Team C&J
Here’s some insight into the last week in wine. Gallo acquired Rombauer wine properties in Napa Valley for $85.6 million, including vineyards and facilities. Royal Wine Co. purchased Sonoma-Loeb winery for an undisclosed amount, introducing kosher wines. A Wine Market Council study revealed a shift towards lower-priced wines, impacting consumers aged 35 to 44. Sotheby’s achieved a $9.3 million wine auction, the second-highest in U.S. history. California faces a grape surplus due to decreased wine demand, affecting red wine prices. Napa Valley expects a promising 2023 harvest, while the Pacific Northwest anticipates a concentrated year with lower yields. Italian wine production decreased by 12%, but quality remains high. French prosecutors investigate grape-picker deaths in extreme heat, highlighting climate change’s labor impact.
Gallo paid $85.6 million for Napa Valley’s Rombauer wine properties in Napa County
Inquiring minds curious to know how much Gallo paid for Rombauer’s Napa Valley wine
properties may be interested to know that the price was an eye-watering $85.6 million. This is according to the amount of property transfer tax paid to the Napa County Recorder’s Office.
Keep in mind Gallo purchased the Rombauer Vineyards brand, three winery and production facilities, two tasting rooms with vineyard views, and over 700 acres of sustainably farmed vineyards in Carneros, Atlas Peak, St. Helena, Calistoga, Sonoma Valley and the Sierra Foothills, so the all-in price is significantly more than vineyard land.
Kosher wine giant buys Sonoma County winery to expand luxury portfolio
Royal Wine Co., a major producer of kosher wine and spirits, has expanded its luxury wine portfolio by acquiring Sonoma-Loeb winery in Alexander Valley, Sonoma County. The acquisition, whose price remains undisclosed, offers Royal Wine the opportunity to enter new markets while enhancing its lineup of wines. Sonoma-Loeb features five distinct labels, including Sonoma County chardonnay and Dutton Ranch Russian River Valley pinot noir, providing a range of wines from $30 to $45. Royal Wine is introducing a certified kosher version of Sonoma-Loeb wines under the name “Dignitary,” honoring John Loeb Jr., the winery’s founder, who began the venture in 1981 with the support of Napa Valley vintners Don and Molley Chappellet, and winemaker Philip Titus.
The Wine Market Council has initiated a research study to understand the changing dynamics in the U.S. wine market. The study, conducted in partnership with NielsenIQ, found that consumers are shifting towards lower-priced wine categories, with those who previously purchased $20+ wines trading down to the $10 to $19.99 range and those in the $10-19.99 category moving to wines priced under $10. This trend, observed over the past few months, primarily affects consumers aged 35 to 44 with incomes of $40,000 to $70,000. Wine purchases have declined, partly due to consumers reducing alcohol purchases for home consumption, with some opting for craft beer, ready-to-drink spirits, and sparkling wine instead. The report suggests that consumers value authenticity, transparency, and sustainable/organic products in their alcoholic beverages. It also emphasizes the need for innovation in the wine industry to adapt to changing consumer preferences and highlights upcoming phases of the study focusing on consumer behaviors and trends in the wine market.
A Sotheby’s wine auction recently achieved the second-highest wine sale in U.S. history, totaling $9.3 million. The auction, titled “A Monumental Cellar,” featured an impressive collection of wines, including historic vintages from the 20th century, such as those from France’s Rhône Valley, Spain’s Ribera del Duero, and renowned labels like Le Pin, Château Lafite, Château Cheval Blanc, and Krug. With 98% of its 466 lots sold, the auction surpassed the previous second-place record held by The Don Stott Cellar in 2015. The top-grossing U.S. wine sale remains the Wines from the Cellar of William I. Koch, which fetched $21.8 million at Sotheby’s in 2016. The collection was notable for its extensive offerings from Bordeaux, Burgundy, Champagne, and Bordeaux’s iconic Château Pétrus, with vintages spanning from 1924 to 2015. Overall, the sale highlighted the enduring appeal of fine wines among collectors, contributing to Sotheby’s Wine & Spirits’ year-to-date sales of $30 million, a 25% increase year over year.
As US Demand Drops, California Worries About an Excess of Grapes | Meininger’s International
California wine producers are grappling with a grape surplus, an unusual situation caused by a significant drop in wine demand in the US market rather than an excess of grapes from large harvests. The oversupply has particularly affected red grapes and red wine prices, which have fallen by as much as 50%, while white wine prices have seen less impact. Importers facing their own surpluses are lowering prices in the US to move inventory. The oversupply dilemma is complicated by uncertainties about how it will be resolved and when it will end, leaving industry experts and stakeholders pondering the next steps to clear excess inventory and stimulate demand.
Napa Valley harvest report: Expect a busy October
Napa Valley grape growers are experiencing favorable harvest weather with sunny days and cool nights. The Sauvignon Blanc harvest is nearing completion, while growers are patiently waiting for sugars to develop in red varieties, expecting a surge of activity in late September and October. The quality of this year’s grapes is praised, although some challenges are noted due to the late start of the harvest season. Across different AVAs, vineyards are seeing varying progress in ripening, with reports of white grape harvests already underway in some regions and red grape picking expected to commence soon. Overall, the outlook for the 2023 vintage appears optimistic, with winemakers excited about the potential quality.
Harvest 2023 in the Pacific Northwest: What winemakers are saying – Decanter
The 2023 wine harvest season in the Pacific Northwest has commenced in Washington state, with growers primarily picking sparkling wine or early-ripening white varietals like Sauvignon Blanc and Chardonnay. Despite starting later than usual due to a cool spring, the season has rebounded, and winemakers in Washington are anticipating a year of intensity and concentration with lower yields. In Oregon’s Willamette Valley, a warm spring followed by a few days of high temperatures in May advanced the growing calendar, with winemakers drawing comparisons to warm years like 2018, 2015, and 2016, expecting healthy crops and wines that are approachable in their youth. Variability in cluster size within the same block may add complexity to the wines.
Quality over Quantity: Italian wine crop drops significantly due to extreme weather, crop disease
Extreme weather conditions and a rise in fungal diseases have caused Italy’s wine production to plummet by 12 percent this year, bringing it below a billion gallons. This decline is expected to result in France regaining its position as the top wine-producing region after almost a decade. However, despite the reduced quantity, experts believe that the quality of Italian wine remains unaffected, and there is no cause for concern due to ample existing stocks, which are at their highest level in the last six years.
French prosecutors probe Champagne grape-pickers’ deaths in extreme heat – POLITICOFrench prosecutors in the Champagne region are investigating the deaths of at least four grape-pickers who succumbed to extreme heat while working, including a 19-year-old seasonal worker in the Reims region who died as temperatures exceeded 32 degrees Celsius. This tragedy occurred during a late summer heat wave that brought record temperatures to France in early September. The situation has raised concerns about climate change’s impact on labor conditions, with a union representative highlighting that French labor inspectors lack the authority to halt work during severe heat waves. Additionally, two other workers in the Rhône valley also died while harvesting grapes, one due to suspected heat stroke. The French authorities had previously issued warnings for grape pickers to begin work early in the morning to avoid extreme temperatures.
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