Wine Industry News Round-Up for the Week Ending 2/2/24

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

Table of Contents

The wine industry is facing a range of challenges and innovations across the globe. In France, the government has allocated an €80 million emergency support package to aid grape growers amid farmer protests due to agricultural unrest. In the US, direct-to-consumer wine shipments have declined for the second consecutive year, attributed to rising costs, with California experiencing the most significant decrease. The industry is also exploring the production of low or no-alcohol wines, although the removal of alcohol significantly alters the wine’s flavor profile. Young winemakers are adopting innovative strategies to appeal to Millennials and Gen Z, focusing on sustainability and tailored experiences. In Australia, Duxton Vineyards is trialing an autonomous vineyard tractor, OXIN, as a step towards sustainable viticulture. Catalonia’s declaration of a drought emergency has imposed water restrictions, impacting Spanish winemakers and grape growers. Meanwhile, a study by Oregon State University shows promise in using spray-on coatings to protect grapevines from wildfire smoke and prevent smoke taint. New Zealand’s 2024 grape harvest is expected to be lower than the previous two years, despite a warm growing season. Napa Valley’s Premiere Napa Valley auction for 2024 showcases unique collaborative expressions by various Napa winemakers, highlighting the industry’s resilience and adaptability.

State of the Wine Industry

‘Emergency’ €80m promised to French winegrowers amid farmer protests – Decanter

In response to extensive agricultural unrest, the French government has allocated an €80 million emergency support package specifically aimed at aiding French grape growers hit by the crisis. This financial assistance forms part of a larger strategy by government officials to mitigate the impact of widespread demonstrations by farmers from a range of agricultural fields who have expressed significant discontent over current challenges in the sector.

Consumer Wine Trends

US direct-to-consumer shipments fall as costs soar – The Drinks Business

The Direct-to-Consumer Wine Shipping Report from Sovos Shipping Compliant reveals that rising costs led to a decline in US direct-to-consumer wine shipments in 2023, with California wine experiencing the most significant decrease. Volumes dropped by 6.5%, marking the second consecutive year of decline, while the value held steady at $4.1 billion. Wines priced under $30 per bottle saw a 12.9% decrease in volume, while those priced at $100 or above experienced a 5.6% increase in shipments. The average price per bottle rose by 7.1%, reaching $48.35, with the largest price hikes occurring in the autumn months. Notably, wine from Washington State defied the trend, recording increases in both volume and value shipments. California, in contrast, experienced a substantial decline, with Sonoma County seeing a 10.1% increase in average bottle price and Napa Valley wine dominating in value despite a decrease in volumes. Similar decreases were observed in shipments from Oregon as well. The report also highlighted the impact of inflation, rising interest rates, shifting consumer habits, and cannabis legalization on the wine industry.

Jamie Goode: The challenges of making low/no alcohol wine – winemag

Jamie Goode discusses the challenges of producing low or no alcohol wine, emphasizing the significant impact of alcohol on wine flavor and aroma. He explores technologies such as reverse osmosis and spinning cone processes used for alcohol reduction, highlighting how even the slightest alcohol reduction can noticeably alter the wine’s flavor profile. Goode acknowledges the difficulty in creating a zero-alcohol wine and suggests that replacing the role of alcohol in terms of body and flavor integration poses a formidable challenge. While there are examples of lower-alcohol wines that exhibit pleasant qualities, the pursuit of a no-alcohol wine that could convincingly resemble traditional wine remains ongoing.

Young Vintners Are Making Serious Wine. Now They Have to Convince Their Generation to Drink It.

Young winemakers are recognizing the shift in consumption habits among Millennials and Gen Z, prompting them to engage in innovative strategies to appeal to these elusive generations. Julie Pitoiset of Château des Jacques and Clément Robinet of Domaine J.A. Ferret are among those addressing this shift. Pitoiset and her team have designed tailored tours, while Robinet focuses on making their wines more accessible in venues suited for younger consumers. Additionally, Pierre-Emile Humbrecht from Domaine Zind Humbrecht emphasizes the importance of sustainability, aligning with the eco-conscious mindset of younger drinkers. These winemakers also prioritize education, utilizing university tastings and large-scale events to connect with consumers, recognizing the significance of storytelling and genuine connections in creating memorable wine experiences for the younger generation.

Climate & Sustainability

Australian-first trial of robotic tractor underway at Duxton Vineyards – Winetitles

An innovative trial is underway at Duxton Vineyards in Australia, where the world’s first fully autonomous, multi-tasking robotic vineyard tractor, named OXIN, is being put to the test. Developed by Smart Machine and financially supported by Wine Australia’s agtech program, the OXIN trial aims to demonstrate the tractor’s advanced data analysis capabilities, efficiency, and environmental benefits in the Euston vineyard through 2024. The technology is designed to enhance vineyard operations by performing tasks like mowing and spraying under the management of a single operator with a tablet interface. Duxton Vineyards champions this trial as a step towards sustainable viticulture and agricultural innovation. Wine Australia reflects positively on the initiative, emphasizing its alignment with the sector’s profitability and sustainability goals, while Smart Machine highlights OXIN’s potential to revolutionize viticulture in Australia with designs adapted for the local conditions.

Catalonia declares drought emergency, extending restrictions to Barcelona

Spanish winemakers and grape growers were dealt a heavy blow when Catalonia declared a state of emergency due to an ongoing drought, extending water restrictions to Barcelona and its surrounding areas. Water reserves have plummeted to below 16%, prompting these measures in response to what has been described as the region’s worst drought in modern history. The restrictions will include a reduction in agricultural irrigation, closures of public and private swimming pools, bans on the watering of public parks, and limitations on car washing, among other actions. The situation in Barcelona is further complicated by the heavy reliance on desalination for drinking water, which is both costly and energy-intensive. These restrictions are expected to remain in effect for at least the next 15 months, with the drought also impacting other parts of Spain, such as Andalucía.

Spray shows promise against smoke taint

A recent study conducted by Oregon State University reveals the potential of spray-on coatings to protect grapevines from wildfire smoke, subsequently preventing off flavors in wines. The research, led by Yanyun Zhao and Jooyeoun Jung, develops cellulose nanofiber-based coatings that effectively block and capture volatile phenols known to cause smoke taint. By applying these coatings in the vineyard, vineyard managers could potentially shield grapes from smoke damage, addressing a significant concern for the wine industry. Application studies in Oregon vineyards have demonstrated that these coatings do not impact grape quality and growth, positioning them as a potentially transformative tool for vineyard management. The study is funded by the Oregon Department of Agriculture Specialty Crop Block Grant and the U.S. Department of Agriculture Specialty Crop Grant.

Harvest Update from New Zealand

New Zealand 2024 harvest down on last two years – Harpers Wine & Spirit Trade News

The upcoming New Zealand grape harvest of 2024 is expected to yield lower quantities compared to the previous two years, despite a warm and favorable growing season leading up to the harvest. The CEO of New Zealand Winegrowers, Philip Gregan, expressed optimism about the quality of the grapes but anticipates a lighter yield overall due to the favorable weather conditions. In contrast, the 2023 harvest was characterized by high yields, contributing to a positive boost in the world’s wine supply, and resulted in strong growth for New Zealand wines in the UK market. Despite the projected decrease in harvest volume, New Zealand wine exports continue to play a significant role in major markets such as the US, UK, and Australia.

Notable Wine Auctions in 2024

Napa winemaker collabs lined up for exclusive auction

Napa Valley’s Premiere Napa Valley auction for 2024 is now open for registration and has already showcased unique collaborative expressions crafted by various Napa winemakers. This annual event provides a glimpse into future lots exclusively available to the wine trade, with 138 of the 166 lots featured being of the 2022 vintage. Notable collaborations include joint projects between esteemed winemakers such as Burgess Cellars, Heitz Cellar, and Stony Hill Vineyard, as well as a collaboration involving several producers from the Stags Leap district. The event is expected to include onsite tastings, virtual experiences, and a live auction, and previous years have seen substantial participation from bidders globally, reaching impressive fundraising figures.

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