Team C&J
Here’s what happened in the last week in wine. Wine mogul Bill Foley has acquired a majority stake in Sonoma County’s Farmhouse Inn, adding to his Wine Country holdings. Royal Wine Corp. and Herzog Wine Cellars have acquired Sonoma-Loeb Winery. In the US wine market, sales plateau as an aging population opts for more expensive options while younger consumers turn to craft beer and ready-to-drink beverages. New Zealand’s wine exports have surged 23%, with the US as a key driver. Legal battles include a winemaker suing Napa County over water rights and a New Jersey ban on out-of-state retailer wine shipments. The 2023 grape harvest in Monterey County promises high-quality yields. Revino is launching a reusable wine bottle system in Oregon, and Georgian wine producers have suffered major losses due to hailstorms.
Treasured inn and restaurant sold to Wine Country mogul
Wine and hospitality magnate Bill Foley, known for his investments in the wine and entertainment industries, has acquired a majority stake in Forestville’s Farmhouse Inn, a luxury hotel in Sonoma County’s Russian River wine region. The inn, renowned for its Michelin one-star-rated restaurant for 14 consecutive years until its chef’s departure in 2021, joins Foley’s expanding portfolio of Wine Country holdings. Foley, who already owns Hotel Les Mars in Healdsburg and several Sonoma County wineries, including Sebastiani Vineyards and Ferrari Carano, has a strong presence in the region.
ROYAL WINE CORP. & HERZOG WINE CELLARS ACQUIRE SONOMA-LOEB BOUTIQUE WINERY
Royal Wine Corp. and Herzog Wine Cellars are expanding their portfolio of luxury wines by acquiring the boutique legacy winery Sonoma-Loeb, founded in 1981 by Ambassador to Denmark and business magnate John L. Loeb, Jr. Sonoma-Loeb, under the guidance of Chappellet Winery owners and winemaker Philip Corralo-Titus, has earned a respected reputation in California’s wine country. This acquisition not only enhances Royal Wine’s lineup of wines but also opens doors to new markets. Sonoma-Loeb, currently overseen by John L. Loeb, Jr.’s son Nick, is known for its wines sourced from prestigious Sonoma wine locales. Royal Wine will also introduce a Kosher version of Sonoma-Loeb, named Dignitary, featuring three original varietals—Pinot Noir, Chardonnay, and Cabernet Sauvignon. The first wines under Royal’s management are set to debut in the marketplace this fall, marking an exciting chapter for this esteemed label.
Trends in Wine Consumption in the US Wine Market
This piece offers an intriguing insight into the current state of the wine market from top US exporter Steve Melchiskey, President of USA Wine West. This interview is worth your time if you’re interested in where the experts see wine markets trending, but here are some key takeaways.
Value growth of New Zealand wine off the charts
New Zealand’s wine industry has experienced significant growth, with its wine exports reaching a record value of NZ$2.4 billion, marking a 23% increase over the past year. This surge in value, despite higher wine prices, highlights the willingness of international consumers to invest in premium New Zealand wines. The country is now the sixth-largest wine exporter by value globally, with nearly 90% of its wine sales occurring abroad. The United States played a pivotal role in this growth, with American consumers spending 25% more on New Zealand wine over the past year. While the re-opening of borders and increased tourism have boosted cellar door sales and labor availability for harvest, overall production for 2023 decreased by 6% due to damage caused by Cyclone Gabrielle in February.
Renowned International Winemaker Files Lawsuit Against Napa County Over Denial of Water Rights
Jayson Woodbridge, owner and winemaker for Hundred Acre Wine Group, has filed a lawsuit against Napa County for denying permits for water wells on his vineyard properties, alleging the county’s violation of state and federal water rights laws and its own regulations. Woodbridge argues that the county imposed excessive and discriminatory restrictions on water use for the well permits, unlike existing wells, despite the same legal rights. The lawsuit, filed in federal court, seeks a court order declaring the county’s actions in violation of California water rights laws and the U.S. Constitution’s fifth and fourteenth amendments. It also seeks unspecified damages and attorneys’ fees. This is the second lawsuit filed by Woodbridge and Hundred Acre against the county, the first being in October 2022, challenging government overreach regarding tree replanting regulations.
New Jersey Judge Upholds Retail Shipping Ban | Wine-Searcher News & Features
A New Jersey judge has upheld the ban on retailers from other states shipping into New Jersey, a decision that has sparked ongoing controversy. The case began in 2019 when Wine Cellarage filed a complaint against the out-of-state retailer ban, claiming it violated the US Constitution’s Commerce Clause. While wineries have enjoyed the ability to ship to the majority of states for years, retailers have been restricted in their sales scope. The fear among retailers is that large chains with competitive pricing, such as Total Wine & More, may eventually dominate the market, leading to fewer retail options for consumers. Some wholesalers support the ban, as it helps maintain their control and profit margins. The decision has sparked debate over the rights of wineries versus retailers in the alcohol industry.
2023 wine grape harvest begins in Monterey County – The King City Rustler
The 2023 wine grape harvest has commenced in Monterey County, marked by a delayed start due to cooler weather conditions but promising a positive outlook for grape quality and quantity. The delayed growing season, one of the coolest in recent history, has allowed the grapes to maintain their natural acidity, which is particularly beneficial for producing crisp and lively sparkling wines. Monterey wine brand Scheid Family Wines’ Isabelle’s Vineyard initiated the harvest with Pinot Noir and Chardonnay grapes, known for their use in sparkling wines. Despite the late start, this year’s crop is anticipated to yield an average to slightly above-average load of high-quality fruit, benefiting from mild temperatures and replenished vineyards from winter and spring rains, resulting in robust flavor development throughout the region.
US Launches First Reusable Wine Bottle System
Revino, an Oregon-based company, is launching the first large-scale reusable wine bottle system in the US in collaboration with the Oregon Beverage Recycling Cooperative (OBRC). These bottles are designed for up to 50 reuses and will leverage the existing reusable deposit system in Oregon. Consumers can return the bottles at official OBRC collection points and participating partner producers. Revino aims to equip over 30 wine producers with 2.4 million reusable bottles by 2024 and plans to establish a new bottle processing plant for sorting, cleaning, and reusing the bottles. Initially offering Burgundy bottles in green glass, they aim to expand the color range and offer Bordeaux bottles by the end of 2024, with the goal of developing a lightweight yet sturdy glass bottle for up to 50 usage cycles. The project is funded by various investors committed to reducing the ecological footprint of Oregon’s wine industry.
Georgian Wine Producers Lose up to 100% of their Vines in Storms Affecting 4,600ha
On September 2, severe hailstorms struck Georgia’s largest wine region, Kakheti, where approximately 80% of the country’s wines are produced. Early reports indicate that around 4,600 hectares of vineyards have been affected out of the region’s total of 33,500 hectares. Fifteen villages suffered devastating losses of 80-100% of their crops just 10-14 days before harvest. The hailstorms, with golf ball-sized hail, also caused damage to vehicles and buildings. Georgian wine producers, lacking insurance against hail damage in August and September, may need to rely on government assistance for survival, with some smaller producers facing particularly challenging circumstances.
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