THE RAPEVINE G RAPEVINE G Your Best Viniculture Source Connecting Suppliers With Buyers Tadeshow Issue 2013 F rom V ine to W ine F rom V ine to W ine Photo Courtesy of: The Unified Wine & Grape Symposium Save Money by Reducing Racking Losses, Pg 7 Crafting a More Creative Label, Pg 11 Reducing Current Tax Liabilities, Pg 33 Vineyard Equipment in Today’s Changing World, Pg 39 Setting Free Canada’s Grapes, Pg 50 Save Money by Reducing Racking Losses, Pg 7 Crafting a More Creative Label, Pg 11 Reducing Current Tax Liabilities, Pg 33 Vineyard Equipment in Today’s Changing World, Pg 39 Setting Free Canada’s Grapes, Pg 50
Transcript
THE
RAPEVINEGRAPEVINEG Your Best Viniculture Source Connecting Suppliers With Buyers
Tadeshow Issue 2013
From Vine to WineFrom Vine to Wine
Photo Courtesy of: The Unified Wine & Grape Symposium
Save Money by Reducing Racking Losses, Pg 7
Crafting a More Creative Label, Pg 11
Reducing Current Tax Liabilities, Pg 33
Vineyard Equipment in Today’s Changing World, Pg 39
Setting Free Canada’s Grapes, Pg 50
Save Money by Reducing Racking Losses, Pg 7
Crafting a More Creative Label, Pg 11
Reducing Current Tax Liabilities, Pg 33
Vineyard Equipment in Today’s Changing World, Pg 39
Setting Free Canada’s Grapes, Pg 50
Trademarking: Selecting a New Wine Name . . . . . . . .4
Save Money by Reducing Racking Losses . . . . . . . .7
The Grapevine Magazine targets the national viniculturemarket and located in Fort Dodge, Iowa.
The Grapevine Magazine is printed bi-monthly and dis-tributed to the most qualified buyers. Opinionsexpressed in The Grapevine Magazine are not neces-sarily those of the publication personnel, but of the writ-ers who contribute stories to The Grapevine Magazine.
ERROR RESPONSIBILITY: The Grapevine Magazine isresponsible only for the cost of the ad for the first incor-rect insertion of the ad. Each insertion of an advertise-ment is proof of publication and it is the responsibility ofthe advertiser to check the correctness of each insertion.The publisher shall not be liable for slight aestheticchanges or typographical errors that do not lessen theintent of the ad. No adjustment can be made for adver-tisements not published. In the event of any error in anad for which the publisher is liable, the liability is limitedto adjusting that portion occupied by the error in relation-ship to the entire value of the advertisement. No adjust-ments will be made 30 days after initial insertion date.
ON THE COVER:The Unified Wine & Grape Symposium is
the largestof its kind in the Westernhemisphere. See Page 9 for more information on this year's event.
In today's competitivemarketplace, vine-yard equipment isconstantly evolving toimprove productivity,efficiency and quality.
Page 39
Naming a new winecan be very tricky,The name of manyother products orservices can presentan issue.
Page 4
Until just last year, itwas illegal for any-one in Canada tocarry a bottle ofwine across provin-cial boundaries, buthas anythingchanged?
Page 50
Distilling and craftbeer brewing hasbeen added to thegrowing diversifica-tion mix of today'swinemaker.
Page 19
aming a new wine can be very tricky. Not onlyshould you avoid names already taken by otherwines, but also you should consider other products
and services. The name of a beer or hard alcohol can stand inthe way of registration or use of your selected name for wine.In fact, the name of many other products or services can pres-ent an issue depending on a number of factors.
A start up California winerynamed itself Bell Hill Vineyardsand intended that its wine labelwould prominently display“BELL HILL.” Ms. JuliaMartelli, owner and manager ofBell Hill Vineyards, filed a fed-eral intent-to-use trademarkapplication on BELL HILL forwine. Whether or not she haddone a trademark search, we donot know.
Ms. Martelli did a good job onthe application itself. TheExamining Attorney at the USTrademark Office found theapplication to be in order.Therefore, as is standardTrademark Office procedure, theapplication was published for
opposition by third parties. Bell’s Brewery, Inc., a brewery inMichigan, opposed issuance of the registration on BELLHILL. It said that BELL HILL on wine would be confused byconsumer’s with its mark BELL’S, which Bell’s previouslyregistered for beer.
No one gets confused between beer and wine (unless theyhave had too much of one or the other). But, that is not thestandard for a finding of trademark confusion. The standard iswhether it is likely that ordinary consumers of the first trade-mark owner’s products or services would be confused, whenthey see the second trademark in question, as to whether ornot the goods or services are produced by or sponsored by thefirst trademark owner.
The opposition proceeding in the Trademark Office is like alawsuit. However, instead of a judge and jury, the TrademarkTrials And Appeals Board (TTAB) decides the case. In thiscase, the TTAB looked mostly at four factors of an eight factortest for determining whether there was a likelihood of confu-sion between the two marks:
1) How close are the two marks? They said that BELL’Sfor beer was one word with a picture of bells next to it.This picture reinforced the meaning of the word as relat-ing to bells. While BELL HILL had the word “bell” incommon, it has a different meaning: BELL HILL soundslike a place.
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In The Winery • November - December 2013
N
When Selecting A New Wine Name, Do I Need To AvoidNames Used For Beer & Other Alcoholic Beverages?By David Hoffman
2) How close are the goods? The TTAB said that beer andwine are related because both are alcoholic beverages andboth often sold in the same stores. Occasionally they aremade by the same company.
3) How strong is the first trademark? The TTAB said thatthe BELL’S mark was not famous and was not a reallystrong mark.
4) Are consumers sophisticated and/or is this type of goodan “impulse” buy, or purchased after a lot of thought? TheTTAB concluded that wine was generally not an impulsebuy, and consumers, though not necessarily sophisticated,had some sense.
On balance, the TTAB found thatthere was no likelihood of confusion.In this case, it took roughly fouryears. Ms. Martelli handled it on herown and to her credit again, she pre-vailed. Even without racking up tensor hundreds of thousands in attor-neys’ fees, the proceeding tookcountless time away from her pri-mary work on the winery.
To illustrate that the comparison oftrademarks on wine and on beer isfact specific, Franciscan Vineyards,Inc., the owner of the markRAVENS for wine, was able to stopBeauxKat Enterprises LLC from reg-istering the mark BLACK RAVENBREWING COMPANY for beer.
1) Comparing the marks, the TTAB considered “RAVEN”in BLACK RAVEN BREWING COMPANY to be the“dominant” part of the mark. Why? Because ravens are allblack, and “brewing company” is a descriptive part of themark. The dominant part of each mark was essentially thesame. Although RAVENS is plural and RAVEN is singu-lar, the difference between singular words and pluralwords is usually of no import.
2) The TTAB had essentially the same conclusion on therelatedness of beer and wine as in the Bell’s case.
3) Although not famous, the RAVEN mark had somestrength. RAVEN is completely unrelated to wine, and sois an “arbitrary mark” in relation to the goods. Arbitrarymarks (and made up words) are strong marks.
4) The TTAB appears to have reached a similar conclusionregarding the sophistication and attention of purchasers.
On balance, the TTAB found that there was a likelihood ofconfusion. What did BLACK RAVEN BREWING COMPA-NY lose? This fight lasted about two and a half years, andmust have cost quite a bit of money.
CONCLUSION
When selecting a trademark in the wine industry, do notignore trademarks of other goods and services, especiallythose of related goods such as beer and other alcohol products.Moreover, just because you have reached the right conclusionthat your mark is different enough from the rest to be okay touse and register, does not mean a third party won’t reach theopposite conclusion. You must also consider whether or notthe mark is close enough to another mark that the trademarkowner may still come after you. I call that being too far intothe “gray zone.” Stay out of the gray zone, unless you have asubstantial risk tolerance and litigation budget to back up thatrisk tolerance.
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In The Winery • November - December 2013
David Hoffman has been an attorney practicing exclu-sively in intellectual property law (patents, trademarks,copyrights and unfair competition) since 1985. Mr.Hoffman represents multinational companies as well asnumerous start up to medium sizebusinesses. He both litigates andprocures rights for his clients, andwith his philosophy of procuringthe broadest rights possible, per-forming good clearance proce-dures, and negotiating, has suc-cessfully avoided and minimizedlitigation for clients he counsels.
Mr. Hoffman has taught for apatent bar review class, hasauthored articles and given lectures on intellectual prop-erty, and has been named to Who’s Who MillenniumEdition and Who’s Who Among Rising Young Americansin American Society & Business.
Turning New Ideas, Names, Products & Computer Programs
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For More Info...661.775.0300
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The Grapevine • November - December 2013 877-892-5332 Page 7
In The Winery • November - December 2013
Lees Filter Press Operationuring harvest, the winemaking staff will often coldsettle the juices for white wine making and potential-ly for cold pressed reds to be made into a blush style
wine. Many smaller wineries may collect the sludgy bottomsof the tank and try to ferment them unsuccessfully. Otherswill simply allow the bottoms to go down the drain. Bothapproaches result in an immediate financial loss to the winery.
Another approach through the use of a lees filter press unitwill allow for the recapturing of these “bottoms” off theirrackings and allow these juices to be fermented into a verydesirable wine. The lees filter press units have often been saidto pay for themselves in the first two to three years if usedproperly. This may happen sooner depending on the size ofthe winery and the ratio of red to white wine production for aparticular winery.
Financial Impact Example:If a winery presses 40 tons of white grapes per year one
could expect the following depending on the variety of whitegrapes and their average yields. Forty tons may result inapproximately 6900 gallons of juice. After cold settling forapproximately 24 hours, the winemaker may rack off 6600gallons with a potential loss of nearly 300 gallons. The 300
gallons left over may actually result in roughly 250 gallons ofclean juice after filtering through the lees filter press. Thismay, after normal winemaking losses, result in a 1200 bottlerecapturing of wine from “waste” and that, represented in dol-lars at an average $10.00/bottle return, is $12,000.00. Soonthis non-glamorous and down right dirty operation becomes ofinterest! Not to mention the wines usually ferment out verynicely – sometimes better than the clear racked wine! Theabove calculations are an average. Results may vary depend-ing on many juice components such as pectin, pH, temperatureand solids content from the crush pad equipment. The individ-ual winery tank sizes and configurations may also affect thesenumbers.
Setting up the Filter:It is always recommended to follow the directions that comewith the unit when possible. Please refer to these first as yourprimary source of information. If directions are unavailable,use the guideline below to get started.
1. Back off the screw portion on the lees filter press to openthe gap for access to the filter plates.
2. Carefully examine the filter plate cloths (canvases) andlook for abnormalities such as rips, tears or creases. Allthe cloths should look the same.
3. Examine the filter plates and make sure an understandingis established on the unit’s juice flow inside the filter.Make sure all the plates line up properly and that the endplates are positioned properly at the ends. Does the plateconfiguration align with the fixed plates on the filter ends?Does the flow of juice in the unit make sense to you?
4. Determine where the juice goes into the filter and how itexits.
5. Close the unit and pressurize to the normal or recom-mended pressure making sure all the plates are firmly heldinto place. Check that the canvases are not pinched orcreased possibly creating a leak when filtration begins.
Process:This process is very easy once one gets the hang of it. At
D
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In The Winery • November - December 2013
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first the winemaking staff may look at the process in disbeliefthat another operation will take place during crush. Aftertime, it is a fun rewarding process and many can master waysto reduce the mess greatly. Using this step by step operationwill become a template for helping this process along towardsuccess.
Set up the lees filter properly and according to the instruc-tions if they were provided. If not – study the piece of equip-ment to understand how it works (see above). The overallprocess summary is that the sludge juice is mixed with DE(diatomaceous earth) and under large pressure forced throughcanvas filter covers. The canvas will hold back the DE anddirty juice mix sludge and will ultimately become the filtermatrix.
1. Perform a clean racking on a white wine juice after coldsettling with enzymes and SO2 only. One may use otherfining agents potentially at this step. The main agent notto use is bentonite. This will surely throw off the LeesFilter process and lead toward major frustrations and/orfiltration failure.
2. Collect the racking bottoms in another tank or leave themin the same tank if one can perform the rest of the proce-dure properly in the tank in which the juice was initiallycollected.
3. Measure and record this volume of juice settling bottomsfor internal and TTB recording purposes.
4. Be able to continuously mix these juice bottoms with aguth style mixer or with a food grade plastic shovel. (Fortime reasons the author recommends a guth style mixer inthe racking valve of the tank)
5. Add 50 pounds of 545 DE per 1000 liters (264 gallons) ofjuice bottoms and continue to mix. (Please investigateDE and its potential hazardous conditions before usingthis product and remember to wear all safety equipmentnecessary. This product may be hazardous to your health.Consult your onsite Materials Safety Data Sheets)
6. While mixing continuously attach a hose to the lees filterpress inlet from the bottom valve of the “sludge tank”.
7. Open the valve and allow the juice DE mix to flow to theunit inlet.
8. Start the operation of the unit with the plates well sealedtogether at the proper recommended hydraulic pressures.
9. Have a piece of hose lead into another tank or bucket tocatch the first amount of filtrate that comes through. Thisis often very dirty at the beginning of the operation. Thewinemaker may return this juice to the sludge tank toeventually be filtered again. (This amount is often lessthan 10-15 gallons depending on the unit, juice and theoperator)
10. Once the filtrate is “clean” start to capture that juice inanother tank. Record volumes as needed.
11. Continue to monitor the process by checking on the unitfrom time to time. Listen to the unit as a rhythm will beestablished and one can watch the unit out of the “cornerof his or her eye”.
12. The pressure build-up will progress over time and theunit pump will engage with larger time intervals in-between. This is a sign the unit filtration is clogging and
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In The Winery • November - December 2013
the unit may need to be re-established removing the cakesformed. The flow rate will slow and become an unpro-ductive process.
Important Note: Keep an eye on the operation and themixer. As the juice/DE mix nears the racking valve (typicalmixer area), turn the unit off to avoid mixing to a “froth”.At this point substitute with mixing by hand using a foodgrade shovel or similar action.
Stopping the Unit:1. When to stop the unit is a judgment call. This can be in-
between pressloads from the crush pad or other opera-tions of the normal winery day.
2. Turn off the machine.3. Unplug the unit (optional but recommended).4. Immediately shut the valve at the receiving tank.5. Immediately shut off the valve at the sludge bottoms
tank.6. Drain off any clear juice and place in the filtered juice
tank.7. Depressurize the unit if drawing off any clear juice did
not perform this operation already.8. Release the hydraulic pressure cylinder and back the fil-
ter plates off one by one.9. While moving the plates backward, try to remove the
solid “cakes” of DE and solids from in-between the can-vases. These may remove easily if the process went well
and the ratio of DE to juice mix was formulated properly.If a slimy cake developes – change the DE to juice mixratio. [Increase the DE amount]
10. Once all of the cakes have been removed rinse the unit,the canvases, all interior and exterior portions andreassemble the press to start again.
11. Plug the unit back in, open valves as necessary to restartthe unit and restart the unit. Remember to catch the firstfiltrate since this may not be as clear as desired andreturn to the unfiltered tank sludge bottoms.
12. Repeat as necessary.
Collecting Juices:Multiple lots: During harvest the winemaker may find thetank space crunch and the speed of the fruit coming in thewinery door may necessitate blending of pre-fermented juices.This can been done with success: however, strict records needto be kept to be able to track certain lots, with chemical data,so adjustments can be made to each juice and its contributionto the blend. Juices have been stored with success, as well,during the early stages of harvest for a couple of days. If thewinemaker presses 4 tons on one day and more fruit is expect-ed in the next two days, the winemaker may chill the juice bot-toms collected, potentially add additional sulfur dioxide, andstore the juices until a large enough run has been gathered tojustify starting the lees filter press operation. Collect all vol-ume data before and after operation to be able to report allblending activity.
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In The Winery • November - December 2013
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Reducing the Mess:Every winery layout and lees filter will vary significantly.
Try, however, to locate your lees filter press close to an electri-cal outlet that will run the unit and close to your raw materialssuch as DE, sludge bottoms (or a permanently designated"sludge bottoms" tank) and crush pad. The lees filter pressshould be located in an area near a drain and water source sohosing down the unit will be convenient and reduce the mess.Place the filter where the blow-by rinse water will not land onelectrical plugs or other areas and equipment that may be diffi-cult to clean afterwards. Use warm or hot water since this willhelp greatly to neutralize and dissolve the sugars of the juicefrom the equipment and canvases. If possible try to capturethe “cakes” of DE as they fall off the filter plates after disas-sembling the lees filter. This can be done with a bin or tub.Otherwise shoveling may be needed.
One does not need to clean the unit immaculately in betweencycles or setups in one particular day. More of a gross clean-ing will suffice to set the unit back up and get rolling again.
Some of the downfalls of a Lees filter Press:
If a great understanding of how the unit works is not estab-lished the unit can become a great source of bad cross-contam-ination. The units are easy to clean but one must make sure toflush out areas such as the piston pumps, surge tanks, inletcenters, sample valves, check valves, canvas sheets etc. Flush
all parts with copious amounts of water. Make certain to storethe canvas cloth plates so air may pass between them aftercleaning, otherwise a mold/mildew may form.
Store the unit inside when not in use. Do not leave the unitoutside for extended periods of time after its use. Sunlight willbreak down the canvases and they will need to be replacedsooner than normally expected. This goes beyond the normalproblems associated with storing any electrical equipment out-side.
Space: These units are usually large size in order for them todo their job properly. They take up large amounts of spacewhen not in operation.
Conclusion:The lees filter press is a very rewarding operation to the
winemaker and the financial bottom line of the winery. Oncethe cellar team integrates this extra operation into their harvestroutine it becomes a "piece of cake". It looks difficult andlaborious but it can become easier if set up and run properly.Investigate your operation to see if it makes financial sense toadd this piece of equipment to your cellar. Check out thesemoney saving units at your upcoming trade shows.
Owners: Please reward the cellar crew in some fashion forgoing this extra step. It is a very dirty and labor intensiveoperation at the busiest time of the year.
Celebrate and reward!
The Grapevine • November - December 2013 877-892-5332 Page 11
creen printed bottles are not exactly a traditional pack-aging option for winemakers: The multi-color templateand all of its floating icons and in-your-face fonts aren’t
made to represent storied vintages. But looming on the shelfamong hundreds of ink-and-paper-pasted varieties, competingfor the attention of a young, trendy wine drinker, modern labelmakers say the screen printed bottle has become a successfulmarketing and branding tool.
“When a consumer is shopping for wine at the grocery storeor wine market, they’re almost blinded by paper labels becausethere are simply so many,” noted Mike Bergin, President andCEO of Bergin Glass Impressions, Inc., a Napa Valley-basedcommercial wine label printer which specializes in artisan etch-ing and screen printed labeling. “A screen printed bottle standsout because it’s something different,” Bergin continued.“Buyers are intrigued by the packaging and that’s criticalbecause it’s what draws the consumer in. I would say at least75 percent of the buy is based on packaging alone.”
Screen printing, also known as ACL – applied color labeling,is a process by which ceramic paint is applied directly to thesurface of a bottle and fired through a furnace. After firing attemperatures of up to 1180° F, the label design is permanentlyfused to the glass. The unique look serves as a pretty signifi-cant brand builder, Bergin says, and the paperless wine labelsare favored by clients and designers who want flexibility andcreativity far beyond what paper or pressure sensitive labelscan offer. But the pros of the process extend way beyondbranding.
“When you’re bottling wine the achilles heel is always thelabeler,” Bergin told The Grapevine Magazine. “The cornerscan peel, the paper can scuff or get roughed up. They’re alsopressure sensitive and can wrinkle. In addition if you’re bot-tling the wine really cold, you have to worry about condensa-tion. That’s why from a production standpoint, screen printingis such a dream. There’s no bubbling, tearing or crooked labelsto worry about. A screen printed label does not degrade. Storeit in a dusty cellar for 10 years, you can wipe it with a softcloth and it will look like it was just printed last week. Plus,breakage worries and the resulting collateral damage is alsolessened.
“When you’re shipping a palette of wine and one bottlebreaks, it usually pours through four or five cases, spatteringall of the paper labels and rendering them unsellable,” Bergin said. “If a screen printed bottle breaks, you wipe it off andrebox the wine. No stains, no losses.” There’s also a 360ºdesign surface to work with and vertical height surface 1/2”inch from base of the bottle to the shoulder. The bottle design
S
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In The Winery • November - December 2013
can even be printed in precious metalslike gold and platinum. There’s ease inthe bottling process too – small wineriesand their mobile bottlers simply have tofill, cork and foil, the labeler is neverturned on. The value for winemakersisn’t so bad either.
“It’s a cost effective alternative topaper labels,” Bergin told TheGrapevine Magazine. “Screen printingcosts are a matter of case quantities andare usually custom quoted, but whenyou break it down, ink labels are usuallysignificantly more expensive.” It’s atrend that surfaced in the wine industrymore than a decade ago, bringing a newlook to shelves across the country. Butthe popularity of screen printing is nowgrowing. In The Grapevine Magazine’s2013 Reader’s Survey, 87 percent ofwinemakers surveyed planned to pur-chase glassware for their business in2014. Eighty-two percent of readerswere interested in exploring new tech-nology and 27 percent specifically askedabout the screen print and etchingprocesses. And many labelers say it’s thedesign options that make these labels sointriguing.
“I love the cleanness of screen print,”Bergin said. “You can create incredibledesigns with two to four different colors,using the bottle surface as your canvas.And you can print 360 degrees aroundthe bottle, which you cannot do withpaper. It’s elegant, understated and pow-erful.”
Although the screen printing technolo-gy has been refined in Europe and manyof the best machines are produced inItaly, Germany and France, Bergin saysyou don’t really see a lot of Europeanwinemakers making use of screen print-ed bottles. “A lot of the high end vodkabrands use it and other liquors will usu-ally employ a screen printed label but asfar as French, Italian and Spanish winesgo, there are very few screen printedlabels,” Bergin said. “Many of thosewinemakers are very traditional, so theywant to use the same labels that theyhave been using for hundreds of years.California believes in new world mar-keting, so they are much more open tothis type of packaging approach. Youvery rarely see wineries in Europe doingthis process but it’s wonderfullyembraced in America.” The even more
complex artisan technique of bottle etch-ing and hand painting is also enjoying aresurgence in the winemaking industry.
“Screen Printing is our power andglory, but etching accounts for abouteight percent of our revenue,” notedBergin, who employs a staff of 12 for itshand-crafted services - eight artisanpainters and four etchers in total. “Theetching process allows us to do someincredibly complex work and we canrecreate any label or design, no matterhow intricate.” The etching process -which can take anywhere from 30 min-utes to 10 hours to complete, dependingon the complexity of the design –involves a sandblasting technique whichetches carefully designed logos andwords directly into the glass which isthen hand painted right on the bottle.The process is usually reserved for spe-cialty pieces, large bottle formats offeredstrictly to wine club members or as winebuying incentives. Winemakers also usethe pieces for charity auctions or as mar-keting generators.
“The etched bottles were pretty muchalways used for charities and specialauctions and then the larger winemakersdecided to create special distributionincentives to move cases of wines,”Bergin told The Grapevine Magazine.“Those three liter items were engravedand hand painted, some bonus bottleyou’d get if you ordered something like10 cases of wine. That’s how the distri-bution incentive program was born.”Other etched bottles are held for thewinemakers’ libraries or collected byenthusiasts. They’re usually all num-bered and featured in limited editionquantities, creating even more of adesire for what Bergin calls the “RollsRoyce of wine bottle decorating.”
“Etching and screen printing are twowidely different processes,” noted OleWestergaard, vice president of Cooper& Clement, Inc., a promotional productsupplier in Syracuse, NY, which marketsa range of etched and screen printedwine glasses and goods. “Etching isdone by hand, one piece at a time, byapplying a mask on the bottle and blast-ing away part of the glass going as muchas a 1/16 deep into the glass. It has nocolor and details have their limitations.Graphics and fonts are then hand paintedinto the etched area after blastingoccurs. The cost per bottle is very high,
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The Grapevine • November - December 2013 877-892-5332Page 14
In The Winery • November - December 2013
$20 or more, so in no way does it lend itself to mass volumeand is never used for inexpensive wines or even moderatelypriced wine.” But there is still a thriving market for this typeof specialized service.
“We etch about 10,000 bottles a year, creating large formatpieces for a variety of different wineries,” noted StuMcFarland, Owner and President of Etched Images in Napa,who has been in the etching business for 22 years. “Most ofour business comes from Napa and Sonoma Valley and somewineries from the central coast. But we have a really good cus-tomer in Australia and just finished an order for a business inJapan. Our customers use these bottles for advertising purpos-es and branding, but they’re also distributed to wine clubmembers as well.” It’s an elite product, McFarland explained,describing the painstaking effort each bottle requires.“Every year we create a Darius series for Darioush which ishighly complex,” McFarland said. “It takes about 20 minutesto sandblast and etch each bottle and then there’s about fourhours of painting. There’s a lot of complex colors, lots of finepainting with little tiny brushes so we only do about 150 ofthose.”
Depending on the complexity of the artwork, Etched Imagespricing starts at $16 per bottle for an order that exceeds 289750ml bottles.“We have real artisans working for us becausethis is a process that requires so much training and skill,”McFarland concluded, detailing his staff of 17. “These bottlesare collectibles, artwork if you will, so you’re not going to seeour work on a grocery store shelf.”
Fred Brader, President of Innovative Sourcing, a packaging
company in Yakima Washington which works as a liaisonbetween winemakers and screen printers, says alternative bot-tle labels – etched or screen printed – certainly create a brand-ing buzz.“It’s unique and screams added value,” Brader said.“That type of packaging naturally draws attention to the prod-uct.” That’s why Brader’s business offers a sort of turnkey dis-tribution for small to midsize wineries, supplying the bottlesand working as a design middleman between the artist at thewinery and the art department at the screen printer.
“We’re a marketing, consulting and packaging company thatbrings all facets of the process together,” Brader said. “If youdon’t want to use a standard paper label, we come in and cre-ate one stop shop atmosphere. We sell the bottle, makearrangements to deliver it to the screen printer and furthermake arrangement to print cartons and enhance their brandingat the grocery store for an endcap. It’s all part of better distri-bution which in turn increases branding and marketing.”For many winemakers who are simply focused on makinggood wine, it’s an important service.
“What we find in the market is that our customers are veryartistic and can make great wine but they often don’t have themarketing or sales staff to run a business,” Brader concluded.“So we go in and help customers in the areas they need assis-tance and this is usually one of them. They want to do a screenprinted brand but they don’t’ know where to start, so we takecontrol of all of the marketing and brand management whilethey focus on making and selling wine and keep more profit intheir bottles.”
Which businessare you in -- wineas a drink, or wineas an experience?
Life-Cycles - Part 3
By Miguel Lecuona
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In The Winery • November - December 2013
o not expect customers to remain loyal to your busi-ness. Rather, insist that your business remain loyalto them.
This is the basis for all customer relations. Read this 10times, skim the rest of the column, and I would believe yourtime would be well spent! That said, I am happy to presentPart III of Life-cycles, a primer to improve CustomerRetention and develop your own approach to customer loyalty.
In Life-cycles Part I, we defined whether your winery is inthe Wine-as-Drink business, or Wine-As-Experience business.We presented the Customer Lifecycle model, and created atactical grid for your team to develop profiles, messages andplans for sales growth based on the “one day drive” test. Life-cycles Part II probed key concepts of customer retention,focused the reasons for customer cancellations, and spent anagonizing amount of time to persuade you of the folly of try-ing to outrun your customer defection rate with discountedsales. Now, being sufficiently impressed with the importanceof life-cycle marketing and retention, what exactly should youdo about it?
First Things First - PeopleIt is tempting to trot out a bunch of ideas -- anniversary
awards, CRM-driven sales offers, contract minimums, loyaltypoint programs -- to create the trappings of a winery retentionprogram based on carrots and sticks. (It reminds me of the oldCheers show, and barfly Norm’s blunt admission when dis-cussing a questionable job with his boss: “I can’t be bribed,and I can’t be threatened. But put those two together andyou’ve got yourself a deal!”) This approach does have thevirtue of well intentioned activity and would certainly helpmatters. But as you are living this reality in the our belovedindustry, let’s recognize that wineries, vineyards and vintagesall operate on a long-term basis. We are interested in thoseprograms, but only when the foundation for continued successis deeply engrained. Hence, life-cycles.
Which brings us to you, the Owner. You may be a 4th gener-ation farmer, a self-taught wine maker, or an investor going allin for your dream. Regardless, it’s on you to set the tone forcustomer retention with your staff. It’s easy to pick out thewine owners who put customers first. They take time out oftheir day to greet newcomers, meet “just one more friend” ofclub members, or hold an impromptu cellar tour and barreltasting with a bridal party from a limo group. I love it whenour marketing meetings are delayed for these reasons. When Itag along to watch this sort of interaction, the Owner BestPractices for Wine Club Member Loyalty spill out.
• Being There: For wineries focusing on wine-as-experi-ence, nothing is more powerful to your wine club members
D
The Wine Club Customer Lifecycle
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- and for your staff - than an owner who is at the wineryevery day. The sheer delight that customers show whenthey meet the owner, the wine maker, or the grower of theirfavorite wine is a genuine pleasure, and one they want torepeat. Obviously, you must manage your schedule withsome discipline, but if you want to increase loyalty of yourwine club members, spend time with them. Informally atthe tasting room, at every special wine club event, andwhen practical, on the road in their home town at private orticketed tastings.
• Tell it to their Face: It’s an obvious statement but one thatbears repeating. Learn your Club members by name. Greetthem by name. The worst thing is when repeat customerswander into the tasting room and nobody recognizes them.Have your staff prepare “flash cards” so everyone canmatch names to faces. Use facial recognition programs oniPad and photo programs.
• Tag, you’re it: Use name tags at events so all members canovercome the “I should know you but I don’t remember”moment that permeates social occasions. And so thatyou can be assured of remembering everyone, too! Havenice tags made up for regulars when they arrive, and hand-write tags for new members as they join. Of course, tellyour members about your Facebook page and to tag tag tagaway whenever they can on all your pictures.
• Pour it on: There is no better excuse for a personal, privatemoment with a guest than when the Owner is the one pour-ing the wine. Get a nice sturdy carafe/decanter for yourbarrel room, or a glass barrel pipe, and serve your cus-tomers! Use that opportunity to reinforce their visit, or bet-ter, invite them to participate in a special release opportuni-ty or upcoming event. This is one of THE moments foryour club member. Taste and enjoy your wine with them.
• Develop Amabassadors: Your wine club is full of peoplewho are ready to sing your praises, perhaps on a profession-al basis. Some will be in the industry -- in the trade, with adedicated peer tasting group, perhaps contemplating theirown vineyard ventures, or writing a wine education blog.It’s important to identify these industry resources withinyour membership, and when practical, consider an industry-only type of function that lets them convey your story totheir own audience, or a discounted sampling program withsome of your more interesting wines as an off-the-recordperk for their tasting groups. Again, the point here is torespect the diverse interests of your members and rewardtheir natural enthusiasm for your winery. (A CRM clubmanagement program will let these members identify them-selves to you. We will discuss that in a future column).
These may be “obviologies” (the art of not ignoring simple,important truths). I imagine you are checking a few of theseoff on your own activity list. But they are exactly the hi-touchmoments that go a long way to ensuring your members justhow special they really are to you. I hear them telling everyonehow the highlight of the day was when the owner poured theirfavorite wine and invited them to the next event. Trust me,
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other businesses would love to have these sorts of personalone-to-one interactions that should be a routine part of the dayin your winery.
Your Place or Mine?How is your winery and facility set up to accommodate Club
Members? Over the course of the year, how often willMembers visit and participate in your events? These areimportant determinations for Loyalty, tying in with a challeng-ing comment from Members: “I used to feel like this was mywinery, but now it’s so crowded here, it doesn’t feel the same.”Many wineries in Texas are experiencing an influx of new cus-tomers, as the popularity of the Hill Country region reachesnew heights. Articles in USA Today, the New York Times, andmajor regional bloggers all point to this region as one of thetop wine destinations in the country. This puts pressure onwineries to assess physical space. After all, future wine clubmembers come from this pool of new customer traffic. So youmust find ways to hold on to those aspects of your winery thatbrought your first members to you, while accommodating thegrowth you need to succeed.
Any discussion of facility planning requires both capitalinvestment and operating expense budget issues. Assumingyou have those financial considerations in mind, here are threeways to handle the continued growth of your wine club in away that recognizes and rewards their loyalty while accommo-dating more new customers.
1. More Club Events: Many wine calendars are covered upwith weekend tourist activity, association events, and gen-eral Wine Club Release parties. As your winery becomesincreasingly busy with the normal course of business, yourWine Club Membership may feel crowded out by newarrivals and day-trippers. Alleviate this by scheduling moreMember-Only events, both at your winery and perhaps atlocal restaurants. The important thing here is to communi-cate with your Membership and create exclusive opportuni-ties to share time together. Off-peak dinner events; ticketedtasting events; chef-winery paired dinners at local restau-rants. All of these can afford the growing wine club withmore chances to participate. Granted, it does require moreservice time, attention and operating expense. But that’swhy we’re here!
2. Add a “Wine Club Member” Room: If space and thebudget are both generous, consider a Member facility onpremise. I think this is a delicate choice requiring extensiveplanning and real care in implementation. This can be donepoorly, and the correction is difficult, expensive and timeconsuming. There are several choices, and the sky is thelimit. If you do go down this road, do not do it “on thecheap”, with a rope line and a couple couches inside yourexisting tasting room. A Members-only facility needs to bean upgrade in every way -- view, selection, service, andexclusive access. You can consider whether it is open forall hours, or just special occasions. The two best views:your own vineyard via covered multi-use pavilion and partystation, or down a set of stairs into your own cellar, sur-rounded by bottles, barrels, candle light, and hidden pas-
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sages. I’m not kidding! We don’t have the budget ofChateau Smith Haut-Lafitte to build a Goldfinger-esquetrap door into the main floor to whisk visitors to a subter-ranean tasting room. But the more drama the better! Andhere is where you exhibit your own history, so Memberscan understand the winery they have joined a little moreintimately. Membership should have its privileges!
3. Open Tasting rooms away from the main winery: Athird option is to consider expanding your reach. GrapeCreek Vineyards, on Wine Road 290 in the Texas HillCountry, has a beautiful winery and expansive grounds.They also opened tasting rooms in nearby Fredericksburg,and in Georgetown, a suburb north of Austin. BoxwoodWinery in Middleburg, VA has a tasting room in Reston,the heart of the Dulles Corridor technology center. Theseremote locations can help bring their wines to newprospects, offering greater conversion opportunities. Theycan also make it “easy to do business with” for local clubshipments and pickups.
Tools and SystemsThe purpose of these “People and Place” ideas is to proclaim
that Retention and Loyalty marketing are fundamental buildingblocks of any winery. That said, today’s array of club man-agement software programs, CRM tools, and online sellingapps are increasingly helpful and valuable to take your sales,marketing and customer retention programs to the next level.Once we have the Owner shaking hands and serving wine, and
your Members feeling at home and entertained, let’s talk to theWine Club Manager about these software tools. As your wineclub grows beyond the notepad and spreadsheet, an investmentin club software programs by eWinery Solutions, Nexternal,and Vinteractive can occupy a greater role in the way yourwinery is perceived by your club members. These programsbring an incredible capability to even the smallest winery, butrequire a dedicated level of attention by your staff, in partner-ship with the software provider. They are not trivial invest-ments, and the prospect of using one is daunting. When itcomes to choosing between an investment in computer soft-ware for the office vs a new tractor for the vineyard, you canguess the outcome. As I was told repeatedly in Bordeaux,“We are farmers!” Yes, but your customers buy onAmazon.com. So, this is worth consideration, and is a grow-ing expectation.
These programs will be covered in a future column of theWine Marketing Guide. Until then, remember:
Do not expect customers to remain loyal to your business.Rather, insist that your business remain loyal to them.
Miguel Lecuona, Wine Marketing Guide LLC
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t was an exciting area of moonshiners and bootleg beerthat has been romanticized in film and literature. Beerbarron Al Capone fighting for control of the Chicago
underworld during the dark days of Prohibition. Moonshinersin the deep south with illegal stills and souped up cars racingto outrun the Fed's on back roads in a race for profits.Gangland wars in Chicago with warring factions gunning eachother down in the streets while speakeasies proliferated fasterthan bullets fired from a Tommygun! It was an era of violence,not to mention bad booze that was the foundation for thegrowth of organized crime.
Today that "Godfather" scenario has all but faded into thedustbin of nostalgia, and has gone from zero to sixty as it isnow a Medusa head combination of the distiller, the brewerand the vintner all rolled into one. Distilling and craft beerbrewing has been added to the growing diversification mix oftodays winemaker, and the winery of today is seeing an explo-sive surge of popularity in this growing phenomenon of liba-tions multi-tasking.
What is the reasoning behind this tasty trend? Is it for someaesthetic purpose to creatively explore new paths to offer thepublic a choice of "art in a glass" whether it has been ferment-ed, distilled or brewed? Or is it driven by something more bot-tomline oriented to increase profits while increasing productlines? Of course when you increase product lines, you alsoincrease the costs to produce it, along with now having tofight for shelf space for two or three product offerings asopposed to one..the wine! Don't forget marketing which will
also now take you to where no winemaker has gone before toa marketing galaxy far, far away and you don't want yourwhiskey confused or competing with your Chardonnay.
It's a trend that many are watching to see if this trend willlead to a boom or a bust, and will the wineries production ofred wine keep the corporate books in the black! A lot of winer-ies in the Midwest began diversification over a decade ago.The economy at the time was not healthy some of the wineriesdecided that diversification was good for the bottom line byincreasing revenue and profits. Although some wineries wereand are adding brewing capabilities, distillery operations seemto be the most prevalent with many producing lines ofwhiskey, gin and vodkas. Don't be surprised if you start seeinga trend in sake production start to take hold as well. There area few speed bumps along the way to impede the initial produc-tion of these craft spirits, but all in all, most agree if you havean operating winery it is generally easier to start your diversi-fication portolio. Distilled spirits like wine has a gauntlet ofregulation you have to traverse to get from point A to point Bbut it is generally the same government officials you alreadydeal with for the winery operation so familiarity of each sideof the coin should speed up the process as you diversify.
Most wineries who start micro-distilleries start with the pro-duction of Vodka as it does not require aging and can get tothe market faster to start generating revenue. It also has ashorter learning curve for the novice distiller to get their feetwet and move onto other products such as whiskey. Today'swines do battle in a global marketplace which means competi-
I
Distilled Spirits and Wines Equals a Healthy Bottom Line By Mike Marino
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tion for consumer dollars is more fierce than an out of controlroller derby championship. Spirits however have less globalcompetion and are more readily marketed and purchased byregional customers, but then of course there has to be a localmarket to begin with. Micro distilleries like craft beers andwines are a major growing component of the burgeoning loca-vore movement of locally produced foods and drinks.Americans are buying more homegrown fruits and vegetablesand local wines and drinks to not only show support of theirlocal vendors but because it makes good economic sense forthe community at large. Many restaurants are locavore friend-ly and will opt to serve dishes made from locally grown foods,and if they serve beer, wine and spirits they will be moreagreeable as well to offer locally produced products fromwineries who have diversified into those areas.
Take a winery, place it in the beautiful Napa Valley wherewine is king. Now, add a distillery and voila! You have theCharbay Distillery (www.charbay.com) and Winery that gotit's start in 1983 in St. Helena, California. Miles and SusanKarakasevic are carrying on the traditions of 12 generations ofEuropean winemaking and distilling.
According to Susan Karakasevic, "We are a family run win-ery and distillery. We strive to preserve the old world feel aswe share our wines. Our family has roots in Yugoslavia andhave in the business for generations. We ferment in small lotsand age in French oak barrels. Charbay is a three fold experi-ence that includes good aroma, full body with mouthfeel andthen a full lingering finish."
Diversification came in the 90's. "We started making fla-vored vodkas from whole fresh fruit – we created a niche ofartisan distillers in the vodka world – a few years later wereleased the Clear Vodka that was our base. That was foreignto Miles because he is all about flavors – but it paid off andcontinues to be a front seller for us," said SK
Diversification into other products also brought more atten-tion to their wines as the added product offerings reach out tonewer consumers who enjoy their distilled spirits. Revenuesare also on the increase. "All of our product lines are moneymakers. Being able to sell directly is a key – and in Californiawe can not sell our spirits directly to our California customers.So that’s a problem. Looks as if the Distributors are holdingthat line very tightly – we just heard about a proposed law toallow artisan distillers to be able to sell directly to their cus-tomer but it was not passed. The California Distributors won’tlet it happen," said SK.
Government regulations can be taxing to the corporate bot-tomline. Laws regarding sale, shipment and tasting of liquorare different from that of wine, at least in California. "It’sCalifornia..tons of laws, not conducive to business but we areartists," said Susan. Marketing of multiple lines also has it'sown unique set of problems, but Charbay realizes that smalldistillers have a hard time getting the attention of distributorsso they work with them when the can to keep channels open.
"Charbay is more about a way of life – we work long hard
hours and pour our creativity into our business. We feel therewill always be those looking for exceptional quality and thequest always drives us forward. It’s our life as well as our her-itage. Our son is generation XIII and he’s as natural with fla-vors and distilling as his father. We make ports, aperitifs anddessert wines with the brandy we distill – it’s an art form,always exciting," Susan said.
In the heart of Michigan in the Great Lakes Wine Region,Heart of the Vineyard Winery (ententespirits.com) has beendistilling began in 2001 when they also began the making ofhand-crafted brandies. Beer was added to their mix in 2005. Itwas a matter of economics, according to NicholeBirmingham-Moersch. "We decided to go this route out ofnecessity as we were hosting weddings at our venue at thattime."
Since then they found that the added product lines increasedtheir bottom line. "We won’t be able to continue down thepath otherwise, and by adding these products it has broughtmore attention to our wines as we reach out to new cus-tomers.Overall I would say yes it has helped greatly and whatit does is to allow a group of people with differing tastes tocome to one location and enjoy themselves.The wine is stillour most profitable product.
To produce these diverse products different production meth-ods and equipment are needed, and at first can be costly toexpand to these other areas from an equipment standpoint andtraining of personnel. "You are basically running separate busi-nesses so that does add to costs" she said. And there are pre-cautions they have to take to avoid any cross contamination ofeach product during the manufacturing cycle, so Heart of theVineyard has seperate buildings for producing the varied prod-uct lines to avoid any complications. As for personnel theyhave some carryover but for the most part they are seperate.
Differentiating these various products from a marketing stand-point to the public can be a challenge in the arena of distribu-tion.to obtain valued shelf space, but in this winery's case itdoesn't seem to matter much and the job gets done. "One does-n’t really seem to affect the others, often times we are requiredto have different distributors anyway as certain states don’tallow distributors to carry beer, wine and spirits," she said.
One of the big questions being raised is how the quality ofthe wines are affected with this divrsification. According toNicole, "Our main focus is quality throughout. If we felt thatour quality was being affected then we wouldn’t proceed." Itdoes seem to be a growing trend to some degree but is up tothe individual operation to determine if it is the right course ofaction for them. "I don’t know how deep the trend will be, butit will certainly increase as not everyone likes just one type ofproduct. We’ve run across very few businesses throughout theworld that do all 3 lines.It’s a lot of work and money so itdepends on your business model. All I can say is that it seemsto have worked for us. If you choose to go this route makesure to visit as many places as possible, there is nothing likeseeing it for yourself."
In The Winery • November - December 2013
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Iowa is fast becoming a leader in wine production, and theart of distilling has not escaped many of the wineries in thestate. One in particular, Cedar Ridge Vineyards,(www.crwine.com) founded in 2002 by Jeff and Laurie Quintis a shining example of this new industry diversification. Thewinery is in a picturesque setting on a 27-acre hilltop midwaybetween Cedar Rapids and Iowa City. There was one verystrong factor that motivated the expansion into the art of dis-tilling. "In the process of planning the winery and trying toidentify ways to differentiate ourselves, we came to realizethat, while Iowa is the nation's largest producer of corn, andmost distilled spirits are made from corn, there wasn't a singledistillery selling local spirits in Iowa. Our state was importing100% of the $300 million of distilled spirits we consumeannually. What also became apparent was that, sinceProhibition, the U.S. has been dominated by just a few verylarge distilleries. Meanwhile, in other parts of the world, mostmoderately sized cities like Des Moines or Cedar Rapidsmight have a local distillery. So we began the process of get-ting federal and state approval to open a distillery as well."said Quint. In the year 2005 they sold $16,000 worth of wineand spirits.
Quint has definite opinions on whether this is a growingtrend or not. "I don't think this is necessarily a trend amongwineries, but it is definitely a trend. Small-scale wineries havebeen doing really well (most California wineries aren't muchbigger than the wineries here in the Midwest). Craft breweriesare all the rage. Now, craft distilleries are really heating up.
Aside from the whole "local" movement, I think the consumeris interested in trying new things and finding new favoritesthat aren't all mass-produced. I think you can see the big dis-tilleries reacting to this trend by putting out tons of new prod-ucts, in smaller quantities, to attempt to satisfy this appetite.One other thing I'd point out is that margins aren't as high indistilled spirits as they can be in wine. Where a relativelysmall winery (maybe 12,000 gallons or so) might be able toprovide its owner a full-time living, a small distillery will real-ly struggle financially. First of all, excise taxes are a huge fac-tor. On a bottle of our Cedar Ridge Bourbon Whiskey, forinstance, we have already paid over $11 in excise tax beforewe can put it on the shelf for sale. On a comparable bottle ofwine here in Iowa, it would be less than 25 cents. So, youreally have to get a lot of volume going in order to create suf-ficient margin to cover your overhead. On top of that, winecan be harvested and then sold within 3-12 months. In thewhiskey or brandy business, you have to hold your inventoryfor maybe 2-5 years. Financially, a distillery simply can't beput together on a budget similar to a winery," said Quint.
When you add a product line to your corporate mix, that gen-erally means an increased and healthier bottom line, but alongwith that, there are additional costs added to produce thenewer products but, do the economic pro's outweigh the eco-nomic con's? According to Quint it's a mixed bag. "We areprobably guilty of having way too many products. Not only donew products require significant development time andexpenses, but they also complicate your production and sched-
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uling processes. We just really get off on developing new,interesting products and it's part of the fun of being an inde-pendently-owned micro. For one thing, our winery is commit-ted to producing as many varietals as we feel we can impresspeople with. This means a lot of small bottlings for us. Andwe more often run out of a product because you can't alwayssimply get more of a given varietal. Many wineries developgeneric blends to eliminate this problem. Not us. For another,we want our local fans to keep coming back. In order to dothat, we continue to innovate and bring in fresh new offerings.This is especially true in our kitchen, where we continuouslyupdate our menu, and in our distillery. We literally forecastout 2-3 years on what our new distilled products are going tobe. We have several products we've been making for a coupleyears now that we have never yet released. We like to keep itinteresting!"
Sterilization is a key factor as well and to Cedar Ridge it istheir business mantra. "For instance, when we get done run-ning vodka in the still, we can go straight to whiskey. Butwhen we get done running whiskey, we have to spend a daycleaning and flushing the inside of the still before we could goback to vodka, simply because vodka needs to be such a pure,clean, neutral product. Luckily, we are dealing with alcoholhere and vodka, for instance, does a pretty good job of clean-ing up after itself," he said.
"Government Regulations are a large factor to deal withwhen diversifying. According to Quint, "Wine and spirits are
two different worlds from a regulatory standpoint. The federalreporting requirements for distilled spirits are very intense, tosay the least. We spend several man-days per month simplyreporting on our spirits activity. Taxes run high on spirits, andtracking them and reporting on them is, therefore, much morecomplicated. Also, within our state of Iowa, we can't sell ourown spirits until after we have delivered them to the statewarehouse (two hours from our plant) and then purchasedthem back from the warehouse. And the cash flow is a night-mare because we have to pay the state immediately to get ourproduct back (at a 50% mark-up, plus handling fees), eventhough it may be up to a month later before they pay us forthat same product. Iowa's distilled spirits laws are a relic ofthe ancient past. These laws and related governance are thereason Iowa still imports the vast majority of its beveragespirits even though we make more raw materials here than anyother state," Quint explained.
If your winery bottom line needs a fuel injection, you maywant to consider diversification by adding a distilling opera-tion. If so, learn all you can, do the math carefully, and aboveall have fun. It can pay off in consumer satisfaction, increasedvisibility in the marketplace and will help increase yourprized wines precious bottom lines.
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In The Winery • November - December 2013
ne might expect to see vineyard innovation occurringin California. Maybe even in Oregon or Washington,or the Finger Lakes of New York. But not in Iowa.
After all, until recently, Iowa was tied with Oklahoma for 43rdplace in U.S. wine consumption.
But all that is changing, partially because of Bob Wersen,entrepreneur and owner of Tassel Ridge Winery, located in theheartland of Iowa near Oskaloosa (60 miles southeast of DesMoines). Established a mere seven years ago, Wersen’s opera-tion is already one of the largest vineyards in the state.
As founder and president of Interpower Corporation, an elec-tronics manufacturing firm, Wersen is naturally inclined to thinkbig: not only does he grow11 different types of grapes on his67-acre vineyard, he produces nearly every style of wine knownin the international wine community: red and white wines, dryand sweet wines, sparkling wines, fortified wines, rosés, andeven ice wines and fruit wines. While he sells directly to con-sumers at the winery and through the Tassel Ridge Harvest club,he also self-distributes his wine, which is available at over 400retail outlets in the state. In his “spare” time, Wersen pursues histwo passions — introducing Iowans to the art of food and winepairings, and promoting cold-hardy Vitis riparia-based winegrape cultivars through a national agricultural consortium calledthe Northern Grape Project.
Under Wersen’s guidance, and that of Assistant VineyardManager Adam Nunnikhoven, Tassel Ridge Winery is a verybusy operation, producing 15,000 cases of wine per year.Grapes include nine Northern varieties that can survive Iowa’slong winters and short ripening season: Edelweiss, La Crescent
O
Tassel Ridge Winery Puts Winemaking on the Iowa MapBy Nan McCreary
Bob and Sharman Wersen are the founders andowners of Tassel Ridge Winery in Leighton, Iowa.
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In The Winery • November - December 2013
and St. Pepin, LaCrosse, and Brianna — all whites— andMarquette, St. Croix, Frontenac and Sabrevois, all reds. Inaddition, the Vineyard grows two marginal grapes: Foch, aFrench-American hybrid white grape, and Steuben, a Vitis labr-usca red grape that adds a characteristic flavor to the TasselRidge rosé. To supplement its plantings, and to offer morediversity, the Vineyard also buys juice from Concord andCatawba grapes in upstate New York.
Like all northern wine growers, Wersen’s biggest challenge isthe climate. Typically, the Iowa growing season begins with budbreak in June and ends with harvest in August. Because ofIowa’s high humidity, the crew must apply fungicide to thevineyard every 7 to 10 days, varying the mix so the fungus does-n’t develop immunity to any one formula. Tassel Ridge harvestsits grapes mechanically, but relies on seasonal help to bring allof the grapes in on time.
In spite of the limitations dictated by climate, Wersen remainsundaunted, and is continually “playing with” new grape vari-eties. He once tried to grow Cabernet Franc because it is themost cold-resistant of the Vitis vinifera grape but, he said, theyplanted the grapes in a low area that was exposed to the cold andit froze to the ground every year. Currently, Wersen is experi-menting with an Osceola Muscat, which grows in Nova Scotia.“If we try something that doesn’t grow well, we aren’t senti-mental about it,” he said. “We just root it up and put somethingelse in its place.”
Wersen, who is clearly passionate about his endeavors, devel-oped his love for wine while living in California in the 1970safter graduating from the University of California at Berkeley.When he moved his business to Iowa 20 years ago, he and hiswife, Sharman, saw an opportunity to share their love of wine,and in particular, wine pairings with food. They planted Tassel
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Ridge Winery in 2002, and released their first wines in 2006.“The U.S. average wine consumption was 2.5 gallons per capi-ta,” Wersen remembered. “Iowa’s was 1.6 gallons per capita.Iowans didn’t consume much wine because they haven’t had theexposure.”
That opportunity for exposure is quickly changing. Today,Tassel Ridge Winery has a full-time chef onboard and a com-mercial kitchen, and offers events ranging from wine and burg-er night to formal sit-down, multicourse dinners with wines witheach course. “We work the seasons,” Wersen told the GrapevineMagazine. In the fall, for example, they offer a tailgate-stylepairings. On the 3rd Thursday of November, they celebratetheir first release of the year, Iowa Nouveau (think BeaujolaisNouveau). In December, the staff presents hors de oeuvres andwine pairings appropriate for holiday parties.
But, no matter what time of year it is, there is always some-thing happening at Tassel Ridge. “We like to get people think-ing about incorporating wine into their lives," Wersen said,“whether it’s for aperitifs, special dinners, celebrations, gifts.”Wersen added that the Vineyard is now con-structing a greenhouse — actually a 1,000square foot indoor dining facility— with awood-fired pizza oven in the corner. “For manypeople, pizza for tailgaiting equals beer,”Wersen laughed. “Now they say they’re tiredof beer, so we’re giving them an alternative.”
For the Wersens, wine education does not stopwith wine tastings and cooking demonstrations.Visitors to the vineyards can tour the fully-inte-grated facility, with its crush pad, cold storageunits, multiple tanks with a 45,000-gallon totalcapacity, a filtration system and a bottling linethat can handle 25 bottles per minute. In addi-tion, they can view videos that explain the his-tory of grape growing in Iowa. “Education isclearly our focus. It’s our business model,”Wersen explained. In keeping with that model,the Winery also publishes a weekly electronic newsletter, aswell as a 32-page quarterly magazine, “Simply Extraordinary,”that reaches 100,000 people.
These publications are available at the Vineyard’s website, www.tasselridge.com.
There is no doubt that Wersen, ever the entrepreneur, has leadTassel Ridge to the forefront of Iowa winemaking. His wineshave won over 250 medals in national and international compe-titions. Most recently, their Iowa Prairie Snow — a sweet icedwine made from grapes picked at the picked at the peak of per-fection and frozen after harvest — won a Double Gold at theIowa Wine Commercial Competition judged prior to the start ofthe 2013 Iowa State fair. Their red blend, “Red, White, andBlue,” is an international Gold Medal winner, and is numberone in the state among sales of Iowa-made wines.
As Wersen looks to the future, he told the Grapevine Magazinethat “I want to develop the kind of world-beating wines fromnorthern grapes that people will find so good that they will beata path to our door to consume it. I want to be sure we have agood experience for them when they come, but the key is tohave quality wines from northern wine grape varieties.”
Today, while it is now possible to make good wines in stateswith continental climates, Wersen sees many opportunitiesahead, as well as challenges. “We’re pioneers and we’re dealingwith grape varieties that have not been around long,” he said.“We really don’t know how to get the most out of them in thevineyard and in the winery.”
Wersen is an active proponent of the Northern Grape Project,a national consortium out of Cornell University that was found-ed to help meet the production, processing and marketing chal-lenges of this rapidly expanding industry in more than 12 statesin New England, northern New York, and the Upper Midwest.According to Wersen, Iowa is playing a major role in bringingall of this together. The State alone has over 1200 acres of
grapes and 103 wineries, plus it has the support of the MidwestGrape and Wine Institute at Iowa State University in Ames,which is dedicated to integrating viticulture, winemaking andmarketing of new cold-hardy cultivars and supporting new andgrowing rural wineries.
Tassel Ridge Winery has become a special destination forthose in the heartland who want a unique wine experience.Wines made in Iowa now represent 6.5 per cent of all wine con-sumed in the state, and more and more people are bound to dis-cover the joys of wine and of wine and food pairings. One thingis for sure: under the guidance of Bob Wersen and his crew,experience can only get bigger and better.
Tassel Ridge Winery is open seven days a week: Monday-Friday, 9 a.m. to 6 p.m.; Saturdays from 10 a.m. to 6 p.m.; andSundays 12 p.m. to 6 p.m. For more information on the Wineryand its events, visit www.tasselridge.com.
February 13-15, 2014 is the 38th Annual Texas Wine and GrapeGrowers Association Conference and Trade Show. This must-attendevent will host over 450 Association members, winery leaders, grapegrowers, industry vendors, and consumers at the Embassy SuitesDallas-Frisco Hotel, Conference Center & Spa located at 7600 JohnQ. Hammons Drive in Frisco, TX. Attendees will enjoy three full daysof educational seminars, one-on-one time with suppliers, and net-working…lots of networking.
Educational Seminars will cover a wide variety of important topicson Viticulture, Enology, Marketing, Social Media, and Compliance.The Trade Show floor plan includes a stage area for vendor presenta-tions.
The 4-Diamond Embassy Suites Dallas-Frisco Hotel, ConventionCenter, and Spa, located in the north Dallas suburb of Frisco, is anall-suite hotel connected to the Frisco Conference Center and adja-cent to the Dr. Pepper Ballpark. Only 25 minutes from Dallas-FortWorth International Airport (DFW), 15 miles from Dallas Love Field(DAL) and 10 miles from Addison Executive Airport, the Frisco hoteloffer convenient highway access to numerous restaurants, bars,shopping venues, and sports facilities.
The Frisco Embassy Suites offers spacious two-room suites featur-ing a separate living room with a sofa bed and private bedroom.Enjoy high-speed internet access, two flat-screen TVs, a refrigeratorand microwave. Start your day with a complimentary cooked-to-order breakfast. Enjoy a bagel and coffee from Starbucks. In theevening, gather in the tropical atrium lobby for the complimentaryManager’s Reception.
The hotel is centrally located next to the Stonebriar Centre Mall, The Container Store, and IKEA. The west rooms overlook Dr. PepperBallpark, home of the Frisco RoughRiders.
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In The Winery • November - December 2013
The Grapevine • November - December 2013 877-892-5332Page 30
SCIENTIFIC SUPPORT-How Guidance Helps New,Prospective Vintners By Robert Gluck
any new and prospective vintners do not have thescience background to analyze faults and improvetheir products. However, with guidance from a col-
lege extension enologist, wine quality can and does improve.
Scientists help the wine industry with applied enologyresearch and educational programs aimed at commercial wine-makers and their employees.
Denise Gardner has been doing just that at Penn StateUniversity. A member of the American Society of Enologyand Viticulture and the American Wine Society, Gardnerworked in wineries in France, spent two years working forEnartis Vinquiry in Napa, and holds a master's degree fromVirginia Tech. All told, Gardner has studied grape growingand winemaking for 12 years.
A busy woman, Gardner’s workload includes research as wellas organizing educational seminars and traveling for on-siteevaluations of winemaking operations.
“I’m focused on the industry side and I do it in two differentways. First, I hold large education workshops and seminarsthat teach people things about wine quality they can take backand immediately utilize in their wineries. Second, I do onsiteevaluations including regional visits," Gardner told TheGrapevine.
By doing regional visits, Gardner reaches more people, sees
more operations, and gets more industry people together tovisit the operations of other vintners, all the while enhancingdiscussions around winemaking problems. Because of herwork, the industry reaps benefits in the form of recommendedimprovements. Simply, Gardner’s support keeps winemakersapprised of the latest science regarding wine production meth-ods, winery economics, and business practices.
Recently, Gardner traveled to Galer Estate Winery in south-east Pennsylvania near Philadelphia and focused on red winequality. She also traveled to wineries in the northeast and didreviews of production facilities and wine tasting.
“If they have a problem wine, they ask me to taste it withthem, and talk it through, and let them know what they shoulddo,” Gardner said. “In this region of the world our biggestproblem is oxidation. There are also a fair number of volatileacidity problems out there. These two problems are related tosulfur dioxide (SO2) and oxygen management. “
Gardner finds the best way possible to remediate a problem. “My main goal is to give them more confidence and educa-
tion for when things go wrong. I make the winemaker awareof their most common problem. If that awareness happens,they have the ability to fix the situation and improve theirwine quality, which is the overall goal. They want to have abetter product to sell to consumers, represent their brand andrepresent the state. We see this happening.”
Some winemakers are very daunted by the challenges, butthere is always something they can do to improve their wines.
According to Gardner, more frequently than not, oxidation, inaddition to oxygen exposure, is caused by poor sulfur dioxidemanagement. “Because winemakers don’t like to use a lot ofSO2 there’s a lot of negative connotation around it,” she noted.“I was at a winery once and they were trying to monitor itwith an analytical method. However, their analytical methodwas not very accurate. Therefore, they were having some ofthese problems associated with not enough SO2 in the wine.We made some updates to their wine labs. I sent them a proto-col on how to measure SO2 and why it is important. Theyupdated their wine labs and started measuring all their wines.A year later, I heard back from the winemaker. He said it wasthe best investment they ever made.”
Gardner works closely with the Pennsylvania Winery
M
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The Grapevine • November - December 2013 877-892-5332Page 32
In The Winery • November - December 2013
Association (PWA). PWA is a non-profit trade association thatacts as advocates for the wine industry in Pennsylvania.
According to Jennifer Eckinger, executive director of PWA,the association contributes funds to programs that help itsmembers gain further understanding and assistance.
“Denise’s workshops help the wineries identify issues theycan mitigate to improve their systems and also identify qualitystandards,” Eckinger said. “We have 117 wineries in our asso-ciation. When someone tells us they want to open a winery,we always connect them to Denise so they have a grounding, apoint of reference and a group to be able to ask questions, aswell as to sign up for the programs and seminars so they canget involved and network within the industry.”
Eckinger said Pennsylvania's moderate climate and rollingterrain provides some of the best growing conditions on theEast Coast. Here, more than 100 wineries produce a delightfularray of wine varietals including Cabernet Sauvignon,Catawba, Cayuga, Chambourcin, Chardonnay,Gewurztraminer, Pinot Gris, Pinot Noir, Reisling, SeyvalBlanc, Vidal Blanc and Vignoles.
“We have different growing conditions that help to make ourwines unique,” she added. “We promote Pennsylvania wines asunique and our wineries are unique. It’s a non-intimidatingplace to learn about wines.”
Penn State is involved in research, Gardner said, includingwork on pest and canopy management and soil studies. “On the viticulture side we are working on frost protection,different treatments to minimize botrytis, including differentleaf removal techniques to remove leaves from the canopy andthe use giberillic acid. We are looking at different biometrictools to manage grape berry moths. We also have a graduatestudent working with Dr. Ryan Elias on ways to inhibit wineoxidation. Another big project I’m a part of is the USDA NE1020 Wine Grape Variety Trials,” Gardner said.
Gardner held a well-attended seminar in July on how to man-age SO2 in the winery. Coming up in January in State Collegeis a two day training and education workshop on how to iden-tify wine defects. “We are advancing,” Gardner concluded.“Winemaking is a continuing education process. I truly believethat. There is never a moment where you stop learning. Nowwe have so many tools to get information out to winemakersthat they are able to get the information more quickly andapply it to their operations. “
Vintners can learn more about such topics as “Starting aWinery”, “Producing a Wine with Sub-Optimal Fruit”, and “AReview of Filtration for Wineries” by clicking this link:http://extension.psu.edu/food/enology/wine-production
To contact Denise Gardner and other educators at Penn Stateclick here: http://extension.psu.edu//food/enology/directory
The Grapevine • November - December 2013 877-892-5332 Page 33
s the economy gradually improves and business expan-sion is once again on the table, winery owners areincreasingly employing a tax deferral strategy that's
long been in use by business operators in other industries.
This proven approach allows wineries of all sizes to reducetheir current tax liability, which results in improved cash flow.The strategy, known as cost segregation, reduces current incometax liability by shifting costs from long lived assets to assetswith shorter lives, thereby increasing depreciation and reducingtaxable income. A cost segregation study identifies and sepa-rates a winery’s real and personal property assets—also referredto as buildings and equipment—into proper asset classifications.Not only does the process result in shorter lives, but deprecia-tion gets an extra boost due to the accelerated depreciationmethods available for short-lived assets. The result can be sig-nificant cash-flow benefits for wineries constructing new facili-ties, like fermentation halls and/or tasting rooms, as well as fortaxpayers acquiring their first winery or new facility.
Who Should Consider Cost Segregation? It’s clear that many businesses fail to capitalize on these
opportunities and are required to pay federal and state incometaxes earlier than needed. Cost segregation can considerablyshorten the tax lives of assets related to a winery expansion; inmany cases, the standard 39-year depreciation period can beshortened to five-, seven-, or 15-year periods.
The most likely owners to benefit from a cost segregationstudy are taxpayers with buildings or real estate valued at over$1 million or taxpayers that have completed building or landimprovements (for the purpose of adding to or expanding theiroperations) costing over $300,000. They should be planning tohold their property for more than five years and be able to uti-lize accelerated depreciation. For many winery owners,depending on their tax situations, this accelerated depreciationcan be used to reduce taxable income from other sources.The benefits of a cost segregation study can be seen in theexample of a boutique winery.
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In The Winery • November - December 2013
Reducing Current TaxLiabilities By Jeffrey L. Shilling, CCSP, Tax Director – Moss Adams LLP
The Grapevine • November - December 2013 877-892-5332Page 34
In The Winery • November - December 2013
This winery recently constructed a $5 million winery and tast-ing room. Original estimates pegged the first five years’ depre-ciation deductions at $582,000. By commissioning a cost seg-regation study from professionals with significant experience inthe wine industry, the deductions were more than tripled. Byre-categorizing portions of the winery’s construction costs intoshorter depreciable lives, the study helped increase the winery'scurrent and next four years’ deductions by $1,355,000; poten-tially deferring federal income tax of $562,000.
Cost segregation studies can also assist wineries in determin-ing classifications for initial property tax filings, further reduc-ing a winery’s tax burden through properly allocating betweenreal and personal property.
Bring Home the MoneyFrom boutique wineries like the one mentioned above to large
international operations, cost segregation is helping owners dis-cover that accelerated depreciation deductions on new construc-tion—fermentation halls, crush pads, barrel storage, tastingrooms, and even whole new wineries—can help infuse neededcash into the business.
A Few Things to Consider:• A cost segregation study may be conducted for new con-
struction, remodels, expansions, or even leaseholdimprovements funded by a tenant or landlord.
• A study can be performed for any of the above withoutamending current tax returns—even if the projectoccurred years ago.
• Similar features at different wineries may be eligible fordifferent depreciation treatments depending on its use.For example, a wine cave may serve as a productionwarehouse at one winery and a tasting room at another.
When fully understood, and applied, cost segregation studieshelp wineries reinvest current tax savings into their business orpay down debt by pushing tax liabilities out to the future whenan expansion project is more likely providing increased revenue.
Wineries are capital intensive and require significant invest-ments to grow and improve their competitive position. Foryears only the largest players in the industry were familiar withtax deferral options available for improvements and expansions.Today, more and more wineries understand how to apply therules, new and old, to improve their bottom lines.
Jeffrey L. Shilling’s 20-plus years of experience includes hun-dreds of cost segregation, allocation of purchase price, anddeprecation studies across a wide variety of industries (winer-ies are just his favorite).
The Grapevine • November - December 2013 877-892-5332 Page 35
ddressing the serious wastewater treatment issues inthe food and beverage industry, Cambrian InnovationInc., a leader in bioelectric environmental solutions for
industrial, agricultural, and government organizations,announced the commercial availability of EcoVolt™. The firstand only industrial-scale bioelectrically enhanced system evercreated, EcoVolt empowers food and beverage companies,including wineries, breweries, and dairy operations, to cutoperating costs and monetize their process and wastewaterstreams while significantly increasing plant sustainability.
Traditional wastewater treatment processes are energy-inten-sive and susceptible to disruptions. EcoVolt leverages electri-cally active microbes to stabilize the wastewater treatmentprocess while generating clean energy. This energy can save
money, decrease grid reliance, and form a core part of a sus-tainable water management and re-use plan. “EcoVolt has thepotential to revolutionize how wineries and breweries managewater,” said Matthew Silver, CEO of Cambrian Innovation.“Today, most companies looking to expand production mustquickly think through access to water and treatment of waste-water, and current solutions leave much wanting. TheCambrian EcoVolt system is designed to turn water manage-ment from a hassle into an opportunity. We expect many cus-tomers will be able to significantly cut electricity usage andeven go ‘off grid’ when using EcoVolt to treat wastewater andgenerate power.”
Developed with assistance from the National ScienceFoundation, EcoVolt’s bioelectric innovation uses electrogenicorganisms to generate clean energy from wastewater. Theserecently-discovered electricity-generating organisms convertwastewater pollutants into electricity. This electricity is funneledto a circuit, and back into an electrode, where a different set ofmicro-organisms convert electricity and carbon dioxide into
A
In The Winery • November - December 2013
Most Advanced Sustainable Wastewater Treatment Systemfor Food & Beverage Industry Now Commercially Available
Cambrian Innovation launches EcoVolt, thefirst and only industrial-scale bioelectrically
enhanced wastewater treatment system for sustainable water management
The Grapevine • November - December 2013 877-892-5332Page 36
In The Winery • November - December 2013
methane fuel – forming a complete treatment process. Themethane can be used on-site for clean power and heat production.
EcoVolt is a robust, end-to-end, anaerobic wastewater treat-ment solution that can operate across a range of biologicaloxygen demand (BOD) loadings and wastewater volumes. Itsmodular design and bioelectric capability allow for rapid com-missioning and continuous, remote monitoring and control.These attributes minimize installation and operation hassles.Because EcoVolt is prefabricated and provides for turnkeyinstallation, the system can easily accommodate facility expan-sion, as well as new system installations.
Historically, anaerobic wastewater treatment systems havenot responded well to changing BOD loadings and wastewaterflows. Accordingly, many food and beverage companies pre-treat wastewater using costly, on-site aeration. EcoVolt’s bio-electric capabilities enable it to accommodate fluctuationscommon in beer, wine, and other food and beverage produc-tion cycles.
“Industrial food and beverage producers typically use largeamounts of electrical energy to treat their wastewater.Ironically, the wastewater itself contains energy,” continuedSilver. “EcoVolt uses naturally occurring organisms withunique properties to extract this energy, which can offset over-all operation costs. We view this as the future of water man-agement, globally.”
Compared to using traditional aeration technologies, a wineryor brewery can save from $100,000 to more than $1 million ayear using EcoVolt, which eliminates aeration energy require-ments and sludge hauling, minimizes sewer fees, and generatesclean heat and power. An average EcoVolt system can also cuta facility’s carbon footprint substantially, facilitating its certifi-cation as a green producer.
EcoVolt’s Demonstrated SuccessWell-known for its focus on sustainability, Clos du Bois
Winery, located in California’s Wine Country, field testedCambrian’s new wastewater treatment system at an industrialscale. For the last 15 months, EcoVolt treated up to 10 percentof Clos du Bois’ total wastewater flow. The EcoVolt systemtreated 80 to 90 percent of the wastewater’s BOD while simul-taneously generating high-quality methane fuel. The wineryexperienced a reduction in aeration pump electricity costs anda surplus of reusable energy.
EcoVolt is available immediately and is competitively pricedaccording to a site’s specific wastewater needs. More informa-tion on commissioning an EcoVolt wastewater treatment sys-tem may be found at www.cambrianinnovation.com/solu-tions/ecovolt. To contact Cambrian regarding EcoVolt, pleaseemail: [email protected]
hirty years after its first vintage of Old World-style sparkling wine, Laetitia Vineyard &Winery is popping open a bottle of bubbly andcelebrating with friends.
Sparkling Winemaker Dave Hickey has been on the teamalmost since the beginning, albeit in roles as varied as cleanupcrewman and cellar hand. And his son, Eric Hickey, who start-ed out observing winery operations as a kid on the fringe, isnow President and Head Winemaker of the venerated brand.
“When I started here, the winery was empty,” said DaveHickey. “The tasting room was built but had never been used.”
The inception of Laetitia Vineyard & Winery is woven intothe history of Central Coast winemaking, though sparklingwine was something of an anomaly for the area at the time. In
the early 1980s, French viticulturists came to California toseek out a New World outpost for growing vines and produc-ing wines similar to those of their homeland in Champagne’sEpernay region. Their search ended just south of ArroyoGrande, nestled among the foothills that stretch parallel toHighway 101. The property soon boasted several acres ofChardonnay, Pinot Noir and Pinot Blanc, as well as a produc-tion facility equipped with two traditional French Coquardpresses – still, the only two in North America.
As Maison Deutz Winery (the original name for what is nowLaetitia) a culture of respect for Old World methods was estab-lished with the Coquard presses and méthode champenoise, atraditional, labor-intensive and time-consuming approach tomaking sparkling wine. And even after the property changedhands and the name became Laetitia Vineyard & Winery sev-eral years later, that culture remains.
The Grapevine • November - December 2013 877-892-5332 Page 37
In The Winery • November - December 2013
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“When it comes to sparkling wines, the only differencebetween Old World wine and Laetitia sparkling wine is the useof New World grapes,” said Dave Hickey. “I was trained byFrench winemakers who were, themselves, trained inChampagne. They wanted it done exactly the same way here asit was there. And to this day, one of the highest complimentsanyone can pay me is to say that my wine reminds them ofChampagne.”
Today, Laetitia’s estate vineyards have expanded to includeover 600 acres and more than a dozen varieties, in addition tothe 1,100-acre Santa Barbara Highlands Vineyard in easternSanta Barbara County which sources all fruit for the brand’ssought-after NADIA label. Between Laetitia and NADIA, near-ly 1,000 tons of grapes were harvested in 2012 and 160,000gallons of wine produced.
Both properties are sustainably farmed under the purview ofVice President Vineyard Operations, Lino Bozzano. “With alarge addition of new Pinot acres just before I started here eightyears ago, there was a lot of unknown,” said Bozzano. “Today,these vineyards show several different expressions of PinotNoir. Being here to watch these terroirs develop has given me agreat personal connection with the property.”
But no matter how the Laetitia Vineyard & Winery domaingrows, its backbone will always be pure, complex and utterlyfestive sparkling wine. To celebrate the brand’s 30th year,Laetitia will offer a limited edition etched magnum series forpurchase. Additionally, the winery will host an intimate andformal Dual Winemaker Dinner on Saturday, September 14 at 5PM. Winemakers Dave Hickey and Eric Hickey will pour theircoveted library wines from over the course of their time withthe winery, accompanied by dishes from the culinary genius ofChef José Dahan of Et Voilá Restaurant. Tickets are $145 perperson, $125 for Laetitia Wine Club members. For more infor-mation on the 30th anniversary etched magnum or to make areservation for the dinner, please call 805.474.7641.
About Laetitia Vineyard & WinerySince 1982, the Laetitia Vineyard & Winery has produced ele-
gant wines that champion the exceptional character and diversi-ty of the Arroyo Grande Valley AVA. Originally founded by anestablished French Champagne house, the Laetitia estate carrieson in the longstanding traditions of Burgundy and Champagnewith a focus on small-lot Pinot Noir and sparkling wines.Valuing legacy, balance, innovation, and sustainable practicesfrom harvest to glass, the Laetitia team works meticulouslyfrom vintage to vintage to ensure that every bottle of Laetitiawine is as expressive as the land from which it originates.
For more information about Laetitia Vineyard & Wineryplease call 805-481-1772 or 1-888-809-VINE
The Grapevine • November - December 2013 877-892-5332 Page 39
Around The Vineyard • November - December 2013
Vineyard Equipment inToday’s Changing World
by Nan McCreary
s wine begins its journey from the grape to the glass,an important consideration is the equipment necessaryto produce and harvest a profitable yield. And in
today’s competitive marketplace, vineyard equipment is con-stantly evolving to meet the needs of vineyards striving toimprove productivity, efficiency and quality.
In talking with vineyard experts and equipment dealers andmanufacturers throughout the country, the GrapevineMagazine identified significant technologies that are changingthe face of today’s vineyards: specialized and multi-functiontractors, optical grape sorters, mechanized implements such asdeleafers and pruners, and more efficient and environmentally-friendly sprayers.
Tractors have, and always will be, the mainstay of the vine-yard. In today’s vineyards, narrow rows are becoming thenorm, from 12 feet in the 1980’s to 6 feet or less today, and
tractor manufacturers have responded accordingly. One com-pany, Branson Tractors, headquartered in Rome, Georgia,met this demand with technology to convert a standard agri-cultural tractor to a narrow-width vineyard tractor. “Basically,we took a standard tractor and designed a kit to narrow thewheel base so the tractor could operate a vineyard, ” said JimSteele, vice president of Branson. The technology is applica-ble to any one of our 20 series tractors with 31 to 55 horse-power.
Oregon Vineyard Supply (OVS), a one-stop shop for hun-dreds of Willamette Valley vineyards located in McMinnville,OR, offers its customers an 85-horsepower Kubota tractor that,at four-feet wide, is specifically designed to fit in tight spaces.“Many vineyards in this area plant with six-foot rows, so thereis a big demand for these tractors,” said OVS’ Brian Crawford.“While purchasing a specialty tractor is an added expense tothe vineyard,” he added “it can be cost-effective, because
A
Pellenc’s Selectiv’ Process On Board technology is generating more and more interest among winery opera-tors and owners. The Selectiv’ Process system, an option on Pellenc multifunction and tow-behind grapeharvesters, comprises a high-frequency, in-line destemmer and an onboard sorting table which successfullyremoves petioles and other matter from the harvest.
Around The Vineyard • November - December 2013
The Grapevine • November - December 2013 877-892-5332Page 40
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yields can be increased to economically viable levels.”According to Crawford, most of the vineyards in theWillamette Valley hand-pick their grapes, so the specialty trac-tor is an economical alternative to the pricier over-the-rowtractor/harvesters. “But,” he added, “as labor becomes harderto find and more expensive, we may see more mechanical har-vesting, so all that could change.”
The gold standard in tractors is the multi-function over-the-row tractor that can harvest, spray, prune and mow. This pieceof equipment offers vineyards the advantage of using onepiece of equipment year-round by simply changing out thetools, depending on the application. Over-the-row tractorsalso allow vineyards to farm more efficiently and cost-effec-tively because they can cover multiple rows per pass.
Pellenc, the world-leading manufacturer of mechanizedequipment for the vineyards and orchards, has taken the multi-function tractor to a whole new level with a Pellenc Selectiv’Process Onboard destemmer/berry sorter. The equipment canoperate in minimum row spacing of five feet, and remove 90percent of the waste from the grape. “When we introduced thisproduct in 2008, it became so popular that we developed astand-alone unit for the wineries who hand-pick their grapes,”said Lance Vandehoef of Pellenc America, Inc. “This innova-tion increases quality and provides a whole new segment ofcost savings for both parties.”
Pellenc has recently added Pellenc Vision — a mobile optical
sorter — to its line of Selectiv Process technology. PellencVision, which sorts berries by color and shape, can be used inthe vineyard or at the winery. . “You just get single berries,”said Vandehoef. According to Vanderhoef, wine trials havedemonstrated that grapes harvested and sorted with Pellenc’sSelectiv Processes produce wines that are far better than winespicked and sorted by traditional methods. “Selectiv Process istaking wine industry by storm,” Vandehoef told The GrapevineMagazine. “The technology is sound, simple, and reliable. It’sbeen a huge hit.”
Vineyard mechanization, on some level, is becoming morecommonplace in vineyards as growers continue to face higherlabor costs and increased labor shortages. Mechanicaldeleafers, for example, are gaining momentum for removingleaves around the fruit zone to improve ventilation in the vine-yard. Deleafers can be mounted on tractors or on harvesters.Mechanical pruners, too, are growing in popularity. These mayeither be pulled behind or mounted on a tractor. “OxboMechanical pruners have been around for about eight years,”said Chris Peterson of Midwest Grower Supply in Stanberry,MO. “They continue to improve, but it’s still a fairly new tech-nology.”
Peterson is a representative of equipment manufactured byOxbo, a leader in vineyard mechanization equipment. Oxbo,as well as other companies, offers a full range of mechanicalproducts that can be fully customized to meet current andfuture levels of mechanization, including harvesters, pruners,
Around The Vineyard • November - December 2013
The Grapevine • November - December 2013 877-892-5332 Page 41
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VSP (vertical shoot positioning) and rotary shoot thinners, cor-don brushes and fruit thinners. Oxbo also manufacturers theOxbo 4420, a multi-function power unit for year-round vine-yard.
Another area of innovation that has been a boon to farmers isthe advancement of sprayer technology. Spraying for fungi-cides has always been a challenge for growers, as they striveto improve application efficiency without the waste and theenvironmental impact associated with drift. One company,Progressive Ag Inc. of Modesto, CA, has addressed this withthe LectroBlast®, a low-volume electrostatic sprayer thatincreases under-leaf coverage and reduces drift. Here’s how itworks: High velocity air, moving at speeds over 200 mph,passes by unique air-shear nozzles where chemical-laden liq-uid is pulled into the air stream. Small, fine droplets, approxi-mately 50 micron in size, are created and take on a charge asthey pass by patented electrostatic electrodes. As the chargedcloud comes near the plant, it has a magnet-like effect. Theresult is more chemical laden droplets deposited on the plantsurface, especially in the under-leaf and hard to reach areas.The LectroBlast® also has high-volume capabilities: the equip-ment can do up to 500 gallons per acre, if necessary. Also,LectroBlast® Electrostatic Sprayers are concentrate sprayersthat can spray with less than 40 gallons of water per acre.
Another company, On-Target Spray Systems, utilizes thesame technology to make sprayers that are environmentallysound, socially equitable and economically viable. The effec-
tiveness of the spray technology also means decreased applica-tions and decreased fuel use. By reducing materials, water andlabor costs, On Target Spray Systems helps companys “savegreen while staying green.”
Electrostatic technology is not new, but it is improving sig-nificantly. Mark Rykman of Progressive Ag said the companynow has a wraparound model that can spray two or three rows
at a time.The LectroBlast® model sprays out from the centerand in from the outside to hit the fruit zone, plus it has a thethird head that sprays down from the top. This makes thespraying more uniform, and keeps the material confined to thegrapevine.
As more and more vineyards opt for electrostatic sprayers,the technology continues to develop. Rykman told The
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The Grapevine • November - December 2013 877-892-5332Page 42
Around The Vineyard • November - December 2013
Grapevine Magazine that companies are working with growersto develop a GPS mapping system to plot areas in the vineyardthat may be weak or exposed to disease. An onboard computerwould identify these areas, so the operator can control theamount of material that’s applied. “This system is being usedfor corn and soy beans, and we’ll be seeing in the vineyardsoon,” said Rykman.
Oregon Vineyard Supply (OVS) offers its customers anotheradvanced alternative to spraying: the low-volume GearmoreVenturi Air Sprayer. Traditionally, sprayers used a systemcalled “high Volume” or “dilute” spraying, where liquid isforced under high pressure through a small diameter nozzle toatomize the spray. The Venturi Air Sprayer uses a Venturi tubeto atomize the spray liquid, which reduces the liquid to diame-ters of approximately 50 microns, i.e. fog size. Unlike “high-volume” sprayers, the particles do not run together or drip offthe plants. Less water is used because the air is carrying thespray particles to cover the plant with the homogeneous fog-like spray. OVS’ Brian Crawford said, “This sprayer is new inthe last few years. It can cover two full rows with one pass andis extremely efficient.”
Yet another area of development in the vineyard is the use offlame technology rather than chemicals to control weeds. Inthis application, propane is heated to 2000 degrees, which caus-es the cell structure of the plant to collapse. The technology hasbeen around since 1938, but is improving, and gaining in popu-larity among environmentally-conscious vineyards because ittotally eliminates particulates in the air. According to SteveKoch of Flame Engineering in La Crosse, KS., some studieshave shown that drift from herbicides can travel as far as 11miles. Flame Engineering produces hand-held torches, includ-ing as well trailer-type machines that can be pulled by a tractoror an ATV.
When it comes to farming, technology is the way of thefuture. The vineyards in the next decade will look very differentfrom the ones today. Experts tell The Grapevine Magazine thatwe can expect to see improvements in mechanization, as wellas more computer-based applications. Already some vineyardoperators are using wireless sensors to control irrigation, andothers are experimenting with digital monitoring of grape vigor.Stay tuned: more changes are on the way
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The Grapevine • November - December 2013 877-892-5332 Page 43
Around The Vineyard • November - December 2013
California Certification Program:
Update on Grapevine Red Blotch Virus &Laboratory Disease Testing By Judit Monis, Ph.D.
n order to obtain healthy vineyards, pathogen-free materi-al should be planted. Countries around the world andmany states within the United States have developed cer-
tification programs that establish a foundation of disease-testedgrapevines for distribution to nurseries and growers.
Most certification programs are voluntary and open to partic-ipants who fulfill and follow all required rules. Nurseries fur-ther propagate the material from the certification program tocreate increase blocks and to produce grafted vines and root-stock to distribute to growers. Although there is informationon the detrimental effect of fungal pathogens as they relate tonursery propagation, most certification programs limit theirdisease testing efforts to viruses. Due to its importance, this
issue was one of the topics of the International Workshop forGrapevine Trunk Diseases held in Valencia, Spain in June2012. This author plans to attend the next meeting to be inAustralia in November 2014 and update our readers with newinformation.
To keep certification programs current, the foundation motherplants and vines from nursery increase blocks need to be re-tested routinely as new detection methods are developed. TheCalifornia Department of Food and Agriculture (CDFA)Registration and Certification (R&C) Program was revised in2010. The new rules are associated with plant material thathas been subjected to rigorous testing using the Protocol 2010The regulations require the traceability of the propagation
I
The Grapevine • November - December 2013 877-892-5332Page 44
Around The Vineyard • November - December 2013
material to the original foundation blocks. For the first time inthe history of certification, vines will be certified to be free ofdisease but also free of known disease causing viruses. Forthis purpose, field and laboratory tests will be applied to thevines in the program to certify that (at least the mother vines)are free of a list of pathogens. Additionally, the planting loca-tion must be approved by CDFA prior to planting, require spe-
cific distance of increase blocksfrom non-registered vineyards.Finally, the planting site cannotinclude land on which non-regis-tered grapevines have been grown inthe past 10 years.
A comprehensive list of pathogens(mostly viruses) will be prescribedfor Protocol 2010 mother and prop-agative plant material. The rulesallow flexibility and the list can beupdated as new viruses are discov-ered. For example, the Grapevinered blotch associated virus (GRBaV)was recently added. Vines found tobe infected with a pathogen in thelist will be disqualified from the pro-gram. To help increase the amountof certified planting material avail-able, the 2010 regulations will allowfor secondary increase blocks- a
block managed under the same conditions required by theCDFA R&C Program planted in a commercial vineyard. Thepropagative material used for the establishment of secondaryincrease blocks could originate from foundation or primaryincrease block cuttings and must be registered with CDFA.The same planting site requirements must be met for the estab-lishment of a primary or secondary increase blocks.
The Grapevine • November - December 2013877-892-5332 Page 45
Around The Vineyard • November - December 2013
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A program funded by the UnitedStates Department of Agriculture, TheNational Clean Plant Network (NCPN),made the testing and production ofgrapevine and other fruit crop cleanstock possible. The most importantproduct was the planting of the RussellRanch foundation block at University ofCalifornia Davis Foundation PlantServices (FPS) using the guidelines ofthe new regulations. It is expected thatnurseries will be able to supply virus-tested progeny material to growers in2015.
Under the 2010 regulations, plantingsfrom the old R&C program (derivedfrom the Classic or older motherblocks) will not be phased out.Consequently it will be prudent toobtain history information about age,disease testing, origin of material (pri-mary, secondary, or outdated regulationincrease blocks) to ascertain the poten-tial quality and disease status ofgrapevine planting material, It would beexpected that healthier plantings willderive from new the foundation andincrease blocks derived from the newerfoundation block. Similarly, since theplantings generated from foundationstock covered by the Protocol 2010 willbe subjected to more sophisticated tests,plantings from the younger generationblocks will have the lowest probabilityof infection. Because viruses and other
pathogens can spread from adjacentvineyards, it is important to work with aplant pathologist to inspect the increaseblocks and adjacent vineyards for insectvectors and/or suspicious symptoms andcollect samples for testing at a laborato-ry.
The UC Davis Foundation PlantServices has done a tremendous jobtesting both the Classic and RussellRanch foundation blocks for the pres-ence of Grapevine red blotch associatedvirus. The testing determined that theRussell Ranch block is free of the virus,while the researchers found eight clonesin the Classic foundation to be infected.
To assure the highest quality, plantingmaterial from certified sources, shouldalways be tested (i.e., do not assumethat certified planting material is dis-ease free). Healthier vineyards will bethe result of only planting vines fromreputable certification programs com-plemented by nursery internal qualityassurance programs that include routinedisease testing programs.
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The Grapevine • November - December 2013 877-892-5332Page 46
Around The Vineyard • November - December 2013
EWANEE — Larry "The Flag Man" Eckhardt's lifejust got a little easier thanks to a product engineeredand manufactured in Kewanee.
Rhino Tool Company, 620 Andrews Ave., noticed the tire-less volunteer who has lined streets with American flags athomecomings and funerals for American soldiers since 2006.Larry was using a homemade slide hammer to drive a three-quarter-inch steel rod manually to install flag posts.
Eckhardt, of Little York, IL, started his mission to make sureno soldier is forgotten with 150 flags. He can now provide upto 3,000 flags to line streets from the airport to the church, orthe church to the cemetery, or both.
Bob Tellier, marketing manager, explained the GPD-30 is apowerful, lightweight post driver that operates on regular gas.It's the perfect tool for t-posts, ground rod, form pins, grapestakes, and fence posts up to 1-7/8-inches in diameter. "Itshould help make flag installation much quicker and easier atthe events Larry serves," said Tellier. Installing the flags takes
K
Rhino Tool Company Donates Gas-Powered Post Driver to “Flag Man”
Friday, September 20th, Rhino Tool presentedEckhardt with a GPD-30 gas-powered post driver.
The Grapevine • November - December 2013 877-892-5332 Page 47
Around The Vineyard • November - December 2013
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On Target sprayers use an electrical charge tocreate a fine mist of uniform, electrostatic droplets,which are attracted to the surfaces of the crop likea magnet.
The result? Complete and uniform coverage, highlypotent drops and up to 85% less water usage.
time and Eckhardt relies local veterans groups, Boy Scouts,and ordinary volunteers to pound a hole into the ground tomake a hole for the aluminum tube in which each flag ismounted.
"Rhino Tool Company is proud that our product will be usedto install displays to honor military and public servants,"Tellier said.
Established in 1975, Rhino Tool Company is a manufacturerof top quality post drivers and post pullers." Our product lineincludes several models of air operated post drivers, gas pow-ered post drivers, manual and hydraulic post pullers," Telliersaid.
Rhino’s post driver product line consists of eight air operatedmodels covering the application range from medium-duty toheavy-duty, and two gas powered light-to medium-duty mod-els. Rhino’s Post Puller product line consists of three modelsof manual post pullers and one hydraulic.
Rhino serves many industries which include fence installa-tion, sign installation, agriculture, vineyards, marine construc-tion, construction, landscape construction, and more.Located in Kewanee, IL, Rhino Tool Company is served by asales network of distributors and dealers across the UnitedStates, Canada, and around the world.
This is not the first time Kewanee citizens have providedsupport for Eckhardt's efforts. In 2009, he was surprised with a12-foot, enclosed trailer donated by the community at thehomecoming for Kewanee National Guardsmen fromAfghanistan. At that point, Eckhardt was up to about 530 flagpoles which he carried in the back of his pickup. Since then,Fairfiled, Illinois community has presented him with a van.
For Eckhardt, a humble man who seldom attends the funeralswhere he installs the flags, placed 1,000 flags along the routePresident Obama took when entering Atkinson, Ill., for aspeech on the economy at Wyffels Hybrids in 2011. Obamasent Eckhardt an autographed photo and a thank you for whathe does for American soldiers, veterans and their families. ButLarry states, “While planting flags for the President was trulya great honor, the highest honor we feel is when we areallowed to pay tribute to one our country’s heroes.”
The Grapevine Magazine salutes all of our Veterans
for their service, and Rhino ToolCompany for their Generosity.
God Bless & Thank You!
The Grapevine • November - December 2013 877-892-5332Page 48
Around The Vineyard • November - December 2013
FARM FOR SALE BY TENDERThe owner of Part of Lot 8, Concession 4, West Communication Road
Geographic Township of Harwich, designated as Part 1, 24R3940 andPart 1 24R3278, subject to an easement in gross until July 26, 2051 as inCK63666, Chatham-Kent, municipally known as 19277 Gore Road,Blenheim, Ontario, containing 63 acres more or less.
The property has beans and grapes planted at present, to be harvestedin the fall. The property is suitable for cash crop farming and grape pro-duction for the wine industry. There is an easement to Erieau Wind Inc.respecting a wind turbine which is producing power and revenue. Thiseasement goes with title and revenue generated will be assigned to theultimate buyer.
The land is tiled and a tile map is available. Inspection of the propertycan be arranged with the seller if requested.
Grape production equipment and storage tanks are not included in thesale of land and will be sold separately to the buyer of the land or anyother interested buyer.
The vendor is to be afforded a two month period after closing to storeand remove equipment at a rent of $1.00 per month.
The transaction will close on February 21, 2014.
All tenders must be in writing in a sealed envelope accompanied by acertified cheque in the amount of Five Thousand Dollars ($5,000.00)payable to “Mark Michael MacKew Professional Corporation in trust”.Price offered must be for cash and not subject to financing.
Highest or any tender will not necessarily be accepted.
Tenders will close at 4:00 p.m. December 20, 2013 and must be deliv-ered to the undersigned law firm prior to the closing time and date. Allbidders are required to present their bids on the form provided by theseller’s solicitor, available at the address below.
Unsuccessful tenders will be notified in writing and their deposit will bereturned to them by mail.
Mark Michael MacKew Professional Corporation, Barristers andSolicitors, 4 Talbot Street West, P.O. Box 760, Blenheim, Ontario N0P
1A0, telephone (519) 676-3266.
For more information please go to www.farmforsalechathamkent.com
The Grapevine • November - December 2013 877-892-5332 Page 49
Around The Vineyard • November - December 2013
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The Grapevine • November - December 2013 877-892-5332Page 50
International News • November - December 2013
rohibition’ conjures up images of bootlegging opera-tions run by gangsters under the cover of night. Buthow things have changed…or have they? Until just
last year, it was illegal for anyone in Canada to carry a bottleof wine across provincial boundaries. If travelers from anoth-er region were to visit a vineyard in British Columbia (BC),Ontario or Nova Scotia, it was illegal for them to bring a bot-tle back with them or even request the winery to ship bottles totheir home province. Without the existence of border patrolsbetween provinces the law was impossible to enforce, at leastfor personal purchases, but still loomed heavy on wine produc-ers. In June 2012, the Canadian House of Commons unani-mously voted in favor of Bill C-311, a private member’s billpresented to the house by Dan Albas, Member of Parliamentfor the region of the Okanagan-Coquihalla, a vineyard rich
part of the country. The intent of C-311 was to amend the1928 Importation of Intoxicating Liquors Act, free the grapesand correct the ridiculousness of the post-Prohibition laws sur-rounding the sale of wine in Canada by removing the federalrestrictions prohibiting individuals from moving wine for per-sonal use across provincial borders.
Over a year has gone by since C-311 has passed and whatexactly has changed? Did it spark a flurry of online orderingand increase wine tourism now that wine for personal con-sumption could flow freely across provincial borders? MostCanadians still can’t buy wine directly from an out-of-province winery; unless they haul it back themselves. So far,only two of ten provinces, British Columbia and Manitoba,have so far authorized interprovincial Internet and phone sales
P
Bill C-311: One Year LaterSetting Free Canada’s Grapes…Or NotBy April Ingram
Free My Grapes tractor convoy in Penticton, BC to raise awarenus.
Photo courtesy of Perseus Winery
The Grapevine • November - December 2013 877-892-5332 Page 51
International News • November - December 2013
to individuals since the law was passed. Although the bill waspassed without any opposition at the federal level, the amend-ment did not impact the individual provinces’ right to regulatethe possession, movement and sale of wine. The CanadaRevenue Agency confirms on their website that, “supportingprovincial legislative or regulatory changes are also required topermit individuals to move wine interprovincially or to placeorders with wineries by telephone or over the Internet.” Anexample to consider, last month a pinot noir from Mission HillWinery in BC won the title of “Best in the World” at its pricepoint, and yet the vast majority of Canadians still cannot ordera bottle from the winery to enjoy. Similarly, imagine if a winelist in a Paris restaurant had no wines on it from Burgundy andBordeaux because the shipment of wines across regional bor-ders was considered illegal.
The largest provinces that appear to have the greatest resist-ance to listing the internal trade barriers are most notably,Ontario, Alberta and Quebec. The obstacles seem to befocused on apparent threat to the potential revenue loss to theirindividual liquor distribution systems if consumers can goonline or join a wine club and get wine shipped to them, cir-cumventing provincial marketing and taxation systems. Thereare some politicians at the provincial level that oppose thisfree flowing of wine because they believe that they might losesome revenue from lost mark-ups and taxes if consumers buydirect from another province; and retailers might lose a fewsales.
Wineries are certainly not trying to evade paying provincialtaxes by selling direct to consumers and in fact, Canadianwineries pay over $879 million in federal, provincial and localtaxes. This position is denied by The Liquor Control Board ofOntario (LCBO), as they state that changes to the provinciallegislation are simply unnecessary because consumers in theirprovince have access to their private ordering programs whichcan facilitate the purchase of “any wine” not sold in its stores.The LCBO which controls all liquor sales in the province, andstate that any Canadian wine is available, however the strikingreality is that due to the significant markup they charge, it isnot feasible for most small wineries to sell or make any profitsunder this system. Canada ranks 16th in global wine con-sumption but only 32% of it is Canadian made. Compare thatto Argentina at 96%, Italy at 93%, the United States at 66%and surprisingly even 50% of Russia’s wine consumption isdomestic. (www.wgao.ca)
A study conducted for The Canadian Vintner Association,accepted as valid within the industry and liquor boards,showed that the entire Canadian wine industry (includingCanadian and foreign blended wines) represents $1.15B inrevenue. 100% Canadian wines represent $471.9M in revenueand $98M in liquor board mark-ups with half of the lattergoing to provincial treasuries. This is in extreme contrast tofigures publicized by the Canadian Association of LiquorJurisdictions (CALJ) which indicate that the cost would be$300M, which means that the entire Canadian wine industrywould need to more triple to make this projection accurate.Interestingly, 83% of surveyed Ontarians believe that theyshould be able to buy wine over the internet from any winery
in Canada (Harris Decima June 2012 study “CanadiansEmbrace the Ability to Purchase Wines from OtherProvinces”). Industry sources have also noted that theprovinces have concern that by allowing internet wine sales,access to foreign wines could soon follow.
A group of dedicated volunteers, under the direction ofPresident and Founder, Shirley-Ann George, of FreeMyGrapes(freemygrapes.ca) has taken on the challenge of working withwine producers to bring the federal intent and spirit of Bill C-311 to realization. FreeMyGrapes (freemygrapes.ca) is a grass-roots, non-profit organization established by wine lovers whobelieve that Canada produces great wine, which is, unfortu-nately, often not available to Canadian consumers at their localliquor stores. They want to change this and feel that currentCanadian laws limit the variety of Canadian wines easilyavailable to Canadian consumers which then encourages thepurchase of foreign wine. This is harmful to Canadian busi-nesses and jobs by severely limiting the growth of Canadianwineries, discouraging wine tourism, and punishing thoseCanadians who wish to buy their own wines. FreeMyGrapeshas generated a movement by creating awareness throughsocial media, email campaigns and news-catching eventswhich effectively educate consumers and catch the attention ofpoliticians. According to George, “The challenge is that nowwe may have to go province to province advocating for thenecessary changes to clarify the law.” To date, their determi-nation and campaign has produced the needed changes in fed-eral law with Manitoba, British Columbia and, potentially,Nova Scotia stepping up to the intent of federal Bill C-311.
There are nearly 1700 growers and vineyards across Canadaand 476 licensed wineries, which are largely rural, small busi-
Dan Albas, Member of Parliament for the region ofthe Okanagan-Coquihalla, presented Bill C-311, aprivate member’s bill which would remove federalrestrictions prohibiting individuals from movingwine for personal use across provincial borders,which was unanimously voted in favor of andpassed In June 2012
The Grapevine • November - December 2013 877-892-5332Page 52
International News • November - December 2013
nesses that do not produce in sufficient quantities or the finan-cial capital to provide the substantial discounts required by theliquor boards to carry their product. Canadian winemakers arefrustrated that their homegrown, Canadian product that sup-ports small business and agriculture still cannot be sold onlineor by phone to Canadian consumers who want it, except inManitoba and BC. Direct to consumer sales are essential tosustain these small enterprises and they certainly cannot affordto turn away any legitimate customers from outside their ownprovince. Some, however, are choosing to ignore the provin-cial restrictions and are acting on what they feel was theintended spirit of C-311 at the federal level. Painted RockEstate Winery of Penticton, BC sells directly to Ontario con-sumers who request their product because it helps to expandthe visibility of their wines and contributes to the viability ofthe small business. Direct marketing to consumers is a grow-ing trend, especially with something as personal as wine, somaking connections directly with wineries adds to the devel-opment of a loyal consumer following. Additionally, Winerelated tourism is growing within Canada, with an estimatedtotal impact of $1.2 billion annually. According to DanPaszkowski, Canadian Vintners Association President & CEO,“The Canadian grape and wine industry contributes $6.8 bil-lion in annual economic impact to the Canadian economy andsupports more than 31,000 jobs — we are confident thatremoving internal trade barriers will further encourage indus-try market growth and new jobs.”
The United States has undergone similar evolution withregards to internet wine sales across state lines. Forty statesnow permit direct-to-consumer wine sales which accounts forapproximately 2% of all US produced wine with 75% of thisbeing sold within the wineries’ own state, meaning that onlyhalf of one percent is shipped across state lines. Further, everyUS state, including Nebraska, that have opened up their bor-ders have seen their own wine sales increase. This has alreadybeen confirmed in BC since the lifting of the regulation acrosstheir provincial border. In Manitoba it has been shown thatsince residents can go to a winery's website, place an order andhave it show up on their doorstep, sales of Canadian winefrom retailers have not declined, and in fact, Manitoba LiquorMarts reported an 11% increase in the sales of Canadian VQAwine over the previous year.
Even though Bill C-311 was accepted as federal law nearly ayear and a half ago, there are still many hurdles that need to beconquered. Hopefully, with the dedication of advocacy groupssuch as FreeMyGrapes, robust supporting data from theCanadian Vintners Association and a strong voice from con-sumers, provincial borders will soon open up to allowCanadian wine to be enjoyed across the country.
Map of Canada showing only 2 provinces, British Columbia and Manitoba, which have opened up theirprovincial borders to wine sales. Nova Scotia on the east coast has recently passed legislation and isawaiting regulations.
The Grapevine • November - December 2013 877-892-5332 Page 53
International News • November - December 2013
The Changing Face ofthe U.K. Wine Industry. How Climate Change is TransformingBritish Wine and Vineyard ProductionBy Neal Johnston
he global marketplace for the production of wine andvineyards is in the midst of ongoing transformation.In Sussex, England the average temperature in 2013
is now a degree warmer than it was for most of the latter partof the twentieth century. One degree of temperature change inviticulture can mark the difference between a bad year or agood one.
The familiar pattern of difference we are now seeing betweenthe four seasons and climate change is creating a new globalclimate that has become more and more of a constantly mov-ing and shifting metereological paradigm. The division of ayear into seasons is general marked by changes in weather,ecology, and hours of daylight. The U.K. has four seasonsmuch like the U.S. In Britain we can expect to have a spring,summer fall: ‘autumn’, and awinter.
In Scotland- which is situat-ed in the northern westernthird of the island of Britainand sharing a boarder withEngland to the south, thewinters there are now onaverage sixty per cent wetterthan they were in 1961. Andthe growing season hasincreased by thirty threedays. With regional varia-tions here in the U.K. we canexpect to see a much moreconfused weather system. With wetter winters, drier summers,and less snow and frost. The altercation between climatechange and traditional seasonal patterns i.e. changes in theweather means that we loose out, and loss sight of nature moreor less to some degree.
The kinds of grapes that grow well on British soil in vine-yards are now shifting quite rapidly. Until relatively recentlythe English wine (www.guardian.co.uk/lifeandstyle/wine)industry tended to rely on high-yield, cold climate Germanic
grape vines. The moving and re-locating of grape vineyards tocooler parts of the world has its own problems. A recent reportby the U.S. based journal, ‘Proceedings of the NationalAcademy of Sciences (www.motherjones.com/bluemar-ble/2013/04/chart-how-climate-change-and-your-wine-habit-threaten-endangered-pandas) ’, claimed that the trans-portation of vineyards could have disastrous effects for ani-mals, including pandas, that currently live in places that couldbecome prime viticulture land. Bridging the gap between cli-mate change, the vineyard operator and eventual the consumercreates a new model and a kind of hybrid grape vine culturewhich has evolved and is already in existence.
The vineyard owner, in this case the farmer, or the wine mer-chant must now revolutionist and completely reconfigure their
perception of supply anddemand to regain a strongerfoothold in a competitive andchanging market place. Onethat is not only as unpre-dictable as the weather itself,but in facing a market thathas been doing its level bestand on a global scale to givepolarity to an ever increasingand changing local and globalsituation.
The change has come aboutprimarily through naturalcauses. The main cause of
the current global warming trend is the human expansion ofthe greenhouse effect, warming that results when the atmos-phere traps heat radiating from Earth toward space. Certaingases in the atmosphere block heat from escaping. Long-livedgases, remaining semi-permanently in the atmosphere, whichdo not respond physically or chemically to changes in temper-ature, are described as ‘forcing’ climate change whereas gases,such as water, which respond physically or chemically tochanges in temperature are seen as ‘feedback.’ Finding theequilibrium between climate change and viticulture develop-
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“Even an atheist may be ready to concede that a good wine
is the taste of the gods”.
Paul Carvel. Belgian writer and editor b.1964
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International News • November - December 2013
ment will help improve and sustain consumer interest. It is notso much a case of mix and match. It is far less arbitrary thanthat. It is going to be more a case of mix and then mix again.The producer and the retailer must now act accordingly tocompensate for the bad weather patterns of climate change, inorder to retain profits and margins.
Currently the UK produces between three million and fivemillion bottles of wine a year <http://www.englishwineproduc-ers.co.uk/background/stats/> . The current crisis facing vine-yards and the change of direction within the perimeters ofvineyard production is forcing farmers to entirely shut downand abandon using previously more reliable crops. Geologistand viticulture expert Professor Richard Selley<http://www3.imperial.ac.uk/earthscienceandengineering/peo-ple/emeritusandvisiting/selleyr> worked as a consultant at theUK's biggest vineyard, Denbies in Surrey. He believes thatwithin a generation- of about twnety five years, the next gener-ation after that will have to have to replace the current vineswith other varieties better suited to a warmer climate. A specu-lative wine map he has produced shows Chardonnay growingmostly in northern England, the Welsh mountains andScotland. Merlot in much of the rest of the country, with thesouth coast of England being fit only for raisins.
As the U.K. is a member state of the European Union, it mustfollow E.U. laws on wine production, distribution and sale.These rules apply to three key areas: quality and additives inmaking different types of wine, labelling, and record keeping.The Food Standards Agency enforces these wine laws in theU.K. through its Wine Standards Branch, with which all U.K.vineyards must register. Local authorities issue licences fortrading in wine and check that the trading standards legislationis not being broken. H.M. Revenue & Customs regulatesimport duty, excise and VAT Industry self-regulation by theWine and Spirit Trade Association which also helps tomaintain standards, as well as representing the interests ofwine trade businesses. Labelling rules apply to all wine pro-duced and marketed in the E.U. In the absence of specificwine-labelling rules, food regulations apply. Trading standardsand trade descriptions may also apply. Some information mustbe included on the bottle label for the different categories andsubcategories of wine. There are also differences in require-ments for the U.K. the E.U. and other regions.
Julia Trustram Eve is the Marketing Director of the U.K.company- ‘English Wine Producers’, in Leicestershire,England. I asked her about some of the more important con-cerns facing vineyard producers in the U.K. today as comparedto other countries.
What Kinds of Pests and Diseases are you encountering?
“Being a northern European wine growing region, our chal-lenges are much as you’d find with any other similar region.We are really no different. Mildews in some conditions, forexample, frost at key growing stages – all are combated in thesame way as anywhere else, namely sprays and for frost thereare a number of methods applied that you’d find in any other
vineyard across the globe. Birds and wasps can be a problemparticularly in the later stages of growth when the grapes areriper. Again, there are various methods of preventing widescale damage. Prudent vineyard management will prevent alot, being vigilant is vital, and sharing information betweenvineyards is also enormously beneficial”.
What new varieties of grapes are there?
“In recent years, new hybrid varieties such as Solaris, Orionand Phoenix have been introduced, but they occupy a verysmall percentage of total plantings. They seem to do well overhere and they produce some good resulting wines. Our mainarea now however is in the growing the traditional varieties forEnglish Sparkling Wine, with some forty five per cent current-ly planted with Chardonnay, Pinot Noir and Pinot Meunier”.
What are the labour pool and costs of production on your vineyard?
“I don’t know of any issues at all. Obviously the producershave to keep to the employment regulations and stick to themwhich they do. There have been some recent changes to casu-al labour legislation, which over harvest is of course some-thing that some vineyards are aware of – but they get on withit and there have been no issues, as far as I know”.
What kinds of new technology have you been using lately?
“I am not aware of ‘cutting edge’ technology that is new tothe wine world and over here. I know one new winery hasinstalled Coquard presses. Not the first I hasten to add – whichis the latest in pressing equipment from Champagne, so whatyou will find in an English sparkling winery would be whatyou will find in Champagne in this and other areas. In thecommercial producers, I’d say that is what you’d find any-where in the world”.
General Statistics:
“We have just started harvest here and are anticipating agood, hopefully big, harvest as we’ve had a successful grow-ing season this year. Trends: sparkling wine – this is thegrowth sector. Currently I’d say around sixty per cent of allour production is now sparkling and this will continue toincrease over the next few years, as the acreage planted recent-ly comes in to production – in the last eight years or so,acreage in the U.K. has nearly doubled and most of that is forthe production of sparkling wine. Export is an area that is setto grow. Currently I’d say that less than five per cent ofwhat’s produced is exported, and by a handful of producers.New and existing producers are now actively seeking newexport markets. They are currently Scandinavia and the FarEast mainly, but other countries are exported to the rest ofEurope, Australia and a very small amount to the U.S.”
erman consumers are price-conscious, so retailers need toput effort into communicating value-for-money with their
Wines. According to research by Canadian, Still Wine was thelargest category in the German Wine sector in 2012, with a70.9% value share and a volume share of 83.6% of the entiremarket. Still Wine’s Compound Annual Growth Rate (CAGR) isabove the sector average for both volume and value, at 1.4% and1.6% respectively.
In spite of the pressures caused by the Eurozone crisis, thewine sector is showing steady growth to 2017. Wine is project-ed to grow at an average value CAGR of 1.2% with volumeexpected increase by 1.3% to 2017.
Germans are the world’s largest consumers of Sparkling Wineand in 2012 the category recorded a volume share of 14.6% ofthe sector. However, the data suggests that category growth mayhave slowed, with a volume CAGR of just 0.5% to 2017.
Fortified Wine is also forecast to have only a small CAGR forthe same period, with value increasing 0.2% and volume 0.6%.The category made up a tiny proportion of the German Winesector in 2012, at below 2% for both value and volume, withconsumers opting for still wine, and clear spirits, rather than theheavier and sweeter Fortified Wines.
he Wine industry in Russia is expected to grow up to 2017.According to the latest research by Canadian, the wine
market is forecast to improve at a value Compound AnnualGrowth Rate (CAGR) of 2.8% during 2012–2017 with volumegrowth being slightly lower, recording a 1.8% CAGR.
The star of the Russian wine industry to 2017 is SparklingWine. The category is forecast to see positive growth of 4.9%for value and volume, leading up to 2017. Canadian researchshows that Sparkling Wine is breaking out from being only con-sumed for celebratory occasions. In 2012, the category recordedjust over 25% share of the overall market, whilst its value sharewas just below half.
Still Wine accounted for 58.8% of the volume of the Russianmarket and 40.8% of its value, making it the largest category in2012. The CAGR is projected to be below the sector average,with a value growth of 1.0% and volume of 1.1% to 2017.
In contrast, Fortified Wine claimed a 17.9% volume share in2012, but the category is forecast to see declining demand forboth value and volume; a CAGR of -0.4% and -0.3% respective-ly. Russian consumers appear to be losing interest in Fortifieddrinks.
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Wine Sales in Russia to Grow to 2017
Quality and Pricing Drivethe Still Wine Industry in
Germany to 2017
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