Team C&J
In the wine industry, California faces an oversupply challenge, prompting calls for vineyard reduction, while Rombauer Vineyards aims to take its renowned Chardonnay global under E&J Gallo’s stewardship. The sector is also navigating shifts in consumer preferences, particularly among Millennials and Gen Z, towards moderation, health, and sustainability, posing both challenges and opportunities for adaptation and growth. Optimism for a U.S. sales rebound in 2024 contrasts with concerns over younger generations’ declining wine consumption due to smartphones, social media, and health-conscious choices. Meanwhile, Texas Hill Country Wineries’ accolades boost its national stature. Legal and classification updates see Austria introducing a vineyard classification system, and the invasive spotted lanternfly threatens U.S. viticulture, highlighting the need for preventive measures. Sustainability is increasingly central to the industry, with practices like regenerative agriculture emerging as key strategies. These developments reflect the wine industry’s resilience and adaptability amidst evolving consumer preferences, environmental challenges, and the global marketplace.
Why America’s best-selling ‘luxury’ Chardonnay is going global – The Drinks Business
Under new ownership by E&J Gallo, Rombauer Vineyards, known for America’s best-selling ‘luxury’ Chardonnay, is set to broaden its international reach. Acquired in August of the previous year, Rombauer aims to transform its celebrated Carneros Chardonnay into a global fine wine brand, a vision supported by Edouard Baijot MW, director of Gallo’s luxury division. Despite the domestic demand consuming 99% of its 300,000 case production, strategies are in place to expand distribution into Europe and further into the UK, targeting growth beyond the US where it has been predominantly popular. This expansion responds to international interest encountered by visitors to Napa Valley and is facilitated by plans to increase production through the acquisition of high-quality fruit. Gallo aims to position Rombauer as an attainable luxury, emphasizing its signature Carneros Chardonnay, which epitomizes the rich, buttery style that has become synonymous with high-quality California Chardonnay. This move by E&J Gallo signifies an effort to not only uphold but elevate Rombauer’s legacy on a global scale, maintaining its culture while introducing its distinguished Chardonnay to wine enthusiasts worldwide.
Can the wine industry adapt to the ‘lifestyle generations’? – Decanter
The wine industry is facing challenges adapting to the preferences of ‘lifestyle generations’ like Millennials and Gen Z, who are driving a cultural shift towards moderation, health-consciousness, and a focus on well-being, influenced significantly by social media and an abundance of information on health risks associated with alcohol. These generations are drinking less due to health concerns, financial insecurity, and a changing social landscape that values quality over quantity, authenticity, and sustainability. Despite the global decrease in alcohol consumption, there is an opportunity for the wine industry to innovate and remain relevant by aligning with younger consumers’ values, such as environmental responsibility, diversity, and the desire for authentic, memorable experiences. Embracing these shifts could help the industry attract new, younger consumers by promoting wine as part of a balanced, aspirational lifestyle and by exploring new formats, flavors, and sustainable practices that resonate with these demographics.
Turnaround predicted for wine sales in the US in 2024 – The Drinks Business
Chris Indelicato, president of Delicato Family Wines, expressed optimism for the U.S. wine market’s future at ProWein, predicting a turnaround in sales by mid-2024 followed by a gradual recovery into 2025. Despite recent decreases in wine sales volumes attributed to consumers working through pandemic-acquired stocks rather than a fundamental decline in wine consumption, Indelicato remains positive. He cites still-strong consumer interest, the exceptional quality of the 2023 vintage, which promises to boost industry enthusiasm, and strategic growth areas for his company, including the “better-for-you” wine category and popular varieties like Prosecco and New Zealand Sauvignon Blanc. Additionally, Delicato plans to expand its portfolio through acquisitions, focusing on brands in the over $20 retail segment and leveraging market consolidation trends. Indelicato’s confidence is further buoyed by the resilience and strategic agility afforded by family ownership, ensuring sustained investment in quality and marketing despite cyclical downturns.
The Smartphone’s Role in Wine’s Decline | Wine-Searcher News & Features
The decline in wine consumption among younger generations may be significantly influenced by the rise of smartphones and the pervasive culture of social media documentation, fostering a reluctance to engage in behaviors that might be perceived negatively online. The constant documentation of social activities has made young people cautious of being seen in a state of inebriation, fearing social shaming and negative impacts on job prospects or relationships due to undesirable social media posts. Moreover, a shift towards health consciousness and the growing popularity of cannabis over alcohol, perceived as a healthier relaxation alternative without the caloric intake or hangovers associated with alcohol, is drawing younger demographics away from wine. Additionally, the wine industry faces challenges from a neo-Prohibitionist movement and changing dietary guidelines that suggest even lower recommended alcohol consumption, exacerbating the decline. Despite these challenges, there is a path forward through emphasizing wine’s cultural, culinary, and agricultural ties, focusing on relaxation and social enjoyment, and exploring no and low-alcohol product innovations to meet the evolving preferences of younger consumers.
Texas Hill Country Wineries Continue to Win Big at Wine Competitions
Texas Hill Country Wineries (THCW) have proudly exhibited their winemaking excellence by securing numerous medals across prestigious wine competitions in 2024. At the TEXSOM International Wine Awards and San Francisco Chronicle Wine Competition, THCW members earned 46 and 142 medals, respectively, with overall wins totaling 274 awards at the Rodeo Uncorked!® International Wine Competition and 189 at the San Antonio Stock Show & Rodeo International Wine Competition. Highlight achievements include six platinum medals from TEXSOM and several top honors like the Best of Herd Texas Winery for Pedernales Cellars and Best of Show Texas White Wine for Wedding Oak’s 2022 Roussanne. This series of accolades not only underscores the exceptional quality and diversity of wines from the Texas Hill Country but also reinforces the region’s stature within the national wine industry. January Wiese, Executive Director of THCW, expressed pride in their member wineries’ continued success, which she believes showcases the exceptional caliber of Texas Hill Country’s winemaking.
Austria launches new classification of top vineyards – The Real Review
Austria has recently introduced a new classification system for its top vineyards, an initiative led by Traditionsweingüter Österreich that categorizes vineyards based on land characteristics across various wine regions. The current classification features one level, Erste Lage (First Growth), with considerations for elevating select vineyards to Grand Cru status in the future. This system, rooted in the DAC appellation system encompassing 18 zones, aims to enhance the recognition of traditional Austrian estates akin to France’s First Growth. A tasting event in Sydney by Markus Huber showcased the quality and potential of this classification through high-rated rieslings and grüner veltliners from different regions and producers. Notable points include the emphasis on organic viticulture, with Austria boasting the highest percentage of organic vineyards globally, and the distinctive handling of riesling and grüner veltliner regarding botrytis and sweetness levels to maintain purity and balance. Work on this classification began in 2019 and was legislated in 2023, marking a significant development in Austrian wine’s global stature.
Spotted Lanternfly now present in 18 states
The invasive spotted lanternfly, originating from China and first identified in Pennsylvania in 2014, has expanded its presence to 18 states in the U.S., posing a significant threat to California’s winegrapes, orchards, and various other crops. Despite no live adult sightings in California, dead adults and egg masses have been intercepted at state borders and on aircraft since 2019, highlighting the potential risk of establishment. Preferred habitats include agricultural, wooded, and urban areas, with grapevines, Trees of Heaven, black walnut, and maple trees among their favored hosts. The westward spread heightens concerns in California, Washington, and Oregon, deemed highly suitable for an infestation that could lead to reduced crop yields, vine deaths, increased production costs, and trade disruptions. The state has implemented quarantine measures and proactively educates on identification and containment strategies to mitigate the threat. The spotted lanternfly’s broad host range and ability to lay eggs on inert objects further amplify its dispersal potential, emphasizing the importance of vigilance among growers and the public to prevent its establishment in new regions.
How Do Wineries Thrive by Going Sustainable?
Wineries thrive by embracing sustainability, aligning closely with consumer demands for environmentally friendly, socially responsible, and economically viable products. The shift toward sustainability, crucial in an industry heavily reliant on natural resources, includes adopting sustainable viticulture practices like regenerative agriculture, cover crops, and soil health improvement. Additionally, breeding hybrid grape varieties enhances disease resistance, drought tolerance, and adaptability, addressing climate change challenges. Carbon capture through grapevines and biochar application further mitigates climate impact, showcasing innovative approaches to sustainability. Supporting local communities and ensuring employee well-being also strengthen the industry’s social sustainability. The 3rd U.S. Sustainable Winegrowing Summit represents a pivotal gathering for discussing sustainable practices, exploring new technologies, and addressing climate change impacts, highlighting the wine industry’s adaptation to sustainability as not just a trend but a fundamental operational shift, vital for its success and resonance with modern consumers.
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