Wine Industry News Round-Up for the Week Ending 4/05/24

The Australian wine industry faces US market decline amid Chinese tariff hopes, while New Zealand navigates international acquisitions and Maori involvement, echoing global wine trends.

Table of Contents

The Australian wine industry faces a critical challenge in declining US market interest, overshadowing the hope of recovery from Chinese tariffs, while New Zealand grapples with increasing international acquisitions amid Maori communities’ push for greater involvement. In viticulture, research explores grapevine-root interactions for enhanced plant health, and the US considers seven potential new AVAs, each highlighting unique terroir characteristics. Meanwhile, the Wine Advocate undergoes significant changes, appointing a new Editor in Chief with a potential shift towards European wine coverage, reflecting broader transformations in wine media trends.

New Zealand and Australian Wine Update

China Won’t Solve Australian Wine’s Biggest Problem | Wine-Searcher News & Features

The core issue facing the Australian wine industry isn’t the tariffs imposed by China but rather its declining popularity in the United States, which marks a significant challenge beyond the recently lifted Chinese tariffs. In 2020, Treasury Wine Estates, a prominent Australian wine company, saw its stock prices tumble not due to COVID-19 or Chinese tariffs but because of plummeting sales in the U.S., the world’s most crucial wine market. The initial hopes that Chinese market recovery would bolster the Australian wine industry are dimmed by the realization that the U.S. market’s disinterest is a more pressing concern. The Australian wine industry’s struggle in the U.S. is exemplified by declining sales even in high-end stores, with experts pointing out a lack of sales reps and interest. Despite Treasury Wine Estates’ optimistic plans for re-engaging with the Chinese market, the broader issue of dwindling American interest in Australian wines remains unaddressed, posing a substantial long-term challenge for the industry.

Generation game: Who stands to inherit NZ’s wine industry?

International companies are increasingly buying vineyards in New Zealand, while Maori communities are fighting to get a bigger piece of the pie. Large international wine companies are attracted to New Zealand’s cool climate and reputation for Sauvignon Blanc. They are buying vineyards, which worries some New Zealanders who believe the land is being sold off to foreign interests. Māori people have a long history in New Zealand and believe they should have more control over the land. They are working to establish themselves in the wine industry and want to see more sustainable practices. The future of New Zealand’s wine industry is uncertain. It is likely that both international companies and Maori communities will play a role, but the exact balance is yet to be determined.

Wine Industry Trends

Jamie Goode: Is it possible to scale and still make interesting wine? – winemag

Scaling up in the wine industry is fraught with challenges not seen in other areas such as the craft beer scene, largely due to wine’s quality being directly tied to the quality of its grapes. Unlike beer, where flavors can be maintained through scaling thanks to consistent ingredients, wine’s dependence on grape quality means scaling up often leads to a compromise in wine excellence. Large wine companies face the dilemma of maintaining quality while expanding production, a task complicated by the temptation to use inferior vineyard sources to increase volume. While instances exist where strategic investments allow for growth without quality loss, the industry also has examples where expansion led to a decline in wine quality. The key issue is finding a way to grow without losing the essence that made the wine unique and valuable in the first place, acknowledging that not all growth is bad but requires careful management to ensure the original wine quality is preserved amidst expansion.

It’s ‘Official’: Kendall-Jackson and La Crema Join the NBA’s Wine Family

The NBA and WNBA have officially embraced the wine culture by partnering with Jackson Family Wines, who make some of California’s most popular Chardonnays, to make Kendall-Jackson and La Crema the leagues’ official wines, respectively. This collaboration will extend to Team USA for the 2024 Paris Olympics, reflecting a growing trend among basketball professionals who have been increasingly involved in the wine industry, either by launching their own labels or expressing their passion for wine. The choice of these particular wines aligns with the NBA’s and WNBA’s broader values of diversity and inclusion, highlighting the Jackson family’s commitment to supporting communities, including the LGBTQ+ community through their support for Equality California. Basketball fans can look forward to wine-centered activities, pop-up tastings, commemorative wines, and more, alongside the usual sporting excitement. This partnership is symbolic of wine’s role in fostering community and shared experiences, further cementing the connection between the worlds of wine and professional basketball.

Viticulture & Sustainability

Research revealing grapevine root relationships – Good Fruit Grower

Researchers at Penn State University are exploring the intricate relationships between grapevine roots and soil microbes, uncovering how these interactions affect plant health. Their findings indicate that the characteristics and location of a root can significantly influence the kinds of microbes that are attracted, including beneficial ones like mycorrhizae and harmful ones like phytophthora. The study also looks at how different rootstocks and cover crops impact the root microbiome and suggests that grapevine roots adjust their growth based on the type of ground cover present. To support beneficial soil microbe communities, recommendations include minimizing tillage, planting cover crops, and applying mulch. Professor emeritus David Eissenstat emphasized the diversity among roots in terms of size, age, and microbial populations. This research, which is still in the early stages due to the complexity of studying underground ecosystems, aims to provide insights on enhancing grapevine health through better understanding of root-microbe interactions.

An Insider’s Look at 7 Potential New AVAs | SevenFifty Daily

The U.S. is reviewing proposals for seven new American Viticultural Areas (AVAs) across California, Washington, and Texas, each showcasing distinct terroir traits. From the complex soils of Columbia Hills AVA in Washington, favoring Cabernet Sauvignon and Merlot, to the granite-based elegance of Llano Uplift AVA in Texas with Italian varietals, like Merlot and Chardonnay, the regions promise excellence. Mill Creek-Walla Walla Valley in Washington focuses on plush Merlot and Cabernet Franc, whereas Mount St. Helens AVA resembles Oregon’s volcanic soils for Pinot Noir. Sebastopol Hills AVA in California offers high acidity Pinot Noir and Chardonnay, while Suscol District AVA in California is known for tannic reds and crisp Sauvignon Blanc. Each potential AVA seeks to spotlight its unique environmental elements, emphasizing the varied and specialized wine regions in the country.

Wine Media Trends

Wine Advocate Turns from America to Europe | Wine-Searcher News & Features

The Wine Advocate, a prestigious wine publication, is undergoing significant changes, including the appointment of William Kelley as the new Editor in Chief, signaling a potential shift in focus from American to European, particularly French, wines. Kelley, an Oxford University graduate with a background in the wine industry, will review wines from France’s top regions: Bordeaux, Burgundy, and Champagne. Meanwhile, Joe Czerwinski will continue reviewing wines from Napa Valley, New York, and Canada. The change in leadership marks the first time a British editor has led the traditionally American-focused publication. This transition comes after the Advocate’s acquisition by Michelin in 2020, emphasizing a potential alignment with French-style wine criticism. Additionally, coverage changes extend to South America, with Matthew Luczy taking over the Argentina and Chile portfolio. Despite the evolving landscape of wine criticism, where the impact of critics on consumer purchasing decisions may have diminished, these shifts at the Wine Advocate could redefine its influence and focus in the wine world.

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