Team C&J
Here’s some insight into the last week of wine. E.& J. Gallo leads in the fastest-growing smaller wine labels, with La Terre experiencing a remarkable 17.5% growth, offering affordable options under $10 per bottle. Staff shortages affect nearly half of wine-related companies, impacting production and sales. Visit Napa Valley’s tourism economy shows recovery, surpassing 2019 revenue levels despite lower occupancy. The 2023 Champagne harvest faces challenges with poor grape quality and labor conditions. The 2023 Bordeaux harvest varies due to mildew outbreaks, and California experiences a unique vintage with a cool summer. Major retailers pledge to reduce bottle weights to reduce the wine industry’s carbon footprint. Red Rooster Winery closes due to extreme weather events in British Columbia. Local groups appeal Duckhorn NAPA Vineyards Winery expansion in Napa County due to concerns about water use and industrialization.
Gallo Reloads With Crop Of Up And Coming Wine Brands
E.& J. Gallo leads the way in the “Hot Prospects” list, showcasing the fastest-growing smaller wine labels in the industry. Among Gallo’s six Hot Prospect brands, La Terre stands out as the largest, experiencing a remarkable 17.5% growth rate, reaching 235,000 cases in 2022. La Terre offers a range of affordable options, including Chardonnay, Cabernet Sauvignon, White Zinfandel, and Merlot, typically priced under $10 per bottle. La Terre, along with two other brands (Cribari and Franciscan), was acquired from Constellation in a 2021 deal. Proverb, another Gallo brand, saw a 23.5% growth to 210,000 cases, while Barefoot Bright & Breezy, a spinoff of Barefoot Wine, gained traction with low-alcohol options, reaching 105,000 cases. Bev, a recent addition to Gallo’s portfolio, offers “zero sugar” canned wine and spritzers and was acquired in 2023. Gallo’s CMO, Stephanie Gallo, sees these additions as a response to evolving consumer preferences and the desire to offer diverse beverage options.
Staff shortages continue to bite in the wine trade
Staff shortages have significantly affected the wine trade, with nearly half of all wine-related companies experiencing workforce issues in the past two years, according to The ProWein Business Report 2022. Wine producers have been hit the hardest due to seasonal demands, with 63% facing shortages in seasonal workers, particularly in Portugal (94%), Spain (77%), and California (73%). Production staff and oenologists have also been challenging to find (51% reported shortages). Sales and promotion staff are in shorter supply (25%), while other areas, such as gastronomy and management, have seen fewer shortages. Companies have coped with these shortages through overtime, but this has resulted in a third of them failing to meet quality and service goals. Some companies have outsourced operations at a higher cost, and 25% have increased wages to attract and retain talent.
Visit Napa Valley reports growth in tourism recovery
Visit Napa Valley’s Destination Symposium revealed that Napa Valley’s tourism economy is on the path to recovery from the pandemic. While not yet back to 2019 levels of overnight occupancy, the region has exceeded 2019 revenue levels, indicating that visitors are spending more money in Napa Valley. International travelers and domestic business travelers, known for longer stays and higher spending, are crucial to driving future growth alongside domestic leisure travelers. Despite year-to-date hotel occupancy being down from 2019, the transient occupancy tax revenue in Napa County reached a new high of $69 million, contributing to the area’s quality of life. Recovery to pre-pandemic levels in international and domestic business travel segments is expected by 2025, with key international markets like Mexico, Canada, and the United Kingdom showing promising signs. However, the recovery of visitors from China remains uncertain, affecting the full regional recovery. Visit Napa Valley has laid out a 3-year business plan that prioritizes strategic marketing and sales programs, collaborative destination management, community engagement, and organizational development, with the majority of funding coming from a transient occupancy tax.
Champagne Tries to Stop the Rot | Wine-Searcher News & Features
The 2023 Champagne harvest has faced numerous challenges, including poor grape quality and tragic labor conditions. Notably, five people died during the harvest, and authorities uncovered four sweatshops with inhumane living conditions for workers. Labor issues have plagued the region, as grape picking is physically demanding and poorly paid, leading to a reliance on foreign labor and often unscrupulous subcontractors. The harvest also saw significant problems with grape rot, exacerbated by large bunches, high yield, and weather conditions. Some producers prioritized quality, investing in proper grape sorting, lodging, and working conditions, while others seemingly favored quantity, leading to questions about the quality of the juice produced. Despite challenges, some Champagne houses are investing in safeguarding premium cuvées, but the industry’s divide between quality and quantity remains apparent.
Harvest 2023: serene harvest after challenging season – Jane Anson – Inside Bordeaux
The 2023 Bordeaux harvest has concluded following a challenging growing season with mixed outcomes. While frost damage was limited compared to recent years, a severe mildew outbreak impacted some vineyards, emphasizing the importance of meticulous grape sorting. The impact of mildew was uneven, affecting yields, with some properties reporting healthy production while others saw significant reductions. Those who could work during weekends and had the resources to combat mildew benefited most. Additionally, a heat wave during harvest influenced grape ripening, particularly benefiting high-yield bunches. The vintage is expected to offer wines with good tannins, color compounds, balanced alcohols, and natural acidities, but the results will vary among estates, emphasizing the economic disparity between different wineries in Bordeaux.
California Harvest: Everything Everywhere All at Once | Wine-Searcher News & Features
California winegrowers are experiencing a unique vintage in 2023 due to a long, cool summer that has extended the ripening process and is expected to produce wines with exceptional flavor development. The season started with above-average winter rainfall, providing happy vines with ample water after years of drought. The cool summer has led to slow ripening, preventing heat spikes that can result in unbalanced wines. While most of North America experienced record-breaking heat, California had a temperate summer with no extended periods above 100°F. If the harvest is not disrupted by rain, this vintage has the potential to produce balanced wines with great depth of flavor.
Retailers agree to reduce bottle weights | JancisRobinson.com
A group of major retailers, including Systembolaget, Whole Foods Market, and Laithwaites, have joined the Sustainable Wine Roundtable Bottle Weight Accord, pledging to reduce the average weight of 750ml still wine bottles they sell from about 550g to below 420g by the end of 2026. The initiative is part of a wider effort to reduce the wine industry’s carbon footprint, as the production and transportation of glass bottles account for a significant portion of the footprint. The initiative’s target is to reduce wine-related carbon emissions by 25%. Research shows that bottle weight is not a primary factor for consumers when making purchasing decisions, and lighter bottles are durable with proper design and distribution of glass.
Red Rooster Closure Reflects Dire Straits for B.C. Wineries
Red Rooster Winery in British Columbia’s Okanagan Valley has closed its onsite operations due to an “unprecedented winter event” and damage from wildfires. The estate vineyard at Red Rooster is just two acres, but the winery is sourced from properties throughout the region to support an annual production of around 30,000 cases. The fate of the Red Rooster property, owned by Andrew Peller Ltd., hasn’t been decided yet, but production of Red Rooster’s wines will continue at Andrew Peller’s flagship Sandhill winery in Kelowna. The closure of Red Rooster is part of a broader issue facing BC wineries as the province experienced significant crop failures due to extreme weather events, which may require some to explore new options and adapt to a shortage of fruit.
Groups appeal county’s approval of Duckhorn NAPA expansion
Local groups, Preserve Lodi Lane and Napa’s Water Audit California are appealing Napa County Planning Commission’s approval of Duckhorn NAPA Vineyards Winery expansion on Lodi Lane, citing concerns about water use, CO2 emissions, the size of the processing facility, inadequate staff reports, and increased traffic on a rural road. They are specifically concerned about the potential “industrialization of Lodi Lane.” Duckhorn‘s expansion plans include a new processing facility, leading to increased visitor and truck traffic. The Napa County Board of Supervisors will address these appeals on November 7, with the groups seeking a repeal of specific documents and the preparation of an Environmental Impact Report to address these issues.
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