San Joaquin Valley Winegrowers Association Meeting

Get your RSVP in NOW and SAVE for the

2013 Winegrape Industry Forum!

Ticket information and the program for the 2013 Annual Meeting and Winegrape Industry Forum, December 4 & 5 at Pardini’s in Fresno are on sale NOW and can be found HERE.

This highly anticipated Industry Information will be headlined by Mr. Bob Torkelson, President and COO of Trinchero Family (Sutter Home Wines) Estates. We wil be honoring Jack Farrior and Marko Zaninovich with our lifetime achievement award.

Our Annual Event starts out on December 4, with our popular wine dinner. It’s always a surprise which foods will be prepared, as they are never quite the same thing Pardini’s serves to everyone else. Bring a bottle of California Wine to share as we enjoy getting to know our speakers, and each other, in a more intimate, celebratory setting.

December 5 brings our attendees the only complete informational seminar on the California Wine and Grape Industry as it relates to the 60% of the industry here in the San Joaquin Valley. You will not find any North Coast fluff and self-aggrandizement here! Our program and online registration form can be found by clicking HERE.

Space is always at a premium at this popular industry event, so secure our discounted early reservation price by registering now, or if you have questions, please call Pam or Peter at 559-272-1411.

Patrick Cavanaugh2016-05-31T19:43:06-07:00November 25th, 2013|

WINEGRAPE ASSOCIATION NAMES NEW CHAIR

Heidi M. Scheid Elected CAWG Chair

California Association of Winegrape Growers (CAWG) has announced that Heidi M. Scheid, senior vice president of Scheid Vineyards Inc., was elected chair during the board’s Nov. 7 meeting in Sonoma, CA. Interestingly, her father, Al Scheid, served as CAWG Chair in 1978. Scheid takes over the CAWG leadership post from Bill Pauli, of Pauli Ranch in Mendocino County, who completed a two-year term.

“It is an honor for me to be elected the chair of CAWG,” said Scheid. “Since its establishment in 1974, CAWG has made a significant impact as the only statewide organization specifically focused on representing and promoting the interests of California Winegrape Growers. CAWG is the unified voice for effective state and federal advocacy and I look forward to continuing our unique role in the industry through our ongoing development of sound public policies, strengthened through membership growth.”

Scheid joined Scheid Vineyards in 1992 as Director of Planning and served as the company’s Vice President of Finance and Chief Financial Officer from 1997 to 2001. Prior to joining Scheid Vineyards she served as a senior valuation analyst at Ernst & Young, LLP and as an associate at the venture capital firm of InterVen Partners.

Scheid has been a director of Wine Market Council since 1990, a wine industry association aimed at expanding the American wine consumer base. She holds an M.B.A. degree from the University of Southern California.

In addition to her professional accomplishments, Scheid achieved some noteworthy personal goals this year as she summited both Mt. Whitney (the highest summit in the contiguous United States) and Mt. Kilimanjaro (a dormant volcanic mountain in Kilimanjaro National Park, Tanzania).

The CAWG Board also elected Aaron Lange, of LangeTwins Family Vineyards and Winery in Lodi and Dennis Wittchow, of Lent-Burden Farming in Oakdale, as vice chairs. J.D. Harkey, of Drake Enterprises in Temecula, was elected secretary. Ryan Metzler, of Fruita del Sol in Fresno, was re-elected as treasurer. Nat DiBuduo, president of Allied Grape Growers and Carson Smith, of Carson Smith Farming in Fresno, were re-elected as CAWG At-Large Directors.

CAWG’s elected officers begin their term of office on Dec. 1, 2013.

Patrick Cavanaugh2016-05-31T19:43:09-07:00November 13th, 2013|

Winegrape Demand Is Down

Current Crimp in Winegrape Demand

By Patrick Cavanaugh, Editor

While winegrape harvest in the Central San Joaquin Valley is proceeding for another two weeks, local winery giants such as Constellation Brands and The Wine Group are not buying any more grapes that are not contracted throughout California, noted Nat DiBuduo, President of the Fresno-based Allied Grape Growers.

“While the vast majority of winegrapes have been purchased at a good price, there have been a lot of bulk wine imports which are tying up tank space, so demand is losing strength,” DiBuduo said.

Nat DiBuduo

Constellation Wines

“The competition is not only your neighbors’ fruit, but also the global market,” noted DiBuduo.

Even in the north coast, demand is weak because there is still wine in the tanks from last year’s big crop. Wineries there are fulfilling contracts, but it has been tough for some varieties such as Red Zinfandel and Merlot.

Furthermore, north coast wineries have not expanded their capacity to meet the growing wine demand.

“Because of these capacity issues, many wineries are turning away any grapes from vineyards with any virus issues,” noted DiBuduo. “Many old grapevines have plant viruses which may hurt production. Many old Zinfandels have had viruses for years and have always been purchased by wineries, but for some reason, several operations are turning away the grapes this year.”

Some grape varieties are not being harvested because there is no demand. Yet, demand is still good for varieties such as Cabernet, White Zinfandel and Chardonnay, even though Chardonnay is still in excess for some wineries.

“Prices for many varietals are significant for tonnage that is in excess of the contract,” noted DiBuduo. “It’s very significant for some growers who are leaving grapes on the vine, hoping to get a buyer,” he added. “It’s all relative to what part of the state the grower is in and the varieties he is farming. There could be a winery that will buy the grapes at the right price for them.”

This volatile season is in part due to a low Thompson Seedless price from $225 to $300 per ton, with the average under $250. “Many growers decided not to go green this year and are holding out for a raisin price,” said DiBuduo. “Because of the unstableness of the season, I predict that there could be as much as 15,000 acres of Thompson pulled after this season. I know that the bulldozers are booked up.”

Patrick Cavanaugh2016-05-31T19:44:26-07:00September 30th, 2013|

WINE LEADERS ENTHUSIASTIC ABOUT INDUSTRY’S FUTURE

California Wine Industry:

Strong and Getting Stronger

It was announced TODAY that despite long-term concerns about climate change and regulatory pressures, California wine industry leaders are once again quite bullish about the wine business, according to two new surveys conducted by the University of California, Davis.

“The wine industry, by and large, has weathered the worst of the economic downturn of this decade,” said Robert Smiley, professor and dean emeritus of the UC Davis Graduate School of Management.

“The CEOs and professionals who participated in these surveys expressed a growing confidence in the future of traditional brands and optimism for the expanding global market,” he said. “And, to varying degrees, they are interested in exploring new products to meet the demands of the millennial generation and increasing their use of social media in their marketing strategies.”

Smiley has surveyed wine executives for each of the last 12 years and winemakers for 22 years. The surveys examine global and national trends in the wine industry. They complement other wine research and teaching at UC Davis, home for more than 100 years to the most comprehensive university wine program in the United States.

Survey of wine executives

In this 12th annual wine executives survey, Smiley gathered the opinions and projections from the heads of 28 leading wineries.

Now that the economy is rebounding, brand and quality are having more of an impact than price on consumer purchases, the respondents reported. They noted that even during the more difficult economic years, many consumers who were accustomed to the more expensive, higher-quality brands continued to purchase those wines; they simply bought less of them.

As the economy recovers, consumers will continue to make luxury wine purchases, but those will be well reasoned, rather than “frivolous luxury” purchases, one executive predicted.

Asked how firms are vying for the attention of the millennial generation, in light of competition from craft beers and craft cocktails, the executives offered mixed responses. Some reported that they or their competitors are developing new products by adding flavors, carbonation or even spirits to regular wine.

“It’s a great opportunity to experiment with the millennials because they are focused on things like authenticity and some integrity,” said one respondent. “They love to discover things.”

Others respondents said they are not creating such “pop products,” but rather are continuing to innovate in terms of how they source grapes and make wine, with an emphasis on quality.

Most respondents voiced keen interest in international market expansion in a variety of regions including Asia, South and Central America, Europe, Canada, Russia and even Africa.

Several respondents reported that their firms are cautiously eyeing the massive Chinese market, but with significant concerns about its stability. One executive found Japan to be a far stronger market than China, noting that Japanese wine consumers “have been buying Napa Valley wines for a long time and have a preference for those luxury items… .”

In the area of social media, the executives reported that their businesses use a variety of services, including Twitter, Facebook, Yelp, Instagram, Pinterest and Trip Advisor. Special online offerings include live tastings and streaming video. And, they are training their employees on the importance of product quality and customer service, especially in an era when consumers’ likes and dislikes are so quickly and broadly shared with the online community.

Identifying hot topics for the next five to 10 years, the survey respondents said they are most concerned about the effects of climate change; environment-related regulatory pressures; and the availability and cost of labor, land and water.

Survey of wine professionals

Smiley’s survey of California wine professionals, now in its 22nd year, gathered the opinions of 110 wine industry leaders. Most of the survey respondents represent wine companies; others are from operations that range from wineries to grape-growing and wine-distribution firms to financial institutions.

The survey respondents overwhelmingly predicted that the greatest opportunities for the wine industry will be found in increasing direct sales to consumers; followed by consumers “trading up” in terms of the price and quality of their purchases, increased wine sales, and the new market that is evolving as the millennial generation comes of age.

They project that during the next three years, California wine sales will receive their greatest boost from an improved economy and increased consumer confidence, followed by rising direct sales to consumers, improvements in value for price, and large or above-average wine-grape crops.

On the other hand, they anticipate that the greatest hurdles for the California wine industry during the next three years will be higher input costs and slow economic recovery, followed by limited water availability and “margin compression” — a decline in the margin of revenues compared to costs.

The respondents predict that over the next three years, the strongest white wine varietals will be chardonnay, sauvignon blanc and pinot grigio, while the strongest red wines will be cabernet sauvignon, pinot noir and red blends.

They anticipate the strongest growth in sales will be among wines in the $10-$14 per-bottle range, followed closely by the $14-$20 range.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

PROP REFORMS TO AFFECT WINEMAKERS

Winegrowers Lobby for Industry Priorities

The State Senate reconvenes today, Monday, August 12, 2013 to pass Prop 65 legislation before the September 13 deadline. Proposition 65 is a much-disputed law, established in 1986 that requires businesses to warn individuals before knowingly exposing them to a list of chemicals known to cause cancer, birth defects and other reproductive harm.

According to the Civil Justice Association of California (CJAC), this list of chemicals has grown to about 800 different substances and has done more to enrich plaintiffs’ lawyers to the tune of over 60% in settlements since 2000, than to protect the public from toxic chemicals.

AB 227 will help reduce Prop. 65 litigation by helping businesses avoid lawsuits for such substance exposure violations as alcohol or food-related chemicals by requiring a monetary penalty and by posting a warning before notifying the business.

Family Winemakers of California (FWC), an Association of California Table Wine Producers, are lobbying wine industry priorities. FWC is reserving judgment until Proposition 65 language is in print, perhaps within the next few days.

FWC also supports AB 1116, the private event extension bill, which is also approaching passage with its next Senate hearing. Finally, the foreign labor contractor bill, SB516, could impact J-1 visas used by the wine industry; however, FWC is working to fix the problem.

Patrick Cavanaugh2016-05-31T19:45:25-07:00August 12th, 2013|

Visit Wineries As Part of Supporting California Agriculture

Blending Art with Wine

Charter Oak Winery is a destination in Napa Valley where artisan meets artist. It represents a blending of wine and art under the auspices of family and tradition carried forth by four generations of the Ragghianti-Fanucci family.

Today, husband-and-wife duo, Robert and Layla Fanucci, helm the stunning Charter Oak Winery in St. Helena, Calif., where they create and produce their award-winning wines and world-class art at this one-of-a-kind, historic property.

The unique Tasting Room at Charter Oak Winery with surrounding art.

A true family business, Charter Oak Winery was inspired by Robert Fanucciʼs grandfather, Guido Ragghianti, an immigrant from Lucca, Italy, who began making wine in his basement cellar in San Francisco in the 1920s using grapes sourced from the Napa Valley. Guido and his brother, Raffaello, purchased the Charter Oak property in 1950, where Robert and Layla, together with their three children, now operate the familyʼs winery.

Robert was influenced at an early age by his grandfatherʼs craft and has been making wine all his life. Yet it wasn’t until 1986 when he learned the entire winemaking process from start to finish. That year, Guido handed down his skills to his grandson, from picking the ripe fruit, crushing, fermenting, pressing and placing the wine in the barrels to topping, racking and blending wines. After the harvest that year, Guido passed away.

Robert carried on his grandfather’s winemaking tradition, starting his own label in 1986 and then spending nearly a decade perfecting his handcrafted, artisanal process before sharing it with the world. In 1998, Robert released Charter Oak Wineryʼs first vintage and began selling small batches of the wines regionally.

Today Robert, together with son David, tend the grapes and winemaking year round, producing approximately 800 cases annually and distributing across the country, including to some of the most well-regarded restaurants in the U.S. Specializing in Zinfandels, Charter Oak wines have earned numerous awards and national recognition.

Charter Oak is also home to Layla Fanucciʼs art studio. Layla spends most days focused on her multi-scale work and splits her time painting in a spacious, screened-in porch or outside in a picturesque setting between two apple trees on property. Layla started her career as a beloved music teacher but now works full-time as an artist as her paintings began attracting worldwide attention. Her growing renown has led to a multitude of exhibitions and commissions.

Patrick Cavanaugh2016-05-31T19:45:25-07:00August 12th, 2013|

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