Team C&J
Here’s what happened in the last week in wine. Napa Valley’s Spring Mountain Vineyard has been sold for $42 million after bankruptcy proceedings. Jackson Family Wines expands into the English wine industry. Isla Negra lowers alcohol levels due to a new UK wine tax. US wine sales decline across channels and price tiers. Treasury Wine Estates closes a winery due to the declining popularity of budget wines. The three-tier wine distribution system faces a potential shake-up. Californian winemakers train as firefighters due to increasing wildfires. A bill is introduced to provide smoke insurance for wine grape growers in Washington and California. Ron Rubin Winery launches BLUE BIN, the first fully recyclable wine bottle. Major floods in Chile threaten the wine industry. And finally, independent wine retailers collaborate with winemakers to create custom cuvees for targeted marketing.
Spring Mountain Vineyard sold for $42 million after months of bankruptcy proceedings
Napa Valley‘s Spring Mountain Vineyard, famous for its “Falcon Crest” mansion, has been sold for $42 million after going through bankruptcy proceedings. The 845-acre estate, founded in 1873, is now owned by MGG Investment Group LP. Spring Mountain Vineyard filed for Chapter 11 bankruptcy due to financial difficulties and defaulted on a loan from MGG. Lawsuits are ongoing, including one related to insurance payments for damages caused by the Glass Fire.
Jackson Family Wines announces major expansion into the English wine industry – Decanter
Jackson Family Wines is jumping on the English wine bandwagon. The brand, which is the 9th largest wine producer in the United States, sells a whopping 6 million cases of wine a year. This latest move by the makers of Kendall Jackson, Siduri, Penner-Ash, and Copain Wines demonstrates the brand’s diversification in emerging wine regions in response to the effects of climate change.
Why a leading wine brand is Lowering its alcohol level – The Drinks Business
A new tax on wine in the UK is leading some wine brands like Isla Negra to lower their alcohol levels. The tax, which takes effect on August 1, 2023, will increase the price per bottle by 44 pence, or about $.50 per bottle. For value brands like Isla Negra, this amounts to a nearly 10% increase in the price per bottle.
US Wine Sales Continue to Slide
The US wine market is experiencing a decline in sales across various channels, price tiers, and varietals. Off-premise retail and distributor sales have decreased, with high-end wines being the most affected. The future trajectory of the wine market remains uncertain due to factors like inflation and shifting consumer preferences.
Penfolds maker shuts Victoria winery as cheaper wine falls out of favor
Treasury Wine Estates, the maker of Penfolds, will close its Karadoc winery in Victoria and sell two vineyards due to the declining popularity of budget wines like 19 Crimes and Wolf Blass. Based on changing consumer preferences, Treasury Wine will focus on expanding its luxury and premium wine portfolios. Sales of 19 Crimes, despite its association with rapper Snoop Dogg, have underperformed, reflecting a global shift towards higher-quality wines.
Wine Set for Regulatory Shake-Up | Wine-Searcher News & Features
The three-tier wine distribution system is due for a shake-up. While concerns over shopping to minors exist, in an effort to bring more competition to the space, the Alcohol and Tobacco, Tax, and Trade Bureau (TTB) is reviewing the current shipping restrictions and how they affect smaller wine producers. The current system favors a small number of large producers who dominate the marketplace.
Californian winemakers are learning firefighting techniques – BBC News
With the threat of wildfires increasing in Northern California, some vintners are taking matters into their own hands and becoming certified firefighters.
Washington lawmakers sponsor bill creating smoke insurance for wine grape growers
Legislation has been introduced by Washington congressional members, along with support from California representatives, to provide crop insurance coverage for wine grape growers against smoke exposure. The bill aims to protect the wine industry in Washington and California from damages caused by wildfire smoke. Currently, crop insurance policies only cover physical damage, and lab tests are required to prove losses were due to wildfires. Research conducted by Washington State University has identified sulfur-containing compounds as the cause of smoke impacts on wine grapes.
Introducing BLUE BIN: The U.S’ FIRST Wine Bottles Made with 100% Recyclable Materials
The wine industry’s biggest carbon footprint comes from the size, weight, and production of wine bottles. Ron Rubin Winery launched BLUE BIN to help mitigate the effects of wine bottle production. BLUE BIN aims to be the first premium sustainable wine packaged in a full 750mL bottle made from 100% recycled material that is also 100% recyclable.
Major floods in Chile devastate seven regions
Rampant flooding in Chile could devastate the harvest in seven of the country’s wine-growing regions. The floods, which are the second large-scale natural disaster to devastate the country in 2023 following a spate of wildfires, have left the vineyards almost completely underwater. It’s unclear if the vines will be able to recover and how this will impact a major piece of the Chilean economy.
Why Independent Wine Retailers Are Making Custom Cuvées | SevenFifty Daily
As wine retailers continue to look for ways to boost sales and gain the attention of younger wine drinkers, and potential wine drinkers, wine retailers have started collaborating with winemakers to create their own custom cuvees. The benefit of creating custom blends that appeal directly to their customers’ palates allows these retailers to offer exclusive products and build a brand identity in a competitive marketplace.
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