Wine Industry News Round-Up for the Week Ending 2/23/24

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

Table of Contents

In 2024, the Australian wine industry faces a significant crisis as grape growers in South Australia’s Riverland region struggle with plummeting grape prices reminiscent of the 1970s, leading to severe financial strain and emotional turmoil. Meanwhile, a survey highlights a positive trend among young wine drinkers, indicating increased consumption and belief in wine’s health benefits, although potential changes in dietary guidelines could impact consumption habits. In Oregon, wineries grapple with challenges like inflation, staffing issues, climate change, and anti-alcohol sentiment yet remain cautiously optimistic about growth opportunities. The Institute of Masters of Wine welcomes five new members, showcasing their expertise and dedication to the wine industry. Napa Valley College announces plans for a new Wine Spectator Wine Education Center, aiming to enhance its viticulture and winery technology program. Climate and sustainability issues emerge in Sonoma County, where vineyards experience non-uniform bud breaks due to varied microclimates. Additionally, innovative packaging strategies like Bag in Box wines gained traction, while a shocking incident at a Spanish winery saw the spillage of 60,000 liters of premium wine, prompting investigations into potential sabotage.

Wine Industry Trends for 2024

Grape growers being paid 1970s rates say they are at breaking point in Australia’s largest wine region – ABC News

Australian wine is in trouble. In South Australia’s Riverland, the largest wine grape growing area in the country, growers are facing a severe financial crisis as prices for their grapes plummet to levels of the early 1970s, at about $120 a tonne, while production costs hover around $300 a tonne. This dire situation has led to severe financial and emotional stress among growers, with some, like Simi Gill, considering abandoning their vineyards. Growers are protesting and engaging in crisis talks with industry and government representatives to seek solutions. Amidst this turmoil, suggestions for an exit strategy for those wishing to leave the industry, consideration of alternative agriculture, and calls for governmental support are being discussed to counteract the impact of global market struggles, high production costs, and challenging industry conditions.

Wine, Health, Dietary Guidelines, and Consumers

A survey conducted by Colangelo & Partners and Wine Opinions reveals a positive trend among 21-39-year-old wine drinkers, indicating an increase in consumption and a belief in wine’s modest health benefits. However, the survey also highlights concerns, with two-thirds of this demographic stating they would reduce drinking if U.S. Dietary Guidelines recommended a maximum of two alcoholic drinks per week. The current guidelines, set for review in 2025, presently define moderation differently, but potential changes, similar to Canada’s recent guideline adjustments, might adversely affect U.S. wine consumption. Despite this, the overall sentiment from the survey is positive, with respondents appreciating wine’s role in complementing food, its cultural significance, and its potential as part of a healthy diet. The findings suggest that facing health criticisms, the wine industry might be better served by focusing on positive messaging and the enjoyable aspects of wine culture, rather than engaging in scientific debates over health implications.

Oregon Wineries Lean into Business Challenges

Oregon’s wineries, known internationally for their premium wines, are currently navigating a range of industry-wide challenges similar to those faced by their counterparts in California and beyond. These challenges include the impacts of inflation, difficulties in hiring staff, the mounting threats of climate change, and a noticeable rise in anti-alcohol sentiment. These concerns were front and center at the recent Oregon Wine Symposium, which saw over 1,200 attendees gather to discuss the state of the industry, including its headwinds and tailwinds. Keynotes highlighted a decrease in winery growth due to a combination of declining consumption, tourism, and other factors; however, opportunities for growth outside Oregon, particularly through direct-to-consumer and wholesale channels, were identified as significant. The symposium also celebrated industry leaders with awards and explored future-oriented topics like artificial intelligence in winemaking and legislative advocacy efforts. Despite facing these considerable challenges, the prevailing sentiment among industry leaders and practitioners is one of cautious optimism, with a focus on adapting to current conditions while seeking new opportunities for growth and innovation within the dynamic landscape of Oregon’s wine industry.

The Latest in Wine Careers

Five new Masters of Wine announced

The Institute of Masters of Wine (IMW) has expanded its esteemed ranks, welcoming five new Masters of Wine (MW) to its global membership. This 2024 cohort comprises four UK-based wine experts—Emily Brighton MW, Christopher Martin MW, Robert Mathias MW, Dror Nativ MW—and one Italian, Pietro Russo MW. Their induction brings the total number of active MWs across 31 countries to 417. Achieving the MW title involves completing a rigorous examination process, including theory and practical exams, followed by a comprehensive research paper on a wine-related subject. This achievement not only underscores their profound understanding of wine in all its facets but also joins them to a celebrated community dedicated to the highest standards of wine education. Cathy van Zyl MW, Chair of IMW, expressed profound joy and pride in welcoming the new members and acknowledged their perseverance and dedication to attaining this prestigious credential.

Napa Valley College unveils new wine education center

Napa Valley College has embarked on an exciting development with the imminent construction of the Wine Spectator Wine Education Center, designed to elevate its renowned Viticulture and Winery Technology (VWT) program. Funded by a generous $10 million grant from Marvin Shanken of Wine Spectator and an additional $2.5 million from the estate of Evelyn Allen, this new 7,000-square-foot facility aims to set a new standard in wine education by merging advanced technology with practical learning. This center will feature adaptable sensory classrooms and a laboratory with state-of-the-art lab stations. As the first phase of a larger project, this initiative underscores Napa Valley College’s pivotal role in advancing the California wine industry’s future. Looking ahead, the college plans to raise additional funds for a Wine and Hospitality Training Center, focusing on wine marketing, sales, and hospitality, to further enhance students’ real-world skills and employment prospects in the wine sector. If you love Napa Valley wine, this is welcomed news.

Climate & Sustainability

Why one Sonoma County vineyard is seeing bud break weeks before others

La Prenda Vineyards in the Sonoma County region of Los Carneros is experiencing an early bud break due to unique local conditions, including warmer soil temperatures bolstered by recent rains that have retained heat. Contrastingly, other vineyards across Sonoma County remain in dormancy, waiting for warmer weather. Ned Hill, who manages a large area of vineyards, attributes the early bud break at his Wildcat Mountain site to its elevation and the warmth of winter storms. While other vineyard managers in the region delay pruning to avoid early bud break and potential frost damage, all are vigilant of the varied microclimates affecting different areas, making the timing of bud break non-uniform across Sonoma County.

Tablas Creek Vineyard Blog: Thinking about the Box in Which we are Thinking Inside the Box

Tablas Creek winery proprietor, Jason Haas, made the innovative decision to release a portion of the 2021 Patelin de Tablas Rosé in a Bag in Box (BIB) format, marking a pivotal moment for the brand. Despite a short timeline and initial concerns about packaging aesthetics, the launch exceeded expectations, with 300 3L boxes selling out rapidly. Encouraged by this success, the winery expanded its BIB offerings and aimed to enter retail markets. Collaborating with Really Good Boxed Wine, they improved the design and functionality of the packaging, making it both retail-friendly and sustainable. This upgraded packaging addressed challenges related to shelf placement, consumer perception, and shipping, all while communicating the product’s premium quality and sustainability. The Paso Robles winery plans a significant release of the 2023 Patelin de Tablas Rosé in this new packaging, with ambitions to expand distribution nationally through select retailers and possibly restaurants, underscoring the industry’s growing recognition of BIB wines’ quality and environmental benefits.

Wine News You Have to Read to Believe

Intruder spills 60,000 litres of wine worth €2.5m at Spanish winery

An intruder caused a loss exceeding €2.5 million at the Cepa 21 winery in Spain by spilling 60,000 litres of their premium wines, Horcajo and Malabrigo. The event occurred early Sunday at 03:30 local time, with the perpetrator showing familiarity with the winery’s secure tanks and premises, suggesting inside knowledge. Although no suspects have been identified, and there’s no specific suspicion on employees, CCTV captured a hooded figure adeptly navigating the winery and opening the tanks. Police are currently investigating the incident at the winery, situated in Castrillo de Duero, north-western Spain.

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