New World Wine
- Sick of High Gas Prices?
- Oregon Predicts Huge Grape Glut
- Lebanon's Thriving Wine Industry
- Champagne Production Set to Double
- Economics Hits Napa Valley Hard
- Cork Recycling
- The Price of Wine
- Direct Sales Grow Steadily
- Green Wine
- U.S. Wine Sales in 2007
Posted by
Alan Boehmer
Alan Boehmer
Try wine!
The U.K.'s Prince Charles has converted his 38 year old Aston Martin Volante convertible to run on wine. Well, not exactly. Here's what his spokesman said.
Sir Michael Peat, the Prince's private secretary announced: "The bioethanol from our supplier happens to be made from wine. I think our wine is surplus English wine. It is wonderful. It is not corked."
The Prince's automobile doesn't run on just any wine. It is English wine in particular. The Prince is lucky his car doesn't require red Burgundy or other premium grades.
Amusing as this announcement is, it's really nothing new. The European Union has for many years strictly controlled the amount of wine allowed to enter the market. All surplus is made into biofuels.
Sir Michael Peat, the Prince's private secretary announced: "The bioethanol from our supplier happens to be made from wine. I think our wine is surplus English wine. It is wonderful. It is not corked."
The Prince's automobile doesn't run on just any wine. It is English wine in particular. The Prince is lucky his car doesn't require red Burgundy or other premium grades.
Amusing as this announcement is, it's really nothing new. The European Union has for many years strictly controlled the amount of wine allowed to enter the market. All surplus is made into biofuels.
Oregon Predicts Huge Grape Glut
Posted by
Alan Boehmer
Alan Boehmer
Awash in a sea of Pinot Noir?
The Oregonian announced that some industry analysts are predicting an oversupply "of biblical proportions" in the next few years. The 2008 harvest is expected to equal or surpass the huge harvest of 2007. Such a glut could impact the price of already pricey Oregon Pinot Noir and lead to bargain blends of astonishing quality.
Not everyone agrees with this assessment, pointing to the uniqueness of Oregon Pinot Noir in the national marketplace. Others point to the fact that most Oregon vineyards are winery owned in contrast to California's huge privately owned vineyards which must secure buters for their fruit. Oregon vineyardists are unlikely to plant more grapes than they realistically believe they can use. And they are already pruning off excess grape clusters to concentrate the quality in lower yields, as is done routinely to keep the yield down to 1-3 tons per acre. Contrast that with the new trellising designs appearing in California's San Joaquin Valley that promise to double the current yields to 26 tons per acre.
One would expect that any looming oversupply of grapes would come from California. However, an oversupply of high quality Oregon Pinot Noir might not be all that bad for consumers.
Not everyone agrees with this assessment, pointing to the uniqueness of Oregon Pinot Noir in the national marketplace. Others point to the fact that most Oregon vineyards are winery owned in contrast to California's huge privately owned vineyards which must secure buters for their fruit. Oregon vineyardists are unlikely to plant more grapes than they realistically believe they can use. And they are already pruning off excess grape clusters to concentrate the quality in lower yields, as is done routinely to keep the yield down to 1-3 tons per acre. Contrast that with the new trellising designs appearing in California's San Joaquin Valley that promise to double the current yields to 26 tons per acre.
One would expect that any looming oversupply of grapes would come from California. However, an oversupply of high quality Oregon Pinot Noir might not be all that bad for consumers.
Lebanon's Thriving Wine Industry
Posted by
Alan Boehmer
Alan Boehmer
After years of languishing, Lebanon expands its wine production.
Lebanon is one of the world's oldest wine producing regions. Some wine historians credit Lebanon's ancestors, the Phoenicians, with introducing wine and wine grapes to Greece and Italy. There has even been speculation that the first vineyards of France's Rhône Valley may reflect this early trade.
But with the rise of Islam in Lebanon and fanatical supporters of Hezbollah commercial wine production almost ceased. And then came the Lebanon-Israeli conflicts. Agricultural equipment was sometimes targeted by Israeli drones as instruments of war, making farming a risky enterprise. And Lebanese winemakers faced an almost impossible export trade as well as a shrinking local demand.
All this has changed dramatically over the past few years. New vineyards have been planted in the south near the Israeli border and new wine is flowing. An estimated 55,000 bottles in 2007. And the wine is good! This region is not far from the Golan Heights, Israel's most distinguished winegrowing region. There has been speculation that if Israel returns the Golan Heights to Syria, a muslim country, the sheer economics of the very successful Golan wine industry will compel the Syrian government to allow its continuation.
A most surprising circumstance is the hands-off treatment of Lebanon's wineries by Hezbollah. We will hope for the continuation of their tolerance and for the rapid reinstatement of the export of Lebanese wine to Europe, Canada, and the U.S.
But with the rise of Islam in Lebanon and fanatical supporters of Hezbollah commercial wine production almost ceased. And then came the Lebanon-Israeli conflicts. Agricultural equipment was sometimes targeted by Israeli drones as instruments of war, making farming a risky enterprise. And Lebanese winemakers faced an almost impossible export trade as well as a shrinking local demand.
All this has changed dramatically over the past few years. New vineyards have been planted in the south near the Israeli border and new wine is flowing. An estimated 55,000 bottles in 2007. And the wine is good! This region is not far from the Golan Heights, Israel's most distinguished winegrowing region. There has been speculation that if Israel returns the Golan Heights to Syria, a muslim country, the sheer economics of the very successful Golan wine industry will compel the Syrian government to allow its continuation.
A most surprising circumstance is the hands-off treatment of Lebanon's wineries by Hezbollah. We will hope for the continuation of their tolerance and for the rapid reinstatement of the export of Lebanese wine to Europe, Canada, and the U.S.
Champagne Production Set to Double
Posted by
Alan Boehmer
Alan Boehmer
French Government Agrees to Expand Champagne Appellation
In response to the increasing prices of Champagne caused by supply and demand worldwide as well as the falling value of the U.S. dollar, the French government has agreed to expand the appellation controlée boundary of Champagne. The new appellation will be roughly twice the size of the current one and the result will be vastly increased production and, hopefully, lower prices.
Champagne sales in the U.S. have dropped in proportion to the sagging dollar. Might we hope that as the dollar regains strength Americans will be treated to more affordable Champagne than in former times?
Property values within the Champagne appellation are the highest in the country, so former beet farmers will find the value of their farms dramatically increased and the big Champagne houses are already knocking on farmhouse doors with purchase and leasing offers.
It is expected that annual production over the next three years will increase by at least 100 million bottles.
But even so, Champagne will probably never be truly competitive with domestic sparkling wines. In the first place, the two products are worlds apart in quality, complexity, and texture. Even sparkling wines from other regions of France, such as Vouvray, Cremant d'Alsace, and Blanquette de Limoux, lack the exquisite quality of the real thing. New World sparklers, on the other hand, are wonderful value wines. They offer refreshing wines at unbelievably attractive prices, putting them in the category of everyday treats. Our favorite domestic value sparklers are the Brut, Extra Dry, and Blanc de Noirs from Washington State Chateau Ste.-Michelle, priced around $7.
Champagne sales in the U.S. have dropped in proportion to the sagging dollar. Might we hope that as the dollar regains strength Americans will be treated to more affordable Champagne than in former times?
Property values within the Champagne appellation are the highest in the country, so former beet farmers will find the value of their farms dramatically increased and the big Champagne houses are already knocking on farmhouse doors with purchase and leasing offers.
It is expected that annual production over the next three years will increase by at least 100 million bottles.
But even so, Champagne will probably never be truly competitive with domestic sparkling wines. In the first place, the two products are worlds apart in quality, complexity, and texture. Even sparkling wines from other regions of France, such as Vouvray, Cremant d'Alsace, and Blanquette de Limoux, lack the exquisite quality of the real thing. New World sparklers, on the other hand, are wonderful value wines. They offer refreshing wines at unbelievably attractive prices, putting them in the category of everyday treats. Our favorite domestic value sparklers are the Brut, Extra Dry, and Blanc de Noirs from Washington State Chateau Ste.-Michelle, priced around $7.
Economics Hits Napa Valley Hard
Posted by
Alan Boehmer
Alan Boehmer
Is vineyard expansion in Napa Valley still possible in difficult economic times?
California’s historic Napa Valley is facing one of the most serious economic crises in its history. It has been projected that the valley will be unable to meet the demand for its grapes by next year. California has moved from the glut of 2005 to the most severe shortage of winegrapes in recent memory. The benefactor will be imports, which are expected to increase their market share over the next years.
The answer to this economic dilemma is obvious: plant more grapes. But the price of prime agricultural property in Napa Valley has risen to unbearable heights. The least favored sites in Chiles and Pope Valleys (far from the valley floor but entitled to the Napa Valley AVA) have risen as high as $75,000 per acre. Even more stunning is the value of prime acreage in places such as Stag’s Leap, Rutherford, and Oakville, where current asking prices have risen as high as $300,000 per acre!
Since the price of California winegrapes is heavily influenced by Central Valley fruit, Napa Valley farmers face the grim possibility that they may be unable to receive a price for their fruit that justifies buying expensive acreage and extending vineyard properties.
Adding to the dilemma is the fact that, even if farmers plant new vineyard property, they won’t come online for three years. Meanwhile, imports grab ever larger shares of the American market.
The answer to this economic dilemma is obvious: plant more grapes. But the price of prime agricultural property in Napa Valley has risen to unbearable heights. The least favored sites in Chiles and Pope Valleys (far from the valley floor but entitled to the Napa Valley AVA) have risen as high as $75,000 per acre. Even more stunning is the value of prime acreage in places such as Stag’s Leap, Rutherford, and Oakville, where current asking prices have risen as high as $300,000 per acre!
Since the price of California winegrapes is heavily influenced by Central Valley fruit, Napa Valley farmers face the grim possibility that they may be unable to receive a price for their fruit that justifies buying expensive acreage and extending vineyard properties.
Adding to the dilemma is the fact that, even if farmers plant new vineyard property, they won’t come online for three years. Meanwhile, imports grab ever larger shares of the American market.
Posted by
Alan Boehmer
Alan Boehmer
Portugal's largest wine cork producers introduce a bold recycling program to Oregon and Northern California.
Amorim & Irmãos of Portugal, the world’s largest producer of natural cork wine closures (over 3 billion annually) and their U.S. sales offices, and Anorim and Portocork America, have instituted a pilot program in California and the Pacific Northwest to recycle natural cork wine closures.
Natural cork offers advantages over all other wine bottle closures, along with a few serious disadvantages. Between 5-9% of all wine sealed by natural cork will be affected by TCA, or cork taint. These wines are ruined. However, this year a French company, Oeneo-Bouchage, introduced the first taint-free cork—DIAM—now in use by some of Alsace's largest wineries. This may signal a move away from synthetic closures.
Amorim's ReCork America program has set up recycling centers in several wine regions, including Napa Valley, along with a convenient recycling program. The used corks are placed in the same bags used to deliver fresh corks and trucked by the recycler to a processing plant where the material is prepared for use in floor tiles, building insulation and gardening products. A company is Missouri is producing attractive flooring made from recycled corks and has already partnered with ReCORK to pay for transportation.
Natural cork is a fully sustainable agricultural product. The bark is stripped from cork oak trees once every nine years; the trees live for around 200 years. Natural cork is the closure of choice for all the world's finest wines.
Natural cork offers advantages over all other wine bottle closures, along with a few serious disadvantages. Between 5-9% of all wine sealed by natural cork will be affected by TCA, or cork taint. These wines are ruined. However, this year a French company, Oeneo-Bouchage, introduced the first taint-free cork—DIAM—now in use by some of Alsace's largest wineries. This may signal a move away from synthetic closures.
Amorim's ReCork America program has set up recycling centers in several wine regions, including Napa Valley, along with a convenient recycling program. The used corks are placed in the same bags used to deliver fresh corks and trucked by the recycler to a processing plant where the material is prepared for use in floor tiles, building insulation and gardening products. A company is Missouri is producing attractive flooring made from recycled corks and has already partnered with ReCORK to pay for transportation.
Natural cork is a fully sustainable agricultural product. The bark is stripped from cork oak trees once every nine years; the trees live for around 200 years. Natural cork is the closure of choice for all the world's finest wines.
Posted by
Alan Boehmer
Alan Boehmer
Will the Price of Wine Rise along with Other Commodities?
The media have braced us all for rising prices across the board. We're already suffering from enormous increases in energy costs and since all commodities depend upon energy, everything seems to be skyrocketing. How will this affect the price of wine?
Well, on the bright side, the price of Two-Buck Chuck remains still at two bucks. And inexpensive imports seem to be holding the line for the time being. We've not yet seen the full effect of rising costs in domestic wine, but they are almost certain to impact the cost of wine in the years ahead.
Other factors, too, will affect the price of wine in the coming years. In addition to rising costs of production and transportation, basic market factors will drive up the prices. Wine Business Monthly reports a projected shortage of Cabernet Sauvignon, Merlot, and Chardonnay grapes in the years ahead. Not a single year shortage, which would impact the price of those wines, but an indefinite shortage due to the fact that newly planted vineyards are not going to keep up with the demand.
We can know almost with certainty just what the anticipated shortfall will be over the next three years, since it takes three years for a new vineyard to come into production. The numbers suggest the greatest undersupply in recent history.
If you are a lover of fine Cabernet Sauvignon or Merlot, now is the time to buy those wines and lay them down (in a cool place!) to enjoy when the price of those wines rises as it inexorably will.
Well, on the bright side, the price of Two-Buck Chuck remains still at two bucks. And inexpensive imports seem to be holding the line for the time being. We've not yet seen the full effect of rising costs in domestic wine, but they are almost certain to impact the cost of wine in the years ahead.
Other factors, too, will affect the price of wine in the coming years. In addition to rising costs of production and transportation, basic market factors will drive up the prices. Wine Business Monthly reports a projected shortage of Cabernet Sauvignon, Merlot, and Chardonnay grapes in the years ahead. Not a single year shortage, which would impact the price of those wines, but an indefinite shortage due to the fact that newly planted vineyards are not going to keep up with the demand.
We can know almost with certainty just what the anticipated shortfall will be over the next three years, since it takes three years for a new vineyard to come into production. The numbers suggest the greatest undersupply in recent history.
If you are a lover of fine Cabernet Sauvignon or Merlot, now is the time to buy those wines and lay them down (in a cool place!) to enjoy when the price of those wines rises as it inexorably will.
Posted by
Alan Boehmer
Alan Boehmer
Fine Wines Are Just a Click Away.
No sector of retail sales features the labarynthine maze of regulations that wine sales suffers, especially in the United States. One of the legacies of Prohibition was the development of the "Three-Tiered-System." Producer—Distributor—Retailer. Only recently have some state laws softened to allow consumers to order wine directly from the wineries and have it shipped to their homes. States that allow these purchases are known as reciprocity states. At the time of this writing there are 20 of these in addition to Washington D. C.:
About half the small wineries we have visited in California, Oregon, and Washington are not seeking distributors. To obtain a distributor a winery must produce a certain volume of product which is sold to the distributor at a substantial discount. This is not feasible for the small producer focussing on a high quality product.
So we are seeing a sea change in the way fine wine is marketed. Many of the finest small producers sell only through their tasting room, cellar clubs and online sales. This is becoming an increasing trend. Some of the most desirable wines—Kosta Browne Pinot Noir, for example—are being sold only to members of their mailing list .
- Alaska
- California
- Colorado
- Connecticut
- Idaho
- Illinois
- Iowa
- Michigan
- Missouri
- Nevada
- Hew Hampshire
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oregon
- Washington
- Wisconsin
- Wyoming
About half the small wineries we have visited in California, Oregon, and Washington are not seeking distributors. To obtain a distributor a winery must produce a certain volume of product which is sold to the distributor at a substantial discount. This is not feasible for the small producer focussing on a high quality product.
So we are seeing a sea change in the way fine wine is marketed. Many of the finest small producers sell only through their tasting room, cellar clubs and online sales. This is becoming an increasing trend. Some of the most desirable wines—Kosta Browne Pinot Noir, for example—are being sold only to members of their mailing list .
Posted by
Alan Boehmer
Alan Boehmer
The Rise of Organic and Biodynamically Farmed Wine
First it was organic farming, then sustainable farming, then biodynamic farming. Now all these efforts are recognized by the California State Legislature which has awarded Certificates of Recognition to the winners of the 1st International Green Wine Competition to be held on May 5 in Santa Rosa, California.
The International Green Wine Competition will answer the question, "Which Outstanding Wines Should 'Green' Consumers Buy?"
This is the first competition devoted to recognizing and awarding outstanding wines made from "green" grapes.
"This competition is all about the grapes," added co-founder and Director De-Anna Alba, explaining that only wines made from biodynamically grown grapes certified by Biodyvin (France) or Demeter certified biodynamic grapes, certified organic, transitional, 3rd party certified, and natural grapes will be judged
The interest in organic and biodynamic viticulture is exploding, with many small and mid-sized wineries planting experimental vineyards. Sustainable agriculture has been a major focus of California’s Wine Institute.
When compared directly with non-organic wines from the same producer, we’ve noticed a significant difference in the biodynamic wines. They will certainly be more expensive; and whether the added cost is justified in the quality of the products has yet to be clearly seen.
The International Green Wine Competition will answer the question, "Which Outstanding Wines Should 'Green' Consumers Buy?"
This is the first competition devoted to recognizing and awarding outstanding wines made from "green" grapes.
"This competition is all about the grapes," added co-founder and Director De-Anna Alba, explaining that only wines made from biodynamically grown grapes certified by Biodyvin (France) or Demeter certified biodynamic grapes, certified organic, transitional, 3rd party certified, and natural grapes will be judged
The interest in organic and biodynamic viticulture is exploding, with many small and mid-sized wineries planting experimental vineyards. Sustainable agriculture has been a major focus of California’s Wine Institute.
When compared directly with non-organic wines from the same producer, we’ve noticed a significant difference in the biodynamic wines. They will certainly be more expensive; and whether the added cost is justified in the quality of the products has yet to be clearly seen.
Posted by
Alan Boehmer
Alan Boehmer
Which varietals were most popular in 2007 and what trends were discovered?
According to The Nielsen Company, U. S. consumers purchased 111,584,589 cases of wine in 2007. That's 4.4 750ml bottles of wine per person in the U.S., including infants, infirm, and elderly. The U.S. has become a nation of wine lovers.
We looked at those purchases by sector and uncovered some interesting facts:
We looked at those purchases by sector and uncovered some interesting facts:
- The largest sector of wine purchases was in the $0-2.99 category. Could Two-buck Chuck be responsible for this surprising figure? In any case, we are seeing a continual rise in quality in the lowest-price wines.
- 30% of all wine sold in the U.S. was imported. The biggest importer by volume was Australia. The biggest importer by value was Italy. Surprised? We were.
- Both France and Chile only garnered around 7% each of the import market.
- As expected, Chardonnay topped the list as the most popular wine in America. Merlot, the next contender, achieved around 50% of the Chardonnay volume. Cabernet Sauvignon was slightly lower in volume.
- Another surprise was the meteoric rise of Pinot Gris/Pinot Grigio. This is the new White Zinfandel. Over 7 million cases of Pinot Grigio were sold compared to 22 million cases of Chardonnay and around 12 million cases of Merlot. Pinot Grigio is more than half as popular as Merlot among U.S. consumers.
- Varietal wines outsold generics by almost 3 to 1. This reflects an increasingly savvy American consumer who not only knows what Pinot Noir is, but who may even know how to pronounce it.
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