Team C&J
Horse Heaven Wine Company has acquired Ste. Michelle Wine Estates’ Prosser facility in Washington state enables the expansion of its custom crush operations, bulk wine business, and McKinley Springs wines production. This acquisition is part of a broader trend where the US wine industry is launching new marketing campaigns to combat declining sales and attract younger consumers, with initiatives from the Wine Institute and wine writer Karen MacNeil leading the charge. Meanwhile, the Wagner Family of Wines is finding success with their Bonanza Cabernet Sauvignon, indicating a market for good quality, affordable wines. The Wine Market Council is also working to better understand and engage younger and multicultural consumers. However, challenges remain, as seen with Vintage Wine Estates’ potential bankruptcy and the adverse effects of severe weather on French vineyards. Despite these difficulties, Connecticut’s wine industry is growing, and Oregon wineries are taking legal action against PacifiCorp for smoke damage caused by wildfires.
Horse Heaven Wine Company buys Ste. Michelle Prosser facility
Washington state’s Horse Heaven Wine Company has acquired a Prosser facility from Ste. Michelle Wine Estates. The new space will allow HHWC to expand its custom crush operations, bulk wine business, and production of their McKinley Springs wines. Ste. Michelle will continue to operate their 14 Hands tasting room and lease office space at the facility.
US Wine Industry Fights Back With New Marketing Campaigns
The US wine industry is facing challenges from declining sales and a younger generation that is less interested in drinking wine. To address this, two separate groups are launching marketing campaigns. The Wine Institute is targeting millennials and Gen Z with a campaign that will emphasize the fun and social aspects of drinking wine, and that will address the misconception that wine is unhealthy. Karen MacNeil, a wine writer, is launching a campaign called “Come Over October” to encourage people to socialize over wine.
With Bonanza — a.k.a ‘Baby Caymus’ — the Wagner Family Strikes Gold Again | VinePair
The US wine industry is facing a slump with declining sales and a lack of interest from younger consumers. However, Wagner Family of Wines is experiencing exceptional success with their Bonanza Cabernet Sauvignon. This $22 California Cabernet is selling very well and is credited with being approachable and easy to drink. Unlike most wines in this price range, Bonanza is non-vintage and sources grapes from Lodi instead of the more expensive Napa Valley. The wine’s success challenges the idea that terroir and vintage are crucial factors for consumers and suggests there might be a larger market for good quality, but affordable wines. Some analysts believe the industry downturn is temporary and caused by Covid stockpiling, while others worry about a long-term decline. Regardless, Bonanza’s performance shows there’s still a market for good value wines.
Wine Market Council Launches New Study to Better Engage Younger and Multicultural Consumers
The Wine Market Council is launching a new study with EthniFacts to understand younger and multicultural consumers of wine better. This research aims to help the wine industry be more inclusive and appealing to these demographics. The study will involve reviewing existing research, conducting in-person interviews with consumers, and surveying a representative sample of US consumers. By the end of 2024, the Wine Market Council will receive insights on how young and multicultural consumers perceive wine and what aspects of wine resonate with them. This will help the wine industry adjust its approach to better connect with these growing consumer groups.
Vintage Wine Estates at risk of collapse – Global Drinks Intel
Vintage Wine Estates, a publicly traded American winery, is facing a potential bankruptcy despite efforts to improve its financial health. Sales are down significantly, and the company is struggling with debt. They’ve been selling off assets and restructuring their business to focus on higher-end wines, but a grape surplus and decreased consumer demand are making things worse. The company itself acknowledges the possibility of filing for bankruptcy.
French winegrowers struggle with weather
French winemakers are facing a difficult year due to severe weather conditions. Frost and hailstorms have devastated vineyards in regions like Cahors and Jura, with some areas potentially losing up to 80% of their harvest. This comes on top of challenges from previous years, raising concerns about the long-term viability of some vineyards. Meanwhile, heavy rain in Burgundy and Beaujolais has increased the risk of mildew, a fungal disease that also caused problems in 2023. While some growers worry about the immediate impact of the wet weather, others see it as a way to replenish water reserves for the coming summer months. The Champagne region has also been affected by frost, but not as severely as other areas.
Connecticut is producing more grapes and wine, but there are environmental challenges
Despite challenges from unpredictable weather patterns like frost and excessive rain, Connecticut’s wine industry is experiencing significant growth. Grape acreage and total yield have increased substantially in recent years compared to pre-pandemic times. This growth is attributed to a rise in new farmers and the state’s efforts to promote agritourism through initiatives like the “2024 Passport to CT Wine Country.” However, a new permit allowing wineries to purchase grapes instead of growing them poses a concern for established farms that invest heavily in both grape cultivation and winemaking.
Oregon wineries sue PacifiCorp for US$100 million for smoke damage
Dozens of Oregon wineries are suing energy company PacifiCorp for $100 million over smoke taint in their 2020 grape harvest. The lawsuit claims that PacifiCorp’s decision not to shut off power during strong winds contributed to wildfires that damaged the grapes. The wineries lost revenue and had to write off much of the 2020 vintage. PacifiCorp has already paid settlements in other fire-related lawsuits and says it prioritizes safety, but the wineries argue the company failed to act on warnings from fire officials.
Wildfire Mitigation is a Year-Round Task for Napa and Sonoma Wineries
California wildfires have caused significant damage to Napa and Sonoma wineries in the past. As a result, winery owners are taking fire preparedness much more seriously. This involves creating defensible space around buildings by clearing vegetation and using fire-resistant materials. Vineyards themselves can also act as firebreaks if maintained properly. Wineries are also stockpiling water and training staff to use firefighting equipment in case a wildfire threatens their property. There’s even discussion about using controlled burns as a preventative measure.
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