By now, most winery owners have heard the buzz regarding event insurance. Sure, you know it exists, but do you really know exactly what event insurance covers and how it can benefit your clients (and you)? Event insurance is a necessity for winery owners looking to keep themselves, and their clients, protected. We recently talked with Lauren Hernandez, Senior Event Insurance Specialist at Markel Specialty insurance to learn more.
“It is probably important
to first point out that there are two different types of event insurance– event
liability and event cancellation,” states Hernandez.
EVENT LIABILITY INSURANCE
“Event liability protects
the person hosting an event at your facility,” Hernandez explained. If during their event someone causes property
damage to your winery or someone is injured and the host is liable, an event
policy will step in to provide coverage.
The coverage is typically primary over any other insurance protection. That means the event policy will pay first
before any other insurance policy.
Primary liability coverage by event hosts, such as your clients, is preferred by most venues because it helps minimize the associated risks and exposures of owning a winery. “More and more wineries are requiring their clients to purchase one-day event insurance policies for events hosted at their facility because it reduces the possibility of having to pay for an accident that is out of the wineries’ control,” said Markel Specialty’s Lauren Hernandez.
Wineries must also remember to require the host to name the winery as an Additional Insured on the host’s event policy. That way, if there is a claim made against your winery due to the actions of the host, the event policy will defend and indemnify you against that claim. It is also a good idea to require the host’s insurance carrier to be A.M. Best rated “A-” or better. That way the carrier is financially strong and likely to be around to pay the claim should one occur.
Examples of claims that
would be covered under an event liability policy can range from damage to a
furnishings such as couches, mirrors, coffee tables – even toilets and landscaping from wedding or
other event guests. Event hosts would
also be protected if someone slips, falls and gets injured at the facility if
the host was negligent. There are even
worse claims that the event host needs protection from when an over-served
wedding guest is involved in an auto accident on the way home. These situations would be covered only if the
damage or injury was the fault of your client.
Your business should have your own risk management plan which includes
liability coverage to protect you from the hosts wrongdoing.
ADDITIONAL EVENT LIABILITY COVERAGE BENEFITS:
• Limits vary by insurance
carrier, but bodily injury and property damage liability limits typically are
up to $1 million per occurrence and $2 million total per policy period.
• The venue can be named as
“additional insured” on the certificate of insurance for no extra cost.
• Host liquor liability is
included for free.
• Set-up and tear-down is
covered (within 24 hours of the event).
• If the event being held
at your facility is a wedding, an event liability policy covers the ceremony,
reception and rehearsal dinner (if the rehearsal dinner is within 48 hours of
the event).
• Many policies are primary
over any other insurance policy. This
means, if a claim were to occur, the event liability policy would pay out
before any other insurance policy and there would be no need to worry about a
potential increase in rates with a commercial business policy (as an winery
owner) or homeowners policy (as a bride).
• Protection and peace of
mind for a low cost— there are policies available that start as low as $75.
WHY SHOULD YOU REQUIRE EVENT LIABILITY INSURANCE?
It protects you. One day event insurance
policies are typically primary coverage over your commercial business policy
for property damage to your facility caused by your client’s negligence. Your
facility can be named as an “additional insured” on the certificate of
insurance often for no extra cost.
It protects your customers. Event insurance is an easy and affordable
solution that helps protect your guests from the unexpected – because when your
clients are properly protected, so is your reputation.
It’s an easy solution. More and more commercial winery insurance
policies are requiring one day event insurance for all events hosted at the
insured winery. An event liability
policy fulfills this requirement and are easy to purchase and you can direct
your client to purchase them online or over the phone in minutes.
EVENT CANCELLATION INSURANCE
Another popular event
insurance option is cancellation coverage.
Being in the event industry, you’ve seen it all. Photographers go
missing the day of the event, gifts get stolen, and hurricanes can ruin a
perfectly planned event. Event cancellation insurance is becoming increasingly
popular because it reimburses the event host for lost deposits and
non-refundable amounts if they need to cancel or postpone their special event
due to unforeseen circumstances.
Examples of unforeseen
circumstances include:
• Vendor bankruptcy.
• Accident or illness of
the bride or groom or an immediate family member.
• Extreme weather
(hurricane, named tropical storm, etc.).
• Military deployment.
• Event cancellation insurance
also covers additional expenses your client may incur to avoid cancelling their
event, and pays for other losses or damages such as:
• Lost wedding rings.
• Damage to special attire.
• Vendor no-shows.
• Lost or damaged
photography.
• Lost or damaged
videography.
• Lost or damaged gifts.
The pricing for an event
cancellation policy is a little more involved as it is based on where the
wedding is set to occur and the overall wedding budget. Policies start as low
as $130.
Exactly how much event cancellation coverage does each event need? Look a look at the chart below that outlines coverage limits based on the total overall event budget.
Total Event Budget
$7,500
$15,000
$25,000
$50,000
$100,000
Loss Of Deposits
$1,000
$1,500
$2,000
$3,000
$5,500
Photography & Videography
$1,000
$1,500
$2,000
$3,000
$5,500
Special Attire & Jewelry
$1,000
$1,500
$2,000
$3,000
$5,500
Wedding Gifts
$1,000
$1,500
$2,000
$3,000
$5,500
Extra Expenses
$1,875
$3,750
$6,250
$12,500
$25,000
Professional Counseling
$500
$650
$1,000
$1,000
$1,250
WHAT ISN’T COVERED UNDER EVENT INSURANCE
With event insurance, some
claims would be hard to disprove.
Because of this, many insurance carriers will exclude covering certain
circumstances because of the potential increased risk of insurance fraud.
Examples of circumstances
typically not covered:
• Change of heart
–Typically if either the bride or groom get cold feet and change their mind
during the wedding planning process or are at the altar and decide not to go
through with the wedding, this would not be covered.
• Known Circumstances – Previously
known issues that could affect the event (Example: planned medical procedure
delays or cancels the event).
• Lack of Funds – if the
event host is unable to pay for the planned event.
• Non Appearance – if
certain individuals (such as parents, the bride, etc.) don’t show up for the
event, the show must still go on as this would not be covered. Polies do not cover cold feet if either the
bride or groom change their mind during the wedding planning process or at the
altar and decide not to go through with the wedding.
START PROTECTING YOUR CLIENTS
It’s easy to start protecting your clients (and yourself). Request free brochures from Markel Event Insurance and provide your clients with an easy & affordable option to protect their special event. Event liability policies start as low as $75 and can be purchased online or over the phone in minutes. Visitwww.markeleventinsurance.com/grapevine to learn more!
The artistry of cooperage and winemaking is a genuine friendship. And like old friends, there is widespread agreement among coopers and winemakers that the success of most wines depends a great deal upon the barrel in which that wine is aged.
A master cooper can build a barrel with nothing but hand tools from the log to finished product. Along with that experience is a wealth of knowledge of the finer points of barrel-making, such as where to source wood as well as how (and why) different woods are used to create different wines.
Those who have spent
decades in cooperages have fashioned barrels created from woods sourced not
only from the United States but also as far away as France, parts of Eastern
Europe and even Japan. While white oak
is dominant in the cooperage industry, there are some rare uses of woods that
include acacia, chestnut, cherry tree and exclusive species. Combine the cooper’s experience with that of
a winemaker and the result is what wine consumers taste from the glass and feel
on the palate.
With some 30 years of
working with wood, few know more about making barrels for wineries than master
cooper Russ Karasch, who has taught the industry to his daughter, Heidi Korb.
The result is Minnesota’s Black Swan Cooperage, launched in 2009.
Karasch is responsible for
the company’s unique styles of barrels, including a patented HONEY COMB®
Barrel, which he invented. While most of
Black Swan’s clients are craft distilleries and breweries, Karasch is a living
library of the kind of knowledge upon which coopers and winemakers thrive. A vital part of that knowledge, Karasch says,
is an understanding of different kinds of wood,
their origin and their impact in making multiple types and varieties of
wines.
“Quercus Petraea and
Quercus Robur are European Oak, French Oak, Hungarian Oak and German Oak, as
well as other countries. Quercus Alba is
the main American Oak. However, there
are many sub-species of Quercus Alba. It
used to be (that) most winemakers preferred French Oak but, as we advance in
technology and learn what the wood does and doesn’t do, by toasting and
treating the wood in different ways, we are ending up with some phenomenal
wines using all the woods. It used to be
if you made red wine, you would use this wood, or white wine you would use
(that) wood. We are advancing in knowledge in both wine and wood, so the rules
are changing.”
It is no coincidence that master coopers like Karasch understand the language of winemakers because both professions require a blend of art and science.
Another case in point is Kentucky-based Canton Cooperage. Founded in 1933 and acquired in 1998 by Chene & Cie (owners of Taransaud Cooperage of Congac, France), the company benefits from the experience of master coopers who, with a cumulative total of more than 600 years in the business, have a keen understanding of what winemakers need and want. Canton Cooperage operates from a platform of social responsibility, sponsoring an apprentice program in local schools and partnering with American Forests, a nonprofit organization dedicated to reforestation.
Enologist Bruno Remy, Sales Manager and Vice President at Canton Cooperage, explains why the wood of choice for most cooperages is oak and why most wineries prefer it.
“Oak wood is prevailing in
the cooperage industry due to its positive physical characteristics to make
staves, to give the shape to the barrels and no leaking. Most importantly, due to its richness in many
interesting molecules, the wood will bring structure and flavors to the wines
or alcohols. In addition, the wood offers a certain porosity to allow
oxygen and other gas to pass through the staves, in and out.”
Remy points out that there
are several elements that winemakers take into consideration when choosing
barrels and the different woods used to make them.
“A barrel should have a
positive impact for the use of fermenting or aging a wine. The choice is coming from the flavors that
you will look for, size of the barrel, the percentage of new wood in your final
blend, time for aging in the barrels, cellar conditions to store the barrels
(temperature, moisture).”
Black Star Farms, located
in Michigan’s Upper Peninsula near the four-season resort town of Traverse
City, understands these multiple considerations. The award-winning, family-owned winery
sources from cooperages that provide
barrels derived from American, French and Eastern European Oaks. Winemaker and Managing Partner Lee Lutes
explains the reason for such careful diversity.
“We use French Oak
exclusively for Pinot Noir and Chardonnay, as they simply have an affinity for
one another that is time tested and consumer ‘qualified.’ We use two other primary barrel types,
American and Eastern European, for other reds, such as our Red House Red, our
Merlot or our Cabernet Franc. These two
types of oak tend to have more spice and tannin to them than French, which
works well with these bolder red
wines.”
In the case of barrels
made from American and Eastern European Oaks, Lutes adds that the attention to
detail used to select these types of barrels is driven by knowing the
cooperages that produce them and the source of the actual wood.
“We tend to prefer
American Oak that either comes from Minnesota or Missouri, as these tend to be
tighter grained barrels (from slower growing trees), but with good spice. The EE (Eastern European) barrels we prefer
tend to come from Hungary, as they provide some cocoa and coffee tones that are
very complimentary to deeper red wines.
Different coopers source from all of these regions, so there is much to
choose from for wood sourcing. There are
specific coopers we prefer, but most in the industry are quite good and make
solid barrels.”
Jeremy Santo, Winemaker
for Washington’s Mercer Wine Estates in Yakima Valley, agrees. The
fifth-generation winery sources barrels from 14 cooperages. Santo emphasizes the mutual trust and respect
that winemakers and cooperages share.
“Why do I use the
cooperages I do? The obvious answer is
they make amazing barrels. But the
relationship is the most important part.
My favorite cooperages are also my friends. This allows for a relationship that you can
collaborate and ask questions on what’s the best type of barrel for which
wine. The coopers know what they are
doing. They guide me in the direction to
make the best wines.”
Santo echoes a recurring
theme shared by Lutes and Remy when it comes to selecting which barrels to use
for different varieties and even styles of wines. The type of wood used, size
of the wood grain and toast levels are all key factors, he says.
“I like to use French Oak primarily on higher quality fruit. French Oak tends to add nice sweetness to the mid-palate of wines without overt oak aromas and flavors. French Oak allows the fruit of the wine to shine as well as providing sweetness to the mouthfeel. The American Oak I like also adds a lot of mid-palate sweetness but has more of the roasty, toasty, marshmallow and vanilla characteristics that’s perfect for mid to entry level wines. For higher tier/reserve wines, I lean more towards French Oak (tighter grain wood). The tighter grain wood allows for longer aging of the wine. The oak impact is gradual/slower, so the wine can age longer and develop flavors/aromas over a longer period of time. For reserve quality wines, you have more time to age unlike the $15 to $20 bottle of wine which is made to drink ‘now’.”
The question of using staves
is met with mixed results, despite the lower costs as compared to barrels.
According to Remy, staves can be installed in tanks, mimicking the use of
barrels, adding micro-oxygenation. He
adds that the actual quality of today’s staves is much higher than, say, 20
years ago, due to technology and the knowledge of how to select better oak
wood, how to season the wood and how to apply precise toasting.
In contrast, Santo opts
out of using staves and prefers oak cubes, citing ease of use and faster more,
efficient extraction of oak impact of the wine, while keeping aromas and a nice
feel on the palate intact.
As for oak barrel alternatives, Santo favors using oak cubes in tanks to achieve more oak impact on lower priced wines.
Another wood barrel alternative is Karasch’s latest patented invention, called Squarrels. ® The play on words describes a customizable, square, steel, stackable barrel, using wood only where it’s needed, saving winemakers time and money.
Most of these experts agree that over time, a
traditional barrel loses its potential to release flavors in wine roughly after
four to six years of use. When barrels
become “neutral,” some wineries simply use them to add the breathing factor. Once retired from winemaking, barrels can be
reconditioned for spirits, flooring or even furniture.
While one can still find wine producers who rely on paper ledgers, Excel spreadsheets and other pen and paper methods to manage their business, wine producers are increasingly turning to technology to help them perform these tasks. The proliferation of software explicitly geared to the wine industry has streamlined how many wineries operate. This software can help winemakers better manage a range of functions starting with regulating environmental conditions in their vineyards to performing a variety of eCommerce functions, as well as helping to enhance the consumers’ experience in their tasting rooms.
Microworks Wine Software
Microworks Wine Software was formed in 1991 to address the lack of technology servicing the wine industry. Currently, this software includes a suite of tools that help wineries manage their direct-to-consumer sales. The software takes complex tasks and simplifies them for efficiency and accuracy. With Microworks Wine Software, all details of sales, customers and inventory are tracked and reported to management so they can execute informed decisions.
These tools include
visitor center tracking, wine club and eCommerce sales, customers and
in-ventory, as well as helping with accounting, fulfillment and alcohol
compliance. This software suite allows wineries to manage their retail
operations by tracking sales data and then issuing re-ports. Tasting room
managers can track visitors and staff, and wine club managers can oversee the
wine club and its members. Inventory staff can track products across multiple
warehouses while managing wine shipments and pickups, and accounting can track
and reconcile all sales and inventory activity with complete audit trails.
Additionally, marketing managers can track all customer activity, including which
wines consumers buy, when they buy their products, how fre-quently they
purchase wines and the channels through which they make these purchases.
When a wine producer
purchases the software, Microworks performs an initial onboarding pro-cess.
Then apps can be downloaded by the user on devices through the Microworks
website, Ap-ple’s App Store or Google Play. Users can take advantage of
Microworks certified training ser-vice—a one-on-one instruction for winery
employees that ensures they’ll get the most out of what the software has to
offer. Online documentation and tutorials are also available.
The latest release of
Microworks Wine Software’s iPad mobile POS offers an offline mode, so users can
now access this software without having to connect online. When the software
gets used offline, transaction data is stored and then uploaded to the server
when the device is back online. Currently, they are working on an automated
email system to simplify and tailor custom-er communications to drive more sales.
Sensaphone
Sensaphone software complements the hardware that measures temperatures, humidity and other environmental conditions in the vineyard. Since its founding over thirty years ago, Sensaphone has transitioned from having its software utilize traditional alarm auto dialers hooked to phone lines to a cloud-based platform.
Using this software allows producers to know the exact temperature in the fields, and to be alarmed if the temperatures sink too low. In the case of ice wine producers, it allows them to pro-tect the grapes during cold temperatures.
This software allows wine
producers to see the temperature values of their vineyards in real-time, set
high and low alarms, and datalog those values. These features monitor
environmentally sensitive assets and can be programmed to send emails or text
messages to users when those as-sets are in danger. Also, it offers real-time
visibility and the ability to datalog values for a com-parison over time.
Sensaphone products are
easy to install and program. It is a one time purchase with upgrades in-cluded
with the purchase price. Also, they feature an app that allows producers to
view data from any mobile device.
VineSpring
For the past eight years, VineSpring has offered winery eCommerce, allocations and wine club management software designed for wine producers who sell directly to consumers. Through this software, wineries can easily manage their club and allocation offerings, saving administrators time, and providing wine club members with tools that are easy to access. Online tutorials allow wineries to maintain the software on their own.
VineSpring can connect to
many third party programs, and natively supports integrations with MailChimp,
ShipCompliant and Square POS. Also, they have partners like WineGlass Marketing
that have built powerful integrations, including automatic sync with Quickbooks
desktop. Mov-ing forward, they look to expand the options for wine clubs,
especially surrounding automatic recurring billing.
VinNOW
Created in 1999, VinNOW software was specifically designed for wineries to manage customer data and purchase histories, tasting room sales, wine clubs, multiple location inventory tracking and wine production. Wineries can use this software on a single stand-alone computer, a tablet, or on a network multi-point of sale operation. Also, as this software does not require a good in-ternet connection, it works well for those wineries located in regions that do not have reliable internet access.
The software includes a
customer management system, point of sale, wine club automation, eCommerce,
inventory management, reporting and order processing with QuickBooks,
compli-ance, email and shipping integrations and EMV credit card processing.
Also, bulk wine tracking and custom crush billing module are available. When
necessary, features are added that respond to industry changes, such as the new
California District Tax.
For those wineries
offering wine clubs, the software’s one-step wine club processing includes
shipping labels for UPS and FedEx. Also, GSO shipments can be tracked through
VinNOW. In addition, the software has options for easy email and postcard
marketing campaigns. It also inte-grates with QuickBooks desktop or online
versions, web shopping providers, and ShipCompli-ant.
VinNOW can be
self-installed and maintained and includes a comprehensive help database. New
customers are encouraged to go through the free training program, so they
understand the full capabilities of the software. Customer service is available
seven days a week.
Winetracker.co
Winetracker.co is a wine tasting app launched in 2017 that’s available for iOS and Android, as well as the web browser.
Users snap photos of the wine they are drinking and then use the app’s four sliders to give their personal opinion on the aroma, taste, finish and overall impression of the wine. The app then auto-generates a wine expert score (50 to 100 points) based on these four sliders. Optionally, the user can use “TouchTags” to describe the unique elements they detect in the wine. As they continue using the app, they end up with a visual history of the wines they drink, similar to a “Pinterest for wine.”
The second primary feature of this app is a multi-person, real-time experience called Group Tasting. Anyone hosting a tasting event, whether a winery, event planner or party host, can create a tasting list ahead of time. At the event, attendees can collaboratively taste the wines together through the app. They can see each other’s wine scores and comments popping up on the screen in real-time. Also, there’s an optional Blind Tasting mode for the Group Tasting feature.
According to Tony Jacobson, Founder of Winetracker.co, wineries who use the Group Tasting feature increase their wine sales. He ascribes this to the fact that when people taste wines with Winetracker.co, it causes a fuller engagement with each wine they sample. “When they are pondering the aroma, taste and finish of a wine, they get a much better sense of how much they like or don’t like it. This creates a deeper connection with the wine they’re drinking.” Winetracker.co is willing to schedule one-on-one consultations with wineries and event planners to help guide them through the process of creating Group Tasting events.
In the future, the company
plans to launch tasting groups similar to Facebook groups, where us-ers can
join and automatically be notified whenever someone adds new wine scores. These
groups can be public or private. Also, they plan on adding the ability for
users to follow individ-ual people on Winetracker.co. Along those lines, users
can automatically receive notifications whenever people they follow taste a new
wine. Winetracker.co is also looking to enable wineries to have conversation
threads or email conversations with the people who participate in their
tast-ing events.
As technology continues to evolve, expect to
see these software companies continue evolving to meet the needs of
21st-century wine producers.
Sustainability is no longer a buzzword. Perhaps in the winemaking industry, it never really was. Growers frequently enact innovative solutions focused on water conservation, renewable energy and waste-free practices. For example, major producers such as Fetzer Vineyards and Shafer Vineyards adapted green solutions as far back as 1999, and organic growers go back even further.
The initial costs of
sustainable integration—easier for new projects rather than through
retrofitting, although some effective solutions are viable for existing
estates—provide significant return-on-investment over the life of the buildings
and grounds. Now more than ever, it’s easier for progressive vineyards and
wineries to take advantage of the latest eco-friendly technology and create
properties that reflect their integration with the land, and honor the origin
of their products.
“They know sustainable-building strategies are good for the climate, good for their site and can make a huge financial impact when considered over the life of a building or business,” said Jon Gentry, owner and partner of goCstudio architecture + design in Seattle, Washington. “It’s our intent that projects use limited natural resources responsibly, and each design enriches its site and cultural landscape.” won an American Institute of Architects’ Emerging Firm Award in 2018.
Learning About Potential
Solutions
Gentry told The Grapevine Magazine that clients benefit most by consulting with sustainability experts when they’re first curious about this direction, which helps determine site needs, budget and program. “Having solutions thoughtfully considered from the beginning leads to designs that function and look better in the end. These solutions might include natural daylight and ventilation, solar panel arrays, green roofs, locally-produced materials, geothermal heat pumps and striving to use materials that will be low maintenance and stand the test of time,” Gentry said.
As one example, goCstudio designed several site-specific sustainable strategies for COR Cellars in Lyle, Washington. “The site has strong winds that funnel up through the Columbia River Gorge. It was important to deal with this element, so we created a courtyard building that provided a protected entry and event space,” Gentry said. “We also bermed the building into the natural sloping hillside using the earth’s mass to help insulate the structure. Finally, we created a flat, low-profile roof that allowed the owners to easily install a solar panel array or a built-up green roof.”
During information
gathering, all the terms and concepts for sustainability options might be a
surprise. For instance, LEED stands for Leadership in Energy and Environmental
Design. LEED is the blueprint to “create healthy, highly efficient and
cost-saving green buildings,” according to the U.S. Green Building Council,
which oversees the various levels of LEED certification and its rating system.
One large step beyond that is the International Living Future Institute, or ILFI.
This nonprofit implements even higher green building standards, which include
living building certification, petal certification and net zero energy building
certification.
There are varying degrees of net zero status. Dwight Schumm is a senior mechanical engineer and managing principal at Design Engineers in Cedar Rapids, Iowa. His firm designs building systems—heating, cooling, plumbing, power and lighting—and its net zero headquarters is LEED and ILFI rated. The New Buildings Institute, a nonprofit that promotes better energy performance in commercial buildings, has Design Engineers on its 2019 list of only 580 “getting to zero” certified, verified and emerging projects in the entire United States and Canada. The firm designed another net zero building on that list: Indian Creek Nature Center, also in Iowa, and winner of the 2019 High Performing Buildings Technology award.
“Net zero describes a
number of different things,” Schumm said. “A net zero energy building means it
produces as much energy as it uses—that would be total amount of all types of
energy. So, for example, if you have natural gas consumption, you’d need to
produce enough energy to offset that. Net zero electricity is separate from net
zero energy, but most rated buildings with this intent are electric, so it’s
usually the same thing,” he said.
Net Zero Water LeadsConservation Efforts
Schumm also noted that
properties can strive for net zero water management. A primary concern for
vineyards, this means all water used onsite comes from a well, and all
rainwater that falls on a property stays there—there’s not a storm runoff
removal system. “With our office building, even though much of the area is
covered with pervious material so water can infiltrate, we also designed an
infiltration basin—sometimes called a bioswale,” he said. “Instead of holding
and then moving water away—which often happens around many non-pervious parking
lots—this basin is designed to ease water into the ground.”
Allen Rossignol is president and CEO of Edge Architecture in Rochester, New York. As a certified LEED professional, Rossignol guides his firm to apply green and sustainable practices to winery and craft beverage projects throughout the Northeast, such as Red Tail Ridge Winery in Penn Yan—New York’s first LEED Gold Certified winery—and the FLCC Viticulture and Wine Center. Rossignol provided some additional specifics for water conservation.
“The amount of water used
for cleaning is a large concern for all wineries. We often suggest a metered
water system so owners can be aware of their consumption and make efforts to
reduce the amount used,” he said. “Further, as wastewater from the winemaking
process is large in quantity and has high levels of BOD (biochemical oxygen
demand), there are two solutions: 1) hold and treat or 2) septic systems. With
the first solution, we successfully reuse the water for irrigation of the
vineyards. The second allows natural replenishment of aquifers.”
Architects and engineers aren’t the only sustainability professionals thinking about water management. Matt Milby is the designBUILD project development manager for Morton Buildings, based in Morton, Illinois. The company pioneered green construction practices with its first building in 1949, and implemented early advances in Energy Star and LEED certification in its industry. “Renewable energy initiatives such as water reduction or advanced heating and cooling systems that also provide cost-savings are important to wineries,” he said. “Also, low-flow water fixtures are easy to find and significantly reduce water usage without sacrificing service.”
Your Partnership With Architects, Builders and Engineers
If you’re passionate about
sustainability, sourcing the right design and building partners are essential
to your success. “We encourage owners to first connect with an architect whose
work they’re drawn to,” Gentry said. “Architects generally have strong
relationships with talented builders that do great work. Make sure it stands up
to how they’re presenting their services and that sustainable strategies are
built into their processes from the beginning.”
“An experienced winery
architect can help streamline your facility, resulting in better operational
flows and a more efficient building,” Rossignol added. For Red Tail Ridge,
Rossignol and his team “included the use of a geothermal heating and cooling
system that serves the building and the winemaking process equipment, which is
unique to the wine industry,” he said. “Natural ventilation and wastewater
harvesting are additional features that contribute to the green design.”
Combined with high-efficiency windows and skylights to maximize daylighting and
a white-reflecting roof to reduce temperature, Rossignol said the winery’s
energy efficiency is 40% greater than baseline equivalent buildings.
“Consumers are looking for
more out of their wine experiences. A knowledgeable winery architect can help
you create the destination they’re seeking, and a well-designed winery or
tasting room is the key to increasing traffic and interest in your winery,”
Rossignol said.
“The absolute, number one
thing any user can do to be sustainable is minimize how much energy they use,”
Schumm told The Grapevine Magazine. “To incorporate these
principles and goals, the earlier you start, the better, so hire engineers and
other design professionals with the appropriate sustainability expertise. This
is really critical because, in the beginning, you have a blank slate. But too
far along in the process, more constraints exist, which limit your
flexibility,” he said. However, if you want renewable solutions for an existing
facility, Schumm advised getting a feasibility study and an energy audit, and
making adaptations where you can.
Design Engineer’s website
has articles featuring real-world numbers demonstrating where to find net zero
savings. Not surprisingly, the primary category contributing to energy
efficiency is conservation. “Methods such as daylighting, energy recovery for
ventilation, good passive solar design, southern exposure with appropriate
shading and so on. Then, another quarter of the savings comes from geothermal
heat pumps,” he said.
Rossignol agreed. “Heat
recovery systems such as ventilation systems re-circulate warm air, so energy
used to heat buildings isn’t wasted. And geothermal has drastically proven to
reduce heating energy and, for wineries, in particular, can be integrated with
the cooling systems for fermentation,” he said.
The structure that houses
these systems shouldn’t be an afterthought. For example, Morton’s steel roofing
and siding has high levels of recycled content and is completely recyclable at
the end of its lifespan. “By combining sustainable building practices and our
Energy Performer insulation system, many of our buildings are able to achieve
national recognition for their efficiency,” Milby said.
Morton’s post-frame
construction allows for continuous insulation between structural elements. “So
plumbing, electrical and HVAC systems are placed between the insulation and in
the finished wall or ceiling. This configuration results in no penetration of
the insulation and an increase in energy efficiency and overall insulation
performance,” Milby said. He added that cool roofing or high-reflective roofing
products reduce the “heat island” effect on a building, and lowers energy use
and costs. Foundations with concrete lower pier columns eliminate wood
contacting the ground and wood treatment and require less excavation and less
concrete. Morton even utilizes sustainable sourcing.
“Long before the U.S.
Green Building Council created LEED, Morton Buildings was already applying a
number of sustainable building practices. Since 1949, we’ve used timber frames
manufactured from renewable wood sources. To conserve energy and natural
resources, the materials used in most Morton buildings are manufactured within
500 miles of each building site,” Milby said.
What’s On the Horizon
Now that sustainability
solutions are more attainable, there are numerous trends to consider for your
operation.
“I think the rise in mass
timber structures is very exciting,” Gentry of goCstudio architecture + design
said. “We’ve used cross-laminated timber components on a smaller scale—like our
renovation of the Substantial space in Seattle. Mass timber structural
components require less than one-fourth the carbon emissions to produce
compared to steel or concrete components,” he said. “There’s an elemental
beauty to cross-laminated timber panels and glue-laminated structural beams
that’s compatible with a lot of the winery spaces we love to imagine.”
Milby of Morton Buildings
is thrilled to see the trend of reusing old building materials in new
buildings. “It connects the new and the old with really interesting and popular
interior designs. At the same time, it’s helping the environment: fewer items
put into landfills and less harvesting of materials, such as woods and
minerals, along with the impact of not manufacturing new building products,” he
said.
Schumm of Design Engineers is hopeful about energy storage and electricity. “I think thermal and electricity storage is becoming more important and cost-effective. Soon, you’ll have electricity storage onsite to dispatch when it’s most advantageous for you. This trend will grow significantly,” he said. “Additionally, electrify everything. If you’re able to transition from any kind of combustible—natural gas, diesel, anything—to electric, you’re reducing C02 emissions as well as relying on 100% renewable energy.”
“The
consumer appetite for environmental design and interest in learning about the
process of beverage making has pushed wineries to evolve into more of a
destination than ever before, and it’s been really great to see how this
industry embraces this new role,” said Rossignol of Edge Architecture.
Whether we’re considering leaf pullers, harvesters, sprayers or some other piece of machinery, good vineyard management starts with the right equipment. Properly matched vineyard equipment helps necessary tasks get completed on time, and are crucial to running and maintaining the efficient operation and growing conditions that lead to a successful harvest. Additionally, having the proper vineyard equipment available saves time and money by reducing the number of working hours while contributing to larger, more bountiful harvests and heartier crops.
However, the proper vineyard equipment,
(including the amount you’re willing to spend on them), can be subjective, so
it’s always recommended that you research and get the equipment that’s best
suited for your specific situation.
Labor
And Resource Saving Spray Systems
“The right equipment for your vineyard always comes down to your needs,” says Willie Hartman, President and owner of Oregon-based On Target Spray Systems, a manufacturer of next-generation electrostatic sprayers. “Your most used, and subsequently, most needed, vineyard equipment indicates how important the task is to you and your vineyard. So, in our case, we ask how important spraying is compared with the other tasks in your vineyard management process.”
The answer depends on the amount of time and
money spent on spraying throughout the production cycle. A significant issue
over the past couple of years, especially on the East Coast, has been the need
for more disease and pest control, and vineyards have increased their spraying
to combat these issues. Vineyard managers have been tasked with finding the
most efficient way to achieve consistently better coverage with the least cost.
On Target electrostatic sprayers can provide just that, leading to better
results than standard sprayers.
“Now, more than ever, it’s extremely important that you use a sprayer that provides complete overall coverage,” said Hartman. “It’s easier to control mildew early on when you’re able to apply spray coverage both over and under leaves while also wrapping around the vines themselves. When you spray with electrostatic sprayers, you’re using less water while saving time and money.
“A standard sprayer will typically use one hundred gallons per acre sprayed, whereas our electrostatic sprayers will only use twenty gallons over that same area. We can spray ten acres versus a standard sprayer’s two acres using the same two-hundred-gallon tank. That’s an opportunity to immediately reduce your tank fills by 80%. Add in the time lost because of return trips to refill the tanks, and you can see that valuable time can be recovered using electrostatic sprayers. Less overall material to spread means less time spent on the tractor, saving money on fuel and man-hours. By using less water, we concentrate our spray, resulting in less runoff, minimal drift, and improved chemistry coverage. This increased performance is especially important in having the ability to move away from systemic treatments and stay with contact treatments such as those needed in the organic farming industry.”
Along with the extended use available with
electrostatic sprayers, Hartman tells The Grapevine Magazine that it’s vital to
perform an exact application when spraying, so from their largest to smallest
sprayers, they all leave the shop with rate controllers.
“The most important maintenance issue for
sprayers is rinsing after use,” said Hartman. To make this as easy and
economical as possible, his sprayers all have onboard rinsing tanks that are
accessible with the flip of a switch. Additionally, all of the components
needed for droplet charging in electrostatic spraying are separately enclosed,
including liquid, air and the twelve-volt power source.
“And now, we’re making our sprayers smaller,
lighter and even more economical,” says Hartman. “This is great news for
smaller growers because our three-point trailered electrostatic sprayers can be
used with smaller tractors. A very popular model is our one-hundred-gallon
trailer that only requires 20 horsepower to operate. And when you use smaller,
less expensive tractors combined with smaller sprayer units, you get the
additional benefit of less ground compaction.”
Multi-Use Equipment For Efficiency And Cost Savings
Bill Reiss, owner of BDI Machinery Sales Inc., has seen it all. So he knows that there’s a lot that goes into the management of a vineyard, including the inherent belief that when it’s all said and done, it’s always the vineyard manager’s personal decision on how best to run their vineyard. Reiss doesn’t want to sell anything that won’t help the vineyard manager improve the land.
“It’s not just about the right equipment,
it’s about the equipment that’s available to you,” says Reiss. “The equipment
that you want may not be economically feasible if you are a small vineyard. You
won’t have the spending money to invest in a lot of specialty equipment, so
it’s imperative as a supplier to always be looking for time and labor-saving
ways to get things done. Some vineyard equipment may be good in one region but
not useful at all in another growing region. Most decisions are made based on
the timing of the growing and harvesting process. There may be tasks that
you’re willing to do by hand, but is that going to put you behind on other
critical tasks? Can you get it done on time? Are there better ways to get that
task done and stay on the critical timeline of your vineyard management?”
Reiss and BDI Machinery stay focused on tools
that have multiple, useful functions for vineyard owners. Their leaf pullers come
as attachments, hooked onto a frame that can be attached to a tractor.
“The latest trend in leaf pullers has been to
use the air impulse pruners,” says Reiss. “A controlled blast of air shatters
the leaves away from the plant. These have been around since the nineties, but
better technological developments have made them trendy now, especially on the
East Coast. Earlier models included a simple fan that used velocity to suck
leaves into an impeller blade to be chopped up, and the double drum leaf pullers,
still being sold and in use today.”
With additional attachments available that
can be attached to the same frame, a single tractor can now be used for hedge
clearing, pruning and suckling removal. Once these implements are hooked up to
a tractor with hydraulic capacity, they’re controlled with a joystick for
safety and comfort.
“Now you’re helping your clients have access
to more machinery at less cost,” says Reiss.
“They’re only having to buy the attachments that they need for their
specific vineyard process. This is good for immediate tasks, but also future
planning. Additional attachments can be purchased later on an as-needed basis,
knowing that they already own the base frame and tractor needed to use them.”
Reiss tells The Grapevine Magazine
that
rather than concentrating on one single piece of equipment, BDI is always on
the cutting edge of new technology regarding all vineyard machinery. They are
continually looking for new ways to be economically and environmentally
friendly while creating the ideal tool for grape growers and wineries.
Whether Large Or Small Operation, Grape Harvesters Save Money And Time
Jesse Willms, Operations Manager, and Duarte Oliveira, Sales and Customer Relations forLakeview Vineyard Equipment Inc., know the importance of keeping costs down in the vineyard. Anchored in this knowledge is the belief that every vineyard, no matter the size, should look to mechanical harvesting as a way to reduce labor costs and increase the quality of their harvest.
“Mechanical grape harvesters perform great
for all grape varietals,” says Willms. “Some adjustments need to be made
depending on the grape that is going to be harvested because each variety does
pick differently and at different stages of ripeness. With the correct setup,
modern harvesting machines can provide 100% picking rates and zero loss.
“With the increased potential of finding
quality used harvesters, as well as the many choices when buying new, there are
reasonable options for all sizes of wineries and growers to take advantage of
mechanical harvesting machines,” says Oliveira.
However, before choosing a grape harvester,
consideration has to be given to a vineyard’s unique set up and layout. There
are different machines to handle the different growing styles, including Geneva
Double Curtain, Smart-Dyson or Vertical Shoot Positioned. The terrain and
landscape slope of a vineyard will dictate the need for a two-wheel or
four-wheel-drive system. The correct choice of harvester for a vineyard will
also be determined by the width of the rows, as there are different sized
harvesters made for both wide and narrow spacing needs.
“Once the size of the grape harvester is
determined, look for a harvester with on-board destemming and sorting,” says
Willms. “On-board sorting equipment has evolved recently and continues to be a
focal point of the mechanical harvesting function. With on-board sorting, you
lower the amount of interaction between material other than grapes (MOG) and
recently harvested fruit. Just as importantly, the sticks, leaves and stems are
left in the vineyard to be worked back into the soil. Providing MOG free grapes
with low maceration is the goal, even in challenging post-frost or rotten fruit
conditions. Ultimately, with the ability to automatically remove the MOG, you
increase the ability to deliver your harvest in a more efficient and timely
manner.”
“Adding to their affordability and usefulness
factor, harvesters can often be used as over-the-row tractors as well, making
them functional for year-round use,” says Oliveira. “The picking head can be
removed from the tractor base of the machine and be replaced by different
attachments like a pre-pruner, leaf remover or multi-use sprayer.”
Oliveira tells The Grapevine Magazine that new developments have shown up in automatic steering and on-board yield mapping as well. The automatic steering is guided by a vineyard’s physical layout and landscape properties, while on-board yield mapping provides the grower with comparative, year-to-year data identifying the parts of the vineyard that are cropping heavier than others. Vineyard managers then use this information to make well-informed decisions about pruning, thinning and fertilizing for the following growing season.
Owning and running a harvester does require a bit of maintenance simply because of the number of moving parts involved, and since harvesting is a time-sensitive task, you don’t want to run the risk of breakdowns. Seasonal maintenance is always recommended, including belt and chain tightening, greasing all bearings and bushings, and annual maintenance of the on-board engine.
Grenache has the
distinction of being one of the world’s most widely planted wine grapes.
Addi-tionally, this versatile wine pairs very effectively with food. Grenache
wines have diverse levels of texture and depth with a slight spiciness that
work well with a wide range of braised, grilled and stewed meats, as well as
the milder styles of Asian cuisine.
As part of Feast Portland 2019, a regional
food and drink festival with international appeal, Hoke Harden, SWE Certified
Spirits Educator, offered an industry presentation into European Grena-che
wine. He focused on those wines that range in cost from $10 to $20. At this
reasonable price point, Harden describes the wines as “not wine you take home
and save, but wine you take home and drink.”
Although lower priced Grenache may not be the
sort of wine one ages in a cellar, these wines have a distinguished history
that belies their price tag. Carbon dating of seeds and leaves discov-ered at
archeological sites indicate Grenache was planted as early as 153 BCE. Most
likely, Gre-nache originated in the region of Spain now known as Aragon, where
it goes by the name Garna-cha. However, some have speculated the grape
originated in Sardinia, where the grape is called Cannonau.
As these vines flourish best in hot, sunny
and dry conditions, the Mediterranean climate proved to be ideal for growing
them. Grenache vines were then planted in Catalonia and then in places outside
of Spain that were under the Crown of Aragon, such as France, Corsica, Southern
Italy, Sicily, Croatia and Greece.
The old vines currently growing in the region
can be over one hundred years old. They tend to produce a finer and more
complex wine than Grenache produced in areas where the vines are much younger.
The grape comes primarily in three versions:
red—Grenache Noir, white—Grenache Blanc, and a version of white known as
Grenache Gris. The Grenache Noir is round and smooth with notes of prunes,
cherries and other red-pitted fruits. Conversely, Grenache Blanc has a
combination of floral, fruity and herbaceous notes and fresh aniseed licorice
flavors for a fleshy, mellow wine of medium intensity, a medium to high acidity
and high levels of alcohol. The Grenache Gris pro-duces pale rosés and
mineral-driven whites with copper hues and citrus notes that are fleshy, round
and elegant.
Additionally, there are two less common
Grenache grapes—the Lledoner Pelut (black) and Gar-nacha Peluda (hairy). The
Lledoner Pelut, which is a cousin to the Grenache Noir, is very similar but has
more structure and a bluer color. Garnacha Peluda, which gets its name from its
hairy leaves, has a lower alcohol content, medium acidity, aromas of red
fruits, and rapid oxidation.
From these varieties of grapes, winemakers
can produce a vast array of wines ranging from light- to full-bodied red or
white wines, as well as rosé wines, fortified wines, natural wines and
spar-kling wines. Each of these varieties is highly sensitive to the growing
conditions of a particular region. Depending on the soil, climate and
elevation, wines produced from these grapes can vary dramatically from one
appellation to another. For example, one appellation may yield full-bodied,
black-fruited wines, while a nearby region produces a more light-bodied wine
made with red fruits.
While Grenache can grow in a diverse range of
soils, the vines respond best to the schist, lime-stone and clay soils
abundantly found in Northeastern Spain and the Roussillon in southern France.
Here the grapes’ tight clusters make it a perfect choice for these hot and dry
soils. How-ever, the same tight grape clusters make Grenache prone to downy
mildew and bunch rot when grown in humid or rainy locations. Also, as the
grapes ripen relatively late, they work best in very warm regions.
Another positive attribute of these hardy and
vigorous Grenache vines is that they use less natu-ral resources than many
other vines. In fact, Grenache could be seen as the world’s most eco-friendly
and sustainable grape. As this grape adapts to arid weather conditions, it can
be grown using environmentally friendly vineyard practices. For instance, these
vines are not dependent on rainwater because their roots can delve deep into
subterranean water tables. In addition, the plant has a robust wooden frame
that is drought and disease resistant. Often Grenache is grown as a
free-standing bush with its strong, sturdy trunk able to survive in strong
winds. In consideration of all these attributes, in 2011, the World Climate
Change and Wine Conference with Kofi An-nan in Marbella, Spain recognized
Grenache as a product well prepared for climate change.
Currently, over 90 percent of Grenache grows
in Spain and France. The regions have been certi-fied in two European Union
quality schemes: PGI (Protected Geographical Indication) and PDO (Protected
Designation of Origin). The EU established these schemes in 2012 for agricultural
commodities to ensure that the products originated in this particular region.
Also, these schemes ensure that the product has been produced in accordance
with European agricultural production methods that focus on nutrition and
health, food safety, traceability, authenticity and labeling.
Five PDO vineyards in Spain specialize in the
Grenache grape variety: Somontano, Terra Alta, Cariñena, Calatayud, and Campo
de Borja. Within these regions exists 5,500 wine growers and 144 wineries, with
Grenache repenting about 40% of their vineyards. (Other varieties are
Tem-pranillo, Cabernet Sauvignon, and Syrah). Rosé and White Grenache is grown
in the Terra Alta PDO, while Red Grenache is the main variety grown in the
other four PDOs.
Roussillon in France houses 2,200 winemaker
families, 25 co-ops and 350 private cellars. The varied topography of this
region produces a wide variety of Grenache grapes that can create a range of
wine styles, including dry still wines and fortified sweet wines.
Most of the reviews about Grenache wines tend
to focus on blends such as the Châteauneuf-du-Pape wine blend from France’s
southern Rhône Valley. French winemakers discovered this va-riety in their
search for a grape that would add alcohol, body and fruity flavors to their
existing wines. Other noted blends made using Grenache can be found in
Gigondas, and in the Priorat reds produced in the Priorat county, situated in
the southwest of Catalonia in the province of Tar-ragona. Many of these wines tend
to carry a significantly higher price tag than the moderately priced wines
highlighted by Harden, with select bottles garnering a price as high as
$800.
Although the busy days of harvest are now behind us, there isn’t
much time for vineyard staff to sit back, relax and enjoy the fruits of their
labor. Now begins the important task of pruning, and winter is the ideal time
to separate healthy wood from the dead and damaged. Whether you’ve just started
vineyard operations or have been running a vineyard for decades, it never hurts
to be reminded of the best dormant pruning practices and learn about emerging
technology to make this vineyard task easier.
The Purpose of Pruning
Dormant pruning is
critical to grape growing because it maintains the training system, allows
operators to select fruiting wood, and manipulates the quality of fruit
produced. It helps maintain vine form, regulates the position and number of
shoots on a vine, improves fruit quality, stabilizes production and improves
bud fruitfulness through careful bud placement and selection. Pruning is also
an opportunity to get control over weeds, identify vine diseases and address
pest concerns before they become significant issues.
When to Prune
As a general rule, dormant
pruning can be done anytime between leaf drop in the fall and bud break in the
spring. Vineyards around the country may start pruning right after Thanksgiving
into mid-December, but this tedious job usually extends through March. Some
vineyards wait until January to begin their dormant pruning because this is
when the canes become woody.
Jordan Lonborg,
viticulturist at Tablas Creek Vineyard in Paso Robles, California, told The Grapevine Magazine that his vineyard chooses when to prune largely based on weather.
“We typically start
pruning in January,” he said. “But the majority of pruning takes place in
February and March.”
Vineyards may postpone
pruning to assess cold injury better and adjust pruning levels to compensate
for losses. Double pruning is sometimes used to avoid spring frost injury.
However, the availability of labor in the winter months has a big impact on
when vineyards do their pruning as well.
“Pruning your grapes too
early in the season is a mistake that novices make that can result in no fruit
production,” Randy Killion, president of Zenport Industries in Sherwood, Oregon told The Grapevine Magazine. Zenport manufactures and markets professional and consumer
specialty horticulture tools and supplies for the lawn and garden, landscape,
irrigation and agriculture markets.
“If low temperatures and strong winds follow pruning, it’s very
possible that the pruned parts will freeze,” Killion said. “This will make you
lose all or part of your crop. Therefore, it’s recommended that pruning is
delayed until February.”
Types of Pruning
Cane pruning is most
commonly used for grape varieties that have low natural fruitfulness on the
basal buds. This type of pruning requires vineyards to replace the one-year-old
canes annually.
Spur pruning is most often used for high fruitfulness varieties and is relatively easy to do. This is the most popular method of pruning among vineyards today, particularly for grape varieties like Merlot and Cabernet Sauvignon.
Meanwhile, head training
is sometimes practiced by vineyards without trellising. While this practice is
economical, it’s important to watch for rot and mildew, as well as congested
canopies that can topple under their own weight.
“We spur prune the
majority of the vineyard because 65% of the vineyard is on trellis,” said
Lonborg. “Ten percent of the vineyard is cane pruned as well. A majority of the
cane pruning occurs on Syrah and Viognier due to their vigorous nature.”
Disease Identification and Weeding While Pruning
Grapevine diseases can
occur at any time of the year, but the winter season is a useful time to check
plants for abnormalities and take action. Some of the most common diseases that
grapevines experience are Pierce’s disease, phylloxera, downy mildew, powdery
mildew, gray mold, black rot and vine truck diseases such as Petri disease and
black measles.
While pruning, keep an eye
out for discolored lesions that are red, brown or black. Other signs of disease
are curling leaves, weak or short shoots, rapid wilting and shriveled leaves or
grape clusters. Also, look for grapes covered in a gray or tan powder or leaves
with yellow edges.
However, a visual
diagnosis may not be sufficient, and it may require laboratory analysis to
identify certain bacterial and fungal diseases correctly. To protect the
healthy plants in the vineyard, promptly remove diseased wood and either burn
it (if your area allows burning) or add it to the green waste bin to be hauled
away.
Pruning and weeding go
hand-in-hand around this time of year, and there are important factors to
consider when developing a vineyard weed control program for the dormant
months. Nicola Rinieri of Rinieri S.R.L. in Forlì, Italy, told The Grapevine Magazine that customers must think about the conditions and their most
common practices. For example, vineyards in the Northeast hill up the soil to
protect the vines, which requires specialized equipment. Rinieri provides
agricultural machinery for vineyard processing, pruning machines, offset
machines, in-and-out rotary tillers and cultivators.
Pruning Tools and Supplies
While the process of
pruning may seem simple enough, some specific tools and supplies help get the
job done right in the most efficient way possible. The most basic hand tools
needed for pruning are a few good pairs of pruning shears, loppers and saws.
Vineyards also use hand-held scales to measure pruning weights and ribbons,
garden tape or cloth strips to identify fruiting canes and renewal spurs.
There are pros and cons to
both manual and mechanical pruning, and decisions in this regard are often the
result of long-standing vineyard traditions.
“All of our vineyard is
manually pruned,” said Lonborg. “Maintaining the proper structure of the vine
is of the utmost importance when producing high-quality fruit.”
Rinieri said a common
mistake that vineyards make when doing mechanical pre-pruning is trying to use
a machine to do a job where it’s not appropriate in the vineyard.
“It is common to have the
wires not tighten enough so the machine can catch them or to have a cross arm
so wide that the machine cannot open enough to avoid them,” she said. “This was
happening many times in the past, but fortunately not as often lately.”
Amanda Van Hoorn, operations manager for INFACO USA in Livermore, California, told The Grapevine Magazine that the F3015 Electrocoup pruning shear with a patented safety system is popular among vineyards for pruning purposes. The history of INFACO dates back to 1984 when M. Daniel Delmas invented the world’s first electric shears. Today, INFACO offers a versatile and compatible product line that also includes an electrical tying device, electric olive harvester and battery-powered tools.
“No other company offers
the safety and versatility of the F3015 Electrocoup shear,” Van Hoorn said.
“Specifically, we offer a patented safety system that ensures workers won’t
injure their non-pruning hands. Users can also increase cutting capacity by
just changing the head on the shear. This means that vineyard managers can use
the same tool for cane pruning, converting vineyards and cutting out Eutypa.
The shear’s battery is also compatible with a variety of other INFACO tools for
vineyards, including an electric tie gun and suckering tool.”
Killion of Zenport Industries told The Grapevine Magazine about the wide selection of quality hand pruners, loppers and saws that Zenport offers, as well as the company’s series of battery-powered pruners. Popular Zenport products are the Zenport EP108 CORDLESS ePruner, a 0.5-inch cut battery-powered electric pruner, and the Zenport EP2-778 ePruner, a 1.25-inch cut battery-powered electric pruner.
“These two pruners are
immensely popular for vineyard use because of reduced fatigue upon workers,
dramatically increasing pruning efficiency and speed,” Killion said. “Both
pruners enable the user to prune for an entire day.”
Meanwhile, Rinieri offers
two types of machines for pruning, called CPL, and each type has four different
sizes based on cutting length. “It is important to find out if a vineyard is
cordon or guyot and then decide which length the customer needs,” Rinieri
said.
Rinieri also sells many
weeding tools, including Bio-Dynamic, TURBO with hoeing blade, plow kit and
Bio-Dynamic tools, and TURBO EVO with power harrow, disc hoeing units, mini
shredder plus the blade and plow. These units are available with single or
double side blades. Other offerings are the EL power harrow single-side, FS
tiller single-side, and EP heavy-duty power harrow – all PTO driven.
FELCO can also be counted on to help vineyards prepare for the winter season, and it has been producing high-quality pruning tools for 75 years. FELCO’s Ryan Amberg told The Grapevine Magazine about their newest tool, the FELCO 822, launched just this year.
“It maintains its
predecessor’s position as the most powerful electronic pruner on the market
with new features, such as HSS XPRO blades for increased longevity, smaller
multi-position power pack for ergonomics, and the first-of-its-kind
connectivity for future vineyard management applications,” Amberg said. “If you
are looking for a solution to carpal tunnel or a solution to a lack of labor,
the FELCOtronic can be a real solution this winter.”
Pruning Considerations and Tips
Proper pruning practices
come with time and wisdom collected over many winter seasons. Being prepared
and having a plan in place for dormant pruning is always a good idea, but it is
also necessary to be flexible in case weather, the labor supply, or other
factors throw a wrench in your plans.
Van Hoorn of INFACO USA
said that labor is a huge factor when planning for pruning and buying new
pruning tools.
“The labor crisis is here
to stay, and with it comes increased prices for every operation in the
vineyard,” she said. “Proper pruning is crucial to producing great grapes but
is one of the most labor-intensive tasks on the vineyard. The F3015 pruning shear
from INFACO has shown an average productivity increase for vineyards of 30% and
also increases the number of years workers can continue pruning. Powered
pruners have an inherent risk, though, and that’s why the F3015 pruning shear
features a patented safety system to protect workers’ non-pruning hands. There
is no doubt that this is becoming a must-have tool for vineyard managers who
need to find ways to use less labor and keep their best workers.”
Van Hoorn said vineyards
should, “Switch to an electric shear before the labor market chews you up and
spits you out!”
Killion of Zenport
reminded vineyard managers that pruning tools are used extensively, and
battery-powered pruners, in particular, need to be serviced periodically.
“Choose a manufacturer
that stocks replacement parts, like blades and bumpers,” Killion said. “For
electric pruners, it is imperative that a service center with quick turnaround
is available.”
Killion also said it is crucial to identify last year’s growth
because this is where the coming season’s fruit will form.
“The wood where the fruit
is produced on the last year’s growth will have a different color than the
older wood that can’t produce fruit,” Killion said. “You will usually be able
to identify the last year’s wood because of its reddish color.”
Rinieri of Rinieri S.R.L.
said that the main factors to consider are the size of the vineyard and row
width.
“When a vineyard is large
in size, it needs a quick machine, like Bio-Dynamic, TURBO or TURBO EVO,” she
said. “If it is small, it can use EL, FS or EP. Also, finding out what type of
work a vineyard wants to do is important because some machines can use
different working heads, like TURBO EVO and TURBO, with no power tools. The
width of the row is important because all machines have a range of widths in
which they can work.”
Amberg of FELCO said that
three things should come to mind when purchasing new tools: the application of
the product, the longevity of the product, and the ability to maintain the
product. Product application is vital for improving vineyard ergonomics, which
is why FELCO offers so many different hand pruner models.
“We believe ergonomics are
key in a high-stress pruning environment like the vineyard,” Amberg said. “A
tool should be bought, taking into consideration hand size, left or
right-handedness and average cut diameter. We make tools for all varieties of
these combinations.”
Regarding longevity,
Amberg said hand tools are the workhorse of a vineyard crew’s arsenal during
pruning season, which means they are put under a lot of stress and abuse.
“This is why we protect
our tools with military-grade aluminum handles, as well as our precise
manufacturing process that allows these tools to tolerate the stress of
intensive pruning without issue,” he said. “Look for tools that are built to
last and that you will not replace multiple times in a season.”
Amberg also pointed to
proper maintenance as a way to get more life out of your tools and extend your
return on investment.
“We build our tools so
that with just simple blade and spring changes, you can maintain your tool for
a lifetime,” Amberg said. “This means on any aluminum-handled FELCO, all parts
can be changed and replaced with ease, thanks to our precision machining. We produce
our tools out of an old watch factory in Switzerland, giving us the ability to
put tools back together hundreds of times without any give in the mechanics.”
However, it doesn’t matter
what tool you use if you start too early, said Longborg of Tablas Creek. “If
you have the ability to wait as long as possible, do so!” he said. “If you can
wait to prune until the vines start bleeding, you greatly reduce the risk of
Eutypa infection.”
A new project breaking ground this year in British Columbia’s
Okanagan Valley aims to bring together small-batch wine, beer, cider and spirit
producers to create Canada’s first “wine vil-lage.” Here visitors can explore
craft beverages and culinary delights created by up-and-coming craft beverage
producers.
District Wine Village
(DistrictWineVillage.com) will be surrounded by vineyards and will include
production facilities and consumer-facing tasting rooms for 16 producers, as
well as a 600-person entertainment and event center and on-site eateries.
Beverage producers will benefit from shared resources, such as a communal crush
pad.
According to spokesperson
Lindsay Kelm, by gathering so many craft beverage producers to-gether in one
place, the District Wine Village aims to create a tourism draw that is greater
than any new small-batch winery could create on its own.
“People are looking for
niche producers, artisans and craftspersons. It’s a trend that’s here to stay,
to support local,” Kelm said. “We’re building people up and giving them a
platform to share their story.”
The circular site is
designed in the shape of a wheel, with a partially covered pedestrian plaza and
partially covered event space at the hub, and the facilities for each producer
as the “spokes.”
Tasting rooms and event facilities will face the interior of the wheel, while delivery trucks can load and unload grapes, bottles or other material with the help of an on-site operational team directly into each facility through doors facing the perimeter. Producers who lease space in the village will also benefit from a streamlined licensing process, and co-operative marketing and PR.
Each of the 16 “pods” will
feature a fully-equipped production area complete with tanks, hoses and other
equipment, which will be leased to the craft beverage producer. Also included
in each space is a customer-facing tasting room and patio, which can be
designed and branded to suit each occupant. Pods will also include room for
barrel and case storage.
Kelm said the project aims
to be a launchpad for grape-growers or garagiste producers who have the passion
and skill to produce wine but lack the deep pockets needed to fund a
tradi-tional winery. Although Kelm said most spots are likely to be snapped up
by small wineries, she said other craft beverage producers also need these
kinds of spaces.
Land is expensive in the
Okanagan, Kelm said. To buy a small winery may cost between $1.5- to $3-million
at the low end. Because all the production equipment is leased to the
producers, the startup cost within the District Wine Village is much more
affordable than buying or building a dedicated space, she said.
Construction is
anticipated to begin in spring 2020. The first four to six pods will be ready by
fall 2020, and all 16 are expected to be completed by summer 2021.
The project was designed by Penticton’s Greyback Construction (http://www.greyback.com/), which was involved in building many other local wineries, including Painted Rock, Arrowleaf Cellars, Culmina, Wild Goose, Church + State, Nk’mip Cellars, Burrowing Owl and Black Hills.
In a press release announcing the project’s launch, Greyback
Construction General Manager, Matt Kenyon, said the project aims to create a
sense of community and connection among the site’s wineries, cideries,
breweries, distilleries and eateries as well as the broader region.
“We are really looking to
be a significant economic driver for our local communities and sup-port the
future growth of wine and culinary tourism in the South Okanagan,” Kenyon
said.
The District Wine Village
project is located in the small town of Oliver, in the South Okanagan, in the
heart of one of Canada’s most successful wine-producing regions. The town is
home to half of British Columbia’s vineyards and more than 40 wineries.
Although Oliver has a
year-round population of only 5,000 people, it swells with tourists in the
summer months. In the fall, the town’s population doubles during its annual
Fall Okanagan Wine Festival. The festival includes the Cask & Keg, a
brewery and distillery showcase, and the family-friendly Festival of the Grape
(http://oliverfestivalofthegrape.ca/), which features tastings from more than
50 British Columbia wineries alongside food trucks, children’s activities, and
costumed competitors in the annual Grape Stomp contest.
The town’s Half-Corked
Marathon (https://www.oliverosoyoos.com/half-corked-marathon/), a wine-soaked
fun run through scenic vineyards featuring wacky costumes, fine food,
wine-tasting and a who-cares-who-wins attitude, is another popular tourist
draw. Participants have a maximum of three and a half hours to complete the
route, which winds through as many area wineries as possible. The race is so
popular that registration is by lottery; spots in the 2020 race in May are
already all sold out. Organizers say over 8,000 people entered the lottery for
this year’s race, which was capped at 1,500 participants. Tickets are $185 and
include race entry, transportation to and from the start/finish lines, lunch,
wine and food tastings along the route, a swag bag and a bottle of the Half
Corked signature wine blend.
Approximately 84% of
British Columbia’s vineyard acreage is located in the Okanagan Valley,
according to the British Columbia Wine Institute (winebc.com), a non-profit
industry organiza-tion representing British Columbia wine producers. The 250-kilometer
valley includes four dis-tinctive sub-regions: Golden Mile Bench (located near
Oliver), Naramata Bench, Okanagan Falls and Skaha Beach. The area is warmer and
arider than California’s Napa Valley and gets almost two hours more sunlight
per day during the growing season.
Yet unlike California,
winter temperatures dip well below freezing. Area wineries began harvest-ing
frozen grapes for ice wine in late November when temperatures dropped to -8
degrees cel-sius (17.6 degrees Fahrenheit). According to the BC Wine Authority,
20 wineries registered to harvest ice wine grapes this winter, with
approximately 463 tons of grapes expected over 124 acres in the Okanagan
Valley, Similkameen Valley and the Shuswap region.
To qualify for the British
Columbia Vintners Quality Alliance (VQA) certification, harvesting and pressing
of grapes for ice wine must occur in temperatures below -8 degrees Celsius.
Artificial refrigeration of grapes, juice, must or wine is prohibited.
The interior of British Columbia, which
includes the Okanagan area, is the only wine-growing region to regularly
experience the frigid temperatures required to produce ice wine.
Is it a beer? Is it a wine? Is wine that has been steeped with
hops considered wine? Is wort blended with lactic-bacteria-fermented Pinot Gris
and fermented with Saccharomyces and Brettanomyces still considered beer? Don’t
most winemakers do everything possible to avoid Brettanomyces? Maybe not
anymore. The new sensation in town is cross collaborations between vintners and
brewmasters. They’re experimenting with dry-hopping wines, wet-hopping wines or
fermenting beers on a variety of grapes.
Winemakers and brewers, as
well as their customers, enjoy these collaborations. Christine Park of Murphy
Goode Winery in Sonoma said, “It’s an adventure. A wine with lager tasting
notes and vice versa definitely caught the attention of wine and beer fans.
It’s a cool concept, and our consumers embraced it favorably.”
Charlie and Echo Winery
Charlie and Echo Winery
rests in San Diego’s Miralani Makers’ District. The makers in this district
produce beer, wine, cider, mead, sake and spirits. Once every month they host a
walkabout where people meander from business to business tasting the different
themed drinks of the particular month.
Charlie and Echo owner and
Winemaker, Eric Van Drunen, initially collaborated with Bill Lindsay and
Jonathan Barbarin of Thunderhawk Alements, an independent brewery in the
district, on “Project X.” The three successfully created a Chardonnay and Pinot
Grigio blend with Hallertau Blanc hops named after Van Drunen’s favorite song
lyrics. Sister Golden Hair Surprise, or S.G.H.S, reflects the color and sensory
experience of the wine. The second wine he created is called Citrasé, a rosé
blend of Grenache and Mataro with Citra hops. The name is a mashup of Citra and
Rosé.
With unique, on-trend
wines comes unique, on-trend packaging. “We’ve put these wines in cans which
seems apropos since they are the intersection of wine and beer,” Van Drunen
said.
For their part,
Thunderhawk Alements is quite proud of the product and hopes to do more
collaborations. “We not only learned how hops can complement wine in a
beautiful way; we are excited to see these unique wines become available to the
public. We look forward to more collaboration,” Barbarin, co-owner of
Thunderhawk Alements said.
Hops, Van Drunen said,
affect the wine in unexpected ways. “Hops help the wine retain the head that
one generally sees on a beer. It changes the color of the wine, changes the
aroma and has a very transformative mouth feel,” he said.
To ensure he has the
freshest product, Van Drunen makes a batch of wine every two weeks, since the
hop content drops around six months. He’s experimented quite a bit to get to
this point. “It has been a long journey creating these wines. I’ve tried a few
wines getting to this final product. I tried a sparkling sour red, which was
originally a good wine that went bad in the bottle. I’ve tried to dry-hop a red
wine, but it wasn’t as tasty as the Sauvignon Blanc,” Van Drunen said.
Boedecker Cellars & Little
Beast Brewing
Stewart Boedecker of
Boedecker Cellars in Portland, Oregon, collaborated with Charles Porter,
Founder and Brewmaster at Portland’s Little Beast Brewing, in creating two
mixed-culture beers fermented with wine grapes: Bière Gris and Radical Forces
Pinot Noir beer.
“We turned the art of wine
and beer making on its head a bit, and the result is quite beautiful. Stewart
came up with the idea of a lactic-bacteria-fermented Pinot Gris juice that we
then blended with our wort and fermented, as usual, with Saccharomyces and a
secondary with Brettanomyces. This aged in oak for six months,” said Porter.
“For this Bière Gris, Boedecker Cellars pressed their Pinot Gris grapes and put
it in a tote. Once the tote arrived at our brewery, we added our Lactobacillus
to sour the juice. This process is heralded in the making of tart and sour
beers but typically avoided in winemaking. Once soured, we added it to a beer
we made that day and co-fermented it all together.
“The Radical Forces Pinot
Noir beer was my creation. I wanted to mimic the character of a Pinot Noir but
also balance that with a big beer. Nice Pinot Noir attributes, toasted oak
barrel character, and a big, bold body from the beer and alcohol. For Radical
Forces was we employed a whole cluster fermentation with a pilsner malt base,”
Porter said. “The recipe was based on many years’ experience of mixed culture
brewing that I practice. The experimental part was taking Stewart’s concept and
blending it with our process. The collaboration was very fun and a new twist on
what we do. I love working with other producers and learn something new every
time.”
The unique brews have been
quite a draw for patrons. “Customers have been very intrigued by these beers.
They love the balance in them and notice that neither the beer nor wine
qualities overshadow one another,” Porter said.
As Porter continues to produce Radical Forces and perfect his
techniques, look for more collaborations in the future.
Murphy-Goode Winery
Murphy-Goode Winery has been crafting wine in the Alexander Valley of California since 1985. Second-generation winemaker Dave Ready Jr. said one of their central tenets is the belief in great wines and good times with family and friends. He’s kept this in mind as he followed his father’s example of creating well-crafted wines, most recently Bordeaux varieties and Zinfandels from Alexander Valley.
In 2016, Ready Jr.
collaborated with Aron Levin, Brewmaster at St. Florian’s Brewery in Windsor,
California, to craft a dry-hopped Sauvignon Blanc, and to brew a lager aged in
Sauvignon Blanc barrels.
“Hops bines and grapevines
have coexisted in Sonoma County since the 1850s. It seems winemakers have
always been big fans of beer, and vice versa. In the Murphy-Goode spirit of
celebrating the ‘Goode Life,’ we thought it would be unique to combine those
two areas of craftsmanship,” said Ready Jr. “Joining forces with someone as
passionate as Aron Levin, bringing that idea to life for our fans to enjoy, has
been a blast. The melding of hops and grape flavors provides balance and added
dimensions to our 2016 Dry-Hopped Sauvignon Blanc. We feel it appeals to both
wine and beer drinkers alike, and that was our goal.”
Ready Jr. isn’t currently collaborating on
any new hopped up wines, but he’s certainly not closing the door to it either.
“We don’t have any plans like this in the future, but we are always open to
possibilities and looking forward to innovation. We’re always open to new
opportunities and collaborations. Our goal from the start was to create
beverages that would appeal to both beer and wine fans, and I think we’ve done
just that,” he said.
Throughout 2018, the Trump administration’s implementation of
tariffs on several foreign goods, and the retaliatory tariffs that followed
suit have confused markets and worried many businesses. The alcohol
industry—wine, beer, spirits and those who support them—have all been affected
in some way by these tariffs, or expect to be in 2019 if they continue. With
the news on tariffs changing almost monthly, it can be hard to keep up, which
causes further insecurity for the industry.
Timeline of Events
Trade tensions began in
January 2018 when the Trump administration imposed tariffs on solar cells and
washing machines after a report stating that imports were hurting the domestic
U.S. market in those businesses.
On March 8, 2018,
President Trump announced a 25 percent tariff on imported steel and a 10
percent tariff on imported aluminum to take effect on March 23. At this time,
Canada and Mexico were granted an exemption pending talks to renegotiate NAFTA.
After threats from the EU to impose retaliatory tariffs, the administration
allowed exemptions for the EU, South Korea, Brazil, Argentina, and Australia
through May 1, which would eventually extend to June 1.
On April 2, China imposed
tariffs ranging from 15-25 percent on various U.S. products, including fruit,
wine, whiskey, and other products totaling approximately 3 billion U.S.
dollars.
On June 1, exemptions from
the steel and aluminum tariffs ended for the EU, Canada and Mexico. Argentina
and Brazil struck deals with the Trump administration limiting the quantities
of steel and aluminum they ship to the U.S., while Australia negotiated for no
trade restrictions.
In retaliation, on June 22,
the EU imposed tariffs on $3.2 billion of U.S. products, including a 25 percent
tariff on Bourbon and whiskey. Then, on July 1, Canada also imposed retaliatory
tariffs on $12.8 billion in U.S. products including 25 percent on steel, and 10
percent on aluminum and whiskey. In addition, Mexico implemented a 25 percent
tariff on Tennessee whiskey.
After talks with China
failed in May, the first phase of the trade war occurs in mid-June, with the
Trump administration announcing it will enact a 25 percent tariff on $50
billion more in Chinese goods. Beijing retaliated, placing more tariffs on $50
billion in U.S. products.
In September, President
Trump announced another 10 percent tariff on $200 billion more in Chinese
products, that he planned to increase to 25 percent at the beginning of 2019.
These tariffs impacted manufacturers of fermentation tanks outside of the U.S.
On September 30, a
compromised was made between the U.S. and Canada for an updated NAFTA. Mexico
and the U.S. had already come to an agreement by this point, and so the new
agreement, called by the Trump administration the United States-Mexico-Canada
Agreement, or USMCA, would be signed by the three leaders at the end of
November. Mexican and Canadian governments were both hopeful that tariffs would
end before signing.
In November, President
Trump and President Xi Jinping of China both showed interest in coming to a
compromise, ending a tense few months of escalation.
On November 30, 2018,
President Trump, Canadian Prime Minister Justin Trudeau and Mexican President
Enrique Peña Nieto signed the USMCA in Buenos Aires on the first day of the
G-20 summit in Buenos Aires without any agreement to end the tariffs. At the time
of publication, talks to alleviate tariffs with Mexico and Canada but implement
quotas are in progress, but no deal has been reached.
On December 2, 2018, at a
dinner between President Trump and President Xi, they agreed to a truce,
putting a stop to any further tariffs for 90 days to give the two countries
time to come to an agreement. At the time of publication, Robert Lighthizer is
leading negotiations, but no deal has yet been made.
Effects to the U.S. Wine, Beer, and Spirits Industries
Wine
China has been a growing
market for American wine for nearly 20 years. The market has increased almost
1200 percent since 2001 despite an already steep tax of 54 percent on imported
wine. China’s retaliatory tariffs threatened to stop that growth in its tracks
if the tariffs continue. After two rounds of tariffs on wine, the first in
April at 15 percent and the second in September at 10 percent, the current
taxes and tariffs for U.S. wine going into China is 79 percent. That percentage
is quite unsettling for winemakers who have a market stake in China,
particularly if no agreement is reached and the current truce ends.
Igor Sill, owner of Sill Family Vineyards, told The Grapevine Magazine in an email: “Yes, I’ve been very concerned over the latest exchanges between U.S. and China trade given that we are already being penalized with a 15 percent tariff. The newest retaliation from China to our steel and aluminum trade policies will add 25 percent to that existing tariff, essentially pricing me out of the China marketplace. It’s a real shame, frustration, and disappointment as we have nothing to do with manufacturing and construction materials, but yet are hit with this inability to compete in China’s luxury wine sector against other imported wines. I really pray that the trade dispute with China is resolved equitably and quickly. At $185 per bottle, my Chinese customer would need to pay some $275 per bottle to enjoy our wines. That would greatly reduce China sales for us.”
This reduction is particularly disappointing for Sill Family
Vineyards, winners of the China Spirits and Wine Associations’ 2018 Wine of the
Year for their 2015 Napa Atlas Peak Cabernet Sauvignon, as well as the coveted
Double Gold Medal for excellence.
“We’ve been focused on
sales and distribution to the China marketplace since 2014. It’s a huge market that appreciates the
quality of exceptional fine wines and, specifically, they have grown their
appreciation for Napa Cabernet Sauvignon by some 10-12 percent each year. When you have some 1.5 billion people in
China, those consumption numbers are more than substantial to someone like us—a
small, family producer of limited production, high-end wines, crafting a mere
800 cases of wine per year.”
Sill planned to increase
the percentage of his business in China from four percent to eight in 2018 and
with a 15-20 percent increase annually through 2023.
“These plans have since
changed,” said Sill. They now plan to refocus on the U.S. market, concentrating
on high-volume wine consuming states such as Texas, New York, New Jersey,
California, Illinois and Florida.
If the tariffs continue,
pushing Sill and other California wineries out of the Chinese market and back
into the U.S., it could cause problems for lesser known wines.
“If these California
wineries decide to curb sending that wine into China, the wine needs to be sold
somewhere, and it could come back here to the United States, which could lead
to more competition for shelf space and storage with other state wine
industries,” said Michael Kaiser, Vice President of trade group, Wine America.
However, Kaiser said,
despite the high tariffs that threaten to increase, even more, it doesn’t
appear other California wineries are following Sill out of China.
“The exports to China from
the U.S. are up 18 percent this year so far. It’s still increasing. I think it
was the number fifth-highest market last year for U.S. wine. About $80 million
worth of U.S. wine was sent into China last year. So, it doesn’t appear that
the tariffs are compelling people not to export their wine to China. I think
that it shows how valuable a market it is that people are willing to pay these
new tariffs on their wine going into that market,” said Kaiser.
That doesn’t mean that there
hasn’t been an effect, said Kaiser. The impact will be more apparent after the
new year. “It’s hard to really quantify because [the tariffs] haven’t really
been around that long, but we’ll have to look and see what it’s like in January
and February when we have the numbers for the year,” he said.
Beer
For many in the brewing
industry, what should have been a banner year of expansion and growth ended up
as something much different. In December 2017, Congress lowered the federal
excise tax from $7/barrel on the first 60,000 barrels for domestic brewers
producing less than two million barrels annually, to $3.50/barrel. For imports
and domestic brewers producing over two million barrels annually, barrel costs
were reduced from $18/barrel to $16/barrel on the first six million barrels.
The tax cut opened up staffing and expansion opportunities that excited many
brewers.
“Then a few months later,
unfortunately, the Trump administration imposed a 10 percent tariff on
aluminum, which raised costs for brewers,” said Jim McGreevy, President and CEO
of The Beer Institute, the oldest beer trade organization in the U.S.
“We’re seeing an impact to
the industry and brewers big and small. We estimate that the tariffs are a $347
million tax on beer. I told you about that tax relief we received in
December—that was roughly $130 million of tax relief for beer. So, we received
$130 million tax relief in December, and in March we received a $347 million
tax increase. This is definitely affecting the industry as a whole.”
The tariff on imported
aluminum contributed to the rising prices of cans – in a time when more
breweries than ever are embracing use of 12 and 20 ounces cans, as well as the
to-go style “crowler.” The extra cost can severely affect the bottom line.
“Aluminum is the single
biggest input cost for beer brewers. Of the 6,000 or more breweries in this
country, you see more and more distributing their beer, and you see more and
more putting their beer in aluminum cans and aluminum bottles. So this is a major
input cost for beer brewers, big and small. That 10 percent tariff affected
beer brewers because a large portion of aluminum used to put beer in comes from
outside the country,” said McGreevy.
It doesn’t seem to matter
where or how a brewer buys their aluminum either.
“One large brewer
announced a few months ago that this was a $40 million cost to them every year.
We’ve had small brewers who are members of ours—even small brewers who are not
members of the Beer Institute—tell us that their aluminum costs are going up,
even if they get their aluminum from a broker. This is affecting the price of
aluminum up and down the chain, no matter how you get the aluminum, whether you
have long-standing contracts with aluminum providers, or you’re a smaller brewer,
and you’re getting your aluminum from a broker,” said McGreevy.
Bourbon and Other Spirits
The U.S. Bourbon industry
is hit hardest in the EU where retaliatory tariffs of 25 percent threaten to
stifle what has been, over the last few years, a booming industry. Eric
Gregory, President of the Kentucky Distillers’ Association, a non-profit trade
association founded in 1880, told The Grapevine Magazine that Kentucky Bourbon
is an $8.5 billion industry with the state, employing 17,500 Kentuckians with a
payroll of over $800 million. Bourbon distillers contribute $815 million each
year in local, state, and federal taxes, with much of their local and state
taxes going to fund education.
According to Gregory,
Bourbon has remained relatively safe thanks to the foresight of larger
distillers. “So far, and I say that with a word of caution, we have not had
that much of a dramatic impact. The reason is mainly two-fold: a lot of the
smaller craft distilleries really haven’t gotten into the export market
yet—they’re barely able to produce enough product just for the regional market
at best. The bigger distilleries that have the global distribution network and
who are expanding at rapid rates, mainly to meet that global demand, most of
them had the ability to stockpile product overseas before the tariffs hit. From
every indication I’ve been told, that is carrying them through until about the
first of the year,” said Gregory.
However, after the
stockpile dwindles, prices will likely go up, and Gregory said that will likely
keep Bourbon from continuing its uptick as a serious contender on the world
stage.
“I don’t think you can
find a better example of free and fair trade than Kentucky Bourbon in the last
20 years. We have grown exponentially. In 1999, just a couple years after the
tariffs, NAFTA and the free trade pact with the EU took effect, as a state we
only produced 455,000 barrels of bourbon. Last year we produced 1.7 million
barrels of bourbon. Much of that is going to the global exports. [We’ve been
able to] put ourselves on a level playing field with our friends in the Scotch
industry and other great whiskey markets. We’ve been able to convert drinkers
to Kentucky Bourbon, and if we have a problem with competing on the shelves and
prices, then we can lose some of those converts who might look at what they
used to drink, and it’s less expensive, and they’ll start drinking that again.
At that point, if we’ve lost them, we might have lost them for a generation,”
Gregory said.
Bourbon distillers can
choose to absorb the cost of the tariffs, which hurts the local economy as a
whole. “That’s less money and profits coming back to your companies, which
means less investment in Kentucky, fewer jobs, and we don’t like that either,”
said Gregory. “In Kentucky, with Bourbon being such an economic driver, both
from jobs to tourism, we are just now starting to ratchet up production and
tourism opportunities, and it’s really like throwing a wet blanket on a booming
industry.”
What worries Gregory the
most, is the long-term effects that the tariffs may have within the Bourbon
industry and on Kentucky. “Worst case scenario, you get to a price war, where
there’s an abundance of Bourbon on the market, and that drops down prices, and
that significantly harms our smaller craft distillers. They’re just now trying
to survive in this market,” he said. “Even worse, worst-case scenario, if
distillers start to produce less Kentucky Bourbon, which has a dramatic ripple
effect across the Kentucky economy, and not only means fewer jobs and less
investment, but we are the only place in the world that taxes aging barrels of
spirits. So if you’re enjoying an 18-year-old bottle of Kentucky Bourbon, it’s
been taxed 18 times, and the great majority of that tax revenue goes back to
fund local schools. If for whatever reason we get to the point where we’re
producing less, then, it can ultimately hurt education and other public health
and safety programs here in Kentucky.”
Other spirit producers
have lost contracts, been forced to lower price points in other countries, and
had to adjust future growth projections due to the tariffs, American Craft
Spirits Association Executive Director Margie Lehrman told The Grapevine Magazine.
“I’ve had distillers tell
me that they had contracts on their desk ready to be signed for export to
China, for instance, and those contracts got ripped up. It’s just simply off
the table,” she said. “I’ve had other distillers tell me that they had actual
product on freight going over to Great Britain, where they were told by the
importer, ‘If you want us to off-load your freight, your price point has to
drop down to this.’ I had one distiller tell me they had estimated over 30
percent of their business [would go to] export sales and because of the
tariffs, they needed to knock that down to 15 percent, which is really
significant for these small businesses.”
Suppliers
Some industry suppliers
who manufacture their equipment anywhere other than the U.S. were hit by the
second round of tariffs in September. This tariff affects manufacturers of
stainless steel fermentation tanks, such as William Cover’s company, Fermenters
Choice Stainless Ltd. They import stainless steel fermentation and storage tanks
for wineries, brewing and industrial purposes;
manufacturing their tanks in China, and then shipping them to the U.S.
and Canada. Because of this, their fermentation tanks were hit with a 10
percent tariff in September, and, if the talks between the U.S. and China fall
through, could increase to 25 percent in early March 2019. Cover only recently
expanded into the U.S. in 2017. Previously he’d serviced only Canada.
Cover told The Grapevine Magazine that right now he cannot compete with American made tanks, but he
believes that once stocks of pre-tariff steel deplete and manufacturers begin
buying more expensive U.S. steel, he may see a swing back in his direction,
though, at a higher price.
“There are also tariffs on
imported stainless steel–the raw stock used by U.S. based tank manufacturers to
make tanks. So once their current inventory of stock and their costs and final
product cost is likely to increase as well. That should make my price competitive
again, although at a higher final cost to the winery and brewery than before,”
said Cover.
For now, Cover looks to
markets other than the U.S., a move he believes many other manufacturers will
make. “The products produced in countries like China now need to find another
market. There will likely be a reduction in their export price. I am now
expanding my business to South America – there are large wine producing regions
in Chile and Argentina. This is an example of the consequences of tariffs– other
countries will buy less expensive products, decrease their costs and increase
their market share. These new tariffs
will contribute to lower cost, foreign growth in the wine industry,” he said.
Imported brewing equipment
such as bright tanks have remained mostly unaffected by the tariffs but already
carried a four percent tax before the trade war.
Restaurants and Retailers
For restaurants and
retailers, the tariffs affect the bottom line when their alcohol
suppliers—breweries, wineries and distilleries—increase prices due to rising
production costs. Justin Shedelbower,
Communications Director at the American Beverage Institute, a trade
organization that represents restaurant chains that sell alcohol, told The
Grapevine Magazine what happens when these price hikes flow downward.
“For an industry such as
the beer industry, that uses a lot of aluminum, [the aluminum tariff] increases
the production cost significantly, which forces them to raise the price of
their products. That price increase rolls downhill to the consumer and
restaurant level,” said Shedelbower. “Once you get to the restaurant, it’s
higher priced beer. The restaurant has two choices. They can either keep their
prices the same and eat that extra cost, reducing their profit margins, or they
can increase the price they sell to their customers with, and that just ends up
reducing sales. If something costs more, people buy less of it.”
Reduced sales lead to
reduced profits, which may lead to canceling plans for future expansion or
cutting staff.
“Many of these restaurants
already have slim profit margins as it is. When profit margins are eaten away
further by either taking on the costs of these tariffs or just not selling as
much because the prices are higher, it just eats away at it further. So now
they don’t have this extra cash on hand, whether maybe they were planning on
expanding, so maybe now they can’t expand or hire the additional employees that
they needed. Or it can induce layoffs,” said Shedelbower.
A Possible Solution in the Works
With the signing of the
USMCA and the 90-day truce with China, it’s possible that the worst is over,
and the world will soon see a return to normal trade routines. Reactions to
these events are encouraging to both trade organizations and producers;
however, there is still plenty of work to do.
“We were pleased to see
there will be a pause in any tariffs for at least 90 days. We will continue to
let Congress know about our feelings on the tariffs. What it means, in the long
run, is anyone’s guess,” said WineAmerica’s Kaiser.
“The signing of the USMCA
is definitely a step in the right direction and will help alleviate tensions
between the three countries. However, the tariffs on imported steel and
aluminum still remain—an elephant in the room that needs to be addressed. The
U.S. imposed tariffs, and the subsequent retaliatory trade penalties continue
to threaten the hospitality and alcohol industries with higher operation and
production costs, as well as induce growing challenges for accessing foreign
markets,” ABI’s Shedelbower told us.
“We hope lawmakers require
the administration to end tariffs as a condition of support for the United
States-Mexico-Canada Agreement. In our eyes, the deal is incomplete until the
administration eliminates all steel and aluminum tariffs,” The Beer Institute’s
McGreevy said.
Cover of Fermenter’s
Choice is happy about the truce, but he thinks a deal will take into account
the changes the tariffs made to the market. “It remains to be seen how long it
will take to remove them altogether. I don’t expect that to happen quickly as
the American companies that ramped up production of steel and other
commodities—reopening old plants, hiring new workers, etc., will lobby hard for
some time to recoup their investment. It’s not fair to them to remove the
tariffs so quickly—and a bad political move for Trump. I would expect the
second tariff to come off after a few months, but the first tariff could be a
year or longer.”
Igor Sill is relieved, not
only for himself but for the positive impact a deal could have on both the
Chinese and U.S. financial markets. “China’s financial market has been severely
depressed since Trump announced his policy’s intention, and of course, we’ve
seen Wall Street’s, and the global stock markets drop as well. With today’s
“truce” announcement I sense that wiser minds will prevail and an equitable
resolution, i.e., no tariff, or considerably lower tariffs will salvage the
global economic markets and my ability to sell our wines into China. Overall,
I’m much more optimistic now.”
