Wine Industry News Round-Up for the Week Ending June 14, 2024

Amid rebranding efforts like E & J Gallo's shift to high-quality wines, regulatory collaborations to prevent underage alcohol exposure, and changing grape values in Napa Valley, the US wine industry faces environmental challenges and innovation, exemplified by the reopening of Signorello Estate with fireproof features and luxury experiences.

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The US wine industry is grappling with a restricted selection of grape varieties due to stringent USDA and TTB approval processes, which some growers argue stifle creativity and climate adaptability. Meanwhile, E & J Gallo has rebranded to Gallo, reflecting its shift towards high-quality wines and spirits, underscored by the sale of its mass-produced wineries. In a bid to curb underage exposure to alcohol ads, leading social media platforms are collaborating with beverage companies under the International Alliance for Responsible Drinking (IARD) to implement age-verification and transparency measures. Additionally, WeightWatchers has endorsed Traces, a lower-calorie wine brand, catering to health-conscious consumers. Amidst these trends, Napa Valley mourns the loss of winemaking icon Warren Winiarski while facing environmental challenges from the Clover Flat Landfill. Despite these issues, Napa continues to innovate, with Signorello Estate reopening after wildfire destruction, showcasing fireproof features and luxury experiences. The region is also witnessing a shift in grape value, with Cabernet Franc and Riesling gaining prominence, driven by changing consumer preferences and climate impacts.

Industry Trends  

America’s Great Grape Variety Shortage | Wine-Searcher News & Features

The US has a very limited selection of grapes that growers can legally plant and wineries can use on their labels. This is because the USDA and TTB have a slow and expensive approval process to avoid spreading diseases to existing vineyards. However, some growers believe this stifles creativity and makes it hard to adapt to climate change. There are success stories of people who have gotten new grape varieties approved, but it takes a lot of time and effort. In the future, with climate change and consumer interest in new things, there may be more demand for a wider variety of grapes.

 Wine and Spirit Powerhouse E & J Gallo is now Just GALLO: What’s the Backstory?

E & J Gallo, a large California winery that also makes spirits, has recently changed its name to Gallo. This rebranding reflects a long-term strategy to be seen as a producer of high-quality wines and spirits, not just inexpensive options. The company has been acquiring many high-end wineries and winemakers over the years, and even helped some smaller producers focus on making unique wines. They recently sold off some of their larger, mass-produced wineries in Washington state to concentrate on this new brand image.

 Drinks companies unite with digital leaders over alcohol marketing

Social media platforms and alcoholic beverage companies are working together to improve online safeguards to prevent underage exposure to alcohol advertising. This partnership is led by the International Alliance for Responsible Drinking (IARD) and includes companies like Google, Meta, Pinterest, Snap, TikTok, and X.

The goal is to ensure that alcohol ads are only seen by adults who choose to engage with them. The digital platforms will implement age-verification methods and provide transparency reports on their safeguards. The beverage companies will create positive experiences for adults and promote responsible consumption.

This initiative is expected to significantly reduce underage exposure to alcohol advertising online.

Consumer Trends  

WeightWatchers endorses wine brand

WeightWatchers partnered with Traces, a wine brand known for its lower calorie and lower alcohol content, to be the first WeightWatchers endorsed wine in the UK. A glass of Traces wine is three points on the WeightWatchers program and the company says this caters to their members who enjoy wine but are still looking to manage their weight. This isn’t the first time WeightWatchers endorsed a wine brand, but it emphasizes that alcohol contains empty calories and can increase appetite.

News from Napa Valley  

Napa Winemaking Icon Warren Winiarski Dies at 95

Warren Winiarski, a Napa Valley wine legend who died at 95, was a pioneer who helped shape the region’s reputation for world-class Cabernet Sauvignon. He founded Stag’s Leap Wine Cellars, whose 1973 Cabernet Sauvignon triumphed over top Bordeaux wines in the 1976 “Judgment of Paris” tasting. Winiarski was also instrumental in protecting Napa Valley farmland and defining labeling standards for Napa wines. He left a legacy of mentorship and philanthropy, donating to environmental causes and his alma mater.

Napa Valley has lush vineyards and wineries – and a pollution problem | California | The Guardian

Napa Valley’s idyllic image of vineyards and wineries may be hiding a dark secret. The Clover Flat Landfill (CFL) located nearby has been allegedly contaminating the Napa River for decades with toxins and heavy metals. This threatens the delicate ecosystem of the river and raises concerns about the quality of irrigation water and the world-famous Napa Valley wines.

There have been resident complaints, employee reports of improper waste handling, and even government investigations into the landfill. Despite this, the powerful wine industry has been silent on the issue. The future of Napa Valley hinges on whether the weight of evidence will compel them to take action and ensure a sustainable future for the region.

Wildfires destroyed this Napa winery. It’s finally reopening — with $175 tastings

Signorello Estate winery was destroyed by a wildfire in 2017. After years of rebuilding, the winery is reopening with a new state-of-the-art facility and a focus on producing high-quality wines. The new Napa Valley winery boasts fireproof features, increased production capacity, and luxurious visitor experiences that include a $175 tasting fee. The winery also implemented sustainable practices in the vineyards. Despite the challenges, Signorello Jr. is optimistic about the future of the winery.

The changing tide of Napa grapes

Napa Valley, California’s most famous wine region, is seeing a shift in the grapes that are most valuable. Traditionally, Cabernet Sauvignon and Chardonnay have been the kings and queens, but recently Cabernet Franc and Riesling are fetching higher prices per ton. While Cabernet Franc acreage is slowly increasing, Riesling plantings are very low. The reasons for the change are complex: consumer interest in exploring new flavors, the impact of climate change on grape ripening, and the potential of Cabernet Franc to create wines reminiscent of classic Napa Cabernet Sauvignon. It remains to be seen if this is a long-term trend, but it is causing some growers to rethink what they plant.

Viticulture & Sustainability   

Weather posing challenges for English vineyards

English vineyards are facing challenges due to unpredictable weather patterns. A recent mild winter followed by an unexpected frost damaged crops in some areas. This highlights the difficulty of growing grapes in a cool climate. However, there are also some upsides. Warmer temperatures allow for ripening grapes that were previously difficult to grow, which could lead to a wider variety of English wines. Despite challenges, many wineries are adapting their practices and using technology to ensure quality harvests.

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