Category: Financial

You Can’t Market to Everyone

Cyndi

Why demographics still matter in wine

three generation of positive women smiling while looking at camera and hugging isolated on grey

By Susan DeMatei, Founder of WineGlass Marketing

At first glance, it may seem logical to take a broad approach to wine marketing—after all, shouldn’t the goal be to sell wine to anyone who’s willing to buy it? Not exactly.

  In practice, marketing to “everyone” is a fast track to appealing to no one. You water down your message, misfire your tactics, and wind up wasting both budget and energy trying to reach people who were never going to buy from you in the first place. Smart marketing is selective, not scattershot. And that’s where demographics come in.

  At their core, demographics are just the quantifiable details about your customers—things like age, gender, income, education, and marital status. But in the hands of a capable marketer, demographics become strategic tools. They help decode how different consumers make decisions, what cultural cues they respond to, and how best to approach them with offers they’ll actually care about.

  Wine, with all its history, nuance, and ritual, may be universally loved—but not uniformly understood. That’s why understanding the demographics of your audience is one of the most important investments a winery can make. Not in the abstract, but in the applied: how different generations buy, what they value, and how to speak their language.

Age Isn’t Just a Number-It’s a Strategy

  Among all demographic variables, age remains one of the most predictive indicators of consumer behavior in the wine space. Your 67-year-old customer and your 27-year-old customer may both enjoy Chardonnay—but the stories, channels, and experiences that led them to that bottle couldn’t be more different.

graph reflecting results of a 2023 benchmark segmentation stury of wine drinkers vs non-wine drinkers

  So how do you use this knowledge?

  You start by recognizing that each generation brings a unique set of preferences, priorities, and expectations to the table. These differences are shaped not just by age, but by shared cultural context—what technology they grew up with, how they were marketed to as teens, and how they define things like quality, authenticity, and value.

  Here’s a breakdown of how different generations engage with wine—and what your winery should do about it.

The Silent Generation (Born 1928–1945):

The Loyal Traditionalists

  While their presence in the market is shrinking, their loyalty is unwavering. The Silent Generation prefers reliability over novelty and is far more likely to value a long-standing relationship with a winery than to chase the latest release.

  They tend to gravitate toward established varietals, classic packaging, and consistent pricing. Most importantly, they still respond to print. Think newsletters, phone calls, and handwritten notes—not push notifications.

Action Step:  Reinforce value and familiarity. Printed materials, bundled discounts, and a personal touch go a long way.

Baby Boomers

(Born 1946–1964):

The Experience-Driven Collectors

  Boomers are the architects of modern wine culture in the U.S. They invented the wine tasting as vacation activity. They made critic scores a thing. They turned mailing lists into badge-worthy status symbols. For much of the past three decades, they were the ones buying the library vintages and signing up for vertical tastings with religious fervor.

But time changes habits. As they approach retirement, Boomers are buying less and moderating more. They still want quality and ritual—but they also want convenience and value.

Action Step:  Focus on smaller format options, curated selections, and loyalty programs that emphasize connection over exclusivity. They still appreciate prestige—but they now appreciate sensible pricing just as much.

Generation X

(Born 1965–1980):

The Forgotten Powerhouses

  Gen X is frequently left out of marketing conversations. This is a mistake.

Despite their smaller size, Gen Xers are in their peak earning years, and they value quality and reliability in their purchases. They’re skeptical by nature—raised in an era of economic uncertainty and cultural disillusionment—and they’re not easily swayed by flash or trend.

  They also exist at the intersection of analog and digital. They read emails and engage with apps. They’re on social media, but they also like printed tasting notes. They’re pragmatic, fiercely independent, and allergic to anything that feels like a sales gimmick.

Action Step:  Speak directly and respect their intelligence. Offer clear value, consistent product quality, and customer service that rewards loyalty without fluff. Combine digital convenience with occasional analog moments.

Millennials

(Born 1981–1996):

The Values-Driven Explorers

  Millennials are the largest consumer cohort in U.S. history, and they’ve been quietly reshaping wine culture for years. Where Boomers sought status, Millennials seek alignment. They care less about Robert Parker scores and more about soil health. They want transparency, flexibility, and values that match their own.

  They are also deeply influenced by visual storytelling. Experiences matter—but only if they’re worth posting. They prefer inclusive, approachable brands that make wine feel less like a secret society and more like a good party.

Action Step:  Show your work. Be transparent about sourcing and sustainability. Ditch the formality and engage authentically on digital platforms. Offer flexible wine club options and behind-the-scenes storytelling. And yes, your label design matters—don’t let it look like a Word doc from 2003.

Generation Z

(Born 1997–2012):

The Unfiltered Futurists

  Gen Z isn’t just digital-first—they’re digital-only. If your website isn’t optimized for mobile, if your online store takes more than five seconds to load, or if you’re still asking people to download PDFs to join your club… you’ve already lost them.

  This generation values fun, flexibility, and visual relevance. They will try your wine if it appears in a trending video. They will buy it if the branding makes them feel something. But they won’t stay loyal unless you earn it—every time.

  And they have no patience for old rules. They like slushies, canned wines, pet-nats, sweet reds, and anything that gets people together. They’re not here for tradition. They’re here for the moment.

Action Step:  Prioritize mobile, visual storytelling, and interaction. Think sampler drops over verticals. Think memes over mailing lists. Your wine club should feel like a community, not a contract.

A Note on the Underage (for Now): Generation Alpha

  Gen Alpha is still pre-legal-drinking-age, but they’re already influencing your customer base—through their Millennial parents. They’re the reason your tasting room has crayons and juice boxes now. And they’ll be of legal age by 2034.

  Smart wineries are thinking ahead: creating family-friendly experiences, building tech infrastructure, and embracing sustainability initiatives now—so when Gen Alpha gets here, you’re already fluent in their expectations.

In Summary:

Choose Your Audience Before You Choose Your Campaign

  Marketing to everyone is marketing to no one. Demographics, and particularly generational cohorts, give you a powerful filter for your strategy. They tell you who your audience is, where they’re most comfortable, what they care about, and how to speak to them in a way that resonates.

  So the next time someone says “our wine is for everyone,” feel free to politely disagree—and then ask them which generation actually signs the credit card slip.

P.S. This blog is based on decades of research, but we’ll never pretend it’s the final word. People are complex. Trends shift. If you’ve seen different behavior from your own customers or cracked the code on reaching Gen Z through interpretive dance and Instagram stickers, we’d love to hear it. Knowledge is meant to be shared—preferably over a glass of something interesting.

  Susan DeMatei founded WineGlass Marketing; the largest full-service, award-winning marketing firm focused on the wine industry. She is a certified Sommelier and Specialist in Wine, with degrees in Viticulture and Communications, an instructor at Napa Valley Community College, and is currently collaborating on two textbooks. Now in its 13th year, her agency offers domestic and international wineries assistance with all areas of strategy and execution. WineGlass Marketing is located in Napa, California, and can be reached at 707-927-3334 or wineglassmarketing.com.

Practical Tips

Cyndi

How to Maintain Beverage Inventory Levels in Uncertain Times

man with clipboard counting bottles of wine

By Nick Fryer, Vice President of Marketing, Sheer Logistics

Managing beverage inventory has never been simple, but in today’s environment it’s harder than ever. Geopolitical tensions, climate-related disruptions, shifting consumer demand, and rising logistics costs have all made supply chain management a high-stakes balancing act for wine, spirits, and beverage brands.

  Take the March 2025 tariff scare, for example. When the U.S. threatened new duties on European goods, hundreds of Chianti orders were suddenly grounded in Tuscany. For importers, it was a stark reminder that sales performance alone doesn’t determine success. If products aren’t where they need to be, when they need to be, revenue is lost. Similarly, when President Trump announced a 25% tariff on Canadian whiskey, some Canadian provinces ordered the removal of American-made spirits from retail shelves, causing a 66% drop in sales between March and the end of April.

  So how can beverage producers minimize delays, manage risk, and keep shelves stocked without overcommitting inventory? Below, we’ll break down the most effective tools and strategies to build resilience—from smarter freight partnerships to just-in-time inventory systems that actually work.

How to Forecast Seasonal Spikes and Holiday Demand

  Many reports have appeared in the last year bemoaning customers who are drinking and spending less. Even as some note declines in wine sales, there are still plenty of spikes that businesses can take advantage of.

  Food and beverage consumption has major seasonal variations. So much so that entire studies have been done to determine the environmental and psychological factors at play. Most craft beverage operations don’t need in-depth academic research on the issue, though. What they need is clear and accurate predictive analytics.

  The best way to forecast seasonal spikes is through forecasting platforms. Usually powered by AI and advanced algorithms, this technology uses internal, historical sales data as well as external market, season, and weather trends to determine when certain products will be in demand. The value of this is that it not only improves sales approaches but it helps craft beverage operations avoid supply chain disruptions.

  Businesses can plan what to have in stock, where, and then bolster shipping operations accordingly. Forecasting demand makes it much easier to ensure that inventory and logistics are ready for demand spikes like holiday demand rather than overwhelmed by it. There’s a competitive advantage in this as well.  Businesses that can get ahead of seasonal trends the most from them.

Tips on Selecting Reliable Freight Partners for Your Craft Beverage Shipments

   As e-commerce customers demand increasingly quick and easy deliveries, that pressure invariably trickles back to the businesses targeting those customers. For that reason and many others, having a reliable freight partner is an invaluable part of any beverage manufacturing or distribution operation. Here’s what to look for:

Craft Beverage Experience:  Most wines, if not sold in cans or boxes, are sold in fragile glass bottles that need to be handled with care at every step. That’s why a logistics partner with some experience in this industry is so important.

Proper Compliance and Permits:  Transporting spirits across national and state borders comes with legal requirements that can cause lengthy delays if not complied with. This again is an area where experience helps, as it ensures that logistics teams have better knowledge of permit systems and are up to date on regulations.

Cold Chain Capabilities: The right freight partner needs to have cold chain capabilities that match the needs of your products to ensure end-to-end quality control. In-transit conditions should protect the integrity of your product, not degrade it.

References:  Track-records speak volumes. Hearing from others who have worked with a logistics team is a great way to get a sense of their reliability. It’s also worth checking public records on insurance claims histories, etc., for potential red flags.

Technology and Tracking: Many wineries and beverage makers are shipping their products for delivery over long distances. Freight partners that offer up-to-date technology and tracking can make these journeys far less stressful.

  Tracking ensures transparency and makes it easier to keep customers accurately informed on delivery times. It’s also important that tools like routing technology are in use to keep transit as efficient as possible.

Flexibility:  How would the team respond to a last minute delivery request due to demand spikes? What plans do they have in place to deal with delays? These questions can expose the flexibility and resilience of a freight partner and how well they can pivot in tight situations.

The Trick for Maintaining Product Integrity in Transit: Packaging and Temp Control

  Wine and many other craft beverages are adversely affected by temperature variations. That said, even when temp control has been maintained, damaged packaging can give the impression of a damaged product. Maintaining quality in transit is all about addressing both areas.

  IoT (Internet of Things)devices that track environmental factors can help keep wine packaging and its contents in perfect condition. The devices will automatically flag if temperature or humidity levels go out of range so that logistics teams can quickly intervene. This then prevents condensation from forming that could damage packaging. It also stops chemical reactions from occurring, such as accelerated fermentation, which could degrade product quality or even lead to bursting cans. This is a common problem with wine spritzers transported without proper temperature control.

  Packaging itself also impacts temperature control. In this instance, however, it’s not about whether wine is stored in a bottle or a can but how it’s packed in transit. Insulated boxes, for example, ensure that even if there’s a delay on the road, wine is still kept at a steady temperature.

How to Cut Inventory without Sacrificing Stock Availability

  Shipping delays are often discussed in terms of what goes wrong in transit. It’s the reason why GPS tracking and data-driven routing are so important. However, many delays actually begin in the warehouse with inventory issues.

  Overstocking can crowd storage areas and slow fulfillment, while understocking has its own issues. The last thing any craft beverage operator wants is demand coming in that their inventory levels can’t match. Here’s how to balance both:

Predictive Analytics:  This technology empowers businesses with insights that allow them to cut the inventory that’s unlikely to sell and instead only stock what’s needed. This makes deliveries much easier to manage as stock is easier to find. It also prevents stockouts and the costly shipping delays that come with them.

Inventory Tracking:  Another way to reduce inventory without threatening availability is through better tracking. Here again, IoT sensors can be useful. RFID tags are another tracking option. Either way, these devices can automatically track inventory levels in real time and, when paired with an IMS, help automate restocking to keep up with predicted demand. This prevents businesses from holding onto too much stock while still ensuring that they have enough to meet customer demand.

FINAL POUR:

Key Takeaways for Reliable Shipping & Inventory

  The trick to addressing shortages and delays in craft beverage operations comes down to inventory and shipping management. Here’s a quick overview of how businesses can make these areas more reliable:

•    Track inventory and use predictive analytics to forecast demand and prevent warehouses from being overloaded with stock or scrambling due to shortages. Data takes the guesswork out and puts the balance back.

•    Invest in great packaging and temperature control in order to protect the quality of your products throughout the logistics network.

•    Pick freight partners carefully based on their experience, use of technology, and the kind of flexibility they can offer.

  Nailing the above can help businesses prevent and handle delays. Most importantly, it builds systems that can thrive no matter the season or the directions this industry takes.

Author Bio:

  Nick Fryer is the Vice President Of Marketing, Sheer Logistics with over a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more at 3PLs and 4PLs including AFN Logistics, GlobalTranz, and Sheer Logistics.

From the Sublime to the Ordinary

Cyndi

Art in a bottle and insurance considerations

photo showing rows and rows of barrels on racks in a winery

By Brad Berkman & Louis J. Terminello of Greenspoon Marder LLP

The wine-making experience is often sublime, requiring the best attributes of the artist. Sometimes, however, it is essential to call on the practical among us. In this instance, at least, I am referring to the insurance broker along with the versed attorney who can assist in advising on insurance policies that manage and limit the winemakers (“Suppliers”) risk (it’s worth noting that these recommendations are applicable to all producers of beverage alcohol as well as distributors). Of course, this article is written by an alcohol beverage attorney, so its main objective is to make this publication’s readers aware of recommended areas of coverage for production and distribution relationships and agreements, as well as in the context of the contract packaging relationship.

  In simple terms, business insurance is essential for managing risk and protecting a business against economic loss. Wine is obviously a consumable good, and risk exposure occurs from the production facility through the distribution chain and ultimately, to the consumers’ table. It is advisable that the producer ensure that it, and its partners down the distribution chain, have adequate insurance guarantees that are memorialized as obligations in the various agreements that the Supplier may enter.

General Contractual Provisions

  Insurance terms and their requirements can be confusing to those unfamiliar with them. As an exercise in clarification, below is a sample of insurance provisions that may appear in a Supplier/distributor agreement with terms that may be known to the reader, but little understood. First, read the following:

Supplier Insurance: Producer will maintain: (1) primary products liability coverage totaling at least $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate, on an occurrence and (2) commercial general liability insurance of not less than $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate. Producer will give Distributor at least 30 days’ advance written notice of cancellation, nonrenewal, or material change in the terms of the liability policy. All policies shall name Distributor as an additional insured party.

Distributor Insurance: Distributor shall maintain Commercial General Liability Insurance and Product Liability Insurance in such an amount as is commercially reasonable but not less than the coverage amounts stated in Paragraph above. Within ten days of the effective date of this Agreement, Distributor will provide to Brand Owner an original certificate of insurance evidencing such insurance and these terms and thereafter will provide Brand Owner with each certificate of renewal, within ten days of the effective date of renewal.

What Stands Out?  

  Obviously, the reader will notice that the insurance provisions are reciprocal and that both the Supplier and distributor have insurance obligations. Additionally, both parties are named as additionally insured on the other party’s insurance policy. The additionally insured party is not the policyholder but is added to the policy, and the policy’s protections are extended to the additionally insured, covering them for the risks of the policyholders’ activities. In our example, additional insurance provides the distributor with protection against a Supplier risk event, and the producer is protected against a risk event associated with the distributor. This begs the question, what are the party’s insurance policies covering in the above clauses?

For the Producer-Product Liability Coverage

  Wine producers and Suppliers should have product liability insurance coverage as identified in the contractual provision. This type of coverage covers consumers’ claims against the producer stemming from damage caused by the alcoholic beverage. Such damages may include those resulting from a manufacturing defect during the production process. Ideally, the product will always come off the bottling line fit for human consumption, but sometimes contaminants or other substances may be present and consumed by the end user, which causes injury. Product liability insurance will cover the economic consequences of such incidents. Those entities in the chain of distribution, such as wine distributors, should also consider obtaining product liability insurance to guard against economic loss resulting from the distribution of beverages that may be defective.

  Many insurance policies, including those covering consumables like wine and alcohol beverage, have policy payout limitations. Phrased another way, your insurance provider will only pay up to a maximum coverage amount per occurrence or in the aggregate. Per-occurrence limit is the amount the insurance company will pay for a single claim or incident. The aggregate is the total amount the insurer will pay for all claims covered by the policy for its term.

  It is wise for the Supplier and distributor to include these policy limitations in their agreement to ensure adequate coverage in the event of a claim. Further, it is important to consult with an insurance professional to be sure that the policy limitations provide adequate coverage and protection based on the policyholder’s economic exposure.

General Commercial Liability Insurance

  General commercial liability is also called for in the above reciprocal clauses. As an industry standard, General commercial liability insurance protects against economic loss from claims that the Supplier or distributor caused injury to another person or property. Common areas of coverage include bodily injury, medical expenses, or property damage caused by the wineries or distributors business operations. As an example, this type of coverage may cover damage caused by a distributor’s vehicle to a retailer’s property when delivering the Supplier’s product. As with product liability insurance, adequate amounts should be acquired per occurrence and in the aggregate based upon risk exposure. Again, speaking with an insurance professional is essential for determining sufficient coverage amounts based upon the economic risk exposure to the policyholder.

Additional Areas of Coverage for Consideration

  There are many types of risk coverage available to wineries and other alcohol beverage industry members. Other coverage areas to explore include:

•     Liquor liability insurance: Covers claims for incidents as a result of the consumption of alcohol and for actions brought by claimants under dram shop laws (dram shop laws concern a business’s liability for the service and over-consumption of alcohol by consumers on their premises). This is especially important for Suppliers that have tasting rooms on their premises.

•    Recall insurance: Covering economic loss for the recall of defective alcohol beverage products that made its way into the marketplace.

•    Crop Insurance (for wineries in particular): Protects against losses to the crops from damages due to weather and other factors.

•    Business interruption insurance: Covers losses resulting from an unplanned interruption or temporary stoppage in business due to unforeseen circumstances.

  Risk management and the policy types mentioned here, and the terms defined, are meant to introduce and bring clarity to an often thought of as mundane area of business operations. However, it is extremely important that stakeholders in the beverage alcohol industry, in whatever form they take, bring serious consideration to this matter. Inadequate insurance coverage amounts or the wrong policy coverage could lead to catastrophic consequences for those who labor so hard to create and distribute art in a bottle. The reader should take care to consult with well-versed insurance professionals and attorneys to ensure adequate risk management.

Vineyard Insurance

Cyndi

When can I sign up for grape crop insurance?

vineyard showing damage from storm

By Trevor Troyer, Agricultural Risk Management

Crop Insurance is unlike most other types of insurance.  There are specific deadlines for signing up, reporting the previous year’s production, reporting acreage etc.  You can only sign up for crop insurance by certain dates.   Since crop insurance is partially subsidized through the USDA these dates, along with premiums, are set by them. 

  All states where you can obtain grape crop insurance, except for California, have the sign-up deadline or Sales Closing Date (SCD) of November 20.  The states where grape crop insurance is available are Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and Washington.  Grape Crop insurance is not available in all counties in the above states though.  You may be able to obtain coverage through a special Written Agreement with the USDA, in one of those counties where it is not.

  If you want to amend the existing policy for next year, it needs to be done by the Sales Closing Date.  What changes might you want to make by the SCD or sign-up deadline? 

The main ones are:

1.    Add coverage.

2.   Cancel coverage.

3.   Change optional endorsements.

4.  Increase coverage levels.

5.   Decrease coverage levels.

  What about options that you might not realize are available?  While all crop insurance is the same from one insurance provider to the next, not all options may be added by your agent.  He or she might not have told you about certain ones or they themselves might be unaware of different endorsements that are available.  Contract Pricing and Yield Adjustment are a couple I think can be particularly important. 

  Yield Adjustment is an option that allows you to use a higher yield, in a disaster or in place of a bad year. This would replace your actual yield, in the database that is used to calculate your average tons, with a higher one.

  Here is what the Crop Insurance Handbook, 2023 and Succeeding Years says:

  For APH yield calculation purposes, insureds may elect to substitute 60 percent of the applicable T-Yield for actual yields (does not apply to assigned and temporary yields) that are less than 60 percent of the applicable T-Yield to mitigate the effect of catastrophic year(s). Insureds may elect the APH YA and substitute 60 percent of the applicable T-Yield for low actual yields caused by drought, flood, or other natural disasters.

  T-Yield is a transition yield. These are set by the USDA for each county and variety.  The main point is that Yield Adjustment allows you to use a higher yield to calculate your average.  This can make an enormous difference when it comes to how much of a reimbursement you get on a claim. 

harvester working in the grapevine vineyard

  I have seen many vineyards in California and Oregon that had zero production due to fires and smoke taint.  Their averages would have been significantly worse moving forward without Yield Adjustment (YA).  This would in turn cause them to have less insured value and lessen the likelihood of future claims getting paid.

  Contract Pricing is another valuable tool that allows growers to increase their price per ton.  Prices per ton are set by the USDA Risk Management Agency per county and variety and other counties allow for Contract Pricing.  If you have a contract or contracts with a winery or processor you may be able to get a higher per ton price.  This endorsement – Contract Pricing (CP) needs to be elected at the Sales Closing Date.  Contracts are not due till the acreage reporting date which is later. 

  With Contract Pricing for vineyards, all your grapes do not have to be grown under contract.  You can have part of your grapes grown under contract and your other grapes are not.  Or you can have other grapes grown under different contracts, with different values per ton, with various wineries.  In these cases, a weighted average is used to determine the per-ton price.  Of course, if the value of your grapes goes up so does your premium. 

  Here is an example from the Crop Insurance Handbook:

  Production based contract for 290 total tons at $2,100 per ton = $609,000 total contract value. Non-contracted 72.5 tons at the price election of $1,622 per ton = $117,595. Total value of contracted and non-contracted tons = $726,595. Total value of $726,595 divided by the total expected production = $2,004 weighted average price.

   So, at the time of a claim in the above example any indemnity payment would be $2004 per ton instead of $1622.  Again, using Contract Pricing means your premium will go up.  The higher the dollar value the more the premium will be.  I have seen growers choose not to use CP because of this.

  Another option that growers may opt to use is price election. Normally the price election is 100%. 

  What is price election or percentage? Simply put it is a percentage of the price you are getting per ton.  For example, at 75% coverage you are covering 75% of the value of your grapes.  You would have a 25% damage deductible.   The underlying price election would be 100%.  So, you are getting paid 100% of the value of the grapes covered (75%).  If you had CAT or Catastrophic coverage you would have a coverage level of 50% and a price election of 55%.   You can adjust this price election percentage by coverage level. 

  This can get extremely complicated, but it can make sense for a variety of growers.  You can select different price percentages for different coverage levels.    What if you choose a higher coverage level and then a lower price percentage?  Sometimes this makes more sense.  You would be more likely to have a claim paid but the claim payment might be less.  You would still come out ahead rather than not having a claim paid.

  Here is an example let us say you choose 65% coverage.  If your average is 5 tons per acre, then you are covered for 3.25 tons per acre.  You have a 35% or 1.75 tons per acre deductible.  You must harvest less than 3.25 tons an acre to have a loss.  Maybe you think 35% is too big a deductible.  You might have had a loss last year of 30% and did not get paid anything.  You have looked at 80% with a 20% deductible and that seems good, but the premium is too high for you at 100% of the price.  You could instead choose 80% coverage and then decrease the price percentage.  That way you lower your deductible percentage, making it more likely to have a claim paid while paying around the same premium.

   Decreasing the price percentage lowers the dollar value of what is covered and therefore lowers the premium.  You will get less money per ton, but you may get a claim payment, where in the past you would not have been paid as much or at all.

  This is all very relative to the grower, the state, the county or growing region and the main perils with which you are concerned.  These are just a few examples of available tools you can use to mitigate your risks.  Hopefully, this helps.

Why Less Visitation to Wine Country Is Everyone’s Problem

Cyndi

By: Susan DeMatei – WineGlass Marketing

Wineries with tasting rooms know all too well that foot traffic is shrinking. But it was our clients without a hospitality arm who got us thinking: how important is the on-site channel to the wine industry as a whole?

  Maybe we’re just evolving. After all, people buy everything—from cars to carrots—online these days. Isn’t it natural for wine to follow suit?

  We pulled on that thread, and it turns out the decline in wine country tourism is a bigger issue than it first appears.

What Is the Problem?

  When we look at why wine sales are down, we can break it into three core factors:

•    Frequency


•    Volume


•    Abstinence


  And one of those clearly dominates.

  Frequency—how often someone chooses wine—is the elephant in the room. It accounts for a whopping 65% of the volume decline. Simply put, fewer people are reaching for wine in their daily lives.

  Next up is volume, responsible for about 19% of the drop. These consumers still drink wine, but they’re drinking less per occasion.

  Finally, abstinence represents only 7% of the decline. These folks have exited the wine category altogether, often favoring spirits, RTDs, or non-alcoholic options.

  This breakdown gives us a clear direction: focus on increasing frequency, encourage responsible volume, and work to keep existing wine drinkers from drifting away.

Who Is the Problem?

  Demographic data shows us where the decline hits hardest—and where there’s still potential.

chart showing decrease in wine consumption coming from ages 65+

Let’s start with age.
Younger drinkers (ages 21–24) are actually increasing their wine consumption—by 73% more than any other age group. Meanwhile, drinkers aged 65+ are leading the retreat, with an index of 121 for drinking less and just 48 for drinking more. This could be due to health concerns, lifestyle shifts, or simply changing preferences.

  Income tells a similar story.
Low-income consumers (<$50k) are more likely to be drinking less wine. On the other hand, higher-income consumers are still spending—often on premium bottles—indicating the luxury wine segment remains strong.

So if we’re looking for growth, it’s clear: the opportunity lies with younger, affluent consumers who are curious and still forming their wine habits.

How Do We Encourage Premium Wine Purchase?

  Across the board, consumers who begin buying wine over $20 didn’t just wake up one day and change their habits. They were introduced to a gateway wine—a bottle that surprised and impressed them, often in a memorable setting.

  That single bottle becomes a turning point. From there, consumers often start exploring more expensive options, seeking wine education, and becoming more involved in wine culture. Creating that moment is the key. The industry’s challenge is to get more consumers to cross that threshold.

Where Do These Gateway Moments Happen?

  According to the Wine Market Council, the most common place consumers discover wines over $20?

Wine country.

chart showing travel is an important introduction to wine

  A full 76% of consumers say visiting a winery or wine region plays a role in their discovery of premium wines. The physical, sensory, and emotional experience of being on-site is nearly impossible to replicate online.

  Social gatherings, tastings, and trusted retailers also matter—but in-person, immersive experiences lead the charge. More passive methods like influencer content or wine club shipments don’t seem to have the same effect.

  The takeaway? Wine isn’t just a product. It’s an experience—and wine country is still the best showroom we have.

Why This Matters

  Our biggest opportunity lies with converting curious, affluent younger consumers into wine lovers—and eventually, loyal buyers. To do that, we need to get them into wine country.

Research consistently shows that visiting wineries increases consumers’ exposure to higher-end wines and reinforces a lifestyle that includes wine. And that lifestyle leads to stronger engagement, deeper knowledge, and more frequent purchases.

But Here’s the Catch

  Only 16% of consumers visit a wine region monthly or more—and most of them are already wine lovers.
Another 53% visit once to three times a year.
And 31% of consumers visit less than once a year or never.

chart showing novice and infrequent drinkers less likely to go to wine country

  That last group is where the biggest opportunity lies—and also our biggest challenge.

  Novice wine drinkers make up 54% of those who rarely or never visit wine country. These are exactly the people we need to reach if we want to grow the category long-term.

The most engaged wine tourists?

•People who buy $50+ wines


•Those who own 25+ bottles


•Wine experts


The least engaged? Newcomers.

  This leaves us with a critical challenge: How do we attract novice drinkers and infrequent buyers to wine country in the first place?

What Now?

  To grow our consumer base, wineries must take this data seriously. That means:

•Lowering the barriers to entry with more accessible, welcoming, and inclusive experiences


•Designing immersive, unforgettable visits that educate and inspire


•Investing in storytelling, hospitality, and connection—the things that can’t be bottled, boxed, or shipped


In Summary

  The decline in wine country visitation isn’t just a hospitality problem—it’s a brand engagement crisis. If fewer people are stepping into our world, fewer people are falling in love with wine. And that affects the entire industry, from DTC to wholesale.

  We need to rethink the winery experience, not as a bonus channel, but as the first step in a consumer’s lifelong journey with wine. The more gateways we build, the more drinkers we gain—and the better chance we have at making wine culture thrive for generations to come.

  Susan DeMatei founded WineGlass Marketing; the largest full-service, award-winning marketing firm focused on the wine industry. She is a certified Sommelier and Specialist in Wine, with degrees in Viticulture and Communications, an instructor at Napa Valley Community College, and is currently collaborating on two textbooks. Now in its 13thyear, her agency offers domestic and international wineries assistance with all areas of strategy and execution. WineGlass Marketing is located in Napa, California, and can be reached at 707-927-3334 or wineglassmarketing.com.

rows of wine grape vineyards

Why Should I Get Grape Crop Insurance?

Cyndi

By: Trevor Troyer – Agricultural Risk Management

That is a question I hear a lot. It can make a lot of sense to purchase grape crop insurance, depending on the growing risks you are dealing with.  For others it might not be a perfect fit for them. Often times large growing operations may “self-insure” as they have money set aside for the upcoming season.  For a lot of growers this is not an option as a large portion of the previous year’s income is being re-invested into the new crop.  If they don’t make a good crop and sell it this year, they might not have enough money for next year. 

  Grapes are very different from traditional row crops or vegetable crops.  A lot of the risks are very much the same though.  Drought, freeze, wildlife damage, fire/smoke and the list goes on. From what I can see the risks are actually more with perennials.  Your vineyard is subject to the elements and other risks all year round.  Things may happen after you harvest that might affect the following year’s grape production.  You might have a late frost and lose your primary buds.   There might be a fire 20 miles away that could ruin your crop’s value.

  Risks are different depending on growing regions throughout the US.  You might have grower in Pennsylvania or New York worried about frost/freeze and then a grower in Sonoma or Napa County in California worried about smoke taint.  Regional issues play a large part in decisions on whether or not crop insurance is right for you.  Also, grape variety can play a large part in your decision making.  And then how much coverage is needed for the risks involved in making a good profitable crop.

  With rising production costs, tariff and trade issues this makes decisions on crop insurance even more tricky.  Chemical prices are rising, fertilizer is at an all-time high shipping and labor costs are also up.  Can you afford to purchase crop insurance? Can you afford not to have it with how much you have invested now? These are questions that have to be asked.  I have had growers ask about reducing their coverage as these production costs go up.  You then have to ask how much of a loss can you sustain and not have it affect your ability to keep growing.  Can you lose 20% of your tonnage?  What about 40%?  That is something you have to think about.

  Crop insurance is designed to help a grower have enough money to be able to produce a crop the following year.  It is not set up to replace profits lost.  I have had winery owners complain to me that it doesn’t cover the cost of how much their wine is worth.  While I can totally understand this, it is the growing costs that are being insured against loss.

  Crop insurance does not cover the production costs of making wine or juice etc.  Only Causes of Loss listed in the policy are being insured against.  It doesn’t cover the inability of a grower to sell his grapes or broken contracts with wineries or processors.  It does cover grape quality issues due to an insured Cause of Loss like smoke taint due to a Fire.

  Here are the Causes of Loss for Grapes out of a National Fact Sheet from the USDA:

Causes of Loss

You are protected against the following:

•    Adverse weather conditions, including natural perils such as hail,frost, freeze, wind, drought, and excess precipitation;

•    Earthquake;

•    Failure of the irrigation water supply, if caused by an insured peril during the insurance period;

•    Fire;

•    Insects and plant disease, except for insufficient or improper application of pest or disease control measures;

•    Wildlife; or

•    Volcanic eruption.

Additionally, we will not insure against:

•    Phylloxera, regardless of cause; or

•    Inability to market the grapes for any reason other than actual physical damage for an insurable cause of loss.

  Crop insurance is partially subsidized through the USDA. Premiums are subsidized from 100% at Catastrophic Coverage (there is an administrative fee though) to 38% depending on coverage level chosen.  A lot of growers “buy-up” coverage from 65% to 80% and their premium subsidy is around 50% to 60%. Crop insurance is more likely to pay out a claim than any other type of insurance.  

  Premiums are more expensive than a lot of other types of insurance, this is why the premiums are subsidized. The subsidy makes your premium much more affordable.  You do not hear too often of people that have had an auto accident 3 years out of 5, with a claim paid each of those years.  But I have seen vineyards have payable losses 3 out of 5 years.   No one wants to have a loss but they do unfortunately happen.

  Hopefully you don’t have a lot situations where you have a loss.  But as a grower you need to assess your risks and take action.  These have to be taken into consideration for the growing region your vineyard is located in. Here are some other questions to ask yourself. What are your break-even costs?  Do you know your cost of production with projected inflation? Have you evaluated the risk of a severe crop loss? What varieties are planted in your vineyard?  Some types of Vitis vinifera are more susceptible to weather issues than others. Are you able to repay current operating loans without crop insurance in the event of a loss?

  Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington state.   Crop insurance may not be available in all counties in these states, though. 

  My job is to help you make an educated decision, based on your risks, on whether or not you need crop insurance.  And then, if it is a good fit to mitigate your risks, to determine how much coverage is needed. 

grape vineyard

Vineyard Insurance: When Should I Open a Claim?

Cyndi

By: Trevor Troyer – Agricultural Risk Management

When to open up a claim on your grape crop insurance is important.  A lot of growers say that don’t know if they have a payable loss early in the season.  With grape crop insurance you are covering an average of your production per grape variety. Depending on what coverage level you have chosen this could mean you have a large deductible or small one.  It can be hard to tell how much early season damage will affect your tons harvested.

  Here are the Causes of Loss per the Grape crop provisions:

1.  Adverse weather conditions;

2.  Fire, unless weeds and other forms of undergrowth have not been controlled or pruning

     debris has not been removed from the vineyard;

3.  Insects, except as excluded in 10(b)(1), but not damage due to insufficient or improper

     application of pest control measures;

4.  Plant disease, but not damage due to insufficient or improper application of disease control

     measures;

5.  Wildlife;

6.  Earthquake;

7.  Volcanic eruption; or

8.  Failure of irrigation water supply, if caused by an insured peril that occurs during the

     insurance period.

  In a situation like any of the above a claim should be opened immediately.  Depending on the severity of the Cause of Loss an adjuster will come out and inspect the vineyard.  I always tell growers that they should take pictures of any damage that day.  It is always good to document damage as close to the time it occurred as possible.

  Some varieties of grapes show more damage than others.  This is to be expected as some are more resistant to different weather conditions.  And from what I have seen over the years with Adverse Weather Conditions are that they may not affect a vineyard or field evenly.  You might have more damage on one side of the vineyard or more damage on the lowest part of the blocks etc.  Damage varies but just because one variety or one area looks better than others doesn’t mean that you should not open a claim on that variety or block.

  You should open up a claim now regardless.  The damage may be less than you think and you don’t end up having a payable claim.  But it is still best to get one opened up right away.  Don’t wait to see how many tons you harvest before opening a claim!  Insurance providers always want to know early so that they can be prepared with adjusters.

  Here is an excerpt from the “How to File a Crop Insurance Claim” Fact Sheet from the USDA:

  Most policies state that you (the insured) should notify your agent within 72 hours of discovery of crop damage.  As a practical matter, you should always contact your agent immediately when you discover crop damage.

  I cannot stress enough the importance of opening up a claim early.  A lot of claims with grapes are relatively routine.  Once the claim is opened an adjuster will come out and document the damage.  You will continue to grow your crop and try to mitigate any damage received. Once you harvest grapes you will meet with the adjuster and give him your production records that show your tonnage per variety.  He will then adjust the claim based your guarantee (average tons per acre per variety and the price for that variety in the county.)

  In some circumstances you will need to get direction from the adjuster before doing anything.

What are your responsibilities after damage if the grapes have not matured properly and will not?     What if they have been rendered unusable (smoke-taint has been a major cause of this in California)? 

  Here is a section from the Grape Crop Provisions that goes over this:

11. Duties in the Event of Damage or Loss.

In addition to the requirements of section 14 of the Basic Provisions, the following will apply:

(a)  You must notify us within 3 days of the date harvest should have started if the crop will not be harvested.

(b) If the crop has been damaged during the growing season and you previously gave notice in accordance with section 14 of the Basic Provisions, you must also provide notice at least 15 days prior to the beginning of harvest if you intend to claim an indemnity as a result of the damage previously reported. You must not destroy the damaged crop that is marketed in normal commercial channels, until after we have given you written consent to do so. If you fail to meet the requirements of this section, all such production will be considered undamaged and included as production to count.

  It is important to stay in contact with your adjuster during a claim.

  A lot of things can happen to your vines that could cause them not to produce a full crop.  The insurance period is long and it is important to report everything that may reduce your crop.

  When you sign up for crop insurance, coverage for grapes starts on February 1 in Arizona and California.  It begins on November 21 in all other states.  The end of insurance unless it is otherwise specified by the USDA RMA, is October 10th in Mississippi and Texas, November 10 in Arizona, California, Idaho, Oregon and Washington.  In all other states the end of insurance is November 20th.  Crop insurance is continuously in force, once signed up for, unless cancelled or terminated.  Your coverage for following years, will be the day after the end of the insurance period for the prior year.

  Adverse weather conditions could be anything that could cause damage to your grapes. For

example; drought, frost, freeze, excess moisture etc. Wildlife could be bird damage, deer etc.

Fire would also include smoke taint as that is a result of a fire.

  Crop insurance does not cover, the inability to sell your grapes because of a buyer’s refusal or contract breakage. It also doesn’t cover losses from boycotts or pandemics. Phylloxera is not covered, regardless of the cause. Overspray or chemical damage from a neighboring farm is not covered either.

  Get those claims opened up early and stay in contact with your agent and adjuster!

grapes in trees

What is Grape Crop Insurance?

Cyndi

By: Trevor Troyer – Agricultural Risk Management

How does a Grape crop insurance policy work? What type of policy is Grape Crop Insurance? How much do you need to know? In this article we will go over the policy information and how it is set up.

Grape crop insurance is an Actual Production History (APH) policy. This means it uses the vineyard’s historical production to determine how much is covered. You are covering the average of your grape’s tons per variety. Since crop insurance is subsidized the insurable varieties, prices per ton, premiums are set by the USDA. This also means that there is no difference in price from one insurance company to the next. If anyone represents that they can get you a lower premium for the same coverage, it is false. That being said, you can select a different coverage level and different options that could change the premium or value of coverage.

Your agent will work with you to set up individual databases for each variety. If you have vineyards in different locations, you can often times set them up separately. This can be good when you have a claim. You might have a loss in one location but not the other. You don’t want your production co-mingled, as you may not have a payable loss at that point.

The databases can go back up to 10 years, if you have the production. Minimally 4 years is needed to set up an APH database. If the vines have just become insurable then a Transitional Yield (T-Yield), based on the county and variety, can be used to fill in up to three years. If you purchase a vineyard that has been producing you can transfer that production history. You must have records or some way to prove that history though. The database can only be set up as far as you have production records to prove the yields. Production records are not required at the time you sign up for crop insurance or at production or acreage reporting times. But it can come up during a claim or a review.

Here’s what the Crop Insurance Handbook says about grape production records: “Settlement sheets, sales receipts, machine harvest records, certified scale records, pick records and final or year-end statements from a winery, cannery or processor must indicate net paid tons of Grapes delivered by variety. Converting gallons of wine to tons of grapes does not qualify as acceptable records.”

It is especially important to keep good records if the grower is “vertically integrated.” “A producer is vertically integrated when all stages of production of a crop, from acquisition of materials to the retailing or use of the final product, are controlled by one person, or by different persons that are related.”- CIH If the entity that owns the vineyard is a winery, then they would be vertically integrated. Even if they sell some of the grapes to other wineries. If you own a vineyard and are partners in a winery and you sell the grapes to that winery you could be vertically integrated as well.

Vines need to be in their 4th growing season for the grapes to be insurable. A minimum of 4 years is needed to do the average, if the grapes have just become insurable then a T-Yield, as mentioned
before, is used in place of any missing years. Usually, the third growing season after being grafted is considered insurable. The vines must have produced an average of at least two tons per acre in at least
one of the three preceding crop years. There can be exceptions to this rule. Sometimes there are other requirements located in the “Special Provisions” for that particular county. In California the USDA Davis Regional Office (DRO) puts out Informational Memorandums that lay out specific requirements for the state of California. These differ from other growing regions in the US. You are able to make higher yield requests that can be approved by the USDA Regional Offices.

Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington. Crop insurance is not available for grapes in all counties in each state though. For a list of insurable counties, you can look at the RMA’s website at rma.usda.gov or contact your agent. Even though there may be differences between AVAs in a given county, the insurability, prices, premiums are set by county not AVA.

Insurable varieties are also different between states and counties. The varieties are usually set by what has been being grown in that county or what a particular climate in a state/county allows for. Even if a particular variety is not listed it can be insured. There are Types/Practices for each county that list out specific varieties and also make allowance for others. For example, it may list Cabernet Sauvignon, Chenin Blanc, Gewurztraminer, Grenache, Cabernet Franc and so on. If a particular variety is not listed it can be most often insured under “Other Varieties”, “Other White Varieties” or “Other Red/Pink Varieties.”

Having a lot of varieties that are not specifically listed causes these different varieties to be lumped together in the database. This can cause problems if you have varieties that yield differently. But this is still better than not having any coverage at all. Any coverage is better than no coverage as can be attested by many growers in California a couple years ago during the wildfires.

It may happen that your production is low in particular year. You might have had a claim paid or not, but what about your database and average going down? This isn’t good. You may elect an optional endorsement when you sign up called Yield Adjustment. “For APH yield calculation purposes, insureds may elect to substitute 60 percent of the applicable T-Yield for actual yields (does not apply to assigned and temporary yields) that are less than 60 percent of the applicable T-Yield to mitigate the effect of catastrophic year(s). Insureds may elect the APH YA and substitute 60 percent of the applicable T-Yield for low actual yields caused by drought, flood, or other natural disasters.” – 2022 Crop Insurance Handbook. This can make a big difference; you want your yields to stay up so that your average does. This makes it more likely to have a claim paid at the time of a loss.

You cannot cover 100% of your average production. You can choose coverage levels from 50% to 85%. There is a built-in production deductible. Coverage levels are in 5% increments.
Coverage levels are relative to premium, the lower the coverage the lower the premium, the more coverage you buy the higher the premium. What the correct coverage for your needs is something your crop insurance agent can help you with.

Crop insurance is subsidized through the Federal Government. The USDA Risk Management Agency oversees crop insurance. The RMA’s website is www.rma.usda.gov.

FAQs: Wine Industry Intellectual Property Protection

Cyndi
ntellectual property word cloud on digital tablet with a cup of coffee

For wineries, managing intellectual property (IP) is crucial to maintaining brand identity and protecting creative investments. While general IP principles apply across many sectors, wineries face unique challenges and opportunities.

  We have spoken to several wine industry leaders and compiled their most frequently asked questions regarding IP protection. This article provides answers regarding core IP types and effective management strategies that wineries should adopt.

What is intellectual property and why is intellectual property protection important for the success of my wine industry business?

  Intellectual property refers to valuable non-tangible assets. Even though these assets are non-tangible, they can be protected. There are several types of intellectual property:

•    Trademarks identify source through the use of symbols, names, or designs and distinguish the company’s products from those of competitors. For wineries, trademarks may include the name of the vineyard, logo designs, and even unique label features or bottle shapes. Properly registering trademarks is critical to enforce exclusive rights and prevent misuse by others. A trademarked name or logo allows consumers to associate the product with a specific winery’s quality and reputation, building loyalty over time.  Trademark protection keeps others from using similar marks that would cause consumer confusion.

•    Copyrights cover creative works such as website content, photography, and advertising material. Any unique content produced for the winery—from label artwork to promotional videos—can be protected by copyright. This protection is automatic upon creation, but formal registration strengthens the winery’s legal standing, making it easier to defend against infringement. Copyright protects against creative expression being copied by others without permission.

•    Patents protect useful inventions and may apply to novel winemaking processes or technologies. Although less common in winemaking, patents could cover novel fermentation techniques or vineyard management technologies. Patents provide exclusivity, ensuring the winery can control the use of its innovative methods.

•    Trade Secrets include confidential information such as proprietary blends, aging processes, and customer data. For trade secrets to retain their protected status, wineries must take reasonable steps to keep this information confidential, such as using non-disclosure agreements (NDAs) and limiting access to sensitive information.

What are some steps I can take to protect my brand and trademarks?

  A winery’s brand is often its most valuable asset, making trademark management a priority. A lot of effort goes into making high-quality wines and curating tasting experiences that customers will remember. When a consumer is facing a wall of wine at the wine store or an extensive wine list at a restaurant, you want these consumers to remember your wine and not confuse you with a competitor that may be piggy-backing on the reputation you have taken the time, effort, and expense to build. Here are best practices for wineries to consider:

•    Choose Distinctive and Protectable Names: Wineries should select unique, memorable, and legally protectable names. Trademarks fall into categories ranging from “fanciful” (completely made-up words) to “generic.” The less the mark naturally conveys about the product, the more protectable it is. Names like “Yellowtail” for wine are highly protectable because they bear no direct relation to aspects or qualities of the product.

•    Consider Trade Dress: Trade dress is a form of trademark protection and covers the distinctive visual appearance of products or packaging, such as wine labels and bottle designs. To be protectable, the trade dress must be unique to the winery and have come to be recognized by consumers through regular use. Distinctive bottle shapes or label layouts can qualify for trade dress protection, provided they are original and have developed a reputation in the market.

•    Monitor and Enforce Rights: Trademark protection requires ongoing vigilance. Wineries should regularly check for unauthorized use of their trademarks or similar marks that could confuse consumers. Enforcing rights may involve issuing cease-and-desist letters or, in severe cases, taking legal action.

•    Geographical Indications (GI), including AVAs: American Viticultural Areas (AVAs) and other geographical indicators are specific to wine-producing regions. To label a wine as originating from a GI, the grapes must come from that area. Napa Valley, for example, is a protected AVA, and only wines produced within this region can use the name legally.  Wine companies must be careful to confirm they are using any geographical indications properly.

Do I need to register my trademarks?

No, but there are advantages. These include:

•    Constructive Nationwide Use: If a business does not register a trademark, then it can only enforce the trademark in the geographic areas in which it actively uses the trademark. Registering a trademark grants the owner nationwide rights regardless of whether it uses its trademark nationally, though actual enforcement must wait for use in the geographic area where the infringement is taking place.

•    Presumption of Validity of Rights: Because registering a trademark involves an application and vetting process, after a registration is granted, there is a presumption that the owner’s rights to the trademark is valid. Although this presumption can be rebutted in litigation, it makes things more difficult for the opposing party. It can also make cease and desist letters more persuasive because the trademark owner is able to provide concrete proof of its trademark. 

•    Use of the ® Symbol: Although a business can use the ™ symbol without registering its trademark, the use of the ® symbol is reserved for trademark owners who have registered their trademark. The use of this symbol indicates to potential infringers that you have a trademark registration and can be a potential deterrent.

Does my U.S. registration protect me throughout the world?

  No, trademarks must be registered in each country in which you want to protect the mark. But there are some shortcuts. As an example, one registration covers the whole European Union. In certain cases, it is also possible to use a registration in one country as the basis for protection in a different country. The rules are different depending on the circumstances and the country.

What are some steps I can take to protect copyrightable material?

  Marketing content for wineries often includes unique visual and written material that benefits from copyright protection. Having clarity about who owns the copyright to different materials and how other can use this material can have substantial benefits for wine industry businesses.  For example, it can be the difference between being able to use a label for decades and profit over the built goodwill associated with it or having to pay to have a different label designed for new products because the designer, not the company, owned the rights, and then having to start building goodwill almost from scratch. It can also help wineries capitalize on the social media content of consumers, which is often free and very persuasive to other consumers. Here are several ways to manage these assets effectively:

•    Get Copyright Assignments From Contractors: Many wineries hire freelancers to create content, including label designs and websites. Without a copyright assignment, freelancers retain ownership of the work they produce. To avoid complications, wineries should require a written assignment transferring copyright ownership to the winery.

•    Register Copyrighted Works: While copyright protection is automatic, formal registration of key assets like photos, website content, and promotional videos provides a clear legal advantage in case of infringement. Registration enables wineries to seek statutory damages and attorney fees if they need to enforce their rights.

•    Get Authorization for Use of User-Generated Content: Many wineries encourage social media sharing by customers. However, they should ensure they have permission to use these posts in marketing campaigns by including terms of use that give the winery a license to repurpose customer photos or comments.

What are some steps I can take to protect my trade secrets?

  Trade secrets cover any confidential business information that gives a winery a competitive edge. This can include market research, proprietary viticultural and vinification research and practices, profit and loss information, and customers lists, in addition to many other things. To safeguard these valuable assets, wineries should:

•   Implement NDAs and Confidentiality Agreements:  Employees, contractors, and business partners who access sensitive information should sign confidentiality agreements. These legal tools restrict information sharing and set expectations about handling proprietary knowledge, from recipes to customer lists.

•   Limit Access to Sensitive Information: Only essential personnel should access trade secrets. Implementing access controls, such as password-protected systems or secure filing cabinets, can help maintain confidentiality.

•   Educate Staff on Trade Secret Policies: Employees must understand the importance of confidentiality and the specific measures implemented to protect trade secrets. This can be accomplished through regular training sessions that reinforce these practices.

  The wine industry often revolves around physical assets: acres of vineyards, tons of grapes, wine processing space, cases of wine, storage space. But the intellectual property that informs the physical products and often increase their quality and profit margins is also incredibly valuable.  Investing and protecting these intellectual property assets is crucial to long-term success in today’s wine industry.

About the Authors

  Nate A. Garhart is special counsel and MaryJo Lopez-Oneal is an associate in Farella Braun + Martel’s San Francisco office.

Fire Insurance Protection

Cyndi

Smoke Index (FIP-SI)

CALISTOGA, CA - SEPTEMBER 30: The Glass Fire burns near the Jericho Canyon Vineyard and Winery about a mile out of downtown Calistoga, Calif., on Wednesday, Sept. 30, 2020. (Jane Tyska/Digital First Media/East Bay Times via Getty Images)
CALISTOGA, CA – SEPTEMBER 30: The Glass Fire burns near the Jericho Canyon Vineyard and Winery about a mile out of downtown Calistoga, Calif., on Wednesday, Sept. 30, 2020.
(Jane Tyska/Digital First Media/East Bay Times via Getty Images)

By: Trevor Troyer – Agricultural Risk Management

You may have heard about the new optional endorsement to your grape crop insurance policy.  It’s called Fire Insurance Protection – Smoke Index or FIP-SI for short.  This does not replace your policy.  It is an additional endorsement or option that can be added to your policy.  This endorsement is currently only available in California.

  The 2020 wildfires had a huge impact on California’s wine production.  Vineyards and wineries had huge losses due to smoke taint from these fires.  Fire Insurance Protection – Smoke Index adds an additional layer of protection to vineyards impacted by these kinds of fires.

  If you are familiar with the Grape Crop Insurance policy you know that there is a deductible.  You are covering an average of your historical production per variety.   You can coverage an average of your production from 50% to 85%.  50% is cheaper and less likely to pay out and 85% is more expensive but you are more likely to have a claim paid.  In my opinion, the sweet spot is around 70% to 75% depending on the size of the vineyard. 

  If you had 75% coverage you would have a 25% production deductible.  In other words, you would have to lose over 25% of your crop to have a payable claim.  The first 25% is your deductible.  So, if you had 10 acres of Cabernet Sauvignon in Napa and your average tons per acre was 3 your average production would be 30 tons.  At the 75% level you would be covered for 22.5 tons and your deductible would be 7.5 tons.  I am not going to get into the value per ton as that changes from county to county and can be even higher if a grower has contracts with wineries.

Fire Insurance Protection – Smoke Index helps cover some of the deductible.  It’s additional coverage that sits on top of the policy.  Here is what it says in the USDA Risk Management Agency’s Fire Insurance Protection – Smoke Index Fact Sheet – “The Fired Insurance Protection-Smoke Index (FIP-SI) Endorsement covers a portion of the deductible of the Grape Crop Provisions when the insured county experiences a minimum number of Smoke Events as determined by the Federal Crop Insurance Corporation (FCIC) in accordance with the Smoke Index Data Provisions (SIDP) and identified in the actuarial documents.” 

  This endorsement is based on the prices per ton and the tons used in the underlying policy.  You cannot cover 100% of your average with crop insurance.  You can cover up to 95%, even though a policy may not have that high of coverage.  This is done with optional endorsements etc.  The FIP-SI covers the deductible portion up to 95%.  If you had 50% coverage on your grapes it would cover 45% of your deductible.  If you had 75% coverage the FIP-SI endorsement would cover 20% etc.

  You sign up for Fire Insurance Protection – Smoke Index by January 31st.  This is the Sales Closing Date for Grape Crop Insurance in California.  The insurance period for FIP-SI begins on June 1st and ends on November 10th. You do not need to report your acres separately as it uses the underlying policies acres.

Here is the Cause of Loss from the 25-FIP-SI Endorsement: 

Cause of Loss

(a) This Endorsement provides protection for Smoke Events that meet the County Loss Trigger when the minimum number of Smoke Events occur in the county as identified in the actuarial documents. Triggered counties will be determined after the end of the Insurance Period.

(b) Individual vineyard yields are not considered under this Endorsement. It is possible that your individual vineyard may experience reduced yield(s) and you do not receive an indemnity under this Endorsement.

(c) The notice provisions in section 14(b) of the Basic Provisions do not apply to this Endorsement.

(d) Once published, FCIC’s determination in section 8(a) is final and is a matter of general applicability, presumed to be accurate, and will not be changed. 

  So, you may not have any damage to your vineyard or grapes but still get paid.  This is based on your County.  No adjuster is required on this. You are not required to file a Notice of Loss with your crop insurance agent.

  The USDA Risk Management Agency uses NOAA’s Hazard Mapping System’s (HMS) data for calculating Smoke Events and the Smoke Index.  You can find more information on this at www.ospo.noaa.gov/Products/land/hms.html.

  Premiums will vary with amount of coverage you choose.  Prices per ton, averages and acres all change the premium as well.  There is a separate administrative fee charged for the FIP-SI endorsement as well. 

  This is a risk management tool that can help vineyards throughout the state recoup losses due to smoke events. 

Trevor Troyer

Agricultural Risk Management

ttroyer@agriskmgmt.com

toll free: 888-319-1627