Wine Industry News Round-Up for the Week Ending August 25, 2023

A look back at the events of the wine industry from the previous week.

Table of Contents

Here’s what happened in the last week in wine. The French government plans to spend 200 million euros to destroy 150 million bottles of excess wine, aiming to support struggling winemakers and stabilize prices amidst challenges like falling demand and rising production costs. France’s scorching summer is predicted to decrease wine quantity while enhancing quality due to slower grape ripening, resulting in concentrated flavors. Napa wineries are investing in Washington to mitigate climate and wildfire risks, potentially boosting the region’s international presence but intensifying competition for grapes. Notably, vintner Brion Wise acquired a Napa estate to expand his wine portfolio. In environmental concerns, Napa County supervisors are deliberating on groundwater sustainability, and the British Columbia wine industry faces a challenging year due to forest fire smoke and a colder winter. Additionally, workers seek compensation for Glass Fire cleanup, while key departures occur at Ornellaia winery.

Wine Markets

France, EU to spend 200 mn euros on destroying excess wine

The French government is planning to destroy 150 million bottles of wine in order to support struggling winemakers and shore up prices. The wine industry in France and across Europe is facing a number of challenges, including a fall in demand, rising production costs, and the impact of the COVID-19 pandemic. The government’s plan is expected to help to stabilize the wine industry in the short term, but the industry will need to find ways to adapt to the changing market conditions in order to survive in the long term.

2023 Harvest Predictions

France’s Scorching Summer Is Reducing the Quantity of Wine but Increasing the Quality

The scorching summer in France is expected to reduce the quantity of wine produced this year, but it is also expected to increase the quality. The heat waves will cause the grapes to ripen more slowly, which will result in wines with more concentrated flavors and aromas. However, the heat can also burn the grapes, so winemakers will need to be careful when harvesting. Overall, the 2023 vintage is expected to be a smaller but better quality year for French wine.

Investments & Acquisitions 

Napa wineries invest big in Washington

As the combination of climate and wildfire risk increases in California, more and more Napa wineries are hedging their bets and investing in properties in Washington. Names like Kendall-Jackson, Cakebread, and Duckhorn are also attracted to the cooler climate and lower land prices. This is seen as a golden opportunity for Washington to grow its international presence and compete with Napa. However, the increased competition for grapes is a concern for some Washington winemakers.

Napa Valley Vintner and Investor Brion Wise Acquires 128-Acre Pritchard Hill Estate as Future Home for BRION

Brion Wise, proprietor of BRION and B. Wise Vineyards, has acquired a 128-acre Pritchard Hill estate in Napa Valley. The property, formerly known as Montagna, has 42 acres planted under vine and a 20,000-square-foot cave. Wise plans to build a winery onsite and integrate the estate grapes into BRION’s acclaimed portfolio of wines.

The acquisition further expands the reach and influence of Wise, who has long been a collector of Pritchard Hill wines. The region is known for its high-elevation exposure and well-draining volcanic red soils, which produce superlative Cabernet Sauvignon. With this acquisition, Wise joins an elite group of winemakers with estates on Pritchard Hill, including Bryant Family, Chappellet, Colgin, Continuum, David Arthur, and Ovid.

Wentworth Vineyards Announces Acquisition of Anderson Valley’s Abel Vineyard

Wentworth Vineyards, a producer of terroir-driven, organically farmed, and estate-grown wines, has acquired Abel Vineyard in the Anderson Valley AVA. The acquisition will expand Wentworth Vineyards’ Estate Holdings to 80 acres with 25+ planted acres across three sites in the Anderson Valley and Mendocino Ridge AVAs. Wentworth plans to expand production to 3,000 cases of Grown Pinot Noir and Chardonnay within the next three years to meet increased domestic distribution demand and enter new export markets.

US investor FarmTogether scoops Hidden Oaks Vineyards site for $3.2m

FarmTogether, a farmland investment management service that connects farmers and investors through a crowdfunding website, has acquired a 102-acre vineyard in California from Hidden Oaks Vineyards for $3.2 million. The site is home to an organic Cabernet Sauvignon vineyard with 88 acres of vines planted in 2015. The deal also includes the property’s 2023 harvest and well water for farming use. FarmTogether will oversee the “business management and production” of the vineyard.

Environment & Sustainability

Napa County supervisors take on groundwater issues

Napa County supervisors are meeting with groundwater experts to discuss the sustainability of the Napa Valley subbasin. The subbasin is home to both world-famous vineyards and the Napa River, and groundwater irrigates both. However, groundwater pumping has been linked to the depletion of surface water, and the county is required to achieve groundwater sustainability by 2042.

The experts discussed the challenges of monitoring groundwater use, as well as the need for a more systematic approach to groundwater management. They also proposed a plan to move water around the region in order to rewater local waterways. At stake are the competing interests between winery owners and city residents.

B.C. wine sector readies for worst-ever year for forest fire smoke – Resources & Agriculture | Business in Vancouver

The British Columbia wine industry is facing a tough year due to the worst forest fire smoke in many years and a colder-than-normal winter that stunted vines. The smoke will render some grapes unusable and hurt tourism. Winemakers may have to be creative to bottle something worth selling. The Fortify conference and tradeshow may see more interest as wineries look for ways to improve their business.

Napa workers seek US$300 million over Glass Fire clean-up

A group of waste workers who were sent to clean up the devastation caused by California’s Glass Fire are seeking millions in compensation, claiming they were sent in without the right safety equipment or training. The workers allege that they were exposed to toxic chemicals, including methane gas and leachate water, and that they are suffering from health problems as a result. They are calling for the landfill’s former management to be investigated and for testing to be carried out for toxic materials downhill from the landfill.

Departures

Ornellaia’s winemaker Olga Fusari resigns – Decanter

Big changes are coming to Ornellaia as their head winemaker, Olga Fusari, resigns. This latest exit follows the sudden departure of Estate Director  Axel Heinz, who recently left the iconic Tuscan wine brand to pursue winemaking in his native Bordeaux.

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