Team C&J
Ram’s Gate Winery, a renowned producer of high-end Chardonnay and Pinot Noir in Sonoma, has been acquired by O’Neill Vintners & Distillers. This marks a strategic shift for O’Neill, traditionally known for budget-friendly wines, as they venture into the luxury market. Meanwhile, Australian wine exports to China surged following the removal of tariffs, positioning Australia as a leading supplier once again. In France, Burgundy’s Côte-d’Or vineyards saw significant price increases due to high demand for prestigious wines, contrasting with declines in Bordeaux and the Rhône Valley. Additionally, the New York Wine & Grape Foundation welcomed 19 new vineyards into its Sustainable Winegrowing Program, reflecting a broader industry trend toward sustainability. In Argentina, wineries in Mendoza are addressing social issues and implementing sustainable practices amidst economic challenges. Despite these positive developments, the industry faces challenges such as Vintage Wine Estates’ financial troubles and Laurent-Perrier’s declining sales volumes in the Champagne market. Finally, a New Zealand winegrower faced legal repercussions for smuggling vine cuttings, highlighting ongoing regulatory and biosecurity issues in viticulture.
Wine Country’s popular ‘gateway’ winery has sold
Ram’s Gate Winery, a popular winery located in Sonoma that produces high-end Chardonnay and Pinot Noir, has been sold to beverage conglomerate O’Neill Vintners & Distillers, the company’s founder originally being one of Ram’s Gate’s founders himself. The acquisition is a surprising one for O’Neill Vintners who typically focus on budget-friendly wines, but the founder has a personal connection to Ram’s Gate and sees it as an opportunity to expand into the luxury market. Ram’s Gate will keep its current winemaking team and likely not see any major changes, but it does mark the beginning of a new luxury wine division for O’Neill Vintners. This winery acquisition is part of a larger trend in the wine industry where companies are shifting their focus towards high-end wines.
Australian wine pours back into China as tariff-free shipments surge to over US$10 million in April
Australian wine exports to China are booming after China lifted tariffs in March. Shipments surged from $126,000 to over $10 million in April, making Australia the third-largest wine supplier to China. This is expected to continue as relations between the two countries improve. Australia was previously the leading supplier of wine to China, and analysts expect producers to jump back into the market quickly. Relaxation of import curbs on other Australian products, like lobsters, is also anticipated.
Côte-d’Or vineyard prices soared in 2023 – Decanter
French vineyard prices were mixed in 2023. Burgundy’s Côte-d’Or region saw significant growth, with average prices reaching nearly €1 million per hectare. This surge is attributed to the rising demand for prestigious white and red wines. In contrast, Bordeaux and the Rhône Valley experienced a decline, likely due to a slump in the red wine market. Nationwide, the average vineyard price with a protected designation of origin increased slightly, but the number of transactions dropped. This suggests a market with strong regional variations and potential buying opportunities for some investors.
Wine Comes Roaring Back | Wine-Searcher News & Features
Fears of a wine industry decline may be overblown. While sales dipped after the pandemic boom, new data shows Millennials are drinking more wine, especially pricier bottles, than Baby Boomers. Wineries are adapting to attract younger consumers by offering sustainable practices and diverse staff and removing unnecessary features like foil caps. Sales are strong across wineries of all sizes, with growth ranging from 5% to 300%. Retailers are also seeing a return to pre-pandemic buying patterns. The future looks optimistic, though some challenges, like competition from other beverages and overproduction in certain regions, remain.
New York Sustainable Winegrowing Program Welcomes Nineteen New Certified Vineyards
The New York Wine & Grape Foundation welcomed 19 new vineyards into their Sustainable Winegrowing Program. This voluntary program certifies vineyards that meet high sustainability standards across various aspects like water conservation and social responsibility. Certification allows vineyards to market themselves and their grapes as sustainable, and wines made with at least 85% certified grapes can display a special Trustmark. The program aims to ensure a sustainable future for New York’s wine industry and meet growing consumer demand for sustainable practices.
A green revolution in Argentina
Argentina’s economic woes are causing major problems for its citizens. With unemployment hovering around 57% and inflation reaching nearly 300%, many Argentinians are struggling. This harsh reality has fueled social unrest, with nationwide strikes protesting austerity measures. In the midst of this crisis, a glimmer of hope shines from Argentina’s wine country, Mendoza. Wineries in Mendoza, responsible for 70% of the country’s grapes, have embarked on a remarkable mission to create positive change by taking social issues head-on by providing workers with meals, childcare, and educational opportunities. They’re also building community centers and sports facilities, fostering a stronger social fabric.
Understanding the threat of climate change, these wineries are implementing sustainable practices that include land management strategies, using technology to optimize water usage, and even employing lighter-weight bottles to reduce the wine’s carbon footprint.
https://drinks-intel.com/news/vintage-wine-estates-at-risk-of-collapse/
Vintage Wine Estates (VWE), a publicly traded wine company in the US, is facing a financial crisis and may file for bankruptcy. Their sales have significantly dropped in the recent quarter and year. The company has been taking measures to improve its situation, including selling assets and restructuring its business, but it acknowledges it might not be able to repay its debts. This situation is caused by a combination of factors, including lower demand for their wine and excess supply of wine in the market.
Laurent-Perrier volumes decline faster than the Champagne average
Laurent-Perrier experienced a drop in sales volume (12.4%) in 2023-2024, exceeding the average decline in the Champagne market (11.8%). Despite this, the company managed to increase sales value (0.5%) by raising prices. They attribute this success to brand strength and continued investment. This follows a trend of post-pandemic market normalization, with the Champagne industry returning to pre-Covid shipment levels. Overall, Laurent-Perrier remains optimistic about the future despite the current economic climate.
New Zealand winegrower sentenced for smuggling Aussie cuttings
James Millton, a well-respected organic winegrower in New Zealand, smuggled vine cuttings from Australia in his suitcase and planted them without following proper biosecurity protocols. Interestingly, he argued it was a sentimental gesture, but not surprisingly, the court disagreed. The cuttings posed a risk of introducing diseases to New Zealand’s vineyards. Milton received a fine and community detention for his actions. We don’t think Milton will be doing that again.
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