Author: Cyndi

ACQUIESCE WINERY:

Cyndi

Lodi’s Hidden Gem

woman holding a bottle of wine and glass

By: Nan McCreary

When wine aficionados think of Lodi, California, Zinfandel comes to mind. Yet, in this sea of red, is Acquiesce Winery, a hidden gem that makes nothing but white Rhône wines.

  When Rodney and Susan Tipton purchased an 18-acre plot of land near Lodi with a hundred-year-old barn and 12 acres of Zinfandel, grape growing was the last thing on their minds. They named the property “Acquiesce” after a k.d. lang song with the same name, which reminds one to acquiesce, or surrender to nature and enjoy the quiet. This was in 2000, and Lodi was buzzing with vineyards and wineries. Inevitably, the Tiptons developed an interest in the local wine trade. 

  “We started making wine as home winemakers and, at the time, I just happened to taste a Grenache Blanc from Châteauneuf-du-Pape and thought it was the best wine I’d ever had,” Susan Tipton said. “I tried to buy two cases, but the store owner said, ‘You are holding the last bottle in California.’ This is where we began our journey.”

Susan, who managed various enterprises while she and Rodney raised three boys, describes herself as a worker-bee, so she set out to learn all she could about white Rhône grapes. She discovered that only 6% of grapes in Châteauneuf-du-Pape are white, and most don‘t make it to the U.S. When they do, they are usually oaked and expensive.

  Winemakers in Lodi discouraged her from making white wines, saying she’d need red wines to stay in business, but Susan remained undaunted. “I fell in love with the Rhône wines, especially the whites in the Châteauneuf-du-Pape grouping,” Tipton said.  “I always thought white wine was treated as a second class citizen—you never see a 100-point white wine—so I wanted to do white wines, and I wanted to do them right.”

  Research on the Lodi terroir encouraged Susan to pursue her passion. The climate was similar to the Southern Rhône, with warm, sunny days to ripen the grapes and the delta breeze from the Pacific Ocean to cool the grapes at night. Plus, the sandy soil on their property was perfect for nourishing the grapes. She was convinced they could grow Rhône grapes, and grow them well. 

  In 2005, with Susan as the winemaker and Rodney as operations manager, the two planted their first grapes–clones of Grenache Blanc from Tablas Creek Vineyards’ cuttings, which originated from the famed Château de Beaucastel in southern Rhône. The success of these wines led the Tiptons to plant Roussanne, Viognier, Picpoul Blanc and more Grenache Blanc in 2009.

  “At the time, we were making so much wine that we had more than we could give to friends,” she said, “so we decided to open a tasting room in the old barn. We started a wine club too, and when it developed a significant waitlist, our members encouraged us to plant more grapes.”

  In 2015, the Tiptons planted more Picpoul Blanc, Roussanne and Grenache Noir, along with new varietal Clairette Blanche. In 2016, Acquiesce Winery was the first vineyard in the U.S. to plant Bourboulenc. All Acquiesce vines are cuttings from Château de Beaucastel.

  Early in this journey, Tipton hired winemaker Heather Pyle Lucas, one of the founding winemakers at Opus One Winery, to guide her through the winemaking process. Lucas, with 30 years in the industry and owner and winemaker at Lucas Winery in Lodi, assured Tipton that she could make world-class wines.

  “I was super excited about this,” Tipton said. “I was always the winemaker, but she worked with us for over 10 years as a little bird on my shoulder who was giving me helpful hints and instruction as we went along. She really helped us to create our vision.”

  That vision has come to fruition. Today, Acquiesce is truly a jewel in the crown of Lodi, the largest grape region in the world. As a one-of-a-kind vineyard, creating white wines exclusively, Acquiesce wines sell out every year, and its wine club is the hot ticket in town. The winery is also introducing people to the white wines of the Southern Rhône, which are extremely rare in the U.S. According to Tipton, their signature wine is the Grenache Blanc, the grape that “sold” her on Rhône wines.

  “Grenache Blanc is a one-off of red Grenache and has a big mid-palate like a red wine,” Tipton said. “People who think they don’t like white wines come to our tasting room and try the wine and say, ‘Wow, I’ve never had a wine like this before.’”

  Tipton attributes their success to a passion for the grapes and strict attention to detail. Grapes are estate-grown, hand-picked, whole-cluster pressed and fermented in stainless steel – no oak. “Our whole goal is to bring what’s in the vineyard into the bottle without interference.”

  The Tiptons farm their grapes according to the area’s “Lodi Rules”: over 120 farming standard practices that help farmers manage their vineyards sustainably. The rules are divided into six categories: ecosystem management, water management, soil management, pest management, business management and human resources. “Our vineyard manager certifies us every year,” Tipton said. “We live on the property, so it behooves us to make sure we’re doing what’s best for us and our customers.”

  In the cellar, Tipton carefully “babysits” the grapes during fermentation. “I’d made big reds—Zinfandels—on the property and thought it was pretty easy, but making white wines and rosés is very challenging,” she said. “I’ve talked to people in France who’ve said the same thing. It’s all a timing issue. I have to make sure the wine maintains a certain temperature during fermentation, I limit its exposure to oxygen, and I take care to fine and filter it properly. During this process, if you do one little thing incorrectly, the whole batch can turn out wrong.” 

  Rosés, she said, are particularly sensitive if the temperature and yeast are not quite right. Acquiesce produces a Provence-style rosé from Grenache, using the direct press method. According to Tipton, the grapes for direct press are picked at lower brix and higher acids than grapes harvested for the saignée method. This keeps the alcohol levels down and brings up the acidity, resulting in grapes with more perfumed aromatics and delicate flavors.

  Acquiesce wines are all of premium quality and single variety, with the exception of two blends: Belle Blanc, a blend of Grenache Blanc, Roussanne and Viognier; and Ingénue, a unique blend of Grenache Blanc, Clairette Blanche, Bourboulenc and Picpoul Blanc. The winery also produces a méthode champenoise Grenache Blanc that Tipton describes as “mineral-driven and crisp, a lush and elegant representation of Lodi’s terroir that pairs well with everything.” Tipton believes she makes the only méthode champenoise sparkling Grenache Blanc in the world, and she knows of only two other wineries in the U.S. making Clairette Blanche.

  Many of Acquiesce’s wines have won multiple national and international awards, with numerous Double Gold, Gold and Best of Class awards. In 2016, Tipton’s Viognier was awarded Best in the State at the California State Fair.

  While the Acquiesce tasting room is temporarily closed because of the coronavirus, the winery, like many others, is “pivoting” by offering virtual tasting experiences that include food pairings specially matched for each wine. These experiences are similar to what Tipton offers when the tasting room is open to customers.

  “We up our game and try to have conversations– whether live or online–about why these wines are special,” Tipton said. “When you pair them with the right foods, it can be life-changing.” Wines for the tastings can be ordered online at discounted shipping rates or picked up at the winery.

  As the Tiptons look to the future, they are content to stay where they are, producing 4,000 cases a year and selling their wines only out of the tasting room. Since they sell out of their annual production, they close the tasting room four months out of the year.

  “It’s basically just my husband and me, and we have two guys who help us during pressing, so we have no interest in growing,” Tipton told The Grapevine Magazine. “We called our property Acquiesce because we really wanted to surrender, but, in fact, we haven’t really acquiesced because we’ve been working so hard. But it’s been fun, and we have acquiesced to the grapes. That is our mantra: to submit to nature, to yield to the vineyard, to acquiesce to the grapes, so they present their own true character.”

For more information on Acquiesce Winery and their virtual tastings, visit their website at https://www.acquiescevineyards.com/.

Protecting & Preserving Wine Through Chemical Reaction:

Cyndi

Wineries Turn to Nitrogen as the Superhero of Industrial Gases.

bottle pouring wine smoking

 

By: Cheryl Gray

Nitrogen use in winemaking is a carefully orchestrated and scientific process. Its chief role is to guard against the adverse effects of oxidation, which diminishes both the quality and shelf life of wine. Consider the vinegar-like taste of a wine left opened or unfinished for too long and immediately understand why wineries use nitrogen to prevent oxygen exposure during production and storage.

  While multiple inert gases are available to prevent oxygen from coming into contact with wines, experts say that the choice of which industrial gas to use is linked to cost, availability and the type of wines produced. Nitrogen is a popular choice because it is in ready supply, making up roughly 80% of the Earth’s atmosphere. That means it is available at an attractive price versus other industrial gases.

  Penelope Gadd-Coster is Executive Director of Winemaking at California’s Rack and Riddle Custom Wine Services. She told The Grapevine Magazine that cost and efficiency are the reasons her winery opts to use nitrogen.

  “It is an inert gas, inexpensive…and there are generators for nitrogen, so outside gas companies are not needed,” she said.

  Like Gadd-Coster, proponents of nitrogen use in winemaking point to multiple benefits derived from deploying nitrogen gas generators, which allow wineries to produce nitrogen gas on demand. That, in turn, can help boost productivity. The use of a nitrogen gas generator also eliminates the safety risks associated with high-pressure gas cylinders. Additionally, those in-house generators bypass vendor issues that might include price increases, long-term contracts, delivery schedules, surcharges and tank rental fees. 

  There is also the benefit of low energy use, resulting in more stable long-term costs. The option to expand is attractive, too, since, with nitrogen gas generators, there is room for adding extra capacity to accommodate a winery’s growth.

On Site Gas Systems, Inc.

  One of the global leaders in gas generating technology is On Site Gas Systems, Inc., based in Newington, Connecticut. Its President and Founder, Francis X. Hursey, was among the veteran scientists and engineers who developed pressure swing adsorption oxygen technology for NASA’s Project Apollo space program, which sent the first humans to the moon. Hursey has received multiple patents in non-cryogenic gas technology, medical products and nitrogen applications. After developing PSA oxygen technology for the Apollo Breathing Air Team, Hursey would use that same core knowledge to launch On Site Gas Systems in 1987.

  Michael Montesi is Sales Manager of Commercial Products for On Site Gas Systems. He told The Grapevine Magazine about the design and features of one of the company’s latest nitrogen generators for on-site use.

  “We offer a newer unit called the Nitroblast that is specifically designed for the beverage industry,” he said. “The main innovation of this product is the compact size and all-in-one product integration. That is very cost-effective for the small user that might have been prevented from purchasing a nitrogen generator in the past.”

  Montesi said that nitrogen systems manufactured by On Site Gas Systems are based on continuous innovation, which ensures that the company is not only staying ahead of the curve but also defining it. He pointed to a research and development team whose members have decades of experience knowing how to deliver innovation without making it complicated.

  “We specialize in systems designed, sized and built for the correct purity, pressure and flow for each application,” said Montesi. “Our philosophy is to keep the simple processes simple and make complex processes less complex. This way of thinking has formed the basis for our product reputation–safe, continuous, flexible systems that provide cost-saving, reliable gas generation.”

Parker Hannifin

  Parker Hannifin is another global industry front-runner manufacturing compressed air treatment and gas generation products. The company produces a wide range of membrane module and pressure swing adsorption nitrogen gas generators. It’s been selling nitrogen gas generators to the wine industry for three decades.

  Randy Peccia is Product Sales Manager for Parker Hannifin in its Industrial Gas Filtration and Generation Division, based in Lancaster, New York. He explained how both membrane and PSA technologies allow users to generate on-site nitrogen gas with a compressed air source. 

  “Membrane technology uses bundles of hollow-fiber contained within a tube. The fiber walls selectively separate compressed air by permeating oxygen, water vapor and other waste gases to the atmosphere,” Peccia said. “Nitrogen molecules are retained within the walls of the fibers resulting in the delivery of nitrogen gas of 90-99% purity to the application. Some membranes are capable of achieving 99.5% purity. With no moving parts, membrane modules are a cost-effective, reliable and safe solution to on-site nitrogen gas generation.

  “PSA is a regenerative technology that uses columns filled with carbon molecular sieve to separate compressed air,” he said. “In the ‘online’ columns, oxygen and other waste gases are selectively adsorbed by the CMS, allowing nitrogen gas of 95-99.999% to pass through to the application. The CMS in the ‘offline’ columns is regenerated by releasing the pressure in the columns and venting the waste gases to the atmosphere. This constant swing in pressure between columns is why the technology is called pressure swing adsorption.”

  Peccia told The Grapevine Magazine that PSA technology is the primary candidate for wineries because of the purity levels it allows users to achieve. He added that depending upon the amount of nitrogen used at a given winery, Parker Hannifin’s PSA nitrogen gas generators can deliver, at minimum, a 12- to 18-month payback with low energy usage and stable gas costs. Peccia detailed the most common uses of nitrogen in wineries: sparging, flushing and blanketing.

  “During the fermentation process, oxygen will naturally dissolve into the wine. Sparging is a process where very fine bubbles of nitrogen are passed through the wine to remove dissolved oxygen. It is important to note that red and white wines differ in chemistry, and because of this, the use of nitrogen gas sparging may differ in production. For example, some wines require a certain amount of CO2,” he said. “To avoid removing CO2 below the required level, a mixture of CO2 and nitrogen is utilized for sparging. This is most common in production of white wines but required for some red wines.

  “During production, wine is transferred between multiple containers via pumps and hoses before becoming a finished product and sealed into a bottle. This adds the risk of oxygen exposure. Nitrogen is used to flush out oxygen within storage tanks, barrels, transfer pumps, hoses and bottles to prevent unwanted oxidation. Flushing is also used during bottling before a bottle is filled with wine.

  “Nitrogen can be used to blanket the ullage, or headspace, of partially filled containers used throughout the production process. Headspace is the result of not filling a container from top to bottom. This space helps to compensate for the expansion and contraction of the wine due to changes in ambient temperature. Headspace is also a factor during bottling where there is a space between the bottle seal and the wine. Blanketing the headspace of a container before a bottle is sealed helps to eliminate oxygen exposure,” said Peccia.

  Bars and restaurants use nitrogen gas in wine dispensing, reducing the risk of oxidation in a bottle of wine before that bottle is empty. That means those businesses can stretch the shelf life of a bottle of wine for one to two months instead of throwing out spoiled wine and, in the process, losing money on an unusable product.  

Necessary Caution

  Safeguards are a must when it comes to using nitrogen. Rack and Riddle’s Gadd-Coster explained why wineries have to exercise caution to protect their workforce. “It does displace air in enclosed spaces and so is dangerous in that respect. Enclosed space protocols need to be respected.”

  Suffocation is a genuine threat to workers if a nitrogen gas leak goes undetected. For this reason, most wineries use gas monitors, portable sensors and other gas detection technology designed to protect workers from oxygen depletion. Illinois-based PureAire Monitoring Systems services a vast array of food and beverage clients, including wineries. The company has a wide range of monitors for specific needs with features that promote ease of operation and longevity, such as a digital screen displaying an instant-read of oxygen levels and a zirconium oxide sensor cell. Its dual oxygen/carbon dioxide model includes both the zirconium oxide sensor cell and a non-dispersive infrared sensor cell.

  The use of nitrogen gas is a part of nearly every food and beverage processing industry, including winemaking. For a product whose optimal result depends on the right combination of artisanship and science, wineries are using nitrogen to heighten the taste and quality of their wines as well as their profits.

There’s a Closure for That:

Cyndi

Variety & Customization Enhance Wine Closure Options

3 cork screws

By: Gerald Dlubala  

The choice of closure options and accompanying customizations that awaits today’s winemaker can be mind-boggling. As has been the norm, the tried and true cork still holds the title of most requested. However, due to evolving technological advances, performance enhancements and environmental and safety issues, alternative options in closure choices may be just as viable and sometimes the more economical and efficient choice to preserve and market wine. Every aspect of packaging contributes to the overall cost, and closure choice is no different.

“Capsules and closures are pretty standard to our industry, serving as both a key element to the packaging while also providing any evidence of tampering,” said Melanie Thomas, sales and business development professional for Janson Capsules, a leading Napa-based manufacturer of capsules and screwcaps for the wine, spirits and gourmet foods industry. “Costs for capsules differ depending on what they are made of and the type of packaging needed, including stock or custom colors, decorations, size, embossing, hot stamping, etc. Generally speaking, Polylam capsules can be between $40 to $60 per 1000 pieces, while PVC choices will run the winemaker between $25 to $40 per 1000 units, and then tin capsules come in between $275 to $450 per 1000 pieces. Screwcap choices include factors like liner choice, finish, decoration and sometimes specific knurling needs that influence their price point. Their pricing runs between $85 to $200 per 1000 pieces, depending on those factors.”

  “Pricing is certainly a factor when choosing closures, but it’s usually not the only factor,” said Bobbi Stebbins, Director of Marketing at Waterloo Container Company, a premier supplier of wine bottles, caps, corks and closures to eastern North America. “It’s important to let your packaging provider know upfront what the important determining factors are in your closure choices, including things like recyclability or where products are manufactured. Knowing these factors upfront can help narrow down your closure choices. Manufacturing processes and standards are not the same from product to product or from country to country, so we can filter down your closure options and limit them to the available product options that you will be proud to have associated with your brand.”

  Both Stebbins and Thomas agree that a skilled and experienced winemaker will usually know what they want in a closure based on their brand characteristics, identity, price point and winery’s bottling equipment. On the other hand, newer crafters may have no idea where to begin when faced with such a vast selection of closures and options. Both Janson Capsule and Waterloo Container offer experienced, qualified customer service to provide suggestions if needed. Janson Capsules will work directly with a company’s marketing and purchasing departments to find the best closure solutions. Waterloo Container Company employs a closure specialist to ensure that the products sold will work well with each other functionally while providing consistency in brand recognition.

  Kenny Hall, Waterloo Container’s purchasing and closure specialist, told The Grapevine Magazine that Waterloo Container offers every type of closure a winemaker could need, with over 500 SKUs and over 50 million closures in stock. He said when choosing the appropriate closure for your bottle and project, attention to detail is critical. “Every closure is designed to fit with a specific bottle finish and product, so referencing closure technical data sheets is important. Taking the time to match this information with bottle drawings and finish ensures fit and performance.”

Put a Cork in It

  Cork is the traditional and most popular choice for wine closures, especially for those wines that age well. Cork is a natural and sustainable product with an innate ability to swell and form a tight seal within the wine bottle neck, thereby only allowing a minimal amount of oxygen transfer over extended periods of time. And now, thanks to modern processing, risk of the dreaded cork taint has virtually disappeared.

  When it comes to cost, natural cork runs the gamut. Punched, or high-grade natural cork, has the highest price point, while other options like an agglomerated natural cork can have the lowest. As a natural product, cork can have many variations that must be accounted for in its use as a closure.

  Synthetic cork is a popular, cost-effective alternative. It’s more predictable than natural cork when it comes to performance over the long run. However, it can include petroleum-based ingredients that may not be sustainable or recyclable and, if left in the bottle for too long, can impart a detectable aroma, according to some wine professionals.

Wine With a Twist

  “It’s true that corks are still the most requested closure amongst our customers,” said Stebbins.  “But skirted screw caps have jumped from 19% to 36% of our closure sales over the past four years. We feel that’s due to the skirted screw caps being well suited to the shorter timespan from production to consumption of popular East Coast varietals, including Rieslings and other sweeter white varietals.”

  Similar opinions prevail on the West Coast, with Thomas telling The Grapevine Magazine that, “Screwcaps are great for spirits but also increasingly popular for white wines like Sauvignon Blanc and the lighter Pinot Noirs. Oregon winemakers are using them more and more frequently.”

  “Screw capsules provide immediate ease of opening and reclosing capability,” said Stebbins. “With standard liners, both taste and freshness are preserved, so the wine you put in is pretty much the wine you pour out. The roll-on pilfer proof short or longer skirted styles require machine application, meaning there could be additional financial investment and technical expertise required, either in-house or by way of a mobile bottler. To help offset this, Waterloo Container offers a skirted option that can be hand-applied, which is a great fit for smaller craft winemakers.”

Bar Top

  Bar tops – sometimes referred to as t-tops – offer the widest range of customization options, including top and shank materials. Waterloo Container offers newer co-injected synthetic styles to alleviate the known problems of break-offs and general difficulty removing them from the bottle. Bar tops are gaining popularity for specialty wine products and allow for machine or hand application. They are generally easy to open and repeatedly reseal the bottle, making them a popular choice in spirit packaging.

Capsules

  “Polylam capsules are the most commonly requested closure and are suitable for any type of wine, including premium wines,” said Thomas. “They are a cost-effective alternative when needed, or when the winemaker just wants to upscale from the PVC capsules… Tin capsules are better suited for the super-premium or exclusive wines that generally use heavier bottles and higher-end packaging. Tin is a great choice because of its unique texture and soft feel. Tin capsules bring a very elegant and expensive look to your wine bottle.”

  “As an East Coast distributor, we get more requests for PVC heat shrink capsules than for Polylam or tin capsules,” said Stebbins. “This may be reflective of the typical price points seen here in the east as compared to the west. Other bottle closure treatments, like heat shrink PVC capsules, are an easy and economical way to finish off the tops of wine bottles while helping the product get noticed on the shelf and provide tamper evidence. Sizing is important in these situations because the tear tabs used in these applications must be properly aligned to fit the type of bottle finish and closure combination.”

Sustainability and Recyclability

  Stebbins told The Grapevine Magazine that Waterloo Container has seen an uptick in environmentally conscious clients requesting specific information on its products’ recyclability and sustainability. Unfortunately, while the technology is available to recycle almost any type of closure, the reality is that the infrastructure to recycle is not readily available to all in the United States. All major vendors make claims and provide reports regarding the sustainability and recyclability rates of their products on their websites, and depending on different factors, those rates vary. For example, Amcor STELVIN screw caps boast an 80% recycling rate in Germany, while Europe’s overall rate is reported at only 40%.

  Janson Capsules offers fully recyclable products, including their E-Cap, manufactured from aluminum-based materials. Thomas said that more wineries are starting to consider this type of product based on market demand. They are an excellent alternative to the standard Polylam capsules that contain a layer of polyethylene, a non-recyclable component. Their tin capsules are fully recyclable and printed using water-based materials.

Thoughts, Trends and Innovations

  Thomas told The Grapevine Magazine that Janson Capsules is currently working on innovations in capsules and closures. Without getting too specific, they are looking to align their products with new technologies, environmental protection standards and new ways to consume wines.

  “I really believe that due to the unprecedented COVID-19 situation we are all living through, the way the wine closure industry has to operate to succeed will be tied to the local, sustainable and surely the digital world,” said Thomas. “Having full access to great support with excellent technical knowledge when needed is extremely important to our customers. We have to adapt to our customer’s needs and demands while also matching the bottle mold evolution and bottling equipment technologies.”

  Stebbins said they see a strong trend towards customization. “At trade shows, the first thing potential customers want is to be different. In an industry where the containers themselves are often a commodity, the closure becomes an effective way to stand out or differentiate your product. There is increased interest in shape, texture and customization, including changing from a simple one-color logo to more elaborate multi-color decorating and embossing. Enhancements to the actual bottle finish that work with the closure are drawing interest as well. For example, we have a new lightweight Bordeaux bottle that is made in America and features an innovative accessory bead that is added to the finish. The bead facilitates a more accurate screw cap closure application and helps to prevent pull-offs.”  Affordability and versatility have become even more critical in this unprecedented year.

“Because of the COVID-19 situation, we saw an expanded need to provide inexpensive closure options of all types to home winemakers, smaller wineries and even for the hand sanitizer market,” said Stebbins. “As a result, we now stock several new closure solutions, including a hand-applied skirted 30X60 mm capsule and some tamper-evident continuous thread options. These allow smaller producers to offer the convenience of resealable closures at more manageable, lower minimum order quantities without the increased cost of additional application equipment.”

  “The bottom line is one size does not fit all,” said Stebbins. “The bottle finish and contents will ultimately determine what your closure options are. It is important to procure closures from a reputable and knowledgeable vendor who can ensure this compatibility to protect your investment.”

Modern Approaches to Alternative Wine Packaging

Cyndi
wine packaging machine

By: Alyssa L. Ochs 

Long gone are the days when wine only came in standard bottles. For some traditionalists, this is a tragedy, but for many wine enthusiasts, it’s an exciting time for innovation in the industry.

  Modern technology has paved the way for wine to now be packaged in cans, boxes, bags and pouches. There are pros and cons to each packaging method, yet single-serve portability is a top priority among wine consumers, driving growth in the alternative packaging industry.

Types of Alternative Wine Packaging

  One of the main bottle alternatives on the market today is wine in cans. Aluminum cans are a popular option because they are recyclable, easy for on-the-go consumption and offer a single-serving option for enjoying wine. Wine boxes, also known as bag-in-the-box, feature an air-tight bladder inside a paperboard container. This type of packaging is cost-efficient for the manufacturer and the consumer, and it’s easy to pour and reuse for multiple wine-drinking sessions.

  Tetra paks are mostly made from recyclable materials, making them an eco-friendly wine choice with air-tight seals for long-lasting wine. Another option is lighter-weight glass bottles, which reduce the thickness of the glass wall and remove the indentation from the bottom of the bottle. Flat wine bottles were first introduced as novelty gifts, but they are also viable alternatives for taking up less space, reducing transportation costs and reducing a wine producer’s carbon emissions.

  Meanwhile, kegged wine has been growing in popularity as an on-premises option and offers by-the-glass pours at restaurants and bars. The next wave of wine products is getting even more creative with wine packaged in tubes, triangular-shaped bottles and other eye-catching specialty shapes that capture the imagination. 

Pros & Cons of Packaging Options

  As with all aspects of winemaking, there are pros and cons to the various wine packaging options available to wineries today. Many alternatives weigh less, don’t break as easily and produce fewer greenhouse gases than traditional bottles. Alternative packaging allows for more experimentation opportunities for wineries curious to try creative flavor profiles in single-serve portions.

  Tim Orr, the president of TORR Industries in Redding, California, told The Grapevine Magazine that some alternative packages are beneficial because they offer more advertising space than glass bottles, which only have a few inches of space for branding. Founded in 2007, the TORR Industries management team has over 50 years of combined experience in filling bag-in-box, stand-up pouches and shelf-stable extended shelf-life food products, as well as bulk aseptic packaging. TORR designs and manufactures wine filling, packaging and dispensing solutions in its Northern California facility.

  Alternative packaging options typically succeed better than bottles at allowing the same container of wine to be enjoyed over multiple days. However, wine may not age as well in alternative containers, which is a problem for certain types of wine. Glass bottles excel at keeping oxygen and microbes out of the wine and preventing it from going stale or growing mold while retaining the best flavor. Although attitudes are changing, the perception still exists that wine in alternative packaging is of lower quality than wine in glass bottles.

Cost Considerations

  Although style is important when choosing wine packaging, the ultimate decision often comes down to cost. Bag-in-box wine is economical, and by putting more premium wine into boxes, a producer’s profit margin may increase. Transportation costs can be lower for alternative packaging because lighter loads without heavy glass are cheaper to carry, especially when shipping wine across the country or overseas.

  However, packaging costs may increase if a winery chooses to switch gears entirely and buy expensive equipment to accommodate new packaging strategies. This is especially true if a winery is still in the experimental phase of package design and isn’t yet sure if the packaging style will resonate with consumers or maximize product quality over time.

Life Expectancy Considerations

  The amount of time that wine stays fresh should always be a top priority when choosing a packaging strategy. Glass bottles are known for their long shelf life and can last for decades because glass does not chemically react with the wine.

  Wine packaged in cans should have adequate acidity to maintain the freshness of flavors and help it last longer. There have been considerable strides in technological improvements for both oxygen control and bag films. Ten years ago, consumers would often find bag-in-box wine to have inconsistent taste and quality. However, this is hardly a concern today, thanks to the high-tech fillers propelling this industry into the future. 

Machinery for Different Packaging Strategies

When a winery decides to change packaging types, it often needs to upgrade its equipment to handle new demands or outsource packaging to a specialized company. The machinery required to make a switch may include canning machines and filling equipment.

  Delkor Systems has recently developed cutting-edge packaging machinery for the wine industry – Delkor’s Performance Case Packer with patented Intelligent Synchronization technology. Based in St. Paul, Minnesota, Delkor makes case packers for bottled, pouched, canned and bag-in-box wine, as well as cartoning machines for canned wine and a bag-in-box closing machine. The Intelligent Synchronization equipment design is compact and new to the wine industry, offering two useful applications: the automatic cartoning of eight-ounce wine cans into four- and six-count paperboard cartons, and case packing of the paperboard cartons into boxes for shipment.

  “It controls product flow and pattern building, effectively reducing machine footprint, costs and changeover time,” Dale Andersen, the president and CEO of Delkor, told The Grapevine Magazine. “With Intelligent Synchronization, Delkor has been able to reduce the footprint of its wine can carton loader or wine can carton case packer to just a six-by-six-foot frame and reduce machine changeover to less than eight minutes.”

  Andersen said that this technology would eventually replace current case packer designs because it does electronically what many machines currently to do mechanically. This “smart machine” eliminates guide work and other machine points that cause both container and label damage, so it is natural for use in the wine industry. In 2021, Delkor will be introducing a compact Performance Case Packer for wine bottles and one for bottle unloading – both with its patented Intelligent Synchronization.

Following What’s In-demand

  While weighing the options of packaging types to use for wine, learn about what’s most in-demand with consumers right now and why. Currently, top priorities among wine drinkers, especially the younger generation, are portability, on-the-go usage and discretion. Alternative containers can also offer the benefits of being less breakable and having a different type of wine for your second glass instead of committing to an entire bottle of the same wine.

  Bag-in-box wine has become increasingly popular during the COVID-19 pandemic because of budget concerns and more time spent at home rather than going out to wineries and bars. Even before this, bag-in-box wine gained significant traction among younger drinkers between the ages of 21 and 35. Another consumer demand is a heightened focus on environmental sustainability, which can be addressed through packaging design.

Wine Packaging Trends

  It may be essential to observe wine trends when reconsidering how to package wine. Right now, there is a movement to make wine more affordable and accessible to new consumers – often younger consumers who have different standards and preferences than wine drinkers who have been enjoying bottles for decades.

  There is also a trend of putting higher quality wine into alternative forms of packaging, hoping to change the perception of non-bottled wine and open up people’s minds about what makes a good wine. These higher-quality offerings, paired with more creative marketing and advertising strategies, catch new consumers’ attention. That attention then propels alternative packaging products forward and opens up the market for new packaging players with innovative ideas.

  Orr of TORR Industries has noticed a huge growth in the bag-in-box wine industry and much more demand since the start of the COVID-19 pandemic. He said that canned wine has seen a growth curve of around 1%, where bag-in-box packaging is closer to 20% of wine sales, up from approximately 15% a couple of years ago.

  “I attribute this to the fact that the stigma of boxed wine is going away since this is a great option for not having to drink the whole bottle because coronavirus is leading to more home consumption and because of better techniques to control the oxygen.”

  Orr said that his company is building and selling equipment to top wineries because it injects nitrogen and vacuums the bag to purge the oxygen before filling. In this way, his machinery gets oxygen levels down under 2% rather than the 20% standard that this packaging used to have with older technology.

  Andersen of Delkor has observed that the movement of wine into cans is a significant change in the industry. He and Ryan Broughton, Delkor’s sales manager, told The Grapevine Magazine that what their customers in the beverage industry are talking about most is single-serve. Cans offer an alternative for a new class of wine consumers not focused on the quality aspects of glass bottles, but more on convenience. According to Andersen, “one could make the argument that this is a totally new market opportunity, so it is making the circle bigger rather than taking market share away from current wine sales.”

Choosing the Right Packaging

  Each type of wine packaging has its benefits, so the choice largely comes down to the winery’s goals, budget and target consumer. However, different styles of wines do better in various types of packaging. For example, some wineries keep sparkling wine and aged red wines in bottles but put experimental and mid-range wines into alternative packaging to test it with their customer base. 

  To choose the right packaging for your wine, assess current customers as well as those you want to attract in the future. Consider how much and how often you ship wine to determine if alternative packaging can help save on shipping and transportation. Determine per-unit costs and ensure that new production costs will fit within your budget. Also, think about how a change in wine packaging may impact the perception of the winery’s brand. If using multiple types of packaging, it may be a good idea to keep a few things consistent – such as the logo or colors – across all forms, to keep your brand recognizable.

  Orr of TORR Industries would advise a winery looking to try alternative packaging to “understand the market, look at the viability of bag-in-box, and look at the growth curve.” His other piece of advice is to find a winery that does co-packing and set up a small contract packing arrangement to test out alternative packaging for your winery.

  For wineries looking to try packaging alternatives to glass for the first time, Broughton of Delkor suggested “looking for a system that has good capability, that can adapt to ever-changing needs and that can produce small pack and large pack counts.” Delkor’s Andersen suggested having a machine that can handle both traditional bottles and cans for single-serve. “Have a plan to address single-serve because demand is increasing, and your machinery must be able to keep up with this.”

British Columbia Wine Industry Hit Hard by COVID-19

Cyndi
vineyard staff plucking leaves

By: Briana Doyle

Canadian wine consumers are buying more wine than ever, yet a recent industry survey in Brit-ish Columbia indicates that the province’s winemakers are not seeing the benefits.

  Early in the pandemic, British Columbia liquor stores reported a 40% spike in sales. According to a Capital Daily report, in March and April, British Columbians spent an extra $90 million on alcohol, about $29 million of that spent on wine alone.

  However, according to a survey conducted by the British Columbia Wine Institute in collabora-tion with the British Columbia Grapegrowers’ Association and Leger Marketing, 83% of British Columbia wineries and grape growers have been negatively impacted by COVID-19.

  The survey found one in 10 British Columbia wineries and grape growers at risk of closing due to COVID-19, with 58% seeing a revenue loss and 55% having reduced access to customers.

  “For growers, access to labor is always an issue, and with border closures and quarantine reg-ulations, this has been more challenging than ever,” said John Bayley, viticulturist at Blasted Church Vineyards and Board President of BCGA. “We have incurred greater expenses this year in maintaining the labor support we rely on from our colleagues from Mexico.”

  While 41% of British Columbia wineries reported an increase in winery direct sales, all distribu-tion channels have seen a decrease in sales due to the pandemic, particularly hospitality at 69%, followed by agency (43%) and liquor retail stores (41%).

  Financially, 66% of wineries believe it will take them one to four years to recover, with 35% ex-pecting their revenue to decline between 21% and 50% over the next six months.

  “I think it will take some time for the industry to see the full effects of COVID-19. Obviously for smaller wineries who depend on restaurant and wine shop sales – and many of them do – they’re going to feel the effects more immediately. But for others, it may take until the end of the season to fully understand the effects industry-wide,” said Kathy Malone, winemaker, Hillside Winery.

  As part of an effort to help the wine and hospitality industry recover from pandemic-related losses, industry organizations are pulling out all the stops to encourage British Columbians to play tourist in their own province.

  In October, the BCWI launched British Columbia Wine Harvest Month to draw attention to the industry’s importance to the province. The announcement was made in partnership with Desti-nation British Columbia, the British Columbia Hotel Association, British Columbia Restaurant and Food Association, British Columbia Dairy Association and British Columbia Seafood Alli-ance.

  “2020 has been like no other. Our industries were quick to respond and adapt during an un-predictable time, but we’re not out of the woods yet,” said Miles Prodan, President and CEO of BCWI. “This campaign brings local industry together to strengthen the collective and work col-laboratively to bolster local support and celebrate some of the finest this province has to offer.”

  Meanwhile, a new website and app, Wines of British Columbia Explorer (https://winebc.com/explorer/), aims to steer “staycationers” and road trippers to explore Brit-ish Columbia wine country this fall.

  The website and app include wine route itineraries and detailed information on more than 200 British Columbia wineries, including new hours and protocols to protect customers during the pandemic, whether there are picnic spots on-site, curated lists of specialty wines, organic vineyards, and if visitors are welcome to bring pets. It also includes a “taste test” tool to help customers find British Columbia wines that suit their palate.

  “This campaign really aims to bring our local wine, hospitality and tourism partners together to ensure a strong future for all of us,” said Kim Barnes, Marketing Director of BCWI. “We know many British Columbia industries are feeling the effects of 2020, and we want to keep the ‘support local’ message top of mind as we head into the winter season.”

  Throughout October, campaign promotional materials were distributed via local British Colum-bia wineries, hotels and restaurants, British Columbia liquor stores and all Wines of British Co-lumbia stores located in select Save-On-Foods. Digital and broadcast components include ra-dio spots, a YouTube series with cooking demos, ZOOM videos from the vineyard, blogs, har-vest wine pairings and curated wine routes, all aimed at promoting local wine, food and travel.

  Despite July sales reports showing overall growth in the wine category at 5.01% (up from 4.73% in June 2020), British Columbia VQA market share continues to trend lower than the All Imports market share – 18.81% compared to 19.13% last year.

  “As winery inventories begin to grow with, by all early indications, a great 2020 vintage starting to come in, this trend is worrisome for our industry,” said Prodan. “It highlights the need for the continued support of the British Columbia wine industry, not just from consumers, but in sound policies from all levels of government.”

  Only in Canada: Taco Bell launches Jalapeño wine; plus glamping in a wine barrel

  Now for a couple of quirky Canadian news items to leaven the doom & gloom: Taco Bell has launched its own brand of wine, which is only available in Canada, and an Ontario couple is getting media attention for their unique Airbnb listing: a converted wine barrel floating in a river.

  The well-known fast-food brand introduced its Jalapeño Noir in September, promoting it as the perfect complement to a new menu item: the Toasted Cheesy Chalupa, a type of taco made with fried bread instead of the typical soft or crunchy shell. According to Taco Bell Canada, the wine has notes of wild strawberry, cherry and beetroot.

  The Jalapeño Noir was sold only in Ontario via the Taco Bell website, and from selected loca-tions in Hamilton and Toronto via Uber Eats. The first two batches of the limited edition red wine, produced by Queenston Mile Vineyard in Ontario, quickly sold out. A third and final re-stock was released at the beginning of October.

  As for that wine barrel B&B, it’s located in Essex, Ontario, close to the Detroit border. The unu-sual one-bedroom houseboat is a converted red cedar wine barrel and is moored in the heart of wine country.

  The Airbnb listing notes the floating cabin is just minutes from several major wineries and fea-tures views of lush vineyards as well as an outdoor tiki bar-style kitchen, complete with a sink made from a whisky barrel. The barrel rents for $120 CDN per night. The next available book-ings are in spring 2021. 

The Mad Scientists of the Niagara Peninsula

Cyndi
scientist pouring liquid to an erlenmeyer flask

By: Alyssa Andres

Many wine regions of the world are known for producing a certain style of wine. In many Old World wine regions, they are bound by laws as well as centuries of tradition to grow only particular grapes and use specific techniques in their vineyard and winery. In Ontario, Canada, winemakers have the complete freedom to play around with their winemaking styles and manipulate their grapes as they see fit. From the varietals they grow to the way they ferment and age their wines, nothing is off-limits. As an extremely youthful winemaking region, Ontario is still discovering what it can do. In the Niagara Peninsula, there are a few winemakers determined to push it to the next level.

Unexpected

At Big Head Wines, father and son duo, Andrzej and Jakub Lipinski, are two winemakers that have been evolving and growing their practices over the past decade in the Niagara-on-the-Lake sub-region. As a family that dedicates the majority of their time to their winery, they started experimenting with different winemaking styles and techniques as a way to keep interested in wine. Jakub says he was initially hesitant to try different techniques for the general public but would play around for friends and family to see what kind of results he could yield with various out-of-the-box methods. After several years of experimentation, the Lipinskis learned that these methods created wines with more character and interest than the average bottle.

  Big Head Wines started out producing big Bordeaux style blends but has since introduced the Big Head Raw Series to their line of wines. The Raw series uses minimal intervention techniques, wild fermentation, whole cluster carbonic maceration, and is bottled completely unfiltered. The Raw White series was the first to be released in 2016 and featured three single varietal offerings: Pinot Gris, Savagnin and Chenin Blanc. They could not keep the bottles on the shelves. A year later, the Big Head Raw Red series was released and featured Syrah, Petit Verdot and Pinot Noir in the same style. Again these wines were met with rave reviews. The Raw Series has serious weight and depth but also the potential to develop beautifully over time. The flavors in each bottle are complex and often unexpected, and these nuances will come out even more as they age.

  Today, the father and son are using carbonic maceration on just about everything in the winery, from Gewurtztraminer to Malbec. They believe this technique unlocks the full potential of the grapes, specifically when it comes to aromatics. Jakub Lipinski says he has not had a bad experience using carbonic on any grape varietal – red or white – and will continue to explore the possibilities within that style of winemaking. Their latest Big Head Raw release is a Cabernet Sauvignon using a variation of this technique. While the wine is low intervention, the process of producing it is still incredibly labor-intensive. The Cabernet grapes are sun-dried appassimento-style before undergoing carbonic maceration for ten days. They are then pumped over for two weeks before being destemmed. After being destemmed, the skins are added back into the wine and aged in clay for five months before being bottled unfiltered. The result is a wine with much more depth and complexity than the typical big, overly oaked Cabernets that have become so common in the liquor stores.

  The Lipinskis believe the market is changing, and more and more of their audience is interested in something new and different. Some people are interested in a Chardonnay with notes of gunpowder and matchstick or a Pinot Gris that drinks more like a Pinot Noir. Wine lovers are becoming more open to alternative notes and more interested in the process behind the winemaking.

Unbound

  Head winemaker, Ryan Corrigan, of Rosewood Estates Winery, also believes that people want to hear the story behind the wine and that North Americans are no longer as brand loyal as they used to be. Many wine lovers are constantly looking for the newest, coolest thing. That is why he’s decided to turn his winery into a full-out research and development lab where he can develop new styles, flavors and textures in Ontario wine that no one has ever tasted before.

  Winemaker at Rosewood since 2016, Corrigan takes a traditional approach in his winemaking with the intention of getting to the root, or “the heart,” of each varietal. He is transparent in his methods and as mindful as possible in his practices. While his craft approach to winemaking is not new, it is something that has been neglected by many modern-day winemakers, who instead opt for high volume and quick production. For Corrigan, patience is a virtue. He will literally take years to create some of his wines, playing around with and combining different techniques to see how they affect the final product’s flavor and aroma.

  Unbound by any rules or traditions, Corrigan creates everything from skin contact white wines to meads using honey from the winery’s extensive apiary program. The winemaker-meets-mad-scientist is also concocting a Vermouth and Amaro using different types of oak barrels, and he is experimenting with co-fermenting honey with wine and apple cider. The results are a huge hit. The skin contact white, Pure Imagination, sold out three weeks after being released. Rosewood’s 2019 Pet Nat, Nebulous, sold out in 15 minutes and has inspired Corrigan to create a white Pet Nat using Muscat grapes. Their 2019 Flora Rosé was also hugely successful.

  The time and care Corrigan puts into creating his wine has definitely paid off. The winery has a huge following awaiting his newest releases. One of these releases will be a sparkling wine that uses the solera method on the base wine to add a different layer of texture and body as well as oxidative notes reminiscent of sherry. Corrigan is also playing around with oxidative effects in red wines. He is trying to uncover the true potential of the grapes.

  As a very young and emerging wine region, Corrigan believes Ontario has an opportunity to become world-class, offering never before seen flavors. By manipulating the grapes using a multitude of methods, he intends to discover everything that Ontario grapes are capable of and how to represent that best.

Unique

  Another winemaker creating unique representations of Niagara grapes is Ilya Senchuk of Leaning Post Winery in Stoney Creek, Ontario. The long-time winemaker and his wife, Nadia, bought their property in 2011 and has since been creating wine with the goal of expressing the unique terroir of the region. He uses minimal intervention techniques and traditional methods of winemaking to allow this terroir to shine.

  Senchuk has taken this concept one step further with his line of wines aptly titled Freaks & Geeks. This series is as odd as it is unexpected. For The Geek Riesling, Senchuk uses the solera method on Riesling grapes to create a robust expression of the typically delicate grape. Currently in its fourth vintage, 2017’s The Geek rested for 22 months on the lees from all three previous vintages before being racked and bottled unfined and unfiltered. The resulting wine is a combination of stone fruit, mineral and flint with a creamy texture and complex aroma.

  The Freak Pinot Noir is an entirely sulfite-free wine using 100% whole clusters. The grapes are hand-picked, hand-sorted and hand-punched down twice a day for three and a half weeks. The wine is then transferred to barrel, where it undergoes spontaneous malolactic fermentation and stays for 10 months before a single racking and bottling without fining or filtration. The Freak has distinct earthy notes combined with dark red fruit and a lengthy finish. These bottles are only two from Senchuk’s experimental series that draw wine “geeks” to the tasting room each day. Not available in the liquor store, guests come from far and wide to visit the retail location to get their hands on these bottles.

  Wine lovers and connoisseurs are jumping on these funky new releases and encouraging the Ontario wine industry to continue to develop in this way. Palates are changing, and flavors like pencil shavings, tar and mushroom are becoming welcomed additions to a bottle. Many consumers are moving toward more natural styles of wine that use fewer sulfites and less human intervention. Ontario’s newest winemakers are taking advantage of this changing market and taking the opportunity to explore the possibilities of winemaking within the region. Without anything holding them back, winemakers like Senchuk, Corrigan and the Lipinskis can make decisions in their wineries that would be considered by some to be unorthodox. But, by experimenting with new varietals, techniques and combinations, these winemakers produce examples of wine that have never been seen before. While many winemaking regions continue to play it safe and pump out big, juicy reds and light, crisp whites, expect to see the unexpected coming out of Ontario.

Ashley Trout: Blazing the Trail for Women Winemakers

Cyndi
Ashley Trout holding a wine glass
Ashley Trout, Flying Trout Wines

By: Nan McCreary

If anyone can rightfully boast about their place on Wine Enthusiast Magazine’s 2018 “Top 40 under 40,” it’s Walla Walla, Washington winemaker and social justice advocate, Ashley Trout. As an integral part of the Washington wine industry since 1999, she has started three wineries, including a non-profit winery for better access to health care for vineyard and cellar workers. With expertise that comes from working eight harvests in Argentina, she is putting her stamp on wines created by a new generation of women winemakers.

  Trout’s journey on the wine trail began when, at age 18, she chose to use college as an opportunity to do something different, so she gave up big-city living (Washington D.C. and Los Angeles) and landed at Whitman College in the small town of Walla Walla. “I’ve always been a ‘when in Rome, do as the Romans do’ kind of person,” Trout told The Grapevine Magazine, “so I took a part-time job at Reininger Winery. It was right at the inception of the Washington wine industry, and there were lots of us in our 20s who would do any and every job. We’d show up at midnight, or on Saturdays, we’d pack boxes, and if we didn’t know how to drive a forklift, we’d figure it out. It was a quintessential example of being at the right place at the right time.”

  She worked at Reininger Winery for eight years, and in her fifth year, had an “aha moment” that ignited her passion, and led her to where she is today. “I was in a rock-climbing accident and broke everything,” she recalled. “When I missed harvest, I realized how inappropriate it felt that other people were doing harvest, and I wasn’t harvesting with them. That’s when I really doubled down.”

  Trout began working the harvest regularly in Mendoza, Argentina, following her love of the Malbec grape. In 2006—at only 24—she opened Flying Trout Wines, named for her surname and the fact that she was flying between Argentina and Washington state.

  “I’d been in the wine industry for five or six years, and I loved everything about the job and wanted more control over the wines I was making,” she said.  “I also wanted the freedom to go to Argentina and participate in harvest and make wines there as well as here in Washington, so I just did it.”

  At Flying Trout, Trout focused on Malbec, because, she said, “It’s a wonderful grape to work with, and gives you everything you need on a silver platter—acid, color and tannins—which are the bones of what you really need for an amazing wine.” Trout sourced her grapes from top Walla Walla vineyards, which, except for altitude, have a nearly identical terroir as Mendoza.

  Trout sold Flying Trout in 2010 but stayed on as winemaker until 2013. In 2016, after a brief hiatus, she launched Brook & Bull Cellars. “I was at a point in life where I wanted to have creative control of the wine and the winemaking process and creative control over the business parts as well,” Trout told The Grapevine Magazine. “I’d had it before at Flying Trout and wanted it back.”

  At Brook & Bull, located in the rolling hills of the Walla Walla Valley, Trout produces Malbec, Chardonnay, Cabernet Franc, Cabernet Sauvignon, Petit Verdot and blends. She also makes a Provence-style Rosé from Grenache, Mourvèdre, Cinsault and Counoise grapes. Rather than start a vineyard, Trout prefers to source grapes from top vineyards in the area. “Maintaining and managing a vineyard and maintaining and managing a winery are two different skill sets,” she said. “In a vineyard, you’re dealing with mold and mildew and insects and pest and irrigation issues, and you’re dealing with biology and geology and meteorology. Within a winery, …it’s more like cooking, blending and tasting. It’s organic chemistry more than anything.”

  While she was launching Brook & Bull, Trout also started Vital Winery, which supports free, bilingual healthcare for workers. “Vital had been stuck in my head for a long time,” Trout said. “I grew up in a bilingual, bicultural home, and I did a lot of translating for grandparents who needed help with information, especially when it was medical jargon, so I understand the need.”

  Vital Winery is fully supported by donations, from grapes to bottles to corks, and all profits go into the mission, “Taking Care of Each Other.” Besides providing health care, Vital Winery raises funds for a project called “A Day at Home,” so vineyard employees potentially exposed to COVID-19 can stay home for testing without concern for the loss of daily wages. The non-profit winery has earned Trout accolades throughout the country, not just for her wines but for her services. And it is has benefited tremendously from wineries eager to donate—Trout said she turns down 30 to 100 tons of donated fruit every year, much of it from top wineries in Washington state. 

  While Brook & Bull and Vital Winery are two different types of projects, both are wineries and require the same winemaking knowledge and skills. At Vital, Trout’s wines fluctuate between which grapes and vineyards are used, changing every year. On the other hand, at Brook & Bull, Trout can count on consistency—other than what Mother Nature delivers—by using the same vineyards, the same varieties, the same rows and the same clones every year. 

  “I know what’s coming, and I can wrap my head around that and can get into an artistic zone because all those variables are taken care of,” she said. At both wineries, Trout strives for “varietally driven, nuanced and intricately balanced wines.”

In summing up her winemaking philosophy, Trout said, “I set myself up so I could say, ‘if it ain’t broke, don’t fix it.’ If you set yourself up to fight (nature, for example), you’re going to lose, and it will be a slow, painful battle.”

  In applying this philosophy, Trout sources from vineyards and varietals that excite her. To attain balance, she picks on the early side. “By picking early,” she said, “I get grapes with more acid, which have antibacterial properties, and produce wines that are more food-friendly and more balanced. Balance is a big issue for me.”

  Trout is not a big fan of oak, as she prefers to “showcase” the grapes. “Most high-end wines are slammed with oak,” she said, “but I have $40, $50 and $60 wines with almost no oak. I’ve made it my little personal mission to teach people what an amazing Cabernet Sauvignon, Cabernet Franc or Malbec tastes like without the oak band-aid covering things up.”

  While Trout has indeed received plenty of recognition as a winemaker—and a rising star among women winemakers—she continues to be committed to her craft, and to set an example to other women in the field.

  “Today, 70% of wines are purchased by women, but only 8% of winemakers are women,” she said. “And 47% of male winemakers own their own winery, while only 4% of women do. That’s a huge disconnect. I think it’s really important for women in the wine industry to stand tall and proud because there aren’t many of us. If we want the next generation to join us, we need to show that there are other women doing it, having a good time and being successful.”

  Many women are reluctant to enter the industry, Trout believes, because the work is so physically demanding. Women may also stay away, she said, because there are so few women winemakers that they assume there’s a reason and don’t consider it. While Trout said she’s never experienced sexism, she has run into age-old prejudices where people expect her to be the winemaker’s daughter or wife.

“When I’m behind the bar in the tasting room, no one ever imagines that I’m the winemaker,” she said. “They always think I’m a family member. But finally, when they get it, everyone is really excited.”

  As Trout looks back on her journey, her only regret is that she didn’t bet on herself in a bigger way. “I can see that I didn’t look hard enough for investment dollars, I didn’t hire experts and I didn’t grow. I didn’t take myself seriously as an owner of a major winery. But as a minority in the industry, and a 20-year-old, it wasn’t surprising, even if it was a mistake.”

  As for the future, Trout seems content to stay where she is. “It’s an exciting time to be in Washington now,” she said. “We still have a young and dramatic and passionate industry. We’re still filled with 20-somethings who are showing up at midnight doing whatever needs to be done, and that’s exciting. But now we have the efficacy we didn’t have when I was getting started, as the industry has been here for 15 or 20 years. It’s really the best of both worlds.”

For more information on Ashley Trout and her wines, visit… www.brookandbull.com and www.vitalwinery.com

Don’t Get Caught Off Guard During Wildfire Season: Tips For Your Winery

Cyndi
winery in front of a wine vineyard

Weather conditions and natural disasters occasionally take a toll on vineyards and other agricultural production systems. Due to climate change and recurring droughts, some of which are severe, the frequency and severity of wildfires is expected to increase. These risks highlight the need for winegrowers and winery owners to be as prepared as possible to reduce risk.

Putting Your Plan Together

  Many wineries may have already revisited their evacuation plans and filed them with their respective state agencies. Staying current of wildfire season developments can help enhance your ongoing planning and preparedness. Technology can also support your wildland fire planning and response. Additional planning resources by the American Red Cross are available at: www.redcross.org/get-help/how-to-prepare-for-emergencies/types-of-emergencies/wildfire.html

Steps to Take Before a Wildland Fire Event

•   Take a close look at your winery’s communication protocol for evacuations. Everyone should have a clear understanding of any community alarms that signal when you need to evacuate. Assign specific accountabilities to staff so everyone works collectively to achieve a positive outcome of protecting lives and property.

•   Work with your regional Forest Service to better understand emergency evacuation procedures in your area.

•   Coordinate with the American Red Cross, FEMA, and other emergency agencies to give them the locations of your evacuation sites. Invite your local fire department out as part of a fire pre-incident plan. They should be provided a map of your property, highlighting planned evacuation routes. They can also offer technical assistance to support your plan.

•   Prepare and post route maps for each site, including alternate routes. With a large fire, you may need to use “Plan B.”

•   Consider forming a cooperative agreement with another site to share resources and serve as an evacuation site.

•   Identify key equipment to be evacuated, including computers and other vital records. As part of your business continuity planning, programs should already have information backed up and stored remotely. But, in case you don’t, practice removing this equipment as part of your practice response.

•   Stock an ample supply of water and easily-prepared foods until rescue arrives.

Controlling Wildland Fire Exposures

  Wildland fires are one of the most catastrophic threats to wineries.  Protecting your structures from ignition and fire damage is an important program objective second only to an evacuation plan. Taking precautions ahead of time can help reduce the exposure of a wildfire intrusion. There are a number of proactive measures a winery can take to mitigate the property damage a wildland fire can cause.

  To support a fire adaptive community philosophy, the local fire department or authority having jurisdiction for your winery should require you to develop a landscape plan for your property. It is wise to seek their advice and incorporate their recommendations as you develop a plan specific to your location. You can learn more about fire adaptive community planning at the Fire Adaptive Communities, www.fireadapted.org

According to the NFPA 1144 – Reducing Structure Ignition Hazards from Wildland Fires, fire protection plans should address four zones around a property.

What are the Primary Threats to Property During a Wildfire?

  Research around property destruction vs. property survival in wildfires point to embers and small flames as the main way that the majority of properties ignite in wildfires. Embers are burning pieces of airborne wood and/or vegetation that can be carried more than a mile through the wind, they can cause spot fires and ignite structures, debris and other objects.

  There are methods for property owners to prepare their structures to withstand ember attacks and minimize the likelihood of flames or surface fire touching the structure or any attachments. Experiments, models and post-fire studies have shown structures ignite due to the condition of the structure and everything around it, up to 200’ from the foundation.  This is called the Structure Ignition Zone.

What is the Structure Ignition Zone?

  The concept of the structure ignition zone was developed by retired USDA Forest Service fire scientist Jack Cohen in the late 1990’s, following some breakthrough experimental research into how structures ignite due to the effects of radiant heat. 

The structure ignition zone is divided into three zones; immediate, intermediate and extended.

Immediate Zone

  The structure and the area 0-5’ from the furthest attached exterior point of the structure; defined as a non-combustible area. Science tells us this is the most important zone to take immediate action on as it is the most vulnerable to embers.

  START WITH THE STRUCTURES then move into the landscaping section of the Immediate Zone.

•    Clean roofs and gutters of dead leaves, debris and pine needles that could catch embers.

•    Replace or repair any loose or missing shingles or roof tiles to prevent ember penetration.

•    Reduce embers that could pass through vents in the eaves by installing 1/8” metal mesh screening.

•    Clean debris from exterior attic vents and install 1/8” metal mesh screening to reduce embers.

•    Repair or replace damaged or loose window screens and any broken windows. Screen or box-in areas below patios and decks with wire mesh to prevent debris and combustible materials from accumulating.

•    Move any flammable material away from wall exteriors – wooden pallets, mulch, flammable plants, leaves and needles, firewood piles – anything that can burn. Remove anything stored underneath decks or porches.

Intermediate Zone

  5-30’ from the furthest exterior point of the structure.  Landscaping/hardscaping – employing careful landscaping or creating breaks that can help influence and decrease fire behavior

•    Clear vegetation from under large stationary propane tanks.

•    Create fuel breaks with driveways, walkways/paths, patios, and decks.

•    Keep lawns and native grasses mowed to a height of 4”.

•    Remove ladder fuels (vegetation under trees) so a surface fire cannot reach the crowns. Prune trees up to 6-10’ from the ground; for shorter trees do not exceed 1/3 of the overall tree height.

•    Space trees to have a minimum of 18’ between crowns with the distance increasing with the percentage of slope.

•    Tree placement should be planned to ensure the mature canopy is no closer than 10’ to the edge of the structure.

•    Tree and shrubs in this zone should be limited to small clusters of a few each to break up the continuity of the vegetation across the landscape.

Extended Zone

  30-100’, out to 200’. Landscaping – the goal here is not to eliminate fire but to interrupt fire’s path and keep flames smaller and on the ground.

•    Dispose of heavy accumulations of ground litter/debris.

•    Remove dead plant and tree material.

•    Remove small conifers growing between mature trees.

•    Remove vegetation adjacent to storage sheds or other outbuildings within this area.

•    Trees 30 to 60’ from the structure should have at least 12’ between canopy tops.

•    Trees 60 to 100’ from the structure should have at least 6’ between the canopy tops.

If an Evacuation Becomes evident

•    If possible, identify the location and direction of the fire event. Remain cognizant that this can quickly change direction and speed.

•    Clearly explain your evacuation procedures to all that may be involved.

•    Identify special medical needs and gather emergency equipment and necessities, including trauma supplies for ready access.

•    Designate enough vehicles to evacuate everyone safely. Reinforce safe driving practices with all drivers.

•    Equip staff with emergency communications equipment (cell phones, walkie-talkies, whistles, flares, colored smoke canisters, etc.). Ask your local jurisdiction authority for suggestions.

•    Load key equipment, vital records, food, and water.

•    Ask qualified associates to disconnect and move LP gas tanks to a safer location, such as a gravel lot, or follow the manufacturer’s instructions to empty the tanks.

•    Warn firefighters of underground fuel storage or LP gas tanks before you leave.

  Making your facility fire resistant can help reduce property loss. However, keep in mind that these steps should be done only by assigned staff in conjunction with an evacuation and never require or allow staff to remain behind. Close and secure all doors and windows once combustible materials have been moved away from these openings.

•    Wet down buildings and roofs. There are commercial grade fire retardant products available that can help support your efforts to protect your property. But do your research ahead of time; and don’t let the application of these products reduce the priority of evacuating.

•    Have qualified personnel cut down trees in the fire path, bulldoze a firebreak, and cut field grass as short as possible.

•    Remove brush and dry vegetation near buildings.

Fire Evacuation – What You Need to Know

  During wildfire season, you may be forced to evacuate in a hurry. People are your first priority; to include guests, staff and firefighters. Most fire evacuations provide at least a three-hour notice; but due to the scope of your operation, you may need to do it sooner. Take proactive steps before and during an evacuation to reduce anxiety and avoid injuries. Plan, prepare and practice.

Filing Claims

  In the event your area experiences a wildfire event, it is highly likely it will not only be monitored by your insurance agent, in addition to your insurance company. Pre-loss documentation, such as video recordings and pictures of buildings, business personal property inventories, should be up to date and included as part of your evacuation materials. Working with your agent is a great resource to understand what might be necessary to help with documentation, if you should need it.

Ref:

•    NFPA 1144 – Reducing Structure Ignition Hazards from Wildland Fires, 2018 Edition. National Fire Protection Association. Quincy, MA 02169, 2018

•    Fire Adaptive Communities. Fire Adapted Communities Learning Network. www.fireadaptednetwork.org

•    Wildfire Safety. www.redcross.org/get-help/how-to-prepare-for-emergencies/types-of-emergencies/wildfire.html. © 2019 The American National Red Cross

  This document is intended for general information purposes only, and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. This document can’t be assumed to contain every acceptable safety and compliance procedures or that additional procedures might not be appropriate under the circumstances.  Markel does not guarantee that this information is or can be relied on for compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability.  This publication is not intended to be legal, underwriting, or any other type of professional advice.  Persons requiring advice should consult an independent adviser.  Markel does not guarantee any particular outcome and makes no commitment to update any information herein, or remove any items that are no longer accurate or complete.   Furthermore, Markel does not assume any liability to any person or organization for loss of damage caused by or resulting from any reliance placed on that content.

Litigation of Herbicide Drift Cases

Cyndi
a small helicopter in the sky

By: Brian D. Kaider, Esq

Chemical drift, the movement of herbicide/pesticide to unintended areas from the site of application, is a continuing problem in many farming areas, including vineyards.  In the Nov/Dec 2019 issue of The Grapevine Magazine, Judit Monis and I wrote an article (https://thegrapevinemagazine.net/2019/11/herbicide-drift-a-common-issue-affecting-vineyards-worldwide/) describing how herbicide drift affects vineyards and some of the legal causes of action that may be available to those who have suffered damage to their crops  

In the July/August issue, another article (https://thegrapevinemagazine.net/2020/06/liability-coverage-for-chemical-drift/) addressed insurance coverage for herbicide drift.  This article will focus on litigation of these cases, including the types of evidence needed to pursue or defend against the claims.  As with any legal issue, the details will vary from state to state and from case to case, depending upon the facts.  So, this article is not intended to convey legal advice, but rather to provide background information of the types of issues that may arise.

  To frame the discussion, we will discuss a hypothetical case in which Victoria is the owner of a vineyard who discovers damage to her vines, such as distorted leaves, defoliation of some vines, and damaged fruit.  She believes a neighboring farmer, Stephen, applied an herbicide to his soybean fields, which are adjacent to Victoria’s vineyard, that damaged her vines.  As a first step, Victoria should look to her own insurance policy to see if damage caused by third parties is covered.  If so, and if the policy covers the extend of the damage to her property, Victoria’s best option may be to simply file a claim with her insurance.  Assuming that not to be the case, Victoria may need to file a lawsuit.

  Before going to court, Victoria has to have a reasonable basis for alleging that Stephen is responsible for the damage to her vineyard.  So, when she speaks with her attorney, the litigation process begins with a “pre-suit” investigation.  Because the effects on her plants are likely to change over time, it is critical that Victoria start to document the damage as soon as she notices it.  She should take photographs and detailed notes about the condition of her vines, the location and extent of the damage on her property, as well as weather and environmental conditions, and she should update this information regularly.  If she has any knowledge or reason to believe that Stephen applied an herbicide to his soybean fields prior noticing the damage to her vines, she should document that information as thoroughly as possible. 

  Causation is always an issue in these cases.  Victoria will have to show that it was Stephen’s chemical application that caused the damage to her vines.  So, she should also attempt to collect data that would rule out any other cause of the damage.  For example, she should have thorough documentation of all chemicals that she has applied to her own property, she should note the location of farms other than Stephen’s in the area, whether she has seen them apply chemicals, and what the prevailing wind patterns are in her area.  She should also take samples from her vines to be sent for analysis to determine, if possible, to which herbicide(s) the vine has been exposed.

  Once the pre-suit investigation is complete and there is a reasonable basis to assert that Stephen caused the damage to her crop, Victoria’s attorney will prepare a Complaint and file it in the relevant court.  This begins the official litigation process. 

  When Stephen receives the complaint, he will have a certain amount of time to respond, typically with an Answer to the Complaint.  As his attorney begins to prepare the Answer, he will need to begin collecting information, as well, including documentation of the time, place, and manner of all chemicals he has applied to his land. 

  The vast majority of all lawsuits settle out-of-court rather than reaching trial.  While the parties may reach settlement at any time, there are three points at which it is most common.  The first is during the Complaint/Answer stage.  At this point, the parties have not expended a great deal of money on the litigation process and if it is very clear which party is in the wrong or if the damages are not substantial compared to the cost of litigating, it is often prudent to settle at this stage.  If the parties do not settle, the case will proceed to the “discovery” phase, and things get expensive very quickly.

  Discovery is the process by which the parties seek information from one another in order to evaluate the strength of the claims and defenses and to obtain evidence they will use at trial.  There are four main forms of discovery: document requests, interrogatories, requests for admission, and depositions.  Document requests, as the name suggests, is the process of asking the other party for documents or other tangible evidence.  Interrogatories are written questions that the other party has to answer in writing.  Requests for admission present a series of statements and require the other party to admit or deny the truth of those statements.  And depositions are a process where a person is placed under oath and asked questions to which they must respond on-the-spot.  There is typically a court reporter there taking a transcript of the questions and answers and they are often videotaped, as well.  All four of these processes take a tremendous amount of attorney time and are, therefore, very costly.  Discovery is often the most expensive part of a lawsuit.

  Whether the case involves negligence, strict liability, trespass, and/or nuisance, there are several issues that will almost certainly arise in discovery.  As the plaintiff, some of the materials that Victoria should request include:

•   documentation of the time, place, and manner of all chemical applications on Stephen’s land, including the type of chemical, who applied it, how it was applied, the quantity, and the environmental conditions at the time of application

•   copies of the labels and/or package inserts for the chemicals

•   information about crop buffer zones or setbacks on Stephen’s property and/or request permission to inspect the property to measure these areas 

•   a copy of any and all insurance policies that cover Stephen’s land

  In preparation of his defense, Stephen will not only want to seek information that undermines the case against him, but also evidence that supports his affirmative defenses and/or counterclaims.  He will want, for example:

•    documentation of all chemical applications on Victoria’s land

•    all information Victoria has on chemical applications by third parties not in the case

•    historical records about the health of Victoria’s vines and crop yields from prior years

•    detailed accounting of the number of allegedly affected vines and their condition

•    documentation of Victoria’s current and previous irrigation practices

•    documentation of insects or other pests on the land in current and prior years

•    any other information that could suggest that the damage to Victoria’s crops was caused by something other than Stephen’s chemical application

•    documentation of any and all tests Victoria has had conducted on her vines before or after the commencement of the litigation

  Discovery may also involve the services of experts.  Both sides may use experts to support or refute the theory that the damage to Victoria’s crops was caused by Stephen’s chemicals.  Each expert may submit a written report and is then likely to be deposed in order to try to undermine or discredit that report.

  The court will set a specific time period during which discovery must occur.  When that window closes, there is generally no more exchange of evidence between the parties.  This is the second point in which it is common to settle the case.  Each side is then in full possession of all of the evidence that may be presented.  Often it becomes clear from discovery that one side’s position has significant weaknesses and is likely to lose if the case goes to trial.  Since it will still require a significant investment of time and money to see the case to the end, it makes sense in that instance to reach settlement between the parties.

  If again the parties do not settle, they will begin to prepare for trial.  Typically, this involves a variety of written motions asking the court to rule on certain issues in the case.  There may be summary judgment motions requesting that the court rule in a party’s favor as a matter of law.  One or more parties may file evidentiary motions seeking to exclude certain information from the judge or jury’s consideration.  There are also many procedural issues for the court to decide, such as what instructions will be given to the jury, how much time each party will be allowed to present its case, etc.  Depending upon the outcome of these various issues, a third opportunity to settle the case often presents itself just before trial.  For example, if the court rules that a key piece of one party’s evidence is inadmissible, that party may be more inclined to throw in the towel.

  Of course, if the parties still do not settle, the case will then go to trial.  Litigation is not to be entered into lightly.  The costs for each party to take a case all the way to trial will almost certainly reach six figures and, for more complicated matters, could reach seven. 

  As always an ounce of prevention is worth a pound of cure.  If you are applying herbicides to your property, there are several precautions that can help keep you from affecting neighboring properties and exposing yourself to legal liability.  First, examine the surrounding properties to identify potentially vulnerable crops.  Some states even have listings of vulnerable crops that may help guide your choices.  Second, make sure you fully understand the chemicals you are applying and what crops may be adversely affected.  The University of Kentucky has a great resource website to cross reference herbicides, what weeds they affect, and which crops are vulnerable or resistant to the herbicide (https://www.uky.edu/Ag/Horticulture/masabni/xreflist.htm).  Third, when applying chemicals, be sure to follow the manufacturer’s instructions to the letter and document everything, including date, time, volume of chemical, manner of application, and environmental conditions.

  Brian Kaider is a principal of KaiderLaw, an intellectual property law firm with extensive experience in the craft beverage industry.  He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation. 

For more information please email or call…bkaider@kaiderlaw.com

(240) 308-8032

Understanding the Domino Effect of the European Wine Tariffs

Cyndi
finger pushing euro block

By: Tracey L. Kelley

At press time, the Office of the United States Trade Representative is deciding the revised outcome of a controversial decision from 2019: an increase in import tariffs for European wines by 25%. This action is part of a World Trade Organization judgment against the European Union to end subsidies granted to aerospace giant Airbus. The USTR issued the tariff hike in response to what it believed to be an unfair disadvantage to U.S.-based competitor Boeing.

  In February 2020, the USTR announced it wouldn’t raise European wine tariffs to 100%, but for the upcoming review, it’s unclear if last year’s decision will be upheld, or if those WTO tariffs will shift to other European products. 

  To provide a more tailored scope of the issue, The Grapevine Magazine talked with Benjamin Aneff, president of the U.S. Wine Trade Alliance and managing partner of Tribeca Wine Merchants in New York City; and Eric Faber, chief operating officer of Cutting Edge Solutions in Cincinnati, a wine import and distribution business.

Why the Tariffs Create Conflict

  The Grapevine Magazine (GV): Let’s break down the issue for the layperson: what does U.S. and European wine have to do with Airbus and Boeing?

  Benjamin Aneff (BA): Great question. Nothing. Unfortunately, the USTR has decided to put large tariffs on most wines from the EU because of the dispute involving Airbus and Boeing. It’s incredibly unfortunate, given that these tariffs do roughly four times the economic damage to U.S. businesses than they do their targets overseas. They’re back-firing and hurting mostly small, family-owned businesses in the U.S.

  Eric Faber (EF): I’ve heard the arguments that these tariffs protect American jobs, that people can just buy domestic wines instead of European. In some cases, this may be true, but to believe this about the wine industry shows a complete lack of understanding into how our industry uniquely works and how it’s connected. These connections exist based on an industry that is among the most regulated in the U.S. Companies shouldn’t be asked to change their business model because of an international trade dispute of an unrelated industry.

  The truth is that these tariffs may cause job losses and business closures in Europe, but they will cause job losses for the American small businesses who rely on these wines for their livelihood. Ambassador Robert E. Lighthizer, the USTR, can try to tell us it will simply lead to new American jobs, but that only shows his lack of knowledge about our industry.

  It’s an industry that—unlike Boeing and Airbus—has always paid its fair share of taxes. In fact, the regulation of alcohol means we pay more than most businesses. We don’t get the tax breaks that massive companies like Boeing, Amazon, Apple and others enjoy. Taxes on the alcohol industry help provide billions of dollars to state and local governments. And we’re more than happy to do so, but we shouldn’t be burdened as a result of the poor practices of two of the largest companies on the planet.

  Airbus has recently offered a solution to this entire dispute, and it’s equivalent to the changes made in regard to Boeing. If the goal is to punish Airbus for its misgivings, then punish that industry. But leave the lives of millions of hard-working Americans who aren’t affiliated out of it.

  GV: What would be the direct impact of the 25% tariff increase on small- to medium-sized producers/vintners, and what tangible change happens for them if it’s defeated?

  (BA): Well, ending these tariffs would certainly help small- to medium-sized producers in the U.S., particularly producers looking for distributors that rely on this access to market. These are the companies that actually make sure those small producers in, say, Oregon or California, can make it to the shelf of a wine store or get poured in a restaurant in Chicago, Dallas or New York.

  When distributors are having trouble financially—which they are now due to the tariffs—it’s much harder for them to take the risk of bringing on a new U.S. producer, which generally are unknown and require time and capital investments from distributors. It’s less clear how it helps producers in, say, France.

  There’s pre-pandemic data from the Global Trade Atlas that showed, despite a huge drop in wine exports from France to the U.S. after the enactment of the tariffs, the overall wine exports from France actually grew. In a nutshell, they sold their wine elsewhere. This is just one of the reasons why these tariffs are such a bad idea. They do significantly more damage to the U.S., and they’re incredibly unlikely to influence the EU to change behavior.

  (EF): Should the tariff be justifiably rolled back, things will mostly go back to normal. I say “mostly” because the pandemic has its own role to play in our industry, which adds to the need for the tariffs to be lifted.

  The European wineries we work with love the American wine market and experiencing the amazing wine and restaurant culture so many Americans have worked hard to create. Right now, they’re facing difficult choices about where to sell their products and how to maintain their businesses in the face of tariffs. I think it’s important for Americans to know that the effect on European wineries isn’t money lost from paying the tariffs—because American businesses pay them. It’s from lost sales due to price increases and importers downsizing or going out of business.

  From a larger view, you don’t have to look farther back into our history than the Smoot-Hawley Act of 1930 to see the negative effects tariffs can have on our own economy and the global economy we’re part of. It turned a difficult recession into the Great Depression. It set people back 20 years and created a “lost generation” across the world. These tariffs will harm people across the globe, so by lifting them, we give small businesses—specifically here at home—the opportunity to be successful, experience growth and create jobs.  

The Domino Effect

  GV: As an example, how does an import/distribution company balance its portfolio to include both international and U.S. wine products?

  (EF): We strive to have a portfolio that represents top producers from around the world, specifically boutique producers that fit our model in terms of quality and price point. Domestic wines are the backbone of our portfolio. 

  Like most small distributors, it’s important to have a good mix of products from around the world so we can provide our accounts with a wide variety of options. Domestic wines are certainly a large part of this, and the balance is largely driven by the demands of our customers and the wine-buying public. For us to be successful, we work with producers that we believe in and that our customers have a desire to purchase. While we have very strict standards for the producers we add to our portfolio, we’re ultimately driven by the market.

  The other part of this is profitability. We typically work on lower margins on domestic wines than we do on imported wines, specifically the wines we import ourselves. The slightly-higher margins we make on European wines allow us to keep our prices on our domestic portfolio lower. This is commonplace for most companies in our industry.

  GV: What type of trickle-down effect does the tariff issue have?

  EF: The tariff has an enormous impact on importers and distributors. Many people who argue the tariffs are a penalty on the producers, or the countries on which they have been levied, are simply wrong. We pay the tariffs—not the producers and not the EU.

  A 25% tariff means prices on those products have to go up for importers and distributors to maintain their ability to function. In a state like Ohio, for example, we’re legally required to have a certain margin to our accounts to maintain state tax revenue. We legally can’t make less on the wines, so we have to charge more. This means our retailers and restaurants must raise their prices to the consumer.

  While this may not be the case in every state, no industry could suddenly take a loss of 25% or even 15% of its margin and still be successful. How do people pay employees if they don’t make any money on the products they sell?

  In terms of how this affects domestic producers, the biggest issue outside of distribution is money. Our industry works on “terms”—meaning, we pay for our products typically 30 days after receiving them. This model has been set for decades. But with tariffs, they’re paid as the product clears customs. This creates a significant problem in terms of cash flow.

  So if we’re typically paying a few thousand dollars to clear product into the country, and suddenly have to pay upwards of $25,000, that depletes our bank account in a way our long-standing model wasn’t prepared for and makes it more difficult to pay our domestic suppliers on time.

  We also have to pay our employees, our bills and our taxes. If it takes longer for our domestic partners to get paid, this cash flow problem moves on to them, then to their vendors.

  GV: If certain import relationships fail, do fewer distributors mean fewer channels of retail and restaurant opportunities for U.S. products? Why?

  EF: That’s an excellent question and raises one of the most important points of this debate. If our company relies on a mix of producers from the U.S., Europe and other countries to be successful, then eliminating sales from one of these avenues would force us to close. If companies like Cutting Edge go out of business or contract significantly less, who will sell domestic wines to restaurants or independent retailers that the wineries rely on as the largest part of their sales network? For most domestic wineries, they can’t sustain their business through direct-to-consumer sales alone.

  This leaves wineries without a home. It’s not as simple as just finding another distributor if you’re a domestic winery. Boutique American wineries need to be in a portfolio that gives their products appropriate attention to attract sales and create valuable placements in restaurants and independent retail. They have to find someone who cares about their wines and their stories, someone who can pay for the products, and who can actively promote their products to accounts and consumers.

  Larger, multi-state distributors typically don’t work with smaller domestic producers because it isn’t a part of their business model. They have obligations to their own, typically larger and more corporate, partners. This means that smaller wineries have no focus in their portfolio.

  To sum it up from the point of view of our domestic producers: if 20 Oregon producers suddenly lose their distribution in a state like Ohio, maybe 10 will eventually find a new home and those that do will likely lose significant sales because the new distributor has to essentially re-build the brand in its own portfolio. This is especially daunting when you look at the current climate in our industry as a result of COVID-19. If a producer loses representation in just a small number of states, especially now, it would likely lead to bankruptcy.

  GV: Please explain why a zero-tariff policy on wine imports benefits U.S. producers/vintners in our wine industry.

  BA: Wine from the EU is a keystone species for the health of the U.S. wine market. It represents critical profit margins for tens of thousands of U.S. wine businesses–the same businesses that sell wines from the United States. If those businesses are weak, it’s going to be harder for them to adequately support particularly small- and medium-sized U.S. producers.

  Those wines are often handsels from distributors, retailers and restaurants. That means you need more staff, more time for training, more samples. Further, there may come a point where U.S. distributors are so weakened by tariffs that they’re forced to ask for lower prices from everyone. That’s what happens when companies industry-wide are faced with such hardship. U.S. domestic producers could be one of the first impacted by this need.

  Bottom line, the entire wine industry, from producers to distributors, to restaurants and retailers, are significantly better off when there aren’t tariffs on wine.

Make Connections in Congress

  GV: At press time, the U.S. will have experienced more than 5 million COVID cases, and many wineries continue to be shuttered or downsized in production and tourism. How do you encourage them to take an active stance on this issue when so many other factors have them at a disadvantage? What immediate results will they see from their activism?

  EF: We’ve worked with dozens of domestic wineries to raise awareness of the tariff situation and how it will negatively affect them. I’ve spoken to many of them personally to get them involved, as have countless other distributors. No independent domestic winery thinks the tariffs will benefit them in the short- or long-term.

  We’ve helped provide information on how to contact their elected officials and make their case to members of Congress, the administration, and the USTR. Many have spoken out publicly to condemn the tariffs. People like Jason Lett of Eyrie Vineyards in Oregon have led the charge to raise awareness amongst their peers. They need a strong economy here at home to promote their brands and continue to operate their businesses, and strong partnerships with successful distributors to weather the current storm.

  It’s tough to say what results any of us will see from our activism on this issue because we don’t get to make the final decision. As a community, we have been able to gain support from elected officials from both sides of the aisle and raise public awareness of the negative effects the tariffs will have. Hopefully, awareness will lead to a better understanding of why it’s so important to remove the tariffs currently in place.

  Truly, if there’s anything positive from the battle against tariffs, it’s been the coming together of so many in our industry from all facets: importers, distributors, domestic producers, European producers, restaurants and retailers. I’ve even had wineries we work with in Australia and Chile ask how they can help. All see the incredibly negative outcome of these tariffs on the American wine industry and are united in standing against them. Hopefully, this will help to sway the decision-makers.

  BA: There are so many hardships right now, in every corner of our country. I would say the voices of U.S. wineries can be incredibly impactful with their representatives. We are so interconnected; I think many see how clearly that we rise and fall together. 

  We don’t begrudge the job of the U.S. government to protect our trade interests abroad, but there are better, less damaging ways to do so. We’re all trying to get back up off the mat right now. It’s the wrong time to try to pull the rug out from underneath us.

  Though the public can no longer submit comments to USTR, Congress can! Tell your elected officials, both in the House and Senate, to reach out to the USTR and voice their opposition to these tariffs. There are better ways to influence the EU than a tariff policy that does disproportionate damage to mom and pop businesses in the U.S.—particularly during a pandemic that just saw the U.S. economy contract by 33%. [Editor’s note: The carousel date for the expected USTR announcement regarding its decision, was August 12. Look for an update on thegrapevinemagazine.net]

  When the wine industry is healthy, everyone benefits. When we’re suffering, we all see the impact. Bottom line, we’re in this together.

UPDATE: August 31, 2020; Update from the U.S. Wine Trade Alliance: “The USTR published their decision regarding the August 2020 carousel for the WTO / Airbus award. The tariffs on wine remain the same, with no changes to either tariff percent or category.” Read the full statement here.