Team C&J
Heres some insights into the last week in wine. Treasury Wine Estates (TWE), a major wine company, has made a risky $900 million acquisition of Daou Vineyards in Paso Robles. Daou, a relatively young winery, has experienced significant success with high Wine Advocate scores and doubled sales in two years. However, doubts exist about TWE’s ability to integrate Daou into its portfolio and fill a gap in its wine pricing range. Financial analysts have varying opinions on the deal, with concerns about its price and TWE’s potential to build a similar brand. TWE’s move is seen as an attempt to meet growth expectations as a public company, expand into the US luxury wine market, and explore opportunities in Asia amid challenges like Chinese tariffs and climate change impacting Paso Robles’ suitability for Cabernet production.
Treasury Bets its Future on Paso Robles | Wine-Searcher News & Features
Treasury Wine Estates (TWE), one of the biggest wine companies in the world, has taken a substantial risk by purchasing Daou Vineyards in Paso Robles for an estimated $900 million. Daou established just 16 years ago, has seen remarkable success, particularly with high Wine Advocate scores and a doubling in sales within two years. However, doubts arise concerning TWE’s ability to leverage existing brands like Beringer, Stags’ Leap, and others, considering the need for Daou to fill a supposed gap in its $20 to $40 price range wines. Financial analysts have varied opinions about the deal, with skepticism from Australian analysts contrasted against Goldman Sachs’ praise. Critics question whether the purchase was overpriced and whether TWE could have developed a similar brand on its own. The acquisition is seen as a move by TWE to meet growth expectations as a public company, expand into the US luxury wine market, and tap into opportunities in Asia, especially considering the impact of China’s tariffs on Australian wines. There are concerns, however, about the long-term sustainability of the investment, particularly regarding Paso Robles‘ suitability for Cabernet production in the face of climate change.
Comparing Washington and Oregon by the numbers – Northwest Wine Report
Oregon now surpasses Washington in wineries despite its smaller overall industry. Differences in acreage exist, although adjustments in Washington’s planted acreage could close the gap between the states. The Oregon wine community breaks tonnage records as it grows, while Washington has unstable production in recent years. Oregon’s higher grape prices reflect various factors, with Pinot Noir dominant in Oregon and Cabernet Sauvignon in Washington differing in prices. Washington produces more wine and has more small wineries, while Oregon sees a significant portion of its fruit crushed outside the state, likely due to high demand. Both states export to Canada, with slight variations. Differences in sustainable vineyard acreage exist, with Oregon having estimated certifications and Washington initiating such programs.
Australian Wine Exports Plummet | Meininger’s International
Australia’s wine industry faces a crisis as exports plunge, recording a 4% decline in volume and an alarming 11% drop in value, equating to AU$1.79 billion in the year ending September 2023. Bulk wine exports increased by 5%, but their value decreased by 4%, representing 69% of Australian wine exports. The industry is eagerly hoping for the reopening of the Chinese market, yet underlying problems persist. An evident shift from bottled to bulk wine, especially in Canada, the US, Sweden, and the UK, has contributed significantly to the financial downturn. Despite a 7% increase in the average price of bottled wine, the drastic drop in sales volumes by 19% resulted in a significant decline in value. While there’s an 8% rise in exports to the US, the overall trend showcases a decrease in export markets, raising concerns about changing consumer expectations and the industry’s perceived image, which may require a reevaluation to address the situation effectively.
Jura Winery’s Assets Seized | Wine-Searcher News & Features
Domaine Ganevat‘s coveted “Les Vignes de Mon Père” was the centerpiece of a recent New York tasting, showcasing ten vintages of the sought-after cuvée from winemaker Jean-François Ganevat, led by Master Sommelier Pascaline Lepeltier at Chambers Restaurant. The vertical tasting, featuring the highly-priced Savagnin wine, coincided with a report that French authorities had seized Domaine Ganevat’s assets due to money laundering investigations involving former owner Alexander Pumpyanskiy, a Russian oligarch. The estate’s tumultuous recent history includes its sale to Pumpyanskiy, followed by a fast reacquisition, leading to suspicions of dubious financial maneuvers. Despite the legal uncertainties, Ganevat remains focused on the estate’s winemaking. The tasting event in New York highlighted the rarity and quality of “Les Vignes de Mon Père,” a unique Savagnin expression aged in barrels for over a decade, reflecting Ganevat’s dedication to terroir-driven winemaking and time-intensive processes. Pascaline Lepeltier, in charge of the tasting, expressed awe at the wines’ complexity and the rarity of the experience, emphasizing the intricate synergy between the Savagnin grapes, the region’s terroir, and Jean-François Ganevat’s expertise, concluding it as an unparalleled and memorable event due to the scarcity of the wines.
Why this may be ‘best start’ to Wine Country harvest in 50 years
Wine Country in California is experiencing an exceptional harvest after a long and cool growing season, resulting in a potentially outstanding vintage. Winemakers are optimistic due to the balanced and favorable grape development from delayed growth attributed to moderate temperatures and ample rainfall. This delay has enabled a balance of flavor, sugar, and acidity in the grapes, suggesting the potential for an exceptional vintage. While conditions appear positive and yields are above average, there is caution and uncertainty about the exact quality until fermentation and bottling. The year’s moderate weather has also provided a reprieve for workers after several years of harsh conditions due to heatwaves and wildfires. This year’s harvest is reminiscent of previous cool years like the high-quality 2011 vintage, but the unpredictability of climate change leaves the future uncertain for such ideal conditions in the years ahead.
The 2024 Rhone Rangers Experience is Set for February 18, 2024, in Paso Robles
Rhone wine lovers, mark your calendars: The 2024 Rhone Rangers Experience is scheduled for February 18 in Paso Robles, and tickets are now available to purchase. The event, which takes place over Presidents’ Weekend, includes a “Rhone Essentials” seminar, a Vintners’ Luncheon, and a Grand Tasting showcasing 250+ wines, accompanied by a Silent Auction supporting Rhone Rangers’ educational efforts. The seminar will spotlight top Rhone varietal wines across nine categories, led by a panel moderated by Ray Isle, Executive Wine Editor for Food & Wine. Following the seminar, there will be an al fresco luncheon, allowing interaction with producers and the enjoyment of special Rhone wine releases. The afternoon segment will host a Grand Tasting featuring 70+ Rhone Rangers members’ wines, encouraging participation in a silent auction to benefit educational initiatives. Tickets are available for different segments or an “All-Access” package, and inquiries can be directed to kim@rhonerangers.org or obtained from the Rhone Rangers website.
A new ‘Pied Piper’ robot protects Oregon’s vineyards from pests with some good vibes
A new Pied Piper robot, developed by Oregon State University, is designed to manage agricultural pests without toxic pesticides. The device mimics insect communication by emitting vibrations to lure and disrupt mating among pests such as treehoppers and brown marmorated stink bugs. While the Pied Piper device is tested in vineyards at Stag Hollow Winery in Oregon, researchers aim to prevent these insects from mating and reproducing using this method. Their technique involves recognizing, playing back, and competing with the vibrational calls of these pests, effectively providing a targeted approach for pest management potentially reducing the need for harmful chemical pesticides.
South African Winemakers Face Record Flooding As 16 Inches of Rain Fall | Wine Spectator
South Africa’s Western Cape faced severe damage as a storm brought unprecedented rainfall, resulting in destroyed roads, flooded vineyards, and uprooted trees, causing financial devastation to wineries and vineyards. The Hemel-en-Aarde Valley was hit hard, and winemakers across the region, including Hamilton Russell and Kershaw Wines, witnessed catastrophic destruction from this unexpected storm. Access to South African vineyards has been severely affected, with farmers resorting to boats and facing obstacles in accessing their lands and performing necessary vineyard maintenance, which could lead to potential yield reductions due to the threat of downy mildew. The economic impact is estimated at $75 million, causing concerns for the wine and tourism industries in the region, disrupting recovery efforts after the pandemic. Despite the challenges, winemakers remain determined to overcome the adversity.
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