Category: Archived Articles

Getting Covered: How Cover Crops Can Work to Protect Vineyards

Cyndi
a field of flowers in and around a vineyard

By: Cheryl Gray

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Will Crop Insurance Cover Losses to My Vines?

Cyndi
man on cell phone inspecting grapes in vineyard

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

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

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

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

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

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

11. Causes of Loss

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

(1) Freeze;

(2) Hail;

(3) Flood;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cyndi
clusters of Baco Noir grapes

By: Becky Garrison

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

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

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

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

The Birth of Baco Noir in the Umpqua Valley

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

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

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

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

Baco Noir Grapes Pioneering Natural Wine Movement

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

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

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

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

Growth of Baco Noir in Umpqua Valley

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

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

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

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

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

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

Innovations and Trends in Winery Caps, Corks and Closures

Cyndi
cork person helping another cork person off a cork screw

By: Alyssa L. Ochs

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

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

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

Types of Wine Closures

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

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

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

Innovations in Wine Closures

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

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

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

Green Initiatives for Sustainability 

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

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

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

Pros and Cons of Caps, Corks and Closures

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

Natural Cork

Pros: • Adds subtle flavors to wine

• Recyclable, renewable and biodegradable

• Best for aging up to 10 to 25 years

• Traditional, ceremonial and romantic

Cons: • The potential of cork taint

• Variation in the consistency of corks

• Often cost more than screw caps

Synthetic Cork

Pros: • No cork taint risk like natural cork

• Durable with quality that has been improving recently.

• Affordable and cost-effective

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

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

• Generally less effective seal than natural cork.

Composite Corks

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

• Adds elegance to high-end wines

• Cost-effective and affordable

• Made from renewable resources

Cons: • Costly for producers

• Not ideal for long-term aging

• Prone to breaking and crumbling

Screw Caps

Pros: • No risk of cork taint

• Easy opening and resealing

Cons: • It is not ideal for aging wine

• Best for early consumption

Crown Caps

Pros: • Easy to open

• Consistent and reliable seal

• Great for freshness and wine quality

Cons: • An unexpected closure among consumers

• Not ideal for all types of wine

• Limited aging potential

Glass Stoppers

Pros: • Attractive for luxury wines

• Distinguish your brand from competitors

• Reusable with an excellent seal

Cons: • More expensive than traditional closures

• It can be difficult to open

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

Zorks

Pros: • Easy and convenient to open

• Elegant appearance

• Becomes a reusable tasting cork once opened.

Cons: • Not ideal for long-term aging

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

   • More expensive than other closures

Industry Trends to Consider

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

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

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

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

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

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

The Refined Palette of Investment

Cyndi

Exploring Wine as a Strategic Asset

wine bottle laying on blue silk

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

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

Why Wine?

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

Wine Fundamentals for Investors

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

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

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

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

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

Personalization at Its Best

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

Strengthening Relationships

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

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

Diversification Through Wine

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

Avenues for Investing in Wine

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

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

Seizing Opportunities in the Regulatory Landscape

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

Targeting a Broader Investor Base

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

Global Market Trends

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

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

The Future of Wine Investing

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

The Last Sip

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

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

AgTech Advancements Powering Vineyard Innovations

Cyndi
person holding cell phone up to grape cluster

By: Josh Mickolio – DigiKey

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

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

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

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

person with drones flying in vineyard

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

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

Technology Enables Evolution

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

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

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

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

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

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

Reaping the Benefits

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

sensor at use in vineyard

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

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

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

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

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

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

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

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

The Future of AgTech

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

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

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

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

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

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

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

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

Bottling Day Tips and Tricks

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

By: Tom Payette – Winemaking Consultant

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

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

Start of sanitation:  Be sure the sanitation proce

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Vine to Value: Making a Grand Exit from Your Winery

Cyndi
ramp with the word Exit

By: Carlos Lowenberg, Lowenberg Group

For winery owners, the journey from vine to vintage is a labor of love, patience, and meticulous attention to every detail. It’s easy to get swept up in the business, but one important aspect that often gets overlooked is creating an exit plan. An exit strategy for a winery business is not just about the financials – it’s about preserving your life’s work and ensuring the future you’ve crafted can thrive without you.

  As a longtime business transition advisor, I understand the unique challenges and opportunities winery owners face. Timing is everything when it comes to viniculture Vintners must contend with weather, soil conditions, and market fluctuations that can make long-term planning difficult. Additionally, wine as a product has complexities – from branding and customer loyalty to aging requirements that span years, if not decades.

  I advise clients in this position to start their exit roadmap much earlier than one would expect. A solid five-10-year runway allows you to properly stage your exit while still being hands-on to groom successors and prime your business for an optimal transition.

Key Value Drivers

  For wineries, some of the most important value drivers that will attract buyers are the strength of your brand reputation, track record of wine quality and ratings, and sustainable environmental practices. Having a seasoned, proven management team in place is also crucial, as is cementing sources of recurring revenue like wine club memberships and contracted distribution pipelines.

  Transparency into your financials, operations, and sales will be non-negotiable for buyers assessing your winery’s value. Can you easily quantify production costs and pricing models? How efficient and modern are your facilities and equipment? Do you have rigorous quality control, food safety compliance, and chain of custody processes? The more you can showcase operational maturity and documented business fundamentals, the greater your winery’s valuation.

Taking Your Time

  Maximizing value in your winery prior to an exit is all about setting the stage for an optimal transition window. Buyers will scrutinize everything from your production capacity and equipment to your vineyard management practices. Are your facilities modernized and prepared to scale up seamlessly under new ownership? How automated are your processes? Do you have a proven supply chain and quality control programs to ensure consistency from year to year?

  The more you can demonstrate your winery as a turnkey business with documented, replicable processes and identified areas for growth and efficiency gains, the more it elevates your worth. Mature wineries that have successfully built their brand name and market presence while continuing to innovate will clearly be more coveted acquisition targets.

  I cannot overstate the importance of cultivating a stellar team to drive the value of your business.  Their passion and institutional knowledge surrounding your winemaking approach are invaluable. Retaining and incentivizing this core team through strategies like equity incentives or tailored succession plans prevents brain drain and keeps your proven playbook for distinctive, high-quality wines intact long after you exit.

  The patience and planning to strategically invest in the right areas over a multi-year period to strengthen your winery and brand value reap dividends in the form of top-dollar exit valuation and a smoother transition to the next regime.

Tax Advantages Through Planning

  I also can’t stress enough the importance of getting a head start on tax planning for your winery exit. With an issue as multifaceted as providing for your family and employees and mitigating your tax burden, a well-designed, long-term tax strategy is indispensable.

  Strategies like setting up trusts, gifting private stock to children and grandchildren, and finding tax-advantaged ways to transfer assets out of your estate can provide major savings over time. Charitable giving vehicles like donor-advised funds are another way to reduce your taxable income while benefiting causes important to you and your local community.

  If you plan to keep your winery operation within the family, exploring options like an intentionally defective grantor trust can allow you to freeze the value of assets transferred while removing them from your estate long before your exit. Life insurance policies can also be used to offset any inequitable distributions if not all children will end up involved. The possibilities are endless when you start planning ahead.

Building the Ultimate Advisory Team

  Given the intricate interplay of real estate, agriculture, taxation, distribution, and federal and state beverage regulations, you’ll want a team of experts guiding your vineyard legacy’s transition out of the gates. Assembling this team should begin two to three years before your target exit date. Vital team members include:

●    A tax attorney and CPA focused on estate, gift, and generational wealth transfers.

●    A vineyard operations consultant and winemaker with industry expertise to accurately quantify your assets, evaluate management, and represent fair market value.

●    A mergers & acquisitions advisor or investment banker to identify suitable buyers and negotiate favorable terms (this could also be completed in-house with the right staff).

●    A wealth manager to protect your personal assets throughout the transition.

●    Of course, at the core should be a seasoned business transition strategist who has helped other owners avoid pitfalls and exit successfully.

  This transition dream team will map out the unique considerations your winery needs like transferring real estate and land rights, assessing inventory and barreling assets, retaining key talent through earnouts or equity incentives, and account for legal distribution restrictions as you change ownership structures.

Leaving a Legacy

  There are few professional pursuits as spiritually rewarding as growing a winery business from the roots up. The wine flowing from your cellars is a vintage distillation of years of hard work, perseverance, and your vision brought to life. It’s only natural you’ll want that legacy preserved as you pour your last glass and hand over the reins.

  By being proactive and viewing your exit as the grand finale rather than an afterthought, you can dramatically increase the odds of a prosperous transition that provides for your family’s future while honoring the tradition and community you’ve established. Thoughtful planning and the right advisors are the keys to unlocking a fitting encore for your winemaking career.

  So let’s raise a glass to your next chapter, one that rewards the fruits of your labor while allowing your vineyards’ legacy to be grown and enjoyed for generations to come. Your journey from vine to value can have a storybook ending – if you start mapping that path today.

8 Proven Ways to Elevate Winery Revenue in a Changing Market

Cyndi
two people clinking their champagne glass

By: Jonathan Smalley, President and CEO of SmaK Plastics

The Times They Are A-Changin

According to CNN, global wine consumption has fallen about 6% between 2017 and 2022. Consumers have changed their drinking habits and inflation has eroded their disposable income.  That means nearly 1.9 billion fewer wine bottles were consumed last year than in 2017.

  Today, operating a successful winery requires more than just producing exceptional wines.

It demands a strategic approach to maximize operations space, production and labor, reduce overhead costs, and increase revenue and create growth.

•   The wine industry is evolving. Gen X-Z tastes are changing.

•   Wineries are at the intersection of artistry and business acumen.

•   Behind the scenes, winemakers and CFOs grapple with OpEx challenges.

•   At the same time, retail shelf space is getting more crowded – with flavored beverages.

  In this article, we will explore proven methods to increase winery revenue.

1.  Diversify Offerings to Attract a Broader Audience: An effective method to boost winery revenue is by diversifying product offerings to appeal to a wider customer base. While the core product remains wine, expanding into related areas such as events, food, and merchandise can significantly increase revenue streams.

     Silver Oak Cellars has successfully diversified its offerings. In addition to its acclaimed Cabernet Sauvignon, the winery hosts events like wine dinners and tastings. The winery’s online store also features branded merchandise, from glassware to clothing.

2.  Create a shelf space strategy – Evaluate and create modernized, distinctive labeling. Craft an eye-catching and distinctive packaging design for your Wine Club offers. Consider packaging that not only highlights your brand but also communicates the craft and quality of your wine.

     Create open communication with distributors and retailers about your differentiation and process. Collaborate on promotional events (where legal). Utilize data to ID regional preferences to tailor your product assortment. Consider P-O-S displays that showcase the craftsmanship behind your wines. Utilize shelf talkers and promotional signage to highlight unique tasting notes, food pairings, and any awards or accolades your wines have received        

3.  Expand Specific Production to Match Trends – Create craft beverages that meet emerging trends. Be a trendsetter. Consider new methods to expand your production to deliver new flavors that buyers want.

     Be aware: Buying used oak barrels used can sound affordable, but is risky. Used barrels can come with risk of bacterial contamination as well as a lower impartment of oak. And used tanks are not warranted by manufacturers.

4.  Implement Wine Club Memberships for Customer Loyalty – A new, modern wine club can create a loyal customer base, consistent revenue and a strong sense of community. Offer exclusive benefits such as early access to new releases, discounts on purchases, and members-only events.

     Ridge Vineyards is known for its exceptional Zinfandels and Cabernet Sauvignons. Ridge has a well-established wine club called the Monte Bello Collector Program. Members receive allocations of limited-production wines, invitations to member-only events, and access to library releases. This not only generates consistent revenue for the winery but also strengthens the connection between the brand and its customers.

5.  Enhance Online Presence and E-commerce – In the digital age, an online presence is crucial for wineries. Establishing a user-friendly website, utilizing social media, and implementing e-commerce capabilities can broaden a winery’s reach and drive sales directly to consumers. Invest in strong brand visibility and “edutainment.” Provide insight. Engage with your audience online and offline to create a community around your brand. A strong and recognizable brand can attract attention from retailers and consumers, and lead to increased shelf space.

     La Crema Winery has effectively expanded its online presence. The winery’s website offers a seamless e-commerce experience. La Crema actively also engages with its audience on social media platforms, and has created a virtual community around its brand.

6.  Optimize Production Space – Unleash the Cellar Potential: Say goodbye to wasted corners and hello to reimagined production. Evaluate every nook and cranny. Reorganize with precision. Utilize the space that is wasted on racking.

     Embrace flexible, movable vertical storage to increase capacity without sacrificing accessibility. Utilize stackable solutions to create skyward profits. Stackable fermentation, production, blending and aging solutions increase production, allow easy access, and deliver results. Easily blend without having to un-stack, un-rack and re-rack-and-stack barrels.

7.  Shorten the Distance and Vessel Use Between Processing Stages – Modernize your production Transfers. Reduce barrel transfer time with a streamlined, repurposed container layout. Redefine your processing flow to minimize transfer time, reduce labor, and eliminate spillage risks.

     Increase efficiency across all processes. Streamline labor-intensive tasks, from juice movement to cleaning, stacking, and maturation. Optimize productivity across your square footage. And vanquish the evaporation enemy.

8.  Embrace Modern Winemaking Techniques with Oxygen – Permeable Polyethylene Tanks:

  In recent years, wineries have increasingly turned to innovative winemaking equipment, such as poly, food-grade plastic tanks, to optimize production efficiency and cut costs. These tanks, made from high-quality polyethylene, present a viable alternative to traditional oak barrels.

  Oxygen-Permeable Polyethylene Tanks provide winemakers with a more cost-effective and sustainable solution. The use of plastic tanks aligns with sustainability goals. These vessels require less water and chemicals to clean, are lightweight and can be used for all winemaking processes, last more than 25 years, and reduce the demand for dwindling oak resources.

  Les Bourgeois Vineyards, situated in California, has successfully incorporated plastic tanks into its winemaking process. By investing in Oxygen-Permeable Polyethylene Tanks, the winery has reduced operational costs associated with barrel purchasing, maintenance and replacement. The polyethylene tanks allow Seghesio Vineyards to allocate resources to other aspects of production.

•    Poly tanks give winemakers scalability, and stackable use of production space.

•    Polyethylene vessels are sustainable. (Water and Labor Savings). These tanks can be utilized in all aspects of winemaking: production, fermentation, maturation and transport to bottling.

•    French oak barrels are produced at approximately two barrels per 100-year-old tree. Oak barrels must be sanitized using chemicals and large quantities of water. And they’re only good for 4-5 years.

•    Advanced, Oxygen-Permeable Polyethylene Tanks are long-lasting, controllable and breathe like a barrel.

•    Winemakers can easily and quickly expand capacity and space use. Polyethylene tanks are easy to move, clean and stack. And have low up-front capital cost.

Summary

   A combination of strategic planning, modern communication, customer engagement, adaptability to market trends, and new production techniques is required to grow winery revenue.

  Wineries can both build strong relationships with their customer base, and create sustainable higher margin revenue by diversifying offerings. At the same time, wineries must work strategically to create additional market pull, and shelf space. This can be created via consistent (short and unique) communication, and community building.

  Wineries must look forward to the future buyer profile and engage prospect/buyers via modernized wine clubs, enhanced online presence, and content.

  Wine owners and financial managers must also look at methods to reduce OpEx costs, streamline and increase production efficiency, sustainability and margins and revenue.

  These methods can help wineries steadily grow in a competitive market.

Author’s Bio

Jonathan Smalley, President and CEO of SmaK Plastics.  An expert in the production, fermentation, aging and transport of craft beverage and food production solutions. Over the last 20 years, he successfully directed the engineering and development of successful products for more than 4,000 global wineries, cideries and food processors.

The Importance of Detecting Disease Before Planting

Cyndi
rows and rows of grapevines

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

The summer and fall are the seasons for vineyard managers and winemakers to start to plan for new vineyard development.  Since late summer to fall is the busiest with harvest, why not get a head start?  Furthermore, the best time to scout the vineyard and observe symptoms associated with diseases is in the summer and fall seasons.

  My philosophy is if you wish to develop a healthy vineyard you need to plan ahead.  When planting a new vineyard, unless you are willing to take whatever is left at the nursery (not recommended), you will need to place your order with a nursery at least one year ahead of the planting season.    With so many different diseases that are not regulated by certification programs, I recommend you hire a knowledgeable plant pathologist (consult with me!) to help you determine the best time to perform vineyard block and vine inspections as well and how and when to collect plant and soil samples for pathogen detection.

Diseases Originate in the Vineyard

  Growers must be aware that many grapevine diseases can generate in the vineyard.  If a grower is replacing a vineyard, leaving the land fallow (with no vines) for a long period (2-3 years) may have advantages.  If the vines removed were infected with leafroll (GLRaVs) or red blotch (GRBV), it will be important to take some precautions. Some species of leafroll associated viruses (GLRaVs) are transmitted by mealybugs and GRBV is transmitted by the three-cornered alfalfa hopper. It is important to be careful when removing vines, as portions of infected roots can remain in the ground and be a source of reinfection.  When mealybugs are present in the vineyard block, these will be able to transmit the viruses to the new vineyard.   In this situation, it would be impossible to determine if the symptoms in the vineyard are due to a newly vineyard planted with infected material or if it became infected by mealybugs that remained in the vineyard unless there is a priori testing data.   I am always asked to “play detective” but without prior knowledge (i.e., testing prior block or the incoming plantings), it is a difficult proposal.

  Agrobacterium vitis (the crown gall causal agent) and some fungi are soil borne pathogens and can be propagated in nursery material as well as field selections or be present in the soil prior to planting.   Agrobacterium vitis and a diverse group of fungal pathogens are present and sometimes latent (no symptoms are visible) in vineyards.  For example, the crown gall disease agent can be present in certified planting material without showing symptoms until a stress factor (physical or freeze  damage) occurs. The stress caused by the grafting process is enough to induce typical galling if pathogenic strains of Agrobacterium vitis  are harboring withing the sourced vines.  Grafted vines commonly display excess callus formation, enlarged graft unions, and galls.  Some symptoms are typical of crown gall disease while others could be difficult to diagnose visually.   To be safe this type of planting material should be analyzed at a laboratory as it may not be easy to distinguish between bacterial galling and callusing during the grafting process (the nursery will probably claim that what you are seeing is callus but this is not always the case). 

Traditional Diagnostic Methods May Fail to Detect Certain Pathogens

  Testing the vines and soil before planting will give an indication of the type of fungal and bacterial organisms present.  Depending on the method used for testing, information of beneficial microorganisms and nematodes present in the vineyard soil can be obtained.

  Traditional methods such as microbiological culture for the detection of Agrobacterium and fungal pathogens may fail to detect these pathogens in the laboratory.   While microbiological culture in plates with identification using microscope and/or further biochemical and molecular characterization are still being used, there are some important drawbacks to these methods. The plating of microbes is prone to competition between different fungal and bacterial species.   Generally, the microorganism that grows faster will be identified but may not necessarily be the cause of symptoms of disease.  Even when a more specific method is used for identification (i.e., polymerase chain reaction), the method may not be specific enough to characterize the fungi and bacteria.  For example, there are many Agrobacterium vitis stains that are non-pathogenic and do not cause crown gall disease. 

Next Generation Sequencing as a Virus Discovery Tool

  The next generation sequencing (NGS) technique also known as high throughput sequencing (HTS) or deep sequencing is able to determine the complete sequence of the genetic material present in a vine.  The data obtained is analyzed with software that is able to compare sequences available in a database and provides a list of the bacteria, fungi, or viruses present in a given sample.  The method can provide relative quantitative data (copy number) of the presence of each organism found.

  Initially, the NGS method was used as a tool to discover new plant viruses.  In 2011, NGS lead to the discovery of the first DNA virus to infect grapevines, Grapevine vein clearing virus a Badnavirus associated with severe vein-clearing and vine decline syndrome in Missouri.  Subsequently, NGS has allowed the discovery of other DNA viruses: such as GRBV, Grapevine Geminivirus A, Wild Vitis virus 1, and many grapevine RNA inhabiting viruses (e.g., Grapevine virus E, F,G, H, I, J, K, L, M, N, etc.).  The application of NGS will continue to allow for the discovery of new viruses.  Clearly, the biological capabilities of the newly discovered viruses must be studied to determine if they pose a threat to vineyard health.

Next Generation Sequencing as a Diagnostic Tool

  Recently at the 20th ICVG (International Council for the Study of Grapevine Viruses and Virus-Like Diseases) held last year in Thessaloniki, experts discussed the application of NGS (aka HTS) technology for diagnostic purposes.  Comparative studies have allowed replacing the woody index technique with NGS in quarantine programs.  For example, the NGS technology is already being applied for the verification of clean planting stock as well as exclusion of infected material in new variety introductions quarantine and certification programs in Italy and USA. 

  Commercial laboratories offer the testing of soil and plant tissue using NGS technology to detect bacterial and fungal pathogens in soil,  planting stock material and established vineyards. 

  The NGS technology has become a powerful diagnostic tool but requires technical knowledge and expertise to interpret the results. Because of the complexity of the results, expertise is needed to determine which of the microorganisms present in the tested material might be damaging to the vineyard health.  I have experienced receiving loads of data (enormous lists of fungi and bacteria) to sort out and determine the relevance of the findings.  The information has allowed me to help clients make informed propagation, planting, and managing decisions.

  Future research will allow us to answer what is a pathogen copy number required to initiate infection and cause disease.  In my opinion, grapevine growers and winemakers will benefit when the NGS technology is widely applied to grapevine testing.  The application of new technologies will increase the health of planting material and subsequently decrease of presence of harmful pathogens in planted vineyards and ultimately increase wine quality.  I envision that in the near future the NGS technology will allow certification programs world-wide to exclude pathogenic bacterial, fungal, and viral species from their foundation blocks. 

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