Wine Industry News Round-Up for the Week Ending October 6, 2023

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

Table of Contents

Here’s some insight into the last week of wine. The 2022 Oregon Vineyard and Winery Report, released by the Oregon Wine Board, highlights significant trends in Oregon’s wine industry. Oregon has become the second-largest state for wineries in the U.S., boasting 1,116 wineries, with a focus on Pinot Noir and Chardonnay plantings. Notably, 60% of Oregon wine is sold outside the state. India’s wine consumption is also rising, with 10 million regular wine drinkers and a 29% increase in consumption in 2022. The U.S. winery tasting room landscape is evolving, with more wineries offering by-appointment tastings. Terroirs et Vignerons de Champagne’s acquisition of Champagne Henriot solidifies its position in the champagne market. Additionally, legal disputes in Napa County and a trademark lawsuit between Domaine Carneros and Chateau De Reve are ongoing. Napa Valley has experienced a quieter wildfire year, and the USDA is introducing a grapevine insurance program. The European Commission is reconsidering its proposal to renew glyphosate, seeking approval from member states.

Industry Trends

Five takeaways from the 2022 Oregon vineyard and winery report

The 2022 Oregon Vineyard and Winery Report, released by the Oregon Wine Board, reveals significant trends in the state’s wine industry. Oregon now boasts 1,116 wineries, surpassing Washington to become the second-largest state for wineries in the country, with consistent growth in recent years. Pinot Noir plantings in Oregon have surged by 173% over the past decade, with 60% of the state’s acreage dedicated to this variety, predominantly in Northern Willamette Valley. Chardonnay is also on the rise in Willamette Valley, with a 268% increase in plantings over a decade. Notably, 60% of Oregon wine is sold outside the state, demonstrating its prominence in the marketplace. Additionally, a surprising 31% of Oregon wine grapes are crushed outside the state, highlighting the popularity of Oregon wines, especially from the Willamette Valley region, in the broader wine industry.

Wine In India – Consumption Rates Increasing Along With Wine Knowledge

India’s wine consumption is on the rise, with 10 million regular wine drinkers and a 29% increase in wine consumption in 2022, leading to an estimated wine market value of $238 million. Sonal C Holland, the first Master of Wine from India, has played a pivotal role in promoting wine knowledge through her successful Sonal Holland Wine Academy and social media presence. India’s wine importation has also surged due to reduced excise duty taxes on imported alcohol and trade agreements with countries like Australia, making imported wines more affordable. Wines from countries like the U.S. are gaining popularity in India due to competitive pricing and marketing efforts. Additionally, India’s own wine industry, centered around Nashik in Maharashtra, is thriving, with wineries like Sula Vineyards, Grover Zampa Vineyards, and Fratelli Wines making significant contributions. Financial forecasts project a 10% annual growth in wine volumes in India from 2022 to 2027, signaling a promising future for the Indian wine market.

US winery tasting room trends revealed in new survey – Decanter

A survey by Silicon Valley Bank’s wine division has revealed trends in US winery tasting rooms, indicating that the era of rising tasting prices may give way to more flexible approaches. The survey found that Napa Valley has the highest average tasting fees, with a standard tasting costing an average of $81 in Napa County, compared to $38 in Sonoma County and $32 in Oregon. It also noted that more wineries in the US are offering by-appointment tastings, with only 27% offering purely walk-in tastings in 2022, down from 56% in 2019. The report suggests that the purpose of tasting fees is evolving, and some wineries may reduce or eliminate fees, while others could enhance the tasting experience.

Acquisitions

Terroirs & Vignerons de Champagne finalises acquisition of Champagne Henriot

Terroirs et Vignerons de Champagne (TEVC), the largest cooperative group in Champagne, has completed its acquisition of Champagne Henriot from Artémis Domaines, making TEVC the second-largest champagne group after LVMH in terms of higher value sales than Laurent Perrier. TEVC’s president, Véronique Blin, expressed her satisfaction with the acquisition, emphasizing the group’s commitment to enhancing quality and market share in Champagne. TEVC Managing Director Christophe Juarez noted that Champagne Henriot would complement their existing brand portfolio. The acquisition includes Champagne Henriot’s vineyards, commercial operations, associated brands, and distribution networks, totaling around 144 hectares of vines, including prestigious Grands Crus and Premiers Crus vineyards, as well as a substantial inventory of premium wine stocks.

Lawsuits

Three Wineries Suing Napa County Launch Website to Inform Public About Lawsuits

Three wineries in Napa County, namely Hoopes Vineyards, Summit Lake Vineyards, and Smith-Madrone Winery, are taking legal action against the county, alleging unconstitutional practices. They have launched the website http://saveoursmallwineries.org/ to inform the public about their lawsuits and provide access to legal documents, news coverage, and a link to the County’s winery database. The first hearing for these cases is scheduled for October 6. The wineries argue that the government’s actions amount to government overreach against small businesses, including lawfully operating wineries with decades of property rights. They believe that Napa County has a history of attempting to regulate small wineries beyond state law and are calling for accountability and ethical business practices in the wine industry.

Domaine Carneros Sues Southern California Winery Over the Name “Le Reve”

Domaine Carneros has filed a trademark lawsuit against a Southern California winery, Chateau De Reve, over the use of the name “Le Reve.” Domaine Carneros, known for its sparkling wine called “Le Reve,” has held the trademark for this name since the late 1990s. The lawsuit alleges that Chateau De Reve’s use of “Le Reve” and “Chateau De Reve” in connection with wine production and sales is causing confusion among consumers, potentially diminishing the value of Domaine Carneros’ trademark. Domaine Carneros had requested that Chateau De Reve cease using these terms, but the latter declined, stating that there was no reason they couldn’t coexist in the marketplace. Domaine Carneros seeks a court order to prevent Chateau De Reve from using these terms and is also pursuing damages for alleged trademark infringement.

Climate & Sustainability

Cal Fire: Napa Valley on track for quiet wildfire year

Napa Valley and neighboring counties are experiencing a relatively quiet wildfire year, with Cal Fire reporting that only 565 acres have been affected by fires in the Sonoma-Lake-Napa Unit through the end of September, down from 2,648 acres in the previous year. This marks the lowest acreage impacted since at least 2014, contrasting with the devastating 413,484 acres that burned in the first nine months of 2020. Factors contributing to this improvement include increased state firefighting funds since 2020, heavy winter rains, and mild summer weather. Cal Fire has also withdrawn two helicopter tankers from the region for the season, indicating reduced fire risk.

USDA introduces new grapevine insurance program – Good Fruit Grower

The U.S. Department of Agriculture (USDA) is introducing a new grapevine insurance program for grape growers, allowing them to insure the grapevines themselves against natural hazards like wildfires or freeze damage, rather than just the crop. This program will be available to growers in select counties across California, Washington, Oregon, Idaho, Michigan, New York, Ohio, and Texas in 2024, with an application deadline of November 1. The insurance policy will cover grafted vines and provide compensation for losses when vines are killed or damaged beyond recovery due to freeze, fire, hail, flood, or natural disaster-induced irrigation disruption. The program is similar to the apple tree insurance program the USDA launched in 2020, providing critical risk management for vineyard owners.

Commission to reconsider its glyphosate renewal proposal, sources say – EURACTIV.com

The European Commission is reportedly reconsidering its proposal to renew the controversial herbicide glyphosate in an effort to secure approval from member states. The draft regulation, submitted in September, seeks to extend glyphosate’s approval for the EU market for another decade despite differing opinions on its environmental and health effects. The proposal requires approval from a qualified majority of member states, and the Commission is said to be revising it to garner more support. Some countries, like France and Slovenia, have indicated conditional support for the proposal with certain adjustments. While the Commission hasn’t confirmed altering the current proposal, it remains open to modifying it based on concerns and feedback from member states.

 

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