Episode 1 – Wine Robots?

Darioush Winery has expanded its Napa Valley holdings by purchasing a 21-acre vineyard near Yountville for approximately $10 million, adding to its now 65 vineyard acres in the region. Meanwhile, a significant portion of California's 2024 wine grape harvest faces the threat of going to waste due to an economic downturn and a lack of buyers, exacerbating the industry's ongoing challenges.

Table of Contents

  • Darioush Winery Acquisition: Darioush Winery has purchased a 21-acre certified organic vineyard near Yountville in Napa Valley for approximately $10 million, expanding its holdings to around 65 vineyard acres in Napa County.
  • California Wine Grape Harvest Woes: A significant portion of California’s 2024 wine grape harvest may go to waste due to a lack of buyers driven by an economic downturn, declining global wine consumption, increased imports, and high farming costs.
  • Australian Grape Crush Increase: In 2024, the Australian grape crush increased by 9% to 1.43 million tonnes, driven mainly by a rise in white grape varieties, despite ongoing market challenges and efforts to balance production with reduced global demand.
  • “Come Over October” Campaign: The “Come Over October” campaign aims to shift the narrative around wine and alcohol consumption by promoting wine as a beverage that brings people together and encouraging wine-related events and communal gatherings in October 2024.
  • Introduction of Oxin Vineyard Robot: The New Zealand-based tech company SmartMachine, in partnership with Pellenc America, Inc., is introducing the Oxin vineyard and orchard robot to California, marking a significant step towards integrating advanced technology into vineyard practices.

Acquisitions  

Darioush Buys Napa Valley Vineyard

Darioush Winery has purchased a 21-acre vineyard near Yountville in Napa Valley for approximately $10 million from Eric Grigsby and Mary Rocca. The vineyard, planted with 20 acres of vines and certified organic since 2005, produces Cabernet Sauvignon, Merlot, Cabernet Franc, and Syrah. It’s located near the intersection of Yountville Cross Road and the Silverado Trail. As of early 2024, Darioush owns around 65 vineyard acres in Napa County. Founded in 1998 by Darioush and Shahpar Khaledi, the winery has grown significantly from its origins in southern California. The plans for the newly acquired vineyard remain undisclosed. Grigsby and Rocca, who also own Rocca Family Vineyards and Palace Market, have not commented on the sale.

Industry Trends  

A major portion of this year’s California wine harvest could go to waste

A significant portion of California’s 2024 wine grape harvest may go to waste due to a dramatic lack of buyers for the grapes. This follows a devastating 2020 fire season that left many grapes unharvested due to smoke damage. This year, the issue is not smoke but an economic downturn within the wine industry itself, fueled by declining global wine consumption, increased imports, and high farming costs. As a result, vineyards such as D’Ambrosio in Napa have been unable to sell their grapes, facing potential losses as high as half a million dollars. This situation mirrors a broader trend, with grape sale listings hitting record highs and contracts being canceled or not renewed. Industry leaders have called for reducing vineyard acreage to address oversupply, yet many growers may simply abandon their crops, exacerbating the problem. If this trend continues, the current oversupply could lead to a severe shortage in the future, straining the long-standing relationships between growers and wineries.

Australian grape crush up 9%

In 2024, the Australian grape crush saw a 9% increase, totaling around 1.43 million tonnes, detailed in a report by Wine Australia. This upturn, following a previous low in 2023, remains below the 10-year average. The rise was primarily driven by white grape varieties, increasing by 19%, while red grapes experienced a decline. Chardonnay notably surpassed Shiraz in crush size. South Australia held the largest share of the crush, despite a 4% decrease. The total cash value of the 2024 vintage reached AU$1.01 billion, slightly higher than the previous year, although with a decrease in average value per tonne. The industry attributes the reduction in the crush partly to market dynamics, as growers and wine businesses aim to balance production with reduced global demand and oversupply. This context underscores the ongoing challenges faced by Australia’s wine industry, marked by shifting consumer preferences, climate change impacts, and the aftermath of trade disputes affecting exports.

Wine Marketing Trends  

Come Over October Campaign Hopes to Change the Narrative on Wine and Alcohol

“Come Over October” is a new campaign spearheaded by COME TOGETHER – A Community for Wine Inc., aimed at shifting the narrative around wine and alcohol consumption. Set to launch in October 2024, this national marketing initiative advocates for people to come together over a glass of wine to celebrate events or simply reconnect with each other. The campaign emphasizes the positive aspects of wine as a beverage that brings friends and family together, countering the negative connotations often associated with alcohol. Supported by industry partners and key patrons, the campaign aims to promote wine-related events, tastings, and experiences throughout October, encouraging communal gatherings both at home and in various wine regions. Through entertaining tips, wine education, and partnerships with wine associations, the campaign seeks to foster a sense of community and shared experiences centered around wine.

Viticulture & Sustainability  

New Oxin Vineyard Multitasking Robot to Be Introduced in California

In an exciting development, the New Zealand-based tech company SmartMachine is teaming up with Pellenc America, Inc. to introduce their innovative Oxin vineyard and orchard robot to the U.S. market, starting with California. The autonomous and multi-tasking robot has already shown success in New Zealand and Australian vineyards and orchards, and the first demonstrations in California’s North Coast are scheduled for late July. This partnership marks a significant step towards integrating cutting-edge technology into American vineyard practices, with Oxin poised to revolutionize tasks in vineyards and orchards.

Grape Listings and Temperatures Hit High

In preparation for the impending 2024 harvest, WineBusiness.com reported a surge in grape listings and high temperatures affecting vineyards in California. Grape listings hit a record high in June, with offers up 93% compared to the previous year. Bulk wine listings remained steady, while both grape and bulk listings hit a five-year high in June, marking the fifth month in 2024 to do so. The increase in listings also saw a rise in page views, suggesting heightened interest from potential buyers and sellers seeking competitive prices. As the industry gears up for harvest, issues like oversupply, market balancing, and concerns about quality and vineyard management are at the forefront. Additionally, challenges such as extreme heat waves and potential crop loss due to market demand fluctuations are factors shaping the upcoming harvest season. Leaders in the industry are emphasizing the need for proactive decision-making and quality maintenance to navigate the complexities of the current market conditions.

Growers Irrigate to Beat the Heat

As California faced dangerous heat conditions, particularly in regions like Wine Country, Lodi, and Paso Robles, grape growers proactively increased irrigation efforts to protect vineyards from the scorching temperatures exceeding 100 degrees Fahrenheit. Growers like Duff Bevill and Jim Lincoln ramped up irrigation cycles before the heatwave, ensuring vineyards could withstand the extreme conditions. Ben Kolber and Aaron Lange also implemented irrigation strategies to mitigate the effects of the high heat on the vines. Concerns over wildfire risks lingered, but growers remained vigilant in monitoring and irrigating to safeguard their vineyards. Worker safety took precedence, with precautions in place such as training, rest opportunities, and access to water and shade during the heatwave. Vineyard managers acknowledged the challenges posed by the prolonged heat spell but expressed cautious optimism as the vineyards displayed resilience and adapted to the changing conditions.

Secrets of the Soil: Can a New Regenerative Viticulture Study Reveal How Cultural Practices Affect Soil Microbial Behavior?

A substantial multi-year study, led by Dr. Cristina Lazcano from U.C. Davis, is exploring the effects of regenerative viticulture practices on soil health across 12 West Coast vineyards, funded mainly by Jackson Family Wines, USDA, and the California Dept. of Food and Agriculture. The study, costing over $2.5 million, focuses on combinations of practices like cover cropping, no-till farming, and composting to understand their collective impact on soil microbial behavior, carbon cycling, water retention, and vine health. Initial findings indicate significant correlations between carbon cycling and microbial diversity, and the study aims to refine and enhance these practices to improve soil health and sustainability in viticulture. Early results have shown notable differences in microbial abundance and diversity across varied sites, prompting further investigation into factors like soil type and rootstock. The research, involving many academic and agricultural institutions, aims to publish its preliminary findings later this year.

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