Menu
Menu
Tina and Brett
The wine industry is confronting a multitude of challenges and undergoing significant changes. In California, a call for the net reduction of more than 12,000 vineyard hectares has been made to address the state’s chronic oversupply and shifting consumer preferences towards RTDs, spirits, non-alcoholic beverages, and cannabis. The Miller Family Wine Co. is relocating its operations from Santa Barbara County to Northern California, citing frustrations with local regulations. Legal issues are prevalent, with Napa County taking Lindsay Hoopes of Hoopes Family Vineyard to court over alleged permit violations, and the county supervisors upholding Rutherford Ranch winery’s approval despite environmental concerns. The Rioja wine region in Spain is facing a crisis, with the bankruptcy of Marques de la Concordia Family of Wines highlighting broader sector-wide issues. Wine fraud and the push for transparency are spotlighted in Italy, as the EU introduces new labeling laws requiring nutritional values and ingredients on wine labels. In marketing, personalized closures are emerging as a signifier of luxury in the wine and spirits sector, with brands leveraging bespoke corks and screw caps to engage consumers and align with sustainability goals. These developments reflect the dynamic nature of the wine industry, grappling with economic pressures, regulatory challenges, environmental concerns, and evolving market trends.
Call for net reduction of more than 12,000 vineyard hectares in California – Decanter
Jeff Bitter, president of Allied Grape Growers, has issued a call for California grape growers to remove over 12,000 hectares of vineyards to mitigate the state’s chronic oversupply, influenced by shifting consumer preferences. Despite removing 7,280 hectares post-2019, ongoing excess production and changing market dynamics—such as the rise of RTDs, spirits, non-alcoholic beverages, and cannabis—necessitate further reductions. Targeting specific regions and varieties, Bitter has detailed the overproduced acres that should be taken out, from Central Valley’s low-cost wine grapes to Sonoma’s old vines. He asserts that these measures are essential for right-sizing the market and urges immediate action to ensure the industry’s future sustainability.
The Miller Family Wine Co., a longstanding wine producer in Santa Maria of Santa Barbara County, has decided to move its operations to Northern California due to escalating frustrations with local regulations they find overly restrictive. The family-owned company, which has been in agriculture for five generations and in the wine industry since the 1970s, feels limited by the county’s stringent wine ordinance, aggressive air quality rules, and inability to expand at their current site. Despite the emotional difficulty of the decision, the company is relocating to foster growth and scale their business beyond the constraints experienced in Santa Barbara County. With no interest from other wineries in their soon-to-be-vacated facility, layoffs have already occurred. The Millers are keeping details about the new locations under wraps until the deal finalizes. Their departure underscores a growing concern about the capacity for winemaking in the county, which is increasingly insufficient relative to the volume of grapes grown.
Napa County puts Hoopes winery leader in witness stand
Napa County has brought Lindsay Hoopes, of the Hoopes Family Vineyard, to testify over alleged winery operations without proper county permits. The county contends that the winery, purchased by the Hoopes family in 2017, is illegally hosting tastings and events, which are not covered by the winery’s original 1984 approval. Lindsay Hoopes, a former prosecutor and part of the Hoopes legal team, defended their position, stating that they provide private wine tastings by appointment and questioned the county’s vague regulations. Meanwhile, the county has increased the budget for Renne Public Law Group, representing them in the case, due to the complexity of the litigation, with the figure set to revert upon the case’s conclusion. Lindsay Hoopes insists the winery believes it has the right to offer certain types of tastings, while the county’s legal team presents evidence suggesting the winery is advertising and conducting tastings without requisite permissions.
Napa County supervisors uphold Rutherford Ranch winery approval
The Napa County Board of Supervisors is poised to deny an appeal by Water Audit California, tentatively supporting the legalization of Rutherford Ranch winery’s code violations and approving an increase in visitor numbers. Despite environmental concerns raised about this Napa Valley winery‘s impact on local water sources, particularly on Conn Creek and its aquatic life, the board unanimously agreed with the Planning Commission’s earlier decision. The winery, on Silverado Trail, had participated in a voluntary code compliance program to correct violations including excess employees, visitors, and unpermitted structures near a stream. The Planning Commission’s conditions for approval involved structural improvements, habitat restoration, and reduced well water usage. The board’s eventual resolution will include a pumping rate cap and an environmental survey requirement, reflecting a heightened focus on adhering to the public trust doctrine for resource protection, particularly regarding waterways. The county has defended its application of the doctrine and environmental stewardship in a comprehensive report responding to the appeal’s arguments.
Rioja Crisis Deepens as Producer Goes Bust | Wine-Searcher News & Features
The Rioja wine region in Spain is facing a severe crisis as the Marques de la Concordia Family of Wines (MCFW) collapses into bankruptcy. The once-thriving company, associated with cultural icons like Ernest Hemingway and the Spanish national soccer team, now grapples with €64.4 million in debt and a dramatic fall in turnover. Amidst fraud allegations, former director Victor Redondo Sierra is accused of misappropriating €45 million, which has led to investigations into the cause of the bankruptcy—whether it was due to internal mismanagement, the pandemic, or both. The crisis exemplifies broader issues in the Rioja region, including a supply-demand imbalance, mounting criticism over production models, and sector-wide dissatisfaction that has led to growers blocking roads and calling for significant changes, such as vineyard reduction and increased grape prices. This challenging scenario is underscored by the bankruptcy of another company, Melquior, and anticipated closures of cooperatives and vineyards, signaling deepening turmoil in one of Spain’s most iconic wine-producing areas.
On Wine Fraud and Transparency in Europe
In Italy, the wine industry has been shaken by allegations that broadcast on Rai 3’s “Report” show, suggesting widespread fraud wherein grapes from Puglia were being illegally used by Veneto winemakers to inflate their wine production, disobedient to D.O.C. regulations. This scandal arises as the European Union initiates a new wine-labeling law, mandating producers to include nutritional values and ingredients on labels, with full application starting from the 2024 harvest. Although ingredients can be provided online, this move towards greater transparency is hoped to inform consumers more thoroughly about what goes into the wines they drink. It could potentially influence similar changes in the U.S., where the Alcohol and Tobacco Tax and Trade Bureau is exploring nutritional and allergen labeling. These measures won’t eradicate wine fraud, but they’re seen as a significant step in informing consumers about the true nature of wine production, potentially dispelling the traditional mystique surrounding winemaking and providing greater clarity into a wine’s true character.
Are personalised closures the latest signifier of luxury?
The luxury wines and spirits sector is recognizing the marketing potential of bespoke closures, as brands increasingly treat corks and screw caps as essential “prime real estate” for consumer engagement. Global closures companies like Crealis and Amorim are noting a surge in demand for personalized closures, with Crealis predicting this will be a key trend in 2024. Drinks producers are embracing this trend to distinguish their products, offering textured screw caps, fluorescent foils for the nightclub scene, and even closures with embedded ‘jewelry stones’ or laser engravings. Not only do these creative closures serve a marketing purpose, but they also align with corporate sustainability goals, as seen with Exton Park’s digitally printed, eco-friendly foils and MA Silva’s introduction of Neo Select corks that eschew microplastics and glue for grape-seed based polyols, enhancing the closure’s natural composition. This new direction in closure design is providing brands with innovative avenues to assert their uniqueness while strengthening their sustainability narratives.
