Wednesday, May 5, 2010
Thursday, April 1, 2010
Monday, March 1, 2010
Dear Vineyards, Spring is Right Around the Corner
A new season is among us after a long winter. Whether you are in full production or just beginning to develop your site, you will need to be prepared for the seasons to come.
Orchard Valley Supply has Felco pruners, Bird Gard products, bird netting and so much more. Our products assist you in planting, training and trellising while your plants stay protected and grow.
Are you starting a new vineyard? We have all the tools for you. Please check out our shop. Feel free to contact us if you need assistance!
Orchard Valley Supply has Felco pruners, Bird Gard products, bird netting and so much more. Our products assist you in planting, training and trellising while your plants stay protected and grow.
Are you starting a new vineyard? We have all the tools for you. Please check out our shop. Feel free to contact us if you need assistance!
Thursday, January 28, 2010
Imports help overall wine sales; end of ‘09 better; slow recovery seen
By Jeff Quackenbush, Business Journal Staff Reporter, NBBJ
SACRAMENTO — Large scale importation of bulk and bottled wine helped boost total U.S. shipments by an estimated 2.1 percent last year, but wineries heavily impacted by shifting consumer demand may have to wait until 2011 for significant market improvement, an expert said at a major industry symposium here this morning.
Despite signs of improved sales for higher-end wines in the waning months of 2009, some winery representatives listening to Jon Fredrikson’s analysis at the Unified Wine & Grape Symposium are preparing for a longer recovery.
California wine shipments for the first 11 months of 2009 decreased 3.9 million cases, or 1.6 percent, according to Mr. Fredrikson of Woodside-based Gomberg Fredrikson & Associates.
“It’s the first time in 16 years California shipments declined,” he said.
U.S. shipments decreased 1.4 percent, or by 3 million cases last year to a total of 323 million.
When shipments of imported wine are considered, total shipments increased 6.5 million cases, or 2.1 percent.
He pointed to a survey of five large wine warehouses in Napa and Sonoma counties that suggested small growth in late 2009 after a decline of 20 percent for first half of last year.
The Neilsen Company estimated that store sales of wine for the year increased 4 percent from the year before, with food store sales increasing and liquor store sales weakening.
Also, table wine sales between summer of 2008 and fall 2009 were hot for wines retailing below $9 a bottle.
In the last few months of last year, the $9 to $12 category started showing signs of increased sales, according to Mr. Fredrikson.
“It could indicate that prices are moving back up,” he said.
Boding well for the start of recovery in wine sales in 2010 is critical acclaim for the 2007 vintage for red wines now being released.
Ted Lehr, manager of grower relations in Sonoma County and the Central Valley for Jackson Family Wines, said he thinks recovery for the business will take longer for brands to regain past price points.
“We do not think it will get better until 2012 to 2013 after a year of seeing private-sector hiring,” he said following the presentation by panel experts.
Robert LaVine, director of California sourcing for Brown-Forman Corp., which produces Fetzer and Sonoma Cutrer wines, said he wants to believe recovery in 2011 is a given.
“Wine is an affordable luxury and adds to quality of life, so people will return to it,” he said.
However, global competition for U.S. consumers who may or may not carry their new-found frugality into the future may force California wine operations, including those in fine wine regions, to adjust to a new reality of global sourcing, according to another panelist at the symposium today.
More wine companies will act like consumer packaged goods companies, with a focus on price, margin and consumer acceptance, said Glenn Proctor of Ciatti Co. in San Rafael.
“As the price point moves out of their comfort level, they will source from other areas of the world and may not come back when California plants more vines,” he said.
He pointed to a large inflow of chardonnay wine from glutted Australia last year, which affected sales of such grapes from Napa and Sonoma counties for premium tier programs.
“California wine is not going away,” he said.
However, to be competitive, California wine grape growers should look at global markets as a future source for increasing quality, lower priced wine, he said.
High costs of farming may call for more mechanization of viticulture and higher North Coast yields per acre, he added.
“The premium market is going to be difficult for the next 12 to 18 months,” Mr. Proctor said.
To view entire article, please click here.
SACRAMENTO — Large scale importation of bulk and bottled wine helped boost total U.S. shipments by an estimated 2.1 percent last year, but wineries heavily impacted by shifting consumer demand may have to wait until 2011 for significant market improvement, an expert said at a major industry symposium here this morning.
Despite signs of improved sales for higher-end wines in the waning months of 2009, some winery representatives listening to Jon Fredrikson’s analysis at the Unified Wine & Grape Symposium are preparing for a longer recovery.
California wine shipments for the first 11 months of 2009 decreased 3.9 million cases, or 1.6 percent, according to Mr. Fredrikson of Woodside-based Gomberg Fredrikson & Associates.
“It’s the first time in 16 years California shipments declined,” he said.
U.S. shipments decreased 1.4 percent, or by 3 million cases last year to a total of 323 million.
When shipments of imported wine are considered, total shipments increased 6.5 million cases, or 2.1 percent.
He pointed to a survey of five large wine warehouses in Napa and Sonoma counties that suggested small growth in late 2009 after a decline of 20 percent for first half of last year.
The Neilsen Company estimated that store sales of wine for the year increased 4 percent from the year before, with food store sales increasing and liquor store sales weakening.
Also, table wine sales between summer of 2008 and fall 2009 were hot for wines retailing below $9 a bottle.
In the last few months of last year, the $9 to $12 category started showing signs of increased sales, according to Mr. Fredrikson.
“It could indicate that prices are moving back up,” he said.
Boding well for the start of recovery in wine sales in 2010 is critical acclaim for the 2007 vintage for red wines now being released.
Ted Lehr, manager of grower relations in Sonoma County and the Central Valley for Jackson Family Wines, said he thinks recovery for the business will take longer for brands to regain past price points.
“We do not think it will get better until 2012 to 2013 after a year of seeing private-sector hiring,” he said following the presentation by panel experts.
Robert LaVine, director of California sourcing for Brown-Forman Corp., which produces Fetzer and Sonoma Cutrer wines, said he wants to believe recovery in 2011 is a given.
“Wine is an affordable luxury and adds to quality of life, so people will return to it,” he said.
However, global competition for U.S. consumers who may or may not carry their new-found frugality into the future may force California wine operations, including those in fine wine regions, to adjust to a new reality of global sourcing, according to another panelist at the symposium today.
More wine companies will act like consumer packaged goods companies, with a focus on price, margin and consumer acceptance, said Glenn Proctor of Ciatti Co. in San Rafael.
“As the price point moves out of their comfort level, they will source from other areas of the world and may not come back when California plants more vines,” he said.
He pointed to a large inflow of chardonnay wine from glutted Australia last year, which affected sales of such grapes from Napa and Sonoma counties for premium tier programs.
“California wine is not going away,” he said.
However, to be competitive, California wine grape growers should look at global markets as a future source for increasing quality, lower priced wine, he said.
High costs of farming may call for more mechanization of viticulture and higher North Coast yields per acre, he added.
“The premium market is going to be difficult for the next 12 to 18 months,” Mr. Proctor said.
To view entire article, please click here.
Monday, December 28, 2009
Insure Your Grapevines
New policies cover vineyard assets, not just crop damage
by Paul Franson
Live Asset Insurance, a division of Marshall & Sterling, covers a wide range of maladies, including freeze, hurricane, fire, weight-of-ice, sleet, snow, lightning, explosion, tornado, hail, smoke, aircraft or vehicle damage, flood (except zones A & V), vandalism, sprinkler leakage, sinkhole, volcanic action, falling objects, water damage (limited), earth movement, riot or civil commotion and theft.
The company focuses on protecting perennial crops -- not just vines but also trees, shrubs and other plants at locations such as parks, orchards, tree farms, golf courses and even zoos. It covers the trees at the San Diego Wild Animal Park, for example, and also covers Christmas tree farms.
David Teed, managing director of Live Asset Insurance, says the company recently targeted winegrapes as well. “Government crop insurance covers grapes and raisins, but not the vines themselves. They had a pilot program in Napa Valley to cover vines, but realized they weren’t allowed to compete with private industry, so they backed off.” He claims that his service is unique.
Teed adds that the insurance companies that protect wineries typically avoid exterior assets or set very low limits on coverage; in fact, the company is now receiving referrals from some of these insurers.
Live Asset Insurance can insure an individual vine up to $250 and can cover lost wine production as well as vine replacement, depending on how the policy is structured. “A vineyard can be out of production for four or five years, and we can compensate for the lost revenue or pay for the present value of the vines.” It will also pay for loss to the scion, even if the rootstock isn’t damaged, as might be caused by a freeze.
The program is quite new, and it’s still being tweaked. Initially, the minimum premium was $5,000 and the deductible was $10,000, which meant a grower could be out of pocket $15,000 or more. Teed says that made the coverage unattractive for smaller growers -- and larger vineyards generally self-insure. Starting Jan.1, he’ll announce a lower minimum premium -- $1,000 -- and lower deductible of $2,500.
The company says that it already covers a couple of vineyards in California. One actually had a fire in the vineyard, but it didn’t reach the former deductible. “Under the new rates, they would have received compensation.”
Another benefit of the insurance is that it could provide additional guarantees to lenders hesitant to lend on property in these challenging times. “We haven’t focused on the lenders since we didn’t want growers to feel we’re shoving this down their throats, but there’s obvious benefit to the lenders,” Teed says.
To read rest of Wines & Vines' article please click here.
by Paul Franson
Live Asset Insurance, a division of Marshall & Sterling, covers a wide range of maladies, including freeze, hurricane, fire, weight-of-ice, sleet, snow, lightning, explosion, tornado, hail, smoke, aircraft or vehicle damage, flood (except zones A & V), vandalism, sprinkler leakage, sinkhole, volcanic action, falling objects, water damage (limited), earth movement, riot or civil commotion and theft.
The company focuses on protecting perennial crops -- not just vines but also trees, shrubs and other plants at locations such as parks, orchards, tree farms, golf courses and even zoos. It covers the trees at the San Diego Wild Animal Park, for example, and also covers Christmas tree farms.
David Teed, managing director of Live Asset Insurance, says the company recently targeted winegrapes as well. “Government crop insurance covers grapes and raisins, but not the vines themselves. They had a pilot program in Napa Valley to cover vines, but realized they weren’t allowed to compete with private industry, so they backed off.” He claims that his service is unique.
Teed adds that the insurance companies that protect wineries typically avoid exterior assets or set very low limits on coverage; in fact, the company is now receiving referrals from some of these insurers.
Live Asset Insurance can insure an individual vine up to $250 and can cover lost wine production as well as vine replacement, depending on how the policy is structured. “A vineyard can be out of production for four or five years, and we can compensate for the lost revenue or pay for the present value of the vines.” It will also pay for loss to the scion, even if the rootstock isn’t damaged, as might be caused by a freeze.
The program is quite new, and it’s still being tweaked. Initially, the minimum premium was $5,000 and the deductible was $10,000, which meant a grower could be out of pocket $15,000 or more. Teed says that made the coverage unattractive for smaller growers -- and larger vineyards generally self-insure. Starting Jan.1, he’ll announce a lower minimum premium -- $1,000 -- and lower deductible of $2,500.
The company says that it already covers a couple of vineyards in California. One actually had a fire in the vineyard, but it didn’t reach the former deductible. “Under the new rates, they would have received compensation.”
Another benefit of the insurance is that it could provide additional guarantees to lenders hesitant to lend on property in these challenging times. “We haven’t focused on the lenders since we didn’t want growers to feel we’re shoving this down their throats, but there’s obvious benefit to the lenders,” Teed says.
To read rest of Wines & Vines' article please click here.
Tuesday, November 24, 2009
U.S. Wineries See Hope in Hong Kong
Hong Kong, China -- Hong Kong is fast becoming a major wine trading and distribution hub, and many North American wineries seek to expand into the Asian wine market. The second annual Hong Kong International Wine and Spirits Fair, held Nov. 4-6, drew 520 exhibitors from 34 countries and six continents -- more than double the attendance at the 2008 show. With the promise of a burgeoning Asian wine market, many growers made the trip expecting to find distributors anxious for their business: They quickly learned that patience and hard work are necessary to crack the Asian market.
Hong Kong’s position as a major wine center has increasingly solidified during the past few years. The Chinese government has taken an active role in making Hong Kong a wine-friendly region -- first by eliminating wine duties in early 2008, and also permitting wine to be transferred to storage prior to clearing customs (rather than sitting on the tarmac). Hong Kong cooperates with major wine-producing nations, already is the main distribution center for Asia and is set to become a wine auction center second only to London.
Understanding the Asian palate
As the wine industry in Hong Kong grows, so does the sophistication of the Hong Kong palate. Ross Chan of California Grapes International Inc., a Hong Kong-based distributorship specializing in California wines, described Hong Kong as having a taste for “premium red wines.” Conversely, he said, “less educated areas like the mainland want lower prices and sweeter wines.”
Korbin Ming, the marketing and sales director for Glen Ellen, Calif.-based Korbin Kameron Wines, noted that the Chinese “like to drink more” at a single sitting but “prefer less robust wines.” Ming’s display included a Best of Class medal won at the fair's associated wine contest, as well as a silver for its Cabernet, but he said that while the medals made potential distributors more likely to stop at the booth, in general competitions aren't that important to the local distributors. And though his family is originally from Hong Kong (Ming lived there until he was 5 years old and grew up speaking Chinese), Ming said, “Hong Kong is a confusing market. We came here to learn it, but it raised more questions than answers.”
Daniel Choy is the sourcing officer for San Castle Wines, a leading importer into the mainland, with offices in Guandong, China, and San Gabriel, Calif. San Castle has several U.S. clients and represents wineries from Europe and South America. Choy said it is looking for winemakers who believe in “taste, packaging and have a seriousness about the quality of the wine.” Equally important, Choy said, the wines must be competitively priced.
Read the rest of the wineandvines.com article here.
Hong Kong’s position as a major wine center has increasingly solidified during the past few years. The Chinese government has taken an active role in making Hong Kong a wine-friendly region -- first by eliminating wine duties in early 2008, and also permitting wine to be transferred to storage prior to clearing customs (rather than sitting on the tarmac). Hong Kong cooperates with major wine-producing nations, already is the main distribution center for Asia and is set to become a wine auction center second only to London.
Understanding the Asian palate
As the wine industry in Hong Kong grows, so does the sophistication of the Hong Kong palate. Ross Chan of California Grapes International Inc., a Hong Kong-based distributorship specializing in California wines, described Hong Kong as having a taste for “premium red wines.” Conversely, he said, “less educated areas like the mainland want lower prices and sweeter wines.”
Korbin Ming, the marketing and sales director for Glen Ellen, Calif.-based Korbin Kameron Wines, noted that the Chinese “like to drink more” at a single sitting but “prefer less robust wines.” Ming’s display included a Best of Class medal won at the fair's associated wine contest, as well as a silver for its Cabernet, but he said that while the medals made potential distributors more likely to stop at the booth, in general competitions aren't that important to the local distributors. And though his family is originally from Hong Kong (Ming lived there until he was 5 years old and grew up speaking Chinese), Ming said, “Hong Kong is a confusing market. We came here to learn it, but it raised more questions than answers.”
Daniel Choy is the sourcing officer for San Castle Wines, a leading importer into the mainland, with offices in Guandong, China, and San Gabriel, Calif. San Castle has several U.S. clients and represents wineries from Europe and South America. Choy said it is looking for winemakers who believe in “taste, packaging and have a seriousness about the quality of the wine.” Equally important, Choy said, the wines must be competitively priced.
Read the rest of the wineandvines.com article here.
Thursday, October 29, 2009
Rain to cut short this year's grape harvest
The North Coast's wine grape harvest winds down this week, whether grape pickers and vintners are ready or not.
That's because the weather is likely to call it quits on the remnants of the season. Rain is in the weekend forecast.
“This is the week to get it all done,” Bob Anderson, executive director of the United Winegrowers for Sonoma County. “I think it has been a mad scramble ever since that big rain, but it looks in pretty good order now.”
After serving up a surprise blast of rain on Oct. 13, Mother Nature gave wine grape harvesters a two-week breather of cool evenings and warm daytime temperatures to get their remaining crop into their processing operations.
At Buena Vista winery near Sonoma, crews have already started processing the chardonnay and pinot grapes that were largely pulled from vines even before the Oct. 13 rain storm.
Buena Vista winemaker Jeff Stewart said “we are 95 percent finished, maybe a little splash of merlot is left out there, so this week will be the clean up.”
Stewart said the unseasonable rain storm “definitely woke everybody up and got us going.”
Since then, vineyard operators have been rushing to bring in the harvest and are not waiting for another threat of rain.
“We will be wrapped up this week and most growers out there will be in the same boat,” Stewart said. “The heat over this weekend was great, but there are too many vineyards ready to give up at this point.”
Anderson said much of the grape crop in Sonoma has been harvested with the exception of some hearty reds, such as cabernet sauvignon and others that end up as dessert wine. However, he had reports that as much as 20 percent of the Mendocino County crop was still on the vine.
“Growers and wineries are still looking at some of the ‘cab' and the debate is whether there are going to be some warming up days ahead of them this week,” Anderson said. “The problem is that the sugar levels have not changed much over the last couple weeks, so time is running out.”
Weather forecasters say daytime temperatures will gradually decline, from the low 80s today to the mid 60s on Friday, before giving way to cloudy skies and chances of rain Saturday and Sunday.
Read the rest of the article here.
That's because the weather is likely to call it quits on the remnants of the season. Rain is in the weekend forecast.
“This is the week to get it all done,” Bob Anderson, executive director of the United Winegrowers for Sonoma County. “I think it has been a mad scramble ever since that big rain, but it looks in pretty good order now.”
After serving up a surprise blast of rain on Oct. 13, Mother Nature gave wine grape harvesters a two-week breather of cool evenings and warm daytime temperatures to get their remaining crop into their processing operations.
At Buena Vista winery near Sonoma, crews have already started processing the chardonnay and pinot grapes that were largely pulled from vines even before the Oct. 13 rain storm.
Buena Vista winemaker Jeff Stewart said “we are 95 percent finished, maybe a little splash of merlot is left out there, so this week will be the clean up.”
Stewart said the unseasonable rain storm “definitely woke everybody up and got us going.”
Since then, vineyard operators have been rushing to bring in the harvest and are not waiting for another threat of rain.
“We will be wrapped up this week and most growers out there will be in the same boat,” Stewart said. “The heat over this weekend was great, but there are too many vineyards ready to give up at this point.”
Anderson said much of the grape crop in Sonoma has been harvested with the exception of some hearty reds, such as cabernet sauvignon and others that end up as dessert wine. However, he had reports that as much as 20 percent of the Mendocino County crop was still on the vine.
“Growers and wineries are still looking at some of the ‘cab' and the debate is whether there are going to be some warming up days ahead of them this week,” Anderson said. “The problem is that the sugar levels have not changed much over the last couple weeks, so time is running out.”
Weather forecasters say daytime temperatures will gradually decline, from the low 80s today to the mid 60s on Friday, before giving way to cloudy skies and chances of rain Saturday and Sunday.
Read the rest of the article here.
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