Team C&J
In the world of wine sales and acquisitions, E. & J. Gallo Winery has sold its former Wild Horse Winery facility in Paso Robles to Continental Wine Collection for $8 million while maintaining ownership of the Wild Horse brand. Meanwhile, grape growers in Australia’s Riverland region are advocating for a temporary halt on vine plantings to address the crisis of red wine oversupply, a situation that has led to significant challenges for the industry. California vineyard owners are also grappling with a downturn in the wine market, leading to vineyard removals to align with declining demand. Additionally, major wine industry groups are urging the Alcohol and Tobacco Tax and Trade Bureau (TTB) to harmonize U.S. wine labeling regulations with those of the European Union, particularly in using digital QR codes for displaying ingredient and nutritional information. In other news, Florida has emerged as a hot new market for premium wine, attracting high-income residents and fueling an unprecedented demand for high-end wine and spirits. Lastly, a study predicts record-breaking air temperatures in 2024 due to a moderate to strong El Niño event, posing significant challenges for vineyards worldwide.
Gallo Sells Wild Horse Winery Facility in Paso Robles to Continental Wine Collection
E & J. Gallo Winery has divested the former Wild Horse Winery facility in the Templeton Gap District of Paso Robles AVA to Continental Wine Collection for $8 million, maintaining ownership of the Wild Horse brand acquired from Constellation Brands in a 2019 deal. Continental Wine Collection, including Broken Earth, CV Wines, and Pull Wines, with Broken Earth led by Gerald Forsythe, plans to revamp and upgrade the facility for all its brands while retaining its current location and tasting lounge in Paso Robles. The historic Wild Horse Winery, founded in 1981 by Kenneth Volk, has undergone various ownership changes over the years, serving as a renowned winemaking hub for prominent industry figures, including Volk transitioning to Kenneth Volk Vineyards in Santa Maria after selling Wild Horse. The facility’s current capacity of approximately 250,000 cases is potentially expandable, as noted by vineyard realtor Jenny Heinzen, who facilitated the sale to Continental Wine Collection after being involved in the property’s sale to Peak Wines International back in 2003.
Grape growers in Australia’s Riverland, the nation’s largest wine region, are advocating for a temporary halt on vine plantings to address the crisis of red wine oversupply. This request emerged from discussions among farmers at a wine industry meeting, responding to the challenge of plummeting grape prices due to excessive production volumes. The crisis has been particularly severe in the Riverland, significantly affecting the region’s contribution to the Australian wine industry. The origins of the oversupply trace back to the 1990s, driven by tax incentive schemes that led to rapid vineyard expansion and were further exacerbated by a trade ban with China. Industry leaders, including former wine industry chairman Paul Clancy and Jim Caddy of the Inland Wine Regions Alliance, criticized the industry’s failure to anticipate and manage the glut, fearing detrimental consequences for producers and the potential loss of market relevance. Meanwhile, entities like Byrne Vineyards are adapting by focusing more on direct wine production to safeguard their profitability and independence in the sector.
Growers scrap vineyards as market dims
California is experiencing a pivotal downturn in its wine market, prompting growers across the state to remove vineyards in an effort to align with the declining demand for wine. Aaron Lange of LangeTwins Winery and Vineyards has already cleared 400 acres in the Lodi area, exemplifying a broader trend of vineyard removals aimed at correcting an industry-wide oversupply. This action reflects a significant response to continuous declines in wine sales over recent years, with industry leaders advocating for the reduction of approximately 50,000 acres, or 9% of California’s winegrape acreage. The surplus of grapes has forced wineries to adopt higher quality standards, lower purchase prices, and reduce spot market buys, leaving growers like James Renton with unharvested crops and no choice but to destroy unprofitable vineyards. The push for vineyard removal comes amidst new air quality regulations that complicate and increase the costs of clearing, adding financial strain and operational challenges for growers seeking to adapt to a contracting market. This situation is exacerbated by delays in securing contractor services for vine removal, risking further pest and disease spread among the remaining vineyards.
Leaders from prominent wine industry groups have approached the Alcohol and Tobacco Tax and Trade Bureau (TTB) with a proposal to align U.S. wine labeling regulations with those of the European Union, particularly in using digital QR codes for displaying ingredient and nutritional information. This move, discussed on February 29, aims to minimize trade impact and facilitate U.S. wine exports by ensuring consistency between U.S. and EU standards. Representatives from WineAmerica, the Wine Institute, and the National Association of Beverage Importers emphasized the benefit of harmonization for global competitiveness and consumer transparency. They argued that adopting QR codes would considerably ease the financial and logistical burden on small vineyards across the U.S., which face significant costs in changing labels to meet new requirements. Moreover, the discussions touched on defining what constitutes an ingredient versus a processing aid, with insights suggesting that most wine additives do not significantly alter the final product’s composition and thus, mandatory ingredient listing might overly burden producers without offering meaningful information to consumers. Additional commentary highlighted various concerns, ranging from the health benefits of moderate alcohol consumption to challenges in navigating TTB’s labeling approval process and suggestions for improving transparency and consistency within the agency.
Florida Is the Hot New Market for Premium Wine | Meininger’s International
Florida has rapidly become a burgeoning market for premium wine, significantly bolstered by its response to the pandemic and influx of high-income residents, including a notable number of technology workers seeking sunnier climes and remote work opportunities. The state’s relaxed COVID restrictions early in the pandemic made it a haven for those fleeing lockdowns, contributing to a population boom and establishing cities like Miami as vibrant, desirable locations for both living and entrepreneurship. This influx of new residents from tech and other sectors, along with a series of high-profile restaurant openings, has fuelled an unprecedented demand for high-end wine and spirits. Wine education and consumer sophistication regarding fine wines have also seen a rise, prompting an increasing number of wine producers and distributors to view Florida, and not just Miami, as a key market. The evolution of the local wine scene indicates a shift from mere growth to a more nuanced expansion across the state, with a diverse demand that spans from renowned international brands to niche natural wines. Florida’s ascendancy in the wine world is further highlighted by the growing media scene, competitive events schedule, and the distinct tastes of its markets, from Orlando’s preference for name brands to St. Pete’s interest in natural wines, marking it as a dynamic and promising arena for the wine industry.
Why Wine Stores Are Entering the Wedding Registry Business | SevenFifty Daily
Retailers across the country have expanded their services by introducing wine registries, a move that not only boosts revenue but also attracts new customers and enriches consumer education. This innovative offering arose during the pandemic, as smaller, more intimate weddings led couples to seek wine selection assistance from local retailers. Recognizing an untapped market, stores such as Gary’s Wine & Marketplace and Parcelle have since harnessed wine registries to cater not only to weddings but also to a range of events and personal milestones, allowing individuals to curate their own collections or explore new wines. Retailers like Folkways Wines have noted a significant uptick in customer engagement and sales through their registry services. These wine registries, supported by personalized sommelier advice, aim to demystify the wine-buying experience, offering a tailored selection that meets various budgets and preferences. Despite the current small percentage of total sales attributed to registries, the positive response, and customer satisfaction indicate a growing market with the potential for further development and integration with wedding planning platforms. Challenges such as state shipping laws and the need for enhanced technology solutions are being addressed to streamline and enhance the registry experience.
UK wine sales decreased by 10 million bottles in the build-up to Christmas – Decanter
UK wine sales experienced a significant downturn in the lead-up to Christmas, with a 4.1% decrease resulting in 10 million fewer bottles of wine sold during the festive trading period compared to the previous year. This decline extended across the alcohol sector, with spirits sales also falling by 7.1%, representing a reduction of 7.7 million bottles. Industry experts attribute these downturns to a government tax increase implemented last August, which added a 20% tax on wine and more than 10% on spirits amid an ongoing cost-of-living crisis. This tax hike not only discouraged consumer purchases but also led to a substantial £436m decrease in tax revenues from wine and spirits sales between September 2023 and January 2024, contributing to an overall loss of nearly £600m when including beer and cider. The Wine & Spirit Trade Association (WSTA) is now urging Chancellor Jeremy Hunt to lower alcohol duty and simplify the tax system in the upcoming Budget to support British businesses and reverse the negative impacts of the tax increase. Retailers are particularly concerned about proposed tax system changes that could introduce 30 different duty bands based on alcohol content, fearing it would complicate operations, deter international wine producers, and adversely affect consumer choice, businesses, and jobs within the UK’s alcohol industry.
Record surface air temperatures to hit vineyards in 2024. A study led by Dr. Congwen Zhu of the Chinese Academy of Meteorological Sciences predicts record-breaking air temperatures due to a moderate to strong El Niño event in 2024, significantly affecting the global climate, including key winemaking regions like Napa Valley. This southern oscillation, predicted to occur with a 90% chance, threatens to induce extreme weather phenomena such as wildfires, cyclones, and heatwaves. The implications for the wine industry are dire, with up to 85% of the world’s vineyards at risk from sunburned grapes and drought, exacerbating challenges already experienced in regions like Spain and Italy. With climate change rapidly outpacing the adaptation abilities of traditional winemaking practices, the economic fallout from such environmental shifts could cost the global economy upwards of US$3 trillion over the next five years, accentuating the urgent need for comprehensive strategies to mitigate the impacts on agriculture and the broader ecosystem.
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