Chief Operating Officer Chris Indelicato, President and CEO
ANNUAL U.S. CASE SALES VOLUME: 16 million ANNUAL U.S. CASE SALES VOLUME: 10.2 million
ANNUAL GLOBAL CASE SALES VOLUME: 34 million EMPLOYEES: 630
EMPLOYEES: 3,600 globally

Delicato Family Vineyards has been

Treasury Wine Estates’ chief growing by a million cases during each
executive officer Michael of the past six years, led by three key
Clarke announced a series of brands—Bota Box, Gnarly Head, Noble
executive appointments this Vines and Z. Alexander Brown—in addition
year, including naming Robert to brands such as Twisted, Bell Ambiance
Foye as chief operating officer, and HandCraft. Bota Box has been the
working with Clarke to oversee big driver. Luxury brands Black Stallion
major operating units across from Napa Valley and Diora from Monterey
the global business. continue to grow too.
Foye, who had been This year, Delicato and V2 Wine Group of
president and managing Sonoma, California announced a strategic
director for Asia and Europe, alliance, which gives the company a greater
C

also assumes the role of president, North America and Latin America. Foye focus on wines priced above $15. Delicato
M

takes over for Bob Spooner, whose two-year assignment in the United made an equity investment in the marketing and sales firm as part of an
Y

States ended. Spooner was planning to retire but returns to Australia as ongoing premiumization strategy that started with the acquisition of Black
CM

general manager, global strategic initiatives, systems and processes. Stallion Estate Winery in 2010. V2 continues as a distinct entity with its
MY

Treasury Wine Estates acquired most of Diageo’s U.S. and U.K. wine own channel strategy for wineries such as Bouchaine Vineyards, Coeur
CY

operations in late 2015. The purchase included Beaulieu Vineyard, Clémentine Wines, Dobbes Family Estates, Donati Family Vineyard,
CMY

Sterling Vineyards, Acacia Vineyard, Provenance Vineyards, Hewitt Dry Creek Vineyard, La Follette Wines, Lucinda & Millie Wines, Mercer
K

Vineyards and more. The company has since repositioned and Canyons, Merryvale Vineyards, Morandé, Quivira Vineyards and
repackaged a number of those brands and combined some of the Winery, Starmont Winery and Vineyards, Steelhead Vineyards, Toad
production too, moving winemaking from Chateau St. Jean in Sonoma Hollow Vineyards, Torbreck Vintners and Vindicated Wines.
County to the larger Beringer facility in St. Helena, and transferring Delicato expanded and extended its distribution agreements with
production of all but the top-end labels from Beaulieu Vineyard’s winery in Southern Glazer’s Wine & Spirits in 2017, going with Southern in
Rutherford to the St. Helena facility. California while extending existing distribution agreements in 17 markets.
The company continued to see big growth with its 19 Crimes brand The Indelicato family has been making wine for more than 75 years
this year, one of the industry’s fastest growing wine brands. The newest and owns more than 7,000 acres of vineyards along the Central Coast
launch is Samuel Wynn & Co., named for Australian wine industry pioneer and near Lodi in California. President and CEO Chris Indelicato is the
Samuel Wynn, and packaged in an angular, whiskey-like bottle, initially grandson of founder Gasparé Indelicato. Former president and CEO
including two wines: The Man From Nowhere Shiraz and Last Rites Vincent Indelicato passed away in late 2017.
Cabernet Sauvignon. Employing a “multi-region” sourcing strategy,
Samuel Wynn & Co. wines are launching in Australia ahead of the U.S.
launch.
Treasury Wine Estates of Australia is publicly held, and its wine portfolio
includes some of the world’s leading premium wine brands: Lindeman’s,
Rosemount Estate, Penfolds and others. Its U.S. wineries include
Beringer Vineyards, Etude Wines, Stags’ Leap Winery, St. Clement
Vineyards, Chateau St. Jean and Meridian Vineyards. Treasury refers
to wines priced between $10 and $20 as “masstige” brands, a term for
products positioned as having a level of perceived prestige with a price
point similar to middle-range brands. Treasury Wine Estates was spun off
from Foster’s Group in 2012, making it the “world’s largest publicly held,
pure-play wine company.”

46 February 2018 WBM

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7. Bronco Wine Company
Temperature Controlled Fred Franzia, Chief Executive Officer
Bay Alarm Security ANNUAL U.S. CASE SALES VOLUME: 10 million (WBM Estimate)

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Bronco Wine Company just completed
construction on a 150,000-square-
foot rail shipping facility at its winery
in Ceres to support Bivo Logistics,
its new logistics, consolidation and
rail freight service for wineries with
multi-store distribution in multiple
markets. Elsewhere, Bronco invested
in Rare Earth Organics, LLC, a new
company supplying California growers
with Dihydrate Gypsum and other
soil amendments, sourced from Baja
California Sur, Mexico.
707-259-0250 Bronco Wine Company, known as the low-cost California wine leader,
purchased 12 wine brands from Treasury Wine Estates in 2015 that had
previously been owned by Diageo. Those brands include Cellar No.
8, Rosenblum Cellars, Black Opal, Little Penguin, Century Cellars,
Chateau La Paws, Once Upon a Vine, Orogeny Vineyards, Colores Del
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concept combines an ergonomically-designed cork stopper and a glass
bottle with an internal thread in the neck.
Bronco Wine Company makes wines under the ForestVille Vineyards,
Estrella River Winery, Montpellier Vineyards, Grand Cru Vineyards,
Silver Ridge Vineyards, Rutherford Vintners, Hacienda Wine Cellars,
Foxhollow Winery and Napa Ridge brands, among many others. The
company has more than 60 brands, including Harlow Ridge Winery,
Santa Barbara Landing, Fat Cat Cellars, Crane Lake Cellars, Forest Glen
Winery, Fox Brook Winery, J.W. Morris Winery, Quail Creek Cellars and
Sea Ridge Winery.
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Bronco may be best known as the company behind Charles Shaw,
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Bronco is a bulk producer with more than 100 million gallons of
capacity. Bronco makes wine in Ceres and Napa, under contract to Barrel
COME VISIT US AT UNIFIED BOOTH # F1 Ten Quarter, which it owns. In 2003, Bronco purchased a production
facility in Escalon, California from Constellation Brands. The Franzia
family (which has no relationship to The Wine Group’s Franzia brand
boxed wine) has made wine in California for more than 100 years.

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48 February 2018 WBM

 R EVIEW O F T H E INDUS TR Y

8. Ste. Michelle Wine Estates

Ted Baseler, President and CEO Ste. Michelle Wine Estates purchased
ANNUAL U.S. CASE SALES VOLUME: 9 million California’s Patz & Hall, the highly
EMPLOYEES: 800 regarded producer of single-vineyard
Chardonnay and Pinot Noir, in 2016. In
Ste. Michelle Wine Estates, a global “string of pearls” collection of wine addition to Chateau Ste. Michelle, Ste.
estates, is the dominant wine company in Washington. Its Chateau Ste. Michelle Wine Estates includes Columbia
Michelle Winery is Washington’s oldest. The company has nearly 4,000 Crest, Snoqualmie Vineyards, Northstar
acres of vineyards in Washington and California. Winery, Stimson Estate Cellars and
Ste. Michelle Wine Estates continued to innovate with new products Red Diamond Wine, among others.
and line extensions in 2017. Among the new wines is Merf, named for The company also produces Col Solare
North Star Winery winemaker David “Merf” Merfeld. 14 Hands Winery Winery in partnership with Tuscany’s
introduced Run Wild. Intrinsic Wine Co., which produces a Cabernet Marchesi Antinori family. It owns Conn Creek Winery of Napa Valley, as
Sauvignon made at Columbia Crest that’s unique because of its use of well as Villa Mt. Eden.
extended maceration, now includes a Red Blend. Drumheller Wines Ste. Michelle Wine Estates imports Antinori wines from Italy in the
is a new brand made for restaurants, and another recent introduction, U.S., has a joint partnership with Antinori in Col Solare and is Antinori’s
Mamma Mia red and white blends, is carried by Kroger. partner in Napa’s Stag’s Leap Wine Cellars. The import portfolio includes
CEO Ted Baseler said the company plans to break ground for a new Champagne Nicolas Feuillatte and Villa Maria Estate from New Zealand.
winery in Oregon for its Erath Winery this year. Last year, the company Ste. Michelle is owned by Altria Group, Inc., a large tobacco company
purchased the Knight’s Gambit Vineyard in Dundee to supply Erath. that is publicly held.

50 February 2018 WBM

 THE BUSINESS SIDE OF WINE

Increase Your 9. Jackson Family Wines

Direct-to-Consumer Sales
Barbara Banke, Chairman and Proprietor
POINT OF SALE ANNUAL U.S. CASE SALES VOLUME: 6 million
INVENTORY TASTING ROOM
EMPLOYEES: 1,700

ACCOUNTING WINE CLUB

Jackson Family Wines
celebrated the 35th
COMPLIANCE FULFILLMENT
anniversary of Kendall-
ALL IN ONE Jackson Vintner’s Reserve
SALES & EMAIL
MARKETING MARKETING
Chardonnay, added to
its brimming portfolio of
MERCHANT ECOMMERCE wineries making Burgundian
SERVICES INTEGRATED
varietals with the purchase
of Brewer-Clifton Winery,
CUSTOMER RELATIONSHIP
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presence in Oregon this year.
Your passion is making wine. Ours is helping you sell it.
Work continues on a new
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La Crema-Willamette, Siduri
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other wineries in Oregon. Jackson Family Wines purchased WillaKenzie
Estate and Penner-Ash Wine Cellars of Oregon in 2016. Jackson Family
Wines purchased two Sonoma County-based wineries: Copain Wines,
a small winery in Healdsburg, and Field Stone Winery in the Alexander
Valley in 2016.
The company wrapped up a number of building renovation and
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Freemark Abbey winery in Napa Valley, the transformation of Richard
Kunde’s old farmhouse in Sonoma County into a tasting room for La
Crema, and the renovation of an old stone winery on Spring Mountain for
Lokoya to support direct-to-consumer efforts.
TBC-2STD Jackson Family Wines, which owns 40 wineries in the United States
Two-Barrel Washer and produces more than 350 different wines, has been continually
Maximize Cleaning making strategic acquisitions to support existing wineries and growth for
several years, much of it focused on top vineyards. Jackson Family Wines
Minimize Water Use
emphasizes sustainability in its wineries and vineyards. Most vineyards are
Durable certified sustainable.
Portable Jackson Family Wines brands include: Atalon, Cardinale Winery,
Hartford Family Winery, Lokoya, Carmel Road Winery, Cambria Estate
Ozone-capable
Winery, Matanzas Creek Winery, La Crema, Stonestreet Wines and
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52 February 2018 WBM

 R E VI EW O F TH E I NDU STRY

11. Bogle Vineyards

Ryan Bogle, Vice President and Chief Financial Officer
10. Viña Concha Y Toro ANNUAL U.S. CASE SALES VOLUME: 2.5 million
EMPLOYEES: 100
(Fetzer Vineyards)
Giancarlo Bianchetti, General Manager, Fetzer Vineyards Bogle Vineyards added tank capacity to its winery, released a new
ANNUAL U.S. CASE SALES VOLUME: 2.75 million Chardonnay under the Phantom line and is working on some new wines
ANNUAL GLOBAL CASE SALES VOLUME: 35 million that will launch in 2018.
EMPLOYEES: 308

Since being purchased six years ago

from Brown-Forman by Viña Concha y
Toro, Chile’s largest wine producer and
exporter, the Fetzer brand has been
repositioned upward. Bonterra, the first
significantly sized organic wine brand,
continues to grow. 1000 Stories, one of
the first bourbon barrel-aged wines in
the U.S., is another growth brand.
New this year is Adorada Pinot Gris
and Rosé, priced at $15 to $20 with
unique packaging.
Fetzer entered the luxury spirits
category this year through a partnership
with Kentucky Peerless Distilling, a
high-end producer of rye and bourbon Bogle’s wines include Bogle Essential Red Blend, a mix of Zinfandel,
whiskey priced at $125 retail. Syrah, Cabernet Sauvignon and Petite Sirah. Bogle’s leading wine is
Fetzer, long a leader in sustainability, Chardonnay, though the winery makes a considerable amount of Petite
received the 2017 Momentum Award Sirah as well.
from the United Nations. Fetzer is one of only two wineries in California The Bogle family has been farming since the mid-1800s, and in 1968,
to receive B Corp certification and continues to be a model for protecting the father and son team of Chris and Warren Bogle planted their first
and preserving the environment and communities. The winery has engaged winegrapes in Clarksburg, California. Bogle Vineyards farms more than
in sustainable practices for many years and now has its eye on being net 1,200 acres of winegrapes in the Delta region.
positive in terms of its environmental impact by 2030. Warren Bogle, president and vineyard director, is the sixth generation
Fetzer is celebrating its 50th anniversary this year (2018). of Bogles to farm in California’s Sacramento Delta. Ryan Bogle currently
serves as vice president of the company and oversees accounting. Jody
Bogle serves as director of public relations.

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54 February 2018 WBM

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12.
Wine & Spirits (Josh Cellars)
Tom Steffanci, President
ANNUAL U.S. CASE SALES VOLUME: 2.2 million
EMPLOYEES: 270
Founded in 2007 by Joseph Carr and introduced in 2009, Josh Cellars
has been owned by Deutsch Family Wine & Spirits, the marketer and
importer of wine and spirits, since 2011, when it was a 60,000-case
brand. Josh Cellars is now the fastest-growing premium wine brand.
Typically priced between $13 and $19, the wines are made by Wayne
Donaldson and sourced from regions across California. The wines are
made at the Vintage Wine Estates facility in Mendocino, and the Ray’s
Station winery near Hopland. The brand grew by 45 percent in 2017,
reaching 2.2 million cases. In 2018, Josh Cellars will benefit from a $10
million digital ad campaign.
Deutsch Family Wine & Spirits was founded in 1981 by chairman Bill
Deutsch to market wine and spirits from family-owned companies around
the world. Its volume will exceed 11 million cases in 2017 with revenues
topping $650 million. The business has grown to include a roster of
international brands and has more than 270 employees. Brands Deutsch
markets include [yellow tail], Eppa Sangria, Kunde Family Estate,
Girard, Cigar Zin, Andre Lurton, Château Bonnet, HobNob, Sauvion,
Vidal-Fleury, Barone Fini, Villa Pozzi, Villa Massa Limoncello, Enza
Prosecco, The Crossings, Quinta do Vale Meao and more. Another
domestic wine brand Deutsch owns is The Calling while Skyfall is a joint
venture with Deutsch and Precept. [yellow tail] sold 7.5 million cases in
2017 and became the first wine brand to advertise during a Super Bowl
last year. [yellow tail] will be a Super Bowl advertiser again in 2018.
56 February 2018 WBM
R E VI EW O F TH E I NDU STRY
13. Precept Wine
Andrew Browne, Founder & CEO
ANNUAL U.S. CASE SALES VOLUME: 1.9 million
EMPLOYEES: 400
Seattle-based Precept Wine, founded
in 2002 by Andrew Browne, is the
largest and fastest-growing private
wine producer in the Northwest and
was among the fastest-growing 30 wine
companies in the United States by dollar
volume sales during 2017.
Double-digit sales growth over 2017
included premium Browne Family
Vineyards, which is the second fastest-
growing brand (up 86 percent) among
the top Washington state wine brands
over $20. Pendulum (up 36 percent) and
Waterbrook Winery (up 10 percent) saw
double-digit dollar volume growth.
House Wine surged by 75,000 cases
with the launch of its 375 ml cans in May.
By Labor Day, more than 2.4 million
House Wine Rosé, Chardonnay and Red Blend cans were sold. The
company also launched House Wine Rosé Bubbles, Sauvignon Blanc and
Pinot Noir. House Wine has continued growth in its 750 ml bottle offering,
and House Wine Box also achieved Impact “Hot Prospect Brands” status
for the third year in a row (based on 2016 depletion volume).
Gruet Winery of Albuquerque, New Mexico was up 23.3 percent over
last year (Nielsen, 52 week period ending Nov. 4, 2017, Total U.S. xAOC
+ Liq Plus). Tasting room expansions in Albuquerque and the opening of
the Gruet Bubble Bar at Level 5 in Albuquerque’s Hotel Chaco, as well as
the opening of the Gruet Santa Fe Tasting Room at the historic Hotel St.
Francis, bolstered sales regionally.
In Oregon, both Precept Wine’s premium offering, Battle Creek Cellars,
and its sub-$20 Oregon Pinot Noir, Primarius, continued triple-digit and
double-digit growth, up 120.2 percent and 38.6 percent, respectively, in
the past 52 weeks (Nielsen, 52 week period ending Nov. 4, 2017, Total
US xAOC + Liq Plus). Primarius has seen grown in the East Coast markets
while Battle Creek Cellars’ Unconditional Pinot Noir and the Reserve Pinot
Noir have seen gains in the Northwest. August marked the release of
the 2014 single-vineyard designate wines from Battle Creek Cellars’ Roe,
Yamhela and Battle Creek Vineyards.
Growth came from national on-premise accounts through the Grape &
Grain division. Highlights included a launch with PF Chang’s China Bistro
nationwide with the Browne Family Vineyards and launches with Landry’s
with the Marion-Field brand, which includes The Harrison Pinot Noir and
The Marion Pinot Gris, both from Oregon, and the Toby Tylor Cabernet
Sauvignon from Washington’s Walla Walla Valley.
Precept owns and maintains 5,000-plus vineyard acres across
Washington, Oregon, Idaho, New Mexico and Australia. It operates six
wineries located in Walla Walla and Prosser, Washington; Albuquerque,
New Mexico; Dundee, Oregon; and one in Caldwell, Idaho.
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58 February 2018 WBM
14. Vintage Wine Estates
Pat Roney, President and CEO
ANNUAL U.S. CASE SALES VOLUME: 1.75 million
EMPLOYEES: 360
Vintage Wine Estates
continues to grow with
strategic acquisitions, most
recently announcing an
agreement to acquire three
wine brands from Jayson
Woodbridge: Layer Cake,
Cherry Pie and If You See
Kay. Layer Cake includes
nine varietals from regions
around the globe, all in
the $10 to $15 price segment, including Malbec from Argentina, an
Italian Primitivo, an Australian Shiraz and Chardonnay, and a Pinot Noir,
Sauvignon Blanc, Rosé and Cabernet Sauvignon from California. Created
in 2008, Cherry Pie is a Pinot Noir-centric brand. Layer Cake, Cherry Pie
and If You See Kay represent a portfolio of 450,000 cases.
In 2017, Vintage Wine Estates also purchased Cameron Hughes Wine,
a brand that pioneered the concept of selling limited series of premium
“lots,” much of it to Costco. That deal bolsters Vintage Wine Estates’
direct-to-consumer sales; Cameron Hughes has a surprisingly strong DTC
program despite not having a tasting room—all driven by ecommerce.
Vintage Wine Estates also purchased its first fine wine brand from
Oregon in 2017—Firesteed Cellars in the Willamette Valley, a 50,000-
case brand.
Vintage Wine Estates expanded its Mendocino facility in 2017,
constructing a 100,000-square-foot case warehouse and bottling facility at
its Ray’s Station winery near Hopland.
In 2016, Vintage Wine Estates acquired rights to market Middleton
Family Wines’ Clayhouse and Buried Cane brands, giving it a presence
in Paso Robles and in Washington state. Vintage Wine Estates also
purchased Delectus Winery of St. Helena, and entered the whiskey
business by acquiring a majority stake in Splinter Group Spirits and
created a partnership with HBO to make Game of Thrones-themed
wines: a Red Blend, Cabernet Sauvignon and Chardonnay.
Vintage Wine Estates is a privately held wine company. Its winery
estates and brands include Clos Pegase Winery, Cosentino Winery,
Girard Winery, B.R. Cohn Winery, Viansa Sonoma, Windsor Vineyards,
Cartlidge & Browne, Sonoma Coast Vineyards, Ray’s Station, Middle
Sister, Wine Sisterhood, Promis-Q-ous, Monogamy, Girl & Dragon,
Purple Cowboy and a number of others.

15. Francis Ford Coppola Winery
Steve Spadarotto, Chief Executive Officer
(Francis Ford Coppola Presents, LLC)
ANNUAL U.S. CASE SALES VOLUME: 1.7 million
The Coppola Family purchased a 100-acre
parcel in the Pine Mountain-Cloverdale
Peak American AVA this year, including
the 13-acre Silverwood Vineyard that
has contributed to Coppola’s Archimedes
wine, part of a strategic shift to focus on
vineyard acquisitions rather than only grower
contracts. Coppola also launched a spirts
project, Great Women Spirits Ltd., with gin,
vodka and brandy. The company deployed
a new digital marketing strategy, combining
the creative talents of the Coppola family
with a digital marketing emphasis, and
entered into strategic partnerships with the Academy Awards, the
Sundance Film Festival and others.
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Francis Ford Coppola often pushes the envelope on innovative
packaging and was early to put wine in cans with its Sofia brand
of sparkling wine. This year he unveiled the Diamond Collection of
Chardonnay, Pinot Grigio and Sauvignon Blanc in cans.
Francis Ford Coppola renamed and reopened his second Sonoma
County property, Virginia Dare Winery, at the site of the old Geyser
Peak Winery in September 2015. Virginia Dare Winery celebrates the
origins of early American winemaking, inspired by the myth of The
White Doe.
Steven Spadarotto was named CEO of Francis Ford Coppola Presents
in 2015, also spearheading Coppola Resorts, Coppola’s boutique hotel
properties in Belize, Guatemala and Basilicata, Italy. Café Zoetrope in San
Francisco and Mammarella’s Foods, a variety of premium organic pastas
and sauces, will also fall under his responsibilities.
Inglenook remains independent from FFCP’s operations.
Francis Ford Coppola Winery produces a variety of wines that can be
found nationally, primarily under the Diamond Collection, Sofia, Votre
Santé, Director’s, Director’s Cut and Gia labels. Eleanor and Archimedes
are small production Cabernet blend wines. Francis Coppola Reserve
wines are limited-production, single-vineyard designate wines.
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WBM February 2018 59
 16. C. Mondavi & Family 17. J. Lohr Vineyards & Wines
Peter Mondavi, Jr., Co-proprietor, Charles Krug Winery Steve Lohr, Chairman and CEO
ANNUAL U.S. CASE SALES VOLUME: 1.7 million ANNUAL U.S. CASE SALES VOLUME: 1.6 million
EMPLOYEES: 120 EMPLOYEES: 250

C. Mondavi & Family named J. Lohr Vineyards & Wines

Judd Wallenbrock as its new completed its all-white wine winery
president and CEO last summer, in Greenfield, California in 2016 and
succeeding interim CEO John now processes 100 percent of its
Lennon. Wallenbrock held several white grapes there. The San Jose
senior management roles at facility continues to serve as corporate
California wineries, including headquarters with additional
Robert Mondavi. Direct-to- production capacity if needed.
consumer sales continued to be Steve Doyle joined J. Lohr’s U.S.
a point of emphasis for Charles sales team this year as vice president,
Krug in 2017. U.S. sales.
Charles Krug, the first winery J. Lohr produces about 35 different
founded in Napa Valley in 1861, wines in four tiers of wines: The Signature Wines, such as J. Lohr and
is owned by the children and J. Lohr Estates; The Vineyard Series, a group of single-vineyard, single-
grandchildren of Peter Mondavi varietal wines; The Cuvée Series, a trio of blends, and The Gesture Series,
Sr., who passed away in early which are wines available only in the tasting room and online. In addition,
2016. CK Mondavi’s diversified the company still maintains Cypress Vineyards, Ariel non-alcoholic wines
portfolio includes luxury-priced and a series of export-only wines, including Painter Bridge.
Charles Krug and popularly priced CK Mondavi, made in much larger
quantities. CK Mondavi operates in a competitive segment of the market

Korbel
against a focused group of competitors and has redesigned its packaging
while emphasizing 750 ml bottles and de-emphasizing magnums. 18.
The Divining Rod launched three years ago and is themed around Marc
Gary Heck, President and Owner
Mondavi’s use of divining rods to channel energy and locate underground
ANNUAL U.S. CASE SALES VOLUME: 1.5 million
sources of water and is priced at roughly $15.
EMPLOYEES: 351
Purple Heart, launched in 2016 and benefiting the Purple Heart
Foundation, is dedicated to serving the unmet needs of military men,
After taking a price increase two years ago,
women and families.
Korbel’s sales volumes are increasing. The
Charles Krug produces roughly 90,000 cases.
sparkling wine category continues to do quite
well, up by roughly 7 percent this year.
Korbel conducts new promotional programs

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each month that center around flavors, cocktails
and sometimes seasonal specialty packaging with
wraps for its Extra Dry and Brut Rosé. This year,
one of those wraps involved magnums.
Korbel advertises consistently and continues
with television spots on NBC, Animal Planet, Bravo, E!, Univision,
BET, The Learning Channel, VH1 and others, a cross section for a wide
audience. Korbel is also increasing its emphasis on digital marketing.
Noteworthy this year is the Polar Splash commercial. The TV spot hinges
on a comedic misdirect and features an assumed star athlete swimmer
preparing to compete. However, it is revealed that he and his friends are
actually participating in a polar splash—jumping into cold water in winter
weather—then toasting the adventure with Korbel.

60 February 2018 WBM


In 2016, Korbel trademarked the name, “the official sponsor of brunch,”
and in the summer of 2017, Korbel California Champagne launched a
website billing itself as “the ultimate source for all-things-brunchable.”
“Brunch is big to Korbel, and the company is finding that Millennials
are really into brunch and not just brunch for breakfast,” said CEO Gary
Heck.
Korbel accounts for roughly 15 percent of the total sparkling wine
category and half of the premium méthode Champenoise category. As
the leader by volume in the domestic sparkling wine category, Korbel
markets sparkling wine with continual promotions, often involving
holidays and special occasions. The company is continually pursuing
creative ways to introduce consumers to sparkling wine, from sporting
events, such as golf or skiing, to distinctive packaging that coincides with
special occasions, to new sparkling wine-based cocktails on-premise.
Korbel was established in 1882. The Heck family has owned and
managed the company since 1954. Gary Heck has been with the company
for 51 years.
19. WX Brands
Oren Lewin, SVP Marketing & Strategy
ANNUAL U.S. CASE SALES VOLUME: 1.3 million
Founded in 1999, WX Brands (previously
Winery Exchange) develops exclusive
brands of wine, beer and spirits for
retailers around the world and offers
a portfolio of proprietary wine brands
that are sold globally. WX sources from
17 countries and sells in 12 countries,
producing more than 6 million cases.
Working with retail partners, the company
creates wine blends, brand names, packaging and marketing plans, as
well as manages production, compliance and distribution. The company
aims to be the preferred provider of exclusive brands or private labels.
WX also aims to acquire and grow unique national brands that aren’t
exclusive to a particular retailer and have growth potential. Those brands
accounted for roughly 1.3 million cases in 2017.
WX has made a number of brand acquisitions in the past three years.
The largest national brands it sells include Bread & Butter, which it
acquirin 2017, and Jameson Ranch Vineyards and its portfolio of wine
brands: Double Lariat, Reata, Light Horse and Whiplash. WX purchased
Chronic Cellars in 2014. It also owns Our Daily Wines, the nation’s
leading organic and sulfite-free wine brand.
Wines are produced at a number of facilities under contract, and WX
has 10 winemakers on staff. WX also operates a bottling business. Kurt
Lorenzi, vice president of global sourcing, is the chief winemaker.
R E VIE W OF TH E I NDU STRY
20. Foley Family Wines
Bill Foley, CEO
1.2 million
ANNUAL U.S. CASE SALES VOLUME:
ANNUAL GLOBAL CASE SALES VOLUME: 1.7 million
EMPLOYEES: 400
Foley Family Wines has grown
rapidly through a series of
acquisitions over the past decade,
and Bill Foley, who founded the
national title insurance company
Fidelity National, is now the
principal owner of the NHL’s newest
hockey team, the Las Vegas Golden
Knights, his latest venture.
Foley recently named Hugh Riemers chief administrative officer for
Foley Family Wines, then named him president of the company. Riemers,
a winemaker from Australia, had served as president of Jackson Family
Wines and prior to that was with Constellation Wines.
Courtney Foley, the youngest daughter of Bill and Carol Foley, is
currently winemaker for Foley Sonoma in Alexander Valley, the facility
that previously housed Stryker Sonoma Winery. Patrick Foley is
winemaker at Foley Johnson in Napa, the winery that previously housed
Sawyer Cellars.
Foley Family Wines also operates in New Zealand, where it is
purchasing Mt Difficulty Wines, one of the country’s flagship wineries.
Foley Family Wines purchased Chalone Vineyard from Diageo in 2016,
acquiring the historic Monterey County winery and 1,000-acre property
with 240 acres of vines founded by Richard Graff and Philip Woodward
in 1972. Foley Family Wines owns about 3,000 acres of vineyards.
Bill Foley also owns a stake in distribution venture Epic Wines. Epic
Wines owns an import company that is affiliated with Foley’s national
sales force.
Foley Family Wines owns The Four Graces Winery in Oregon’s
Willamette Valley.
Foley Family Wines was established in 1996 with the purchase of
Lincourt Vineyards in Santa Barbara County. Foley then founded Foley
Estates Vineyard and Winery in the Santa Rita Hills appellation of Santa
Barbara County. In 2007, he purchased Ashley’s Vineyard, formerly
owned by Fess Parker, in the Santa Rita Hills, which was followed by
Firestone Vineyard in Santa Ynez Valley, as well as its sister winery in Paso
Robles. Foley Family Wines owns Three Rivers Winery in Walla Walla,
Washington, Merus in Napa, Sebastiani Vineyards & Winery and Chalk
Hill Estate Vineyards & Winery in Sonoma, a majority stake in Napa’s
Kuleto Estate and EOS Estate Winery on the Central Coast.
WBM February 2018 61
 21. Don Sebastiani & Sons
Donny Sebastiani, Jr., President and CEO
ANNUAL U.S. CASE SALES VOLUME: 1.1 million
EMPLOYEES: 90

In addition to focusing on its core

portfolio, Don Sebastiani & Sons
expanded into the bottled water
business, started importing a line of
three super-premium tequilas and
diversified into specialty snack foods.
A new division features healthy,
flavored, dry-roasted nuts made with
natural ingredients. The company has
also been expanding its private label
wine business. Among its newest
brands is The Big Smooth, a line
of two Lodi Zinfandels and a Lodi
Cabernet Sauvignon.
The Don Sebastiani & Sons portfolio of wines includes New House
Vintners, focused on small-lot, appellation-driven winemaking, including
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Don & Sons Sonoma Signature Series Pinot Noir, Sivas-Sonoma, The
Crusher (Clarksburg), Il Donato (Italy), Gunsight Rock (Paso Robles),
Simple Life (Clarksburg) and Americano, along with Delish Sauvignon
Blanc, Queens Peak Sonoma County Cabernet Sauvignon and Custard
Sonoma Valley Chardonnay.
Don Sebastiani’s grandfather started what is known today as Sebastiani
FAMILY OF TANK Vineyards & Winery and began running his grandfather’s company in
CLEANING PRODUCTS 1986. He stepped down in 2000 to create a new wine company and soon
recruited his two sons, Donny and August, to assist him in the creation of
Don Sebastiani & Sons. Donny Sebastiani, Jr. now leads Don Sebastiani &
Sons while August leads 3 Badge Beverage Corporation, a sizable wine
company in its own right (formerly known as The Other Guys).

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62 February 2018 WBM

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 R E VIE W OF TH E I NDU STRY

22. Rodney Strong Estates

Carmen Castaldi, President
ANNUAL U.S. CASE SALES VOLUME: 950,000
EMPLOYEES: 180
Rodney Strong Wine Estates, which is
all about Sonoma County, farms some
1,400 acres from 14 different estates,
and is focused on expanding the luxury
end of its business.
Upshot is Rodney Strong’s newest
wine, a high-end Red Blend brand,
launching nationally at about $25, and
is sourced from vineyards in Sonoma
County, predominantly Alexander Valley
and Knights Valley. Upshot is a blend
of Zinfandel from Hubbard Ranch with
Merlot, Malbec and Petit Verdot.
Rodney Strong Wine Estates hired Anthony Capobianco as vice
president, off-premise national accounts in 2017, expanding its
commitment to off-premise chains.
Proprietor Tom Klein’s family has been farming for more than 100
years in the Stockton, California area and has a diversified family farming
business, growing nuts, fruits and vegetables. The business also sells
grapes to other wineries. The winery was founded in 1959 by Rodney
Strong. The Klein family purchased Rodney Strong Vineyards from
Guinness, the Irish brewing company, in 1989.
Rodney Strong Wine Estates promoted senior vice president Carmen
Castaldi to president in 2016. He joined Rodney Strong in 2005. Tom
Klein continues as chairman.
Rodney Strong Vineyards makes six varietals and about 20 different
wines, all of them from Sonoma County. More than half of the company’s
wines come from its own estate vineyards. Rodney Strong Wine Estates
also includes the Davis Bynum brand. Davis Bynum, a former journalist
who turned his home-winemaking passion into a pioneering Sonoma
County winery, passed away this year at 92. Rodney Strong has owned the
brand since 2007.
Rodney Strong grows and produces wines exclusively from four Sonoma
County appellations: Alexander Valley, Russian River Valley, Chalk Hill and
Sonoma Coast. The winery was founded in 1959 by Sonoma County wine
pioneer Rodney D. Strong as the 13th bonded winery in the county.

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ANNUAL U.S. CASE SALES VOLUME: 900,000
EMPLOYEES: 250

Duckhorn Vineyards finished up its first full year of leadership under

a second private equity firm in 2017. GI Partners monetized its 2007
Up to investment with the sale of the business to TSG Consumer Partners in
5 times less
August 2016. Duckhorn has been growing very rapidly; the winery was
dissolved
oxygen producing 120,000 cases at the time that GI Partners purchased the
company.
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TRULY INNOVATIVE CUSTOM WINE SERVICES While it has always grown organically, Duckhorn purchased its first
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Calera was founded by Josh Jenson in Hollister, California in 1978.
CUSTOM Central Coast Expertise Wine Spectator named Duckhorn Merlot Napa Valley Three Palms
CRUSH $30 Million State-of-the-Art facility Vineyard 2014 as its “2017 Wine of the Year.”
Duckhorn comprises six brands: Duckhorn, Paraduxx, Goldeneye,
Migration, Decoy and Canvasback, a venture on Red Mountain in
SHINER 60+ On-Going Domestic & Washington state that launched in 2012. Decoy, a second label that
PROGRAM International Wines provides a Duckhorn product at a more affordable price, continues to
grow very rapidly, now accounting for about half of production.
Alex Ryan began working at Duckhorn Vineyards during summer
vacations from high school in 1981. He joined the winery after attending
GLOBAL Sourcing wine spanning over 9 college, moving up through the ranks in the vineyards and in production,
PORTFOLIO different countries ultimately becoming CEO and president.
Founded by Dan and Margaret Duckhorn in 1976 with a first vintage
in 1978, Duckhorn was early to hang its hat on Merlot. Production grew
CREATIVE In-house Team with 10 awards from 1,600 cases of Cabernet Sauvignon and Merlot in 1978 to more
DESIGN from prestigious competitions than 20,000 cases in 2006. Beginning in 1988, Duckhorn purchased seven
estate vineyards on Howell Mountain and the Napa Valley floor, for a total
of 168 acres in Napa Valley, and four vineyards, totaling 153 acres in the
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64 February 2018 WBM

 RE V I E W O F T H E IN D US TR Y

24. Pernod Ricard USA

Jo-Anna Partridge, Vice President Operations,
Pernod Ricard Winemakers
ANNUAL U.S. CASE SALES VOLUME: 900,000
EMPLOYEES: 850 nationally (18,000 globally)

Paris-based liquor conglomerate Pernod

Ricard expanded its footprint in the U.S.
at the end of 2014 when the corporation
purchased the 600,000-case Sonoma
wine brand Kenwood Vineyards from
Korbel. Then the corporation invested
in Kenwood with upgrades to its
winemaking facility.
Kenwood’s strong presence in chain
accounts strengthened the corporation’s
presence in the U.S. market, in theory enabling increased distribution of
other premium wines and spirits. Kenwood was founded in 1970.
Pernod Ricard SA employs 18,000 people worldwide. It is the world’s
second-largest spirits and wines producer. Pernod Ricard USA, based
in New York, New York, has roughly 850 employees across the U.S. The
corporation’s spirits and wines include Absolut Vodka, Avión Tequila,
Chivas Regal, Glenlivet, Jameson Irish Whiskey, Malibu, Kahlúa
Liqueur, Aberlour Single Malt Scotch, Altos Tequila, Beefeater Gin,
and on and on. Wines include Brancott Estate, Campo Viejo, Graffigna,
Jacob’s Creek, Perrier-Jouët Champagne, GH Mumm Champagne and
Mumm Napa. TANNINS, YEAST NUTRIENTS,
MEGAZYME ASSAY KITS,
YEAST & BACTERIA
25. Boisset Collection
Jean-Charles Boisset, President
ANNUAL U.S. CASE SALES VOLUME: 875,000
ANNUAL GLOBAL CASE SALES VOLUME: 6.7 million
EMPLOYEES: 250 (1,000 globally)

At Boisset Collection, innovation is continual
and so are the newly-created, memorable
experiences. The focus is on high-end, super-
and ultra-premium wines. Among the new
offerings and highlights this year: a Chateau
Buena Vista Cabernet Sauvignon program;
the introduction of the Raymond Napa Valley
Reserve 40th Anniversary Cabernet Sauvignon
with a velvet label; the Secret Indulgence line
of wines introduced by Jean-Charles Boisset;
the release of Haute Couture sparkling wine; and the growth of Legend
Vineyard Exclusives, a partnership with John Legend.
Raymond Vineyards, part of the Boisset Collection, expanded its Napa
Valley vineyard holdings this year, purchasing neighboring Bartolucci
Vineyard with 47 acres planted. Boisset also closed on a 10-acre property
directly adjacent to Buena Vista—the hill behind the property. Guests
will now be able to see a view of San Francisco from the winery. The
wine country wildfires threatened Buena Vista in October; and while the
surrounding landscape burned, the winery emerged unscathed.
Last year Boisset opened The JCB Tasting Salon in Yountville, a
Napa Valley destination, “uniting wine with retail fashion and lifestyle
decadence.” The destination includes Atelier by JCB, “a gourmet
epicurean paradise featuring a curated assortment of artisan products
from the best purveyors in the world offering everything imaginable…”
Atelier by JCB carries hundreds of high-end products selected by Jean-
Charles Boisset.
Boisset purchased Wattle Creek Winery along with the newly
renovated Ghirardelli Square tasting room in San Francisco in 2016.

WBM February 2018 65

 Hess agreed to sell South African winery Glen Carlou at the end of
2016, continuing a strategic effort by the Hess family to streamline and
focus the business on areas in their portfolio that offer the greatest

26. O’Neill Vintners opportunity for growth in the U.S. Hess sold Peter Lehmann Wines of
Australia to Casella Family Brands in 2014. The Hess Collection also owns
& Distillers MacPhail Family Wines, a small winery in Sonoma focused on Pinot Noir
and six core vineyards.
Jeffrey O’Neill, Founder
ANNUAL U.S. CASE SALES VOLUME: 760,000
EMPLOYEES: 230
28. Michael David Winery
O’Neill Vintners & Distillers purchased Robert
Michael and David Phillips, Co-Owners
Hall Winery in Paso Robles, California in 2016,
ANNUAL U.S. CASE SALES VOLUME: 700,000
expanding into California’s Central Coast and in a
ANNUAL GLOBAL CASE SALES VOLUME: 800,000
category that is quickly growing. The company’s
EMPLOYEES: 180
core national brands include Line 39, Austerity,
Harken and Camelot Vineyards & Winery.
The company has been focused on national Michael David Winery,
distribution of these brands with big retail chains. owned by Michael and
O’Neill Vintners & Distillers acquired Cecchetti Wine Company in 2014, David Phillips, continues
combining the winemaking and sales functions of their respective national to grow. This year, the
wine brands. The combined portfolio includes Cecchetti brands Austerity, winery, which is based in
Backhouse, Line 39 and Redtree, as well as O’Neill labels Camelot and Lodi, purchased a winery in
Allegro Moscato. Line 39 is the big horse. The newest brand is a barrel- Geyserville from Silver Oak
fermented Chardonnay, Harken. Cellars. The sale provided
Through its extensive vineyards and modern production facilities, Michael David Winery its first
O’Neill provides premium winemaking services to the industry, as well as property in the North Coast
its growing portfolio of proprietary brands and control labels. When one region. The sale included the
counts those additional labels, the company’s volume is more than 1.125 winery, which is permitted
million cases. O’Neill Vintners & Distillers was founded in 2004 by Jeff for 70,000 cases annually,
O’Neill, former CEO of Golden State Vintners. and a 12-acre vineyard of
Cabernet Sauvignon grapes.
Michael David will not
immediately open a tasting
27. Hess Family Wine Estates room at the site because
it first wants to build its
Timothy Persson, Chief Executive Officer
Sonoma County wine
ANNUAL U.S. CASE SALES VOLUME: 750,000
portfolio. The vision is to
ANNUAL GLOBAL CASE SALES VOLUME: 900,000
create a Sonoma County- or
EMPLOYEES: 167 (400 globally)
Alexander Valley-focused brand under the Michael David umbrella.
Located on the west side of Lodi, California, Michael David Winery is
Hess Family Wine Estates continues to build on the run by brothers Michael and David Phillips from a family that has farmed
momentum of luxury wines such as Hess Collection in Lodi for five generations. The winery operation was started in 1984 in
Lion Tamer Red Blend, and with prestige wines The an old hay barn and was named Phillips Vineyards. That changed in 1999
Lioness Chardonnay and The Lion. Next, Hess is after legal disputes over the name with R.H. Phillips Winery and Phillips
launching The Panther Chardonnay, sourced from the Distributing of Minnesota. The winery then became Michael David
Russian River AVA. The Small Block Series highlights Winery. The brothers were soon brainstorming for marketing names, and
specific blocks from Mount Veeder, Napa Valley one of the names they came up with was 7 Deadly Zins, for their blend of
and other unique vineyards. Built around the needs old vine Zinfandel grapes that was being supplied to the winery by seven
of restaurants, the Hess Collection Shirtail Creek different Lodi growers.
Vineyard Chardonnay and Shirtail Ranches Cabernet The winery’s brands include 7 Deadly Zins, Michael David, Earthquake,
Sauvignon are making strides. Incognito (for Kroger), 6th Sense, Lust, Rapture, Petite Petit and
Hess has expanded the Select range, its key commercial range focused Gluttony. The family farms about 800 acres and sources most of its
on six wines with new packaging under development, featuring premium production from Lodi.
cues to the heritage of the family behind the wine.

66 February 2018 WBM

 R E VIE W OF TH E I NDU STRY

29. Domaine Chandon Estates & Wines (Moët Hennessy USA)

Arnaud de Saignes, Managing Director, Chandon California
ANNUAL U.S. CASE SALES VOLUME: 675,000 (WBM Estimate,
includes Newton)
Napa Valley’s Domaine Chandon is part of
Estates & Wines, the wine division of Moët
Hennessy USA. In addition to U.S. brands
Chandon and Newton Vineyard, Estates &
Wines owns Cloudy Bay Vineyards from New
Zealand, Terrazas de los Andes and Cheval
des Andes from Argentina, and Numanthia
from Spain. Chandon continues to build on its
legacy with sparkling wine.
Arnaud de Saignes was recently named the
managing director of Chandon. He previously ran global marketing and
communications for Moët and Dom Perignon.
Pauline Lhote was promoted to head winemaker in 2016. Lhote,
who was born in the Champagne region, just completed her 13th
harvest at Chandon and was featured in this year’s Wine Enthusiast
“40 under 40” list.
In late 2017, Colgin Cellars owners, Ann Colgin and husband Joe
Wender, agreed to sell 60 percent of their Napa Valley winery to LVMH.
The deal includes the brand, the winery and its 26 acres of vineyards.
Colgin and Wender will stay on in leadership roles, as will COO Paul
Roberts, and winemaker Allison Tauziet will continue to make the wines.
Newton Vineyard celebrated its 40th anniversary in October 2017,
and introduced three single-vineyard Cabernets (from Spring Mountain,
Yountville and Mt. Veeder) this year, permanent additions to its line.
Newton also has a new team. Winemaker Rob Mann returned to Western
Australia with his family, and Alberto Bianchi was promoted to head
winemaker (he was on the winemaking team at other Moët Hennessy
wineries, including Cloudy Bay in New Zealand). Newton’s new estate
director, Jean-Baptiste Rivail, previously worked for Hennessy. New
hospitality manager Mario Dussurget was previously with Cloudy Bay.

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 Series DR
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Bill Terlato, Chief Executive Officer
ANNUAL U.S. CASE SALES VOLUME: 650,000

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30. Wente Vineyards
Carolyn Wente, Chief Executive Officer
ANNUAL U.S. CASE SALES VOLUME: 650,000
ANNUAL GLOBAL CASE SALES VOLUME: 740,000
EMPLOYEES: 550
Founded 135 years ago, Wente Vineyards is the
country’s oldest, continuously operated, family-
owned winery. Today, the winery is owned and
managed by the fourth and fifth generations of
the Wente family.
Located just east of San Francisco in Livermore
Valley, Wente Vineyards is recognized as a
premier destination, with fine dining, concerts
and championship golf. Brands include Wente
Vineyards, Murrieta’s Well, Hayes Ranch and
Entwine. The winery also produces bulk and
custom crush wine for other wineries. Wente farms approximately 3,000
acres of estate vineyards in Livermore and Monterey, and continues to
replant and plant new vineyards to fuel growth.
famed 120-acre Klipsun Vineyard
on Red Mountain in Washington
state this year and has plans to
plant 20 more acres.
Sandra LeDrew, previously
managing director for Treasury
Wine Estates Americas, was named
president, winery operations
and chief development officer of
Terlato Wine Group in 2017, with
responsibility for Terlato wineries
globally, including California holdings and wine ventures in France, Italy
and Australia. She will also oversee production of the Federalist, Seven
Daughters and Terlato Family Vineyards brands.
The Federalist and Seven Daughters have become break-out successes.
The Federalist brand includes several wines, including a new bourbon
barrel-aged Zinfandel and a high-end blend made in Sonoma, The
Federalist Dueling Pistols. The company continues to see strong double-
digit growth.
The Terlato family entered the wine business more than 75 years ago
with a single retail store in Chicago, went on to become major distributors
in Illinois, started importing wine then started exporting wine, becoming
winery owners and vineyard developers. The distribution business was
sold in 2002. Today, the company focuses on sales and marketing,
operating five divisions that sell roughly 2 million cases of wine and spirts
each year. The wineries and wine brands it owns in the U.S. produce some
650,000 cases of wine, including Chimney Rock and Rutherford Hill in
Napa, and Sanford in Santa Barbara.
Terlato has five different divisions: Premier for the larger consumer
brands; Estate for the estate-grown brands; Crew, the high-end division
for Burgundies and a couple of selected estates; the Artisan Spirits
portfolio, owned jointly with Distell Group; and the international division,
as the name implies, which sells products around the world. Each is
separately staffed and specialized with a focus on their respective brands.

68 February 2018 WBM

 RE V I EW O F T H E IN DUS TR Y

32. Riboli Family

Wine Estates
Steve Riboli, Vice President
ANNUAL U.S. CASE SALES VOLUME: 625,000
EMPLOYEES: 150

The Riboli family has operated San

Antonio Winery in Los Angeles
for more than 100 years. During
Prohibition, the winery made
sacramental wine, a niche that is still
important to the winery. San Antonio
is the only winery in downtown Los
Angeles. Fine wine labels include
Maddalena, San Simeon, Riboli
Family Wine Estates, San Antonio
Winery, Opaque from Paso Robles
and Windstream from the Santa
Lucia Highlands.
Riboli Family Wines created Stella Rosa 15 years ago, an imported, low-
alcohol, semi-sweet sparkling wine from northern Italy that annually sells ES. OF USA Annuncio BOIS TR.indd 1 19/12/17 17:03

about 1.2 million cases.

The Riboli family has expanded in Paso Robles, where a new winery
was constructed and a couple hundred additional acres of vineyards
were planted. The Riboli family farms about 600 acres of vineyards and A Package
operates three tasting rooms, one in Los Angeles, another in Ontario and
the third in Paso Robles. Speaks a
Thousand
33. Scheid Vineyards Words
Scott Scheid, President and CEO Let your wines speak
ANNUAL U.S. CASE SALES VOLUME: 580,000 directly to their target
markets through
The Scheid family farms 4,000 acres of premier packaging.
grapes, sells grapes and operates a large
custom crush facility, while also making
wines for its own brands. Scheid owns 11
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Winery offers luxury-level winemaking on a
large scale with state-of-the-art technology.
The company is planning a major new custom bottling facility. While East Coast West Coast
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WBM February 2018 69


Cooper’s Hawk Winery
34.
& Restaurants
Tim McEnery, CEO and Founder
ANNUAL U.S. CASE SALES VOLUME: 570,000
EMPLOYEES: 4,000
Cooper’s Hawk Winery & Restaurants is built on the belief that food
and wine hold the power to forge lasting connections. It’s a lifestyle
brand focused on creating memorable moments. The concept combines
familiar elements—winery, modern casual restaurant, tasting room
and artisanal retail market—for a new hospitality experience aimed at
creating community.
Since opening its first location in 2005, about 30 minutes south of
Chicago, the business has evolved to include 30 locations in eight states
in the Midwest, Northeast and in Florida, with plans to open five more
locations this year.
The business has grown to the point that it has more than 287,000 wine
club members receiving a bottle a month, making it the largest wine club
in the U.S. The club combines retail wine discounts and a loyalty program
with events, and includes a travel platform for club members. Most
members pick up their wines at a Cooper’s Hawk location.
Last fall, Cooper’s Hawk expanded and relocated its winery, bottling
facility and warehouse to Woodridge, Illinois to keep pace with its
growth. The new 125,000-square-foot winery supports an initial capacity
of 685,000 cases, with room to grow, including a 60,000-square-foot
warehouse that can store 300,000 cases. Production has increased by
nearly 40 percent in the last three years and more than doubled since the
previous facility opened in 2010.
Cooper’s Hawk produces 47 different varietals and 12 wine-of-the-
month wines. Wines are mostly from California but also are sourced from
vineyards in Washington, Oregon, New York, Chile, Argentina, France
and Italy. Wines have also been made in exclusive partnerships and
collaborations with Jean-Charles Boisset and Francis Ford Coppola.
The average unit volume of a Cooper’s Hawk location is $9.3 million.
“People enjoy the realness of it and that there’s no tricks,” CEO and
founder Tim McEnery said. “It’s a special and unique experience. We’re
very proud of what we’ve accomplished.”
70 February 2018 WBM
35. Mesa Vineyards
Patrick Prendergast, Owner
ANNUAL U.S. CASE SALES VOLUME: 550,000
EMPLOYEES: 38
Mesa Vineyards was founded in Fort Stockton, Texas in 1984 and built by
a French company with the support of the University of Lands systems.
Pat Prendergast, a veteran of E&J Gallo and Universal Wine Network,
purchased the winery in 2005. Jean-Michel Duforat, executive manager
of Ste Genevieve Winery, has been with the winery since its inception.
Ste Genevieve is the main brand, accounting for nearly 400,000 cases,
and the winery also crushes fruit for others. Three-quarters of sales are
within Texas, so the winery has considerable room to grow outside of
the state. The winery produces everything, from Chardonnay, Merlot and
Cabernet Sauvignon to Sweet Moscato and red and white blends simply
known as Red or White. About 60,000 cases made each year are Texas-
appellated.
Wines of Substance
36.
Charles Smith, Chief Executive Officer
ANNUAL U.S. CASE SALES VOLUME: 550,000 cases
EMPLOYEES: 47
Charles Smith, a former rock band manager, has had an amazing ride
since moving to Walla Walla, Washington
and releasing 330 cases of his first wine
in 2001, the 1999 K Syrah. A little over a
year ago, he sold Charles Smith Wines,
including five brands (Kung Fu Girl Riesling,
The Velvet Devil Merlot, Boom Boom!
Syrah, Eve Chardonnay and Chateau Smith
Cabernet Sauvignon) to Constellation
Brands for approximately $120 million.
The deal included no assets. Even after the sale, Smith still had a wine
company that produced roughly 550,000 cases in 2017. Smith continues
to assist Constellation Brands in producing the wines under a consulting
agreement as winemaker.
The K Syrah Walla Walla Valley Powerline Estate 2014 was ranked as #2
on Wine Spectator’s 2017 Top 100 list.
Charles Smith’s wine brands include K Vintners, Wines of Substance,
Casa Smith, SIXTO and Charles & Charles—his joint venture with Charles
Bieler in partnership with Trinchero Family Estates.
Smith makes wines at four facilities. His newest winery is in Seattle,
called Jet City, and is where he makes his higher-end wines.
 R E VIE W OF TH E I NDU STRY

37. NakedWines.com
Ferrari-Carano marked its 35th anniversary in 2017, releasing its first
Nick Devlin, President, U.S.
nationally-distributed Rosé, the 2016 Dry Sangiovese Rosé. Vintners Inn,
ANNUAL U.S. CASE SALES VOLUME: 515,000
Ferrari-Carano’s resort property in Santa Rosa, opened River Vine Café,
a new, onsite breakfast/lunch restaurant and event space. Additional
Naked Wines is an online wine
openings are slated for 2018 at Vintners Inn. In January 2018, Ferrari-
retailer founded in the U.K. in 2008
Carano will release the 25th anniversary Siena, the Sangiovese-based red
by Rowan Gormley, employing
wine blend.
a unique spin on crowd-sourcing.
Ferrari-Carano Vineyards and Winery recently hired winemaker Thomas
Customers, called Angels, fund
Rivers Brown to consult on its Cabernet Sauvignon program.
independent winemakers from
around the world in return for wines
at wholesale prices. The wine is
shipped in the U.K., the United
States and Australia. Naked Wines
39. Hahn Family Wines
was acquired by Britain’s largest Philip Hahn, Chairman
wine merchant, Majestic Wine, ANNUAL U.S. CASE SALES VOLUME: 430,000
three years ago.
Naked Wines is a collective team Nicolaus (Nicky) Hahn’s commitment to
of winemakers that are given great freedom in the winemaking space. Monterey’s wines began 30 years ago.
Funding independent wine ventures to create a portfolio of wines that Hahn Family Wines is a family-owned
is unique in its offerings allows winemakers to express their passion, the winery located in the Santa Lucia
company reports. Highlands appellation of Monterey
Nick Devlin, previously with Majestic Group, took the helm at Naked County, California. Nicky and Gaby Hahn
Wines last January. Devlin reports that Naked Wines now has more than purchased land in Monterey County in
116,000 angels. The company moved to a new facility in Napa Valley the late 1970s and have made wine there
earlier this year. Nakedwines.com currently works with about 30 American since 1980. Nicky Hahn spearheaded
winemakers and more than twice that globally. efforts to establish Santa Lucia Highlands
as an American Viticulture Area. Hahn
Family Wines owns one of the largest

38. Ferrari-Carano Vineyards shares of planted vines in the region,

equaling more than 650 vineyard acres.
and Winery A few years ago, Hahn Estates was a
medium-sized winery, but it grew to more than 400,000 cases with the
Rhonda Carano, Senior Executive Officer and Manager success of the Rex Goliath, which was sold to Constellation Brands in
ANNUAL U.S. CASE SALES VOLUME: 450,000 2004. Cycles Gladiator, another brand from Hahn that grew quickly, was
also sold to Constellation.
Rhonda Carano, co-founder of Hahn’s brands include Hahn SLH, Hahn, Lucienne, Smith & Hook and
Ferrari-Carano Vineyards and Boneshaker.
Winery, alongside her late husband
Don Carano, assumed the position of
senior executive officer and manager
for the Ferrari-Carano family of
brands. Don Carano passed away on
October 3, 2017.
The Caranos fell in love with
Sonoma Wine Country in the late
1970s on trips to source wines for
their hotel/casino, the Eldorado
Resort Casino. They co-managed the
company from its inception in 1981.
Rhonda Carano brings 40 years
of experience in business management, marketing, advertising and
creative design from Eldorado Resorts Inc., Ferrari-Carano Vineyards and
Winery, Lazy Creek Vineyards, Seasons of the Vineyard Tasting Bar and
Boutique and Vintners Inn and John Ash & Co. Restaurant.
WBM February 2018 71
 40. Duplin Winery
David Fussell, Chief Executive Officer
ANNUAL U.S. SALES CASE VOLUME: 421,000
Many people don’t realize there’s a winery in North Carolina that makes
more than 400,000 cases each year, but Duplin Winery has been focused
on the Muscadine vines that are native to the state for decades.
Duplin began in the early 1970s with 20 acres of Muscadine vineyards
planted as a farming investment when demand and prices were high for the
variety. By the time the vines were producing, however, prices plummeted
as a tax incentive for farmers to grow those grapes evaporated.
Facing a loss, Duplin Winery founder Dave Fussell, Sr. turned to selling
finished wines. The first vintage was in 1975. Over time, the winery
expanded. It now produces 40 wines and farms more than 1,200 acres
of grapes between estate vineyards and 49 contracted growers across
four states. Leading wines include Hatteras Red (a sweet Muscadine),
Magnolia (a white Muscadine) and Scuppernong.
By 1983, production levels reached 200,000 gallons per year. However,
the rest of the decade would prove disastrous for the winery. Changes in
Castle Rock continues to follow the course it has been on for the last
couple of years, expanding into the national retail chains. A significant part
of its recent growth has also come via the cruise line and airline businesses.
The company, which runs a lean ship, has also added sales people this
year to drive growth. Winemaker Eric Laumann is into his fourth year with
the company. The company has been refocusing on the restaurant by-the-
glass business. There are perhaps 5,000 restaurants across the country
pouring Castle Rock wines by the glass.
This year, Castle Rock introduced a Rosé of Pinot Noir, and high scores
helped push sales along. Pinot Noir remains Castle Rock’s flagship,
representing 65 percent of annual sales.
42. A to Z Wineworks
Sam Tannahill, Founder and Director of Viticulture and Winemaking
ANNUAL U.S. SALES CASE VOLUME: 400,000

tax laws and new legislation resulted in plummeting sales. EMPLOYEES: 62

The winery bounced back. In 2009, Duplin Winery received Impact’s

Hot Brand Award and Beverage Information Group’s Fast Track Award. A to Z Wineworks was started in 2002
In 2010 and 2011, the winery received both awards for the second year in by Oregon wine industry veterans Deb
a row. Hatcher (The Eyrie Vineyards), Bill
The third generation took the helm at Duplin Winery in the early Hatcher (Domaine Drouhin, Oregon),
2000s. Most recently, the winery opened a location in North Myrtle Sam Tannahill (Archery Summit Winery)
Beach, South Carolina. and Cheryl Francis (Chehalem Winery).
They purchased bulk wine and made
a blend that was named by Food &

Castle Rock Winery

Wine magazine as the Best American
41. Pinot Noir under $20. Then they
did it again, and again, and again.
Greg Popovich, Founder and President
Recognition grew, and production did
ANNUAL U.S. SALES CASE VOLUME: 400,000
too. In 2006, the group brought in
EMPLOYEES: 11
Oregon wine veteran Michael Davies
as winemaker and also partnered with
Castle Rock Winery sources the vast majority Gregg Popovich, coach of the NBA’s
of its fruit via long-term grape contracts. San Antonio Spurs, to buy a production facility, REX HILL Vineyards
Castle Rock sells limited quantities of many and Winery.
different appellation-specific wines, including A to Z has worked with more than 100 vineyards across Oregon, offering
Cabernet Sauvignon and Merlot from Napa assistance to achieve sustainability certification. A to Z is distributed in
Valley and Pinot Noir from the Russian River. 50 states and is still majority-owned by the four founding partners. The
Timing played a role in Castle Rock’s company continues to invest in its facility. A to Z leases or owns about 300
success. The brand started as many in the acres total, sourcing from more than 4,000 acres in the state. One of the
trade were emphasizing more expensive bedrocks of its success is good relationships with growers.
wines and was well-positioned when the
emphasis among many shifted to value. The
brand was also well-positioned when sales
of Pinot Noir surged because it was already
producing quality Pinot Noir at low prices.

72 February 2018 WBM

 R E VIE W OF TH E I NDU STRY

43. King Estate Winery 45. Crimson Wine Group

Ed King III, President Patrick DeLong, President and Chief Executive Officer
ANNUAL U.S. SALES CASE VOLUME: 400,000 ANNUAL U.S. CASE SALES VOLUME: 375,000
EMPLOYEES: 100 EMPLOYEES: 300

Perhaps best known as one Based in the Napa Valley, Crimson

of the leading Pinot Gris Wine Group owns more than 870
producers in the country, King acres of vineyards across five regions.
Estate Winery is among the In addition to Pine Ridge Vineyards,
largest independent wineries in Crimson owns Seghesio Family
Oregon. Acrobat, the winery’s Vineyards in Healdsburg, California;
second label, accounts for Archery Summit Winery in Oregon;
nearly half of its production. Chamisal Vineyards in San Luis
The winery was founded in Obispo, California; and Double Canyon
1991 by Ed King, Jr. and his Vineyard in Prosser, Washington.
son, Ed King III. The estate The company was founded by Ian
itself, at 1,033 acres, includes Cumming and Joseph Steinberg,
470 acres of organic vineyards, founders of Leucadia National
as well as 30 acres of fruits, Corporation, a conglomerate and investment holding company. They
vegetables and flowers. got involved through an investment with Pine Ridge in 1991 and an
King Estate has 470 acres investment in Archery Summit in 1993. In 2002, Leucadia purchased all
planted under vine, primarily of Pine Ridge and Archery Summit. Then in 2006, they purchased 600
to five different clones of Pinot Gris and 16 different clones of Pinot Noir. acres in Washington state and in 2007 put together a management team
There is also Riesling, Muscat and Gewürztraminer grown on-site. that’s since been involved in additional winery acquisitions. In 2016, the
company acquired Seven Hills Winery in Walla Walla, Washington.
Crimson is focused on each of its wineries being considered best of

Oliver Winery & Vineyards

class or the benchmark for their respective regions and specific varieties.
44. Construction of the Double Canyon winemaking facility in Washington
was completed in time for the 2017 harvest. A two-year-long project, it is
Bill Oliver, CEO
the first new facility the company has built from scratch since its inception.
ANNUAL U.S. CASE SALES VOLUME: 400,000

Founded by Indiana University

law professor William Oliver,
Oliver Winery is the largest
winery in Indiana. William
Oliver was instrumental in
getting the Indiana Small Winery Act of 1971 passed into law. Oliver
Winery opened to the public in 1972.
Oliver Winery offers a huge variety of wines, growing hybrids, native
grapes and vinifera on its own 40-acre Indiana vineyard, as well as
bringing in grapes from California, Oregon and a number of other
regions. The winery offers an extensive list of honey wines and a few hard-
fruit ciders.
This year caps a three-year rebranding and redevelopment project
focused on relevant products that are well branded but are not
Chardonnay or Cabernet. Oliver Winery is a player in the sweet wine
world, with recent product introductions such as Apple Pie, Cherry
Juice Moscato, and a whole host of other sweet and semi-dry wines and
sparkling wines.

WBM February 2018 73

 46. Purple Wine + Spirits 47. Scotto Cellars
Derek Benham, CEO Anthony Scotto III, Chief Executive Officer
ANNUAL U.S. SALES CASE VOLUME: 375,000 ANNUAL U.S. CASE SALES VOLUME: 375,000
EMPLOYEES: 60 EMPLOYEES: 50

Purple Wine Company is The family behind Scotto Cellars

affiliated with Purple Wines has been involved in the wine
+ Spirits, previously known business for five generations,
as Sonoma Wine Company, although the business in its
which makes wine on a contract present form really started about
basis, with capacity to produce 15 years ago. Anthony Scotto
4 million cases each year. The started the business with his
company makes more than 2 grandfather, who owned a jug
million cases of wine a year wine brand for 60 years, Villa
for dozens of clients via three Armando Vino Rustico, a fortified
North Coast wineries. wine that’s been made since the
Purple’s wine brands include 1940s. The Scotto family is one of
Raeburn Chardonnay, Flint & the few that still produces wine
Steel Sauvignon Blanc, Calista sold in a 4-liter jug, a wine that’s
Pinot Noir, Avalon, Four Vines sold in stores in New York, New
and Cryptic for key accounts. Jersey, Connecticut, Rhode Island
Since selling the Mark West Pinot Noir brand to Constellation Wines and Massachusetts.
in 2012, Purple Wine Company has been regrouping and laying out the While keeping Villa Armando Vino Rustico going, Scotto launched other
course for the future with an eye toward new brands, including a foray labels. The core brands include J. McClelland wine, now in its second
into craft spirits. The company now produces wine under its brands, vintage, Heavyweight, Napa-by-Napa, Scotto Family Cellars, as well as
though it makes controlled label and private label wines too. Purple Anthony & Dominic North Coast Pinot Noir and Chardonnay. Scotto
Wine Company’s sister company, Graton Distilling Company, makes D. Cellars is growing its brands in retail chains.
George Benham’s Sonoma Dry Gin and recently launched a new craft The company operates a winery in Lodi, California, a tasting room in
whiskey, Redwood Empire American Whiskey. downtown Lodi, Sera Fina Cellars in Plymouth, and leases a small winery
Derek Benham started Purple Wine Co. in 2001 when his brother, in Napa Valley, Moss Creek Winery, all part of the portfolio.
Courtney, and he sold the Blackstone brand to Constellation Brands
reportedly for $144 million. Benham built Purple Wine up with largely
with the Mark West Pinot Noir, plus the Avalon, BEX, Blue Jean and
Rock Rabbit brands, joined by Four Vines in late 2011. When Mark
West reached 600,000 cases a year, or more than half of Purple Wine’s
production, Benham sold it to Constellation.
Chief financial officer Aaron Webb was named president of Purple Wine
48. Cline Family Cellars
Company at the end of 2016. Fred Cline, Owner
ANNUAL U.S. CASE SALES VOLUME: 370,000

After meeting during college,

Fred and Nancy Cline started
a small winery in Oakley,
California made to focus on old
vines, working with Rhône-style
varietals, as well as Zinfandel.
In 1993, they moved the winery
to a 350-acre ranch in Sonoma’s
Carneros Valley, planting Merlot,
Chardonnay, Pinot Noir and
Syrah. They opened a tasting

74 February 2018 WBM

R E V I E W O F T H E IN D U S TR Y

Vintners
room in the 1853 farmhouse, and renovated the grounds to highlight the
history and pastoral beauty of the property.
The Clines now own many acres of vineyards in Sonoma County, Oakley We are the trusted
and Tehama County. They also operate Jacuzzi Family Vineyards, a advisor for
tribute to Fred Cline’s maternal grandfather Valeriano Jacuzzi, one of 100+ wineries.
seven brothers who were involved in aviation and water pumps—as in
the “Jacuzzi.” Jacuzzi Family Vineyards makes Italian varietals such as Call us today
Montepulciano, Sangiovese, Lagrein and Barbera. The winery opened in to find out why!
2007 across the street from Cline Cellars and is modeled on the Jacuzzi Contact:
family home in northern Italy. Liz Bishop, Debra Costa
and Brian Stephenson
at 707.789.3064

550 Gateway Drive, Suite 107

49. Rutherford Wine Napa, CA 94558

Company 101 2nd Street, Suite 120

Petaluma, CA 94952

Marko Zaninovich, President

ANNUAL U.S. CASE SALES VOLUME: 350,000 heffins.com
License #0564249

Rutherford Wine Company’s flagship is the Rutherford Ranch Napa

Cabernet while Scott Family Estate is sourced from the family’s
vineyards in Monterey. The winery’s Lodi-based brand is called Predator,
a reference to ladybugs used in its sustainability program. Lander-
Jenkins is a relatively new wine that focuses on on-premise. The winery
50. McManis Family
Vineyards
also sells a Red Blend called Rhiannon. Round Hill is an old stalwart that’s
been with the company for many years. The winery facility itself is called
Round Hill Cellars.
Ron McManis, President and Co-owner
The company has been active with line extensions in areas with strong
ANNUAL U.S. CASE SALES VOLUME: 340,000
consumer appeal. This year, for instance, the winery strengthened
sourcing for Pinot Noir and augmented the Lander-Jenkins product on-
McManis Family Vineyards
premise. Predator now includes Cabernet and a Red Blend item. Similarly,
processes about 5.5 million
a Napa Red Blend program was added to Rutherford Ranch.
gallons of juice and wine a year;
Rutherford Ranch is owned by Marko Zaninovich. Zaninovich also owns
80 percent of it is for other
ASV Wines of McFarland, California. ASV provides bulk wine, bottled
people. The company owns and
products and custom services to wine marketers.
farms roughly 3,600 acres in
The Zaninovich family owns Sunview Vineyards, one of California’s
Ripon, Manteca and Modesto,
three largest table grape-growing operations, and ASV operates two
with about two-thirds of its
California wineries: one in the Central Valley and another on the Central
acreage in Lodi and Clarksburg.
Coast. The family also has considerable vineyard holdings in Monterey
The company also makes wine
County. It has made private label wine since the 1970s. ASV deals in
under its own label, about
bulk truckloads of wine. Converted to 9-liter cases, those truckloads
340,000 cases of it this year.
represent more than 700,000 cases of wine. Rutherford Ranch and ASV
The operation diversified into
are part of an international enterprise that includes a grapevine nursery,
bulk wine by building a winery
laboratory services, package manufacturing, fresh table grapes and
following the 1997 crush.
other fresh fruits.
Justin McManis, Tanya McManis Heuvel and son-in-law Dirk Heuvel,
the fifth generation of family farmers, all work full-time at McManis Family
Vineyards. McManis Family Vineyards is known for attention to detail
and for best practices when it comes to selected rootstocks and clones,
leaf-pulling, cluster-thinning and drip irrigation. Attention to detail comes
with small lot fermentations, whole-cluster pressing and oak aging. The
McManis wine label launched in 2001. WBM

WBM February 2018 75

Canadian Wineries Optimistically
Invest in the Future, Long for
Less Taxation and Regulation
Julie Gedeon

Julie Gedeon is a Montreal-area freelance writer and editor who has contributed stories
about the Canadian wine industry to Wine Business Monthly for more than a decade.

C A N A DA’ S W I N E I N DU S T R Y E NJOY E D overall growth in 2017
with a few significant changes in ownership. A stellar Ontario harvest, key
export opportunities and increasing appreciation by Canadians for premium
domestic brands have owners enthused but still concerned about existing
and potentially new challenges.
Hopes are pinned on the federal government and provincial counterparts
recognizing the industry’s C$9 billion contribution to the Canadian economy.
The amount has risen 33 percent from $6.8 billion between 2011 and 2015,
according to a study commissioned by several wine associations/institutes.
Its impact is even more significant because it bolsters rural areas through
investment, employment and related market opportunities. Yet Canadian
wines still represent only 32 percent of total national wine sales.
The industry is more Canadian again with the Ontario Teachers’ Pension
Plan having acquired Constellation Brands Canada for approximately
C$1.03 billion in November 2016. The newly baptized Arterra Wines
regained its former status as Canada’s largest wine company with approxi-
mately three times the market share of its closest competitor and seven of the
top 20 wine brands in the Canadian market.
“I’m excited about this new chapter, especially given that Arterra traces
its origins to the very beginning of Canadian winemaking and later game-
changing brands, like Jackson-Triggs and Inniskillin,” said Jay Wright, the
president/CEO who assures continuity as the former head of Constellation
Brands Canada. He also worked with Canadian wineries earlier in his career.

76 February 2018 WBM

 RE V IE W O F T H E I NDUS T RY

A top priority is hiring IT and other personnel at the Mississauga, Ontario

headquarters as the company establishes systems independent of Constel-
lation. “We will continue to partner with Constellation when it comes to
certain imports,” Wright added.
Rebranding is a primary focus. The Arterra name reflects a reinvigorated
focus on craft/expertise. “We chose it because it conveys our efforts in terms
of the art of winemaking based on terroir,” Wright explained. “Significant
investment has gone and will continue to go into improving quality, which
has improved dramatically over the past few years, working with oenology
and viticulture research facilities.”

WBM February 2018 77

 Acquisitions Focus on
Premium Wineries
The renewed emphasis is reflected in Arterra’s acquisition of Laughing
Stock, a boutique winery located on the Naramata Bench in British Colum-
bia’s Okanagan Valley. “We’re definitely going to let David and Cynthia
Enns keep running the show, according to their vision, but support them
with the increased investment and capital to grow at a pace that makes sense
to them in maintaining, and even improving, their existing high quality,”
noted Wright.
Andrew Peller Ltd., Canada’s second largest winery, is likewise investing
in B.C. premium wine with the acquisition this past fall of Black Hills Estate
Winery, Gray Monk Estate Winery and Tinhorn Creek Vineyards.
“We personally knew the wines and the people behind them and recognize
their potential if we keep their current management and employees in place,
but provide the complementary resources to help them to grow,” said CEO
John Peller. “We also think the Okanagan Valley has demonstrated that it
makes wine as good as anywhere in the world and has strong potential over
the next 20 to 30 years.”
Acquisitions may figure prominently at companies expanding their
Okanagan holdings in the years to come. “While the Niagara Escarpment
has the potential to double or even triple its current plantings, the Okanagan
would be hard-pressed to increase acreage by 20 percent,” Peller explained.
“At the same time, it’s a challenge for small wineries to expand with land
priced well over $100,000 an acre.”
Andrew Peller is investing significantly in its existing operations across the
country. “Just in terms of ongoing winery capital, we’ll probably spend twice
what we have in the past on everything, from cooperage to crush to vineyards
and estate wineries, to keep all of it current,” Peller shared.

Predicting the Future of the

Canadian Wine Market
While industry margins remain slim, Peller is among the companies
showing confidence in the future consumption by Canadian of premium
wines, specifically those meeting Vintners Quality Alliance (VQA) stan-
dards. “There’s no doubt that consumers are buying higher-priced VQA,
and the future sweet spot will be in the $15 to $25 range,” Peller said. “But
we’ll also see more products between $30 and $70.”
Peller doesn’t consider blended wines as key to the Canadian industry’s
growth. “Obviously, it’s a large and relevant segment, but the future lies in
VQA wines.”
J. Murray Souter, CEO of Diamond Estates Wines and Spirits Ltd.,
views the recent acquisitions as positively heightening awareness of VQA
wines across Canada and throughout the world by investing at the risk of
minimal profit in quality and reputation. “It’s good in that if we need cash,
we can go south to gain equity, but that also comes with a lot of scrutiny,”
Souter related as the head of one of only two publicly traded wine companies
in Canada—the other being Andrew Peller.
Souter welcomes two consecutive good harvests after the extensive damage
caused to Bordeaux varietals by the 2014 and 2015 winters. “We had seven

78 February 2018 WBM


SHEILA WEBSTER
Vineyards on the east side of the Okanagan Valley
days about 30° C (86° F) in the summer and again in the fall that really helped
to produce this year’s high quality and quantity,” he said.
Diamond Estates is in the middle of a five-year expansion. “We’ll be
spending more than $12 million, which includes the construction of our new
retail facility/tasting center, a cooperage expansion, multi-line bottling and
packaging, and warehouse consolidation.”
R E VIE W OF TH E I NDU STRY
Souter points to the Ontario government permitting the sale of wine in 70
additional grocery stores as the most significant change since the province
ended prohibition in 1927. Half are stocking foreign and domestic wines
while the other half are selling Ontario VQA. “Having those wines on shelves
that people visit on average one-and-a-half times a week, rather than liquor
stores that some frequent only a few times a year, will really help with VQA’s
visibility,” Souter noted.
The new outlets are in addition to 150 existing supermarket kiosks privately
owned by the Wine Rack and Wine Shop chains that currently sell VQA, as
well as blended wines. While Ontario plans to have 300 of the province’s
1,500 grocery stores selling wine by 2025, Souter can see the gates opening
quicker. “Consumers want to be able to readily buy domestic and foreign
wines of their choice in grocery stores to cut down on their shopping time,”
he said.
Last May, Diamond Estates spent $4.4 million to acquire the remaining
49.99 percent interest in its agency previously owned by its joint venture
partner, Kirkwood Brands Ltd. The renamed Kirkwood Diamond Canada
Partnership (KDC) will improve distribution, sales and brand management
through targeted investments.
“We bought out the family-owned business because of the dramatic
changes that are happening in terms of real-time information availability,
analysis and fact-based selling—all of which require significant investment,”
Souter said. “The agency also widens the door for us to retailers and restaura-
teurs, who prefer to deal with one or two distributors at most,” Souter added.
WBM February 2018 79
Canadian Wine in the
International Market PILLITTERI ESTATES WINERY

When the grapes for Pillitteri

“The agency also helps us to recognize global opportunities, and we now
have distributors in Finland, Austria, Germany and Great Britain and, of
course, Asia—especially China,” Souter added. “Our accounting firm notes
that China’s middle class is doubling by 30 million people annually.”
Sights are also set on burgeoning markets, such as Vietnam and the Phil-
ippines, as well as Mexico and Latin America. “Canada is increasingly being
recognized beyond ice wine for the quality of its products, thanks largely to the
work our industry has done with research institutes,” Souter said.
The potential to grow the business at home is also great. “Millennials are
really engaging with wine as part of their socializing over meals at home or
at entertainment and/or food events more than hanging out in bars,” Souter
noted. “The Niagara wineries have surpassed Niagara Falls as the province’s
leading tourist destination.”
Family-owned Pillitteri Estates Winery, which celebrates its silver anni-
versary in 2018, is building on the international success of its ice wine to
increase business at home and especially abroad. Half of its business is now
exported to 35 countries. Most of that is ice wine—accounting for 26 percent
of Canada’s ice wine sales exports.
Estates Winery’s icewineare-
pressed, these hand picked,
naturally frozen grapes
yield a juice with an intense
concentration of sugars, acids,
flavors and aromas.
“Competing with the giants to sell plentiful wines in the $10 to $15 range
doesn’t make sense,” Jamie Slingerland, Pillitteri’s director of viticulture, said.
“Showcasing our ice wine and other unique wines, such as Passimento, does.”
Pillitteri is also leading the way in terms of agritourism by welcoming
200,000 visitors annually. “Through our distributors, we encourage Chinese,
Japanese and South Korean tourists to visit our area by arranging bus tours,”
Slingerland said.
Slingerland noted that the North American Free Trade Agreement
(NAFTA) currently favours the United States with a $450.6 million surplus in
wine sales, stemming mainly from California. If, however, NAFTA’s wine-re-
lated provisions are overhauled, he would like to see complicated import
regulations that vary from state to state be simplified. “I would also like the
trade deal changed to allow companies like ours to introduce sales points
at places with major tourism locations, such as Toronto’s airport, near the
Windsor-Detroit border and in Ottawa by the capital’s major attractions.”

Taxes and Regulations Prohibitive

to Growth
February Oregon Colio Estate Winery has invested in a $1.5-million expansion to increase
20 & 21 Convention its red fermentation process and aging tank capacity for some 700 tons of
2018 Center additional fruit. “This will help us to grow all our segments, including VQA
and specialty wines, but also our grocery store and the rest of our retail
network,” Jim Clark, Colio’s president, said. The company is also looking
at a further multi-million dollar, 28,000 sq. ft. expansion of its warehouse,
production and tank facilities.

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Recognizing “backyard” opportunity, Colio is placing efforts into the
Canadian Prairies and East Coast, but enjoying larger sales in all provinces.
As an executive member of the Canadian Vintners Association, past
chair and still serving on the board of the Winery and Grower Alliance of
Ontario and director of VQA Ontario’s board, Clark said the major issue
GROW facing Canadian wineries is heavy taxation.
“I realize there’s pressure on governments to earn revenue, but rates can’t be
Insights and lessons
on developing business prohibitive to us increasing our market,” he said. “Wineries around the world
strategies across
diverse sales channels that have matured their own markets are now looking at Canada, where per
Grapegrowing and
capita wine drinking is increasing but still only 20 liters per adult per year.”
winemaking strategies Paul Speck, the president of Henry of Pelham Estate Winery, couldn’t
to address today’s
biggest challenges agree more. “The mark-ups and other taxation are becoming debilitating,
which doesn’t make sense given what the industry contributes to the economy
and job creation.”
An excellent harvest will facilitate Henry of Pelham introducing new
products and brands in 2018. “We had to put the brakes on those plans
somewhat after the poorer 2014 and 2015 yields,” Speck said. “We’re now also

80 February 2018 WBM


proceeding with the construction of a new building to increase production,
which goes with our harvesting of 75 additional vineyard acres this year.”
The expansion reflects the winery’s confidence in the future, but Speck says
the playing field with other commodities must be made fair. “What’s inter-
esting is that the governments are proposing to keep taxes low on cannabis
when it becomes legal in Canada in July to discourage the black market,” he
noted. “We’re also seeing craft breweries obtain tax breaks that our industry
doesn’t have even though our agricultural investment is much larger and
longer term.”
Speck, like others, is awaiting a Supreme Court of Canada decision in the
spring. It will decide the legality of the current interprovincial restrictions
on direct alcohol purchases and transportation across provincial borders
by consumers. “It will either entrench the current limitations or open up
everything,” Speck noted.
The case is one of the many factors that have winery owners unsure of what
awaits in 2018. While most don’t anticipate that the legalization of cannabis
will hurt premium wine sales, others, including Walter Schmoranz, the
president of Pelee Island Winery, expects there will be a hit to economical
wine sales unless it’s counteracted with increased spending on marketing.
Pelee Island Winery is enjoying one of the best harvests in terms of quality
and quantity in 30 years, according to Schmoranz. “We actually had drought
in July, but a few heavy rains occurred at the perfect time in August,” he said.
The winery has restocked cellars after short harvests in 2014 and 2015, plus
the intentional tampering of wine at its facilities by vandals in October 2016
R E VIE W OF TH E I NDU STRY
that necessitated disposing of 250,000 liters. “That sabotage really hurt us,”
Schmoranz said.
He wishes the Ontario government would make greater efforts to help
Ontario wineries to grow their own market. “Both Nova Scotia and B.C. are
doing more to help their wineries,” he noted. “And we need help with labor
costs, supplies and taxes all rising.”
Back in British Columbia, where B.C. VQA is the second best-selling wine
category, the challenges differ. “It’s difficult for wineries of any size to expand
with land prices higher than in Sonoma,” said Tony Stewart, the CEO of
Quails’ Gate Winery. “Labor is another issue.”
Known for its restaurant and hospitality center, Quails’ Gate is expanding
business through a greater range of experiential offerings that include
cooking classes, wine appreciation sessions, and Happy Hours with a $5 glass
of wine and $5 appetizer in the off-season. “We’re really seeing a demand for
greater wine and culinary knowledge among Boomers,” Stewart noted. “With
11,000 people turning 65 daily in North America, this is a key segment.”
He likewise agrees with other wine owners that Millennials continue to be
a strong market because of their appreciation for locally grown products. “I
would love to see investments made in a culinary school in the Okanagan,
which I believe could become North America’s leading culinary destination
if we attracted the right people and provided the proper training,” he said.
WBM
WBM February 2018 81
 Number of Wineries Across
United States Reaches 9,654
The total number of virtual wineries sees huge increase as
land and permits become tougher to obtain.
Kerana Todorov
THE NUMBER OF WINERIES in the United States has reached 9,654—a
6.2 percent increase over the last year, according to Wine Business Monthly’s
database. The steepest increase is among virtual wineries. While the number
of bonded wineries increased to 7,751 nationwide, up 5.2 percent, the
number of virtual wineries increased to 1,903, a 10.4 percent jump.
Jon Moramarco, managing partner of BW166 LLC, said the industry is
healthy and has not reached a saturation point. “I think there are still many
people out there who have the passion to want to make their own wine,” he
said. “Consumers are looking for local and true products. This consumer
desire leads me to believe that there will be opportunities for more small
wineries throughout the country.”
The 10 states with the most wineries are: California, Oregon, Washington,
New York, Texas, Virginia, Pennsylvania, Ohio, Michigan and North Carolina.
Altogether, these states account for 7,746 wineries—or 80 percent of all
bonded and virtual wineries in the United States.
California, the top wine producer, totaled 4,392 wineries—3,151 bonded
wineries and 1,241 virtual wineries—a 4.5 percent increase from last year.
82 February 2018 WBM
Kerana Todorov is a freelance reporter based in Napa. She previously was
a reporter at the Napa Valley Register and other newspapers in Northern
California. She can be reached at kerana.todorov@gmail.com.
Virtual Wineries and Second Brands
Seeing Strong Growth
Bruce Lundquist, co-owner of Rack & Riddle, a Healdsburg-based winery
and custom crush facility, chairs the Family Winemakers of California.
Reflecting on potential continued growth in California, Lundquist said, “I
think there will be growth, but I think it will slow way down due to the upfront
cost of entering the business—especially for those seeking a physical winery.
“Brands and wineries without walls have a better chance of opening—that
is, running their production through custom crush—as the barrier and cost
to entry are lower. Continued adverse regulation and licensing burdens will
also prove to be a substantial drag on future growth—both for those trying
to get in and for those already established.”
Christopher Taranto, communications director for the Paso Robles
Wine Country Alliance, said the number of wineries in Paso Robles is
expected to grow.
“These days the growth that we see in the industry is from winemakers
who are working for a brand and creating their own small brand on the side,”
Taranto said. “So, in Paso, we have winemakers and assistant winemakers
creating small labels that have the potential to grow into a brand that
becomes more than just a side project. This has been most evident in an area
called Tin City. This is an industrial park in the Paso Robles AVA [specifi-
cally in the town of Templeton] that has organically grown into a hotbed of
small brands,” Taranto said. “Affordable build-out and the ability to leverage
improvements with fellow small brands have been a lot of the reason for Tin
City’s quick rise as the place to be.”
 R EVIEW OF T HE I N D U STRY

TA B L E 1: NUMBER OF BONDED, VIRTUAL AND TOTAL U.S. WINERIES (as of February 2018)
BONDED VIRTUAL TOTAL BONDED VIRTUAL TOTAL BONDED VIRTUAL TOTAL
STATE WINERIES WINERIES WINERIES STATE WINERIES WINERIES WINERIES STATE WINERIES WINERIES WINERIES

CA 3,151 1,241 4,392 MD 80 4 84 WV 24 2 26

OR 473 301 774 FL 70 5 75 AL 22 - 22

WA 713 59 772 KY 66 7 73 SC 18 3 21

NY 365 30 395 MN 69 3 72 SD 21 - 21

TX 256 63 319 OK 55 7 62 AR 18 - 18

VA 244 32 276 TN 56 6 62 ND 14 2 16

PA 254 7 261 GA 58 3 61 MT 14 1 15

OH 205 3 208 NJ 55 3 58 RI 12 - 12

MI 180 4 184 NM 50 5 55 UT 11 1 12

NC 139 26 165 MA 46 7 53 LA 9 - 9

MO 137 12 149 ID 47 5 52 NV 5 2 7

CO 121 6 127 CT 47 2 49 DE 6 6

IL 105 10 115 KS 40 1 41 WY 6 - 6

WI 104 5 109 NE 30 2 32 MS 5 - 5

IA 98 - 98 VT 28 4 32 AK 4 - 4

IN 93 2 95 ME 31 - 31 HI 4 - 4

AZ 62 26 88 NH 30 1 31 Total U.S. 7,751 1,903 9,654

State by State
Oregon has the second most wineries in the nation, with 774, an 8.5 percent
increase over a year ago. Washington state counted 772 wineries—about 3.3
percent more than a year ago. Heather Bradshaw, communications director
for Washington State Wine, says there is quite a lot of room for wineries in
the state to continue to grow.
The state of Texas counts 319 wineries, including 256 bonded and 63
virtual, a 11.1 percent increase over a year ago.
Generally speaking, the executive director of the Texas Wine and Grape
Association, Debbie Reynolds, expects the number of wineries to continue
to increase by 10 percent annually in her state. The growth, Reynolds said, is
“due to lessons learned, interest in the industry, recognition of the high quality
of Texas wines and grapes and farmers who are diversifying their crop choices.”
The number of wineries in Pennsylvania also continues to grow. Wine
Business Monthly’s data indicate the Commonwealth now counts 261
wineries—254 bonded and seven virtual. That is a 15 percent increase in the
number of wineries compared to last year.
In Somerset, southeast of Pittsburgh, Pennsylvania, Liz Diesel manages
Glades Pikes Winery, a family-owned operation. Diesel, who is also president
of the Pennsylvania Winery Association, a trade association with about 100
members, attributes Pennsylvania’s successful wine industry to the farm-to-
table movement. Consumers, she said, “allow us to pursue our passions.”
In addition, institutions like Pennsylvania State University’s enology
and viticulture extension programs, which the wine industry financially
supports, and changes from the Commonwealth legislature have contributed
to the growth. “We have worked with the legislature to bring about some
modernization of the liquor laws, and the Department of Agriculture has
been tremendously supportive of the changes and the industry as a whole,”
Diesel said.
Denise Gardner, a wine consultant at Denise Gardner Winemaking,
said Penn State students have gained hands-on experience by taking part in
harvest co-ops and internships. Research initiatives are addressing the local
wine industry’s questions and challenges, she said.
Diesel said Pennsylvania’s sweet wine production has helped turn non-wine
drinkers into regular wine consumers. Over time, consumers have moved to
drier wines, with wineries producing quality dry wines, she noted.
“The Pennsylvania wine industry is something I’ve always seen as by the
people, for the people. Not snobby or uppity, but comfortable. Approachable.
We’ve worked to demystify wine and bring quality wines to all taste buds,”
Diesel said.

WBM February 2018 83

New Areas for Growth
At what point is the number of new wineries going to drop?
“I have no idea where that tipping point is. I don’t know if anyone does,”
Diesel said. “But it’s kind of cool to see it happen in the Quaker State.”
Ohio’s wine industry also continues to experience a surge in the number of
new wineries. Wine Business Monthly’s data indicate there are 208 wineries in
Ohio or 7.2 percent more wineries than a year ago.
The growth is due, in part, to wineries in Ohio becoming key tourist
destinations and the state Department of Agriculture’s enology and viti-
culture research and marketing programs, according to Donniella Winchell,
executive director at Ohio Wines. The success, in turn, has spurred private
investments in lodging, touring companies and restaurants.
In Ohio, customers find non-intimidating tasting rooms where they can
learn about wine, Winchell said. Small wineries in Ohio can be profitable
without the traditional distribution system. In addition, Ohio residents in
the state’s biggest metro areas, including Cleveland and Columbus, are about
a 35-minute drive from a winery, Winchell said. “Nearly every winery in
the state has proven to be reasonably profitable, so success generates folks
interested in replicating similar success stories,” Winchell said.
84 February 2018 WBM
Wisconsin, a state known for its beer industry and its farms, is also home
to 109 wineries.
In Ripon, Wisconsin, Ryan Prellwitz grows cold-hardy grapes Marquette,
St. Pepin and Petite Pearl on the family farm, a former dairy, along with
other crops, including corn, soybeans, wheat and strawberries. The state is
“not even close to being saturated with wineries,” Prellwitz said. “There is
a big market here.”
His winery, Vines & Rushes, opened in 2012, produces 3,500 cases annually
and welcomes between 30,000 and 40,000 visitors a year. Just about all the
wine is sold direct-to-consumer. “There is a demand for it,” said Prellwitz,
who is also vice president of the Wisconsin Winery Association. “We’re a
very grow-local state.”
Wisconsin does not have the costly, complex regulations that California
has, and it is much easier to build a new winery there, Prellwitz said.
Wisconsin primarily has to deal with the cold weather, but local regulations
allow special events, such as live music and yoga sessions. “Things are a little
simpler,” Prellwitz said.
 RE V I E W O F T H E IN D US TR Y

Canada
The number of wineries in Canada increased slightly, from 692 to 695,
according to Wine Business Monthly data.
British Columbia has the most wineries. The province counted 312
wineries—or three more than a year ago. There are also 238 wineries in
Ontario; 94 wineries in Quebec; 20 wineries in Nova Scotia; 14 wineries in
New Brunswick; six in Saskatchewan; four in Alberta and Prince Edward
Island; and three in Newfoundland.
Canada produces high-quality wines at all price points with home-grown
grapes, said Aaron Dobbin, president, Winery and Grower Wine Alliance
of Ontario. It is an emerging industry, he said. “We’re a hidden gem up here.”

TA B L E 5 : Number of Canadian Wineries

(as of February of each year)

PROVINCE 2012 2013 2014 2015 2016 2017 2018

British Columbia 230 239 257 275 299 309 312

Ontario 138 170 191 225 234 236 238

Quebec 69 79 79 95 95 95 94

Nova Scotia 14 14 15 15 15 20 20

New Brunswick 9 11 11 12 12 15 14

Saskatchewan 2 2 3 4 4 6 6

Alberta 1 4 4 4 4 4 4

Prince Edward
1 2 4 4 4 4 4
Island
Newfoundland &
3 4 4 4 4 3 3
Labrador
Total 467 525 568 638 671 692 695

Ontario, known for its ice wines, grows varieties such as Riesling, Pinot
Noir, Chardonnay, Cabernet Franc and Cabernet Sauvignon. Large bodies of
water, like Lake Ontario and Lake Erie, provide warming and cooling effects,
allowing for a “good, long growing season,” Dobbin said.
Winery visitors include a lot of locals as well as tourists from New York
state, Europe and China. There is pride in buying local, Dobbin said. But
at the same time, Canadians have access to wines from around the world.
Wineries in Canada “have to deliver good quality wines,” he said.

A VIP Company
Conclusion
This year’s data from Wine Business Monthly indicate the number of
wineries continues to grow. No negative change is anticipated even though
sharper growth in the number of wineries has been reported in recent
years. The wine industry is present in all 50 states, including Alabama and
Alaska, which counted 19 and four wineries, respectively. Of all U.S. states,
California remains the top producer, with nearly 4,400 bonded and virtual
wineries. WBM

WBM February 2018 85

 Erin Kirschenmann

Erin Kirschenmann is senior editor for Wine Business Monthly, and has been with the magazine since 2012. In addition to
production responsibilities for the monthly trade magazine, she writes about wine industry trends, including business, technology
and sales and marketing topics for WBM, Wine Business Insider and winebusiness.com. She graduated from Sonoma State
University with a bachelor’s degree in communications with a journalism emphasis. She can be reached at erin@winebusiness.com.

EVERY YEAR, WHEN Wine Business Monthly creates our annual list of Hot
Brands, we look for vintners, growers, wineries and wines that are making a state-
ment in our industry. Quality is always an important consideration, but Hot Brands is
more than a list of the “best” or most interesting wines we’ve tasted during the year.
When we set out to choose our Hot Brands, our goal is to always represent
the American wine industry. Often, that means discovering a new winery
in an established region while also paying homage to the stalwarts who
continue to move the industry forward. It means we look at wineries in
emerging states, that might be bucking a trend or trying new techniques.
Our editors look for wines that are embodiments of national trends or have
soaring sales. Sometimes we’ll choose the winemaker, not the wine.
Quite often, we end up with a couple of wines that were unexpected. During the
search for a Pinot Noir, for example, we may discover a producer who is also making
Tempranillo—and is doing such a good job of it, we adjust our plans to include it.
We’re never quite sure how the list will turn out, but it’s a chance for us to explore
ANKIDA new regions, varietals and winemakers.
RIDGE
VINEYARDS Even so, every year we stumble on a couple of themes. Those vary from year to
ALC 12 .8% BY VOL

2014 year, but, inevitably, we come across a couple of patterns among our choices.
PINOT NOIR
VIRGINIA

Science and engineering backgrounds were more common than usual

amongst the wines and their respective winemakers this year, as several of
N A PA VA
LLEY

the owners left the hustle, bustle and stress of the tech industry to find their
CABER
NET S
AUVIG

ARVE ST
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2015 H

roots again. There are a couple Ph.D.s and inventors in the group and plenty
EMB SKI
MA RK POR

of innovators. We learned of quite a few happy accidents that kick-started new

STE PHA
NE VIV IER

TIUM
DER SON
RET T AN

R
CONSO
BAR

careers—and even a few that resulted in marriage. This group was also the
DAN PET
RO SKI

N HO BEL
NON CAM ERO
AUVIG
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CABER
type to seek out guidance and hire consultants to help put the right vines in
HEL LER
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BRE NN AN

CELLARED AND
BOTTLED BY
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the
CONTAINS SULright places or show them the best way to make wine.
750ML
FITES
BY VOL
S / NAPA / ALC 14.5%
BAND OF VINTNER M
S.CO
BANDOFVINTNER TO THE SURGEO
N
This year, we’ve selected wines from pioneers, newcomers, long-standing
GOVERNME
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ULD NOT
EN SHO
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NT WARN DRINK ALCOHOLIC BEVERA SUMPTION
ECTS. (2) CON
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GENERAL, WOM AUSE OF THE RISK OF BIRT ABILITY TO DRIVE A CAR OR
PREGNANCY BECBEVERAGES IMPAIRS YOUR LTH PROBLEMS.
winemakers and more. While each may grow a different grape or go about making
OF ALCOHOLICHINERY, AND MAY CAUSE HEA
OPERATE MAC
O RNIA
• CALIF

wine in unorthodox ways, all the winemakers selected reflect the diversity that is the
LEY
PA VA L
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2015 H

wine culture in the United States, and all have an innate desire to produce something
they, and the consumer, will love.
In the end, this list is comprised of wines that we here at Wine Business Monthly
would serve to winemakers. That’s exactly what we do, as representatives from each
of these wineries were on-hand to serve their wines to winemakers, grape growers
and industry members at our annual Bottle Bash party at the Unified Wine & Grape
Symposium in January. Cheers!

sixteen
600
86 February 2018 WBM 2016 Ste el Plo w Ros
é
Sonoma Valley
 R EVIEW OF T HE INDUS T R Y

HOTBRANDS of the Past

2016 • Amavi Cellars • Dan Cohn Cellars • Fujishin Family Cellars • Illahe
Vineyards • Infinite Monkey Theorem Winery • LVVR Cellars • Mi Sueño Winery •
Presqu’ile Winery • Senses Wines • Sleight of Hand Cellars • 2015 • Napanook (Dominus)
• Guffy Family Wines • Kinero Cellars • Lovingston Winery • Mathis Wine • Naked Wines •
Post Familie Vineyards • Savage Grace • Sonoma Collection, District 3 • Cacciatore
Fine Wines • 2014 • Brys Estate Vineyard & Winery • Concrete Wine Company
• Fiddlebender/Cellar 433 • Halter Ranch • Keller Estate • La Chertosa •
McIntyre Vineyards • Skinner Vineyards • Treveri Cellars • Union
Wine Company • 2013 • Cowhorn Vineyard & Garden • Drew
Family Cellars • Frogtown Cellars • Lake Sonoma
Winery • LangeTwins Family Winery and Vine-
yards • Matthiasson • Rack & Riddle • Riverbench
Vineyard and Winery • Rôtie Cellars • Vino Noceto • 2012
• Ca’ Momi • Carr Winery • Hidden Ridge Vineyards • Jefferson
Vineyards • Kunin Wines • Milbrandt Vineyards • Red Caboose Winery
• Tinhorn Creek • Troon Vineyard • Two Shepherds • 2011 • Wine by Joe •
Cecchetti Wine Company • JC Cellars • Truett Hurst • Barnard Griffin • Bennett
Valley Cellars • Talbott Vineyards • Veritas Vineyard & Winery • Barrister Winery • Lone
Madrone • 2010 • Cameron Hughes • Crew Wine Company • Dusted Valley • Twisted Oak •
Black Ankle Vineyards • Salinia Wine Company • Bella Vineyards and Wine Caves •
Persimmon Creek Vineyards • Willakenzie Estate • Gloria Ferrer Caves & Vine-
yards • 2009 • Pacific Rim • Wines of Substance • Cambiata • Abacela
• Cinder • Swanson Vineyards • L’aventure • Marynissen Estates
• Bartholomew Park Winery • Raffaldini Vineyards And
Winery • 2008 • Graziano • Four Vines Peasant
• Becker Vineyards • Red Tail Ridge • Sojourn
Cellars • Domaine Drouhin • Jeff Runquist Wines
• Marilyn Remark Winery • Trio Vintners • Purple Wine
Company • 2007 • Willamette Valley Vineyards • Ceja Vineyards
• Tangent • Clos Du Val • Kutch Wines • Coro Mendocino • J.R. Storey •
L’ecole Nº 41 • King Family Vineyards • Gruet Winery • 2006 • A to Z Wineworks
• House Wine • Liberty School • Shannon Ridge • Twenty Bench • Cycles Gladiator •
Bedell Cellars • Artesa Vineyards & Winery • Black Star Farms • Buena Vista Carneros • 2005
• Parducci Wine Cellars • Solorosa • Cheapskate • Velvet Red • Incredible Red • Hard Core
• Kunde Estate • Hitching Post • Andretti Winery • Esser Vineyards • 2004 • Red
Truck • Cartlidge & Browne • Seven Deadly Zins • Oliver Winery • Angeline
Wines • Rock Rabbit • Three Thieves Bandit • Sofia Mini • Screw
Kappa Napa • Graceland Cellars • 2003 • Hrm Rex-Goliath
• McManis Family Vineyards • Sebastiani Vineyards
& Winery • Castle Rock Winery • Black Oak •
Jewel Collection • Tin Roof • Three Thieves
• Jest Red • J Garcia Wines

WBM February 2018 87

 N A PA
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2015 N

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Alexandria Amista Ankida Ridge Bella Grace

CA ME
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Nicole Cellars Vineyards Vineyards Band of Vintners Vineyards

RS ON

Winery CELLARED
AND
BAND OF VIN BOTTLED BY
BANDOFVIN TNERS / NAPA / CA
2015
HARV
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SUL
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Wine 2016 Viognier NV Sparkling Grenache 2014 Pinot Noir 2015 Consortium 2016 3 Graces Blanc
VA L L GOVERN
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FORN
IA GENERAL, WARN BY VOL
PREGNANCYWOMEN SHOULD NOTING: (1) ACCORD
OF ALCOHO BECAUSE OF THE DRINK ALCOHOLICING TO THE SURGEO
Cabernet Sauvignon LIC BEVERA
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Vineyard/Winery Destiny Ridge Vineyard, Morningsong Vineyards, Amherst, VA Napa, CA Bella Grace Vineyards,
Location Horse Heaven Hills, WA Dry Creek Valley, CA Plymouth, CA

Price $24 $48 $44 $40 $25

Case Production 1,302 cases 150 cases 250 cases 3,200 cases 330 cases

Blend 94% Viognier, 100% Grenache 100% Pinot Noir 93% Cabernet Sauvignon, 63% Grenache Blanc,
6% Roussanne 4% Merlot, 23% Vermentino,
3% Cabernet Franc 14% Roussanne

pH 3.61 3.11 3.68 3.9 3.41

TA 6.0 g/L 8.6 g/L 6.3 6 5.5 g/L

Brix 23.5 19.8 22.5 24.5 22

Residual Sugar 0.04 g/L 1.20% 0 1.0 g/L 0.6 g/L

Alcohol 13.2% 12.5% 12.8% 14.5% 12.9%

W IN E M A K I NG DATA

Hand-picked in early
Hand-picked into 25 lb.
Picking Methods Hand-picked morning hours to keep Hand-harvested Hand-picked
lugs
grapes very cold
Hand-sorted over vibrating
Sorting Methods Vineyard-sorted Hand-sorted at winery Hand-sorted Hand-sorted
sorting table
Crush Details Whole-cluster pressed Hand-sorted and lightly No crush; 100% N/A Whole-cluster pressed
foot-treaded to allow to destemmed, whole berry
stay on skins/stems for
4 hours; pressed juice
off skins and into tank;
inoculated and fermented
cold for 3.5 weeks

Cold Soak? No N/A 4 days at 40° F 3 to 5 days N/A

20 ppm after first Added at crush and

SO2 Applications 20 ppm at bottling 28 ppm FSO2 at bottling 50 ppm at press pan
fermentation after malolactic
Yeast BA-11 Prisse de Mousse 90 percent RC212, 10 Commercial VL1
percent native
Fermentation 56° F to 58° F 55° F Slow build to 87° F 88° F 50° F
Temperature

Add 30 ppm ascorbic at

Fermentation Cold fermented in stainless Open-top, 1-ton
Low and slow N/A press pan; 100 mL/ton
Technique steel tanks fermenters
gelatin to juice in tank

DAP, SF, Yeast Hulls,

Nutrients None added Organic yeast nutrient Fermaid-O 2 lbs./K Bioferm
GoFerm
Acid Additions 0.02 g/L citric acid N/A Once during alcoholic 1 g/L 2 g/L to juice prior to
fermentation, once after fermentation
malolactic

Malolactic? N/A N/A 100 percent ML In barrel None

Punch-down/ N/A N/A Two punch-downs daily 2 to 3 pump-overs daily N/A

Pump-over
Methods
Oak Program No oak N/A 100 percent French oak; 40 percent new French oak N/A
25 percent new barrels;
medium toast

Barrel Aging N/A N/A 10 months 15 months N/A

Once, post primary Twice: once for blending,

Racking N/A Not until bottling N/A
fermentation once for bottling

Filtration Sterile-filtered Cross-flow before tirage Sterile filtration at bottling Sterile-filtered .45u at bottling line

88 February 2018 WBM

 six
tee
Parrish Family Winery Sixteen
60 n

Winery Vineyard Stewart Cellars Syncline Winery Vidon Vineyard 600

2 016 0
S el
Sonte
oma P l o w Ro
Valley sé
Wine 2013 Petite Sirah 2016 Sauvignon Blanc 2016 Picpoul, 2015 Explorer Tempranillo 2016 Sixteen 600 Rosé
Boushey Vineyard Steel Plow Vineyard
Vineyard/Winery Paso Robles, CA Stanley Ranch, Carneros, Boushey Vineyard, Yakima Newburg, OR Steel Plow Vineyard,
Location CA Valley, WA Sonoma Valley, CA

Price $35 $25 $25 $50 $35

Case Production 156 cases 771 cases 2,015 cases 140 cases 47 cases

Blend 100% Petite Sirah 100% Sauvignon Blanc 100% Picpoul 100% Tempranillo 100% Grenache

pH 3.85 3.2 3.25 3.8 3.27

TA 0.43/100ml 6.2 6.6 4.1 6.2 g/L

Brix 26.9 23 21.5 24 22

Residual Sugar N/A 0g < 0.05 0 <0.01

Alcohol 14.7% 13.5% 13.1% 13.4% 14.0%

W IN E MAK I NG DATA

Hand-picked into 5-gallon

Picking Methods Hand-harvested Hand-picked Hand-picked Hand-harvested
buckets into 400 lb. bins

Hand-sorted by family and

Sorting Methods Hand-sorted, whole cluster Hand-sorted Sorting table N/A
staff
Crush Details N/A Whole-cluster direct to Whole-cluster pressed De-stemmed N/A
press anaerobically; settled
overnight; racked with light
lees to stainless steel and
fermented cool

Cold Soak? 3 days N/A N/A 3 days below 85° F N/A

SO2 Applications 25 ppm after ML Minimal 35 ppm 40 ppm N/A

Yeast UVA 43 VL3 Feral and X16 Indigenous Native

Fermentation Early 82° F; mid and late 56° F in tank; 65° F in Bbl 65° F Below 85°F High of 67° F
Temperature 76° F

Small stainless steel tanks

After cold soak, warmed
Fermentation with multiple pump-overs
Tank and barrel Stainless steel to 65° F and fermentation 100 percent stainless steel
Technique early and reducing in mid
started
to late stages

Nutrients Fermaid-O and Fermaid-K N/A Nutristart Org 4 lbs./k DAP Fermaid-K

Acid Additions 0.75 g/L N/A None 1 g/L tartaric Tartaric

Malolactic? Yes N/A None Complete fermentation 0.37 g/L Malic at bottling

Punch-down/ Pump-overs N/A N/A Punch-down twice daily N/A

Pump-over
Methods
Oak Program French oak: 50 percent 0 percent new oak None Once-used French oak 100 percent stainless steel
new (Saury and taransuad
Cooperage medium toast),
50 percent neutral

Barrel Aging 20 months 3 months None 11 months 2 months

Racked after primary

Racking Three times Once to bottle At bottling Once before bottling
fermentation

Filtration N/A Cross-flow Sterile-filtered Unfiltered None

WBM February 2018 89

 Alexandria Nicole Cellars
2016 Viognier, Horse Heaven Hills, WA
Laundry Room Venture Turns Into DTC Powerhouse
When Jarrod Boyle’s wife, Ali, took off for a trip to the
beach, she never expected to come home to a fleshed-out
business plan to turn a vineyard operation with a hobby
winery and a laundry room office into a full-fledged
winery.
In the late 1990s the Boyles purchased 200 acres of sage
brush in the Horse Heaven Hills with no intent to start a
winery, but in 1998 Jarrod started a vineyard with Syrah
plantings and named the site Destiny Ridge Vineyard.
As the years progressed, he planted more varieties, and
in 2001 he made 240 cases of Viognier and Merlot just
to have and share with friends. That decision didn’t stick:
he found the fruit coming off the vines was too good to
just sell off. Named for his wife’s first and middle names,
Alexandria Nicole Cellars transformed from a laundry room operation into
a commercial winery.
“The thought was just to use our own estate fruit, maybe 20 percent,
and then sell the rest to wineries under contract. In the first two years we
passed 5,000 cases,” said Jarrod. “Now, we’re close to 20,000 cases.”
He still maintains the vineyard operation and sells his fruit to other
wineries. Since 1998, the Boyles have planted another 68 acres and have
20 or so varieties planted in the Horse Heaven
Hills of Washington, including the mainstays of
Cabernet Sauvignon, Merlot, Syrah and Char-
donnay, as well as some of the more “esoteric”
varieties, like Counoise and Carménère.
With 4 acres of Viognier, it’s not a big produc-
tion but one that the two are proud of. The first
time Jarrod made a varietal-specific Viognier—
out of the aforementioned laundry room—it
didn’t turn out quite as expected.
“The first year he made Viognier, he had no
idea what he was doing,” said Ali Boyle. “He left
part of the skins on by accident and didn’t have
great equipment. It had banana flavors, but it
showed really well, had some residual sugar and
everyone loved it even though it wasn’t ideal.”
That first vintage inspired him to create a
reserve Viognier that drew inspiration from the
“flawed” attempt. “It created a style of Viognier that Jarrod was not aiming
for, but we all loved, and he later went on and made reserve Viognier
because he didn’t want as many of the tropical notes or aromas on the
nose. It’s just perfumy, and he wanted to be a little tamed down, a little
more complex,” said Ali.
The 2016 vintage featured a fairly long Indian summer but gave them a
good-sized crop with nice floral attributes and balanced acid. It was a good
year for whites, they said, but not one of Washington’s best.
While their wines are superb, Alexandria Nicole Cellars has also excelled
at its direct-to-consumer business. From creating rather unique visitor
90 February 2018 WBM
experiences to bringing the wine to their top customers’
neighborhoods, the Boyles have put a lot of love and
attention into their programs.
“Ali and I learned from the start we were blessed to have
our product be wine, but we understood that we were also
selling an experience and focused on that—from the way
we make the wines to the tiny houses to how we handle
our business and our team,” said Jarrod.
Sixty percent of their wine is sold direct, and the winery
has about 3,500 wine club members. With three tasting
rooms across the state—one in Woodinville, another in
Prosser and one at the estate on Destiny Ridge—and plans
for more in the future, they’re primed to make tasting
Alexandria Nicole wines simple.
Because their vineyard is located in an area with few hotels and many
of their customers are driving in or coming from out of state, the Boyles
knew they needed to provide a high-end place for their tasters to rest and
spend the night. Inspired by an article in Sunset magazine about a Midwest
business that provided glamping tents with a river view, Ali gave it a shot.
With a 14’x18’ tent, filled with high-end bedding and wine fridges, which
overlooked the Columbia River and the surrounding hills, they were innova-
tive and cutting-edge at the time, and customers
loved it. Over time though, she realized that the
season people could actually stay in the tent was
growing shorter—you couldn’t ask people to
“glamp” in the dead of winter or in the rain—and
she wanted an opportunity to allow customers
to enjoy the beauty of the spring and fall seasons
of the vineyard.
She pitched HGTV’s “Tiny Houses, Big Living,”
and two builders came in to compete on creating
the best home on their property, giving Alex-
andria Nicole Cellars quite a bit of exposure,
especially among tiny house hunters. “That
gave us a lot of write up within that community,
but our wine club really loves it. Each house is
individualized and provides a great situation for
bringing groups out. They are a fun little add-on
that starts off with fantastic wine,” said Ali.
Alexandria Nicole has grown quickly and will continue to as the couple
are always looking for new experiences or ways to engage their consumers.
The vineyard can produce grapes for about 70,000 cases of wine, and this
offers the potential for the winery to increase case volume as well. They are
in the midst of constructing another, larger winery facility to accommodate
more receiving equipment, including a recently purchased hopper.
“The theory was to be a small-case winery; but as we grew, now we’re
trying to upgrade and do it right, with as much state-of-the-art stuff as we
can. We’re always measuring and dissecting, trying to decide the best way
to move forward,” said Jarrod.
 Taste
Rated100
An unbroken string of highly rated wines from
Quilceda Creek has led Robert Parker Jr. to
name them the premier Cabernet Sauvignon
producer in the state of Washington.
Six Cabernet Sauvignons from this estate
were awarded a perfect 100 point score from
Wine Advocate. Results like this can only
come from a near-obsessive pursuit of quality
in all aspects of winemaking. That pursuit
led Quilceda Creek to forge an ongoing
relationship with M. A. Silva for wine corks.
Clean
Tested Zero
It was pass or fail. Quilceda Creek insisted
their stringent cork testing protocol be
employed. Thus, forty times more lot samples
than set by the Cork Quality Council were
tested by independent ETS Laboratories.
M. A. Silva corks passed.
When Quilceda Creek wanted our onebyone tm
individually tested corks, the same indepen-
dent verification of purity was required. We
passed again. For 17 years we have satisfied
Quilceda Creek with our own near-obsessive
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Santa Rosa, CA | 707.636.2530 | www.masilva.com
 Amista Vineyards
NV Sparkling Grenache, Dry Creek Valley, CA

Touting the Joys of Celebrating Non-Occasions with Bubbles

Sparkling wine isn’t just for celebrations grapes on the property and in 2015 released
anymore. Wine Business Monthly’s favorite bubbly
That’s not to say we shouldn’t be drinking offering: Sparkling Grenache, made from 1 acre
sparkling on a momentous occasion or of grapes budded over Syrah in 2011. In the
for holidays—if you ask Vicky Farrow and last two years, Amista Vineyards has launched
Ashley Herzberg, we should be drinking it Fusión, a sparkling cuvée and a vintage Blanc
every day of the year. Maybe they’re a little de Blanc.
biased—they’re in charge of the sparkling They aren’t alone in their love for sparkling;
wine program at Amista Vineyards, tucked Nielsen reports have shown strong gains
away along Sonoma County’s famed Dry for all sparkling sales—Prosecco, Cava and
Creek Road—but it does sound like they’re Champagne—over the last few years. In the
onto something big. 52 weeks ending Dec. 2, 2017, total sparkling
wine sales value was up 5 percent in Niel-
Though they produce a number of still wines made with some of the best sen-tracked off-premise sales—equating to more than $638.5 million in
grape varieties the Dry Creek Valley has to offer, Amista has made a name for sales. Once relegated to the New Year’s Eve or celebratory glass, sparkling
themselves among locals for their sparkling wines. wine has made a comeback, with national publications picking up stories
When Michael and Vicky Farrow first purchased 20 acres planted to about its food-friendliness, mixing potential and easy drinking.
Chardonnay in the Dry Creek Valley back in 1999, sparkling wine was not Amista Vineyards is doing its part to spread the word that sparkling can
at the top of their minds. They replanted 8 acres to Syrah, but it wasn’t be an everyday drink.
until 2008 that they made their first sparkling wine from the variety,
thanks to a request from the consulting winemaker at the time.
Thanks to this “experiment,” Amista devoted a barrel of 2007
and 2008 Rosé of Syrah and turned it into a sparkler. This flagship
sparkling was just the start of a decade of experimentation with
other varieties and new methods.
A few years later, Ashley Herzberg joined the team as winemaker.
She and Farrow share the same passion for sparkling, but it wasn’t
in her training. Herzberg earned a degree in chemical engineering
with the intent to pursue medical school. It only took one year
as a lab manager for Owl Ridge Wine Services for her to fall in
love with wine, and she spent some time with Mauritson Wines
learning more. When the Farrows hired
and approached her about sparkling
wine, she was up to the task anyway.
“It is a challenge in a completely
different way than making still wines.
And using the different varietals,
getting the right color…I mean I kind
of joked about it, like, ‘Oh that’s not
winemaking,’ but it really is. It is an important “We’re trying to show people that sparkling wines go really well with
part of it, dialing it in and knowing how much spicy foods—a lot of foods that are harder to pair, like Thai foods, Indian
skin contact it needs in that vintage. It’s been foods, things like that,” said Farrow. For the Wine Road’s Annual Wine
fun and challenging on a whole different level and Food Affair, she paired the sparkling Syrah with a lamb curry. In the
and I like that. I feel like I am constantly learning past, there have also been popcorn pairings, and she’s now working on a
and trying to evolve, and Mike and Vicky have chocolate pairing.
been so supportive. Especially if it’s bubbles— And with a popular bubbles-only wine club offering, Amista has certainly
then Vicky’s in.” cemented itself as a quality producer of sparkling wines in Sonoma County.
Since Herzberg joined in 2011, Amista has
launched a Blanc de Blanc from the Chardonnay

92 February 2018 WBM

 Ankida Ridge Vineyard
2014 Pinot Noir, Amherst, VA
Pinot Noir Defies Humidity, Frost
On the eastern slope of the Blue Ridge Mountains, Christine
and Dennis Vrooman decided to purchase some property
and settle down among the rugged mountains and oaks,
eventually choosing to make the site their home. In 2005,
they picked a spot at the top of the hill on which to build.
ANKIDA
But when the excavator came by to clear a spot for the
ALC 12 .8% BY VOL
contractors, he didn’t exactly follow the plan.
The Vroomans were understandably upset when the 2014
PINOT NOIR
excavator took it upon himself to clear an additional 2
acres below the house site, intending it to be for a nice
yard or provide a clearer view—they’re still not sure why.
It prompted a running discussion over the next couple of years
as the family tried to determine what to do with all the extra space, said
their son, Nathan.
At first, they thought a Christmas tree farm sounded nice or even some
maple trees. But the family was interested in the booming Virginia wine
scene, which was really garnering some attention
among locals back in the mid-2000s, he said. “It was
starting to pick up momentum, and they decided to
give it a shot,” said Nathan Vrooman, winemaker at
Ankida Ridge Vineyard, so they decided to move
forward with a vineyard project.
Before making a rash move, the family hired a
renowned vineyard expert and consultant, Lucie
Morton [who has written on viticulture for Wine
Business Monthly in the past on important topics
such as Red Blotch and has had a great influence
on the vineyards of the East Coast] to determine
what they should plant. At 1,800 feet, and in a
region known for heavy rains in the fall and stifling
humidity in the spring and summer, that wasn’t necessarily the easiest
planting to determine. Morton said that there were two varieties that
would best take advantage of the site’s elevation and weather conditions:
Pinot Noir and Chardonnay.
“Very few people are growing Pinot Noir out here,” said Vrooman.
“Everyone advised against it. It’s a thin-skinned, tight cluster of fruit
susceptible to mold and mildew, and Virginia has a fair amount of rain and
high humidity. It’s a risky move.”
Pinot Noir was planted in 2008 and so far, according to Vrooman,
it’s been great. With eight Pinot Noir vintages on the books, he says
he’s been pleased with all of them. “Some were more challenging than
others, but generally speaking, the vineyard has made consistently good
Pinot Noir.”
Because Virginia does see high vintage variation due to the weather,
with quite a bit of rain that can affect ripening and picking times, Pinot
Noir turned out to be the perfect grape for the site. For the most part, it
ripens early, and Vrooman reports that each year since 2010 he’s been able
to pick before the most damaging of the weather can roll in, providing
94 February 2018 WBM
a fairly consistent crop. That ripeness pattern has lent
itself to creating a more Old World-style Pinot Noir, with
lower alcohol and lighter extraction than its Californian
counterparts.
Vrooman lets the fruit do its thing, something he had
RIDGE
VINEYARDS to learn from mentors and the community after he fell
into the winemaker role. In 2010, he was in the process of
moving back home from Colorado when the first true vintage
VIRGINIA
was growing. The family was determining what to do with the
crop when he saw an opportunity.
“We discussed the option of selling the fruit or doing some contract
winemaking. Ultimately, we decided it would be best to use the fruit
ourselves and to bring the whole story together, which for us was making
the wine ourselves under our brand,” he said. “I basically just volunteered.”
Vrooman relied on local resources, the community college, consultants
and the community at large to help him learn the basics of winemaking in
a very short amount of time. It was in the first class he
signed up for that he met Scott and Rachel Stinson,
a father and daughter in the same situation of just
starting their vineyard and winery. After speaking to
them, Nathan decided to make his first vintage at their
winery, Stinson Vineyards. He also took the time to
reach out to another renowned consultant, winemaker
Matthieu Finot, to assist him in his journey. Finot taught
him a conscientious, dutiful approach, which allows for
a wine’s terroir to truly shine through.
Since then, the Vroomans built their own winemaking
facility capable of producing around 1,000 cases,
started leasing a vineyard five miles down the road to
support their Chardonnay line, planted 3.5 more acres
of Pinot Noir, a little more Chardonnay and Gamay, and Nathan married
Rachel a few years after their meeting.
The 2014 Pinot Noir is emblematic of another milestone: It is the first
Pinot Noir produced entirely with estate-grown fruit. In the past, Vrooman
would need to source grapes from elsewhere in the state to satiate
demand or recoup from a rough growing year. Growing and selling grapes
in Virginia has its challenges, but this feat would not have been possible
without support. “The biggest benefit in this state is the community of
winegrowers and vineyard managers. Everyone is in the same boat, and
it’s nice having a community of support, knowledge, sharing and overall
excitement. Everyone wants to do a better job of growing fruit, there’s no
sense of competition or bringing others down—it’s a nice comradery.”
While the winery has seen some tremendous progress and growth,
Vrooman is determined to keep the focus on quality.
“I would like to get to a point where we are maxxing out our production
facility, making quality wine, managing the current vineyard and the new
vineyard as best we can, and I would like to see everything remain at that
level for a while. No one in the family wants to get bigger than that,” he said.
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 Band of Vintners
2015 Consortium Cabernet Sauvignon, Napa, CA

Collaboration at the Heart of Affordable, Enjoyable Napa Cab

In households across the country, other team. “After seven years of
oenophiles gather together to taste N A PA VA L L E Y
tasting together, we’ve come to know
wines. Some are more systematic CABERNET SAUVIGNON
each other and have agreed on a style
about the tastings than others, such that is modern, approachable and
2015 HARVEST

as participants preparing to take their MARK POREMBSKI

balanced, but also uses winemaking
Master Sommelier or Master of Wine CO N S O RT I U M STEPHANE VIVIER

BARRETT ANDERSON
techniques that are traditional,” said
exams and are rigorous in their tasting CABERNET SAUVIGNON DAN PETROSKI Vivier.
notes and process. Some gatherings CAMERON HOBEL

JASON HELLER
Grapes for the 2015 Consortium
are much more informal: just a group BRENNAN ANDERSON were sourced from friends and neigh-
of friends hanging out and trying bors’ sustainably farmed vineyards
CELLARED AND BOTTLED BY 750ML
wines from a new variety or region BAND OF VINTNERS / NAPA / CA CONTAINS SULFITES
ALC 14.5% BY VOL
across the Napa Valley hillsides and
BANDOFVINTNERS.COM
for the fun of it. And sometimes, it’s GOVERNMENT WARNING: (1) ACCORDING TO THE SURGEON floor. The 2015 vintage was a short
GENERAL, WOMEN SHOULD NOT DRINK ALCOHOLIC BEVERAGES DURING
a group of winemakers honing their PREGNANCY BECAUSE OF THE RISK OF BIRTH DEFECTS. (2) CONSUMPTION
OF ALCOHOLIC BEVERAGES IMPAIRS YOUR ABILITY TO DRIVE A CAR OR
one, but produced very intense
2 0 1 5 H A R V E S T • N A PA VA L L E Y • C A L I F O R N I A
OPERATE MACHINERY, AND MAY CAUSE HEALTH PROBLEMS.
craft, learning new techniques and grapes with a good tannin and natural
processes from each other, going over concentration balance. The resultant
the latest vintage or release. wine spent some time in 35 percent new French oak, but was pulled out
One such tasting group turned into a winemaking project. into tank fairly early so the final blend would have some time to marry
Band of Vintners was born from a seven-member tasting group, each together and soften, according to Vivier.
member with a unique wine knowledge base and hailing from across Napa Four of the band of vintners really focus in on the winemaking portion:
County: Stephane Vivier, a winemaking consultant from Vivier Wines Vivier, Anderson, Porembski and Petroski. The wine is made at Cuvaison
and winemaker for Hyde de Villaine; Estate Winery in Carneros; and while
Cameron Hobel, owner of Hobel Petroski likes to call Vivier the director of
Wines in Napa; Brennan Anderson, winemaking, the four have a fairly unique
vice president of marketing and partner winemaking system: they all work together
at Folio Fine Wine Partners; Jason so that if one has the time to spare from
Heller, a Master Sommelier and vintner all his other winemaking projects, then
at Scale Wine Group, with stints at he runs the next step in the Consortium
Harlan Estates and Promontory; process. “It’s really a versatile group, and
Barrett Anderson, associate wine- we know each other pretty well. We know
maker at Jackson Family Wines; Mark the goal. We know the way. I don’t think
Porembski, winemaker and owner of we need a long discussion to know what
Zeitgeist, and winemaker at Anomaly needs to be done to make the wine,” said
Stephane Vivier
Vineyards and Lost Cellars; and Dan Vivier. “These guys have been doing it for
Petroski, winemaker at Larkmead Cellars. so long and for so many brands and work with so many incredible wines. It
“We’ve been meeting regularly for the past seven years,” said Vivier. doesn’t take long for them to just click and know what needs to be done.”
“Each of us brings something unique to the group.” Consortium is a Napa Valley Cabernet Sauvignon that over-delivers at
With that many winemakers and wine industry peers in one group, the its modest $50 price point. The group’s goal has always been to provide
seven realized one day that they had more than 140 years of experience a delicious, quality wine at an unbeatable price and will keep that top
combined—a wealth of knowledge, and connections. If they banded of mind, whether expanding production or introducing a new varietal.
together, they could pool resources and expertise and create an outstanding Wines are sold directly by team members to other members of the trade.
wine—what would eventually become Consortium, a Napa Valley Cabernet The 3,500-case 2015 vintage was sold across nearly a dozen states and
Sauvignon. “We’re a band,” said Vivier. “There’s seven of us. I may be the in Japan, Switzerland, Norway and Canada as well. In 2016, the group
joker of them, but I like to say, ‘Yes, a band: Rolling Stones, Beatles. Some- bumped production to 5,000 cases and are hoping to continue to increase
thing with a lot of energy that is serious.” production.
That energy has been funneled into a collaboration to create a fun, “We’ll go where it takes us,” said Vivier. “It’s a smart bunch, so the goal is
approachable, yet serious, wine. Each contributes something different to to grow, but the real goal is making delicious wine at an unbeatable price,
the wine—but with seven prominent members with seven different palates, so this is a very difficult goal too. We are very conscientious of that.”
coming up with a house style could have been a real challenge for any

96 February 2018 WBM

© 2018 StaVin Inc.

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 Bella Grace Vineyards
2016 3 Graces Blanc, Plymouth, CA

Inspiration Leads to Award-Winning White Blend

It was sage advice from an industry stalwart In the end, it was 6 tons of Syrah that gave
that tipped the Havill family off to the virtues Michael her first foray into winemaking. Intending
of Amador County and a self-described to simply grow and sell grapes, the Havills did
“slippery slope” that led to the purchase of not have a full-scale wine production facility.
20 acres of vines and the creation of Bella However, they just couldn’t bear to let unsold
Grace Vineyards. grapes go to waste and, with the help from
“We decided in late 2005 to go to the the winemakers across the road at Renwood,
Vintner’s Holidays at the Ahwahnee, produced their first vintage from that Syrah.
because Koerner Rombauer was going “That opened the door to this other adven-
to be pouring his wine, and we loved his ture,” she said.
wine. We hit it off with him really well, and Kismet continued for the family and, in
told him we were interested in purchasing perhaps the first known positive of California’s
a vineyard,” said Bella Grace co-founder six-year drought, low yields resulted in the
and winemaker Michael Havill. She and her decision to make a Rhône blend of Vermentino,
husband, Charlie, were looking to leave Roussanne and Grenache Blanc in 2015. When
the corporate life and the Bay Area when Michael realized there wasn’t enough of each
they met Rombauer. “He told us, ‘Well, if varietal for separate bottlings and labelings,
you want to buy a vineyard, go to Amador she took a stab at a blend—what became the 3
County because you can get an affordable piece of property there: the Graces White. “I think the 3 Graces White was good. It wasn’t great, but
grapes are great and the winemaking is getting better and better.’” it was good,” she said.
From there, the duo started scouring Amador County websites for poten- The following year (2016) she was inspired to make the blend on purpose.
tial vineyard locations. They never intended to “retire” to the vineyard life “We had a little bit more spring rain, so the yield went up in 2016. The
full-time, but their son, Steve, instantly fell in love with Amador and wanted growing conditions were great; we didn’t have the horrific heat,” she said.
to attend Amador High School. “So, we decided to bail out totally, moved “So, the grapes all ripened beautifully.”
up here, and became full-time “It was spectacular. That’s how the 3
grape growers,” she said. Graces Blanc came to be.”
The two ended up The 2016 3 Graces Blanc, made of
purchasing 50 acres, 20 63 percent Grenache Blanc, 23 percent
of which were planted to Vermentino and 14 percent Roussanne has
winegrapes. The vineyards already started winning awards at compe-
weren’t in the best shape and titions, including a Gold Medal at the 2017
Charlie, who has developed Indy International. A light, crisp wine, it is
a real talent in the vineyard, a great representation of how well white
replanted the Zinfandel varieties can thrive in Amador County.
which, until he came along, Bella Grace’s total wine production—
remained on its own root- which includes a number of Italian vari-
stock and suffered from a etals—is just approaching 10,000 cases.
phylloxera problem. Charlie Over the next five years, they hope to
also made the effort to learn increase output to 15,000 cases and are
as much as he could about working to gain better distribution across
biodynamic and sustainable California. Direct-to-consumer sales will
Michael and Charlie Havill
farming and incorporates remain a focus, especially as Amador
those practices into his farming; Bella Grace does not use pesticides or any County wineries and agencies continue to invest in infrastructure to support
inorganic substances. Under his watchful eye, the Havills have cultivated a growing tourism industry.
Primitivo, Zinfandel, Grenache, Vermentino, Grenache Blanc, Syrah, Petite In the meantime, their wines continue to win awards: The 2016 Vermen-
Sirah and Mourvèdre. tino was awarded Best of California at the 2017 California State Fair
“We have the ability to make lots of different wines and blends and Commercial Wine Competition. It also earned double gold medals, Best of
straight varietals; all of that is possible for us here,” said Michael. Region – White, and Best of Class of Region.

98 February 2018 WBM

 Parrish Family Vineyard
2013 Petite Sirah, Paso Robles, CA
Trellis Expert Builds Family’s Ag Legacy with Winery
David Parrish’s story starts with his grandfather, Earl
Henderson, and continues to this day with a winery and
trellising company on the Central Coast. A self-professed
explorer, Parrish is no stranger to the vineyard—from a
young age he began working with his grandfather, who
had a golf course and 740-acre vineyard in Atascadero.
Today he is widely heralded for pioneering 24 new
trellising systems.
Following in his grandfather’s footsteps, David Parrish
was called to the vineyard. After graduating from U.C.
Davis, he started a trellising company but was called
back years later when the university asked him to partic-
ipate in a vineyard trial with then-viticulture department
head Dr. Mark Kliewer. In a 5-acre vineyard trial, the two
worked on new trellising methods. In the 1990s, Parrish
patented 24 innovative and modern trellising systems.
His work attracted the attention of wineries the valley
over and with encouragement from Dr. Kliewer, Parrish went out to trellis
new and replanted vineyards in Napa. Unsure whether he wanted to, he
nonetheless gave it a shot and ended up developing vineyard trellising for
Robert Mondavi and Beringer, among others.
Parrish journeyed back to his roots, desiring a vineyard
of his own. He returned to the Paso Robles area and
planted 40 acres of Cabernet Sauvignon in Creston,
California. Years later, in 2004, inspiration struck again;
and as his daughter Cecily tells it, all it took was a glass
of wine, a nice day and the thought of taking his grand-
father’s legacy a step further by starting his own winery.
“My mom and I said, ‘Ok. Here we go,’” she joked.
That first vintage, her father worked with various wine-
makers to help create their inaugural Cabernet; it wasn’t
until 2005 that Parrish Family Vineyard launched its first
vintage made entirely by Parrish. It continues to be a
family affair to this day: Cecily serves as general manager,
and her husband, Ethan Ray, is the assistant winemaker
and assistant vineyard manager.
Their venture continues to evolve and grow. In 2011, they opened a
downtown Paso Robles tasting room, but a new, green facility is being
built on the property, about a 15 minute drive from downtown, in order to
better cater to the growing tourism business on the Central Coast.
Vineyard size has also doubled, up to 80 acres now, and includes other
Bordeaux varietals beyond Cabernet Sauvignon. But it was a Rhône varietal,
a 100 percent Petite Sirah from 2013 sourced from Templeton Vineyard
that caught WBM’s eye.
Typically used for their Silken line of blends, the Petite Sirah was so good
on its own that Parrish wanted to step up and make a single-varietal wine
with it. “He just loves that challenge. He likes to work on taming the tannins
but still maintaining the characteristics of the variety,” said Cecily. “What I
100 February 2018 WBM
really enjoy about our Petite Sirah is that we’ve picked
quality fruit. It still has the tannins, but also the delicious
black and purple berries and plum, with some spice and
vanilla.”
In 2013, the Central Coast was beginning to feel the
effects of a water shortage caused by the drought, but
it remained a high-yield year. Though the grapes were
difficult to sort that year, Cecily and David were incred-
ibly happy with that harvest and with how the Petite
Sirah turned out. They have even planted some Petite
Sirah on their Templeton Vineyard estate, and their first
estate Petite Sirah was harvested in 2016 and remains
in barrel as of press time.
Interest in the variety continues to grow, particularly
in the tasting room. “I think that people are starting to
embrace it; even in the tasting room I notice it. There
are a lot of fans of Petite Sirah. They love that big, dark
wine. It’s a delicious wine. I see it continuing to grow,” said Cecily.
Growth and experimentation will continue at Parrish Family Vineyard.
“We’re now growing so many varieties, including Petite Sirah, that my dad
might even come up with a new idea for different types
of blends. I think he has a lot more variety now, so he
can be more creative. That would be David Parrish: He
definitely likes trying and seeing new things happen,”
said Cecily.
David Parrish continues to tinker, research and invent
new vineyard methods and supplies. Wine Business
Monthly recently took a tour of his vineyard in Paso
Robles, where a newly installed shade cloth is proving
beneficial for a number of the grapes he’s growing—
he’s also finding applications in the Central Valley, on
kiwi, peach and cherry plants.
The white shade cloth can prevent 70 percent of the
UVA and UVB light from reaching the grapes, provides
sunburn protection from the harsh afternoon sun and
allows longer hang-time and more even ripening of
grapes—the latter is said to create a higher phenolic profile. In rougher,
calcareous soils, the cloth has been shown to help take some stress off the
vines, allowing it to spend its energy on fruit and canopy development.
“It gives you the ability and cover to do all the crazy things you want to
do to a vine to boost phenolics,” David Parrish said.
Parrish designed the material himself and sells and installs it. Winemakers
on the Central Coast are appreciating its benefits. Daniel Daou has been
using it for the last four years, and Parrish recounted a year in which his
own grapes went without shade cloth because he sold out of the material.
Parrish sells a number of his own grapes to wineries like L’Aventure, O’Neill
Vintners & Distillers, Clos Selene and Edna Valley Vineyards.
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 Stewart Cellars
2016 Sauvignon Blanc, Carneros, CA

Second Generation Takes Opportunity to Experiment Beyond Cab

Winemaking runs in the Stewart family. ‘Try this,’” said Caroline. “You know that
When patriarch Michael Stewart maybe if it doesn’t go quite well or if it
decided to leave the computer engi- doesn’t sell as well as we thought it would,
neering business in Texas, he “retired” we’re okay with that because we had fun
to California wine country to start his doing it, we support it and we like it.”
own winery. “He loved wine and, as you James echoed that view. “We’re working
do, you come out to California and you with artists. Winemakers are artists, and
find the one winemaker you love and it so you need to let them be who they are
happened to be Paul Hobbs at the time,” and make wine to speak to their taste and
said his daughter Caroline Stewart. “My their palate and what they feel they want
dad came out here, he tracked down Paul to share with other people,” he said.
Hobbs, he got Hobbs to agree to make One of those trials was the 2016 Sauvi-
some wine for him and so it was born.” gnon Blanc, a distinctly non-New Zealand
Paul Hobbs proved to be essential in style Sauvignon Blanc, despite Guthrie’s
the creation and duration of Michael Kiwi roots. Made with the Cabernet
Stewart’s “hobby,” Stewart Cellars. drinker in mind, the Sauvignon Blanc is
Caroline started working for Hobbs in his own winery in 2009, learning reflective of the Napa soil, with more depth, acid and texture—and even
from him for two years before joining the family outfit in 2011. It was while some French oak cooperage.
she was an intern at CrossBarn Winery that she met her husband, Blair “That was really cool, for Blair at least, to approach making a Sauvignon
Guthrie. Guthrie now runs Stewart Cellars’ winemaking program, with Blanc that a Cab drinker would love, which would seem impossible, but I
Hobbs serving as consultant. think we did it,” said Caroline.
Her brother, James, joined the team Sauvignon Blanc fruit is sourced
in 2005 and immediately set out to from Stanly Ranch—a vineyard the
rebrand the winery and introduce new three had never worked with before
varietals to the solely Cabernet Sauvi- this project. The endeavor turned out
gnon and Pinot Noir line-up. Within well as Guthrie, the Stewarts and the
the next five years, the winery would growers were of the same mindset
release a Chardonnay from Sonoma when it came to decision-making.
Mountain, a Las Piedras Vineyard-des- The goal was to let the fruit’s charac-
ignate reserve wine called Nomad, a teristics shine—to make something
Sauvignon Blanc, Rosé and Red Blend. that had breadth and intensity and
“It just became more and more of wasn’t necessarily the Sauvignon Blanc
an actual business, not just a hobby everyone expected.
anymore. It was a real brand with a “I think traditionally Sauvignon Blanc
recognizable name and with passionate has been thought of as a quick and
James, Caroline and Blair
people behind it,” said Caroline. easy, cheaper wine: you do steel tank
In 2016, Stewart Cellars opened up its first tasting room in the heart fermentation and you’re out of the vineyard and into the bottle, and it’s
of downtown Yountville, outfitted in tartan as an homage to the family’s $10,” said James. “In Napa Valley, we don’t look at things that way. We
Scottish heritage. It’s a cozy, inviting space that provides an outlet to reach take our time.”
out to customers and get them excited about the story, the team and the He says he’s heard “I love your Sauvignon Blanc,” since its release in
second generation’s penchant for non-Cabernet varietals. spring 2017, and hopes to continue to produce it. “The vineyards that
“One of the benefits of being a family-owned brand is that we can exper- are here that are still Sauvignon Blanc are amazing, just like the one we’re
iment. We don’t have a lot of pressure on us from the market or various currently using,” said James. “I think in the future people will continue to
distributors or things like that. With my husband being our winemaker now, experiment and try and make Sauvignon Blanc evolve, and we can continue
when he says, ‘I really want to make Rosé,” we were like, heck, we’ve got a to build on the reputation that Napa Valley knows what they’re doing
tasting room, we have an outlet, we have a way to put it in front of someone with Sauvignon Blanc and they’ve elevated it beyond what the traditional
who had maybe never had an interest in a particular wine before and say, expectation was.”

102 February 2018 WBM

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 Syncline Winery
2016 Picpoul, Boushey Vineyard, Yakima Valley, WA
Unique Topography Meets Unique Grape
There’s a geology term for the downward fold
or valley created in a trough of stratified rock
in which the beds dip toward each other from
either side: the syncline. These rock forma-
tions can be found the world over, though
some have become well-known in their own
right, like The Catlins in New Zealand or the
Powder River Basin in Wyoming.
In Washington’s Columbia Gorge, a series of
eruptions created the Columbia River Basalt
Group, which formed a series of synclines
and anticlines (ridges) in the Columbia Basin.
One such series is known by geologists as
the “Bingen Syncline” and by locals as the
“Coyote Wall,” named for the steep, 1,800-
foot basalt cliffs that reach up and out of the
Columbia River. The formation provides a
breathtaking backdrop for a vineyard and winery sitting in the syncline.
These features provide the name for Syncline Wine Cellars, based in
Lyle, Washington on the eastern edge of the Columbia Gorge AVA. The
winery was founded by James and Poppie
Mantone, a husband and wife team who
met while working the cellar at LaVelle
Vineyards in Oregon’s Willamette Valley.
James Mantone moved out to the
Willamette Valley in 1994 from the Great
Lakes area to pursue winemaking, a love
he picked up while studying microbiology.
It was a professor from Indiana who gave
him a bottle of Oregon Pinot Noir that
kick-started Mantone’s interest in the
Northwest.
“Winemaking was a great way to
combine intellectual and physical chal-
lenges,” he said. At LaVelle Vineyards,
he learned cellar practices and met his
wife—but he was also exposed to the
beginnings of Rhône plantings and
production occurring in Washington state.
“We were intrigued by the early Rhône
varieties coming out of Washington in the
mid-90s,” he said. “It was eye-opening. I
thought, ‘Wow, we can make these wines
in the U.S. too.’ But it was very early on
in that period of time; you have to take
Cabernet to get Syrah—how things have
changed.”
So, like many of the world’s most creative
winemakers, the Mantones left LaVelle
104 February 2018 WBM
in order to pursue their interest in Rhône
varieties and run their own outfit. They found
a property on the eastern Columbia Gorge,
Steep Creek Ranch, a vineyard owned at the
time by their friends Pat and Joe Campbell
from Elk Cove Vineyards, and relocated the
family to pursue the passion.
“I wanted to work with these varieties that
were exciting and on the fringe at the time,”
he said.
The winery sits right at the climate transition
zone, and Mantone said that he’s constantly
pursuing the best grapes for the site. “We’re
definitely still exploring what does well and
what can be expressive of the area. It’s not
simply to make a good wine but a wine that is
distinctive of where it’s grown,” he said.
One thing he has learned, however, is that his site is too cool for Picpoul
to ripen fully. For that, he would look to another legendary grower, Dick
Boushey, and source the grapes from Boushey Vineyards in the Yakima
Valley. It’s still a cool site but warmer than
Steep Creek Ranch, and the grape is able
to thrive there.
Picpoul, a moderate to late ripener
that shows bright lemon characteristics,
immediately appealed to Mantone and his
palate. “Picpoul is delicious. It’s my back-
ground from Willamette, but I look at acid
as one of the primary characteristics to
build wine around, and Picpoul has loads
of acid,” he said. “One of the things I find
exciting in white wines is when they have
an energetic vibration about the acidity,
when you taste it and there’s a nexus in the
acid level—the acid performs differently
and isn’t just high acid. Picpoul in some
places in Washington definitely does that.”
It’s a tougher sell, but Mantone has seen
interest and excitement for a new, fresh
wine in his tasting room, especially when
shown among a range of white wine styles.
“I just think Picpoul is really cool,”
he said. “The three whites we make are
oddball whites. They are all independent
of each other, with Grüner Veltliner being
more savory, Grenache Blanc richer and
Picpoul being bright and fresh. It’s such a
cool grape—it fits in well.”
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 Vidon Vineyard
2015 EXPLORER Tempranillo, Newburg, OR
Exploring Space and Terroir
Science meets art at Vidon Vineyard,
a boutique winery just outside of
Newburg, Oregon: It’s helmed by two
Ph.D.s who believe in site-specific
wines and true expressions of the land.
Vidon was founded by Don Hagge,
Ph.D. and former NASA physicist, an
explorer in his own right.
“I like to tinker around with stuff. I
always try to find ways to make things
more efficient and to have fun,” he
said.
Hagge grew up on a farm in North
Dakota, where he enjoyed planting
and digging around in the dirt, but his
interest in wine started while studying for a Ph.D. in physics at UC Berkeley.
“At the time, I could count five or six wineries in Napa—the Mondavis were
unknown in those days. I would go there all the time and taste. That’s also
when I got the interest to change to physics and did post-grad work at a
university in France,” he said.
He didn’t immediately pursue that oeno-itch though; Hagge went on to
enjoy an extensive career in physics and high tech.
Disenchanted with the physics work done in France, it was at the sugges-
tion of Nobel Prize winner Louis Alvarez that Hagge applied for a position
at the National Aeronautics and Space Admin-
istration because “That’s where the real physics
discoveries would be.”
Hagge applied to the astronaut program but
didn’t make it in. Instead, he worked on satel-
lites in the Apollo age. In the late 1960s, NASA
re-organized and created a physics branch. The
deputy director at the time called and told Hagge
of the plans. “I went to Houston; I couldn’t refuse
the possibility of working on the program,” he
said. Hagge remained with NASA until Apollo
13, measuring and studying galactic and solar
radiation on satellites.
Silicon Valley called, however, and Hagge spent
a number of years in high tech as an entrepreneur
and consultant. He’s helped in the restructure of several organizations and
created his own company that revolutionized the data acquisition, analyses
and control of laboratory analytical instruments for medical, pharmaceu-
tical, food processing and chemical applications. In 1996, he ended up
with a new company in Oregon, where he would once again change the
direction of his career.
“I used to bike, and I fell in love with the land. I needed a change of pace,
so I bought this land and started farming in 1999,” he said.
Vidon Vineyard was planted to Pinot Noir and a few other varietals. In
2015, inspired by his work at NASA, Hagge started production on three
106 February 2018 WBM
wines to honor the programs he
spent so much time working on: 2015
Explorer Tempranillo, 2015 Saturn
Syrah and 2015 Apollo Chardonnay.
All were launched in 2017
The Explorer Tempranillo, which
WBM chose for its Hot Brand list
this year, is named for the satellite
program. Explorer 1 was the first
U.S. satellite ever placed into orbit
in 1958 and the first satellite to
carry scientific instruments. Hagge
designed on-board instrumentation
for Explorers 38, 39 and 40 to measure
solar and galactic cosmic radiation in
ways not previously possible.
Tempranillo is an apt grape for the Explorer name. The Willamette Valley
isn’t well-known for Tempranillo, and there are very few acres dedicated to
the grape. Much of the Tempranillo in Oregon is planted further south, in
the Applegate, Rogue and Umpqua Valleys.
“Not everyone is a Pinot Noir freak, and I find that in the tasting room the
two-thirds acre of Syrah and three-quarter acre of Tempranillo on a warm
site with early-ripening rootstock show well,” he said.
Like all his other wines, the Explorer Tempranillo is made with non-in-
terventionist methods. Hagge believes in letting
the grapes evolve naturally—he’s never inocu-
lated for yeast or malolactic, prefers not to use
additives and isn’t hung up on the “traditional”
winemaking methods.
“I’m not UC Davis-trained. I do a lot of things
by feel and instinct, using the scientific method,”
he said.
Though Hagge admitted, “I can’t keep my
nose out of it,” he’s brought in another Ph.D.
to run the winemaking side of the business so
he can focus more on sales and marketing—and
finding a distributor in California.
Molecular biologist David Bellows joined
Vidon as head winemaker in June 2017. Bellows
found science through wine; a stint as beverage director at NYC restaurant
Aurora Grille inspired him to enroll in chemistry classes at the University
of Arizona. However, the “shiny toys” in the research labs pulled him away;
and after nearly 20 years of international research, teaching and grant
writing, Bellows wanted to pursue his original career goal and started
working harvests in the Willamette Valley in 2011. He continues to teach a
few wine-related science courses at Chemeketa Community College.
Both Bellows and Hagge have similar philosophies on winemaking and
work together to craft wines from five varieties.
The Artisan Capsule Maker
 Winery Sixteen 600
2016 Sixteen 600 Rosé Steel Plow Vineyard, Sonoma, CA
Making Serious Rosé Fun
Rosé may be hot right now but don’t confuse Phil
Coturri’s Steel Plow Vineyard Rosé of Grenache for a
wine made to jump on the trend’s bandwagon.
Phil Coturri has spent a lifetime in wine. He made his first
wine back in 1963 at the age of 11, making wine with his
father. At 14, he and his father planted a vineyard, which
still exists to this day. In 1979, they added a bonded
winery that Coturri and his brother ran for around 30
years before philosophical differences over what wine
should be helped him make the decision to start his own
outfit. Winery Sixteen 600, based on Moon Mountain
in Sonoma, California, is all about place: its name is
quite literally its address.
Though he owns the winery, Coturri says he’s not a
winemaker. He works with winemakers who share the
same belief that drinking a wine should let you experi-
ence the vineyard it came from.
He grows everything from Cabernet to
Zinfandel, but it’s the Rhône varieties that
he sees as the shining stars. “I’ll drink Rhône
varieties five out of seven days of the week,”
he said. Why? “Maybe ‘cause I get tired of all
the intellectualization of Cabernet,” he joked.
“Rhône varieties are as sophisticated as any
Cab, but to me they’re more comfort wines.”
The climate and soils in Sonoma County
provide a great fit for the Rhône varieties;
Mourvèdre, he said, would do well here and
should be planted more. But it was another
Rhône grape, Grenache, that he particularly
enjoyed, and in the tradition of true Rhône
Rosés, he made his own pink wine.
Winery Sixteen 600’s Rosés are entirely
intentional. From the start of the growing
season, the grapes are treated with the
knowledge that they will be turned into Rosé.
“It’s not just going to be, ‘We have a bunch
of extra juice, Rosé’s really hot right now, let’s
sell some Rosé.’ I mean, great, that’s part of
Phil and Sam Coturri
108 February 2018 WBM
it, but even the Rosés are made to be an expression of
the vineyard,” said Sam Coturri, Phil’s son and the sales
and marketing lead for the winery. “We’re not the only
ones doing it, but we’re making Rosé that has as much
seriousness as any of the red wine or any of the white
wine. It’s not just because it’s fun. The bonus is it’s fun,”
he said.
In addition to the Steel Plow Vineyard Rosé, the
winery also makes a Rosé of Grenache sourced from the
Miller Vineyard up Soda Canyon in Napa Valley. “The
cool thing, because we did two of them, and as a way of
initiating that conversation, is that we could say that this
wine actually has a story of why it exists ,and we’re not
sixteen going to make a wine here unless there’s a really good
reason that it should be made.”
600 Phil has a soft spot for the Grenache he grows,
2 016 Steel Plow Rosé whether it’s for Rosé or red wine.
Sonoma Valley “The goal here is in five years, you can come
in, and we’ll pour six wines all from the same
vintage, all from Grenache, but six different
vineyards. One of them is probably going to
be a Rosé, and you know, it’ll be from Napa
Valley. It’ll be from Sonoma Valley. It’ll be
from the top of the mountain to the valley
floor and really dig in to what our purpose
here is, and that’s that pursuit of place,” he
said.
“The great thing about Grenache is you
don’t have to be an expert wine taster and
know all the things about Cabernet to sit
down and appreciate it tasting like that.
With Grenache, you could be new to wine
and sit down and really see those differ-
ences. They’re so clear and so approachable
because of just how bright and up front the
fruit is that people can sit down here and take
a tour of Sonoma and Napa Valley and never
leave their seat. That’s where this is going.
That’s the goal here.” WBM
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winemaking
INNOVATION+QUALITY

Submit a wine trial: www.winebusiness.com/winetrials

Winemaker Trial
The Phenolic Challenge: Whole-Cluster
Pinot Noir vs. Adding Stems Back
Vintage to vintage, winemakers need to assess how the quality of whole clusters
determine the need for a boost in tannins derived from adding stems. The differences
are often subtle, as the winemakers at Oregon’s Adelsheim Vineyard learned.

Michael S. Lasky
Michael S. Lasky is the former editor of AppellationAmerica.com and is the
author of hundreds of articles for national magazines and newspapers.

believe that trials are the

W I N E B U S I N E S S M O N T H LY ’ S E D I T O R S
embodiment of a winemaker’s pursuit of quality and has featured more
than 70 trials at the last three Innovation + Quality conferences. IQ, a
forum for ultra-premium wineries focused on cutting-edge innovations
that advance wine quality, launched in 2015. Each month, WBM features
a more in-depth examination of a selected winemaker’s trial, examining
what led to the creation of the experiment and the knowledge the
winemaker took away from the end results.
After collecting more than 70 trials over the past three years, Wine
Business Monthly has launched its Trials Forum, a space for winemakers
to share their trials so that all can learn from their findings. Check out the
trials or submit your own at www.winebusiness.com/winetrials

WINERY: Adelsheim Vineyard, Chehalem Mountains, Willamette Valley,

Oregon ANALYSIS NAME LOT 1 LOT 2 UNITS

total sulfur dioxide 51 50 mg/L

WINEMAKERS: David Paige, winemaker, and Gina Hennen, associate
total anthocyanins 303 289 mg/L
winemaker [Editor’s note: In December 2017, David Paige left Adelsheim
to work on a new project; Gina Hennen was promoted to winemaker.] titratable acidity 6.2 6 g/L

tannin 209 242 mg/L

OBJECTIVE: To explore the organoleptic differences between a whole-
pH 3.61 3.57
cluster fermentation versus the same amount of stems added back.
polymeric anthocyanins/tannin index 0.053 0.054
SUMMARY: We fermented one tank with 25 percent whole-cluster (75
polymeric anthocyanins 11 13 mg/L
percent destemmed) and an identical tank with 25 percent stems added
molecular sulfur dioxide 0.33 0.43 mg/L
back (100 percent destemmed). In each case, the stems or whole clusters
were at the bottom of the fermenter. Each had a four-day cold soak. glucose + fructose 0.1 <0.1 g/L

Following that, the tanks were warmed, and the fermentations started free sulfur dioxide 21 25 mg/L
(uninoculated). Cap management was the same for each fermenter, ethanol at 60F 13.63 13.54 % vol
with one to two punch-downs per day. The fermentation curves were ethanol at 20C 13.67 13.58 % vol
very similar throughout, with mixed temperatures ranging from 75° F
catechin/tannin index 0.187 0.174
to 80° F during the height of ferment. The tanks each had four days’
post-fermentation maceration, and they were pressed on the same day, catechin 39 42 mg/L

for a total of 14 days on the skins. volatile acidity (acetic) 0.64 0.73 g/L
The goal for this experiment was to explore the difference in perceived
ETS LABORATORIES
tannin between the two treatments. In more challenging, wetter years
we’d like to have the option to carefully sort fruit instead of dumping
whole clusters into the tank. In such years, it would be helpful to use CONCLUSION: While we do perceive differences between the two
recovered stems, potentially from a different lot, post-sorting. treatments, we find the stem addition to at least mimic the tannin impact
of a whole-cluster fermentation. We would definitely consider adding
Lot 1: 16PN QM 16 A (Whole clusters)
stems back to a fermenter when we’re looking to add a whole-cluster
Lot 2: 16PN QM 16 B (Stems)
effect to a given lot.

112 February 2018 WBM

 E N H A N C I N G

C R A F T
S I N C E 1 9 7 8

etslabs.com
Winemaker Trial The Phenolic Challenge: Whole-Cluster Pinot Noir vs. Adding Stems Back
Winemaker’s Postmortem
What led to this particular trial?
Gina Hennen: We like to do a bit of whole cluster with various vineyards,
particularly the Quarter Mile Vineyard. Because the tannins of a whole
cluster remind us of the tannins of the vineyard, it seems to really help
accentuate what we see from that site. But, some years we prefer to sort
the fruit, and so using stems instead of whole cluster might give us some
of the same structural tannins with the ability to also sort the fruit going
into the tank.
For more information contact your sales representative or email us at info @seguinmoreau.com
114 February 2018 WBM
David Paige : We also have something of an internal debate about what’s
desired by using whole cluster, particularly with this vineyard. Is it that we
like the stem tannin? Or is there something gained from a slight carbonic
quality, say from having so many whole berries still in there? I don’t know
that Gina and I entirely agree on this. That’s one of the interesting things
about the complexity of it.
Gina Hennen : I tend to be the one that prefers whole cluster. I think it
creates a more complex and complete wine than the stem. But I think the
stem inclusion is interesting because there are certain circumstances where
we might not like the look of the stem. We use greener versus browner
stems and haven’t noticed the more vegetative quality. Yet there might be
years where we want to grab some greener stems, maybe from a different
vineyard. Understanding what stem additions do versus the whole cluster is
really useful.
It’s a vintage-driven thing. Some years it seems like that kind of structural
tannin is more advantageous. Other years it seems like we already have that
coming from the fruit itself. It’s just a question of tasting the samples from
the vineyards and trying to predict what the eventual line-up will look like.
You can taste the grape before you pick it, but can you
really taste the stem?
David Paige : A lot of winemakers swear that that’s how they determine how
much whole cluster they’re going to use. I think we just found that whether
the stems are full and lignified or whether they’re fairly green, if they work,
they seem to work either way. In other words, it doesn’t seem to be necessary
to chew the stems and declare that they’re woody and peppery for them to
work. It’s more about what wine are you using it on, what grapes are you
using it with and what percentage are you using.
How much fruit was ultimately used in this trial?
Gina Hennen : It was 2 tons of fruit, split into two, 1-ton fermenters.
Considering the size of the lots, isn’t that a large
investment to risk on an experimental trial?
Gina Hennen : Absolutely. But if we do small parts from any of these trials,
then it’s a good opportunity for us to learn about our fruit sources and
about the vintage itself. You might not be able to apply all the information
that we learn year-to-year, but it’s a cumulative process building a database,
building information.
David Paige : And as Gina said earlier, we know we like some whole cluster
with this particular vineyard. So, it wasn’t terribly risky. In fact, at least one
time in the past we’ve done whole cluster versus stems, stem inclusion versus
a controlled head duct that had neither, so it was 100 percent destemmed. I
will say this year’s trial represents kicking out the least favored, which was
the one that was 100 percent destemmed from this vineyard.
Referring to the table that accompanies this trial, it is
interesting that the only statistic that has a significant
difference between the two lots is the tannin. All other
numbers are pretty close. Is that an accurate portrayal?
Gina Hennen : We tried to keep the experiment as one-dimensional as we
could, meaning that we want the only variable to be that thing we’re looking
at. We’ll try to press on the same day where that makes sense. We’ll try to
keep the fermentation time the same where that makes sense. We try to limit
it to the variable in question. Obviously, that doesn’t always work, but for this
particular trial it did. While we don’t typically run tannin profiles ourselves,
for us the key indicator would be the flavor, which is harder to measure, and
we did notice a difference in the flavor and the texture and the tannins of the
wine in terms of the organoleptic qualities. But, typically that would be the
driving factor for claiming what we think about the experiment.
Which of the lots did you prefer overall?
Gina Hennen : I preferred Lot 1 with just the whole clusters.
David Paige : I liked them both. I felt we’ve had other years where there
was a bigger difference between the two. I think that in a year where the
difference is more subtle, I do tend to prefer the whole cluster. I like that it
has complexity. I end up in Gina’s camp on that. It’s been years where the
difference is greater that I sometimes lean toward the stems added back.
Gina Hennen : I think it’s good to remember that the difference that we’re
talking about is fairly subtle. They’re more similar to each other than they
are different; and if you included that third version that we didn’t make,
which was neither stems nor whole cluster, I think confidently we can say
we preferred both versions of the experiment that we showed at IQ over
that theoretical control. We’ve definitely seen that in the past. They’re more
similar to each other, and we like the effect; it’s just there’s a sometimes
slight preference for one over the other. In fact, the IQ participants at our
presentation were evenly split, 50-50, on their preferences for each lot.
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What have you learned from the results and how will
you use this knowledge in future wine blending?
Gina Hennen: I think the information that we’ve learned from this trial
is that we can use stems added back or whole cluster, depending on the
circumstances and the particulars of the vintage. For instance, this is the
year [2016] where we prefer to do more careful sorting of the fruit. We
probably prefer to send it through the sorting table in the summer and add
stems later at the vat. But if the fruit looks really great, looks clean, it’s a lot
easier to put in while it’s whole cluster. It gives us flexibility to respond to the
characteristic of the vintage.
David Paige : We use stems for different reasons, and we use whole cluster
for different reasons in different lots. Sometimes, like the lot that we tasted
at IQ, it is because it works with that lot so well and it seems to go with the
natural characteristic of the fruit. But, at other times you might be trying
to use little, smaller amounts that almost play against a fruit richness
that’s there.
Gina Hennen : Learning from the 2016 trial, in 2017 we used only whole
cluster because the fruit came in looking really great, looking clean. In the
cases where we were doing stems versus whole cluster, we were just adding
whole cluster. 2017 was a great harvest. It was a little bit later than the last
few warmer years. It was more on track with the normal Oregon harvest,
meaning end of September into early October picking. We had a little bit
longer hangtime than we’ve had in the past few years. The weather was
moderate, not too hot. We got more rain early on in the season than we have
the last few years. Everything seems more balanced. WBM
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WBM February 2018 115
winemaking

Irregular
Breathing
Thoughts on minimizing
bottle-to-bottle variation
on the bottling line

Curtis Phillips

Curtis Phillips, an editor for Wine Business Monthly since

2000, is a graduate of UC Davis, and has been a winemaker
since 1984 and an agricultural consultant since 1979.

THERE HAS BEEN A lot of discussion among my peers

as to the importance of uniformity of closures in order to
minimize bottle-to-bottle variation. This is all fine and good
as far as it goes, but I remain concerned that, for the plug-
type closures at least, the discussion still revolves around
isobaric diffusion rather than pressure-driven bulk-flow, PHOTOS BY SCOTT SUMMERS

which is what really drives oxygen into a bottle of wine

between bottling and consumption. There’s also no discus-
sion, or even a tacit acknowledgement, of the importance
of the two orders of magnitude greater viscosity of wine,
as compared to the viscosity of air, in minimizing oxygen
ingress into a bottle of wine. This last point is the reason
that all bottles of wine, not just those closed with natural
corks, but even those closed with screw caps, synthetic
closures or engineered closures, should be stored on their
sides or upside down.
I could write an entire column about how pressure-driven
bulk flow of gas around or through a closure (Graham’s
Law) is several orders of magnitude more influential on
the oxygen ingress into a wine bottle than the diffusion
of oxygen under isobaric conditions (Boyle’s Law). In
this column, however, I’d like to walk the discussion back
another step and discuss fillers.
Fillers
The filler is the last place a wine is a single unit. It is the place at which a single wine lot
becomes many individual bottles of wine. Despite this, barely any attention seems to be paid
at what happens to the wine between the filler bowl and the corker or capper. Except for
sparkling wines, which need counter-pressure fillers to keep the dissolved CO2 gas in solution,
the wine industry almost exclusively uses gravity fillers. Gravity fillers have a reservoir above
the filler head, often called the “bowl” or the “filler-bowl.” When the bottles are pushed up,
they open a valve, and the wine drains from the bowl into the bottle.
There are bottle-fillers that pull a weak vacuum to fill the bottle more quickly, but they’re
used on viscous liquids, like honey, and I have never seen one in use in the U.S. wine industry.
Sparkling wines require counter-pressure fillers so that the dissolved CO2 doesn’t foam out
of solution during bottling. The wine still drains into bottles due to gravity, but instead of
passively venting the air in the bottle to the atmosphere, counter-pressure fillers pressurize
the bottle to about the same pressure as the dissolved CO2 in the sparkling wine then slowly
vent the pressurized atmosphere out of the bottle as it fills with wine. Usually this is about 4
atmospheres, but it can vary. Another use for counter-pressure fillers, albeit one I have not seen

116 February 2018 WBM

in the U.S., is to lightly increase the dissolved CO2 in a still wine and thereby
increase the apparent acidity of the wine since dissolved CO2 is carboxylic
acid and perceived as acid on the tongue.
You can’t control what you don’t measure.
These days the phrase, “You can’t control what you don’t measure,” is
something of an old business school chestnut. It has been bandied about
and become a cliché to the extent that I’ve been seeing a few iconoclastic
essays that argue against the basic premise and argue that over-measurement
actually inhibits productivity. Certainly, when a zeal for quantification is
applied to people, I’ve seen more negative results than positive, so there may
be some truth in this pushback. Business theories are cyclical, I suppose.

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WBM February 2018 117

Irregular Breathing

Management fads among MBA types and the C-suite notwithstanding, I

would note that a discussion about what may or may not be a good thing to
measure might be useful when attempting to measure inherently fuzzy and
difficult to measure things, like employee morale or customer satisfaction.
For less fuzzy or difficult to measure things, however, such a truism is always
appropriate when discussing quantifiable things, like the oxygen in a bottle
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comparable degrees of oxygen exposure. It is probably safe to assume that
the wine is getting into the filler bowl, although this won’t be the case if
the winery is bottling from multiple tanks or across multiple days. Even
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118 February 2018 WBM

spout on the filler has to fill each bottle in the same way and with exactly the
same oxygen exposure for each bottle in order to maintain that consistency.
As a rule, in the wine industry, we don’t connect any dissolved oxygen (DO)
measurements back to the individual spouts on the filler. If dissolved oxygen
is measured at all—and DO measurements are still the exception rather than
the rule—it is more likely that we take a random number of bottles off the
line at some point after the corker and measure the DO.
Random DO sampling is likely to determine if undesired levels of oxygen
are being introduced somewhere between the bottling tank and the filler
bowl, but only has a s:n chance of detecting if any particular filler spout is
the culprit (where s is the number of samples and n is the number of spouts
on the filler). For example, if 2 samples are taken from bottling line with a
36 spout filler, there is a 2 in 36, or 1:18, or 7.69 percent, chance of getting a
sample from a bottle filled by an individual spout. If it is a filler spout that is
the problem, then the bottling line QC (Quality Control) has only an eight & it all begins
percent chance of detecting a problem. Even if it does, without being able for your wines
to trace each sample back to the filler spout that filled it, there is no way to
determine which spout is the problem. BioSystems Enzymatic Reagents and Analyzers

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For example, if two bottles are pulled from a line with a 36-spout filler,
there is only a 1 in 18 chance of detecting if an out-of-adjustment filler spout
is causing bottles filled from that spout to have a significantly different DO
level from the other spouts. Even if the random sample catches an odd DO,
there is no way to figure out which spout is giving the unusual DO levels
without going back and doing a more thorough sample where it is known
which spout filled each bottle.
Along with my own empirical experience, there has been enough research
produced over the last couple decades to convince me that oxygen exposure
is not only important for wine development, but also that oxygen is a major
source of bottle-to-bottle variation. Certainly, there are other factors that lead
to bottle-to-bottle variation, daily changes in both pressure and temperature
immediately come to mind as also significant, but it should be noted that
these factors are themselves part of the larger oxygen ingress and reaction
rate puzzle.
If the differing amount of oxygen in the bottle is indeed responsible for
bottle-to-bottle variation, then it stands to reason that we should be ensuring
that the wine leaves the winery with as uniform a level of oxygen exposure
as possible. WBM

WBM February 2018 119

winemaking

Flash Détente
Reaching
Critical Mass
Used primarily to correct distressed
grapes, the technique is gaining a
foothold as another popular tool in the
winemaker’s arsenal.

Alan Goldfarb

Alan Goldfarb has been a wine journalist for more than 25 years. He was
the wine editor at the St. Helena Star, and his work has appeared in Wine
Spectator, Wine Enthusiast and Decanter Magazine, among others.

THERE’S A TEXAS WINERY that recently underwent a fourth crush

using flash détente to mitigate the effects of its hot climate-grown grapes.
Then there’s the Michigan winery that used flash détente for the first time
in the 2017 harvest to revitalize its fruit from the ravages of an extreme cold
climate. Other wineries—especially those in regions that are susceptible to
fires—are using the technique to extract smoke taint from wines.
Then there are those who are utilizing the procedure for its perceived
purpose: making sound wine by boosting color, aromas and flavors.
For whatever reason, winemakers are choosing to put their grapes through
machinery that has been said to produce “better” wines, it seems that flash
détente is reaching critical mass in the United States and is becoming a fash-
SCOTT SUMMERS
ionable device. First used in Europe 15 years ago, there are now perhaps more
than 300 flash détente units in use worldwide. Flash was first used in the states
in 2009, and now there are more than a dozen such systems in place with an
untold number of wineries—perhaps as many as 50 to 75—“flashing” at least What is Flash Détente?
a portion of their tonnage. Flash détente is essentially an evolution of the traditional thermo-vinifica-
Variously called “instant relaxation,” “flash release,” “flash extraction” or tion or thermo-treatment methods. The process involves a combination of
“thermo-flash release,” the phrase flash détente (FD) is becoming the term of heating grapes to about 180° F and sending them into a vacuum chamber to
choice. Though chiefly used with red grapes, whites are lately also starting to be cooled. During this cooling procedure, skin cells are weakened, enabling
receive the treatment. compounds to be extracted. This process allegedly enables better extraction
of anthocyanins and flavor compounds.
This method also creates a steam that is diverted to a condenser. That steam
is redolent of aromatic compounds, including pyrazines. Because vapor is
removed, sugar levels increase in the remaining must. Most winemakers
discard the condensation, or “flash water,” as the aromatics are usually
disagreeable. Flashed grapes can then be pressed and fermented similarly to
white wine; the must can be fermented with the skins in the more tradi-
tional red wine production manner; or the flashed grapes can be added to
non-flashed must that underwent classic maceration and then co-fermented.

120 February 2018 WBM

 BENDING BRANCH WINERY

Flash team: (From left): Assistant Winemaker Chad Kurtz; Founder/Winemaker Bob Young, MD; Winery
Technician Jed Dorsey; Vineyard Manager Jose Jimenez, Vineyard Worker Melvin Mendez; Winemaker
Greg Stokes on the Bending Branch Winery crush pad in front of the flash détente machine.

Extreme Climate Applications to save several post-rain picks. Flash can salvage fruit with up to moderate
rot,” Young said.
Bending Branch Winery, near Comfort, Texas in the Hill Country north
In the cool climate of the Leelanau Peninsula in Michigan’s Suttons Bay sits
of San Antonio, produces Tempranillo, Cabernet Sauvignon, Malbec and 11
Blackstar Farms, which produces mainly hybrid varietals. In 2017, Blackstar
other varietals. The winery purchased a flash détente machine from Della
Farms put some of its crush through flash détente for the first time. For
Toffola in 2014 (Pera-Pellenc is another major producer of flash units). The
“around” $350,000, the Blackstar team purchased a fully assembled, comput-
machine can process 5 tons and can be continuously fed more must. It is
er-controlled unit, also from Della Toffola. Another $100,000 was invested
fully automated and is run with an iPad.
in the set-up, including a cooling tower that needed new power and water
Bending Branch’s founder and winemaker Bob Young is a believer in the
hook-ups, as well as large columns of propane for heat.
technique. “In Texas we have a very hot climate, which challenges many red
varietals to reach their genetic potential in color, tannins and flavor devel- Total Phenolics – Newsom Vineyards
opment in many cases. The good news is flash can release bound-up antho-
cyanins, skin tannins and flavor molecules,” he said. “In 2016, we compared
wine outcomes of traditional fermentations in three varietals, Tempranillo,
Cabernet Sauvignon and Malbec, with the flash outcomes. In total phenolics,
the flash fruit had 100 percent more than the controls.”
Bending Branch claims to have decreased fermentation time with the flash
protocols, as well as the reduced need for nutrient additives and the salvaging
of rotted fruit. Finally, as Young reported, flash eliminates yeast, acetobacter,
brettanomyces and laccase in must.
“Total tannins were increased over four-fold. Also, the flashed wines had
enhanced fruit flavors,” Young observed. “If the Holy Grail for red wine is to
extract as much color, skin tannins and flavor as possible from red grapes,
flash détente is a major disruptive technology to reach this goal.
“In Texas, we face highly variable weather conditions year-to-year. Take
2016: we had heavy rain in the High Plains about two weeks prior to a mature
fruit harvest. Flash détente enabled us to pick under-ripened red grapes at This presentation slide shows the total phenolics for flashed Tempranillo,
21.5° to 22.5° Brix before the rains hit and still get excellent outcomes. Brix Malbec and Cabernet Sauvignon versus their controls grapes from
increased about 2 percent with the flash détente on average. We were also able Newsom Vineyards.

WBM February 2018 121

 Flash Détente Reaching Critical Mass

ARTHUR ENGINEERING, INC. 
ELECTRICAL & CONTROL SYSTEM ENGINEERS  “We are challenged with under-ripe, sub-par fruit, especially with hybrids,”
 

9370 STUDIO COURT, SUITE 140 
9370 STUDIO COURT, SUITE 140 said winemaker Lee Lutes. “With varieties that tend to be vegetal, we’re
ELK GROVE, CA 95758 
ELK GROVE, CA 95758 hoping that using flash détente will help eradicate that, and add color and
PH: (916) 394‐0864 
(916) 394-0864 increase pigment.
www.ArthurEngineering.com 
www.ArthurEngineering.com
“Flash détente is a tool that hopefully will be used more in lesser vintages.
Arthur Engineering, Inc. (AEI) has over 50 years of experience providing 
Arthur Engineering, Inc. (AEI) has over 50 years of experience providing This is an extreme cool climate; but when we started to see changes in
quality
quality electrical, lighti
electrical,  ng, and
ligh�ng,  control
and  systems
control  designs
systems  for the
designs  for Wine
the  Industry.
Wine  weather systems, we thought we’d be benefactors of warming, but what
We have grown to fully understand the unique needs of the Wine Industry we’ve seen is more erratic. This is one more tool to help mitigate that vari-
Industry.  We have grown to fully understand the unique needs of the 
and we apply this knowledge to all of our project designs. AEI has experience ability,” Lutes noted.
Wine  Industry ofand 
with wineries we  apply 
all sizes, from this 
boutiknowledge 
que to large to  industrial.
all  of  our We
project 
have a
designs. 
reputati on  for
AEI personalized
has  experience 
attentiwith 
on towineries  of  all needs
the individual sizes offrom 
everysmall 
project,
which has resulted
bou�que  wineries into  long-term relationships
large  industrial  throughout
facili�es.    We  have  thea industry. If you
reputa�on 
are
for contemplati
personalized  ng a�en�on 
a new facility, or perhaps
to  the  a renovati
individual  needs  of  on,every 
please give us a
project,  Winemakers Find Numerous Benefits—
call, or send an email to ChuckA@ArthurEngineering.com.
which has resulted in long‐term rela�onships throughout the industry.   and Disadvantages—with Flash
If you are contempla�ng a new facility, or perhaps a renova�on, please  It’s for those extreme-climate reasons and the results of experiments with
give us a call, or send an email to ChuckA@ArthurEngineering.com.   the removal of smoke taint that Rick Jones has become a believer in flash
détente. Wildfires have become more prevalent, especially in California, and
the size and scope of forest fires are increasing. It is believed that smoke taint
is an aroma that can be removed. This is achieved by heating the grapes to
80° C to 90° C, then rapidly cooling them to 35° C, using a water condenser
with a 90 percent vacuum. The volatile compounds are pushed from the
grapes at high heat and pulled into the cooled water. The grapes are left with
no undesirable aromas.
Though still in its infancy in the United States, Jones has thrown his lot
in with Della Toffola of Treviso, Italy and become its consulting winemaker.
“Flash happens to be fashionable right now but so is everything else,” said
Jones. “People are becoming more comfortable with flash. There are certainly
people who are horrified by it. The natural wine people are constitutionally
opposed to any sort of technological innovation; they have a philosophical
problem with it.”
He and winemaker Barry Gnekow were some of the early progenitors of
flash détente. “We’ve probably flashed some quarter-million tons of fruit,
maybe a half-million,” Jones said. “It’s becoming an accepted technology.”
Winemaker Rudy Zuidema also saw the benefits of flash early on and started
a company, Flash Wine Technologies (FWT) in Kenwood, California, with
a focus on flash détente. He currently has 26 clients who are experimenting
with flash. “I started a flash détente company because I needed the service for
one of my clients and found that none of the existing services could handle
small lots,” he said. 
Winemakers listed a number of reasons for using the technology: “People
with 100-plus tons of fruit coming from one vineyard like to diversify the
wine,” said Zuidema. “It adds more spices in the rack. Fruit that is compro-
mised with virus or other diseases can be upgraded. Vineyard blocks with
heavily shaded areas that do not ripen like the better exposed sections can
be sent through flash to ‘catch up’ to the better sections. Also, rot, mold and
laccase can all be denatured and ‘cleaned up’ with flash détente. Some early
picks can have the ‘greenness’ removed, and low-alcohol lots can be made for
alcohol percentage reductions with blending,” he said.
Pacific Winemaking, in Sherwood, Oregon, is a distributor in the Pacific
Northwest and British Columbia of flash détente systems manufactured by
Pera-Pellenc of Florensac, France. Pera-Pellenc has approximately 150 units
in place worldwide. Bruce Felix, owner of Pacific Winemaking, delineated the
efficacy of flash détente: “It improves the quality of wines in adverse seasons
or early picks; it creates round, smooth and fruity wines, improves stability of
aromas and color, and reduces harmful enzyme denaturation. Flash détente

122 February 2018 WBM

 Flash Détente Reaching Critical Mass

also reduces cost per ton by automation of process and decreases labor costs,
improves speed of processing and reduces (the number of) tanks needed.”
Zuidema said that flash is a “great addition” to any winemaking regimen
and reported that the use of 5 to 10 percent flashed fruit can do wonders
for a blend. He did caution, however, that some stripping of terroir-driven
characteristics can occur.
“Some loss of ‘place’ happens. For example, Alexander Valley Cab, in the
machine, becomes great Sonoma Cab on the way out,” he said. “In most
cases it is not a worry in that the clients have portions of the same wine,
non-flashed, because that will hold the terroir true. In many cases, the flashed
must, or juice, will be blended while fermenting with the other portion that
will integrate that note. Lastly, the wines that are flashed are usually a very
small portion of the final blend. Very few are more than 20 percent.”
Lutes was asked if he attempting to make a different style of wine, with
its own palate profile, by using flash détente. “We’re not looking to tweak
our style,” he began. “But in better vintages we might flash 10 percent of
Pinot Noir to add depth or complexity [by] ‘double flashing’ [putting grapes
through the machine, pressing them off the skin, and then putting the juice
back in the flash]. But hybrids can be pungent. If we can denature some of
those and make them more neutral, flash could be beneficial … We just may
do that. We’re looking forward toward what this may provide,” he said.
Then there is the possible downside of using flash détente, in particular
the idea of terroir-erasure, which was addressed by Lutes, who thought the
learning curve of using flash for the first time may be an issue. He hopes that
flash technology won’t be seen as a gimmick.
“Flash is a tool that hopefully will be used more in lesser vintages. This being
an extreme cool climate … there is a high concentration of acid here, and flash
détente won’t affect that. We may actually have to deacidify,” said Lutes.
Texas too has its hybrids. Bending Branch’s Young was eager to talk about
european craftsmanship stainless steel Black Spanish and his plans for it and FD. He said the variety tends to have

winery tanks some degree of a “foxy flavor that is objectionable. We are currently doing
an experiment with Texas AgriLife to compare Black Spanish controls

now
with experiment flash wines to see if the flavor profiles will be improved
in stock, ready to ship by flash détente.”

White Wines Receive the Treatment

Heretofore, flash détente has been utilized mainly on red grapes. Is there a
future to use flash with whites?
“Yes,” said Rudy Zuidema. “I have a big Sauvignon Blanc producer that
brings tons of fruit just after veraison. The fruit arrives at 19° Brix, with a TA
of 9.8 g/L, a pH of 2.9. The end wine is 11 percent alcohol and very acidic;
but it can be used to acidulate and lower the alcohol of other lots that hung
out longer and have the riper, richer flavors that come with lower acid and
higher alcohol percentages.”
Young, while open to the idea as a way to reduce vegetal or foxy flavors and
even enhance fruit, is awaiting data that provide more information on its use
with white grapes.
Lutes said he’s heard of winemakers trying flash on white varieties. “If it’s
Harvest is on the horizon. You need tanks and you need them now, but compromising
done with whole juice, it makes the juice very phenolic—what we don’t want
on quality to get them fast is not how great wines are made.
to do, especially in this area.”
We’re ready. Our Letina stainless tanks – jacketed, single wall, variable, you name it –
are built in Europe and in stock in our Pacific Northwest warehouse, ready to ship.

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124 February 2018 WBM

 HANDS-ON CONTROL
The Costs of Flash
Zuidema’s company charges $650 per ton to flash less than 20 tons, $550 per FROM ANYWHERE
ton for 20 to 100 tons, and $450 per ton for more than 100 tons. Contrast
that with Michigan’s Blackstar Farms, which charged its eight clients $150
per ton.
Lutes received verbal commitments from about a quarter of Michigan’s
30 wineries and one from Indiana to each have around 300 to 400 tons
flashed in Blackstar’s new unit. Custom-crushing was one way Lutes was
able to offset some of the costs—a $210,000 grant from the Department of
Agriculture was the other. The winery applied for, and won, a “value-added
food processor” stipend. THE INDUSTRY’S #1 CHOICE FOR
For Blackstar, its investment will take about seven years to pay off. Just as FERMENTATION MANAGEMENT
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important to Lutes is that the investment “is going to be beneficial to the
entire industry [in Michigan].” But, he added, “It’s difficult to justify as a sole
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At Texas’ Bending Branch, Bob Young did cite the capital outlay—which • Secure Access via Mobile Devices
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At this point flash détente seems to have been used chiefly to rectify less-
than-stellar fruit stemming from a myriad of problems although, as it gains
a foothold as yet another winemaking tool, it is being utilized with sound Unified Wine & Grape Symposium - BOOTH 1706
fruit in hopes of making better wine. Thus far, however, the conventional
wisdom in flash’s evolution is still being used primarily as a kind of panacea.
This led Linda Bisson, who recently retired from her post as professor
emeritus and associate director at UC Davis’ Department of Viticulture and
Enology, to respond: “The industry has not been much interested in funding WE PUT OUR BEST
this nor talking about its use since it has a reputation for being used with
problematic grapes.”
For now, it seems that individual winemakers and supporters will be the
INTO EVERY CONTAINER.
proponents of the technology in certain instances. “Flash can be complemen-
tary. If we were in a region that wasn’t experiencing more of these climatic SO YOU CAN GET
variations and we could depend on more stable ripening, it’s probably some-
thing we probably wouldn’t even have thought about,” said Lutes. YOUR BEST OUT OF IT.
Jones agreed. “It’s like any other tool … It’s not a panacea but another
arrow in a winemaker’s quiver. We’re figuring it out, and we’re still trying to
determine what’s the highest use for it,” he said. “Sometimes you get a lot of
bang for your buck from flash, i.e., 30 percent better on average color. But the
technique has not been used widely enough. It should be used under certain
conditions, and not used widely.” WBM

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WBM February 2018 125

winemaking
Are There Synergies Between
Producing and Selling Wine and Spirits?
A small but growing number of wine companies are adding spirits to their portfolios. While
the key drivers of this nascent trend are beverage diversification and income growth, there
are a significant number of financial and regulatory hurdles wineries must consider before
the palpable synergy of winemaking and spirits production will work.
Michael Lasky
POP QUIZ: WHILE “THE whole is greater than the sum of its parts”
sums up the basic meaning of synergy, can the addition of vodka, gin, brandy
or brown spirits production to an existing wine portfolio be synergistic?
Before answering the question, consider these observations noted at The
Wine Industry Symposium Group’s 2 (a subsidiary of Wine Business
Monthly) 26th Annual Wine Industry Financial Symposium (wineindustry-
financial.com) in Napa last September:
• “Wine drinkers often recommend wines to other drinkers, but spirits
drinkers rarely recommend spirits to others,” said Robert Trone,
co-owner of retail giant Total Wine & More. “For us, wine products
appeal to a consumer that is interested in trying new ones every week
while most spirits customers are more focused on drinking the same
spirit week to week, month to month.”
• “Spirits brands are built one drink at a time, at the bar,” said Jeff
O’Neill, president, O’Neill Vintners and Distillers. “If it doesn’t get
traction at a bar, it doesn’t get traction at the retail end.”
• “All spirits start at the high-end on-premise, while wine brands can
start at retail or a bar,” said O’Neill.
• “There are 13 states we can ship wine to, but there are no states we can
ship spirits to—even if you ship it internally, you can’t ship it. Further,
there is no direct-to-consumer shipping of spirits; you need a spirits
distributor,” said Trone.
Obviously, there are systematic barriers on the way to a wine-spirits synergy.
“Although the route to the spirits market has some similarities with the wine
business, it is still quite different. We point out that normally most wineries
are aligned with wine distributors or a distributor’s wine division. The
addition of spirits means switching over to a different division and building
out a new sales arm is expensive,” said Scott Schiller, managing director of
the Chicago-based spirits consultant, Thoroughbred Spirits Group.
Schiller then asks winery clients if the move to spirits production is meant
to strengthen the existing wine brand or if it’s meant to be an entirely different
division. Either way, the winery must see they are, in theory, building some-
thing from scratch, he said.
126 February 2018 WBM
Michael S. Lasky is the former editor of AppellationAmerica.com and is the
author of hundreds of articles for national magazines and newspapers.
Winemakers Who Ventured into Spirits
Share What They’ve Learned
For wine veteran Derek Benham, owner and CEO of Graton, Califor-
nia-based Purple Wine + Spirits, years of producing private-label wines
have evolved recently into craft distillation. But his venture to produce his
first craft spirit, D. George Benham’s Sonoma Dry Gin, was certainly
approached with eyes-wide-open to potential risks and possible returns.
“There’s a potential synergy with wines and spirits, but you have to keep
them separate,” Benham said. “They overlap in the distribution network, but
the spirits world is different. You might sell one or two bottles of spirits at a
time but, unlike wine, not sell cases.”
And unlike wine, some spirits can be produced and bottled in three weeks,
sell at $30 or more, each with a 60 percent margin, and never go bad, Benham
added. But no matter what, you have to keep your wine and spirits production
and sales totally separate for numerous regulatory and safety ordinances.
Craft beer and spirits certainly have been booming, and wine companies,
ever aware of the competition for alcoholic beverage sales these entities pose,
justifiably wonder if they should “lick ’em or join ’em.”
“One of the bigger trends out there is fragmentation of the spirits industry,”
said Aaron Webb, president of Purple Wine + Spirits. “There are lots of
layers to that craft sector. One of the similarities is that wine is probably the
original craft alcohol product in the industry. Wine has been craft all along.
“It’s extremely fragmented; thousands and thousands of SKUs and wines
out there, whereas spirits was not as fragmented until the last decade. Obvi-
ously, it’s a really big trend and much more apparent, I think, with brown
spirits than with others,” Webb said.
When it comes to marketing wines and spirits, the synergy, Webb feels, is
not that tight. “I think that marketing wines is easier than spirits, but the sales
for wines are very much harder because, in spirits on the marketing front,
there’s a lot more space to play in, a lot more differentiation. Just look at all
the varied shapes and sizes of spirit bottles—and there are loads of entirely
different products that taste nothing like one another. I just think there’s a
broader arena to play in on the marketing front for spirits,” Webb said.
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Are There Synergies Between Producing and Selling Wine and Spirits?

The spirits sector for Purple Wine + Spirits is still in its infancy. “We’re and the forecasting and the risk associated with predicting the market three
very much in investment mode today. We are trying to take advantage of the or four years down the road. Flavor-wise, it’s fascinating. If you’re already
synergies of the two: from the production side, bottling is very synergistic. working with oak barrels, we found it very interesting working with whiskey
From a permitting perspective and space perspective, it’s not because a and thinking about the oak flavors and how they work and how the woods
distillery permit can’t really overlap very well with a winery permit. But route for barrels evolved in different forests,” he said.
to market-wise, you go through the same sorts of distribution channels,”
Webb explained.
According to long-time Napa winemaker Steve Matthiasson, moving Instant Wine/Spirits Synergy: Produce
from winemaking to barrel-aging spirits is an inherent step in the wine Clear Spirits or Buy Third-party Brandy
and spirits synergy. “As a winemaker, it’s a pretty easy transition to makeIf a winery wants to start selling brandy right away without having to endure
a barrel-aged spirit from the standpoint of the patience and the planning the time-consuming aging process, it could right now purchase bulk brandy
from third-party vendors. One of
the largest bulk business-to-business
distilled spirits producers is O’Neill
Vintners and Distillers. In addition

Reliable CO and O testing

2 2
to its own wine brand, Line Thirty
Nine, the company primarily
from tank to bottle produces brandy and wine for third-
party resale.
“If you want to produce a clear
spirit, whether it’s a vodka or rum
or whatever that requires no aging,
then you can be in business instantly.
The shortcut to a brandy business or
a whiskey business, historically has
been, go find a stock somewhere else,
buy the inventory that matches the
profile you’re looking for and then
you are in business, and then back
sell it with your own distilled spirits
as you move along,” said O’Neill.
But, he cautioned, the wine/spirits
synergy, at least at this point in time,
is for larger industry players. “If
you’re a very large wine company,
and that is really limited to a handful,
you have the resources to either buy
or develop brands in that space. For
the mass market, for the general,
off-market retailers, there is a big
opportunity because they have teams
of those stores already, and they have
those relationships.
“For small boutique wineries
looking for ways to differentiate
themselves, adding spirits to their
portfolio is more challenging but not
Combined CO2 - CO2 results without the influence of other impossible. With the consolidation
and O2 Meter: gases of wholesale, consolidation at retail,
CboxQC™ - Fast, reliable and traceable gas testing from it’s very difficult for those guys to get
cellar to finished packages a share of mind of a retailer. I think
- Minimal sample volume required it’s more difficult for the execution of
- Easy calculation of Total Package Oxygen a spirit brand on a mid-sized winery
than it is for a very small one who can
go direct-to-consumer and hand-sell
it while they’re hand-selling their
Get in touch: www.anton-paar.com
other premium wines,” said O’Neill.

128 February 2018 WBM

 For a company that produces hundreds of thousands of cases of brandy, “The products follow where the raw
O’Neill noted, “Brandy doesn’t really exist yet as a category that’s significant
enough.” But, he added, “So what we’re seeing is big demand for, we’ll call it materials grow best. So for the Midwest,
craft or handmade, alambic California brandy. That category is a tiny business.
But we do think that brown spirits—because of the full flavors they offer and
it’s bourbon; if it’s California, it’s grapes
the interest of high-end bars and mixologists—if we position them correctly and brandy. So I think small wineries
with extraordinary quality from California, we’ll establish a new category.
“The products follow where the raw materials grow best. So for the will have a big opportunity.”
Midwest, it’s bourbon; if it’s California, it’s grapes and brandy. So I think Jeff O’Neill, O’Neill Vintners and Distillers
small wineries will have a big opportunity. And then the other trend we’re
seeing is how regional everything has become,” asserted O’Neill. Local
products sell, period.

Retailer
Departments,
Government
Regulations and
Other Obstacles
As a retailer, Trone sees no synergy.
“From a retailer perspective, there is
not much synergy of a winery selling
a spirit and a wine. Most retailers
have different buyers for the spirits
department and others for wine, and
therefore there is no synergy having
different points of contact,” he said.
Trone does offer a glimmer of
optimism when he concedes that
for some spirit categories, such as
single malt scotches and upper-end
bourbon, there are consumers who
want to explore and try new things.
But, he balances that by noting it is
still a small part of the overall spirits
business.
As for brandy, Trone is skeptical. “I
think the upper-end brandy market is
very small in the United States today.
We Get It.
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As a veteran winemaker and
distiller, Marko Karakasevic can
certainly tell you about the barriers
to wine and spirits marriages brought
on by government regulations, taxes
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WBM February 2018 129

 Are There Synergies Between Producing and
Selling Wine and Spirits?

ER
ON M
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NV P
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“Sure, there’s good money to be made
T
EN P E
RA R A
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VI

in the distilled spirits world, but it’s

|S &
H E
5T I N
RD W
23 D
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difficult―not to say that wine is not

I E
AR IF
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Y

difficult as well.”
JA

Marko Karakasevic, Charbay Distillery

As an example, he pointed out, “The bureaucracy increases as you attach

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license; then depending on what you are distilling, there are a slew of other
licenses,” Karakasevic explained. “There are two licenses: a Brandy Distillery
and a full on Distilled Spirits Plant or D.S.P. The Brandy License is attached
to a winery for making grape-based spirits to fortify wines at the winery.
“Once you get your bonded winery, you can attach a brandy distillery onto
that winery so that you can receive wine, distill it and fortify product. You
can’t barrel-age brandy and then bottle it and call it brandy distilled right
there because that’s not a full-blown D.S.P. The brandy license is strictly for
producing fortified wine. But for wineries that want to start distilling brandy
out of grapes and barrel-aging and bottling and selling out of the winery,
they must have a full-blown D.S.P. License,” Karakasevic said.
“You want a wine and spirits synergy. Tell that to the Feds,” he declared.
“Sure, there’s good money to be made in the distilled spirits world, but it’s
difficult—not to say that wine is not difficult as well. I mean, if you do the
math on a 10,000-case production when you’re paying a levy of $25.68 on a
9-liter case—that’s a chunk that is instantly, before it even goes to the distrib-
utor, out of pocket to the Fed,” Karakasevic warned.
There is also the three-tier system to consider. After paying those taxes and
after the distributor adds on its cut, and the retailer does the same, the price to
the consumer has at least tripled. “And each license offers specific limitations.
You can’t cherry-pick the benefits of different licenses. If you’re a D.S.P., you
have to run D.S.P., which means you have to send your product to a distrib-
utor, and the distributor has to ship it to the store. And that’s after you, the
distiller, have paid the taxes for the particular spirit,” said Karakasevic.

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Leave it to the French to marry wine with spirits as winemakers Sabine
Jaren and François Lurton did, creating a gin from Sauvignon Blanc grapes
blended with traditional gin recipe botanicals. Lurton is a fifth-generation
winemaker in Bordeaux. He also has holdings in South America and Spain.
With fewer government regulations to halt adding spirits to his portfolio,
he has achieved the synergy of wine and spirits production with what he
dubs “a winemaker’s gin.” In marked contrast to most other gins based on
grain or potatoes, Lurton distilled his gin from Sauvignon Blanc. His partner
Sabine Jaren has helped blend botanicals of grapefruit zest, lemon, violets,
gorse, lime zest and red currant buds. The gin is called Sorgin, which is a
Basque name for a sorceress. WBM

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130 February 2018 WBM

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grape growing
On a European Quest for Mechanization
SITEVI tradeshow presented a dizzying array of mechanical implements
Mark Greenspan
I’VE DISCUSSED IT NUMEROUS times before: We Californians need
to get more mechanized in our vineyard operations at all price points of
our industry. Labor is in crisis mode, and it isn’t likely to get better any
time soon. Or probably ever. Every two years, there is a huge tradeshow in
Montpellier, France called SITEVI. SITEVI alternates years with Vinitech, the
other large tradeshow in France held in Bordeaux. Both shows are excellent,
offering a mind-numbing array of vineyard and winery machines. However,
I’ve been to both shows and prefer the physical layout of the SITEVI show
over Vinitech.
This year, SITEVI was held November 28-30, 2017. The reason I went
this year was that I was invited by ITK, a company based in the Montpellier
region that makes expert systems for agriculture and has an exciting product
called Vintel that I may be working with
in the near future. I am grateful for their
invitation and chance to visit their region
for the second time—they invited me four
years ago when their product was a bit less
mature than it is now. Their product is
coming along nicely now and may play a
role in many growers’ water management
decision-making processes going forward.
As I mentioned, I last attended SITEVI
four years ago and was dumbfounded by
so many manufacturers who made similar
implements. I found it so overwhelming
that I was unable to draw any conclu-
sions from the experience, primarily as
it pertained to farm implements. So this
time I asked my business partner, who is
in charge of the vineyard management side of my company, to come along
so we could focus our attention on the various types and manufacturers of
implements with which we had interest. Only a small fraction of the European
manufacturers export their wares to the U.S., so we wondered what we had
been missing by attending U.S. tradeshows.
132 February 2018 WBM
Dr. Mark Greenspan has more
than a quarter century of scientific
viticulture research and viticultural field
experience. He specializes in irrigation
and nutrition management, yield and
canopy management, vineyard climate
and microclimate, vineyard design and
vineyard technology. He is the founder
of Advanced Viticulture, Inc. based in
Windsor, California (www.advancedvit.
com), providing consulting, technology,
vineyard management and vineyard
development for wineries, winemakers
and wine growers devoted to producing
premium wines. Please direct queries to
mark@advancedvit.com or 707-838-3805.
Mechanical Under-vine Weed Control
We had in mind some specific tools to look for. First on our minds was
in-row (i.e., under-vine) cultivation. We’ve been trying to move away from
herbicide use as much as possible. Pre-emergence herbicides are a conve-
nient crutch for winegrape growers, providing lasting control over weeds
during the wet winters and springs we experience in the North Coast. They
reduce, but do not eliminate, the need for additional weed control during the
growing season, but boy do they save us a lot of time and money. However,
pre-emergence herbicides tend to be some of the more toxic pesticides we
use, and their long-lasting effect makes one wonder how much they are
affecting the health of the vineyard soil, at least that patch underneath
the vines. On the other side, post-emergence herbicides are getting some
seriously bad press. Glyphosate is bearing the brunt of public scorn, rightly
or wrongly. In France, we talked to many people about glyphosate, and it
won’t be long until glyphosate is banned in the European Union, though
each country is setting its own time limitations. France seems to be headed
towards a five-year period until it is banned. In candid conversations, it
seems there is more public angst against the company that developed and
manufactures it than the product itself. I have more recently been concerned
about its use in that some beneficial soil bacteria can be killed by the active
ingredient, so the belief that it was a low-toxicity form of weed control is
somewhat justifiably under scrutiny.
So, the net of it is that we need to look at mechanical means of weed control
to replace some or all of our heavy use of chemical methods. One may still
reasonably argue that using diesel fuel to power our tractors and cultivators
has a bigger impact on our environment than the chemical applications, but
that is not the point—public pressure and maybe some reality of soil health
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 On a European Quest for Mechanization

TRY THE NEW ELECTRONIC are pushing us toward mechanical weed control. But, we wanted to see what
alternatives existed for weed control and wanted to see if we were missing
PRUNING SHEAR something by only going to the stateside tradeshows.
What we found was both enlightening and reassuring in that we found
some technologies that were quite familiar, along with others that were not
seen much, if at all, in the U.S. We had already seen the weed knife type of
cultivator, made popular in California by Clemens Vineyard Equipment.
I don’t know who the originator of the design was (I always thought it was
Clemens), but at SITEVI we saw numerous variations on the theme of the
weed knife. Although the variations were not highly variable—most of them
looked quite similar, though perhaps there were some tweaks of angles and
materials here or there that were difficult to ascertain visually and to the
untrained eye.
We were looking for a rotary tiller to accompany the highly useful knife.
The rotary tiller we own, which has three counter-rotating heads and is from
5
24 an Italian manufacturer, has been difficult to work with, primarily because it
#
OTH is extremely slow and works only one side of a row at a time. We need a better
B O alternative to it.
D
IE How fun it is watching the videos at the booths of the cultivators tearing
IF NEW IN
UN
up the weeds at speeds nearing 3 miles per hour. I could watch those for

S AT THE hours! I suspect most or all of the manufacturers choose vineyards with the
U easiest soils for the demonstration videos because they all look so fast and
ULTRACOMPACT S IT
LITHIUM ION BATTERY VI efficient. It’s really important to us that the unit operate on both sides of the
row and without much danger of snagging vines, as our clients have little
forgiveness for “tractor blight.”
NEW BATTERY: We saw many units that would fill the bill, so we think. Again, many of these
- LIGHTER & SMALLER looked nearly identical, and one has to wonder if there are a limited number
- WEAR ANY OF 4 DIFFERENT WAYS
of factories for these but with each of the manufacturers selecting a different
- CHARGES IN 1.5 HRS
paint job! I’m joking, of course, and I suppose there are only so many ways
SHEAR FEATURES: one can create a rotary tiller. The key is which ones are available in the U.S.
- INTERCHANGEABLE HEADS
- PATENTED SAFETY SYSTEM and then which are reliable and have easily available replacement parts.
- USE WITH POLES Again, we came back to Clemens, which has a rotary tiller that may be
used simultaneously with their weed knives. Their equipment is readily
available and supported in California. The other one we’ve been looking at is
ID-David, a company from Spain, that has “local” support from a distributor
out of Washington state. An old favorite, the Pellenc Sunflower, ceased being
available after its manufacturer discontinued them. I heard recently, however,
that they may be bringing them back into production, which is a good thing.

Berm Management: The Softer Touch

What we did see a lot of at SITEVI, that we don’t see much of here in Cali-
fornia, are less aggressive forms of cultivators. In fact, they are not really
cultivators at all. They are berm sweepers, which are heavy rotating brushes
8 09 (that rotate on a vertical axis) that sweep stuff off and out of the vine rows.
8 Most commonly, they are made of heavy nylon bristle brushes, which are
425
0 easily replaceable. Some of the brushes are fairly flexible, but others are
 80 rather thick and stiff, and my feeling is that they could be used to remove
!1 See us at
US weeds in the vine rows without doing a lot of disturbing of the soil itself.
ACT Unless weeds have gotten way out of hand and are thick and tough, these
NT brushes may be all that is needed to keep the vine rows clean.
? CO BOOTH #903
Some of the sweepers had spring steel brushes, which may be an even
N S
O better alternative to the nylon ones in that they are flattened (kind of like
S TI
E a dry linguine noodle) so they would have a cutting action when rotating.
QU Again, we saw many variations on the theme for all of these berm brushes. If
T
GO 2356 RESEARCH DRIVE  LIVERMORE, CA 94550 anything, I think this was the greatest revelation for me. If we can keep the
berms free of thicker weeds, this tool could perform much of the work for

134 February 2018 WBM

us. Often there is simply no need to disturb the soil, and leaving some weed
roots to break down will help us to mitigate the biological desert that we
create with repeated herbicide treatments.
We also saw machines that may serve more than one purpose. For instance,
Clemens has something they call a Multi-Cleaner, a brush that rotates along
a horizontal axis essentially parallel to the vine row, which not only removes
trunk suckers at the base of the vines but also can serve a berm-sweeping
function. Again, tools like this may be used as a light-duty cultivator when
weeds are not dense, with the added benefit of some trunk-suckering.
And yes, we saw plenty of trunk-suckering machines as well, again using the
nylon or rubber brush-type of mechanism.
normally deal with the lazy Pinot vines by using branch locks or similar
clipping devices, but hand applying them is tedious and expensive. This
system automates that process.
Similarly, another type of shoot lifter uses a tilted conveyer belt to coax the
shoots vertically, and instead of wires, it ties them up with its own cord and
pinches them together with clips like the other design.
I foresee these machines becoming more and more commonly used tools
in coastal California vineyards.

Canopy
Management
One of the most labor-intensive
parts of viticulture, especially with
“modern” trellis systems, is canopy NEW PLANTINGS ARE SAFE.
management. We are all familiar 92 Weed Species are in Big Trouble.
with leaf-pulling machines, so I
won’t say much about them. The
machines we saw were the types
commonly seen here in the U.S. (that
were mostly developed in Europe):
the air blast machines that blow off
leaf blade tissue with strong puffs of
air, and the more common pluckers
that use a fan to pull leaves toward
rollers that grab and pull leaves in
that manner.
We were mostly interested in
seeing what types of machines there
were to lift wires and/or shoots and
keep them upright. Wire-lifting and
shoot-tucking and -clipping is a
labor-intensive process that is slow
and must be done two to three times
per growing season. It also seems like
the time of the growing season when
growers are most likely to get behind
in their work.
We saw two types of systems.
One system grabbed and lifted the
wires, which ran on guided spools
to lift them to the proper height.
The shoots were coaxed vertically by
auger mechanisms at the same time If ever a time for crop safety, it’s in new
as the wires were being lifted. The plantings. And if ever a time when weed control
is challenging, it’s also in new plantings. Trellis® herbicide has
wires were not placed into notches or proven crop safety and offers pre-emergence control of 92 weeds,
retaining clips on the posts, but were including marestail, fleabane, malva and clover. Trellis can be used in
pinched together with some sort of non-bearing grapes, tree nuts, citrus, pome and stone fruit. Applications can be made to new
staple or other fastener at regular plantings as soon as the soil has settled. Trellis can also be used in bearing tree nuts and grapes.

intervals. The clips had a secondary

benefit of reducing the tendency
of shoots to fall down inside of the
®
Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow
catch wires, which is a common Always read and follow label directions. www.dowagro.com

problem for us with Pinot Noir. We

WBM February 2018 135

On a European Quest for Mechanization

Other Odds and Ends

SITEVI had more implements and devices than one could take in at any
one time. Like us, I imagine that most of the attendees had some idea about
what types of machines they were looking for. Every type of sprayer imag-
inable was represented, so much that the various manufacturers seemed to
be showing the same sprayers with different colored poly tanks than their
competitors—akin to my quip about the various paint jobs on the cultiva-
tors and other implements. I imagine that the impetus for deciding which
one to purchase is whether there is a local distributor that can support the
equipment when it needs repairs.
That said, the number of manufacturers for any given type of equipment
seems to be greater in Europe than it does in the U.S., which is always good
for the consumer—the grower. I would ideally like to see more of these
manufacturers seek representation in our part of the world. It would be good
for the growers and would stimulate more and more innovation among
manufacturers. The demand will most certainly be increasing for this equip-
ment in the U.S. so let’s hope we see some different paint colors coming our
way too! WBM

ASEV Corner
Connections and Peer-Reviewed Information
for Extension at ASEV
So much of how we work today is about tech-
nology and how we utilize it. Information is a
Google search away. As a viticulture extension
specialist, AKA farm advisor, I rely heavily on
research, technology and, most importantly,
personal connections for professional success.
Eighteen years ago, while obtaining my
master’s degree in horticulture and agronomy
at UC Davis, I was introduced to the American
Society for Enology and Viticulture (ASEV) as a
scholarship recipient. I was encouraged to attend
the Unified Wine & Grape Symposium and the
ASEV National Conference, where I learned
quickly the importance of staying connected
with these networks of people. Professionally,
this made sense when looking for employment
after graduation. Having access to brilliant minds
that I could learn from and exchange ideas with
proved to be vital to my professional growth and
success. That’s still one of the biggest reasons
why I’m a part of ASEV.
Some would say that ASEV programs are West
Coast-centric, but I have found tremendous
value in attending the Unified Symposium and
the ASEV National Conference. At these confer-
ences, I have learned about the important work
that AJEV science editor Markus Keller is doing
on water relations and berry development at
Washington State University, Prosser. This has
been important to us in the Finger Lakes region.
Since our region gets substantial rainfall close
to harvest, we don’t irrigate; and as a result,
growers have assumed that if there’s a lot of
rain, the vines absorb more water from the soil,
and the berries become larger because of it.
Markus’ work has shown that it’s not the vines’
roots that are picking up the water to make the
berries bigger but the water entering the berries
themselves. Understanding the mechanisms of
pathology and physiology eliminates outdated
assumptions and creates a better plan of action
for managing vineyards. Knowing how patho-
gens work or are transmitted, or how nutrients
are absorbed and used by vines, is important
information that can help farmers and business
owners make informed decisions.
Part of what’s lacking in the extension commu-
nity is that we need more places to connect and
learn from one another, and to obtain important
extension-related information that is peer-re-
viewed. ASEV is closing that gap with its latest
publication, Catalyst: Discovery into Practice.
The Catalyst provides an online, science-based
information resource to assist the extension
community and also disseminates peer-reviewed
research to local industries.
The connections I have made through ASEV,
both through the national organization and the
Eastern Section, are the reasons I am aware of
groundbreaking research practices that I can
bring into my work. This knowledge, gleaned
from mentors and colleagues, is what I use to
help our growers in New York. Even though
the work is being done on the West Coast, like
the dynamics of how grapevines use water, it is
still important to how we manage vineyards in
the East. And this information exchange goes
both ways. On the eastern side of the Rocky
Mountains, we are subjected to higher disease
pressure due to climatic conditions that are not
typical on the West Coast. When new pathogens
appear because of atypical weather patterns,
California often looks to the East for guidance
on how to manage certain diseases. ASEV is the
perfect conduit for this science-based informa-
tion exchange in the U.S.
Understandably, it’s difficult to carve out time
from our busy schedules to attend conferences
and connect with other industry members, but I
feel it’s worth the investment, and I leave re-en-
ergized and ready to tackle the next project.
For those of us who are in extension, there’s
no reason to not be a part of this community
because ASEV is a resource that we should be
leaning on. Our job is to extend science-based
information that is useful to the industry, and
ASEV is one of the most important sources of
that information. That’s why I continue to be a
member and to be involved in the organization.
Connect with me at the Unified Symposium. I’ll
be at the ASEV booth on the main floor outside
of the tradeshow.
Hans Walter-Peterson,
ASEV Board Director
Viticulture Extension Specialist,
Cornell Cooperative Extension,
Finger Lakes Grape Program

136 February 2018 WBM

TOP 4
REASONS
TO USE
HEAT

1 Increase Fruit Set & Yield

“We were thrilled to learn that our treated acreage had a
2 Decrease Chemical Needs
“I’ve satisfied myself that powdery mildew can be
23.4% higher yield than the control blocks in 2016.” controlled well into the growing season cutting back on
much of our annual fungicide use.”
- Mark Chandler, Lodi Grower and Former Executive Director,
Lodi Winegrape Commission - Tom Franscioni, Franscioni Farms, Salinas, CA

3 Enhance Wine Quality

“Tastings have consistently shown Thermaculture wines
4 Make More Money
“At harvest, I saw increases in yields between 12-31%,
to have better fruit definition, complexity and, for the with an average of 21%. Just that increase in production
reds, a more textured mouth feel which I firmly believe alone covers the cost of the machine.”
is due to improved levels of antioxidants and balanced
- Jim Schultze, Windy Oaks Estate, Corralitos, CA
tannin structure.”

- Philip Goodband, Master of Wine

Discover how Thermaculture® heat treatments can

solve your vineyard needs. Talk to an expert today at
415 PIK-AGRO or www.agrothermalsystems.com/top4
 grape growing

A Pruning Technique for Improved

Vine Health and Longevity
Judit Monis, Ph.D.

PHOTOS BY JUDIT MONIS

Dr. Judit Monis is a California-based plant health consultant who
provides specialized services to help growers, vineyard managers and
nursery personnel avoid the propagation and transmission of disease
caused by bacteria, fungi and viruses in their vineyard blocks. Please visit
juditmonis.com or contact juditmonis@yahoo.com for information.
This is a cross-section of a vine with large desiccated or
dead areas. Note the instructor’s finger, which is pointing
to a large rotten area resulting from cutting a wide
section of the vine.

I N FA L L 2 0 17, I attended a workshop on grapevine pruning organized by

the Napa Valley Viticulture Technical group and co-sponsored by Simonit
Pruning Alters the Vine Balance
& Sirch Master Pruners. The two, half-day program included the theory
and Affects Vine Health
Yearly pruning aims to create a balance between vegetative growth and fruit
of pruning as well as a field demonstration in a commercial vineyard. As
production. The grapevine plant is a vine and, as such, has a tendency to
a plant pathologist, I am interested in vine health and was curious to learn
branch out and could grow uncontrolled unless it is pruned and trellised.
about a method that claims to respect the natural growth and functions of
The vertical shoot positioning vine training used throughout the world
the vine. During my career, I have seen many pathology issues that are the
relies on cutting back the plant shoots periodically to control plant growth.
consequence of poor manipulation at the nursery (grafting defects, large
When vines grow above the trellis wire, they need to be cut back to bring the
disbudding wounds, etc.) or at the vineyard (embedded ties and wires, as
plant to a manageable height. By doing so, the pruner creates large cuts that
well as large pruning wounds).
dry and desiccate the wood—the larger the cut, the larger the desiccated
Wounds are the entryway for many known fungal and bacterial pathogens
or dead zone. Cuts can be performed on either side of the vine and can
that cause trunk diseases, such as vine decline, Eutypa dieback, Bot canker
alternate from side to side to create cross cuts along the vine. This can occur
and crown gall. Could a pruning method that respects the natural functions
regardless of the training system (i.e., cane- or cordon-pruned vines) used
of a vine be the solution? Have most viticulturists around the world been
in the vineyard.
applying management and pruning techniques that were detrimental to
However, in a cordon-trained vine, cuts are performed in every spur,
vine health and longevity? I was eager to learn about how the Simonit &
multiplying the number of desiccated areas along the cordon. The desiccated
Sirch method can be applied in the vineyard to improve the health and
areas near the pruning cuts are ideal sites for the entry of disease-causing
productivity of grapevines. Below I share what I have learned so far about
pathogens that colonize and affect the vine’s health. Infected wounds evolve
this new method.
into larger areas of dead wood that, with time, coalesce and cause the vine to
decline and dieback. On the other hand, small cuts (cuts on one- or two-year

138 February 2018 WBM

 Cross-section of a vine with a balanced ratio of live and dead areas
old wood) create small desiccation zones and provide a better ratio of live
versus dead tissue in the vine, allowing the vine to be less susceptible to stress
and favoring healthier growth. According to Simonit and Sirch, most pruners
perform indiscriminate cuts that do not respect natural grapevine growth
habit. Consequently, there is a negative impact on the vascular system that
is detrimental to the vascular sap flow (think about it as a highway traffic
jam). As a result, there is a lack of vine balance responsible for weaker shoots,
smaller grape clusters and a shorter vine lifespan.
The Solution: A Pruning Method That
Respects the Vine’s Natural Physiology
The Simonit & Sirch pruning method was developed to respect the normal
growth of the vine. One of the company’s co-founders, Marco Simonit, was
curious as to why some vineyards were healthy and lived for many years while
others would not last more than 20 years. He started making cross-sections
of vine wood from long-lasting vineyards and compared those with the
wood from vineyards that did not live as long. His observations suggested
that vines that received large cuts (done on wood older than two years),
alternating in different sides of the vine (called return or cross cuts), did not
fare as well as the vines that were allowed to branch naturally and received
smaller cuts on the same side of the vine.
The Simonit & Sirch method is now applied in many important grape-
growing areas of the world. The company consists of a group of 20 consul-
tants, who help vineyards and wineries adopt their pruning methods in Italy,
France, Germany, Spain, Switzerland, Australia, South Africa and California.
The consultants work alongside the pruning crew to help understand the
plant needs and determine the best strategy to train and prune vineyards.
The ultimate goal is to develop long-lived and healthy, productive vineyards.
Simonit & Sirch also offers training classes in Italy (Italian School of
Vine Pruning) and have written detailed manuals describing their method
in Italian and French (an English translation is in the works). Recently, the
group has teamed with the University of Bordeaux to offer a master’s degree
in pruning techniques. The program in Bordeaux includes lectures related to
vine physiology and pathology, as well as “hands-on” field-pruning practice.
The pruning technique is based on four principles: favor the natural
branching of the vine, respect the vascular sap flow, avoid large cuts and,
when pruning, leave a section of wood with a length equal to the diameter of
the section that was cut during pruning.
The first principle recommends allowing the vines to branch. The vine
needs to grow into its space and follow a chronological sequence. The
younger wood grows out of a year older wood, and this one from a year
older wood and so forth (i.e., one-year-old wood grows out of two-year-old
wood, two-year-old wood grows out of three-year-old wood, etc.). The plant
is allowed to grow larger and branch but in a controlled way.
WBM February 2018 139
A Pruning Technique for Improved Vine Health and Longevity

Note the number of large pruning wounds in the cordon-trained vine

140 February 2018 WBM

 The second principle advocates to respect the sap flow. To achieve this goal,
all pruning wounds must be located on the same side and follow the chrono-
logical sequence of the vine. If all cuts are done on the top of the vine, the
underside remains untouched and allows the proper flow of the vascular sap.
The third principle states to only produce small cuts in the vine. Basically,
avoid cutting any wood that is older than two years to avoid large desiccation

IF YOU WANT THE BEST,

areas. In addition, the basal buds between two- and one-year-old wood
should not be removed.
The fourth principle proposes not to produce flush cuts but leave some BUY FROM THE BEST.
spear wood (they call it legno di rispetto, in English: wood of respect). This
means that the pruner must leave a length equal to the diameter of the wood
Every day, Wonderful Nurseries follows the
that is being cut (i.e., if the wood cut is a half-inch in diameter, the spear philosophy that testing is believing. It’s why we
wood should be a half-inch long). This last principle is most important if confidently offer the cleanest vines in the industry.
In line with our “Growers First” philosophy, we
large cuts are required during pruning.
During the field section, we observed a newly planted vineyard, and the
instructors explained how it will be trained in the near future to adopt their have designed every element of our advanced
pruning method from the start. We also observed a couple of older cordon- processes & facilities to bring our grower partners
trained blocks, and the pruning strategy that will be used was demonstrated.
peace of mind. This includes our intensive vine
The master pruners started working on this vineyard five years ago, and
through their intervention, they hope to improve the health and longevity of testing program, with 100% scion testing for
older blocks. Cross-sections of a couple of older cordon-trained vines were internal mother blocks annually. Our in-house ISO
showcased to observe the different ratios of dead and live tissue (P H O T O S Certified testing lab and built-in safeguards help
1 A N D 2 ).
The reader is encouraged to visit the website to see an illustrated description
accomplish this task. When it comes to getting the
of the Simonit & Sirch method. Information on classes and pruning manuals best in value, selection and cleanliness, Wonderful
can also be found: http://simonitesirch.com/simonitesirch-pruning-method Nurseries delivers every time, vine after vine.

RELY ON THE INDUSTRY’S CLEANEST VINES –

Conclusions 100% TESTED MOTHER BLOCKS
Once a vineyard is established, vine-pruning is one of the most important
activities performed in the vineyard on a yearly basis. After learning about
the method, I agree that a pruning technique that does not disrupt the
vascular sap flow and creates smaller wounds could improve vine health
and longevity. We know that disease symptoms are modulated by stress
factors, so a method that is kinder to the vine promises to allow the plant
to tolerate a certain level of pathogen infection. Still, in my opinion, to be
successful, the Simonit & Sirch pruning methodology should be adopted
as early as possible after planting and be complemented with other trunk
disease prevention methods. The pruners should avoid pruning in the rain
or after long periods of rain, prune as late as possible (or perform double
pruning in large vineyards), use wound protectants, such as Safecoat
VitiSealTM, and remove the pruning residues from the vineyard. Studies
performed by Dr. Kendra Baumgartner (USDA / UC Davis) indicate that
these preventative disease management procedures should be adopted as
early as possible to be cost-effective. However, it is of utmost importance
to start with healthy planting material (tested to be free of pathogens and
lacking graft union defects, galls, etc.). I was once asked if vines that had a
completely rotten vascular system (these were infected with Ilionectria and
Phaeomoniella species) would improve after being planted in the vineyard.
My answer was and continues to be no. Not only would these vines not get
better, they would be a source of infection to neighboring vines. I cannot
SERVING THE WINE, TABLE GRAPE, RAISIN
stress how important it is to plant a healthy vineyard. WBM AND PISTACHIO INDUSTRIES
661.758.4777
WonderfulNurseries.com
P.O. Box 279, 27920 McCombs Ave., Wasco, California 93280
© 2017 Wonderful Nurseries LLC. All rights reserved. WONDERFUL, WONDERFUL NURSERIES
and the accompanying logos are trademarks of Wonderful Nurseries LLC or its affiliates.

WBM February 2018 141

grape growing

Alternative and PD-Resistant Wine Grape

Varieties Evaluated at UCD Meeting
Ted Rieger Ted Rieger, CSW, is a Sacramento-based wine journalist and a writer for wine trade media since 1988.

PHOTOS BY TED RIEGER

Grape breeder
Dr. Andy Walker
presented a tasting
of new PD-resistant
grape varieties.

M O R E T H A N 1 0 0 P O T E N T I A L alternative winegrape varieties have
been evaluated in field trials in California’s San Joaquin Valley for more than
10 years with data collected on their viticultural characteristics, yields, and
grape and wine chemistry. These trials have focused on winegrape varieties
traditionally grown in warmer climates in Italy, southern France, Spain
and Portugal. Although these varieties were evaluated for their suitability
in the San Joaquin Valley to meet the region’s climatic, management and
economic criteria, given warming trends associated with climate change,
information from these trials could also be useful for other California and
U.S. vineyard locations.
Alternative varieties and new Pierce’s Disease-resistant winegrape cultivars
were the focus of a recent extension seminar presented by the University of
California, Davis (UCD) Department of Viticulture and Enology called,
“Adaptive Winemaking—Getting the Most Out of Your Site.”

142 February 2018 WBM


Tasting samples of new PD-resistant grape varieties
Alternative Variety Trials
Former UC Cooperative Extension (UCCE) farm advisor for Madera,
Mariposa and Merced counties Lindsay Jordan (now a viticulturist with
E&J Gallo) provided an update on the warm-climate winegrape variety
field trial at the Kearney Agricultural and Research Extension Center in
Parlier (Fresno County). The trial began in 2003 by former UCCE viticulture
extension specialist Dr. Jim Wolpert and continued and expanded over the
years with assistance from UCD viticulturists Dr. Mike Anderson and Dr.
Matthew Fidelibus.
Common problems with quality winegrape production in warm climates
are inadequate acid accumulation and retention, poor color development
and difficulties with aroma and flavor precursor development. The Kearney
trial has had more than 50 varieties at any given time with 12 to 17 vines of
each variety planted on 1103P rootstock. Varieties are evaluated for yields,
susceptibility to rot, vine vigor and productivity, ripening in relation to
harvest timing, grape and wine chemistry and quality attributes. Poor-per-
forming varieties have been removed from the trial over time and replaced
with new varieties for evaluation.
In 2011, Wolpert provided initial recommendations based on trial results
that indicated Petit Verdot, Tannat, Malbec and Durif (Petite Sirah) were
varieties that could each produce good yields and high-quality grapes and
red wines in the San Joaquin Valley.
Jordan coordinated the Kearney trial for 2015 and 2016. She pointed out
that only nine varieties continue to account for 75 percent of California’s
winegrape crush tonnage. She calls these “the Big Nine,” and listed them
in order from highest percentage crushed in 2016: Chardonnay, Cabernet
Sauvignon, Zinfandel, French Colombard, Merlot, Pinot Noir, Rubired,
Pinot Gris and Muscat of Alexandria. “Most of these varieties come from
France, but France is not California, and it’s not the Central Valley,” Jordan
said. “Looking at a world beyond the Big Nine is vital for our industry. Many
varieties have desirable characteristics for production in the San Joaquin
Valley and in warm climates.”
WBM February 2018 143
Alternative and PD-Resistant Wine Grape Varieties Evaluated at UCD Meeting
Oren Kaye, research and development winemaker for Constellation
Brands in Madera, has been involved with the Kearney trials, producing
wines from several vintages of trial grapes at Constellation’s Mission Bell
Winery in Madera. (More recently, trial wines were produced at the UCD
teaching and research winery.) In addition, Kaye said Constellation has
evaluated more than 100 varieties since 2007 (some of the same varieties as
at Kearney), plus about 25 others, at four other trial sites in the San Joaquin
Valley. Kaye echoed Jordan’s observations about the suitability of growing
traditional French varieties in the San Joaquin Valley. “Trying to get Merlot
to grow well for quality wine south of Merced County doesn’t work. We can
plant better choices of grapes in these areas,” Kaye said.
Kaye listed criteria for evaluating a variety’s suitability for the San Joaquin
Valley:
• Must provide benefits for both wineries and growers.
• Yields need to meet a grower’s needs for economic sustainability with a
minimum of 10 tons per acre and 12 to 14 tons per acre preferred.
• Must have low rot potential (loose clusters, lower management costs)
and have appropriate harvest dates.
• Should have high concentration of anthocyanins, good color, quality
and mouthfeel with no vegetal aromas/characters.
• Good/desirable flavors that blend well and add value above
established varieties.
144 February 2018 WBM
Another consideration is suitability for mechanical harvest, to be further
evaluated as larger acreages are planted. “This requires evaluating cluster
and berry structure to be sure they don’t fall off the vine too easily or are
easily damaged, or if they don’t come off easy enough,” Kaye said. Although
trials were commonly planted with a California Sprawl trellis, Kaye believes
newer, single high-wire, box-pruned trellis systems with cordons 6 feet
above the ground can potentially improve yields and quality while also
being better suited for mechanical harvest.
Jordan and Kaye listed several white and red varieties that have shown good
promise for high yields, low rot and good wine quality. These can provide
favorable characteristics for blending, but may also have potential as varietal
wines. Descriptions below include researcher comments and information
from the UCD Foundation Plant Services (FPS) Grape Registry (formerly
the National Grape Registry) at: http://fps.ucdavis.edu/fgrabout.cfm
WHITE WINEGRAPES:
Fiano—Grown in Italy’s Campania region. An early ripener with no rot and
good acidity. “Fiano is a star among the white wines with good acid,” Kaye
said. FPS has selections from Italy and California.
Alvarinho—Grown in Portugal’s Vinho Verde region, and in Galicia in
northwest Spain, where it’s called Albariño. Early ripener, low rot, high
acidity. FPS has selections from Portugal and Spain.
Arinto—From Portugal, known for high acidity and can be aged. Ripens
early. Kaye called it “a Colombard-like variety but with better wine quality
characteristics.” FPS has four selections from Portugal.
agroliquid.com/salt-index-grapes
Viozinho (also Viosinho)—Grown in Portugal’s Douro region, used for
Port and unfortified wines. FPS has two selections from Portugal.
Falanghina—Grown in the Campania region of southern Italy. FPS has one
selection from Italy.
Parellada—Grown in northeastern Spain as a primary component in
Cava (sparkling wine) but also as a blender in still wines. It tends to ripen
later. Kaye believes it has potential as a sparkling wine blender, where full
ripeness is less of a concern. FPS has one selection from Spain.
Petit Manseng—Grown in the Jurancon region of southwest France. FPS
has selections from France, including a Tablas Creek Vineyard selection
and a proprietary selection from ENTAV-INRA. In the Kearney trial, the
variety was an early ripener, the wine had good aromas, and Jordan called it
“an acid bomb.”
Biancu Gentile—Grown on the island of Corsica. FPS has a proprietary
selection from ENTAV-INRA in France.

RED/BLACK WINEGRAPES:
Bonarda—A black grape variety, Bonarda is a name associated with three
distinct varieties in Italy—Bonarda Piemontese, Croatina and Uva Rara. In
Argentina the variety called Bonarda (used as a red blender with Malbec)
was shown through DNA testing to actually be the French grape Corbeau.
FPS has the Bonarda 02 selection used in the Kearney trial. Kaye said it
has good vine structure, produces grapes/wines with dark color, but yields
varied between vintages.

Graciano—Grown in Spain in the Rioja region and in Navarra and Castilla

de la Mancha where it’s more commonly a blender. Also grown in Portugal
where it’s known as Tinta Miuda. Also known as Morrastel in France.
Sometimes called Xeres in California. Has good aroma and color and
performed well in the Kearney trial with high yields over 10 tons per acre.
Improve Wine Grape Ripening
FPS has selections from Spain, Portugal and California. and Berry Size Uniformity
Teroldego—Grown in northern Italy’s Trentino-Alto Adige region. Known
for wines with dark color and good body. Produces good yields, ripens early Apply Organic TRIGGRR®
and has low rot. California plantings have increased hundreds of acres in and the Westbridge Nutritional
recent years as a blender for large producers and as a varietal wine for small Program before bloom to
enhance nutrient utilization
producers. FPS has selections from Italy and California. and bloom uniformity, which
can improve the uniformity of
Segalin—A black French variety. Trials showed high yields (10 or more ripening and berry size.
tons per acre), low rot and good color. FPS has proprietary selections from
ENTAV-INRA.
ORGANIC ORGANIC
® ®

Jordan said these three white varieties show good potential as blenders, with
high yields and favorable characteristics, and could be good alternatives to Pinot Noir Trial in Monterey County, CA, 2017

Colombard in the San Joaquin Valley: Berries that are

PINOT NOIR BERRY SIZE DISTRIBUTION
# OF BERRIES PER WEIGHT PER CLUSTER

14
more uniform in 12
Biancolella—Grown in Italy in the Campania region and on the islands of size are more likely 10

Ischia and Capri. FPS has one Italian selection. to ripen uniformly, 8

which can improve 6

Forestera—Grown in Italy on the islands of Ischia and Capri and flavor intensity and 4

sometimes blended with Biancolella. FPS has one Italian selection. wine quality. 2

0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4+

Trebbiano Toscano—Grown in Italy for white wine production. Also BERRY WEIGHT (GRAMS)
GROWER STANDARD ORGANIC TRIGGRR +
known in France as Saint Emilion and Ugni Blanc and used for distilled NUTRITION GROWER STANDARD NUTRITION

wines, such as Cognac. FPS has three Trebbiano selections from Italy, and
one selection each of Saint Emilion and Ugni Blanc. (800) 876-2767
® www.westbridge.com

WBM February 2018 145


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Alternative and PD-Resistant Wine Grape Varieties
Evaluated at UCD Meeting
PD-Resistant Winegrapes
UCD professor and geneticist Dr. Andy Walker discussed five new Pierce’s
Disease (PD)-resistant winegrape varieties produced through his breeding
program and led a tasting of red wines from PD-resistant cultivars. These
five selections (three red wine and two white wine cultivars) will soon be
available from FPS to certified commercial grapevine nurseries that partici-
pate in the California Department of Food & Agriculture (CDFA) Grape-
vine Registration and Certification Program. The selections have shown
strong resistance to PD in greenhouse and field trials, and have shown high
fruit and wine quality across several vintages and wine tastings. They are the
results of a multi-year research project funded through the CDFA Pierce’s
Disease and Glassy-Winged Sharpshooter Board.
Walker is traditionally-breeding winegrape varieties of Vitis vinifera
with native American Vitis species that carry PD-resistant genes. The new
releases carry a PD-resistant gene from Vitis arizonica. Walker’s breeding
methods involve backcrossing through several generations of vine crosses
to progressively increase the V. vinifera parentage and characteristics to as
high as 97 percent. Since 2013, Walker has advanced 19 PD-resistant culti-
vars to FPS for certification that include both 94 percent and 97 percent
The proven NORIA system, with its poly- The BRAUD harvester cab is fully suspended
Vitis vinifera parentage.
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heat and air-conditioning offer optimum
comfort and protection during harvest, spraying
Field trials with PD-resistant cultivars are being conducted at UCD, in
and other operations.
Napa Valley, Sonoma County and Temecula in California; and Texas and
Santa Rosa, CA Fairfield, CA Stockton, CA Ukiah, CA
Alabama. A Florida field trial began in 2016.
(707) 586-1790 (707) 425-9545 (209) 948-5401 (707) 468-5880
An issue in producing wine from a PD-resistant cultivar is what to label it
and how to market it to consumers, as it will be unable to bear a commonly
recognized Vitis vinifera varietal name (such as Chardonnay, Zinfandel,
11/16/17 3:16 PM etc.). Walker plans to name each variety and receive approval before the
first plant material is sold by nurseries. The varieties are also going through
a patent process.
In California, Walker believes these cultivars will be planted at sites where
PD pressure is high, such as North Coast riparian areas, or in Southern
California where GWSS populations exist. They could be used at levels of
25 percent or less in varietal wines, or as components of non-varietal red or
white blends. PD-resistant cultivars could be highly sought and accepted in
the Southeast U.S., where growers are generally limited to growing PD-re-
sistant hybrids that do not have Vitis vinifera wine quality. The five varieties
(with their breeding program index numbers) are described below.
07355-075—50 percent Petite Sirah, 25 percent Cabernet Sauvignon: This
red winegrape with a 94 percent Vitis vinifera level makes wines with char-
acteristics of both Cabernet Sauvignon and Petite Sirah. Commercial-scale
wines have been made from established test plots along the Napa River. This
selection is early to break dormancy, bloom and ripen. It produces relatively
large berries, with well-filled clusters of medium size. It has ranked highly at
tastings of both Davis and Napa fruit. Tasting descriptions include: dark red/
purple in color, bright red fruit, raspberry, cherry, ripe, tannic and elegant
rather than dense.
09331-047—50 percent Zinfandel, 25 percent Petite Sirah, 12.5 percent
Cabernet Sauvignon: A red winegrape with 97 percent Vitis vinifera.
Commercial scale wines have been made from field trials near the Napa
River and from Temecula. Blooms late but ripens mid-season. Medium-sized
berries and large clusters. It is spur fruitful but typically has only one cluster
per shoot and is more productive with cane-pruning. Tasting comments
include: medium dark red/purple, berry pie, cassis, black olive, herbal,
dried hay, coffee, vegetal like Cabernet Sauvignon, licorice, round, moderate
tannins and soft finish.
09356-235—50 percent Sylvaner, 12.5 percent Cabernet Sauvignon,
12.5 percent Carignane, 12.5 percent Chardonnay: A red winegrape with
97 percent Vitis vinifera. Mid-season bloom and ripening period. Highly
productive with large berries and loose clusters. Wines made only from
Davis fruit but highly rated. Tasting comments include: dark red/purple
color, complex fruit with herbs and earth, plum, big wine, dense, rich middle,
tannic yet balanced. Winemakers believe it has great blending potential with
Cabernet Sauvignon with high levels of quality tannin.
09314-102—62.5 percent Cabernet Sauvignon, 12.5 percent Carignane,
12.5 percent Chardonnay: A white winegrape with 97 percent Vitis vinifera.
Field-tested in Temecula, Sonoma and along the Napa River. Blooms and
ripens early. Highly productive with small to medium berries and relatively
large clusters. Wines are reminiscent of Sauvignon Blanc. Tasting comments
include: light straw to clear color, citrus, lime, tropical, gooseberry, golden
delicious apple, bright fruit, slightly bitter and textured.
09338-016—62.5 percent Cabernet Sauvignon, 12.5 percent Chardonnay,
12.5 percent Carignane: A white winegrape with 97 percent Vitis vinifera.
Field trials planted only in Davis to date. It has small berries, small compact
clusters, blooms late but ripens mid-season. The vine has medium produc-
tivity. Tasting comments include: light straw-gold color, floral aromas, apple-
melon, lychee, pineapple, green apple and well-balanced.
Viticulture consultant Dr. Paul Skinner of TerraSpase in St. Helena has
worked with Chuck Wagner of Caymus Vineyards since 2014 and to date
they have planted nearly 2 acres each of two red PD-resistant varieties (07355-
075 and 09331-047) in a PD hot spot near the Napa River as a commercial
trial. Skinner brought a bottled blend to the seminar for sampling from
the 2016 crop that included both varieties, plus 25 percent Petite Sirah. A
larger crop was machine-harvested in 2017, and the two varieties are being
processed separately.

Winemakers Present
Alternative Varietal Wines
Elyse Perry, winemaker for Bokisch Vineyards in Lodi that specializes
in Spanish varietal wines, presented samples of the winery’s Verdejo and
Graciano. Verdejo is a white variety associated with Spain’s Rueda region
and known for rounded flavors with crisp acidity. Bokisch Verdejo is
planted in the Clay Station area of the Borden Hills sub-AVA of Lodi. It is
produced 100 percent in stainless steel, and Perry said it is important to use
a cool fermentation to preserve its bright, aromatic character. The winery
produced 250 cases of the 2015 vintage, priced at $18 per bottle.
Graciano is typically grown in Spain’s Rioja region as a blender for its color
and acidity. “I call it my magic bullet in the cellar; it gives good characteristics
as a blender for other reds,” Perry said. Bokisch grows it in the Clements
Hills and the Mokelumne River sub-AVAs of Lodi. The 2014 Graciano has
intense and aromatic characteristics, blackberry and blueberry flavors with
earthiness and ages well. Perry cautioned, “Graciano tends to have heavy
seeds, so I’m careful when pressing and fermenting not to extract too much
seed tannin.” The wine was aged 18 months in both French and American
oak. The winery produced 315 cases priced at $23 per bottle.
Bill Easton, owner and winemaker at Terre Rouge and Easton Wines
in Amador County, specializes in Rhône varietals. “What took me to the
Sierra Foothills is its similarity to the Rhône region in France,” Easton said.
He sources fruit from 14 vineyard sites across four Foothill counties, and
the winery produces 25,000 cases annually. He brought samples of his 2012
Grenache Blanc and a 2010 blend with Grenache Noir, Syrah and Mourvèdre.
The Grenache Blanc is from southern El Dorado County. It is the last white
grape Easton picks each year. It has thick skins and some color, and some
years looks like apricot juice. The grapes are whole cluster-pressed. Small
Bokisch Vineyards winemaker Elyse Perry with a bottle of Graciano
sourced from the winery’s Clements Hills vineyards in the Lodi AVA.
stainless steel tanks are used for long fermentations. It is one of the last white
wines bottled each vintage. Easton made 100 cases from the 2012 vintage,
priced at $25 per bottle.
The Grenache Noir is sourced from a vineyard in Georgetown (El Dorado
County) and makes up 65 to 80 percent of a Chateauneuf-du-Pape-style
blend each year called “L’Autre,” in French, “the other one.” Easton said,
“We want this red wine to be distinctively different from our other wines.”
The Grenache is fermented with 50 percent crushed fruit and 50 percent
whole clusters layered into the fermenter. “We want a savory quality from
the Grenache lot,” Easton said. Each varietal lot is fermented separately then
blended 18 to 20 months later. The 2010 vintage was 73 percent Grenache,
14 percent Syrah and 13 percent Mourvèdre to produce a wine led by Gren-
ache’s savory plum and black cherry flavors. About 200 cases were produced,
priced at $30 per bottle.
Luciana Turkovich of Turkovich Family Wines in Winters (Yolo County)
brought a 100 percent varietal Albariño, a Spanish white variety, sourced
from Dunnigan Hills in Yolo County. The grapes are fermented 100 percent
in stainless steel, see no oak, and the wine is bottled by the end of November.
Turkovich said, “Albariño is easily oxidized and can lose aromas quickly. We
don’t play with it too much, and we bottle it early to keep its aromas and
freshness.” Production for the 2016 vintage was about 400 cases, priced at
$17 per bottle. WBM

WBM February 2018 147

sales & marketing

Retail Sales Flat Through Fall 2017

Nielsen data alludes to a soft sales market, but not all retailers are seeing it.

Liza B. Zimmerman
Liza Zimmerman has been writing, educating and consulting about wine and food for more
than two decades. She is the principal of the San Francisco-based Liza the Wine Chick
consulting firm and regularly contributes to publications such as Wine Searcher, DrinkUpNY and
Beverage Media. She has also worked almost every angle of the wine and food business: from
server and consultant to positions in distribution, education, event planning and sales. She has
visited all the world’s major wine-growing regions and holds the Wine & Spirit Education Trust
Diploma (D.W.S.), the three-year program that is the precursor to the Master of Wine.

R EC E N T N I E L S E N DATA I N DIC AT E D
a slight slowdown in the retail wine sales
market in fall 2017. The dollar volume change
versus the yearly average for total table wine
was 1.5 percent for the four weeks ending
Nov. 4, 2017, 2.4 percent in a similar 13-week
period and 2.5 percent over a year.
“Growth is slowing down quite signifi-
cantly and is not growing at the same rate as
2016,” said Danny Brager, senior vice pres-
ident of Nielsen’s beverage alcohol division.
“You’ll note the reduction in growth over the
last year, though the prior year was a really
good year—the comparisons are tougher
when going against a really good year.”
Relative to 2016, wine retail sales have not
been growing at the same speed, he said,
though he noted that there are no specific
varietals that are lagging in sales. In addition,
Rosé wines from a variety of growing regions
and Pinot Noirs from Oregon are both
currently en vogue and leading sales trends.
The slowdown in sales is not limited to
the wine sector; it is affecting the overall
consumer goods industry as well, he said.
WINEOPOLIS
Sales started to slow down in October and
November, according to Brager. Value retail discounters, such as the Aldi He went on to note that by using Nielsen data, “You can clearly see the rate
chain, have also become a major part of the retail picture and contribute of growth in wine priced above $9 is declining. That is not saying that wine
slightly to some of that decline. sales are declining, but rather the positive growth rate we’ve seen in premium
In addition, the higher-priced tiers of the retail wine sales picture aren’t wine for a very long time is clearly decelerating. By middle 2018 to the start
suffering as much. Brager added that “dollars are still growing faster than of 2019, if the trend holds, wine, as a category, will have zero growth.”
volume, so premium price tiers are still performing better than the lower In affluent communities in New Jersey, Gary Fisch, the founder, owner and
price tiers.” president of Gary’s Wine & Marketplace, said that overall “sales are up, but
Rob McMillan, St. Helena-based executive vice president and founder of we are not seeing big ticket [sales], and there is no pattern for weekly sales.”
the Silicon Valley Bank’s Wine Division, concurred with Brager’s prognosis He runs four wine shops with a fifth slated to open before the end of 2017.
in a recent blog. “While premiumization is still in full force and the wine He added that sales patterns over the past few months have also been
business is still growing, today we are at a tipping point: the growth rate in incredibly inconsistent. “One store is up, and three stores are down. I can’t
premium wine is decelerating and has been since late 2015.” get a handle on anything specific.”

148 February 2018 WBM

 What sets us apart?
Conflicting Market Reports
Some brick and mortar retailers, however, particularly those with a solid
online presence, had not seen a downtick last fall. At the four-location
K&L Wine Merchants, which has Bay Area stores as well as a Los Angeles
location, co-owner Clyde Beffa said that the multi-unit stores had been up
in wine sales this fall, particularly with high-end products.
Other retailers have seen more steady, flat sales growth and found new ways
to drive new sales. “We have not experienced a similar slowdown in wine The Waterloo Container Team
sales this fall. Overall, I would characterize our wine sales as flat but steady,
which is not a recent trend for us,” said Alex Poreda, director of wine sales at

EXPERIENCE
the Orlando-based, 125-location ABC Fine Wine & Spirits. He added that,
“Our biggest shift in sales pattern occurs every year when part-time Florida
residents [aka snowbirds] come and go, depending on the season.”
Poreda added that, in general, “Online sites appear to help assist in educating
wine drinkers, which attracts them to higher quality selections.” He noted
that his chain has also formed solid partnerships with delivery apps that have
helped drive sales. “We view technology, including delivery apps, as an asset
to our sales in that we’re offering another convenient service to our current
guests, and we’re able to reach more consumers who may or may not have
already been coming into our stores. We lose some of the margin, but we’ve
been successful with our delivery partners.”
Another major retailer that knows how to work the online marketing world
had also not suffered unduly in the fall of 2017. “Wine.com is experiencing
the opposite; our rate of growth is accelerating. Revenue was up over the
prior year by 25 percent in both of the last two quarters, ending 9/30, with
even faster growth since then,” said Rich Bergsund, CEO of San Francis-
co-based Wine.com. He added that the company, founded in 1998, has tripled
its wine selections and has added 8,000 Walgreens’ pick-up sites to make
the purchasing process more convenient. Wine.com offers 17,000 wines in 43
states, as well as Washington, D.C., according to Bergsund.

Data and the Future

Data can be analyzed in many ways, so says Christian Miller, the proprietor • Family Owned and Operated
of Berkeley-based Full Glass Research, a data analytics company. He said since 1980
that one always has to question if Nielsen data represent the overall wine
sales market or only certain sectors of the retail arena. “It’s complicated • Extensive Expertise in the Wine
[and sometimes unwise] to surmise or project overall volume changes from Packaging Industry
research on a sample of consumers.”
• Total Package Provider
• Commitment to Customer Service
He added that the wine industry should be careful about making presump-
tions from one month of data because anything, like the pattern of shopping
days, weather or large-scale promotions, can present as a larger effect than
is more accurate. “However, if the four-week comparisons have been lagging • Customized Printing, Sleeving
last year [and are] lower than the 13/52 weeks for a while, then you can be and Packaging
sure something is happening,” he said.
There may not be a consensus yet as there has not been enough data to
really declare a trend, but experts are watching the numbers.
“There is very low correlation between macro-economic figures, like GDP
and the volume of wine purchased. However, there is a significant [although
not overwhelming] correlation between people’s spending on wine and the
economy,” added Miller. “If it’s showing up in Nielsen, then it’s happening in
larger chains.”
888-539-3922 • waterloocontainer.com
“It’s an overall malaise for consumer goods’ growth,” noted Brager. Fisch
concluded, “People are in a funk.” WBM

WBM February 2018 149

sales & marketing
Retail Sales Analysis
Off-Premise Wine Sales Rise 1.2 Percent
OF F- P R E M I S E T O TA L TA B L E W I N Esales increased 1.2 percent from
the same period of the previous year in the four weeks ending Nov. 4, 2017,
according to Nielsen-tracked data. In the 52 weeks ending Nov. 4, wine sales
increased 2.2 percent.
Domestic wine sales increased 1.9 percent while imported wine sales
decreased 0.7 percent in the four weeks ending Nov. 4. In case volume during
that same period, domestic case volume increased 0.2 percent and imported
case volume decreased 2.2 percent.
The French, New Zealand and Portuguese wine categories were the only
categories with growth: French wines are up 9.6 percent in sales and 8.6
percent in volume; New Zealand wines are up 7.8 percent in sales and 6.6
percent in volume and Portuguese wines are up 3.8 percent in sales and
up 6.6 percent in volume. Sales and case volume for all other imported
wines—from Australia, Argentina, Chile, Germany, Italy, South Africa and
Spain—decreased in the four weeks ending Nov. 4.
Sales for wines in the $15 to $19.99 price point segment had the most
growth, increasing 9.4 percent in sales and 10 percent in volume in the four
weeks ending Nov. 4.
The remaining premium price point categories had fair growth in the
four weeks ending Nov. 4: the $9 to $11.99 segment grew 1.4 percent in sales
and 2.1 percent in volume; the $12 to $14.99 segment increased 4.7 percent
in sales and 5 percent in volume; and the more than $20 segment grew 8.5
percent in sales and 8.6 percent in volume. Sales and case volume for wines
priced $8.99 and below dropped.
$millions Total Table Wine (last 13 4-week periods)
1,400
2016
1,200
1,000
800
11/05/16 12/03/16 12/31/16 01/28/17 02/25/17
Source: Nielsen. 4 Weeks Ending 11/04/17
150 February 2018 WBM
By Varietal
Rosé table wine above $7.99, as a category, saw a 68.7 percent increase in
sales and a 59.2 percent increase in volume in the four weeks ending Nov.
4. The category holds a 1.9 percent market share in sales and 1.6 percent
market share in volume.
Blended table wine, as a category, is up 4 percent in sales and 2.9 percent
in volume in the four weeks ending Nov. 4 and holds a 15.6 percent market
share in sales and a 15.9 percent market share in volume. Of all the blended
table wine, blush leads the growth. In sales, blush blended table wine sales are
up 72.6 percent, and volume is up 61.4 percent.
Red blended table wine is up 3.8 percent in sales and 3.22 percent in
volume, and white blended table wine is down 4 percent in sales and 1.7
percent in volume.
Chardonnay, the largest selling varietal by case value and by volume on the
market, holds a 17.9 percent market share in sales and an 18.7 percent share
in volume in the four weeks ending Nov. 4. During that period, Chardonnay
sales were up 0.7 percent and volume decreased 0.6 percent.
Cabernet Sauvignon increased 3.7 percent in sales and 1.3 percent in
volume. Cabernet Sauvignon was the second top-selling varietal on the
market in the four weeks ending Nov. 4, representing 17.8 percent of all wine
sales and 14.8 percent of case volume.
Sauvignon Blanc, Pinot Gris and Pinot Noir were the only other varietal
categories with growth. Sauvignon Blanc grew 5.7 percent in sales and 4.4
2017
Year Ago
03/25/17 04/22/17 05/20/17 06/17/17 07/15/17 08/12/17 09/09/17 10/07/17 11/04/17
4 W EEK S EN D I N G
 Gomberg, Fredrikson & Associates
Market Research For The Wine Industry

percent in volume, Pinot Gris grew 0.2 percent in sales and volume and Pinot We perform extensive market research and data collection to
create the wine industry’s leading databases and reports
Noir grew 1.3 percent in sales and decreased 1 percent in volume.
Sales and volume for Malbec, Merlot, Riesling, Syrah/Shiraz, White
Zinfandel and Zinfandel have all decreased in the four weeks ending Nov. 4. Products include:
WBM
• The Gomberg-Fredrikson Report: “The Executive
Marketing Report of the Wine Industry”
• WineData Wine Pricing Report: Competitive supplier
Nielsen Table Wine Category Segments pricing for more than 13,400 products
U.S. Expanded All Outlets Combined Plus Liquor/Convenience/AAFES
• Distributor Market Service: Gain a competitive advantage
Dollar Volume
weeks ending: November 4, 2017 PERCENT CHANGE vs. YEAR AGO
by analyzing your position in the wholesale market
4 WEEKS 52 WEEK 4 WEEKS 52 WEEK
ENDING ENDING ENDING ENDING
11/04/17 11/04/17 11/04/17 11/04/17

TOTAL TABLE WINE $1,066,782,187 $14,106,867,236 1.2 2.2

TABLE WINE 187 ML $22,983,060 $292,030,336 3.3 2.3
www.gfawine.com • 707.940.3922 • inquiry@gfawine.com
TABLE WINE 375 ML $1,800,896 $22,599,803 34.6 34.3
TABLE WINE 750 ML $760,660,942 $10,073,299,162 2.0 2.6
TABLE WINE 1 L $2,661,789 $37,361,509 (11.8) 1.8
TABLE WINE 1.5 L $165,858,726 $2,255,537,811 (4.4) (2.3)
TABLE WINE 3 L $51,966,035 $640,222,403 9.0 11.1
TABLE WINE 3 L BOX/BARREL $46,883,757 $569,517,397 11.6 14.8
TABLE WINE 3 L GLASS $5,066,264 $70,489,203 (10.2) (12.4)
TABLE WINE 4 L $6,886,014 $92,095,360 (9.2) (6.5)
TABLE WINE 5 L $38,653,400 $507,817,090 (3.8) (2.3)
TABLE WINE REM SZ $1,569,999 $22,516,195 34.7 52.4
TABLE RED WINE $566,888,255 $7,264,458,127 0.5 1.6
TABLE WHITE WINE $434,496,572 $5,904,340,461 0.4 1.2
TABLE BLUSH $65,171,631 $930,263,291 13.9 14.1
DM TABLE WINE $789,778,524 $10,295,457,950 1.9 2.4
IMP TABLE WINE $277,003,664 $3,811,409,286 (0.7) 1.6
ITALIAN TBL $89,583,206 $1,262,443,489 (0.8) 2.2
AUSTRALIAN TBL $54,332,706 $709,306,109 (1.5) (1.9)
NEW ZEALAND TBL $31,397,290 $426,780,085 7.8 10.2 Looking to improve your distribution strategy?
ARGENTINE TBL $28,781,337 $391,774,222 (7.4) (5.2)
Make better, more informed decisions with Distributor Market Service.
FRENCH TBL $27,215,294 $405,783,508 9.6 15.4
CHILEAN TBL $19,991,689 $263,959,414 (7.7) (6.1)
SPANISH TBL $12,844,111 $166,634,003 (2.6) (3.6)

DISTRIBUTOR MARKET SERVICE

GERMAN TBL $6,271,237 $88,825,349 (4.8) (6.2)
PORTUGUESE TBL $2,480,886 $34,739,311 3.8 6.8
SOUTH AFRICAN TBL $1,943,585 $27,541,537 (7.5) (6.2)
A/O IMP COUNTRY TBL $2,162,321 $33,622,348 (11.7) 6.5 A new data service from Wines Vines Analytics
VARIETALS $899,539,997 $11,901,954,200 0.5 1.4
GENERIC $167,242,192 $2,204,913,053 5.0 6.5
CHARDONNAY $191,465,455 $2,539,849,399 0.7 0.9
CAB SAUVIGNON $189,928,337 $2,423,237,353 3.7 4.5
• Over 1,400 North American distributor profiles containing contact
BLENDED TABLE WINE $165,975,853 $2,064,554,171 4.0 5.1
BLENDED TABLE WINE RED $142,611,989 $1,731,621,406 3.8 4.9
info, corporate linkage and more.
SWEET RED BLENDS $12,030,042 $158,009,705 9.8 12.1
• Identify potential distributors based on the demographics of their
BLENDED TABLE WINE WHT $18,662,306 $257,065,877 (4.0) (3.6)
winery portfolio.
BLENDED TABLE WINE BLUSH $4,701,558 $75,863,949 72.6 60.8
PINOT GRIGIO/GRIS $92,033,608 $1,254,439,052 0.2 1.6 • View winery and distributor performance in a state based on
PINOT NOIR $80,321,877 $1,046,005,770 1.3 3.4 quarterly IRI off-premise sales summary data.
SAUVIGNON BLANC $64,720,638 $873,658,242 5.7 7.1
MERLOT $58,372,775 $785,343,035 (6.5) (5.7) • Advanced search and export capabilities via online user interface.
MOSCATO/MUSCAT TBL $51,699,362 $744,128,282 (0.9) 1.8
WHT ZINFANDEL $22,394,187 $313,067,114 (6.7) (5.7)
MALBEC $21,016,308 $279,002,030 (6.0) (4.1) Contact us for a free demo or to learn more
RIESLING $18,491,730 $262,105,265 (3.8) (3.1)
ZINFANDEL $18,030,916 $225,892,228 (3.5) (3.7) 707-940-3922 • DMS@winesandvines.com
ROSE TABLE $19,936,961 $302,278,384 68.7 58.5 www.winesandvines.com/marketing/dms
SYRAH/SHIRAZ $9,086,369 $122,615,066 (9.3) (9.7)
GLOBAL TBL BE 0-2.99 $58,821,502 $768,455,025 (2.3) (3.0)
GLOBAL TBL BE 3-5.99 $314,839,767 $4,178,993,253 (1.8) (0.4)
GLOBAL TBL BE 6-8.99 $113,421,336 $1,519,478,641 (5.4) (4.8)
GLOBAL TBL BE 9-11.99 $253,665,556 $3,302,986,650 1.4 3.2
GLOBAL TBL BE 12-14.99 $146,721,713 $1,947,716,274 4.7 5.5
GLOBAL TBL BE 15-19.99 $99,221,342 $1,300,460,414 9.4 9.7 DISTRIBUTOR MARKET SERVICE WINES VINES ANALYTICS
GLOBAL TBL BE >20 $78,690,180 $1,080,744,122 8.5 8.9
Source: Nielsen

WBM February 2018 151

technology & business

Security Leads Drive

to EMV, Mobile
Wallet Payments
Why your winery should accept
these new payment methods

Erin Kirschenmann

Erin Kirschenmann is senior

editor for Wine Business Monthly
and has been with the magazine
since 2012. In addition to
production responsibilities for
the monthly trade magazine, she
writes about wine industry trends,
including business, technology
and sales and marketing topics for
WBM, Wine Business Insider and
Winebusiness.com. She graduated
from Sonoma State University
with a bachelor’s degree in
communications with a journalism
emphasis. She can be reached at
erin@winebusiness.com.

THE WAY CONSUMERS PAY for goods continues to evolve as
EMV-enabled cards and mobile wallets move closer to the forefront.
Adoption of the two technologies is mixed, but both are said to provide
better security and ease of payment and are the next step forward in
protecting consumers and sellers. Any business should be aware of the new
technologies: how they work, why they work and whether they should be
adopted and implemented at your register.
Perhaps the greatest change in payment methods in the last five years has
been the spread of EMV-enabled, or more colloquially known as “chip,”
cards. It’s now the global standard on any new credit card issued by Visa,
MasterCard, American Express, Discover, China UnionPay, JCB and
others. U.S. Payments Forum estimates that 855 million chip cards have
been issued to U.S. consumers, about 85 percent of all debit cards, according
to CPI Card Group. Large retailers, like Target and Home Depot, were
some of the early adopters of EMV readers, a result of widespread security
breaches and identity theft at their point-of-sale terminals.
Credit card and data fraud are the drivers of this new technology. The
Nilson Report statistics show that global credit and debit card fraud gener-
ated losses of more than $22 billion in 2016. ACI Worldwide and Aite Group
report that one in three consumers have suffered credit card fraud within the
last five years.
What is EMV?
EMV cards are also known as “smart cards” because of the methods by
which they store their data: on integrated circuits that use radio-frequency
identification (RFID) technology to be read. EMV stands for Europay,
MasterCard and Visa—the three companies that created the technology.
Nearly 59 percent of all card-present transactions conducted globally
between July 2016 and June 2017 were EMV-enabled. EMVCo data reports
a 7.2 percent increase in the use of EMV cards in the United States last year,
for a total of 31.4 percent of transactions.
The largest difference between EMV cards and magnetic strip cards is the
data. On a magnetic strip, the data is stagnant and it never changes, which
allows any person who can access that sensitive card information free rein
to make as many purchases as he/she likes or sell the data to other interested
parties for cash.
With an EMV card, the chip creates a unique transaction code every time a
purchase is made. When the card is inserted (a process known as “dipping”)
into a terminal, it connects with the issuing bank, looking for card legiti-
macy and creating a unique transaction code. If, during this process, a thief
or hacker were able to skim the chip information from a transaction, say,
a swipe at the gas pump, the only information they would be able to steal
is the transaction number for that specific fill-up. The number cannot be
duplicated and used again to make another purchase.

152 February 2018 WBM

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Measures like this will not put an end to data breaches, but do deter poten- eCommerce
tial thieves and hackers, and experts believe that fraud rates will be reduced.
Marketing
Perhaps the most frequently heard complaint about this payment method
is that it takes longer to process than a magnetic strip. Processing times vary Accounting
greatly by merchant, equipment (such as the point-of-sale system) and/or Wholesale
any third-party payment processor. As the payment method becomes more
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widespread, it’s also expected that any lag time will decrease. Some providers,
like Square, have been able to bring processing times down to a noticeably
brief period—as quick as a magnetic strip.
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The majority of credit card issuers have moved toward this standard and
are putting pressure on merchants to accept EMV: a liability shift occurred
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technology platform would be held responsible and pay for the damages.
Security Leads Drive to EMV, Mobile Wallet Payments

NFC is a protocol that allows two electronic devices—in this case, a

smartphone and a payment terminal—to communicate with each other
when placed no more than 4 centimeters apart and process a transaction.
NFC is also used in social situations—sharing contacts, photos or files via
Bluetooth, for example. Apple released its NFC-backed Apple Pay system in
fall 2014; and though it is the most tried and used mobile wallet, adoption of
the method has been slow to take.
There are four main mobile wallets: Apple Pay, Android Pay, Samsung
Pay and Walmart Pay. Not one of the methods has, so far, seen much
usage, according to a survey conducted by PYMNTS.com and InfoScout, a
consumer research company. Through June 2017, Apple Pay had the highest
usage, 5.5 percent. Walmart Pay was next with 5.1 percent usage among those
who have used it for transactions, followed by Samsung Pay at 3.3 percent
and Android Pay at 1.8 percent.

NFC Payments and Mobile Wallets

As another measure to make transactions more secure, several providers
have come up with mobile wallets, which store credit card information on a
consumer’s phone. To make a payment, the user hovers his/her phone over
a payment terminal, chooses which credit/debit card to pay with and then
uses a thumbprint or PIN to authorize the transaction. The mobile wallet’s
prominence has risen, but perhaps not necessarily to the levels experts and
suppliers would have hoped for. Using near-field communication tech-
nology, providers like Google and Apple are attempting to make check-out
faster and more secure with their Android Pay and Apple Pay products.

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 The reasons people have not tried or used mobile wallets have less to do
with security than one might think. Often, according to the PYMNTS.com/
InfoScout study, consumers either forget they have the option or are happy
with their current payment methods, the store does not accept the payment
type, or the consumer wants to pay with cash.

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Google recently came out with a solution for online shopping as well:
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online accounts, i.e., PayPal and others. In May, Google announced the
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Winery Adoption FORTERA.CO

Across the United States, U.S. Payments Forum estimates that 50 to 52
percent of merchant locations have the ability to process EMV payments.
For this reason, the EMV cards issued to consumers also contain a magnetic
strip so that consumers will still be able to swipe their cards at merchants
that cannot process the technology; however, the added security EMV
provides will be lost.
According to the results of Wine Business Monthly’s 2018 Technology Your winery
Survey, the wine industry seems to be keeping up with other consumer goods
industries in terms of adoption. In a rather unexpected trend reversal, more
small wineries (those defined as producing fewer than 50,000 cases of wine)
report card.
Spend more time with your customers
have moved to accept EMV payments than large wineries. The difference
and less time in spreadsheets, with
is small, however; 52 percent of small wineries accept it, and 48 percent of
VinNOW’s easy reporting.
mid-sized and large wineries offer it.
That the adoption rate is so high is a great sign that the wine industry is
moving to more secure transaction methods to lessen the risk of loss via fraud. † Quickly see your wine club and sales activity
NFC payments, however, are not nearly as popular: 89 percent of winery † Automate frequently run reports
respondents said that they do not allow these types of payments. † Easily customize reports with filters
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When it comes to implementation, the good news is that a majority of point-
of-sale software providers are able to accommodate all the aforementioned Easy, in-depth reporting is just
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WBM February 2018 155

people For people news you can search or filter visit winebusiness.com/people

Wineries & Winemaking

Rhonda Carano, co-founder of
Ferrari-Carano Vineyards and
Winery alongside her late husband
Don Carano, assumed the position of
senior executive officer and manager
for the Ferrari-Carano family of
brands. Don Carano passed away on
October 3, 2017. Like Don Carano,
Rhonda Carano
Rhonda Carano is a second-genera-
tion Italian-American and a native of Reno, Nevada. Since Ferrari-Carano is
the shared vision of Don and Rhonda Carano, where they co-managed the
company since its inception in 1981, the transition to Rhonda’s new role
will be seamless.

Rombauer Vineyards appointed

Stephanie Jacobs, Dennis Cakebread, Julianne Laks, Bruce Cakebread Heather Rehnberg as director of
marketing. Reporting to chief oper-
ating officer Bob Knebel, Rehnberg
Cakebread Cellars, one of Napa Valley’s signature wineries, announced the
leads the Napa Valley family-owned
retirement of its long-time winemaker, Julianne Laks, and the promotion
and -operated winery’s marketing
to winemaker of Stephanie Jacobs, the winery’s assistant winemaker since
efforts throughout the U.S. and
2008. Laks began her career at Cakebread Cellars in 1986, serving as assis-
internationally. She is based at the
tant winemaker to Bruce Cakebread, now the winery’s president. At the
winery in St. Helena. Rehnberg
time, she was one of only seven employees. In 2002, Laks became just the
joins Rombauer with more than 10
third winemaker in Cakebread Cellars’ history, following in the footsteps of
years of wine industry experience,
co-founder Jack Cakebread and his son Bruce. Jacobs joined Cakebread
most recently as brand manager at
Cellars in 2004 after earning a degree in viticulture and enology from UC
Treasury Wine Estates where she Heather Rehnberg
Davis and working at Chalone Vineyard and Bogle Vineyards. She was
developed marketing programs for
named assistant winemaker in 2008 and Pinot Noir project leader in 2012
Beringer Vineyards’ luxury and commercial tiers in the U.S. and interna-
and has worked hand-in-glove with Laks for over a decade.
tionally. Prior to that she worked in brand marketing at Delicato Family
Vineyards. Rehnberg’s early career includes positions in wine production,
Ferrari-Carano Vineyards and Winery
direct-to-consumer sales and public relations.
hired winemaker Thomas Rivers
Brown to consult on its Cabernet
Steve Kistler and Kistler Vineyards’ managing partner, Bill Price,
Sauvignon program, bringing his flair
announced that Steve stepped down as CEO and director of winemaking in
for naturalistic wines to the iconic
December 2017, after 39 years of managing the iconic winery he founded
Sonoma County winery. Brown, whose
in 1978. He will move on to focus on winemaking at his family’s Occidental
name many associate with high-scoring
brand, crafting site-specific Pinot Noir with his daughters. Jason Kesner
bottlings for wineries such as Schrader
took his position, following a nine-year succession plan.
Cellars, Kinsella Estates and Charles
Krug, says he was particularly attracted
Family-owned grower and producer, Turn Key Wine Brands, welcomed
by the opportunity to work with
Thomas Rivers Brown Chance Hochschild as the new Northern California sales manager. Hoch-
Ferrari-Carano’s Alexander Valley and
schild joins Turn Key Wine Brands after several years working a variety roles
Knights Valley sites—in particular, the winery’s newest vineyard, Mayacama
in the wine industry, most recently at Turrentine Wine Brokerage as bulk
Ranch. Brown joined the team just before the 2017 harvest and is now
wine sales coordinator. A graduate of Cal Poly San Luis Obispo, where he
working with executive winemaker Sarah Quider on this new Cabernet
earned degrees in agribusiness and viticulture, Hochschild spent the early
winemaking program at FC’s Alexander Valley mountain winery.
part of his career gaining experience in various aspects of the industry,
starting out with direct-to-consumer sales at Opolo Vineyards in Paso
Robles and then working as a cellarhand, marketing coordinator and wine
club manager.

156 February 2018 WBM

people For people news you can search or filter visit winebusiness.com/people

Delicato Family Vineyards named Mark Merrion to executive vice presi-

dent of sales. Reporting to Chris Indelicato, president and CEO, Merrion
Industry Services & Suppliers
will oversee Delicato’s sales team, with the critical responsibility for driving
Phytelligence, an agricultural biotechnology company, hired Curt Granger
national, international and private label sales activity, to execute market
as vice president of global sales for the grapes segment. Granger will lead
and distribution strategies and to reach the company’s sales goals. Merrion
the company’s pursuit of new customers for rootstock, whole plant, genetic
joins Delicato with more than 25 years of industry experience on the
analysis and repository services in the grapes and wine agricultural market
supplier and distributor side. Most recently, he held the position of senior
to fuel additional growth. Granger will collaborate with Phytelligence’s
vice president–U.S. sales and trade marketing for Treasury Wine Estates,
customer service, accounting and marketing teams to ensure the company
accountable for delivering annual sales revenue and gross profit growth.
delivers high-quality plants and services to its customers. As the vice pres-
ident of global sales for grapes, Granger will provide grape growers with
Diane DiRoma was promoted from Ron Rubin Winery’s position of national
genetically confirmed, true-to-type grape rootstock and self-rooted plant
sales manager to vice president of sales and marketing. DiRoma joined the
material.
winery on December 20, 2011 and has made significant contributions to
the winery’s success. In December 2011, DiRoma took on the position of
Charles Daff joined Gaw Van Male’s estate planning team as an associate
national sales director, which has progressively evolved. Her current duties
attorney specializing in estate planning and trust administration. He is the
include: managing the national sales team; directing and developing three-
eighth member of that team. Daff is a graduate of the U.C. Irvine School
tier distribution, national key accounts, pricing, forecasting and brand
of Law, where he served as a judicial extern for the Honorable Scott C.
marketing as the company’s vice president of sales and marketing.
Clarkson and the Honorable Meredith Jury, and interned with the U.S.
Department of Justice. He served as lead article editor and senior editor
Concha y Toro appointed winemaker Marcelo Papa to the newly created
for the UC Irvine Law Review. Prior to joining Gaw Van Male, Daff was an
position of technical director. Papa’s responsibilities extend to full oversight
associate attorney specializing in estate planning, trust administration and
of technical direction for Concha y Toro’s entire portfolio of wines, with
probate administration at a boutique law firm in Orange County, California.
Papa joining the company’s senior management team.

M.S. Walker appointed Peter Ruggie as general manager of the compa-

ny’s growing wholesale distribution operation in New York and New Jersey,
reporting directly to Jeffrey Allen, who has been named chief operating
officer, New York and New Jersey. Ruggie brings 25 years of management
and operations experience, most recently serving as general manager of
Martin Scott Wines NY/NJ. Working directly with M.S. Walker’s manage-
ment team, Ruggie will support business plan execution and the division’s
operational activities as the company continues its significant growth in
these dynamic markets. He will develop and enhance key supplier relation-
ships, oversee the brand management department, as well as compliance
and logistics protocol.

Associations & Education

Legal Counsel to the Beverage Industry The Santa Barbara Vintners (SBV)—a
nonprofit 501 (c) 6 organization,
• Applications for ABC and TTB licenses which supports and promotes the
• Distribution agreements & direct shipping advice for all states
area as a world-class wine region—
• ABC and TTB Business Practice Counseling
• Accusation, Defense and Protest Hearing Representation announced their new chief executive
• Regulatory clearance of promotions, point-of-sale material, officer. After a national search, the
labels and advertising
SBV Board selected nonprofit expert
Alison Laslett to take the helm.
ATTORNEYS:
Laslett, who has 25 years of experi-
John Hinman Sara Mann
Lynne Carmichael Erin Kelleher ence in nonprofit leadership, started
Beth Aboulafia Alana Joyce her new position Nov. 29. She will
Rebecca Stamey-White John W. Edwards II
PAUL WELLMAN
Suzanne DeGalan Barbara Snider lead the SBV in strategic planning,
events promotion and community Alison Laslett
260 California Street, Suite 700, San Francisco CA 94111 outreach as governed by a nine-person Board of Directors. Prior to joining
Telephone 415.362.1215 Facsimile 415.362.1494 SBV, Laslett ran Represent Consulting, which offered leadership coaching
services to companies, nonprofits, boards, high-potential employees and
beveragelaw.com executives, for nearly three years. WBM

158 February 2018 WBM

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advertiser index
Thank you to all of our advertisers!
Company web address page Company web address page
ACIC Cork and Closures www.acicclosures.com 42 Gusmer Enterprises www.gusmerwine.com 127

Acrolon Technologies, Inc. www.acrolon.com 125 GW Kent, Inc. www.gwkent.com 59

Active Club Solutions www.activeclubsolutions.com 153 Hall & Bartley, Architecture-Planning www.hallandbartley.com 119

Admeo, Inc. www.admeo.us 119 Heffernan Insurance Brokers www.heffins.com 75

Affinity Creative Group www.affinitycreative.com 93 Hinman & Carmichael, LLP www.beveragelaw.com 158

AgCode, Inc. www.agcode.com 146 Infaco USA www.infaco-usa.com 134

Ager Tank & Equipment Co. www.agertank.com 124 Innovation + Quality www.winebusinessiq.com 110

AgroLiquid www.agroliquid.com 144 La Garde www.lagardeinox.com 13

Agrothermal Systems www.agrothermalsystems.com 137 Lafitte Cork & Capsule, Inc. www.lafitte-usa.com 103

AL&L Crop Solutions www.allcropsolutions.com 54 M A Silva USA www.masilva.com 91

All American Containers www.aacwine.com 154 Mechanics Bank www.mechanicsbank.com 129

American AgCredit www.agloan.com 29 Microworks Technologies, Inc. www.winesoftware.com 52

Amorim Cork America www.amorimca.com 9 Moss Adams, LLP www.mossadams.com 32

Anton Paar USA www.anton-paar.com 128 Oak Solutions/eVOAK www.oaksolutionsgroup.com 44

APCOR - Portuguese Cork Association www.realcork.org 15 Oenofrance USA, LLC www.oenofrance.com 69

Ardagh Group, Glass - North America www.ardaghgroup.com 95 O-I Packaging Solutions www.o-ipackagingsolutions.com 109

Arthur Engineering, Inc. www.arthurengineering.com 122 Oregon Winegrowers Association www.oregonwine.org 80

A-T Controls, Inc. www.a-tcontrols.com 68 OXBO International Corp. www.oxbocorp.com 140

ATAGO USA, Inc. www.atago.net 124 P&L Specialties www.pnlspecialties.com 48

ATPGroup www.atpgroup.com 115 Portocork America www.portocork.com 3

Baicor LC www.baicor.com 145 Prospero Equipment Corp. www.prosperoequipment.com 49

Bank of Stockton www.bankofstockton.com 31 Pulsair Systems, Inc. www.pulsair.com 117

Bank of the West Wine & Beverage Group www.bankofthewest.com 22 Rivercap USA www.rivercap.com 107

Barrel Builders, Inc. www.barrelbuilders.com 79 Saverglass, Inc. www.saverglass.com 2

Bastos, LLC www.bastosllc.com 53 Scott Laboratories, Inc. www.scottlab.com 130

Benchmark Consulting www.benchmarkhr.com 58 Seguin Moreau Napa Cooperage www.seguinmoreaunapa.com 114

Bergin Screen Printing and Etching www.berginglass.com 11 Sonoma County Winegrowers www.sonomawinegrape.org 57

Berlin Packaging www.berlinpackaging.com 99 Spokane Industries www.spokaneindustries.com 84

Bin to Bottle Winery www.bintobottle.com 40 St. Patrick’s of Texas www.stpats.com 50

BSG Wine www.bsgwine.com 65 StaVin, Inc. www.stavin.com 97

Bucher Vaslin North America www.bvnorthamerica.com 117 Sunridge Nurseries www.sunridgenurseries.com 143

Carlsen & Associates www.carlsenassociates.com 77 Terravant Wine Co. www.terravant.com 64

Castoro Bottling Co. www.castorobottling.com 122 Tom Beard Co www.tombeard.com 52

Central Coast Insights www.centralcoastinsights.com 18 Tonnellerie Ô www.tonnellerieo.com 47

C-Line Express www.c-linexp.com 54 TradePulse, a VIP Company www.tradepulse.com 85

Cloud Co. (Cloud-Sellers) www.cloudinc.com 62 TricorBraun WinePak www.tricorbraunwinepak.com 39

Cork Supply USA www.corksupply.com 51 UC Davis Wine Executive Program www.wineexecutiveprogram.com 159

Creative Oak www.creativeoak.com 101 Unitech Scientific www.unitechscientific.com 60

Criveller Group www.criveller.com 81 VA Filtration USA www.vafiltration.com 67

Custom Metalcraft www.custom-metalcraft.com 125 Valley Pipe & Supply www.valleypipe.com 64

Della Toffola USA, Ltd. www.dellatoffola.us 123 Valley Wine Warehouse www.valleywinewarehouse.com 48

Diam Closures USA www.g3enterprises.com 41 Verallia www.sgp-packaging.com 6

Dow Agrosciences www.dowagro.com 135 VinNOW by Update Software www.vinnow.com 155

Duarte Nursery, Inc. www.duartenursery.com 133 Vinventions USA www.vinventions.com 4

Eastern Winery Exposition www.easternwineryexposition.com 131 Waterloo Container Co. www.waterloocontainer.com 149

Enartis USA www.enartis.com 62 Watermark Labels www.watermarklabels.com 33

ETS Laboratories www.etslabs.com 113 Westbridge Agricultural Products www.westbridge.com 145

Euro-Machines, Inc. www.euromachinesusa.com 63 Western Square Industries, Inc. www.westernsquare.com 45

Fermentis www.fermentis.com 55 Winejobs.com www.winejobs.com 157

Fortera www.fortera.co 155 Wines & Vines Analytics / DMS www.winesandvines.com/marketing/dms 151

Free Flow Wines www.freeflowwines.com 78 Winesecrets www.winesecrets.com 118

G3 Enterprises www.g3enterprises.com 163 Winetech, LLC www.winetech.us 130

Ganau America, Inc. www.ganauamerica.com 164 WiVi Central Coast Conference & Tradeshow www.wivicentralcoast.com 19

Garton Tractor, Inc. www.gartontractor.com 146 Wonderful Nurseries www.wonderfulnurseries.com 141

Global Package, LLC www.globalpackage.net 69 World Cooperage www.worldcooperage.com 34

Gomberg, Fredrikson & Associates www.gfawine.com 151 XtraChêne www.xtrachene.fr 105

Guala Closures North America www.gualaclosures.com 43

160 February 2018 WBM

 winemaker of the month

Cara Morrison, Chardonnay winemaker, Sonoma-Cutrer Vineyards, Russian River Valley, CA

“I like to be up on the latest

innovations and equipment.
I look forward to Wine
Business Monthly’s annual
report on Cool Products at
the Unified Grape & Wine
Symposium every winter.
Even if I am able to attend
Unified, I cannot possibly
check out all the vendor
booths. The brief articles
on new innovations in
sanitation products or
equipment, barrels, bottling
line equipment, winemaking
supplies and so on keep
me informed. With that
information, I have contacted
vendors or consulted
fellow winemakers on new
innovations and planned trials
for the next harvest.”

NAME AND TITLE: Cara Morrison, Chardonnay winemaker Monterey County and Mendocino County, as well as travelled throughout

WINERY NAME AND LOCATION: Sonoma-Cutrer Vineyards, Windsor, Russian
River Valley, Sonoma County. Sonoma-Cutrer’s commitment to “Grand
Cru” methods of traditional Burgundian winemaking is paired with
Californian innovation to provide a perspective that is unique among
the world’s acclaimed wineries. Sonoma-Cutrer made Chardonnay only
for the first 20 years until we introduced the Pinot Noir. Our focus on
quality and consistency has kept us as one of the top Chardonnays in the
country. From the beginning, we created a food-friendly, fruit- and crisp,
acid-driven Chardonnay. We kept that style throughout the ’90s when oak
and butter were all the rage. We taste 20- to 25-year verticals, and the
Chardonnays are still fantastic as well as a consistent style with today. The
wine regions in Europe, but Sonoma County is where I was determined
to set my career and life. Fortunately, my husband is also a winemaker
and enjoys Sonoma County as well. I have been making wine at Sonoma-
Cutrer since 2005; I love the wines and still love the area.
WHAT HAS BEEN YOUR BIGGEST PROFESSIONAL CHALLENGE? I know most
winemakers tend to refer to working at small wineries, but I learned the
most about winemaking while working at a large winery. Before starting
at Sonoma-Cutrer, I made white wines at Fetzer for five years. I learned so
much about how to make wines from all over California under the fearless
direction of Dennis Martin. Since I couldn’t be in the vineyards all the
time, I could be surprised by the quality of grapes and had to improvise

winery breakdown is 97 percent Chardonnay and 3 percent Pinot Noir. winemaking on the spot. While at Sonoma-Cutrer, we take a more
hands-off winemaking approach. I learned when and how to help the
ANNUAL CASE PRODUCTION: 350,000 cases
wines through a difficult vintage. When we had the early rains in 2011, I
PLANTED ACRES: About 1,000 acres had the confidence and knowledge to make those wines in our consistent
CAREER BACKGROUND: My first harvest was in Dry Creek Valley, and I fell Sonoma-Cutrer quality and style.
in love with Sonoma County. I worked other harvests in Australia, Chile, VARIETALS THAT YOUR WINERY IS KNOWN FOR: Chardonnay and Pinot Noir.

WBM February 2018 161

jake lorenzo
Great Tasting
G O I N G I N T O T H E C I T Y for a wine tasting is a big investment. First
of all you need to consider the traffic. Fortunately, this detective has a very
flexible schedule and can avoid those times when you know traffic won’t be
moving. Still, there is almost no time to return to Sonoma without crawling
up Highway 37, waiting to make that turn home by the raceway.
Next there is the cost of lunch and/or dinner. Since a meal in the city is the
primary reason Jake Lorenzo attends wine tastings in the first place, this is
not a deal-breaker. It does require research, planning and patience, but those
are things any detective can do, and I am a very good detective.
Finally, there is selecting the right tasting. There are dozens and dozens of
wine tastings in San Francisco each year. You can generalize with the wines of
France, Spain or Italy, although this detective prefers specific regions, like the
Loire Valley, Alto Adige or Ribera del Duero. More esoteric places, like Greece,
Romania and Portugal, sponsor tastings in the hopes of finding distribution
for their wineries. The Southern Hemisphere loves San Francisco, bringing
wines from Argentina, Chile and Australia, as well as Uruguay, Brazil and
New Zealand. The Rhône Rangers ride into town annually; and if you like
Zin, you can always fight the crowds at the ZAP tasting.
For Jake Lorenzo, selecting the proper wine tasting starts by winnowing
the possibilities. This detective does not do consumer tastings. I know that
this could be considered elitist behavior, especially because as a wine writer,
I have access to many tastings the public does not, but fighting through the
crush of consumers trying to get to a table is not my idea of fun. Then instead
of getting their wine and backing away so others can move up for theirs,
consumers tend to try to impress the pourer by spouting something revealing
their level of wine knowledge, blocking the way for everyone else. So crowds
are a no no for Jake Lorenzo. That’s why I have stopped going
to ZAP tastings but continue attending Rhône Ranger tastings.
ZAP is always packed, and for whatever reason the Rangers
tasting is usually empty.
Put your tasting in a great venue or a good
I like tastings that have a focus. The focus can be a country, restaurant, and Jake Lorenzo will be there,
a region or a style, and I am always attracted to wines about
which I know very little. That’s why Jake Lorenzo started usually with Chuy in tow.
attending Portuguese tastings. I didn’t know much, but by
the time I finished that first tasting I felt like an expert. They
had the wines separated by region, with winemakers pouring the wines and
explaining how the climatic differences influenced the style for each region.
Plus, they served great Portuguese appetizers. Not only did I attend most
tastings showing off Portuguese wines, but I went to Portugal to learn more
about the wine and food.
When Tre Bicchieri held their annual tasting in San Francisco, a whole
group of us would head to the city every year. We’d have a great lunch at a
fine Italian restaurant and spend the day tasting the best wines of Italy. We
were under no pressure at all because most of the wines weren’t available in
the Bay Area, and we couldn’t afford to buy the ones that were. The annual
Greek wine tasting was another must. It started at 9 p.m. and went late into
the night. The wine and food were always good, and partying all night with a
room full of Greeks is a blast.
As much as this detective likes to cook and eat, and as much as I respect
the principles of the Slow Food movement, their wine tastings were terrible.
I never saw any focus to the wines being poured. They came from all over
Italy, were made in a myriad of styles and rarely impressed. The San Fran-
cisco International Wine Competition tasting was another disappointment,
162 February 2018 WBM
ILLUSTRATION BY BOB JOHNSON
one that we no longer attend. They poured wines from
everywhere, usually from wineries we’d never heard of.
Even though all of the wines were gold medal winners,
most of them weren’t anything special, and several were
seriously flawed. They also poured scotch, tequila, sake
and God knows what else.
Put your tasting in a great venue or a good restaurant,
and Jake Lorenzo will be there, usually with Chuy in tow. The Alto Adige
tasting atop the Marriott at Union Square not only served some of my
favorite wines, but did so with breath-taking views of the city and Bay. Two
small distributors used to put on a shared tasting in Jardiniere. The wines
were arranged in the same order as the printed booklet containing descrip-
tive information. You were free to roam the room and pour the wines for
yourself, but there were salespeople available to answer any questions you
might have.
Just a few weeks ago, Chuy and I attended a perfect little tasting. It was held
at Terra Gallery, a pretty nice space on Harrison at Second. There were two
dozen wineries, and all of them were Grand Crus Classes from Saint-Emilion.
Almost every winery was represented by the owner, and each showcased their
new 2015 vintage, along with an older bottle that they had selected. The small,
50-page tasting booklet (half of which was for tasting notes) concisely summed
up the association and the region, as well as the vintage. Information on each
winery included an historical summary of the property and details of the
vineyards and winemaking, along with the name of the consulting enologist.
For each wine being poured there were harvest dates, varietal make-up, tanks
used, oak-aging regimens and total bottles produced.
By the time we finished tasting the wines, we were convinced that 2015 was
a very great vintage. We had a very clear idea of what Saint-Emilion tasted
like, along with a good notion of the variation provided by the different
terroirs and winemaking schemes. Unctuous full-bodied wines with soft
tannins, like Clos des Jacobins, Chateau Dassault and Chateau Grand Pontet,
filled the palate. Chateau La Tour Figeac and Chateau Le Prieure showed a
bit more structure and tannic backbone. Others brimmed with tannin that
overwhelmed the fruit but promised to come around with aging as evidenced
by the older vintages they poured alongside the 2015.
We tasted some great wines in a comfortable space that was not crowded
with attendees. We spoke directly to owners. We learned a lot about Saint-
Emilion and the nuances of their wines. We went home with a great little
book detailing the wines and wineries, along with our notes about which
ones we liked best. We had a delightful two-hour lunch at a little French
bistro just a few blocks away so we could walk to the tasting.
All in all, a great day and one that allowed us to crawl our way up Highway
37 without cursing the other drivers too loudly. After all, most of them were
coming home from work. WBM
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