Team C&J
Here’s what happened in the last week in wine. Rack & Riddle Wine Services has expanded its sparkling wine production capacity by acquiring Weibel Family Winery in Lodi, becoming the largest premium sparkling wine producer in the U.S. with an annual capacity of 3.5 million cases. Ste. Michelle Wine Estates informed its grape growers of a 40% decrease in grape needs over the next five years, aiming to align supply with demand and focus on premium wine production in Washington. Sonoma County saw a 10% increase in wine prices for direct shipments to consumers, while nationally, small-scale producers experienced a 7% drop in average bottle price. The 80-20 program has returned to help vintners cope with market uncertainties and larger grape crops in Sonoma and Napa Valley. Drizly’s 2023 Consumer Report predicts a rise in outdoor parties and larger beverage orders, with white wines preferred during summer months and red wines like Barbera gaining popularity. Penfolds is named the fastest-growing wine and Champagne brand, while Beaujolais vineyards face a crisis due to an insect-borne disease affecting over 80% of the region’s villages.
Sonoma County Winery makes another big move into bubbly
Rack & Riddle Wine Services has doubled its capacity to produce sparkling wine due to increased demand. The company acquired Weibel Family Winery in Lodi, making it the largest custom producer of premium sparkling wine in the U.S. With this acquisition, it can now produce 3.5 million cases of sparkling wine annually. The co-founders attribute their growth to the rising demand for quality sparkling wine in the United States. Additionally, Rack & Riddle inked a lease to operate a facility in Geyserville, where the Sofia canned sparkling wine brand is made.
Ste. Michelle informs growers of 40% decrease in grape need – Northwest Wine Report
Ste. Michelle Wine Estates (SMWE), the largest winery in the Northwest, informed its grape growers of a 40% decrease in grape needs over the next five years. This decision aims to align grape supply with demand and focus on premium wine production from Washington. The reduction will impact approximately 10,000 acres of grape production, posing challenges for growers and the industry. The change will also affect marketing, research, and education efforts funded by grape and wine sales. Collaboration and resiliency will be essential for the Washington wine industry to adapt to these changes and thrive in the future.
Sonoma County wines shipped directly to consumers get sizable price increases but sell fewer cases.
According to a recent report, Sonoma County vintners experienced one of the largest proportional increases in wine prices for direct shipments to consumers in the first half of the year. The average price of a bottle of Sonoma County wine increased by 10%, ranking second among other regions. Wines from Napa and Sonoma counties comprised over half of the direct shipments and two-thirds of the total value. Nationally, small-scale producers saw a 7% drop in average bottle price. Despite a decline in direct-to-consumer sales volume nationwide, the wine business is gradually returning to relative normalcy post-pandemic. California remained the top destination for direct-shipped wine, though volume decreased.
Beyond Custom Crush: Risk Sharing Program Gives Growers a Tool for Better Returns
The 80-20 program, initiated during the Great Recession, has returned to help Sonoma and Napa Valley vintners cope with market uncertainties and larger grape crops. In 2013, the program began when Renteria Vineyard Management harvested a second crop, sold the resulting wine on the bulk market, and shared the proceeds with employees and the Napa Valley Farmworker Foundation. The program allows growers to have their excess grapes custom crushed by Bin to Bottle, which handles production costs. Once the wine is sold, the profits are split 80% for the grower and 20% for Bin to Bottle. After several years of hibernation, the program has returned in 2023 as the wine market faces headwinds and an expected average or better crop.
A Deep Dive Into Summer 2023 Purchasing Trends – BevAlc Insights
Summer impacts consumer buying habits, with an increase in outdoor parties and larger beverage orders. Drizly’s 2023 Consumer Report predicts a continuation of this trend, with backyard barbecue wine pairings being at the top of consumer lists when they shop for wine. White wines are preferred during warmer months, with rosé sales declining. Red wines, particularly Barbera, have seen increased popularity. Aperol Spritz and other spritz-style drinks are trending, with sales rising and new RTD products like Delola gaining traction. Light lagers are now outselling hard seltzers on Drizly, marking a shift from previous years. As more alternative options become available, hard seltzer sales have declined.
Penfolds named the fastest-growing wine and Champagne brand – The Shout.
Penfolds is the fastest-growing wine and Champagne brand, with its brand value increasing by 48 percent to reach $659 million in the past year, according to the Brand Finance Alcoholic Drinks 2023 report. The growth is attributed to the brand’s consumer-centric approach and global expansion, including the launch of a wine collection that included French and Californian wines. Despite a 10 percent decline in brand value, Moët & Chandon retains its position as the most valuable wine and Champagne brand for the third consecutive year, with a value of $1.3 billion. Chinese wine brand Changyu takes the second spot, with a brand value of $1.2 billion, driven by the massive and growing Chinese wine market. Penfolds is also ranked as the second-strongest brand in the wine category. The top five most valuable wine and Champagne brands include Chandon, Veuve Clicquot, and Dom Pérignon. The report considers factors such as marketing investment, stakeholder equity, and business performance to assess brand value and strength.
Five winery companies in Oregon’s Willamette Valley are seeking $28 million from PacifiCorp for smoke damage to grapes caused by wildfires ignited by the company’s electrical system. The lawsuits allege that PacifiCorp negligently caused multiple fires by refusing to turn off its power lines during dangerous dry winds despite warnings from state officials. The wineries claim that the smoke taint from the 2020 fires reduced the value of their grapes, increased production expenses, and damaged their reputations. PacifiCorp denies the allegations and plans to pursue appeals vigorously.
Bug bomb infests four in five Beaujolais vineyards – The Drinks Business.
Beaujolais vineyards are facing a crisis as more than 80% of villages in the region are affected by the insect-borne disease, flavescence dorée. The disease, spread by leafhopper insects, has led to the destruction of several vine plots, and many vineyard owners are considering uprooting their vines to prevent further spread. Some organic winegrowers are hesitant to use insecticides to combat the disease, fearing it will harm beneficial insects. Abandoned vine plots have been identified as a source of the epidemic. Additionally, the Beaujolais region has suffered from declining wine sales in Japan due to increased transportation costs. Over the past 20 years, the total vine area in Beaujolais has significantly decreased.
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