Category: Archived Articles

Planning to Purchase a Vineyard?

Cyndi

Important Plant Health Issues to Take into Consideration

grapevines on a fence

By:  Judit Monis, Ph.D. – Vineyard and Plant Health Consultant

As many of you already know, I am a plant pathologist consultant specializing in the detection and control of grapevine diseases. The diseases work with are those that are graft transmitted but are also can spread in the vineyard.  Once the vines are planted, these diseases cannot be cured using chemical or other means.  It has happened too many times that I am called to determine what is wrong at a vineyard.  The story goes sometimes like this, “we purchased the vineyard in the winter, so we were unable to see any tell-tale signs of disease”, “we consulted with our county officer and s/he said things looked OK”; We really were not thinking about disease, we fell in love with the beautiful setting and the house”; “We did not know that red foliage is an indicator of virus infection”; the scenery in the fall season is an explosion of colors, so beautiful, so romantic”.  I can go on and on with more quotes buttthink that you understand the problem.  I wish these people would have called me before they purchased the vineyard.  Now it is a bit late.

  In this article, I will highlight issues that can become a problem after a vineyard purchase.  It is my hope to educate the reader and encourage them to contact me prior to signing the purchase contract to allow a thorough evaluation of the vineyard health status.

The Best Time to Inspect a Vineyard for Disease Presence

  As mentioned earlier I will only focus on graft transmitted diseases that cannot be cured once established in a vineyard.  Diseased grapevine plants may display different symptoms of infection  at different times of the year or seasons.  Early in the spring  and summer months it is easy to spot diseases caused by declining bacteria (i.e., Pierce’s disease, crown gall), fungi (Eutypa and Bot canker, black foot, etc.), and viruses (fanleaf and other nematode transmitted virus species).  In late summer or fall, viral diseases that cause leaf reddening and a variety of color schemes (leafroll, red blotch, Vitiviruses) can be observed.  To complicate matters, these diseases or their disease-causing agents can be found in all sorts of combinations.  Further, some of these diseases show almost exactly the same symptoms, in all cases a knowledgeable plant pathologist will be required to help identify the issue or recommend testing, especially when no symptoms are present due to seasonality.

  Below I describe some of the most important diseases likely present in vineyards:

Bacterial, Fungal and Viral Pathogens Best Detected in the Spring

Petri Disease, Young Vine Decline, Esca:  The disease in young vines, known as young vine decline, is caused by Cadophora, Phaeoacremonium, and Phaeomoniella species.  In older vines, the same fungal pathogens are associated with Esca disease.  The disease is chronic when vines express a gradual decline of symptoms over time, or acute when the vines decline and die within a few days.  These acute symptoms are known as the apoplectic stage of the disease. It is not uncommon during the apoplectic stage of the disease to see dead vines carrying mummified grape bunches.

Canker Diseases:  Various pathogens can cause canker symptoms, large discolored areas in trunk and canes, in the vineyard. Bot-canker or dead arm disease is caused by different species in the Botryosphaeriaceae family. Eutypa dieback is caused by different species in the Diatrypaceae family.  In my lab we characterized Seimatosporium species as a fungal pathogen that causes decline and cankers in grapevines, but within the same fungal group others have reported Pestalotoipsis and Truncatella to cause disease in grapevines. The canker symptoms observed in the sections of affected cordons or trunks in grapevines may appear to be similar but caused by unrelated fungal species.

Black Foot Disease:  Species of Campylocarpon, Cylindrocladiella, Dactylonectria, and Ilyonectria (previously known as Cylindrocarpon spp.) are the causal agents of this complex disease.   These fungi are soil-born and most active on compact soils with poor drainage.  Symptoms above ground can be indistinguishable from young vine/ Esca disease described above.  Additionally, the decline symptoms can be confused with Pierce’s disease (to be described below).

Grapevine Fanleaf and Other Nepoviruses

  Arabis mosaic (ArMV), Grapevine fanleaf (GFLV), Tobacco (TRSV) and Tomato ringspot (ToRSV) are viruses that cause decline in grapevine.  These are specifically transmitted in the vineyard by different nematodes in the Xiphinema species.  The symptoms caused by these viruses are very similar and include foliar deformation, vein banding, and most importantly uneven maturation and sparce production of berries.  Since this is a soilborne disease, it manifests in patches in the vineyard where the nematode vector is located.  The transmission, of course can happen through infected material, but not commonly as it is an easy virus to detect using various laboratory techniques.

Pathogens Best Detected in the Late Summer and Fall

Pierce’s and Crown Gall Disease:  Pierce’s disease is caused by Xylella fastidiosa, a bacteria transmitted by sharpshooter sucking insects.  The control of the disease is complicated as the bacteria infects many different plant species (i.e., has a broad host range).  The symptoms observed in early spring are vine decline and poor bud break, in the fall it is possible to observe typical “green islands” on the canes as well as the “match stick” symptoms.  Green islands are areas of the canes that do not mature evenly (uneven lignification), while match stick symptoms is a phenomenon in which the petioles remain attached to the canes while the leaf blade has fallen off.  Crown gall is caused by another bacteria: Agrobacterium vitis. The typical symptoms of crown gall disease are galling at the crown of the vine (hence its name), however galls can occur at the graft union or other areas of the vine. I have recently written about crown gall disease in grapevine and will not elaborate on this article. 

Fungal Pathogens and Mixed Infections:   The fungal pathogens and the crown gall bacteria mentioned above can be detected all year round and often occur in mixed infections with viruses and/or bacteria.  Some years ago, Central Valley growers in California reported a syndrome in which their vines collapse and die within a short period of time.  While working at STA (the laboratory I developed that specialized in grapevine diagnostics) we tested vines with similar symptoms, not just from California’s Central Valley but also from California’s Central Coast vineyards.  We detected a combination of fungal pathogens (not always the same usual suspects) and viruses, such as Grapevine leafroll associated -3 (GLRaV-3) and the Vitiviruses Grapevine virus A and F.

Grapevine Leafroll and Red Blotch:  Although the symptoms observed in vines infected with Grapevine leafroll and red blotch viruses are similar, these diseases are caused by different viral species.  The symptoms are observed in the late summer and fall and appear as a display of a palette of different colors.  Some species of leafroll are transmitted non-specifically by mealybugs while red blotch virus was reported to be transmitted by plant hoppers in the Membracidae family, In the next Grapevine Magazine issue I plan to write an article with more details on epidemiology and management of these diseases. Stay tuned!  

Conclusions

  The purchase of a vineyard is a huge investment and because of this It is important to take into consideration its plant health prior to purchase.  Because symptoms of disease vary along the different seasons, I recommend planning to test a representative sample for important diseases during the due diligence period. Be aware that certain viruses/pathogens are detected more readily in different seasons.  This is why it is so important to hire a knowledgeable professional that can walk you through the process. 

  My philosophy is always prevention, so my recommendation to buyers as well as sellers is to be aware of the infection status of planting material, this will avoid the presence of detrimental pathogens in the vineyard in the first place.

  Judit Monis, Ph.D. provides specialized services to help growers, vineyard managers, and nursery personnel avoid the propagation and transmission of diseases caused by bacteria, fungi, and viruses in their vineyard blocks.   Judit (based in California) is also fluent in Spanish is available to consult in all wine grape growing regions of the world.  For more information or to request a consulting session at your vineyard please contact juditmonis@yahoo.com or visit www.juditmonis.com

Trouble Shooting Your Chiller System

Cyndi
man speaking in front of a wine chiller system

By: Tom Payette – Winemaking Consultant

This should be your first resource before contacting your refrigeration guy/gal or chiller supplier.  It is hoped this document will take you or your winemaking team through some thought processes to help diagnose your chiller problem and to help you know the answers to their questions if you do need to call.   Use common sense in all features of what you do when trouble shooting your chilling unit.  Make sure to employ all proper “Lock out Tag out” procedures and to use all safety procedures known …. plus, good common sense.

  Make sure to have your manual for the unit handy and try to be somewhat familiar with the chilling unit.  If you are not familiar – it’s not too late to start learning your system!  What should your propylene glycol temperature be and what is the unit set on?

Understanding the Unit

  At some point, while your refrigeration person is on the premise already, question him or her about some of the operations of your chilling unit.  You will want to know : where the compressor is; the condenser; the expansion valve; where the transfer of cooling from the refrigerant to the glycol solution is located; cooling fan coil; compressed Freon line; expanded Freon line; the glycol chilling loop, the glycol chilling reservoir, electrical contacts if any etc.  Understand the basics so you can help communicate to your refrigeration person what is happening with your unit once you know something is wrong. Your supplier is also your best first resource in trouble shooting the unit.

So, Your Chilling Unit is Down or not Chilling Properly

Power: May sound silly but check to make sure the unit is getting the proper power.  Perhaps turn the unit off, reset the breaker and turn the unit back on again.  If the unit is not hard wired be sure to check the plug and see if one leg of the power has become weak/loose/disconnected/broken.  Use a volt meter and start to trace the power from the supply to the unit.  Has a phased dropped out from the power company or transformer?   From experience -this is possible.  You will be surprised how many times a service tech comes out to winery and simply traces the power and voila – you are billed for a heavy service charge for the flip of a breaker or resetting the male end of the power supply.  Use a volt meter and be very very safe.

Contacts and other electrical notes: Are contacts (if still equipped) pulling in when they should to engage certain motors or functions?  Do you know how to test them?  Are simple fuses all intact or do they need replacing?  If you “trick” the unit into doing a certain function – does the unit respond?  Do motors function independently when you ask them to?  [More of an over-ride call for use].  Are there any flashing lights indicating a problem?   Your supplier should be able to talk you through much of this.

Amps: Do you have a volt meter and an amp meter?  Do you know how to use them to find out if you have power where you need to have power?  How many amps is the unit pulling?  How many amps should it pull?  Be careful.  These are electrical connection questions.

Sounds: Does the unit sound like it normally has and does?   You should listen for your chilling unit every time you enter and exit the building.   We can often hear our chilling unit from the crush pad.  Did you notice any odd sounds recently?  Did the unit cycle on and off frequently recently?  If equipped with belts – did you hear any belts squeal?

Smell: Has the unit given off any odd smells recently?  Does or did the unit smell hotter than typical.  Does the motor(s) feel the same as when the unit was working properly?  Are bearing areas hot?  “Singing bearings”?

Winery air temperature feel: With cellars and barrel rooms that use “Krack” style units to chill their tank room, barrel room and case goods area(s) one can often “feel” when something is not right with their chilling unit.   Often when visiting clients in the hotter summer months of July and August I can walk in their cellar and know that something is not operating properly.   Perhaps it is even as little as only one of the split units is not operating but it can be felt in humidity and temperature.  They are just limping along on one half of their system and they don’t know it.  This is all part of being keenly aware of your mechanical issues at a winery.

Expanded refrigerant and compressed refrigerant lines: Often the compressor will have a line that carries Freon (refrigerant) to and from the expansion coil.  Have you felt those lines when the unit is working properly?  (Be careful) Do they feel the same as when you felt them during normal operation?  Is one sweating and the other not?  Is one or both frozen?  When was the Freon last checked and charged?  Do you see the Freon sight gauges and do they look proper?  No bubbles, etc.  What are they showing and can you describe what you see to a technician?

Glycol strength: The chilling unit chills the glycol water mix that is pumped through supply and return lines connected to the tanks.  Is that heat transfer happening properly?  What temperature setting is the unit set to chill the glycol to?  Has this been changed as seasonally winemakers may do this?  Has the glycol strength been tested lately?  These are all questions you and your chilling technician will need to answer and explore.  Have solid answers for them when on the phone to help them before they arrive at your place.  It will save you $$.

Simple glycol test: Take a small amount of glycol from the reservoir of the glycol tank.  Make sure it is a representative sample of the glycol in all the lines.  Take a calibrated standard refractometer and place several drops of glycol on the refractometer just as you would checking a brix of grape juice.  If the reading is at or near 27 brix then the glycol strength is about 35%.   If the reading is near 24 brix then the glycol is near 30% strength.   Please double check this quick test with your refrigeration expert to see if they agree.  Suppliers of glycol have been known to, free of charge, receive a 300 milliliter sample of your glycol water mix and with have their lab test it for strength, inhibitor function and several other tests that may or may not be meaningful to you or your technicians.  [ Note : Some units now come with their own dedicated glycol testing refractometer style measuring tools ]

Glycol dye: Many wineries find great application to adding a dye to their glycol system.  This can be blue, orange, red or any other color.  As many off us know water, glycol and white wine often look reasonably similar.  Sweating glycol lines and connections are often tough to distinguish between water or leaks in the glycol line.  If you see, for example, a liquid on the floor of your cellar or on a chilling pipe that is blue – you know this is glycol.

Pump (most likely centrifugal): Is the pump that pumps the glycol working properly?  Has it stopped running?  Is it pulling the amps that it should?  Does it feel hot or is it iced up at the pump head.  Does anything look abnormal?  Do you have pictures of what the pump head should look like when operating properly?   What is the pressure on this closed system loop?  Are you getting ample pressure to move the glycol through the lines, jackets of tanks and krack units?  Did someone open a valve that may have lowered the pressure mistakenly?  Look for the obvious and simple.

Fans: Are all the fans and compressors engaging as they should?  Turn the unit (glycol temperature) down and wait an appropriate time (5 minutes +/-).  Have extra fans kicked in to pull the extra heat load out?   A call for more cooling, while setting this temperature thermostat low, should have more fans that should kick on.  All of the compressors should be functioning and the unit should be trying its best to meet the needs of the thermostat.   Do you know what this full need looks like?  Have your chilling tech show at one of their less urgent visits.

Summary

  Get to know your chilling unit.  What a major part of what we do in winemaking.  Walk out there right now and listen to it while watching it run.  Take a video of it.  Do your best to trouble shoot and gather information your own chilling unit before calling your chilling tech.  It can save thousands of dollars.  Often, too, you will discover simple things that have gone wrong while getting to know your chilling unit even better. Often the same thing will go wrong, repeatedly, and lead toward a more final diagnoses of a smaller problem.  Perhaps terms like contacts, set limits, pressure limits switches and a whole host of other higher tech terms. Perhaps the repeated chilling problems will help encourage your winery to stock that part or item that repeatedly gives trouble.  Simply calling your refrigeration guy, in a continuous knowledge vacuum, can lead toward unwanted and unnecessary costs.  Even worse you will still know little about one of the most crucial pieces of equipment in the winery.  Inspect you unit most importantly during certain crunch periods of the year like an upcoming harvest.  Inform yourself and educate yourself about your specific chilling unit(s).  It’s fun and not really that complicated!

•   Know the basic operation of your chiller

•   Build a knowledge and vocabulary base

•   Use common sense and pay attention

•   Become less reliant in case of emergency

  A big thanks to Justin Thomas of G&D Chillers in Eugene Oregon for his assistance.

A Short and Quick Guide to Wine Importation Regulatory Process

Cyndi
row of Spanish wine bottles

By: Brad Berkman and Louis Terminello

Importing wine into the United State may initially seem like a daunting task. Licensing requirements and related matters appear to be complex with requirements at both the federal and state levels. With proper planning and guidance, the insurmountable becomes a manageable process. This article will act as a short guide to the initial licensing and regulatory concerns encountered by new importers.

Licensure At the Federal Level

  Importation of wine into the stream of commerce of the United States is regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Prior to importation, the potential importer must qualify to hold a TTB Basic Permit as an Importer. TTB examines the qualifications of the owners and officers through a personal questionnaire process that is executed under the penalty of perjury to ensure that the individual applicant is not impaired from holding the permit. Qualifications of applicants can be found in the Code of Federal Regulations. Printed below are the code sections showing the requirement for licensure and the required qualifications for licensure.

§ 1.20 Importers.

  No person, except pursuant to a basic permit issued under the Act, shall:

(a) Engage in the business of importing into the United States distilled spirits, wine, or malt beverages; or

(b) While so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so imported.

§ 1.24 Qualifications of applicants.

  The application of any person shall be granted, and the permit issued by the appropriate TTB officer if the applicant proves to the satisfaction of the appropriate TTB officer that:

(a) Such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within 5 years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within 3 years prior to date of application, been convicted of a misdemeanor under any Federal law relating to liquor, including the taxation thereof; and

(b) Such person, by reason of the person’s business experience, financial standing or trade connections, is likely to commence operations as a distiller, warehouseman and bottler, rectifier, wine producer, wine blender, importer, or wholesaler, as the case may be, within a reasonable period and to maintain such operations in conformity with Federal law; and

(c) The operations proposed to be conducted by such person are not in violation of the law of the State in which they are to be conducted.

  In conjunction with the personal questionnaire process, the applicant entity is disclosed including ownership structure. Among other things, certain signing authorization forms are prepared, and parties are assigned signing authority on TTB documents.

  In addition to the Importers Basic Permit, it is wise for the applicant to apply for a federal wholesaler’s permit. This permit will allow the licensee to ship alcoholic beverages in interstate commerce. The process for applying for this license is quite similar to the federal importers permit. For consistency purposes, below is a reprint of the code section establishing the requirement for this license.

§ 1.22 Wholesalers.

  No person, except pursuant to a basic permit issued under the Act, shall:

(a) Engage in the business of purchasing for resale at wholesale, distilled spirits, wine, or malt beverages; or,

(b) While so engaged, receive, sell, offer or deliver for sale, contract to sell, or ship in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so purchased.

  Both federal permits, if the application process is managed properly and barring any unforeseen issues, should be issued within 45-60 days.

  It’s important to note that basic permits do not expire. They remain in effect until revoked, suspended, voluntarily surrendered or automatically terminated. Automatic termination can occur by operation of law when there is an unreported change in the licensed entity. In particular, change in ownership or stock transfers, among other things, must be reported to TTB on the appropriate forms within 30 days of the occurrence. If they are not reported, the basic permit will terminate by operation of law. It is essential that any contemplated change to the business be analyzed for its effect on the license and reported appropriately if required.

  As an additional note, the foreign winery/production facility must be registered with the FDA as a food facility. A registration number is assigned and must be available at the time of importation or the wine will not clear customs.

Product Approval

  Prior to importation, certain wines may be required to go through a formula approval process conducted by the TTB laboratory, though most do not. Generally, if there are added ingredients including flavorings, formula approval process is required. However, most wines produced and containing only grapes should not require formula approval. Other alcoholic beverages such as spirits and malt must be analyzed separately, as those products tend to have a more stringent formula approval process.

Certificates of Label Approval (COLA’s)

  All imported wine labels must be submitted to the TTB prior to importation and approved. Approval results in the issuance of a Certificate of Label Approval, more commonly called a COLA, which is required to be presented to US Customs at the port of entry, along with other documents.  TTB will examine the label to ensure that all mandatory labeling requirements are met. The wine label approval process can be complex, particularly for a first-time submitter. Certain pieces of information need to be affixed and positioned according to the regulations or the label will be rejected by TTB until brought into compliance. It would be beneficial, especially for the first-time submitter, to consult an expert when commencing the COLA process.

State Licensing

  As noted, TTB regulates the importation of beverage alcohol in foreign and interstate commerce. Prior to brand introduction in any state, it is incumbent on the importer to determine which state licenses are required prior to selling the wine within the borders of that state. As a general rule, some sort of non-resident permit is required, and often times brand registration as well. This is not a one-size-fits-all model, and these writers stress that each state’s requirements be examined carefully, and the appropriate licenses must be obtained.

Getting Covered: How Cover Crops Can Work to Protect Vineyards

Cyndi
a field of flowers in and around a vineyard

By: Cheryl Gray

Knowing how to protect a vineyard from the havoc wreaked by unknown threats is an important part of any grape grower’s toolkit.

  One of those tools is a cover crop. Many experts agree that cover crops play a vital role in guarding vineyards because they have a major impact on vine health and the ecosystem that surrounds vineyards.

  According to researchers at Texas A&M University, growing a cover crop can help reduce the use of chemicals that can adversely affect the environment. Cover crops can also reduce the physical toll on a vineyard that comes with frequent use of heavy equipment on the precious vineyard soil upon which grape plants depend. 

  Scientists at Oregon State University cite three main goals of what cover crops should accomplish when it comes to managing vineyard floors between the vines, in the headlands, around vineyard blocks and in the vine rows. Those goals are weed control, soil conservation and managing soil water. Vineyard design, age of the vines, soil type and grape-growing region all contribute to the process.

  By definition, cover crops are any plants grown in vineyard middles and sometimes under vines. They are non-cash crops and are not harvested. Generally, cover crops are planted each year in the fall and spring. They are maintained on a perennial basis. Scientists advise that using cover crops requires a thoughtful approach to reap the benefits of this organic tool.

  According to the United States Department of Agriculture, many types of cover crops are recommended specifically for vineyards. These recommendations come on the heels of field studies compiled by the USDA and its research partners.

  The list includes grasses and cereals, such as barley, annual rye grass, winter cereal rye and winter wheat. The choices for cover crops also include legumes, such as fava beans, garbanzo beans, crimson clover, hairy vetch and Austrian winter pea. There are also brassicas and cruciferous vegetables that include mustard, rape, forage radish and oilseed radish.

  Annual plants are the most frequent pick for vineyards. A major reason annual plants are chosen over perennials is to allow the cover crops an opportunity to grow and to provide seasonal soil conservation during winter. In the summer, the cover crop is tilled over, another benefit to the vineyard soil.

  Cover crops are rated according to their ability to provide either slow or fast carbon. How they produce nitrogen is also key. Cover crops that are rich in substances such as cellulose and lignin are defined as so-called slow carbon sources. Fast carbon options include grasses and brassicas that contain easily biodegradable sugars. Legumes are cover crops that provide a good source of nitrogen.

  Agriculture experts recommend using a cover crop strategy that creates a balanced mix of slow and fast carbon-producing plants and those that generate nitrogen. In this way, microorganisms can successfully degrade organic matter without choking off vital nitrogen that vineyard soil needs. The so-called “combo” meal of legume and grass provides the ideal blend because the two complement each other, providing fibrous and tsp root systems while also kicking in nitrogen for the vines.   However, in cases where a single plant species has a proven track record, experts say go with it, but keep in mind that single species plantings need to be rotated in order to fight potential buildup of insects, bacteria, viruses, fungi and other pathogens that can harm vineyard plants.

  There are other benefits to using cover crops. In addition to improving soil structure, they also help with water infiltration with their roots. Some of those roots can loosen soil up to five feet, reducing soil compaction and improving the penetration of water and air. Cover crops improve mineral fertility by helping the soil to better retain important minerals that vineyard plants need, including acting as a guard against minerals leaching. Cover crops can store vital minerals during winter months. They also provide aesthetic value to vineyards and traction for equipment and workers.

  Another benefit that cover crops provide is that as they grow, they work to improve the biological activity and organic matter in vineyard soil. Once their leaves and other plant materials begin to decompose, they kick-start the benefits of this organic process by boosting organic matter within the vineyard soil. 

  Erosion and runoff are enemies of vineyards. Cover crops combat these problems by preventing the damage that rain can cause when it dislodges soil. They help block the growth of weeds by preventing them from germinating in the first place. They also provide a welcome habitat for vineyard-friendly insects and predators. 

  Nematodes are also harmful to vineyards. Among the worst of these parasites are root-knot nematodes that stay in one place on the plant and lesion nematodes that travel around. Cover crops can help curb some of this threat.

  Cover crops also influence the growth of grapevines by forcing them to compete for water and nutrients in the soil. The additional nitrogen provided by cover crops also promotes the growth process.

  Managing cover crops is a process that begins with making sure that the soil is properly cultivated for good germination. Many growers opt for using a shallow tiller to get the job done. Moistening and leveling the soil follows. Then comes the seeding, which is done according to the climate of each grape-growing region. Experts say that a no-till drilling method for seeding cover crops helps conserve the texture of the soil, provides uniformity in placing seeds and helps better establish the cover crop in the vineyard. After seeding, the seed bed soil should be lightly packed with proper irrigation setup to promote germination and establish the cover crop.

  Cover crops need to be fertilized. Grasses and brassicas might need additional nitrogen for optimal growth. However, experts warn that this is where caution should be exercised because legume and grass mixtures promote increased nitrogen, which could result in too much nitrogen, resulting in too much of a good thing. Soil tests will likely be required to check the impact of any cover crops in play.

  While the benefits are many, there are drawbacks to using cover crops. Their presence may increase water use, create a frost hazard and may result in competition with the vineyard plants for soil moisture and vital nutrients. Pest problems can also result when a cover crop isn’t kept at a reasonable height. Finally, there is the chance that the use of cover crops might result increased management and cost.

  To combat the frost issue, many growers opt to mow down their cover crops in early spring, essentially using what is left for frost protection. Those cover crops are then allowed to pick up growth again before finally going to seed. Once the seed matures, the cover crop is mowed and either left on the surface or mixed into the soil with a shallow tiller.

  There is a wide range of research available documenting the results of cover crop use throughout the grape-growing regions of the United States and beyond. In addition to the USDA, many colleges and universities with curriculums that focus on viticulture have useful resources for grape growers in their regional areas. Much of the research is performed in the field through partnerships with vineyards that not only want information but are willing to share it for the benefit of other grape growers who want to know more about the pros and cons of cover crops.

Will Crop Insurance Cover Losses to My Vines?

Cyndi
man on cell phone inspecting grapes in vineyard

By: Trevor Troyer, 
Vice-President of Operations 
for Agricultural Risk Management

Does crop insurance cover losses to my vines? What can I do about vine loss or damage?  Half of my vineyard got burned due to wildfires.  I have major freeze damage on half my vineyard.  What can you do?  Crop insurance only covers losses to your grape crop not your vines.  Is there any vine coverage or assistance for that?

  Yes there is! I get a lot of questions on this so thought to address it in this article.

  Grapevine crop insurance coverage is available for the 2025 crop year. The sign-up deadline is November 1st in all states where it is available.

  The states where you can obtain this coverage are: California, Idaho, Michigan, New York, Ohio, Oregon, Pennsylvania, Texas and Washington.  It is not available in all counties though.  The counties that are listed in the actuarial documents are not the same as the Grape crop insurance program.  This  program is available for grafted grapevines only.

  What is covered with this insurance product?  The Causes of Loss that are listed in the Grapevine Crop Provisions are below:

11. Causes of Loss

(a) In accordance with the provisions of section 12 of the Basic Provisions, insurance is provided only against the following causes of loss that occur within the insurance period:

(1) Freeze;

(2) Hail;

(3) Flood;

(4) Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the vineyard;

(5) Insects, diseases, and other pathogens if allowed in the Special Provisions; and

(6) Failure of the irrigation water supply if caused by an unavoidable, naturally occurring event that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12 of the Basic Provisions, we will not insure against damage other than actual damage to the vine from an insurable cause specified in this section

  The vine needs to be completely destroyed, or is damaged to the extent that it will not recover in the 12-month insurance period from November 30th.

  Any damage other than damage to the grapevine from an insured cause is not covered.  For example, chemical drift, terrorism etc. are not covered.  Failure to follow good farming practices or the breakdown of irrigation equipment are also not covered.

  For the grapevines to be insurable they must be adapted to the area they are being grown in.  They must be being grown and sold for fruit, wine or juice for human consumption.  The vines must be grafted to be insurable as well.  The Crop Year begins December 1 and extends through to November 30 of the following year. You must have a minimum of 600 vines per acre to be insurable also.

  Vines are classified into 3 stages of growth for the policy.  Here are the exact definitions:

(a) Stage I, from when the vines are set out through 12 months after set out;

(b) Stage II, vines that are 13 through 48 months old after set out; and

(c) Stage III, vines that are more than 48 months old after set out.

  Values are determined by the Stage (age) of the vine and the county they are located in.  Obviously Stage III vines are worth more than Stage I vines.  These prices are set by the USDA Risk Management Agency.

  You can choose coverage levels for your Grapevine insurance from CAT (Catastrophic) to 75%.  CAT insurance is 50% coverage but you only get 55% of that 50% value per vine. Coverage increments are 5%, so you have 50%, 55%, 60%, 65%, 70% and 75%.   There is a sort of a double deductible with Grapevine insurance.  You have a damage deductible and a value/price deductible.  For example, if you choose 75% coverage you would have a 25% damage deductible.  That means that the first 25% of damage is not payable.  So, if you had 30% of your vines killed because of a freeze you would have a payable claim of 5% (30% minus 25% deductible).  There is also a value deductible as well. Again, if you have 75% coverage you would have a grapevine value deductible of 25%. For example, if the grapevine is Stage III in California in Napa County it would be worth $39.  At the 75% coverage level the dollar amount for that vine would be $29.25.

  There is an optional endorsement that changes the damage deductible.  This endorsement does cost a little more but is worth it, in my opinion.  This is called the Occurrence Loss Option or OLO for short.  It changes the damage deductible to a 5% damage trigger.  If your loss is 5% or more of the total value of the vines in a unit you would have a payable loss.  Plus, you are paid on the full value percentage of the loss.  So, if you had a 30% loss, you would get paid on the full 30%.  This does not change the value percentage of the coverage level, if you choose 50% you get that amount.  You cannot exceed the total insured value, Liability, of the vines in any case. 

  Once you sign up and complete all the forms with your agent, they are then submitted to the underwriter.  The underwriter will open an inspection and an adjuster will come and take a look at your vineyard.  The adjuster will determine if the grapevines in your vineyard are insurable.  The vines could be uninsurable for any of the following reasons.  The vines are unsound, diseased or in someway unhealthy.  They could have been grafted within a 12-month period before the beginning of the insurance period. Or they could have been damaged prior to the beginning of the insurance period.  Once the adjuster has completed the inspection, it is sent to the underwriter and then on to the USDA Risk Management Agency for final approval. 

  If you have damage from an insured Cause of Loss, you should contact your agent to get a claim opened.  It is always best to get a claim opened up sooner rather than later.  48 – 72 hours after discovering damage is best.  I know that a lot of growers want to wait and see how much damage there is before they do anything.  It is always better to get a claim opened up rather than wait and see.  If there is not enough damage, then you just let the adjuster know.  After you open up a claim an adjuster should be out within 10 days to inspect the vineyard.  Do not remove any damaged vines until it has been inspected!   In my opinion this is a good program, and it will provide protection to vineyards.  It will help to mitigate losses from Freeze, Hail, Flood, Fire et

The Growth of Baco Noir Grapes in Oregon’s Umpqua Valley

Cyndi
clusters of Baco Noir grapes

By: Becky Garrison

The origins of Baco Noir grapes can be traced back to the 1890s when phylloxera decimated Europe’s vineyards by eating away at the roots of the vines. As these native grapes (Vitis vinifera) possessed no inborn resistance to this microscopic louse, they began dying.

  Conversely, grapevines planted in North America proved to be resistant to phylloxera. So, researchers began to experiment with cross-pollinating American grape varieties with European Vitis vinifera to see if they could produce phylloxera-resistant vines that would grow in Europe.

  These experiments bore fruit in 1902 when botanist François Baco (1865-1947) released a hybrid grapevine called Baco 1 (also called Baco Noir) that he produced by crossing a Folle Blanche, a French white grape used for brandies from the districts Armagnac and Cognac, with a Vitis riparia species indigenous to North America. The result was an early budding grape with small- to medium-size bunches producing high yields that were low in tannin and high in acid. This early budding made the grapes susceptible to spring frosts and resistant to powdery and downy mildews. Also, these grapes did not have the foxy characteristics that many other 50 percent of vinifera hybrids express.

  In The Wine Bible, Karen McNeil notes how this grape was cultivated in Burgundy and the Loire Valley until France officially barred all hybrids from being grown in French vineyards. Since this grape was not included in the French register of authorized varieties, its area diminished to just 28 acres, as reported in 2008 by Jancis Robinson. However, this French-American hybrid was transported to North America in the 1950s, when it became popular in cooler climates where traditional vinifera varieties tend not to thrive. Among the more popular regions where one Baco Noir is grown include Upstate New York, Michigan, Oregon, Colorado, Ontario, Canada New York State, Canada, the Midwest and more recently, Oregon, with a particular focus on the state’s Umpqua Valley.

The Birth of Baco Noir in the Umpqua Valley

  According to winemaker Marc Girardet, in 1969, his parents, Philippe and Bonnie Girardet, took off in their VW bus from Northern California, heading northward in search of a place where they could live off the land and raise a family. Upon discovering Oregon’s Umpqua Valley, they purchased 54 acres of old sheep pasture and built a cabin.

  Over a bottle of wine in 1971, this Swissman-turned-Oregonian and his wife decided it would be fun to plant a vineyard. As there wasn’t much vineyard rootstock available in Oregon, they decided to search far and wide. Somehow, they made connections on the East Coast and discovered the Geneva, New York experimental hybrid grapes, along with the French-developed hybrid grapes such as Baco Noir and Marechal Foch.

  Philippe quickly seized onto these hybrid grapes because they could be grown naturally without the need for mildew or mold sprays. After a few road trips back east, they returned with a plethora of hybrid grapes, which would quickly become the largest collection of their kind on the West Coast. Throughout the 1970s and 1980s, they grew these grapes in the family vineyard, along with some wild varieties like Landot Noir, DeChaunac and Chancellor.

  Initially, these varieties were mostly blended until 1990 when Philippe noticed Baco Noir grapes had more of a spicy, juicy, yet smooth flavor that stood out above the other hybrid grapes. So, he bottled this grape on its own. Marc recalls helping him sell the first bottles at several wine festivals in the mid-1990s. As he recounts, “The sales pitch was half  ‘Hey, look at this cool wine we made with grapes that aren’t sprayed with any chemicals’ and half ‘try this great wine, and see how amazing it tastes!'”

Baco Noir Grapes Pioneering Natural Wine Movement

  In Marc’s estimation, his father was quite a bit ahead of the curve with the natural wine angle because it didn’t really seem like anyone was aware or cared about natural wine back then. “This wine became a sensation based more on its smooth flavor profile than anything else,” he reflects.

  From the beginning, they chose to farm naturally without any pesticides and using locally sourced horse manure compost. They also chose to practice dry farming, as that practice maintains a small berry size while developing a deep root system. Post-harvest, the grapes are hand-sorted and then de-stemmed into open-topped vats. Next, Girardet hand-punches the grapes to produce a wine that is lightly pressed and racked to barrel for aging.

  The fruits of their labor can be seen in their 2007 Girardet Baco Noir, a vintage recognized by Matt Kramer in The Oregonian as one of Oregon’s best wines (May 31, 2009). He described Girardet Baco Noir ‘Southern Oregon’ 2007 as “a superb red wine: supple, smooth-textured, and with an uncommon refinement that makes it ideal for all sorts of red meats, salami or even just a good liverwurst sandwich.” Following this review, Girdet’s Baco Noirs continue to sell out.

  In Marc’s estimation, “There may be increased interest in Baco Noir (and some other hybrid grapes) because there is more awareness of the dangers of pesticides that traditional vinifera grapes are usually sprayed with. So maybe current knowledge has finally caught up with where Dad was in the 1990s.”

Growth of Baco Noir in Umpqua Valley

  Tyler Bradley, winemaker at Bradley Vineyards in Elkton, credits Philippe for the growing interest in Baco Noir in the Umpqua Valley. Phillip convinced Bradley’s father to plant these grapevines, citing this region’s cold climate as an ideal location to produce these bold reds. So, his father planted one acre, proving Philippe’s prediction was on target. Also, this grape proved very easy to grow once the vines were established, as it requires very little to thrive aside from some basic nutrients.

  Typically, Baco Noir grapes do not express the distinctive foxy aromas and flavors of other Vitis riparia varieties. Instead, they possess rich fruit tones, such as blueberry and plum. That said, Marc opines that even Baco Noir tends to be a little foxy. “This comes from the Vitis riparia in the genetics but is also the reason it is naturally mildew resistant. The foxiness can be appropriately minimized if the vines are grown on sunny, dry site that controls the vigor and if the wine is aged on some good oak for long enough.”

  Baco Noir tends to be constantly a few brix higher than Pinot Noir, a difference Bradley views as crucial to achieving the jamminess his customers prefer. As wine’s acidity remains very high until about 26-27 brix, this wine needs yeast with high alcohol tolerance to ferment to dry.

  Following Girardet and Bradley’s success with Baco Noir, Mike Landt of River’s Edge Winery in Elkton released a 2013 River’s Edge Baco Noir. The grapes for this wine came from the block of River’s Edge Baco Noir, which used to be a horse pasture and contained soil rich in nitrogen. This resulted in more vigorous vines that produced wines with more meaty and savory qualities.

  During this time, Melrose Vineyards (Roseburg, Oregon) began producing Baco Noir and was the first to explore making a fortified wine using the Baco Noir grape. Select winemakers also produce a Baco Noir rosé and use it in creating full-bodied red blends.

  Also, Stephen Williams, owner of Trella Vineyards (Roseburg, Oregon), paired Giradet’s Baco Noir with pizza for many years before he made Trella’s 2022 Pugilist Baco Noir using fruit sourced from two vineyards located in Elkton: Anindor and Elk Valley. He chose the term “pugilist” as it is a dated word for a fighter in a boxing match, which speaks to how Baco Noir is a “punchy” red wine. In addition to pizza, Baco Noir pairs very well with barbecued meats and other hearty fare.

Innovations and Trends in Winery Caps, Corks and Closures

Cyndi
cork person helping another cork person off a cork screw

By: Alyssa L. Ochs

Sealing up a bottle of wine with a cork or cap is one of the last things a wine producer does to prepare a finished product for consumers to enjoy. However, caps, corks and other types of closures should be much more than a final afterthought.

  The closure you choose for your wine preserves your precious creation and adds a sense of familiarity and distinction to your brand. The right closures prevent spoilage and oxidation, contribute to the desired aging process and enhance the design of your label. Even wineries that have been using the same closures since their first harvests may be interested to learn about innovations and trends in this industry, as well as sustainability initiatives that complement an eco-minded approach to winemaking.

  Here’s an update on what’s happening in the wine cap, cork, and closure industry to inspire your next bottling process.

Types of Wine Closures

  Natural cork is the most common and traditional type of wine closure, which gives bottles a classic and elegant look while adding subtle flavors to aging wine. Synthetic cork looks like natural cork but is made from plastic, which poses little or no risk of a potentially undesirable corky smell from trichloroanisole (TCA). Champagne and sparkling wine corks have elastic discs at the bottom and a mushroom shape. Agglomerate corks are made with granulates from natural cork production and can store wine for short periods of time in an affordable way. Meanwhile, capped corks combine natural and plastic materials to allow for the best of both worlds – limited oxygen interaction with the wine and an effective seal.

  Aside from corks, many wineries use caps to seal their wine bottles. Screw caps allow for easy opening and resealing while eliminating the risk of cork taint. You’ll often find wine bottles sealed with crown caps that are similar to the ones used on beer bottles. Crown caps are best for early consumption and most common with sparkling wines.

  A zork is a plastic, resealable wine closure with a top that peels off. It provides unique access to the wine and a good seal, but it’s best for wines that will be consumed promptly. A helix is a twist-off closure made from glass, offering a sense of elegance to premium wines. The company Vinolok offers glass closures with an original all-glass version, a duet of glass and wood, and collections of glass closures that come in creative, modern and playful shapes. Wine bottles can also be sealed with hermetic corks with a hinge and silicon enclosure. Hermetic corks are reusable and most commonly used after a bottle is opened so the remainder can be saved for later consumption.

Innovations in Wine Closures

  While screw caps used to be generally frowned upon in the upscale wine industry, they have been gaining popularity as viable alternatives to traditional cork. Screw caps provide reliable seals and consistent wine quality, and they do not present the risk of cork taint. Producers are getting creative with their screw caps by using attractive colors, designs and company logos.

  Similarly, significant improvements have recently been made in synthetic wine corks to help them more closely mimic the look and feel of natural corks. However, compared to natural cork, synthetic materials often allow for more consistent oxygen control and reduce the risk of wine tasting like the cardboard, wet newspaper, mold, or earthiness associated with cork taint. Although cork taint only affects a small percentage of bottles closed with natural cork, it is still a major concern in the industry.

  Another innovation in the industry is using nitrogen or argon gas preservation systems to help bottles stay fresh after opening. This innovation complements good wine closures to ensure freshness. Wineries can extend the life of bottles opened in their tasting rooms, and consumers can use them at home so they don’t feel obligated to finish entire bottles. You can now buy single-can, private wine preservers that deliver about 120 uses for about $10 to $20. The spray cans use inert nitrogen, argon and carbon dioxide to displace the oxygen that ruins wines to protect the freshness and flavor for days, months or even years.

Green Initiatives for Sustainability 

  However, some of the most exciting developments in wine closures make bottles eco-friendlier and more attractive to sustainability-minded consumers. One company, Vinventions, has been in business since 1999 and leads the way in innovative bottle closures. All Vinventions closures are manufactured with sustainability in mind and to help winemakers maintain control over the oxygen ingress after bottling.

  The company’s Green Line offers the first-ever certified zero-carbon footprint closure, with fully recyclable materials derived from sugarcane-based products. Its Blue Line products are recyclable and made with 50 percent raw materials from plastic recycling. Vinventions’ SÜBR closure is a polyurethane-free and taint-free micro-natural closure, and its Vintop screwcaps have multi-feature designs and liners for premium wines.

  Wineries may request samples of the closures on the Vinventions website to test them for their wines. The company aims to ensure that all of its closures are 100 percent recyclable, renewable or biodegradable by 2030, and it continues to invest in research and technology to improve product performance in the wine, spirits and olive oil industries.

Pros and Cons of Caps, Corks and Closures

  To help you make the best decision for your winery, here are the pros and cons of the most popular closure types to discuss with your team:

Natural Cork

Pros: • Adds subtle flavors to wine

• Recyclable, renewable and biodegradable

• Best for aging up to 10 to 25 years

• Traditional, ceremonial and romantic

Cons: • The potential of cork taint

• Variation in the consistency of corks

• Often cost more than screw caps

Synthetic Cork

Pros: • No cork taint risk like natural cork

• Durable with quality that has been improving recently.

• Affordable and cost-effective

Cons: • Public perception of them being for low-quality wines.

• Wine should be consumed within the first couple of years.

• Generally less effective seal than natural cork.

Composite Corks

Pros: • Consistent quality so the wine doesn’t taste moldy or musty.

• Adds elegance to high-end wines

• Cost-effective and affordable

• Made from renewable resources

Cons: • Costly for producers

• Not ideal for long-term aging

• Prone to breaking and crumbling

Screw Caps

Pros: • No risk of cork taint

• Easy opening and resealing

Cons: • It is not ideal for aging wine

• Best for early consumption

Crown Caps

Pros: • Easy to open

• Consistent and reliable seal

• Great for freshness and wine quality

Cons: • An unexpected closure among consumers

• Not ideal for all types of wine

• Limited aging potential

Glass Stoppers

Pros: • Attractive for luxury wines

• Distinguish your brand from competitors

• Reusable with an excellent seal

Cons: • More expensive than traditional closures

• It can be difficult to open

• It can allow in too much oxygen, damaging wine.

Zorks

Pros: • Easy and convenient to open

• Elegant appearance

• Becomes a reusable tasting cork once opened.

Cons: • Not ideal for long-term aging

   • It fits most, but not all, standard wine bottles.

   • More expensive than other closures

Industry Trends to Consider

  With all these variations, innovations and sustainability initiatives in mind, you might wonder how most wineries are handling their closures these days.

  There is a growing interest in sustainability initiatives and eco-friendly closures that don’t deplete the Earth’s resources or end up in landfills. This trend is perhaps the most notable in the industry right now. Wineries are showing their preferences for biodegradable corks and traditional cork alternatives in their packaging solutions. Cork technology is also being developed to ensure excellent wine preservation capabilities and sealing efficiency.

  Wineries are also becoming more creative and open-minded about their closures as closure manufacturers develop new ideas. Now is a great time to explore the aesthetic appeal of wine closures that go beyond purely functional purposes to stand out among the competition and attract new consumers. There is a growing demand for premium wines, which is where glass and other alternative closures can emerge and make a real impact.

  In the Wine Bottle Closures Market report for 2024-2031, researchers found that the global wine bottle closures market was worth $3,885.36 million in 2022 and will likely reach $5,459.4 million in 2028. Major manufacturers in this industry are Vinventions, Inspiral, Astro, Waterloo Container Company, Cork Supply and Orora. Other industry leaders to watch include Amorim, Interpack, Labrenta, Precision Elite, AMCOR, Federfin Tech, DIAM, MASilva, Guala Closures Group and Bericap.

  The market is growing steadily, with cork, screwcap and plastic closures most prevalent. It has bounced back since the COVID-19 pandemic and has seen rising demand levels and more interest in experimentation and innovation. Geography also plays a role in wine closure preferences, with traditional corks still dominating Europe, where traditions run strong, yet there is more variance in other parts of the world.

  Will this be the year your winery switches up your bottle closures and tries something new? The leading industry players mentioned above might be worth contacting and exploring further to see if their latest products and closure strategies could fit within your current operations and future winemaking goals.

The Refined Palette of Investment

Cyndi

Exploring Wine as a Strategic Asset

wine bottle laying on blue silk

By: Shana Orczyk Sissel – Founder, President & Chief Executive Officer of Banríon Capital Management

In a time period marked by the unpredictable swings of traditional markets, many investors are turning their attention to more tangible assets that provide not only financial returns but also offer a personal and luxurious experience. Among these alternatives, fine wine is becoming increasingly appealing. As a long-time observer and participant in the alternative investment space, I have seen a significant uptick in wine investment interest, particularly among investors aiming to diversify their portfolios while adding a uniquely personal touch.

Why Wine?

  The appeal of investing in wine is layered and robust. Historically, fine wine has shown remarkable resilience in the face of economic downturns, often outperforming traditional stocks and bonds during inflation and market instability. This resilience is largely due to wine’s status as a luxury item, with its value driven by limited supply and increasing global demand. The finite production of certain vintage wines means that as bottles are consumed, the remaining ones become rarer and potentially more valuable. This positions wine not just as a hedge against inflation but as a compelling means for capital preservation.

Wine Fundamentals for Investors

  For those new to wine investing, understanding the fundamentals is crucial. Key factors to consider include the reputation of the vineyard, the quality and rarity of the vintage, and proper storage conditions to preserve the wine’s value. Investing in wine requires a strategy for buying, storing, and eventually selling:

●     Selection: Focus on well-known regions like Bordeaux, Burgundy, and Napa Valley, which historically produce wines that appreciate in value.

●     Storage: Proper storage is critical and should be in a climate-controlled environment to protect the wine’s quality and longevity.

●     Insurance: Like any valuable asset, wine collections should be insured, especially as their market value increases.

●     Exit Strategy: Knowing when and how to sell is as important as knowing what to buy. Most fine wines reach a peak market value at a certain point of maturity.

Personalization at Its Best

  Investing in wine is a deeply personal experience. Each bottle has its own story, tied to its origin, vintage, and the subtleties of its taste. This personal dimension allows financial advisors to engage with their clients on a deeper level. Offering wine as dividends, for instance, instead of traditional cash payouts, forges a more meaningful connection between investors and their investments. Imagine the moment of pride an investor feels when uncorking a bottle from “their” vineyard’s wine while entertaining at home.

Strengthening Relationships

  For advisors, the wine industry offers a distinctive way to deepen client relationships. Discussing wines, sharing tastings, and exploring vineyards can be powerful relationship-building experiences. These interactions allow advisors to connect with clients in settings that extend beyond conventional business environments, fostering a sense of camaraderie and shared interest.

  In the same vein, effectively marketing a vineyard or winery to financial advisors can enhance these relationships further. Invite advisors to your property for tours, tastings, and in-depth discussions about your production process and business philosophy. When advisors are familiar with a vineyard’s story, its commitment to quality, and its unique offerings, they are better positioned to recommend these investments confidently to their clients.

Diversification Through Wine

  Wine offers substantial diversification benefits. Its low correlation with conventional financial assets like stocks and bonds means it can help smooth out portfolio volatility, providing steadier returns over time. Incorporating wine into an investment portfolio can act as a buffer against market swings, appealing to those seeking more stability in their investment journey.

Avenues for Investing in Wine

  There are several options when it comes to investing in wine, each offering unique benefits and risks. Direct ownership of bottles or cases is the most traditional method, providing control over selection and requiring knowledge of wine regions and proper storage. Alternatively, wine funds offer ease through professional management, though they lack liquidity and involve fees. Those preferring a more traditional market approach might consider wine stocks, which involve investing in publicly traded companies related to the wine industry. Wine futures, or “en primeur,” allow investors to buy wine before it is bottled, potentially at lower prices, but this comes with its own set of risks related to market and production quality.

  Emerging trends like wine exchange platforms and crowdfunding are modernizing wine investment. Exchange platforms provide transparency and liquidity, enabling the trading of wine much like stocks. Crowdfunding platforms let investors buy shares in vineyards or wine projects, reducing the barrier to entry and allowing participation in potential profits from wine production without substantial upfront investment. We work closely with advisors to help them tailor and better understand the investment options that work best for individual clients.

Seizing Opportunities in the Regulatory Landscape

  Recent shifts in regulatory frameworks have opened new avenues for winemakers and investors. With the ability to raise capital from the public more freely than before, vineyards and wineries can now explore new ways of funding their operations and expansions. However, despite the high demand, there are surprisingly few wine funds available, offering a niche yet potentially lucrative investment opportunity. A thorough understanding of the market and regulatory environment will ensure investors can identify and capitalize on the best offerings.

Targeting a Broader Investor Base

  The demographic of wine investors is expanding, with women in particular drawn to the combination of cultural appreciation, luxury, and investment potential that fine wine offers. Wineries have a significant opportunity to cater to this demographic, especially at tastings, which predominantly attract couples and women. Additionally, social media has introduced new marketing channels that are not only more cost-effective compared to traditional advertising channels like television, but also resonate strongly with the female market. Influencers can provide a personal touch and create authentic connections with products, while “mom memes” underscore wine’s cultural integration.

Global Market Trends

  The global wine market is experiencing significant shifts, influenced by changing consumer behaviors and economic conditions. According to Spherical Insights, the global wine market size is projected to reach $583 billion by 2032 with a compound annual growth rate of 5.7%. Emerging markets, especially in Asia and parts of Africa, are developing a robust appetite for luxury wines driven by increasing wealth and a growing middle class. As a result, demand is likely to keep rising, potentially pushing prices higher in well-established and emerging wine markets alike.

  In Europe and North America, consumption patterns are stabilizing, but the interest in high-quality, sustainable, and boutique wines is growing. This shift towards premium products supports higher price points and can enhance investment returns.

The Future of Wine Investing

  The future looks promising for the wine sector. As awareness of its benefits grows, more investors are likely to explore how wine can complement their portfolios. For newcomers, starting with a reputable wine fund can provide a secure and enlightening entry into the market, combining financial benefits with the pleasure of ownership.

The Last Sip

  Wine investing extends beyond simple asset acquisition; it’s about embracing a lifestyle and crafting a portfolio that mirrors personal tastes and passions. For those eager to incorporate sophistication and personalization into their investment strategy, wine offers an enticing path. Whether you’re a seasoned collector or new to the world of wine, the right investment strategy can transform every sip into not just a taste of exquisite craftsmanship but also a toast to financial prosperity.

As Founder, President & Chief Executive Officer of Banríon Capital Management Shana Orczyk Sissel helps independent advisors navigate the complex world of alternative investing, bridging the gap between public and private alternative investment opportunities. Additionally, she assists clients with investment platform development, alternatives in portfolio construction and developing best practice in alternative investment due diligence. In this role, Ms. Sissel assisted in the launch of Armada ETF Advisors, and served as a key advisor in the firm’s recent launch of its first ETF product, the Home Appreciation U.S. REIT ETF (HAUS).

AgTech Advancements Powering Vineyard Innovations

Cyndi
person holding cell phone up to grape cluster

By: Josh Mickolio – DigiKey

  For a long time, wineries have used technology to produce excellent wine. These technologies include tank sensors that offer real-time data on oxygen levels, temperature and sugar content. As wine regions face challenges like labor shortages, increasing temperatures, wildfires and drought, some winemakers are looking towards smarter technology to secure their future.

  Modern vineyard owners are increasingly turning to agriculture technology (AgTech) solutions to help keep up with the pace of global wine demand. A wide variety of factors have made the grape growing job more complex and challenging, along with climate change and labor shortages, rising costs and a decreased interest in viticulture as a career. Digital tools for monitoring soil health, weather patterns and grapevine vitality are a necessity for modern vineyard operators.

  Advancements in AgTech are responsible for smarter harvesting, the electrification of equipment and better data collection in order to make more informed decisions. Plus, advances in global connectivity have improved data communication speeds, even in extremely rural or hillside locations where vineyards are often located.

  One of the AgTech solutions that is picking up a great deal of steam is precision agriculture, which relies heavily on technology to more accurately and efficiently complete winery tasks. To better understand vineyards through data, wineries are installing weather stations, soil moisture and temperature sensors and flying drones with infrared technology to gauge the health of their vines.

person with drones flying in vineyard

Improved sensor technology ultimately leads to better, more precise results for growers, including better equipment positioning and monitoring.

  Viticulture requires a great deal of energy and resources, and precision agriculture aims to use that energy and those resources more effectively and efficiently for the betterment of all. Modern wineries rely on technology to elevate the art of grape growing with automated and sustainable solutions.

Technology Enables Evolution

  The transition from traditional practices to a more modern approach has become more than necessary for vineyard operators. With the global wine market projected to reach over 450 billion by 2028, staying competitive in this industry requires an equal blend of tradition and technological innovation. While most grape growers and vineyard staff do the cultivation work like pruning or leafing by hand, the data and new technologies help them know which plants need special attention.

  Over the following decades, connectivity solutions have continued to improve, enabling faster data transfer for both cloud and edge computing globally. Additionally, the capabilities of autonomous solutions have accelerated in recent years, such as improvements in optics processing, the growth of artificial intelligence and the introduction of solid-state LiDAR—all of which add up to advancements for precision agriculture.

  In order to realize its full potential, precision agriculture requires a robust foundation, which often means a deep well of data points. That data is collected and measured by a wide variety of hardware and software solutions.

  Today, sensors are one of the most heavily used hardware solutions in agriculture – they are essential to gathering data to inform decision-making. These sensors are incredibly rugged and able to withstand many environmental factors such as high and low temperatures, extreme weather, chemical exposure, dirt, vibration, animals and much more.

  Also, the sensors used in most agriculture equipment are not only designed for wear and tear but in terms of equipment design, they are typically well-protected and hidden in hard-to-disturb places.

  Improved sensor technology ultimately leads to better, more precise results for vineyard owners, such as better equipment positioning and monitoring, better moisture and sunlight detection and much more.

Reaping the Benefits

  The search for vineyard efficiency has produced a wide range of systems and techniques in recent years. Sensor technology can help wineries function effectively and efficiently by providing real-time data on vineyard conditions.

sensor at use in vineyard

  Sensors are among the most heavily used hardware solutions in ag settings – they are essential to gathering data to inform decision-making.

Some of the most commonly used applications of sensor technology in vineyards include:

•   Soil moisture: Measures water levels to prevent overwatering/underwatering.

•   Temperature and humidity: Providing climate information to optimize growing conditions.

•   Sunlight exposure: Measuring sunlight vines receive to optimize grape maturation.

•   Spectral imaging: Captures and analyzes reflected light from plants to provide information about their health.

•   Early warning systems: Monitor wind speed, leaf wetness and rainfall to sense and communicate disease risk.

  As technology continues to scale and evolve toward precision and adaptability, vineyard owners will reap the rewards, which range from increased land productivity to less reliance on manual labor and staffing, as well as positive environmental impacts from using fewer inputs.

The Future of AgTech

  The modern viticulture industry is tasked with creating more wine while reducing environmental impacts and navigating labor shortages. Advanced technology solutions can help vineyard owners and staff automate the critical processes crucial to reaching the scalability needed to satisfy demand.

  Of course, implementing new technology can come with its own set of challenges. To enable mass adoption of precision agriculture, technology providers must be prepared to scale solutions easily and cost-effectively across the globe, and connectivity solutions must continue to improve in order to enable real-time processing and analysis. 

  Many different precision agriculture and viticulture technologies have applications in the vineyard, such as global positioning systems (GPS), robotics, airborne remote sensing, geographic information systems (GIS), digital elevation models (DEM), high-resolution soil surveys, wireless sensor networks and more.

  In an industry already facing financial pressures for an inconsistent and costly labor supply, the good news is many entry-level sensors and networking equipment costs are relatively low compared to what was available only a few years ago. The financial barrier to entry is also helped by eliminating or reducing costs in many areas, such as purchasing fewer chemicals and avoiding waste, hiring less human labor and identifying specific plants or sections that need the most attention, saving time and effort.

  As more viticulture operations embrace technology and automation, companies like DigiKey are making solutions more accessible to engineers who are building the next generation of AgTech.

From generation to generation, technology will continue to evolve rapidly and adapt to current and future needs, improving the adoption rate of precision agriculture. Vineyard owners and grape growers alike need to adopt technology to remain competitive, especially when the technology can help solve and streamline a myriad of elements of the process.

  By focusing on farming insights and automation at the plant level, the world can not only farm better, but farm different.

  Josh Mickolio is the supplier business development manager of wireless and IoT at DigiKey. DigiKey is both the leader and continuous innovator in the high service distribution of electronic components and automation products worldwide, providing more than 15.3 million components from over 2,900 quality name-brand manufacturers. Check out Season 3 of DigiKey’s “Farm Different” video series, which highlights the future of farming and the innovations that power the next generation of global food production.

Bottling Day Tips and Tricks

Cyndi
two people talking in front of wine bottles on a bottling conveyor

By: Tom Payette – Winemaking Consultant

This article is a sequel to the previous article on bottling.  It applies not only to mobile bottling but also any bottling line quality control a winemaker may be a part of.  Each line has its own Critical Control points so use this article as a foundation to build on for your specific bottling operation/mobile bottler.  Winemakers – it’s time to be on your toes!

  Make sure your wines are ready, free sulfur dioxide adjusted and at the appropriate temperature for the bottling.  Makes sure the dissolved gases such as oxygen and carbon dioxide are where you want them and measured if possible.  The wine should be filtered to the appropriate micron rating prior to the days bottling and mixed well to provide uniformity in each bottle.  If chasing the wine surface, in the tank, downward with a nitrogen blanketing gas – be sure to have that system in place.

Start of sanitation:  Be sure the sanitation proce

dure of the bottling line is being done to satisfaction.  If steaming be sure to reference in a previous article on that subject and if performing a pressure hold test on the cartridge filter after steaming be sure to consult that article for details.  Be a team player to achieve the best possible sterile conditions prior to having the wine enter the bottling line.  Make sure corker jaws are clean and any areas that may affect the wines long term bottle integrity are well within range.

Inspect raw materials/dry goods:  The best time to look over the dry materials and packaging goods is upon receipt at the winery – allowing time for any potential corrections with suppliers.  Place capsules on bottles, inspect labels for proper size and printing, assemble packaging in full bottles and review the actual shelf presence.  During bottling be sure to monitor, by way of random sampling, the actual process before or while bottles are going through the line.  Empower case packers to keep a keen eye, also, as quality control agents, before they place finished bottles in the case box.

Bottles:  Be sure to inspect bottles during the bottling process.  Feel them – are they out of round?  Are the necks straight?  Feel inside for the proper irregularity inside the bottle assisting to keep the cork in (discard these bottles after doing so for sanitation reasons).  Check with calipers if any irregularities are found.

Corks, closure:  Inspect these items and test for any taints or manufacturing irregularities.  Soak corks and allow for taint issues to form or have them tested for TCA detection well ahead of bottling.  During the bottling process look for creases caused by corker jaws or disks (looking like small watermelon slices) coming off and identify why they are happening.  Lay bottles on their side and inspect for leaks.  Use a vacuum needle gauge to monitor any irregular pressures/vacuum inside the bottles randomly (remove cork after doing so and place back to be recorked).   [For a free parts list to build an inexpensive vacuum needle gauge to be used on cork closures please contact my office at 540-672-0387 and supply your postal mailing address.]   Identify your ranges of tolerance here if any.   Screw caps and their bottles have exact tolerances so make sure these two pieces of the package come together properly.

Oxygen:  Use an oxygen meter at critical control points to understand each process, its oxygen uptake and understand its ramifications.  The first place to sample for oxygen is in the tank.  The second place to check is after filling in a bottle and the third place is after closure of the bottle with a cork, screw cap or other closure.  Purchase an oxygen meter and use it once you understand how to use it and what the corrections are.

Labels:  Be sure to inspect how the labels are being applied and what the end results are.  Are the labels correct for the product?  What is their height position?  Is the back label appropriate?  Is the spacing between the two where desired?  Is the adhesion taking place?  Are the bottles sweating?  Are they level?  ( A great way to check this on the line is to find a level spot and compare two bottles against each other by spinning one bottle next to the other – is there a rise or fall in where the two labels meet?).

Conformity:  If the line used has many “heads” or stations be sure to compare the products from each station.  Are conditions equal and appropriate coming from each head?  If possible identify the problematic area and help the technician zero in on the problem.

Listen (One of the absolute best tools, even with ear protection):  Listen and use your ears while monitoring the line and while wearing ear protection.  You will be amazed at how many issues/problems you will notice simply by listening and hearing machines malfunction.  Examples of this could be the corker, vacuum assist to the corker, missed capsule application, bearings “singing” on foil spinners and other motors.  You will hear labeler mishaps.  Many air functions, solenoids and motor noises can be your first clue as to what machine to scrutinize and when.  Find the rhythms of your individual line and look for miss beats or out of ordinary sounds.

Smells:  Another area to be alert is our refined winemaker noses!  We seem especially adapted to smelling motors over heating, belts in distress, bottles that may have a moldy smell and corks with off odors.  Often wine that may be leaking at the bottling line can be detected by smell also but this can be less common.

Feel:  Another area I have found helpful is feel.  Feel machines as they are running properly.  Get to know their feel.  If machines are suspect of acting up – please your hand on the machine to see if the feel is the same as you recalled.  This can also be true of the track and actual floor of the bottling room.  Don’t overlook this obvious sense.

Sight:  Be sure, when the machines are running properly, to open the covers and to watch any mechanical cams, switches, chains, belts and learn what activates them and when.  Some people actually take movies/videos of the underneath of the machine so they can compare.  Be sure to keep your hands out of the machinery.  Once you have seen the machine and how it properly runs you will be better at diagnosing problems if and when they do occur.  Do where safety goggles when near the bottling line.

Manuals:  When possible have manuals on hand and ready for review.  Have a general knowledge of each machine and how to adjust it. 

Measure:  Measure anything that needs confirming to be affective.  This may include filler spout temperatures during steaming, membrane integrity after steaming, fill height level and consistency, cork insertion or screw cap tolerances, vacuum/pressure underneath the closure (see above under corks), temp of the wine, dissolved oxygen, label placement, capsule application and  the list goes on. 

Keep records:  Certainly everyday at the bottling line is a different one.  Some of this is inconsistent dry goods or packaging goods, sometimes it is the machines and other times it is the wine.  When encountering problems try and keep records as to what the issue was and suspected cause to be better prepared for future bottlings.  Fix the problems when the line is dormant or out of use if possible.

Supplier specs. – Start focusing on what is tolerable in your winery bottling process and start placing orders with suppliers detailing those specifications.   During these challenging economic times we are seeing many packaging material issues that have been frustrating to winery owners and bottling teams alike. Anything not conforming to the winery specifications supplied may give an opening for issues to be resolved favorably for the winery. 

Summary:  Be on your guard and take charge.  This is the last step while capturing, in bottle, all of your long hard work from the months and years previous.  The hard grape growing seasons forward.  This is a time to be extra critical of how the process is being done and to make sure your product has the best possible chance to be as superior and excellent as you had made it.  Speak up when appropriate, speak to operators and know when to have the line stop if the integrity of your wine is being compromised.  Make sure, also, to deliver to the bottling line a wine that is ready for bottling.  Be proactive, timely and keep a level head all while being extremely attentive that day.  Success!