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In February, alcohol sales saw a remarkable surge, with a notable 18% increase in volume, driven by a 28% rise in wine sales and a 16% uptick in beer and lager sales compared to the previous month. Kantar’s report also highlighted a decline in grocery price inflation, coupled with a 5.1% expansion in take-home grocery sales. Factors contributing to this growth include post-Christmas easing of price rises, increased consumer promotions, and a competitive retail landscape. Lidl emerged as the fastest-growing grocery retailer, while other major supermarkets like Sainsbury’s and Tesco also experienced growth. Moreover, there’s optimism regarding resolving the trade dispute between China and Australia regarding wine tariffs, potentially lifting barriers hindering Australian wine exports to China. However, not all news is positive, as evidenced by Salena Estate Wines, one of Australia’s top 20 wine producers, entering administration due to various challenges including ongoing China wine tariffs and recent floods, reflecting broader struggles within the wine industry.
Alcohol sales rebound in February
Alcohol sales experienced a significant increase in February, as reported by Kantar, with a notable 18% surge in volume, aided by a 28% jump in wine sales and 16% more beer and lager sales compared to the previous month. This period also saw a drop in grocery price inflation to its lowest in two years at 5.3%, while take-home grocery sales expanded by 5.1% in value. Kantar highlighted the easing of price rises and an uptick in consumer promotions post-Christmas, contributing to a higher spend on offers. Lidl emerged as the fastest-growing grocery retailer with a 10.9% sales boost, while other major supermarkets like Sainsbury’s and Tesco also saw growth, albeit at a slower pace, with increments in their market shares as well. Additionally, the report noted varying degrees of sales increases across other retailers such as Aldi, Asda, Morrisons, Waitrose, Co-op, and Ocado, reflecting a competitive retail landscape.
Is the Arabian peninsular the next growth area for fine wine?
Bonham’s new global head of wine and spirits, Amayès Aouli, sees the Arabian Peninsula, particularly Dubai with its recently reduced tariffs on fine wine, as an emerging growth area for fine wine. Reflecting on his travels to Qatar, Aouli notes the region’s potential due to its developing food and wine scenes. This interest extends to Asia and the Middle East at large, where the market has shifted from being predominantly China-focused to a more diversified landscape. Aouli highlights how countries like South Korea and Singapore are showing dynamic wine scenes and robust growth in fine wine sales, alongside a strong collector base in Taiwan and emerging potential in Vietnam, Indonesia, and Malaysia, despite current barriers. This diversification away from a singularly China-dominated market to a broader, more fragmented regional focus signals shifting trends in the global fine wine market, with Bonham’s reinforcing its interest through planned expansions and new appointments in Asia, Europe, and the US.
China Wine Dispute May Be Resolved in Weeks, Australian Trade Minister Says
The Australian Trade Minister, Don Farrell, expressed optimism that the trade dispute with China regarding tariffs on Australian wine could be resolved within weeks. This development could eliminate one of the last barriers hindering Australian wine exports to China, a market previously worth about $800 million annually. Relations between Australia and China have been improving, leading to the lifting of trade barriers imposed by Beijing in response to Australia’s call for an inquiry into the origins of COVID-19. These barriers affected various Australian commodities including barley, wine, and coal. A review of wine tariffs initiated by Beijing last year is expected to result in their removal, as indicated by Farrell’s recent discussions with China Commerce Minister Wang Wentao. The Australian government has been confident that the tariffs will be lifted early in 2024.
French Study Reveals the Vulnerability of Grape Varieties to Drought
A study by INRAE and the University of Bordeaux has assessed the drought resistance of 30 global grape varieties using a unique method that measures their vascular system’s water stress resilience. The study found traditional varieties like Ugni Blanc and Chardonnay to be among the most drought-vulnerable, while Pinot Noir, Merlot, and Cabernet Sauvignon showed higher resilience. Syrah and Sylvaner also demonstrated good tolerance to dry conditions. The research suggests that wine regions, even those not traditionally arid, could be at risk if they rely heavily on vulnerable varieties, highlighting regions like Cognac in France and Marlborough in New Zealand. Recommendations include diversifying grape varieties to mitigate losses during droughts and enhance disease resistance. Paradoxically, some new hybrids bred for mildew resistance were among the least drought-resistant. The study underscores the importance of choosing grape varieties based on multiple factors, including drought resistance, to adapt to changing climates effectively. Sylvain Delzon is developing a map to identify Northern Hemisphere winegrowing areas most at risk for drought, aiming for better preparedness in the wine industry.
Oregon State University researchers are pioneering novel coatings to shield Northwest wines from smoke-infusion, a rising concern due to more frequent wildfires from climate change. These innovative coatings, when sprayed onto grapes, protect them from smoke flavors that bond with the fruit’s skins and sugars, making them difficult to wash off. As the fruit grows, the coatings expand, effectively blocking or absorbing smoke-derived phenols, which can then be removed before wine production. This development is crucial for Oregon’s wine industry, which faced over a 20% economic downturn in 2020 due to smoke impacts. Winemakers, acknowledging the challenge, are exploring various techniques—including adjusting harvest timings, gentle pressing, and less-toasted barrels—to mitigate smoke flavors. Some are turning to producing rosé wines, which require minimal skin contact, thus reducing smoke flavor absorption. The ongoing focus, however, remains on finding sustainable solutions that allow the production of traditional red wines without the compromise of smoke taint, underlining the urgency to adapt to changing climate conditions impacting viticulture.
28th Premiere Napa Valley brings in $3 million
The 28th Premiere Napa Valley, an annual fundraising event for the Napa Valley Vintners, successfully raised $3 million, marking a significant contribution to the trade group’s annual budget. Although this amount represents a slight decrease from the $3.4 million raised in 2023, it shows an improvement over the $2.7 million collected in 2022. The auction, held at the Culinary Institute of America at Greystone, featured a notable sale of a five-case lot of Cabernet Sauvignon from Fairest Creature, which sold for $70,000, compared to the $100,000 fetched by a similar lot from BRAND Napa Valley the previous year. Throughout the event, hundreds of vintners, buyers, and collectors bid on 166 wines, contributing to NVV’s efforts in lobbying, community outreach, and the protection of the Napa Valley brand. Coordinated by Sotheby’s, this event allowed for the sale of exclusive wines, emphasizing Cabernet Sauvignon, to restaurants and retailers, providing them a unique offering not available to others.
What Are Your Career Options After Life as a Sommelier? | SevenFifty Daily
Sommeliers contemplating a career shift have several pathways to leverage their skills in the wine industry beyond the restaurant floor, encompassing roles in sales, distribution, writing, consulting, and education. Drawing on the diverse skill set acquired from their sommelier experience—including deep wine knowledge, customer service, business acumen, and negotiation skills—professionals can find new opportunities that offer better work-life balance, flexibility, or new challenges. Industry experts recommend leveraging personal and professional networks, exploring interests within the wine sector, and considering how one’s unique skills can translate into different aspects of the wine business. Transitioning sommeliers have found success by reimagining their skill sets for roles outside traditional restaurant settings, finding that communication, organizational ability, and the capacity to empathize and collaborate are highly transferable. Managing expectations regarding starting positions and salary levels is crucial, but the breadth of experience sommeliers bring can provide a strong foundation for career growth in new roles within the wine industry.
Pennsylvania Wine Production Rises to Fourth Nationwide, Boosting State Economy
Pennsylvania has ascended to the fourth position in U.S. wine production, as reported by the Pennsylvania Department of Agriculture’s 2023 study, significantly boosting the state’s economy. This growth, detailed in the Economic Impact of the Pennsylvania Grape & Wine Industry report, highlights the industry’s responsibility for over 10,000 jobs, and a yearly economic contribution of $1.77 billion. Grape production has seen an increase, adding nearly 970 tons annually from 2018 to 2023. The Shapiro administration supports this upward trend through investments in agriculture that aim at enhancing jobs, conservation, and economic development, along with backing research in higher education to secure the industry’s future, emphasizing the sector’s considerable benefit to Pennsylvania’s economic and communal well-being.
One of Australia’s top 20 wine producers by volume has entered into administration
Salena Estate Wines, recognized as one of the top 20 largest wine producers in Australia, has entered into administration due to the detrimental impact of ongoing China wine tariffs. Producing over 10,000 tonnes of wine annually for both domestic sales and exports primarily to Asia, North America, and Europe, the company is now facing financial challenges. Administrators from KPMG are exploring restructuring or selling the business to preserve its operations and safeguard stakeholders’ interests. The broader Riverland wine region faces similar pressures, including low grape prices and an oversupply worsened by reduced consumption and tariffs. The situation has reached a critical point, affecting grape growers’ livelihoods, with calls for immediate government intervention to address both short-term needs and long-term sustainability. Added to Salena Estate’s woes are recent floods, contributing to what has been described as a perfect storm for the industry.
