Team C&J
In a significant legal development, Franz Haas, a renowned Italian wine producer, has filed a lawsuit against Winebow, a prominent importer and distributor, alleging severe financial harm and interference with business relationships. The conflict originated from the termination of their distribution agreement in October 2021. An Italian arbitration court ruled in favor of Franz Haas in June 2023, affirming the contract’s conclusion. However, Winebow contends that the agreement is valid until October 2026. Amid this dispute, Franz Haas has suspended shipments to the U.S. and faced obstacles as Winebow purportedly impeded negotiations with new importers and falsely claimed exclusive distribution rights. This alleged interference has resulted in substantial financial losses for Franz Haas, projected to exceed $30 million by 2024. The lawsuit seeks unspecified damages, legal expenses, and the restitution of trademarks and marketing assets, marking a pivotal moment in the ongoing battle between the two companies.
Italian Wine Producer Sues Winebow
Franz Haas, an Italian wine producer, is suing Winebow, an importer and distributor, for causing substantial financial damage and interfering with its business relationships, according to a federal lawsuit. The dispute began when their distribution contract was terminated in October 2021. An Italian arbitration court sided with Franz Haas in June 2023, confirming the contract’s end, but Winebow argues that their agreement extends until October 2026. Consequently, Franz Haas halted shipments to the U.S. and faced additional complications as Winebow allegedly obstructed new importer negotiations and falsely presented itself as the exclusive distributor. This interference reportedly cost Franz Haas millions, with the company estimating over $30 million in losses by 2024. Franz Haas seeks unspecified damages, legal costs, and the return of its trademarks and marketing assets, following the death of its owner in 2022. Meanwhile, Winebow has a history of legal disputes, exemplified by its December 2023 lawsuit against Bogle Vineyards.
Labor-Related Class Action Lawsuits Filed Against Napa Valley Wineries
Several Napa Valley wineries are facing class-action lawsuits this year over alleged labor code violations in California. The most recent case involves Refugio Arreola, a former employee of Treasury Wine Estates, who claims the company failed to pay minimum and overtime wages, did not allow uninterrupted meal and rest breaks, and neglected to reimburse necessary business expenses. Similar allegations have been made against other wineries, including V. Sattui Winery and Fior Di Sole LLC. These complaints highlight issues such as unpaid work hours, failure to provide mandated breaks, improper wage statements, and delayed final wage payments. The lawsuits seek unspecified damages and address the broader concern of labor practices within the Napa Valley wine industry.
Acquisitions
A former top Google exec just bought two celebrated Sonoma wineries. These are his ambitious plans
David Drummond, former chief legal officer of Google’s parent company, Alphabet, announced the acquisition of Idlewild Wines and Armida Winery in Healdsburg, incorporating them into his ambitious wine company, Overshine Wine Co. He aims to diversify and make wine more accessible, particularly to people of color. Drummond, who previously bought a 550-acre vineyard named Las Cimas, plans to use it for a new wine brand called Comunità, featuring unconventional grape varieties. Idlewild founder Sam Bilbro remains involved as the managing partner. Drummond wants Overshine to be approachable, with a focus on inclusivity and cultural relevance. He also envisions creating a tech-inspired incubator program to help underrepresented individuals start their own wine businesses. This initiative reflects his broader goal to break down barriers in the wine industry and expand its customer base.
Napa’s Rocketing Fees See Winery Visits Fall | Wine-Searcher News & Features
A Silicon Valley Bank webinar highlighted that rising tasting room fees and general costs in Napa Valley are driving consumers towards more affordable wine regions. The Direct-to-Consumer (DTC) wine sales survey shows a decline in winery visits in Napa and Sonoma counties, with Napa seeing a 37% drop since 2016. Despite DTC wine sales accounting for a significant 72% of average winery sales, internet orders remain a small fraction at just 8%. High costs, including $75 tasting fees in Napa and soaring hotel prices, are diminishing consumer interest. Consequently, regions like Virginia and Oregon are seeing increased visits while areas like Paso Robles face declining club memberships and DTC sales. Industry experts suggest wineries are misusing social media for marketing, advocating a shift towards platforms like LinkedIn to attract affluent customers. Overall, the wine market is experiencing mixed trends, with expectations of better performance following a market correction.
The Story Behind the American Wine Crisis | SevenFifty Daily
The first half of 2024 has brought challenging times for the U.S. wine industry, with reports indicating a decline in domestic and international wine sales due to factors like inflation, changing consumer preferences, and increased competition from other beverages. The global wine sector has seen a similar decline, impacting regions worldwide. Despite these challenges, there are reasons for cautious optimism, such as positive sales growth in premium U.S. wineries and potential opportunities in mid-range wine categories. Winery owners and industry leaders are adapting to the changing landscape, with some implementing strategies like adjusting production levels, streamlining operations, and diversifying sales channels to weather the storm. Collaboration and a focus on local wines are seen as crucial in promoting industry health and overcoming obstacles ahead. While some boutique wineries face struggles, others are finding ways to pivot and navigate the evolving marketplace to ensure long-term sustainability and success.
Halter Ranch has achieved a significant milestone by becoming the first certified organic vineyard in Fredericksburg, Texas. The California-based estate’s luxury tasting room, Halter Ranch Texas, earned this certification from California’s Certified Organic Farmers (CCOF) for its 1.17-acre vineyard on Texas Highway 290. This marks Halter Ranch’s continued commitment to sustainable farming and producing wines from 100% organic grapes. Spearheaded by General Manager Bryce Mullins and Winemaker Kevin Sass, the project involved extensive planning to meet CCOF’s rigorous standards. The vineyard will begin planting Blanc du Bois grapes, native to the southern U.S., aiming to produce a sparkling wine. The certification aligns with Halter Ranch’s mission of environmental stewardship, previously realized in Paso Robles, CA. Halter Ranch Texas, which opened in May 2024, also features a restaurant with locally sourced cuisine and offers wines such as Rosé and Sparkling Cabernet Sauvignon, collaborating with local organic grape farmers.
Old Vine Registry announces ‘vine hunt’ on first anniversary – Harpers Wine & Spirit Trade News
To mark its first anniversary, the Old Vine Registry announced a “vine hunt” initiative to further catalog and protect heritage vineyards globally. Over the next three years, individuals who contribute the most new vineyard entries (vines must be at least 35 years old) will receive annual prizes donated by industry leaders such as Wine Scholar Guild and JancisRobinson.com. The person with the most contributions after three years will win a $2,000 travel bursary for an Old Vine Conference field trip. The Registry, which launched in June 2023 and has added over 1,000 vineyards in the past year, aims to catalog 10,000 vineyards within the next three years. This effort, led by Alder Yarrow and co-founded by Sarah Abbott MW, seeks to increase awareness and preservation of old vines, while supporting producers through increased sales and profits. The initiative continues the mission set by Jancis Robinson MW to document the world’s oldest vineyards.
The American Vineyard Foundation Announces Funding for Industry Research in 2024
The American Vineyard Foundation (AVF) has announced its 2024/2025 funding for twelve viticulture and enology research projects, supported by voluntary industry contributions. Out of fifty-four proposals, projects were selected based on scientific merit and industry value, addressing critical concerns such as new irrigation strategies, combating climate change, and mitigating smoke taint issues. The funding also supports regional seminars to update growers and vintners on the latest research. AVF remains dedicated to sustaining valuable research, thanking the grower and vintner communities for their continued backing. AVF Chairman Nick Dokoozlian emphasized the importance of the upcoming industry research priority survey, urging participation to help guide future funding allocations.
Signorello Estate Appoints Michael Costley Winemaker
Ray Signorello, Jr., the proprietor of Signorello Estate in Napa known for Cabernet Sauvignon and Chardonnay, has appointed Michael Costley as the new Winemaker for the just-opened winery and caves. Costley takes over from Priyanka French, who led the design and construction of the new facilities alongside Consulting Winemaker Celia Welch and Viticulturist Steve Matthisson following the 2017 wildfires that destroyed the previous winery. With experience at esteemed locations like Gandona Estate and Far Niente, Costley’s background in viticulture and winemaking, paired with his education in enology and plant science, positions him well to lead Signorello Estate’s winemaking endeavors. Ray Signorello, Jr. expressed excitement about having Costley join the team, highlighting his expertise in both fields and eagerness to improve upon the estate’s already exceptional wines.
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