Wine Industry News Round-Up for the Week Ending March 22, 2024

James Hall is repurchasing Patz & Hall Winery from Ste. Michelle Wine Estates, signaling a return to its roots and emphasizing Hall's commitment to its quality. Meanwhile, new USDA regulations are causing confusion among small organic wine importers, while Sauvignon Blanc shows growth in both sales value and volume in the US wine market.

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In winery acquisitions, co-founder James Hall is buying back Patz & Hall Winery from Ste. Michelle Wine Estates, symbolizing a homecoming for the brand and highlighting Hall’s commitment to maintaining its quality and legacy. Meanwhile, new USDA regulations are causing chaos for small organic wine importers, sparking concerns about the impact on operations and the organic wine market. In consumer trends, the US wine industry faced challenges in 2023, with shifting consumer attitudes towards wine and declining sales, while Sauvignon Blanc showed growth in both sales value and volume. Additionally, winemakers are venturing into extreme terrains to produce unique wines, battling harsh conditions in pursuit of unparalleled flavor profiles and environmental stewardship. On the culinary front, a new private members club and wine brand, Domus Artium Reserve, has been launched by iconic chefs and winemakers, offering exclusive access to culinary, wine, and arts experiences. Lastly, tickets are on sale for Napa Valley’s Ultimate Wine Auction Weekend, featuring intimate dinners, winery experiences, and philanthropy supporting youth mental health initiatives.

Winery Acquisitions

Exclusive: Patz & Hall Co-Founder James Hall Buys His Winery Back

After being sold to Ste. Michelle Wine Estates in 2016, Patz & Hall, renowned for its Sonoma Pinot Noir and Chardonnay, is now being bought back by co-founder James Hall and a group of investors as Ste. Michelle shifts its focus away from California to concentrate on Washington brands. The return to ownership symbolizes a homecoming for Hall, who expressed his deep passion for winemaking and determination to continue leading the brand. Founded in 1988 by Hall and Donald Patz, Patz & Hall was renowned for its exceptional vineyard-designated Pinot Noir and Chardonnay blends, setting a high standard in the industry. Hall’s dedication to the brand’s Chardonnay program and reliance on prestigious vineyard partnerships highlight his commitment to maintaining the quality and legacy of Patz & Hall, signaling a new chapter for the winery under his leadership.

Wine Industry Regulation & Rules

New USDA Regulations Are Sparking Chaos for Small Organic Wine Importers | VinePair

The introduction of the USDA’s Strengthening Organic Enforcement (SOE) final rule, the most significant update to organic regulations since 1990, has caused confusion and concern among small organic wine importers. Aimed at enhancing the integrity of the organic supply chain, the rule mandates organic certification for all businesses handling organic goods, not just producers. This shift, seeking to boost consumer trust through better traceability and enforcement, has left many importers grappling with the new requirement’s implications, struggling with the lack of clear guidance from regulatory bodies. Amidst this uncertainty, importers fear the impact on their operations, with some rushing shipments and others reconsidering their business models. Despite attempts to clarify these regulations, the USDA’s communication has been unclear, leaving many small businesses feeling overlooked and unprepared for the changes. The situation highlights broader issues within the organic certification process and the challenges small importers face in adapting to regulatory shifts, potentially disrupting the organic wine market.

Wine Consumer Trends 

The Big US Wine Market Roundup | Wine-Searcher News & Features

The Wine Market Council conference in Napa presented data portraying a challenging 2023 for the US wine industry, marked by a 9% drop in wine shipments. The decline in sales was dissected across demographics, revealing shifting consumer attitudes towards wine, notably that 47% of consumers drink wine for relaxation, eclipsing other reasons such as taste or its pairing with food. Interestingly, wine is losing ground as the preferred choice for casual dining at home among wine drinkers, with alternative beverages gaining favor. Despite the struggle, insights indicated specific consumer preferences and trends, such as the majority of US wine drinkers being women, an increased average bottle price, and varied preferences for foreign wines, with Italy being the most popular. Notably, the council debunked the idea that cannabis is significantly impacting wine sales. The session also addressed the declining appeal of wine to younger, non-white demographics, suggesting a need for the industry to adapt its marketing strategies to a more diverse and changing consumer base. The conference highlighted the hard truths facing the wine market while also pointing towards potential pathways for recovery and growth.

Off-Premise Sales Value by Varietal – Sauvignon Blanc shows growth in both value and volume

Sauvignon Blanc stands out in off-premise sales data, showing growth in both sales value and volume, making it the only varietal among the top 10 to exhibit this trend. Pinot Gris also saw an increase in sales value but a slight drop in volume, emphasizing the appeal of white wines. In contrast, Cabernet Sauvignon, Chardonnay, and sparkling wines experienced a slight decline in sales value, although their volume declines were less significant compared to other varietals. Rosé wines, despite a decrease in sales, saw an increase in average bottle prices, maintaining their position as one of the top three most expensive wines among the top 10 varieties, as detailed in the Wine Analytics Report’s regular Industry Metrics.

Red Blends Lead Central Coast Shipments

Central Coast wineries rank as the third most active in direct-to-consumer shipments, following Napa and Sonoma county wineries, with a total shipment value of $410.5 million and 714,172 cases over the past 12 months until February. While the overall shipment activity has decreased slightly by 3% in value and 10% in volume, driven primarily by red blends, there has been a notable 7% increase in average bottle price to $47.90. Red blends, Pinot Noir, and Cabernet Sauvignon were the leading varietals in shipments from the Central Coast, comprising 56% of the total value and 48% of the volume, with red blends accounting for the highest share at $97 million. Despite this dominance, consumers show appreciation for the region’s diverse wine offerings, with various wine types falling under the “other” category experiencing growth in both value and volume, as reported by WineBusiness Analytics/Sovos ShipCompliant in their monthly Wine Analytics Report.

Viticulture in 2024

Why Winemakers Are Battling Extreme Terroirs | SevenFifty Daily

Winemakers are venturing into extreme terrains, battling harsh altitudes, latitudes, and climates to produce unique wines that reflect the adaptability and innovation of the industry. From the high-altitude vineyards of Armenia and Lebanon to the frost-prone regions of Canada and rattlesnake-filled hills of California, these pioneers face myriad challenges, including difficult access, extreme weather, and labor shortages, all for the sake of cultivating distinct grapes that promise a future for winemaking under the shadow of climate change. While such endeavors present significant hardships, like intensive labor for vine management and the risk of crop loss due to unforeseen natural events, the pursuit of these remote viticultural areas is driven by a desire to produce wines with unparalleled flavor profiles, increase biodiversity, and respond creatively to global warming. These efforts not only aim to secure the longevity of winemaking in traditional areas threatened by rising temperatures but also to revitalize forgotten lands with a rich history of viticulture, thereby supporting local economies and preserving an integral part of cultural heritage. The dedication of these winemakers to overcoming the obstacles of extreme terroirs demonstrates a deep commitment to environmental stewardship and the art of winemaking, revealing that, despite the difficulties, the rewards can indeed outweigh the risks.

Icon Chefs Launch New Members Club & Wine Brand

Thomas Keller, Yannick Alléno, And Carlo Cracco, World-Renowned Winemakers Michel Rolland And Riccardo Cotarella And Wine Critic Antonio Galloni Announce New Private Members Club, Wine And Culinary Venture

Domus Artium Reserve marks a groundbreaking venture launched by a constellation of culinary and wine luminaries, including chefs Thomas Keller, Yannick Alléno, Carlo Cracco, winemakers Michel Rolland, Riccardo Cotarella, and wine critic Antonio Galloni. Unveiled at a celebratory event in Milan’s iconic Ristorante Cracco, this venture announced two exclusive wines: a French Bordeaux blend resulting from a collaboration between Keller and Rolland and “Four Hands,” a pioneering French-Italian wine by Rolland and Cotarella. Membership to Domus Artium Reserve offers unparalleled access to culinary, wine, and arts experiences, including the unique opportunity for members to create their own wine with these oenological legends. The venture also promises access to exclusive events and clubhouses across Europe, starting with its first permanent clubhouse at Rome’s Palazzo Ruspoli. This initiative, the brainchild of Barrett Wissman and Gregory Salinger, aims to fuse the worlds of wine, food, social, and arts experiences, providing once-in-a-lifetime opportunities for discerning enthusiasts in some of the most opulent settings globally.

2024 Wine Auction Tickets in Napa

Tickets on Sale for Napa Valley’s Ultimate Wine Auction Weekend, May 31-June 1

The Collective Napa Valley Auction Weekend, set for May 31 – June 1, is poised to offer an unparalleled wine and food experience in the heart of Napa Valley. This event heralds the return of Auction Napa Valley in a new and revitalized format, alongside the popular Napa Valley Barrel Auction. Attendees will have the opportunity to enjoy intimate dinners and winery experiences, exploring the full mosaic of Napa Valley’s hospitality, cuisine, and acclaimed wines. The weekend is not only about indulgence but also philanthropy, with proceeds aimed at supporting youth mental health initiatives in Napa Valley. Organized by the Napa Valley Vintners, a trade association committed to environmental leadership and community support, the event embodies a commitment to quality, community, and the beauties of Napa Valley. With tickets available from March 25, wine lovers are encouraged to participate in this celebration of wine, food, and doing good, ensuring their spot in one of the most anticipated events in the wine world.

 

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