California Ag Network

Tag: Wine

  • Winemaker Gina Gallo of E. & J. Gallo Winery to Keynote at the Unified Wine & Grape Symposium

    SACRAMENTO, CA, November 20, 2017 – Third generation winegrower and artisan winemaker Gina Gallo of E. & J. Gallo Winery will deliver the keynote luncheon speech on opening day of the 2018 Unified Wine & Grape Symposium on Tuesday, January 23, in Sacramento at the Sheraton Grand.
    “As a member of one of America’s historic winemaking families, Gina embodies a sense of tradition, family legacy, craft and business acumen that transcends generations and inspires future growth amongst colleagues,” says John Aguirre, president of the California Association of Winegrape Growers (CAWG), a co-organizer of the event along with the American Society for Enology and Viticulture (ASEV).
    Gina Gallo oversees the Gallo Signature Series and Ernest & Julio Gallo Estate wines. In her role, she is intimately engaged with the Gallo family’s premier estate vineyards in Napa, Sonoma and Monterey counties. As the Senior Director of Winemaking, she views winemaking as both a creative expression of the land and as a demonstration of the unique qualities of a specific vintage. Her values stem from her family’s entrepreneurial history, using her experience and creative vision to craft luxury wines from her favorite blocks from the family’s estate vineyards.
    Gallo was a 2016 inductee to the James Beard Foundation’s Who’s Who of Food & Beverage in America. Fortune magazine named her one of the “Most Innovative Women in Food and Drink,” and she was named #17 on Decanter magazine’s “Power List” of the most important men and women in wine. She is a board member of the American Farmland Trust, which works to preserve agricultural land, and Taste of the NFL, which raises funds and awareness for food banks and anti-hunger initiatives.
    Unified’s Tuesday keynote luncheon was first introduced in 2014 and has since become a feature of the Unified Symposium. Tuesday also includes a welcome reception in the late afternoon — an added benefit with every general registration. 
    The 2018 Unified Symposium will again take place at the Sacramento Convention Center, located in downtown Sacramento, January 23-25.
    Built with the joint input of growers, vintners and allied industry members, the Unified Symposium serves as a clearinghouse of information important to wine and grape industry professionals. The Unified Symposium also hosts the industry’s largest trade show of its kind, with over 650 vendors displaying their products and services. For additional information, visit www.unifiedsymposium.org.

  • Sonoma County Winegrowers’ Center for Ag Sustainability Announce Impressive Roster of Experts and Leaders

    Santa Rosa, Calif., (September 14, 2017) – The Sonoma County Winegrowers will launch its Center for Ag Sustainability on October 12 with an impressive group of national experts who will be meeting to identify and discuss topics that affect agriculture and Sonoma County as a wine region with the goal of developing out-of-the-box, innovative solutions to critical challenges.

    The participants, representing different industries and backgrounds, will meet four times over the next two years for a facilitated discussion on how to solve challenges facing Sonoma County’s wine and agriculture communities over the next 5-7 years.  The sessions will be facilitated by Professor George Day of the Wharton School of Business.

    “One of the most important jobs we have as farmers is to preserve and protect our agricultural legacy and way of life for future generations.  The reality is that ag is on the brink of a crisis. Not only are thousands of acres of farmland being lost to development in California every year, farmers also face numerous threats to the financial viability of our businesses making it tougher for young people to become farmers,” said Karissa Kruse, president of the Sonoma County Winegrowers.  She added, “Clearly, the status quo is not an effective strategy moving forward.  We must look to lead on addressing these pressing issues and new ones that will emerge to sustain our success and preserve agriculture in Sonoma County and beyond.”

    The “Ag Center” will be a strategic think tank to help develop innovative ideas and strategies to strengthen and build upon the region’s sustainability efforts and its 100-Year Business Plan to Preserve Agriculture.  Understanding that it takes creative, thought provoking, and out-of-the-box thinking to solve some of the critical challenges facing Sonoma County’s agricultural community, the Sonoma County Winegrowers has created this groundbreaking program bringing together a small, diverse group of thought leaders and experts from across various business industries, subject matters, academia, job functions and skill sets, and other unique backgrounds, to problem solve and develop new, fresh ideas that will advance farming not only in Sonoma County, but may also revolutionize grape growing and the larger wine industry across the globe.

    The group will focus on four priorities when it meets on October 17th.  Those priorities are:

    1. Adapting farm practices
    2. Sustaining and protecting the Ag sector
    3. Leveraging leadership in sustainability and a grassroots approach to climate change
    4. Understanding the changing industry economics

    The Ag Center’s 2-year program will meet 4 times for a strategic planning session on the pillars of 100 Year Business Plan to determine insights, innovations and recommendations on moving the grape growers forward.  Throughout the process, the Sonoma County Winegrowers will share learning and progress broadly, which will culminate in a White Paper which will be published providing the insights and learnings to a global audience. These findings and ideas will also be incorporated into the Sonoma County Winegrowers strategic plan, marketing and branding efforts, and other areas of the organization that will guide their focus on the preservation of agriculture. Learning, best practices and potential solutions will be shared more broadly to other Ag communities and wine regions.

    Ag Center members were identified and selected from different industries to bring fresh thinking and experiences to one of the oldest professions in the world. The Ag Center members will serve for two years.  The members are:

    Adam Brumberg – Deputy Director, Food and Brand Lab, Cornell University
    Allen Hershkowitz – Founding Director, Sport and Sustainability International
    Anisya Fritz – Proprietor, Lynmar Estate
    Carolyn Wasem – Senior VP, Jackson Family Wines
    Cory Beck – President & Director of Winemaking, Francis Ford Coppola Winery
    Geof Rochester – Managing Director, The Nature Conservancy
    Jeremiah Puget – Planning Stewardship & Compliance, North Coast Regional Water Quality Control Board
    Jessica Gilmartin – General Manager and Chief Marketing Officer, Lighthouse AI
    Joanne Spigonardo – Initiative for Global Environmental Leadership (IGEL), The Wharton School, University of Pennsylvania
    Kevin Pedrotti – Partner, Clear Advocacy
    Mary Ann King – Stewardship Manager, California Water Project, Trout Unlimited
    Michael Byun – CEO, Asian Services in Action (ASIA)
    Monica Mehta – Managing Principal, Seventh Capital
    Ray Isle – Executive Wine Editor, Food & Wine Magazine
    Rob McMillan – EVP and Founder, Silicon Valley Bank
    Sebastian Schwark – Director, Portland Communications
    Steve Dutton – Partner and President, Dutton Ranch
    Steve Sangiacomo – Partner, Sangiacomo Family Vineyards
    Ty Jagerson – Village Power Finance
    Dan Wilson – Fisheries Biologist, NOAA’s National Marine Fisheries Service, West Coast Region

     

  • Sonoma County Wine Harvest Off to a Fast Start

    Santa Rosa, Calif., (September 11, 2017) – Ask any winegrape grower to describe the grape harvest in Sonoma County and you typically hear “harvest time is like a marathon.”  When it comes to the 2017, harvest has taken off like a sprint and the pace shows no sign of letting up until the end of harvest.

    August delivered some of the longest, hottest periods seen in years which caused heat stress for both grapes and people.  In some AVAs, it became too hot for too long causing sugars to rapidly increase – in some cases faster than the grapes were maturing.  Some growers increased their irrigation cycles to avoid excessive sun damage to the vine leaves and fruit.  Rapid increases in brix levels resulted in some grapes being harvested as quickly as possible, while in other parts of the county later varieties were being irrigated to keep the grapes from dehydrating.

    The other primary challenge facing Sonoma County winegrape growers is the availability of labor.  While there is not a critical shortage this season, it is clear that there is a limited supply with more workers needed, especially in the coming years.  To combat the tight labor market, more growers are turning to mechanical harvesters in addition to using hand harvesting and picking fruit at a riper level.  All growers agree that it will only become more difficult to secure the necessary skilled labor force in the future. However, many growers are talking about the increased skill level of the agricultural workers this year.

    With early September bringing a much needed cool down, the sparkling wine harvest is mostly complete.  Throughout Sonoma County, harvest has begun for most varieties of grapes including Zinfandel, Chardonnay, Pinot Noir, Sauvignon Blanc, Viognier, Muscat, Gewurztraminer and Malbec.   The harvest of Cabernet Sauvignon grapes is expected to begin in earnest in the middle of September.  Most growers anticipate harvest being complete in mid-October.

    Russian River Valley
    Excellent quality and great flavors are offsetting concerns about near normal or slightly below normal yields throughout the Russian River Valley AVA.  The frequent heat waves this summer have reduced yields in many blocks while creating a challenge to plan and coordinate the harvest.  According to Duff Bevill, a partner in Bevill Vineyard Management, he is in full harvest mode for the next five to seven weeks, and the sustained heat resulted in him having to harvest some Zinfandel blocks earlier than expected.  For other growers, the Chardonnay and Pinot Noir harvests are commencing this week, followed by the start of the Cabernet Sauvignon harvest in the middle of the month.

    Dry Creek Valley – Heat is the common concern throughout Dry Creek Valley with growers monitoring the brix levels on a frequent basis, as they anticipate it will result in a slightly earlier harvest throughout the AVA.  Patrick Taylor, co-owner of Taylor Family Vineyard reported that the early heat waves in July – followed by cooling fog and ending up with a late August heatwave – have caused brix levels to sky rocket. The Sauvignon Blanc harvest has begun, while the Zinfandel and Syrah harvest should begin shortly; Cabernet is expected to be fully ripened by the latter part of September.

    Alexander Valley – The harvest is getting underway throughout most of Alexander Valley with the overall grape quality looking excellent with an average yield.  The harvest of Zinfandel and Sauvignon Blanc grapes has been ongoing for the past ten days.  The harvest of Pinot Noir and Chardonnay are both just beginning. Merlot, Gewürztraminer, Malbec, Petite Sirah, Cabernet, Zinfandel and more are still to be harvested over the next month and a half.  Throughout Alexander Valley, a supply of skilled labor remains a top concern.

    Sonoma Valley – Harvest is ramping up throughout the Sonoma Valley AVA, as the recent heat wave spiked sugar levels and pushed all varieties to an earlier harvest.  Many growers are predicting that if the weather continues to be warm throughout September, the majority of the fruit in the AVA could be picked by the end of the month.  The continued winter rains and mild spring created some ideal growing conditions early, which should pay off with some very high-quality grapes at average yields.  Taylor Serres, COO of Serres Ranch, reports that quality is above average across the board, though the harvest has begun earlier than anticipated.  The concern looking ahead is all varieties ripening at the same time due to the August heat wave.

    Chalk Hill – Initial reports indicate an average to higher than average yields, and excellent quality throughout the Chalk Hill AVA.  Harvest is expected to begin in September and be completed by early October.  A primary concern throughout the AVA is the availability of skilled labor.  Most growers are looking to do as much work by machine as possible and anticipate more machine harvesting in the very near future.

    Follow the Harvest – If you want up-to-the-minute updates on Sonoma County’s harvest activities directly from our grape growers and wineries, the Sonoma County Winegrowers have created an online Harvest Tracker to help everyone stay informed on what’s happening in our vineyards and cellars. Visit the Sonoma County Winegrowers Harvest Page for the latest news and use the hashtag #SCHarvest on social media.

  • Alumnus Montgomery Returns As New Fresno State Winemaker

    Fresno, Calif., (August 31, 2017) – Thomas Montgomery, an award-winning winemaker and Fresno State alumnus, is the Fresno State Winery’s new winemaker.

    The Sanger native, who honed a reputation for award-winning Cabernet Sauvignon, Chardonnay and Bordeaux varieties as a winemaker for well-known wineries in Napa Valley and Sonoma Valley, began his Fresno State assignment July 31. His career began at E&J Gallo Winery in Fresno and at United Vintners in Reedley upon graduation from Fresno State in 1979.

    “Fresno State offers a unique opportunity to teach students how to create world-class wines in a place that’s near and dear to me,” said Montgomery.  “I feel very fortunate to be able to return to the Central Valley and give back to the program that first fostered my love for the profession. Fresno State was a national leader in the field of enology when I was a student, and its winery facilities make it an even better training ground for students to produce an outstanding assortment of wines. I look forward to partnering with valley producers and growers to help train our future winemakers to be the best.”

    Montgomery most recently served as the winemaker at Vine Cliff Winery in Napa and as the director of winemaking at Papagni Wines in Madera since 2015. This past year at international wine competitions, his 2014 Monte Smith Cabernet Sauvignon won a San Francisco Chronicle double gold medal, and the 2014 Barbera was a Wine Enthusiast magazine editor’s choice recipient.

    He served the previous 20 years as a winemaker at B.R. Cohn Winery, Conn Creek Winery and Villa Mt. Eden Winery where he produced 25 to 30 wines annually that ranged from small lots to 70,000 cases. He managed all aspects of processing from crush through bottling, product development, staff, sales support, events, and marketing and promotion. His experience also includes work with growers and grapes from California’s more than 107 recognized wine-growing regions, otherwise known as appellations.

    Earlier in his career, Montgomery served as an associate winemaker at Cosentino Winery and a winemaker and vineyard manager at Mission View Vineyards in Paso Robles.

    “Tom’s vast winemaking experience and knowledge is an excellent fit for our enology program and will enable Fresno State to build upon its reputation of training the best winemakers for today’s global wine industry,” said Sandra Witte, dean of the Jordan College of Agricultural Sciences and Technology at Fresno State.  “The Fresno State Winery also looks forward to expanding grower and industry partnerships under his leadership.”

    Montgomery graduated with a bachelor’s degree in enology and viticulture and studied under the department’s legendary founder, Vincent E. Petrucci. Montgomery also conducted undergraduate research in spore formation and germination of Botrytis Cinerea, a wine grape fungus, and its initiation of bunch rot complex.

    His father, Richard Montgomery, was a Fresno State geography department chairperson and faculty member from 1966 to 1986.

    Tom Montgomery is currently a master’s in business administration candidate at Humboldt State with a thesis in progress on qualitative problems in contracting grape and bulk wine sales in the California wine industry.

    He replaces Matt Brain who served as the campus winemaker and campus lecturer since July 2015.

    Fresno State houses the nation’s first commercial winery on a university campus. Founded in 1997, it has won more than 600 wine competition honors.

    For more information about the Fresno State Winery, visit www.fresnostatewinery.com.

     

     

  • Another Stellar Sonoma County Wine Harvest Begins

    Santa Rosa, Calif., (August 18, 2017) – Record winter rainfall, a mild spring, a scorching summer and a serious labor shortage are just some of the challenges Sonoma County winegrowers have experienced this year.  Being tested as never before, local winegrape farmers began the 2017 harvest for sparkling wines in some parts of Sonoma County last week with early expectations calling for a high-quality vintage crop of an average tonnage size.

    “Though the year is barely half over, we have already witnessed many daunting challenges, but our farmers are amazingly resilient, they persevere and continue farming some of the world’s very best grapes,” said Karissa Kruse, president of Sonoma County Winegrowers.  She added, “There is great excitement throughout the County as activities pick up and the crush begins.”

    The first quarter of the year saw a record rainfall hit the County with nearly 58 inches of precipitation falling in Santa Rosa, more than 70 inches throughout the County and rain reported for 21 of the 28 days of February. The rainfall filled the region’s reservoirs beyond their capacity, triggering flooding and landslides which closed numerous roads, inundated hundreds of acres of vineyards and saturated vines particularly along the lower Russian River. In addition, a tight labor supply, increased operating costs, proposed ground water regulations, urban encroachment and a host of local ordinances have had the attention of local winegrape farmers this year.

    The long rainy season and mild spring resulted in above-average vegetative growth and vigor. The heavy rains left ample water deep in the soil, so vines were able to handle the subsequent heat waves.  When it came time for the bloom, conditions were ideal and most varietals set well.  With harvest still weeks away in most Sonoma County vineyards, here are some of the harvest reports from the front lines of some of our AVAs:

    Russian River Valley: The harvest of grapes for sparkling wines has begun.  Joe Dutton, co-owner of Dutton Ranch and Chairman of the Sonoma County Winegrowers reports that picking is underway for Pinot Noir for the Gloria Ferrer Sparkling program. The grape harvest each day will be hit and miss for the next ten days to two weeks, but then after that, harvesting will be all day, every day. We are looking forward to a nice harvest. At J Vineyards & Winery, traditionally one of the first wineries to harvest in Sonoma County, picking has also begun, according to Jim Collins, VP Premium Winegrowing and Grower Relations for E. & J. Gallo Winery.  The first grapes picked were Pinot Noir for J’s sparkling wine program.  Overall, the vines weathered the year’s climate extremes very well and everything is shaping up to be a high-quality vintage.

    Dry Creek Valley: Ned Neumiller, grower relations and viticulture manager at Seghesio Family Vineyards, reports that much of the current activity in the Dry Creek Valley is finishing up final canopy management and starting to ready the crop for harvest.  Vine vigor continues to be the largest issue which is made more problematic for some growers due to the lack of labor.  The start of the Zinfandel harvest in the upper Dry Creek Valley will begin during one of the first two weeks of September.  Overall, quality looks to be excellent for Zinfandel with normal yields anticipated.
    Green Valley:In the Green Valley AVA, Dutton Ranch’s J. Alfred Steele reports that the harvest is running about 6-10 days later than last year but, given the big canopies from three months of storing carbs from the epic rains, the grapes could ripen quickly and the start of harvest may move up.  Right now veraison is on everywhere and it looks to be another great vintage.  Labor remains the biggest threat in the region this harvest season.

    Alexander Valley: Bret Munselle, a partner of Munselle Vineyards, expects the Alexander Valley harvest to begin between August 24th and the 28th.  The yield looks a little above average while the fruit looks great.  Cautious optimism is the current outlook.  Jim Rickards, owner of J. Rickards Vineyards, reports that the Malbec harvest should begin in late September, Petite Sirah in early October and the harvest will wrap up with Cabernet beginning mid- to late-October.  The vines appear to be doing well throughout the Alexander Valley with the heavy rains now providing vines with additional help in combatting recent heat waves.

    Sonoma Valley: With harvest still weeks away in the Sonoma Valley AVA, all blocks are at least 50% into veraison or well on their way to finishing.  Taylor Serres, of Serres Ranch, reports there was a late start to the season in Sonoma Valley due to the long winter which did leave ample moisture in the soil and paid dividends throughout the growing season. The other primary current challenge in the vineyards this year has been successfully managing mildew issues which have been experienced throughout Sonoma County.  Overall, the quality of grapes looks really good particularly the Bordeaux varieties.  Cluster counts appear to be similar to last year though Cabernet Franc seems lighter than last year. The one concern looking ahead is how fast and heavy the fruit will come in.

    Follow the Harvest: If you want up-to-the-minute updates on Sonoma County’s harvest activities directly from our grape growers and wineries, the Sonoma County Winegrowers have created an online Harvest Tracker to help everyone stay informed on what’s happening in our vineyards and cellars. Visit the Sonoma County Winegrowers Harvest Page for the latest news and use the hashtag #SCHarvest on social media.

     

  • Award-Winning Campus Wines Available At Free Tastings In May

    Fresno, Calif., (May 22, 2017) – The Fresno State Winery will offer free tastings of four award-winning wines — Petrucci’s Crush, Pinot Noir, San Joaquin Chardonnay and Sauvignon Blanc — at the Gibson Farm Market (5368 N. Chestnut Ave.) each weekend in May from 2 to 6 p.m. Friday and noon to 4 p.m. on Saturday and Sunday.

    The 2014 Petrucci’s Crush, available for a limited time only, is a Bordeaux-style blend with fruit from Duarte Nursery and campus vineyards. The 2016 SJ Chardonnay, 2016 Sauvignon Blanc and 2014 Tempranillo are sourced from Duarte Nursery, and the 2015 Pinot Noir is sourced from fruit from Saviez Vineyards in Fresno County.

    Including the 2014 Tempranillo, five Fresno State wines combined to win 10 gold and silver medal honors this spring (see list below). The Tempranillo also won a silver medal last November in the Harvest Challenge wine competition.

    All five wines can be purchased at the Gibson Farm Market and through the Fresno State Wine Club, which will reorganize its membership plans starting in June to offer wine club customers more options to better fit their preferences.

    The Fresno State Winery has won more than 600 honors since it became the nation’s first commercially bonded winery on a collegiate campus in 1997. It currently offers 14 red, white, blush and specialty wines that are produced on campus by viticulture and enology students and staff, and many of the grapes are sourced from Fresno State’s 120-acre campus vineyard.

    More information is available by contacting Fresno State Wine Club president Veronica Viramontes (559.278.6070, verovira@mail.fresnostate.edu) or the Gibson Farm Market (559.278.4511).

    2017 Wine Competition Awards – Fresno State Wines

    2016 SJ Chardonnay

    Gold medal, San Joaquin Valley Winegrowers

    Gold medal, California State Fair

    Silver medal, Finger Lakes International

    2014 Petrucci’s Crush

    Gold medal, San Joaquin Valley Winegrowers

    Gold medal, San Francisco Chronicle

    Silver medal, Finger Lakes International

    2014 Tempranillo

    Gold medal, San Francisco Chronicle

    Silver medal, Finger Lakes International

    2015 Pinot Noir

    Silver medal, San Francisco Chronicle

    2016 Sauvignon Blanc

    Silver medal, Finger Lakes International

     

  • 2016 California Wine Sales in U.S. Hit New Record: 238 Million Cases with Retail Value of $34.1 Billion

    San Francisco, Calif., (May 8, 2017) – California wine shipments to the U.S. reached an estimated retail value of $34.1 billion in 2016, up 4.6%. The state shipped an all-time high of 238 million cases to the U.S. in 2016, up 2% from the previous year.

    California wine sales to all markets, including shipments to the U.S. and exports, also set a record of 285 million cases in 2016.

    “Consumers worldwide recognize the high quality of California wines from diverse regions across the state,” said Robert P. (Bobby) Koch, Wine Institute President and CEO. “As consumers in the U.S. and around the world continue to trade up to premium wines, California is ideally positioned.”

    “California wines in the U.S. market have increased from 191 million cases shipped in 2006 to 238 million cases in 2016,” said Jon Moramarco, founder and managing partner of BW166, who purchased The Gomberg-Fredrikson Report with partners last year. “The growth trend has been driven by population, which is up more than 12% over the last decade, and by the fact that baby boomers, traditionally the large population segment of frequent wine consumers, have been joined by millennials aged 21-38 who are also driving the growth in wine consumption,” Moramarco explained.

    “The estimated retail value for wine was calculated with an updated methodology that uses a wide variety of government, private, and other statistical data that have not historically been available, such as the direct-to-consumer sales report and Dept. of Commerce data,” Moramarco continued. “Consumer expenditures had been growing at a 6.1% annual rate as opposed to the historical estimates of 5.5% previously published, so the retail value was reset for more recent years. The new data sources provided a more comprehensive methodology for calculating consumer expenditures.”

    2016 Stats at a Glance:

    • Estimated retail value of 2016 California wine sales in the U.S. was $34.1 billion
    • The state shipped an all-time high of 238 million cases to the U.S. in 2016
    • Total California wine sales to the U.S. and exports was a record 285 million cases
    • The U.S. has been the world’s largest wine market since 2010

    Moramarco pointed out several trends in the U.S. marketplace. Both major retailers and distributors continue to consolidate, creating fierce competition and crowded sales channels. Consequently, many wineries are targeting niche sales channels, such as tasting rooms and direct-to-consumer sales, which have now reached more than 4% of the total volume. Another trend is that California wines selling for $10 and above are showing growth, accounting for 19% of the volume and 40% of the value in U.S. food stores. Wines under $10 are flat or down, but still holding 81% share of the shipment volume and 60% of the revenues.

    Americans’ access to wine continues to expand with over 550,000 locations that sell wine, according to Nielsen, a global provider of information and insights into consumer preferences and purchases. The number of on- and off-premise locations is about 120,000 more than a decade ago.

    Consumers are finding more in store restaurants and bars and also wine service in less traditional locations such as bookstores, nail salons, coffee shops and movie theaters, even car wash and car repair shops, said Danny Brager, Senior Vice President of Nielsen’s Beverage Alcohol Practice Area. Wine is a growing category, and it is being offered in new and different venues, as well as interesting, alternative packaging vehicles, such as cans, single-serve containers, premium boxes and wines on tap.
    According to Nielsen measured U.S. food store volume, Chardonnay remains the largest varietal of all wine types accounting for 20% share of the cases, followed by Cabernet Sauvignon (15%), Red Blends including Sweet Reds (12%), Pinot Grigio/Gris (9%), Merlot (7%), Pinot Noir (6%), White Zinfandel/Blush (6%), Moscato/Muscat (5%) and Sauvignon Blanc (5%). The largest gains for whites came from Sauvignon Blanc with Pinot Grigio following well behind. Red wine growth was driven by Red Blends, Cabernet Sauvignon and Pinot Noir. From a smaller base of 1% share, Ros退 is on fire with a 35% volume gain, but more than 60% on dollars.

    Total shipments of sparkling wine and champagne to the U.S. reached 25.6 million cases in 2016. Up 14% from the previous year, the category is showing very strong growth with Prosecco a key growth driver. Sparkling wines/champagne accounted for a 6% share of the U.S. wine market.

    The U.S. Wine Market – Wine shipments to the U.S. from all production sources — California, other states and foreign producers — grew to 399 million cases, up 3% from 2015, with an estimated retail value of nearly $60 billion. The U.S. has remained the world’s largest wine market by volume since 2010. California’s 238 million cases shipped within the U.S. in 2016 represent a 60% share of the U.S. wine market.

    U.S. wine exports, 90 percent from California, reached a record $1.62 billion in winery revenues in 2016. Volume shipments were 461 million liters or 51.2 million cases. The European Union’s 28-member countries were the top market for U.S. wine exports, accounting for $685 million; followed by Canada, $431 million; Hong Kong, $99 million; Japan, $87 million; China, $82 million; Mexico, $24 million; South Korea, $23 million; Switzerland, $19 million; Singapore, $14 million; and Philippines, $13 million.

     

  • California Wine Exports Reach Record $1.62 Billion in 2016

    San Francisco, Calif., (February 16, 2017) – U.S. wine exports, 90% from California, reached $1.62 billion in winery revenues in 2016, a new record. Despite challenges from a strong dollar, winery revenues were up 1% from 2015. Volume was 412.7 million liters or 45.9 million cases.

    “California wine exports continue to reflect the trend toward premiumization with the dollar value of our wine sales outpacing volume shipments. California wines are well positioned for this trend—our vintners are offering quality, value, diverse styles and environmental stewardship in their winemaking. Combined with the state’s iconic lifestyle, innovative cuisine and beautiful destinations, California wines continue to gain attention from consumers worldwide,” said Robert P. (Bobby) Koch, Wine Institute President and CEO.

    The top 10 export markets for California wines are: the European Union’s 28-member countries, accounting for $685 million, followed by Canada, $431 million; Hong Kong, $99 million; Japan, $87 million; China, $82 million; Mexico, $24 million; South Korea, $23 million; Switzerland, $19 million; Singapore, $14 million; and Philippines, $13 million.

    “California wine exports have grown 78% by value in the last decade despite heavily-subsidized foreign competitors and high tariffs. Our global trading partners are increasingly acknowledging the high quality of wine from the Golden State and responding to our California Wines marketing efforts throughout the world,” said Wine Institute Vice President International Marketing Linsey Gallagher. Gallagher manages Wine Institute’s California Wine Export Program, involving more than 170 wineries that export to 138 countries, and 15 representatives and offices in 25 countries across the globe.

    “Trade agreements, such as the North American Free Trade Agreement (NAFTA), have helped to dramatically grow U.S. wine exports yet discriminatory non-tariff trade barriers continue to be crafted by foreign governments at a steady pace,” said Tom LaFaille, Wine Institute Vice President and International Trade Counsel. “We applaud U.S. government efforts to eliminate these barriers and strengthen our competitiveness globally, including the World Trade Organization (WTO) challenge against Canada which seeks to ensure that British Columbia grocery store consumers can choose from the vast array of the world’s great wines.”

    Wine Institute’s Regional Trade Directors in key export markets reported on 2016 exports:

    Canada

    “Canada remains a strong market for California wines and despite a slowdown in momentum, U.S. wines were still #1 in the table wine category in Canada in 2016. Retail sales of U.S. wines are now at a record 6.5 million cases and $1.1 billion dollars with the strongest increases in the provinces of Ontario, New Brunswick, Manitoba and Saskatchewan. We anticipate continued growth and are also hopeful that provincial governments will extend to California wineries equal access to retail distribution channels,” said Rick Slomka, Wine Institute Trade Director for Canada. “Canadian consumers have confidence in the quality and value offered by California wineries whose wines are successful in all price segments. Recent price increases resulting from exchange rate fluctuation may lead to slower growth.”

    Continental Europe

    “As the dollar moves towards parity with the Euro, export volumes to Europe are down in most countries, mainly in the lower priced segment. The good news is that the dollar value of California’s exports to the EU countries (excluding UK) is up 2.7% as the interest in premium California wines continues to be strong,” said Paul Molleman, Wine Institute Trade Director for Continental Europe.

    United Kingdom

    “It’s a fantastic result for California wine in the UK, continuing three years of accelerating growth. There is a very clear trend towards premiumization with +18% value growth and rising volumes (+5%). The conversation is increasingly about exceptional wine quality from California across both powerful and elegant styles. Volume shipped exceeded 13 million 9-liter cases to the UK, making it the top volume export destination for California wines globally. With the value of California exports to the UK now worth $337 million, the industry is on track to meet its target of $400 million in export sales by the end of the decade,” said Wine Institute United Kingdom Trade Director Justin Knock.

    Japan

    “U.S. bulk wine exports to Japan have been growing as major Japanese importers are now importing popular-priced California wine brands in bulk and then bottling in Japan. This reduces the burdensome import duty to a limited extent and makes inventory control easier. In 2016, we saw the last major generic California wine brand switch to local bottling,” said Ken-ichi Hori, Wine Institute Japan Trade Director. “Japanese importers of U.S. wines were disappointed to learn of the U.S. withdrawal from the Trans-Pacific Partnership. They now hope the U.S. will establish a Free Trade Agreement with Japan as soon as possible to abolish the heavy import duty on U.S. wines, which will help the entire American wine category grow in Japan. This is critical for the U.S. wine industry, since our competitors, Chile and Australia, already have free trade agreements with Japan and benefit from a duty advantage over U.S. wines.”

    China

    “The significant growth in U.S. wine exports to China in 2016 is particularly important because it demonstrates a meaningful growth in higher value products. A 47% increase in value in one year, coupled with an 11% increase in volume, speaks to the inherent strength in consumer acceptance of California wines in China, despite the rising value of the U.S. dollar versus the Chinese RMB currency throughout the year. Additionally, according to research firm Wine Intelligence, the total number of imported wine consumers in China increased by 26% over the last two years. These concurrent developments signal an increasing healthy market in China and Chinese consumers’ burgeoning interest in California wines,” said Christopher Beros, Wine Institute Trade Director for China and Pacific Rim.

    Since 1985, Wine Institute has served as the administrator of the Market Access Program, a cost-share export promotion program managed by the USDA’s Foreign Agricultural Service. Wine Institute’s Export Program supports California Wines worldwide with a consumer website discovercaliforniawines.com in eight languages, social media campaigns in 16 countries, an educational California Wines PowerPoint tool and videos, and a strong partnership with Visit California to increase tourism to California wine regions. Wine Institute organizes California’s participation in international trade shows and trade missions, offers master classes and seminars as well as tastings for trade, media and consumers worldwide. Last year, the program hosted 150 international media and wine buyers from 15 countries for visits to California wine country. For information, see: Wine Institute’s California Wine Export Program

     

     

  • What’s to Become of San Joaquin Valley Wine?

    [wpdevart_youtube]e_14gJEaL-M[/wpdevart_youtube]

    At the annual Grape, Nut & Tree Fruit Expo in Fresno, grape growers enjoyed state of the industry addresses, including one delivered by Jeff Bitter of Allied Grape Growers who offered some advice to wine grape growers in the San Joaquin Valley to remain viable amidst foreign competition. Watch this brief interview & read more in American Vineyard Magazine.