A Brief History of the Malbec

Excerpt from Malbec Mon Amour.  By: Laura Catena and Alejandro Vigil

2 people holding rocks

In Argentina, many people think of Malbec as a local variety. And those who know a little more about its history see the grape as an immigrant whose splendid adaptation makes her Argentine through and through. This would be all well and good if it weren’t for the fact that Malbec has been so extensively documented in France’s wine bibliography. It is impossible to deny the grape’s glorious European past.

  Malbec’s long, eventful history in France is reflected in the number of different names it was given over the years. In the mid 1960s, the French ampelographer Pierre Galet identified more than a thousand different terms for Malbec depending on where it was grown or whomever introduced it to the region in question. For instance, it’s known as Côt in the Loire Valley, Malbec or Malbec Doux in Gironde, Luckens or Lutkens in Médoc, Pressac in the Libourne area of Bordeaux, Côte Rouge in Entre-deux-Mers and Lot-et-Garonne, and Auxerrois or Côt Noir in Cahors, capital of the former province of Quercy.

  In the 18th and early 19th centuries, Bordeaux clarets were light and almost pink in color, as opposed to their competition, Burgundian Pinot Noir, which was dense, fruity and deeply colored. It is likely that Malbec was a catalyst for the transition of Bordeaux wines into the more concentrated style we know today. These days Pinot Noir is the lighter, paler and more delicate of the two.

  DNA analysis carried out in France in 2009 determined that Magdeleine Noire was the mother of the Malbec, and Prunelard its father. The former, which also gave birth to Merlot, comes from the Charentes region, about 80 miles north of Bordeaux, while the fruity and tannic Prunelard hails from Gaillac, located between Bordeaux and Cahors. The cross-pollination probably occurred on the banks of the River Lot in Cahors, perhaps before France was conquered by Roman legions or later, in the Middle Ages.

  Around 150 A.D., the city of Cahors, which was known as Divona at the time, was the Roman capital of the province of Quercy in what is now France. It was here that the first mention of the grape was recorded, although its precise origins continue to be a mystery. Malbec might have come to Divona from Italy, brought by the Roman invaders, or perhaps it was already in France when the Romans arrived in Gaul, and they simply adopted it and continued its cultivation. It is also featured in literary history: praise for the ancient wine of Cahors can be found in the Odes of Horace and in Virgil’s poems.

  Historians agree that in spite of the foreign invasions that occurred during the decline of the Roman empire, Malbec retained its reputation and continued to be grown.

  When we get to the Middle Ages, the story of Malbec becomes inextricably entwined with that of Eleanor of Aquitaine (1122–1204) the only woman ever to be queen of both France and England. Eleanor inherited a third of present-day France, the Duchy of Aquitaine, from her father. Malbec plantations are thought to have extended beyond Cahors down to the Pyrenees (Madiran) in the South and across the eastern bank of the Dordogne River from Saint-Émilion to Côtes de Bourg.

  Eleanor preferred the wine from her region over the offerings from the Loire and Burgundy generally chosen by the Parisian aristocracy. At age fifteen, she was married to the man who would soon become Louis VII of France. Later on, the “black wine,” as Malbec would come to be known, most likely flowed at Eleanor’s Courts of Love, festivals of music and poetry where Malbec grew to be appreciated as the wine of the nobility.

  According to oral tradition, the Malbec grape expanded from its native Cahors to Bordeaux in the 18th century, introduced by a Hungarian winemaker called Malbeck or Malbek. In Bordeaux, producers used it to lend more color to their clarets.

Why is the Malbec known as “the black wine?” The exact origin of the term is unknown. The epithet could be related to the belief that harvesting the grapes at night improved the quality of the wine, or to the fact that Malbec’s intense color left dark stains on teeth and tongue.

  After fifteen years of marriage, Eleanor divorced Louis VII and renounced the French crown to marry Henry II of England. Their wedding was most likely drenched in Malbec, the royal wine, as chronicled by the era’s historians.

  The union allowed Aquitaine, now under English rule, to sell the Cahors wines alongside those from Bordeaux across the channel. Malbec now was served at tables across England and Ireland. The children of Henry II and Eleanor who came to the throne, Richard the Lionheart and King John, continued to trade with Cahors and promote the wine.

  But an enterprising bureaucrat also played a major role in the growth of wine exports from the Cahors region. In having the boulders removed from the River Lot, which runs through the area, he ensured that circulation and shipping from the interior would be greatly facilitated, much to the benefit of local wine producers. The move also spawned the birth of a rivalry with Bordeaux, whose officials introduced new taxes and restrictions to limit the spread of Malbec from Cahors. To stem this, Henry III of England placed Cahors wine under his personal protection, meaning that Bordeaux officials could not restrict its transport or sale.

  English traders soon recognized a good business opportunity at hand, and turned Cahors into a major urban and financial center. The main thoroughfare to foreign markets was the port of La Rochelle, which also flourished as an economic powerhouse. Centuries later, Alexandre Dumas would choose the port as setting for his classic The Three Musketeers.

  The grape’s prestige continued to rise, and by the 16th century, France’s Francis I, who was originally from Aquitaine, took such a great liking to Malbec that the grape came to be known as the Plante du Roi (the King’s Plant). The sovereign planted Malbec around his Palace of Fontainebleau and at his favorite retreat, the Vauluisant Abbey north of Dijon. It was also the dawn of the French Renaissance, and the king’s influence made itself felt in the art world. He brought none other than Leonardo da Vinci to his court. It is thanks to Francis I that the Mona Lisa hangs today in the Louvre Museum.

  And let’s not forget that the Catholic Church uses wine in its central act of worship: the Mass. History records that when a cobbler’s son from Cahors was chosen to be Pope John XXII (1244–1334), he declared Malbec to be the preferred communion wine. When the Pope was living in Avignon during the Schism with Rome, he grew Malbec at his palace. That’s not all: By the end of the 17th century, the variety had also become the sacramental wine of the Russian Orthodox Church. Tsar Peter the Great had chosen it as a cure for his stomach ulcers. In fact, Peter had Malbec vines brought from Cahors to Russian Crimea, where it became known as Caorskoie.

  Malbec’s storied past is marked by historical serendipity, territorial alliances, sacred uses and healthy attributes. Popes, kings, and nameless bureaucrats all had a role in establishing the grape as one of the most important varieties on the European viticultural stage.

The Splendor Of Moroccan Wine

By: Hanifa Sekandi

shadowed tropical trees

On a robust Saturday afternoon in Morocco, you wander through the souk looking for a stand that brews Maghrebi mint tea. You can feel the history of this land, rich with culture and spirit. Each artisan in this market holds ancient skills, and you know that rare treasures purchased here are indeed worth more than their weight in gold. Time has shown us that sometimes, as people strive for progress, what was once good eventually becomes lost. The souks and riads of Moroc-co allow you to step into the past where time moved slow and living in the moment was the only choice; that life is a series of moments meant to be seized. 

  When we imbibe, sometimes we get lost in the fun, but the true celebration occurs when we al-low our imagination to wander. Time-travel with the fermented grapes of a bottle of Moroccan wine, and ask questions: How did it get across the world to your local wine store? What is the journey and the untold story of the people whose hands brought it to life? Everything created has a story. Allow yourself to get lost in exploration as you travel to northern Africa for the splendor of Moroccan wine.

Slow Growing Vines in the Desert

  Like South Africa, Moroccan winemakers benefit from the favorable weather and terrain. Their proximity to the Atlantic Ocean and high mountains, coupled with cooling trade winds, allow low-lying vineyards to flourish in the foothills of the coastal Atlas Mountains.

  Although Morocco has been making wine for over 4,000 years and is the second-largest producer of table wines in Africa, it does not have a robust wine industry or a history comparable to South Africa. The beginning of viticulture in Morocco originates with the Phoenician settlers who ush-ered in trading colonies. Still, it was not until the arrival of French colonialists in 1912 who brought with them winemaking that the wine industry began to take form. Although this was the start of large-scale wine production, it was not a fortuitous upward venture. The Moroccan inde-pendence in 1956 saw a slump in wine production. When the French left, they took their wine-making expertise, leaving approximately 55,000 hectares of wine unattended. Morocco’s wine industry underwent a significant decline.

  Another roadblock for Morocco’s wines was in 1967 with the introduction of European Econom-ic Community quotas. Now, wines with the label made in France, for example, could not contain grapes from other countries. In turn, this exponentially reduced the exportation of wine to EEC countries. During this time, Moroccan vineyards were unable to thrive, with limited entry to time-honored markets. In addition, surplus production from Mediterranean wine-producing countries made it hard to measure up.

  Further, the infrastructure and the resources needed to scale production like its competitors proved uneconomically feasible for Moroccan vineyards. This led to vineyards planting and har-vesting different crops. In the early 1970s to the mid-1980s, vineyards were taken over by the state, and new protocols further diminished wine production. Additionally, vineyards could not compete due to fixed grape prices that were not determinant on the quality of the grape yielded. Most vineyards were deemed poorly operable due to insufficient production and management.

  The turning point for Morocco’s wine industry began in the 1990s under the rule of the second king of Morocco, Hassan II of Morocco, a graduate of the University of Bordeaux in France. He was known as the peacemaker for foreign relations in northwestern Africa, and, as a result, he parlayed the return of French investments and prowess in winemaking to Morocco. French inves-tors were offered long-term lease agreements for vineyards owned by the state agricultural com-pany. This offer was also extended to other foreign investors who could improve the Moroccan economy with industrious ventures. Tailan, William Pitters and Groupe Castel, well-known Bor-deaux-based wine companies, seized this opportunity and rejuvenated Morocco’s wine industry. It has proven beneficial on the world stage since Morocco’s Boulaouane a Castel is now a best-selling wine in France. Hassan II of Morocco’s efforts have been attributed to the revival of Mo-rocco’s wine industry and becoming the second-largest producer of wine in the Middle East. This accomplishment is worth mentioning given that Morocco is a predominantly Islamist governing country that prohibits the consumption of alcohol and sale of alcohol locally. Wine is sold at ho-tels and restaurants and contributes to keeping up with tourism demands.

What We Plant Grows

  The international wine export industry has helped Morocco gain recognition. France is the top consumer of Moroccan-made wine exports, followed by Belgium and England. There are five wine regions in Morocco, with fourteen AOGs and three AOCs. The difference between AOC, appellation d’origine contrôlée, and AOG, appellation d’origine garantie, is the grape quality control measures utilized. Popular and familiar tourist wine regions are Casablanca, Boulaouane, and Meknes. Since 75% of wine production is red wine, wine lovers will find an array of red grape Rhône varietals. Vin Gris makes up the remaining percentage of wines along with white wine and the beloved Moroccan Rosé. Vineyards grow Syrah, Merlot, Grenache, Cabernet-Sauvignon and the traditional Carignan grapes which once dominated. Other grape varieties in-clude Sauvignon Blanc, Chardonnay and Chenin Blanc. Vin Gris is a greyish-pink-hued wine blended with rosé and white wine.

  A blue-black grape table wine that is indigenous to Morocco is Taferielt. Its origin traces to the Moroccan wild vines that once cloaked the Rif mountains in the sixties. Before pre-phylloxera, where disease plagued vineyards, this vine, called Farrana Noir, could be found in the Balearic Islands. It has yet to make a name for itself but is known by those who visit Morocco. As with all hidden gems, it will have its moment in the sun as Morocco slowly gains recognition in the pres-tigious wine market.

  Wine revelers will note that the cost of Moroccan-made wines is reasonably cheap, but this does not denote the quality. However, some will say that since it is still a burgeoning wine market, people in Morocco are not as discerning about wine as they would be in Europe or North Ameri-ca, where wines are scaled differently.

  Only about 5% of the approximately 40 million bottles produced annually in Morocco are ex-ported. This number is quite eye-opening given the parameters around alcohol consumption in the country. The mystery of who is consuming these wines will only be revealed to those who consume them. That said, this staggering number demonstrates a demand for wine in Morocco even though it is not heavily promoted within the country. It could be a new generation of wine consumers, similar to Germany, where millennials are reviving the viticulture landscape. Those who study abroad return home with a palate that enjoys a glass of wine when dining. Further, they recognize that Morocco houses vineyards with delightfully good wines.

  The stories of Moroccan vineyards are waiting to be told. It is the people who own the land and are responsible for bringing the wine to life who hold what is still unknown. These vineyards are more than just land that grows vines. They demonstrate that what we plant grows, and growth is painful yet beautiful.

Notable Moroccan Wines Domaine des Ouled Thaleb Estate

Zenata Rosé – Domaine OTB

    Zenata Rosé – Domaine OTB is a crisp and refreshing plump cherry and cranberry wine with floral notes. It is made by the Domaine Ouled Thaleb Estate, the oldest and most well-known winery in Morocco. Established in 1923, the winery is named after the tribe that works the winery and owns the land. The composition of this concrete tank-fermented rosé is 30% Syrah, 20% Cinsault and 50% Grenache. This vineyard, known for its exceptional rosé, is located in the northeast Casablanca wine region.

Les Celliers De Boulaouane

Thalvin Boulaouane Vin Gris

  Vin Gris is a popular wine that is a beautiful blend of Cabernet Sauvignon, Cinsault and Grenache. This is an airy, refreshing wine with floral notes and hints of fresh berries that remind you of hot summer days. Smooth caramel, citrus and honeysuckle notes provide a nice overall finish. This is a popular Moroccan wine for tourists.

Winery Bonassia

Bonassia Cabernet Sauvingon

  Fruity, sweet, and warm with a hint of spice is the   best way to describe this smooth, rich red wine. It pairs well with flavorful Moroccan dishes such as Tagine. Aromatic notes of nutmeg and vanilla enhance the flavor of spices without overpowering the palate.

Barrel Sanitation: All Methods Are Not Created Equal

By: Gerald Dlubala

4 barrels smoked

Quality winemaking requires quality ingredients. Nothing new, you think. No big revelation there, you say. You take great care of your vineyard, with constant attention to the vines, fruit structure and soil. Your timing is just right for pruning, harvesting and the winemaking process. Then, after meticulously planning and carrying out the harvest, crush and fermentation with precision instruments and experience, it’s time to put that product into the barrels for aging.

  Are you as meticulous with your barrels? Even though grape quality is the main attribute in producing quality wine, there’s no doubt that cooperage is an expensive component in wine production, always coming in near the top of the expenditure list. Wooden oak barrels are challenging to clean and sanitize because they are, by nature, part of a living organism that is porous and layered. Combine this with a small access point, and you have an environment that is susceptible to micro-organisms that cause spoilage, with Brettanomyces being the primary concern.

  Often labeled as a winemaker’s biggest sanitation headache, Brettanomyces is a type of yeast found in nearly every stage of the winemaking process, from the grape skins to the barrels. It can be challenging to control or eradicate because it grows into the barrel wood and becomes hidden. Brettanomyces seldom reveal themselves during the fermentation process but rather prefer to flourish during aging. Some winemakers claim that a low level of Brettanomyces can give wine desirable characteristics, but any more than that will ruin the whole batch.

  In-barrel wine spoilage and short barrel life are problems facing the wine industry. Under the best conditions, wine barrels require a routine maintenance regimen to control taste- and aroma-fouling bacteria in affected barrels and keep them from taking over new, unaffected barrels.

Steamericas: Blending Science With

Eco-friendly Process

  “Winemakers should clean and sanitize their barrels absolutely after every use,” said Yujin Yoo Anderson, General Manager of Steamericas. “By sanitizing with a dry steam process, you can simultaneously sanitize and hydrate them to prepare them for their next use. The same goes for breweries and distilleries when hydrating vats or foeders before filling them.”

  Anderson told The Grapevine Magazine that there are many reasons that a sanitation program using dry steam is preferable over the lesser effective traditional methods.

  “The eco-friendliness aspect is always a priority,” said Anderson. “But ultimately, science has taught us that high heat effectively kills unwanted organisms. Dry steam, a gaseous state of boiled water above 212 degrees Fahrenheit, can penetrate barrel’s staves up to eight to nine millimeters depth and deliver high enough heat to remove Brettanomyces, which grows into the wood and is particularly hard to remove using other traditional cleaning methods. Additionally, there are quantifiable operational benefits to using dry steam sanitation for your barrels as well. Less water use means less time filling the barrels and less water and treatment costs. Dry steam uses as little as half a gallon of water per barrel in the entire sanitation process. Using dry steam is the quickest and most thorough way to sanitize a barrel, and it’s also a popular method to swell or rehydrate wooden barrels for not only wineries but also breweries and distilleries.”

  Anderson said that Steamericas’ Optima steamer uses only about a half-gallon of water to rehydrate and sanitize a barrel, and it accomplishes this in just a matter of minutes. The lack of wastewater production and the elimination of chemicals allow wineries to comply with the Clean Water Act.

  “The biggest challenge of using dry steam for your sanitation process is the upfront investment along with having enough power source,” said Anderson. “We typically recommend an 18kW steamer or higher for winery applications, requiring a three-phase power with preferably 480V. Wineries with 208-230V will need much more amperage. This type of investment may not make sense for a micro-winery with lower production rates and no bottling line. But to help offset the cost, a dry steamer with the proper accessories can serve as a winery and vineyard pressure washer without the wastewater runoff to clean equipment, fermentation tanks, floors and facilities, and whatever else needs a thorough cleaning.”

  Steamericas’ Optima steamer can be used as a stand-alone cleaning station to sanitize two barrels simultaneously. For more extensive facilities, the Optima can be paired with an automatic barrel washer line and loading system to clean and sanitize four barrels at a time. Maintenance largely depends on the facility’s water quality. Softened water is a must, meaning water treatment may be necessary for some instances. Steamericas sells and services their equipment through local distributors, but the machines come with display screens for real-time communication, so remote service is available if needed.

The Hot Water Treatment

  Hot water treatments using water heated to 85 degrees Celsius for at least 20 minutes have proven to effectively clean oak barrels and remove the acetic acid bacteria, Brettanomyces and yeast from the wood surface down to a depth of five to nine millimeters. The disadvantage of using hot water exclusively is the amount of time spent filling the barrels, the amount of water used and the resulting amount of wastewater produced.

Specialty Chemicals Can Harbor Hidden Expense

  Some sanitation methods for barrels require the use of specialty chemicals. One of the most popular chemicals for barrel sanitation is a Sodium Bisulfite solution mixed with a specific recommended amount of citric acid solution. It’s added to a barrel with water, sealed tightly, and then agitated, so the solution comes in contact with all interior surfaces. Next, the barrel is drained, thoroughly rinsed, filled with fresh, clean water and left to soak overnight. Several more rinses are needed before the barrels are ready for use, so the time and labor required for this method may be a deterrent as a standard sanitation method.

Aggressive Sanitation Methods Include Barrel Deconstruction

  Dry ice blasting and shaving of the inner surface area of the barrel can be effective but require at least partial deconstruction of the barrel, resulting in a time-consuming, expensive process. These aggressive processes also strip the barrel of any oak flavors and other qualities built up from prior use. As a result, the barrel becomes neutralized and no longer imparts flavor to the wine. Some winemakers use neutral oak barrels intentionally, depending on the winemaker’s goals. Still, continued use of these more aggressive sanitation methods naturally decreases the number of times a barrel can be sanitized.

Bubble-tech gmbh: High Power Ultrasound Sanitization Retains Barrel History and Integrity

  “The location of viable micro-organism cells within any barrel environment determines their chances of survival,” said Darren Bates of Bubble-tech gmbh. “Populations located within the arc of the barrel between the head stave and bilge have the greatest opportunity to survive and proliferate. Our studies show that applying high pressure or hot water sprays to the interior of barrels does not completely inactivate Brettanomyces cells. Methods like power washing, scraping and blasting destroy the toasted oak aroma compounds formed and retained in the toasted layer of a barrel. When using High Powered Ultrasound, a sonotrode gets inserted into the barrel with a small amount of heated water. The barrels are cleaned and disinfected in five to 13 minutes with no need for additional chemical rinses and using minimal energy consumption. HPU has also shown to better retain the organoleptic properties that are present over other cleaning and sanitization methods.”

  Bubble-tech gmbh specializes in using ultrasonic technology in industrial processes for beverage industries, including cleaning, sanitation, extraction and defoaming methods. Bates has extensive experience providing industrial ultrasonic technology and solutions for the wine industry, successfully cleaning and sanitizing oak barrels ranging from one through seven years of age.

  “In terms of how long we can extend the life of a barrel, on the conservative side, I would say two years as a minimum, but realistically it could go up to four years with an HPU cleaning frequency of one-to-two-year intervals. The HPU sanitation procedure has been successful in eliminating tartrates and reducing and removing viable cells of Brettanomyces while preserving the toasted oak qualities that winemakers desire in their red wines.”

  The advantages of using a clean technology like HPU for barrel sanitation include consistent and repeatable results with no chemical residue that reduces sulfur dioxide and taint-causing or hazardous chemicals while lowering labor, energy and barrel costs.

Not All Barrels Are Salvageable

  Dr. Bates told The Grapevine Magazine that infections of barrels with spoilage micro-organisms like Brettanomyces could have a marked influence on whether a winemaker can reuse a barrel. By using HPU, he hopes to extend barrel life by effectively removing tartrates, solid residues, micro-organisms, biofilms and taint compounds from surfaces and pores, and also removing anthocyanin pigments that Brettanomyces can break down.

  “Additionally,” said Anderson. “If a barrel wasn’t stored properly and the gaps between staves are beyond repair with swelling, or the labor and time spent to sanitize an affected barrel outweighs the cost of a new one, then it may be time to call it quits and make it into a cool souvenir.”

Choose Environmentally Friendly Options

  “Mainly, you want to consider the amount of water used, the resulting wastewater that will require treatment, and the potential side effects to humans and the environment of any chemicals used,” said Anderson. “While ozone is a powerful sanitizer, it can adversely affect humans in contact with it before it’s dissolved in water, causing nausea, headaches and respiratory issues. Mainstream methods of barrel sanitation tend to use a lot of water and chemicals that need treatment to lower the Biological Oxygen Demand before disposal.

  Water with a high BOD level means less available oxygen for aquatic organisms, potentially stressing and killing them. A typical Burgundy barrel holds 60 gallons, and a medium-sized winery could have thousands of these barrels in use. Imagine how much water and ecosystem you could save if you do not have to fill the barrels to capacity to sanitize them. It’s easy to see that the sanitation method that you choose as a winemaker is important.”

Final Notes

  When using any sanitation method, it’s crucial to include a barrel inspection. Even under optimal conditions, the best sanitation practices can produce side effects, ranging from the production of unwanted byproducts, some of which may be corrosive, to causing damage to already degrading rubber fittings, gaskets and some metals.

Pros, Cons & Best Uses For Various Winery Tanks

By: Alyssa Ochs

huge winery tanks in a facility

The cost of winery tanks tends to increase each year and can be heavily taxed in certain situations. So, it is wise to do your research and stay up-to-date about what types of tanks are available, effective and trending. Choosing a winery tank may seem straightforward enough, but there are a lot of factors and considerations to keep in mind before making a purchase.

  Various types and styles of tanks are available to wineries today based on size, material, and function. Fortunately, there are businesses specializing in tanks and tank-related products for the wine industry. These companies can offer a wealth of information about the best uses for this vital piece of equipment.

An Overview of Winery Tanks

  Tanks are used for many different purposes in a winery setting, including clarifying and removing tannins, proteins, and other solids. Tanks aid the prolonged aging of wine and assist with wine fermentation so that yeast grows properly and oxygen is controlled. Certain tanks can make wine smoother, fuller or fruitier in taste.

  A variety of materials are used for constructing wine tanks, including steel, wood and concrete. Porcelain, oak, clay/amphorae and plastic are other tank materials used by wineries.

Pros & Cons of Stainless-steel Tanks

  The type of tank chosen for your winery will depend on the purpose, budget and availability. For example, both general and multi-purpose tanks are used to make wine. Meanwhile, wineries use tanks for non-winemaking purposes, such as storing water for irrigation, collecting wastewater generated from winemaking, collecting chemicals for cleaning and having emergency water on hand for potential wildfires.

  Stainless steel tanks are cost-effective and last a long time. They come in different shapes and don’t add tannins or flavors, which is desirable for many wines. However, lately, there has been more international demand for stainless steel bought in bulk, making the costs higher than in the past.

  Scott Dapelo, the sales manager for Quality Stainless Tanks, told The Grapevine Magazine that enclosed, top fermentation and storage tanks are the most popular type that his company sells to wineries.

  “We make them in sizes from 500- to 50,000-gallon capacities,” Dapelo said. “The most common are the 2,000- and 6,500-gallon versions.”

  Based in Windsor, California, Quality Stainless Tanks provides custom-designed and ready-made tanks for wine, beer, spirits and special applications. The company hand-crafts its products in Northern California’s wine country and has the wine industry’s largest line of in-stock fermentation and storage tanks.

  “The sanitation aspects of stainless is a great advantage, as is its unparalleled longevity when compared to wood, plastic or concrete vessels,” Dapelo said.

  Julien Roussel from Algor, a stainless steel tank producer in Italy, told The Grapevine Magazine that his company’s most popular models are the FVPP and FCPT. These are pre-configured variable capacity tanks that come standard with welded legs, a sample valve, drain and racking ports and a complete floating lid kit.

  “FVPP tanks have flat bottoms with sump and accommodate volumes of 230 to 1,500 liters, or 60 to 396 gallons,” Roussel said. “FCPT tanks come with dish bottoms and accommodate volumes of 2,000 to16,000 liters or 528 to 4,226 gallons. Additionally, FCPT vessels come standard with a man-way door, 360-degree cooling jacket, thermometer and pulley arm. These versatile lines offer aseptic environments and can be used for vinification and storage. Moreover, our customers value the fact that all the accessories are manufactured in-house for seamless integration and consistent quality.”

  Roussel said Algor uses certified European AISI 304 and AISI 316 grade stainless steel alloys for its tanks. Both tanks offer high corrosion resistance and ease of cleaning, resulting in negligible product contamination.

  “The 304 is perfect for most applications and budget-friendly,” Roussel said. “The 316 can be worth the expense if you need to have superior corrosion resistance, such as if the tanks live outside and in the proximity of the ocean or if you produce wine vinegar. Our customers also opt for 316 when producing some specific wines such as whites from the Burgundy and the Chablis regions in France.”

Pros & Cons of Other Types of Tanks

  Wood tanks intentionally change the flavor and texture of wine. They are usually cylindrical and often used for decades; however, they offer the best sensory changes within the first two to three years of use. Wood tanks keep the fermentation at a warmer temperature, making it necessary to monitor that temperature closely and requiring more labor hours.

  Meanwhile, concrete tanks are porous and let some oxygen in during fermentation. Concrete offers more gradual fermentation and a more authentic representation of the wine without adding oak. However, concrete tanks can be challenging because of sanitation difficulties and cracking due to temperature changes.

  Amphorae is a nostalgic and historically used tank material that offers a natural approach to winemaking. These types of tanks come in various sizes but are not readily available and are more labor-intensive to use than the other options.

  Plastic tanks started being more widely used for wine in the 1980s and are still cost-efficient today. They can help wineries maximize their floor space and allow oxygen to permeate through the tank walls because of the polymer construction. There have been concerns about the quality of wine produced in plastic tanks, the wine’s lack of character, and the plastic odors left behind in wine from the tanks. Yet the stigma of plastic tanks has been fading away with the emergence of higher quality polyethylene tanks that defy all of these concerns and are safe for food and beverage purposes.

Other Wine Tank Considerations

  Cost is always a huge consideration when choosing wine tanks. Stainless steel tanks are often produced locally, making them easier to find and eliminating high shipping costs. Also, stainless-steel tanks tend to last considerably longer than oak and can save a winery money over time. Variable-capacity tanks commonly run between $500 and $5,000, based on size and features. But don’t forget about the costs of tank accessories and ongoing maintenance, so they don’t exceed the equipment budget for the year.

  Another consideration is how to keep tanks and their contents safe and protected in case of an emergency or natural disaster. Onguard Seismic Systems is a New Zealand-based company that provides patented seismic systems for liquid storage tanks that protect the tank, its contents, the people and the environment from earthquakes.

  “Losses suffered from earthquakes in global wine regions are numerous and include loss of product, loss of market share, insurance deductibles and compromised infrastructure,” Will Lomax, Onguard’s founder and managing director, told The Grapevine Magazine. “These losses can be avoided with the use of the Onguard seismic system. Unlike most incumbent anchoring methods seen in the U.S., Onguard’s energy-dissipating anchors also meet the U.S. building code’s seismic requirements for the design and construction of liquid storage tanks. The Onguard system can be installed on new tanks or retrofitted to existing tanks to improve seismic performance and resilience.”

  Lomax explained that winery tanks are generally either mounted onto elevated stands or placed directly onto a concrete slab or elevated pedestal. He said that tanks on stands require a full engineering design of the stand and the tank, which often gets overlooked.

  “Optimum seismic performance of tanks on stands is achieved by detaching the tank from the stand and installing the Onguard anchors between the two, rather than at the feet,” Lomax said. “Tanks mounted onto concrete are a simpler structural system, as loads are transferred directly from the tank to the concrete. In recent years, some owners in the U.S have elected to mount the tank onto a stainless steel ‘skirt’ which is then infilled with a concrete slurry after the tank has been placed on the concrete slab. This method is very common in New Zealand and results in a very clean and tidy facility, with no projections for hoses to catch on and easy wash-down.”

  While some tank styles were once commonly used for winemaking, they are becoming less common now in modern times. For instance, concrete has been a less common material for wine tanks in recent decades due to safety concerns and the popularity of stainless-steel tanks. Yet more recently, concrete has become much safer to use and comes in egg shapes and square shapes to increase the surface area contact between the wine and yeast. Clay/amphorae tanks are rarely used today but are a historical relic and throwback to old times for wineries looking to tap into their customer’s sense of nostalgia.

  “Historically, it was common to leave tanks unanchored or poorly anchored,” Lomax said. “Thankfully, things have changed, and more attention is now paid to improving seismic performance. Unanchored or poorly anchored tanks should be assessed and retrofitted. The investment is well worthwhile given the potential for significant losses and can also lead to preferential insurance terms.”

Choosing the Ideal Tanks for Your Winery

  Stainless steel is timeless and long-lasting, so it is the material of choice for many wineries––at least at the start. Some wineries also prefer oak, but they need to be prepared for extra maintenance hours for cleaning, curing, topping off, emptying, and doing sulfur treatments.

  Lomax from Onguard Seismic Systems said that the structural design of tanks is a complex exercise and should only be undertaken by engineers who have the knowledge and experience to provide functional and compliant designs.

  “The tank, anchorage and foundation should be designed as one integrated system and should comply with the seismic requirements of the current building code,” Lomax said. “The code mandates ductility in the anchorage system and energy dissipation through the permanent stretching of the anchors in a seismic event. This is often overlooked, for example, when tanks are simply welded to steel plates embedded into the concrete foundation, which almost guarantees significant losses in a design-level earthquake.”

  Roussel from Algor said that some wineries make the mistake of believing that more expensive is always better. For example, there are two bottom configurations for Algor’s large tanks: dish bottom and slope bottom.

  “The dish bottom is rounded with a drain at the center and lowest point of the dome,” Roussel said. “Slope bottom vessels have a flat bottom that slopes at a 5 % angle towards the drainage outlet. This design is recommended if you are frequently draining your tank. It is generally understood that dish bottom tanks are better for white wines and slope bottom vessels for red wines. However—and this may sound obvious—if budget is a concern and the goal is to make great wine, it is more important to focus on the quality of the grape than going over your budget to get all the possible bells and whistles.”

  Meanwhile, Dapelo from Quality Stainless Tanks told The Grapevine Magazine that a common mistake wineries make is buying cheap, imported tanks that are less durable and impossible to get repairs and parts when needed. He said wineries should “deal with a local provider that has a history of reliable performance, offers custom designs and keeps their promise on when you’ll receive your tanks.”

Vineyard Crop Insurance

By: Trevor TroyerVice, President of Operations for Agricultural Risk Management

vineyard soaked in water

Risk Management is always something that is subjective to a grower. How much risk do you feel comfortable with? Or maybe how much risk are you willing to take, even if you aren’t that comfortable? Farmers are naturally risk takers, otherwise they would not be farming. Mother nature is unpredictable, just when you think everything is going to turn out right it doesn’t. Obviously, it turns out ok more often than not. But what about those years when it doesn’t? Sometimes you can have several bad years in a row. Crop Insurance is a good tool for that.

  The Federal Crop Insurance Corporation (FCIC) was created in 1938. Originally coverage was limited to major crops. It was basically an experiment at that time, until the passage of the Federal Crop Insurance Act in 1980. The 1980 Act expanded the number of crops insured and areas in the US. In 1996 the USDA Risk Management Agency (RMA) was created. RMA’s purpose was to administer the Federal Crop insurance programs and other risk management related programs.

  Grape Crop Insurance goes back to 1998, the current policy was written in 2010. Crop insurance is a partnership with Insurance companies and the FCIC. Crop insurance is partially subsidized through the USDA. Currently there are 13 Approved Insurance Providers authorized to write crop insurance policies with the USDA. Prices and premiums are set by the USDA per crop, state and county. There is no price/premium competition from one company to the next because of this. Independent insurance agents sell for these 13 different insurance providers. They may specialize in crop insurance or other lines of insurance. It is always best to work with an experienced agent that has crop insurance as their main focus.

  Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington. Crop insurance is not available for grapes in all counties though. Insurable varieties are also different between states and counties. As I mentioned before prices are different between states and counties as well. The USDA price for a ton of Pinot Noir in Oregon is different than a ton of Pinot Noir in New York.

  Grapes are insured under an Actual Production History (APH) plan of insurance. An average of the vineyard’s production per variety is used. Grapes need to be in their 4th growing season to be insurable. A minimum of 4 years is needed to do the average, if the grapes have just become insurable then a Transitional Yield (based on the county and variety) is used in place of any missing years. A maximum of 10 years can be used to determine the average if a vineyard has been in production for that amount time. Basically, you are insuring an average of your tons per acre per variety.

  With crop insurance you cannot cover 100% of your average production. You can choose coverage levels from 50% to 85%. There is a built-in production deductible. Coverage levels are in 5% increments. Coverage levels are relative to premium, the lower the coverage the lower the premium, the more coverage you buy the higher the premium. It comes back to how much risk you feel safe with. You can also For example, if you have Cabernet Sauvignon in California and your average is 5 tons per acre. At the 75% coverage level you would be covered for 3.75 tons per acre. You would have a 25% deductible (1.25 tons per acre). To have a payable loss you would have to lose more than 25% of your average production.

  The Causes of Loss per the policy are; 1. Adverse weather conditions; 2. Fire; 3, Insects; 4. Plant disease; 5, Wildlife; 6. Earthquake; 7. Volcanic eruption; and 8. Failure of irrigation water supply. There are more details to the causes of loss, you can’t have a loss due to plant disease if you are not applying sufficient and proper applications of control measures. Adverse weather conditions can be excess moisture, drought, extreme heat, frost, freeze etc. Fire can cause “smoke taint” and that is covered. Inability to market the grapes for any reason other than physical damage from an insurable cause is not covered. Damage due to phylloxera is also not covered.

  There are sign up deadlines with all crop insurance policies. This is the same for Grape crop insurance as well. The deadline for all states other than California is November 20th. For California the deadline to sign up is January 31st. Premiums are not due at the time of sign-up; premium billing is done in August.

  Agricultural Risk Management is a national crop insurance agency with offices in Florida, California and Pennsylvania. 2022 will be our 20th year of selling crop insurance.

 For more information, please email info@agriskmgmt.com or call (239) 789-4742, Trevor Troyer: Vice President of Operations for Agricultural Risk Management

Domaine Nicolas-Jay: Melding Burgundian & Willamette Valley Wines

By: Becky Garrison

Jay estate winery & tasting room
Nicholas- Jay estate winery & tasting room, Dundee Hills AVA, Willamette Valley, Oregon

While many winemakers in the Willamette Valley wondered how they could survive during this ongoing global pandemic, Domaine Nicolas-Jay opened their new winery and tasting room in April 2021. When asked about the unique characteristics of this sustainability-focused winery situated on 53 acres in the Dundee Hills AVA, co-founder Jay Boberg mentions the Tolix benches from France. These benches gracing the deck of their tasting room situated in Newberg, Oregon represent a nod to the winery’s French influences courtesy of winemaker and co-founder Jean-Nicolas Méo.

  Upon initial glance, one may wonder why when asked, Boberg focused on the architecture and not their wines in describing his winery. But for Boberg, one cannot separate the experience of drinking wine from the wines themselves.

  In curating their winery’s ambiance, Boberg and Méo worked together to meld Burgundian and Oregonian influences. Inspired by a visit to the Monterey Bay Aquarium in Monterey, California, they sought to provide their visitors with a similar immersive experience. The end result is a welcoming space with a European country flair that distinguishes itself from the rustic or industrial architectural styles that define many Pacific Northwest wineries’ tasting rooms.

  Guests sit at a kitchen island near the fireplaces as they savor a rotating selection of wines. These wine tastings are paired with locally sourced food served in dishes from New York City-based Lucy Park Ceramics. The tasting room’s wooden floor and two long modern tables were crafted out of the seventeen trees they had to knock down in order to plant their vineyard. Also, Boberg sourced and refurbished the mid-century modern chairs from a local Portland restaurant. Other homey touches include Gold records and other artifacts from Boberg’s decades as a music entrepreneur, a career that included cofounding I.R.S Records and serving as President for MCA/Universal Records for more than ten years. Boberg reflects, “We wanted our tasting room to feel like you’re coming into our living room and so we have lots of personal effects in there.”

The Intersection of Wine and Music

  Boberg began exploring music when he was seven, and later developed his passion for wine when he was in college. His college roommate worked for a wine distributor, a connection that enabled him to taste wines from Napa Valley at a time when his peers were consuming Jack Daniels and Budweiser. Then he met Méo in 1988 courtesy of his sister as both his sister and  Méo were attending Penn State.

  In his journey exploring wines, Boberg met importers Kermit Lynch and Neal Rosenthal, and noted their approach to wines paralleled his interests in music. “Just as these men were championing original wines, I was trying to find artists who were creating music that was truly unique and extraordinary.”

  Boberg finds many parallels between creating music and creating wine. Each year they begin their season in the vineyard with a new canvas. Factors such as weather combined with the particular vines they’ve planted, crop load, canopy management, harvest time, and other winery practices will inform how each particular wine will turn out.

  During his travels as a music executive, Boberg had ample opportunities to connect with such luminary winemakers as Henri Jayer, who is considered the “Godfather of Burgundy,” and known for the quality of his Pinot Noir. Also, Boberg continued his friendship with Méo. As owner and winemaker of the Côte d’Or’s Domaine Méo-Camuzet, Méo spent nearly 30 years making wines from vineyards like Richebourg, Clos de Vougeot, Corton Clos Rognet, and Échezeaux.

Applying Burgundian Influences to Willamette Valley Vines

  Both Méo and Boberg became entranced by the potential and quality of Oregon’s Pinot Noirs. They decided to combine their respective backgrounds in winemaking and marketing to a new region replete with new vineyards, new soils, and a new climate. In this quest, Boberg took the same approach to creating wine that he did when signing artists. “I never signed a band because I thought they were going to be a big hit. I signed them because their music touched me emotionally,” Bobeg reflected. In the same vein, Boberg and Méo wanted to make a wine they wanted to drink in the hopes there were enough people out there who had similar palates.

  In Oregon’s Willamette Valley, they found the kind of balanced, terroir-driven wines they like to drink. In addition, they were drawn to the wine community that considers other winemakers to be collaborators not competitors. Also, the economics of Oregon enabled them to start a viable business compared to launching a winery in California.

  After visiting over two hundred Oregon wineries over a two year span, they learned to recognize the vineyards they loved, as well as the practices in the vineyards and wineries that produced the wines that best suited their palettes. In 2014 they purchased Bishop Creek, an organic vineyard in the Yamhill-Carlton AVA planted in the 1980s. This north-facing site provides cooler temperatures that allow for later ripening Pinot Noir and Chardonnay along with Jory volcanic soils. In 2016, they launched their first release, a 2014 Willamette Valley Pinot Noir that was selected as one of Wine Spectator Magazine’s Top 100 Wines of the year.

  While their initial focus was on Pinot Noir, they expanded their offerings to include limited releases of Chardonnay and Rosé. In addition to the Bishop Creek vineyard, they planted three acres of Pinot Noir on their Dundee Hills property. They will also plant vines that were imported from Méo-Camuzet, which need to be quarantined for a year. Eventually, they plan on having 25 acres of Pinot Noir and Chardonnay in all. Also, they select grapes from other Willamette Valley vineyards including Nysa, Momtazi, Hyland, and La Colina.

Applying Burgundian Winemaking Techniques to Oregon Pinot Noir

  Even though Méo is based in France, he communicates with Associate Winemaker Tracy Kendall and Boberg to collaborate on all aspects of winemaking from harvest to elevage to bottling. In Kendall’s estimation the biggest difference between Nicolas-Jay and other wineries she’s worked with in New Zealand, Australia, Washington, and Oregon is Nicolas-Jay’s refusal to accept the status quo. “Because we’ve always done it that way is never an acceptable explanation for why we do what we do,” Kendall notes. Also, another big difference she found is Nicolas-Jay’s focus on structure and texture in the wines rather than flavor. As she states, “The flavor of Pinot Noir develops if the grapes are picked for texture and weight and if fermentation is handled in such a way as to create the desired textural outcome. This to me is an old world approach to winemaking and I’ve been excited to see the success it has with Oregon Pinot Noir.”

  A key difference they noticed between Méo’s wines produced in Burgundy versus Oregon is the amount of new oak used. While Méo uses somewhere between 50% and 100% new oak in his Burgundian wines, they found the terroir of Oregon meant they needed to use 30% new oak in order to get the taste they desired for their Oregon wines.

  According to Kendall, Nicolas-Jay’s use of a gravity flow passive winery means that from the time the grapes reach the winery to the time they get to their fermentation vat they are not pumped anywhere or mechanically moved from location to location. “This allows for a gentle, reductive process that keeps the grapes and juice protected prior to fermentation,” she observes. Their winery is designed appropriately with an upper deck where the fruit is received and sent down the sorting line where it drops into the destemmer and then into the fermentation vat in a seamless manner. 

Moving Forward Post Covid

  When Covid-19 began impacting Oregon businesses in 2020, Nicolas-Jay began offering virtual wine tastings. Initially, they focused on Méo who led masterclass tastings on topics such as winemaking techniques and soil types. Then they pivoted to joint community tastings with other Pinot Noir winemakers. 

  Like some other local vintners, they chose not to release a red Pinot Noir in 2020 due to the smoke caused by multiple Oregon wildfires. However, they did take their Pinot Noir grapes and crush them immediately and not give them any skin contact, which resulted in a white Pinot Noir. Also, in 2020 they produced a Chardonnay and a Rosé. 

  According to Kendall, they harvested earlier in 2021 than they did historically to fight the cumulative heat that caused the grapes to ripen sooner than usual. “We always strive to make a wine with lower alcohol, higher acidity and more overall balance and in this new climate that often means starting harvest at the end of August or early September.” Also, they left more leaf canopy in the vineyard to protect the grapes from sun and heat, which helps to delay ripening as much as possible. 

  As part of their commitment to farming their vineyards using organic and sustainable means, they will be introducing Oregon’s first electric self-driving tractor from Monarch. In addition to reducing their fossil fuel consumption, this tractor brings a software system into play that will enable them to have more control and precision in terms of their farming practices.

  In 2021, Nicolas-Jay produced over 4,000 cases. The winery can make up to 7,500 cases, a goal Boberg thinks they might reach in five years. However, they do not intend to expand their winemaking production beyond this capacity, choosing instead to remain a boutique winery catering to those who share Boberg and Méo’s tastes in wine.

Wine Competitions: Are They for You?

By: Nan McCreary

Every year, hundreds of wine competitions are staged throughout the world. As the wine industry becomes more crowded, winning a medal—especially a gold or a Double Gold—can attract consumers and build brand recognition. But the option may not be for everyone. It’s up to the winery to decide whether entering these events should be part of your marketing strategy.

  Wine competitions run the gamut from enormous international shows to small local events that only feature wines from a specific region or appellation. Typically, wineries submit entries to various classes. The wines are judged by a diverse group of wine experts, who sit in panels of three to five people to taste and consider each wine. Judging is all blind, with the panel only knowing grape variety and class. Wines are evaluated on their own merits—color, clarity, aroma, taste, finish and overall quality—rather than as part of a ranking and, based on voting by the judges, are awarded a gold, silver or bronze medal, or perhaps no medal.

  The Decanter World Wine Awards, the world’s largest and most influential wine competition, defines a gold medal as “an outstanding and memorable wine within its category,” a silver as “a high-quality wine of excitement and personality within its category,” and a bronze as “a well-made and satisfying wine within its category.” Many competitions offer a Double Gold medal, where all members of the panel unanimously award the wine a gold rating. In most competitions, wines advance through a series of rounds: the initial medal round, semi-finals, and the super panel or “sweepstakes” round, where the overall winners are selected.

  Beyond these basics, each wine show varies in size, entry requirements and benefits. Here are three wine competitions that offer a broad range of what to expect when considering entering your wines.

The Decanter World Wine Awards

The Decanter World Wine Awards, founded in 2004, is the world’s biggest and most prestigious wine show. Organized by Decanter—the world’s leading wine media brand—the London-based competition is recognized by wine lovers globally for its world-class judging panels and a rigorous judging process. In the 2021 event held in June, entries set an all-time record of 18,094 wines from 56 countries. Wines were judged over the course of two weeks by more than 160 wine experts, including 44 Masters of Wine and 11 Master Sommeliers, evaluated in flights by country, region, color, grape, vintage and price point. Categorizing wines by price ensures wines are judged against their peers.

  As in all wine competitions, judging is blind, with the panel knowing nothing about the producers. Entry fees are $230 per entry plus a $21 surcharge per order, plus shipping fees. Wineries must provide four samples of each entry. According to DWWA, winning a medal is a “trusted mark of approval for buyers globally and has been proven to increase wine sales, secure distribution in new markets and improve brand awareness.”

Medal winners may purchase DWWA bottle stickers and receive promotion from Decanter through its global digital network, wine tastings, presence at major wine trade shows and exposure to leading retailers throughout the world. For more information, visit www.decanter.com

The San Francisco International Wine Competition

  The San Francisco International Wine Competition is America’s largest international wine competition. Founded in 1980, the three-day event is one of the oldest international competitions in the world. In 2019, there were 4,500 entries judged by 60 experienced and internationally recognized wine experts. Winners are awarded a gold, silver or bronze medal or a Double Gold. The cost per entry is $110, along with the submission of three 750 ml bottles of each entry. Winners receive a marketing toolkit that offers tips for building brand recognition, boosting customer acquisition and retention, and generating publicity and trade attention. Winners also have access to pre-printed bottle stickers; medallion artwork to use in print, internet and social media promotions; discounted point-of-sale promotional materials; and participation in tasting events that provide exposure to target markets. For more information, visit www.sfwinecomp.com

Houston Livestock Show and Rodeo: Rodeo Uncorked! International Wine Competition

  Now in its nineteenth year, Rodeo Uncorked! highlights wine production in agriculture. The event sets itself apart for two reasons: Judging is based on a double-blind procedure, and it is audited onsite by PricewaterhouseCoopers, ensuring the highest integrity. This year’s competition featured 2,862 entries from 17 countries, including 480 wineries from Texas and several hundred entries from this year’s featured region, Washington State.

  Judges for the three-day event include local, national and international representatives from the supplier, wholesale, retail and restaurant branches of the wine trade, as well as members of the press and a select group of knowledgeable local consumers. Winners of the top 13 awards receive custom, hand-tooled leather trophy saddles. Class and Reserve Class Champions are awarded custom belt buckles. All winners have access to high-resolution formats for point of sale materials, including digital medals for online and print marketing and printed bottle stickers.

  The cost to enter the competition is $60 per bottle for early bird entry, along with five bottles of wine per entry. After the show, winners of the top award have an opportunity to participate in three wine-related fundraising events for the Houston Livestock Show and Rodeo. They include Rodeo Uncorked! Roundup & Best Bites Competition, where 400-500 award-winning wines are served with gourmet foods from top Houston restaurants to over 5,000 attendees; the Champion Wine Auction & Dinner, rated by Wine Spectator Magazine as one of the top five wine auctions in the country; and Rodeo Uncorked! Champion Wine Garden, which offers winning wines for sale during the annual Rodeo in March. Every year, these events generate approximately $6 million charitable dollars to support Rodeo’s mission. For more information on the competition, visit www.rodeohouston.com/wine

What competitions should you enter?

  If brand building is key to your marketing strategy, look at each competition and consider the exposure you will receive as a participant or winner in the event. Also, look at the reliability of judging as a benchmark against your peers, access to digital marketing materials to promote your brand, options for participation in consumer events and cost of entries and bottles versus benefits offered by your entry.

  “The purpose of wine competitions is to advance the brand,” said Paul V. Bonarrigo, co-founder of Messina Hof Wine Cellars, Inc. in Bryan, Texas, and winner of thousands of medals in local, national and international competitions. “Many established wineries that sell out each year do not enter competitions.”

  While some wine competitions may promote an increase in wine sales for winners, that may not be true for all events. “Years ago, wine competitions were tied to retail promotion,” Bonarrigo told The Grapevine Magazine. “When Messina Hof Angel late harvest riesling won a gold medal at the Dallas Morning News, the next week we sold 700 cases to retail in Dallas. Due to the sheer number of competitions, there is very little impact on retail sales today.”

  Bonarrigo, who has entered six competitions per year for the past five years, claims his success comes from building brand recognition. “Today, medals help to reinforce your fan base and can help promote new varieties and new wines. The People’s Choice Competition in Grapevine is an outstanding consumer participation competition. We have consistently won best of class in 75 to 100% of our entries. It has helped us secure a very loyal fan base in Dallas/Ft. Worth and especially in Grapevine.”

  Bonarrigo said he enters some shows simply because he supports and believes in the cause. “A great example,” he said, “is the Houston Livestock Show and Rodeo. Merrill (Bonariggo’s wife and co-founder) and I helped launch the competition.

  “We have won seven saddles—six for Best Texas Winery and one for Top Overall Winery. The Rodeo does a great job promoting the winners with a Grand Tasting and a Wine Auction. Messina Hof holds the record for the highest price paid for a Texas wine at the auction. Our Tawny Port fetched $105,000.”

Sponsorship

For the sponsors of wine competitions, the goal is to market their event to wineries. Jennifer Lindsay, director of the Rodeo Houston Wine Show, said, “We work with local distributors through our winery relations committee to reach out to their suppliers and encourage them to enter. We also offer incentives, such as exposure through the Roundup & Best Bites Competition, the Champion Wine Auction & Dinner and the Champion Wine Garden, ‘the biggest bar in Texas.’”

  Rodeo Uncorked! awards also generate interest in the event. “Our top awards are very unique,” Lindsay told The Grapevine Magazine. “When people see the saddles and buckles in tasting rooms around the world, the word gets around and helps grow our competition internationally.”

  In the world of wine competitions, there is something for everyone. Besides national, international, regional and local shows, wineries can enter competitions that feature women winemakers or specific typologies or varieties. There’s even a competition that judges wines alongside other wines in their particular terroir—the Grand Harvest Awards in California. New classes are continually added: canned and flavored wines, saké and even CBT-infused wines are making their way into wine shows. Whatever your interest, there may be a competition for you.

Free Sulfur Dioxide: Aeration Oxidation Test (Tried & True)

By: Tom Payette, Winemaking Consultant  

woman reacting negatively to a wine

A precise test for a winery to measure the free Sulfur Dioxide in juices, musts, wines and at bottling is critical.  Selecting the proper test can be challenging due to cost and expertise.  Make certain to investigate the options of the many available tests to determine which one gives reliable results when working with your wines.  Having the precise number is imperative to take proper action if needed.  One of the tests, aeration oxidation, is discussed below.  It may seem antiquated but many well established cellars still adhere to this testing system.

  The equipment to run the aeration oxidation test is not inexpensive, the chemistry somewhat daunting, and the glass apparatus has the appearance of being overly fragile and complicated.  The units are expensive however, since we are seeking to measure a chemical in parts per million. A tool to do just that is bound to be costly.  The mechanics and chemistry are not complicated.  Without drawing large chemical equations a summary follows:  Free SO2 is drawn off of a sample of wine after a shift in the pH brings the sample to a very low ph range allowing all the free SO2 to be released and measured.  Once in the gaseous state, the gas is pulled through a hydrogen peroxide reaction flask with an indictor in the flask’s solution.  The hydrogen peroxide (H2O2) reacts with the SO2 to form H2SO4 (a very low concentration sulfuric acid) and H2O (water).  This in turn lowers the ph of the Hydrogen Peroxide collection flask and then the lab technician can titrate this sample with a weak base.  The weak base is measured volumetrically to determine how much of the base it took to neutralize the acid sample and then mathematically use that to formulate the Sulfur Dioxide content of the wine being tested.

Tools and Chemicals

•   25% Phosphoric acid

•   30% Hydrogen Peroxide

•   0.01 Normal Sodium Hydroxide

•   0.01 Normal Potassium Acid Phthalate or Hydrochloric acid.

•   Aeration oxidation indicator dye

•   10 milliliter burette – class A volumetric

•   20 milliliter pipette – class A volumetric

•   25 milliliter delivery cup squeeze bottle set at 10 milliliters delivery –  approximate.

•   100 milliliter graduated cylinder

•   Burette stand and a burette clamp

•   Vacuum source (adjustable) – only a light vacuum source is needed.

•   Aeration oxidation apparatus

•   Distilled water

Mixing and Standardizing Chemicals

•   Purchase or pre-mix your sodium hydroxide to 0.01 Normal.

•   Standardize the 0.01 Normal Sodium Hydroxide against the 0.01 Normal Potassium Acid Phthalate or 0.01 HCL.  Do this daily before each day’s work with this unit to be certain your results will be accurate.  This is a critical part of this test because it must be exact!

•   Purchase or premix the 25% Phosphoric acid.  Pre-mixing may be done by adding 1 portion of 85% phosphoric acid to 2 portions of distilled water. Example:  333.33 milliliters phosphoric acid to 666.33 milliliters water to make one liter.  Transfer a portion of this mixture to the preset squeeze bottle, set at 10 milliliter delivery, so it is ready for use.

•   Purchase the dye indictor because making it is much too daunting.

•   Purchase 30% Hydrogen Peroxide and mix 3.0 milliliters into 97.0 milliliters of distilled water (this should be ample to cover very high free SO2’s).  Add about 2 drops of 0.01 Normal Sodium Hydroxide to this fresh stock mix to shift the pH slightly to the basic side.  This will help the indictor solution to give a vivid “seawater” green at the beginning of each test and after the titration is complete.  Do not use store purchased hydrogen peroxide from a local pharmacy.

Procedure

1.  Make sure your apparatus is clean, set up properly and in good working condition.   After cleaning, rinse all of the lab ware with distilled water to remove any minerals and residues.  Allow to dry.

2.  Make sure the chemicals are readily available and mixed to the proper concentrations.

3.  Fill the 10 ml volumetric burette with 0.01 N. NaOH and make sure all air bubbles are out of the stopcock and delivery tip area.  Inspect.

4.Standardize the 0.01 N NaOH if not already done above.  This is crucial for good measurement.

5.  Rinse the reaction flask with a small amount (5 milliliters) of the premixed 0.3% (or greater) hydrogen peroxide (H2O2).

6.  To the Hydrogen peroxide reaction flask add the amount of 0.3% H2O2 (approximately 10 mils) and 5-6 drops of dye indicator.

7.  Attach the reaction flask into the clamp holder and place the glass bubbler portion back into the reaction flask.

8.  Select a fresh representative sample of the wine to be tested that was already collected and placed in the lab.  Using the 20 milliliter volumetric pipette transfer exactly 20 milliliters of wine into the lower boiling flask.

9.  Be ready to place the wine sample boiling flask onto the remaining glassware to complete the set up.

10.      Add 10 milliliters of the 25% phosphoric acid to the wine sample in the lower boiling flask.  [Be careful with this phosphoric acid since it may splash onto you or into unwanted areas of the apparatus.  Perhaps hold it away from the Aeration-Oxidation set up and over a sink.

11.      Immediately place the rubber stopper onto the wine sample boiling flask making the assembly complete and a “closed system”.

12.      Now turn on the vacuum source to vacuum air through the complete set up.  You should see a “boiling” action in both the wine sample boiling flask and the reaction flask.  This should be vigorous but not so vigorous that effluent is being transferred from one reaction vessel to the next – only air should be moving through the tubing.

13.      Time the operation of the units vacuum for 10 minutes – note the reaction flask should have turned purple in color in the first minute – if any Free Sulfur Dioxide is present.  Continue to monitor the test during the timed 10 minute interval making adjustments to the vacuum source, if necessary.

14.      Turn off the vacuum source after the desired 10 minutes.

15.      Disconnect the reaction flask (the one that turned purple) – from the rest of the lab set up assembly.  This will be done by removing the bubbler assembly from the unit and rinsing off any remaining solution on the bubbler tip with a small amount of distilled water.

16.      Turn to your pre-prepared and standardized 0.01 Normal Sodium Hydroxide burette and record the amount of solution in that burette.

17.      Titrate the solution in the reaction flask from the bright purple it has become back to the seawater green it was before starting the test. 

      (Note: Make sure to capture this endpoint since overshooting it will result in an inaccurate calculation of the sulfur dioxide on the high side)

18.      After the seawater green has been achieved, record the number of milliliters in the burette and write this number down on a piece of paper or in the lab book.

19.      Subtract the number of milliliters used to titrate the solution in the reaction flask and record this number to be used in the calculation portion of the test.  Obtain the exact volume of NaOH, to the tenth, used to neutralize the reaction flask content.  Example: 2.3 mils.

Calculation:

  Here is the formula to calculate the free sulfur dioxide:

Free SO2    =    Milliliters of NaOH * Normality of NaOH * 32000

                                          20 milliliters of wine sample tested

The Knowns Above Are:

  The milliliters of sodium hydroxide used to titrate the reaction flask effluent from purple to green as calculated from the reading on the burette.

  The normality of the sodium hydroxide used above since it was standardized recently.

  The given 32000 number

  The sample size of 20 milliliters.

  From this formula we now have enough information to calculate the free sulfur dioxide in the sample of wine.  If the Normality of the Sodium hydroxide is exactly 0.01N one may see results as follows:

  Let’s assume 2.3 milliliters of Sodium hydroxide was used to titrate the reaction flask effluent back to the seawater green color.  So 2.3 times 0.01 times 32000 divided by twenty yields 36.8 parts per million free sulfur dioxide present in the sample tested.  Part per million is also equal to milligrams per liter.

Summary

  This test is really very simple once one gets over the intimidation of the unit and chemistry.  It is recommended to follow these directions in the lab for 8 to 10 test runs and then to run several dozen others to commit the process to memory.  After running this process approximately one hundred times – read this procedure over again and much of the process will become crystal clear.  When learning this test, try to find a time when few interruptions will be expected so focusing on the task at hand will be easy.

Other Helpful Tips

  Once the phosphoric acid is added to the wine sample – all of the free SO2 is released – it is important to capture all of this SO2 in the Hydrogen peroxide solution – hence the need for connecting the wine sample boiling flask as rapidly as possible to the complete set up.  Make sure the Pasteur pipette is positioned to extend to the bottom of the boiling flask, well below the liquids surface, for best results.

  Set your aeration oxidation unit up as the manufacture has intended for the unit to be assembled.

  While performing the test make sure there is not an exogenous source of Sulfur Dioxide in the area of the testing – such as weighing metabisulfite and creating a dust or pungent aroma.  This may throw off the test leading to false readings on the high side.

  Endpoint: Be sure to catch the end point during titration at exactly the precise time the color changes being sure to swirl the reaction flask during titration.

  Send samples to an outside lab for a free sulfur dioxide test to see if the results achieved “in house” are in range with the certified labs.  Once accuracy is achieved, one may wean themselves off the outside lab but periodically send a random sample to an outside lab to pick up on any discrepancies.

  Wine samples tested should be at or below 68 degrees F and preferably at a cool 55 degrees F cellar temperature.

  Wines abnormally high in volatile acidity and carbon dioxide may give false high reading with this test.

  Water system pressure tanks, with many rural water systems, may cause a fluctuation in the vacuum source while oscillating between the pressure switch settings.  Be ready to compensate for this in the lab, adjusting the vacuum if an aspirator is used.

  The author does not recommend using this set up for total SO2 because it is time consuming, hard on the apparatus’s rubber parts and gives the unit a burned dirty look.  For total SO2 the author recommends the Ripper Method, provided ascorbic acid has not been used in the wine or any components of the blend.   An outside lab may be best for this test in terms of total SO2 as many wines rarely reach very high total SO2’s with today’s winemaking.

Reminders:

•   Make sure all chemicals and reagents are standardized and strengths known.

•   Make sure only gases transfer in the hoses – not liquids.

•   Keep a watchful eye on the vacuum to ensure it is proper and even.

•   Be patient and have quiet time to learn this procedure.

•   Sulfur dioxide is important.  An accurate measurement of the free sulfur dioxide in your wine, in PPM, is critical to your winemaking choices.

Other Suggestions to Consider:

1.  Run several tests on the same wine to see if the number can be reproduced. (?)

2.  Have an outside lab run some tests on the same wine.  Are your numbers in line?

3.  If using sorbates in wine – make sure you have ample SO2 in them at bottling.

4.  Run this test, at a minimum, monthly and more so as adjustments are needed and toward bottling.

5.  Consult a winemaker to determine an appropriate storage free SO2 of your wine and the correct bottling measurement.

  Tom Payette, Winemaking Consultant, has over 30 years’ experience with winery start-ups and assisting wineries already established in the industry.

Preparing for the Exit: Why Winery Owners Need to Develop a Harvest Strategy

By: Edward Webb, Partner, BPM & Kemp Moyer, Partner, BPM

unidentified man at the end of a path

Successfully running a business means overcoming numerous challenges. Owners need to scale the business, find competent employees, deal with regulatory issues like taxes and licenses, and create processes and systems — all while developing a robust customer base and go-to market strategy. For agribusinesses, owners have all these challenges plus whatever Mother Nature decides to throw at them. For California’s wine industry, this includes increasingly unpredictable variables such as drought, flooding, landslide, excessive heat, cold snaps, pests, and the growing risk of wildfires and damage from smoke taint.

  Despite these challenges, several successful business models predominate in California’s wine sector. There are fully integrated vintners that grow their own grapes, ferment them into wine, bottle them, and sell and market the finished product. Some winemakers do not own vineyards and, instead, purchase grapes from various growers before bottling and going to market. Finally, there are virtual wineries that buy completed wine and sell it under a brand name. Each models bring its own unique challenges and opportunities.

  While a few large producers dominate the state’s wine sector, most businesses are family-owned and operated. This can lead to a new and significant challenge: What happens when the owner wants to retire and either hand over or sell the business? When you include a force like a once-in-a-century pandemic, you can understand why many baby boomers — about 10,000 of whom turn 65 every single day — might be looking at an exit strategy right now. But, as you might imagine, exits can be more complicated than just a simple sale when a family is involved.

Planning is Essential

  First and foremost, an owner should start planning a “harvest strategy” well before they are ready to pull the trigger. To paraphrase Benjamin Franklin, failing to prepare is preparing to fail. A harvest strategy is a much more detailed plan than a “kitchen table” document.  It goes into great detail on the owner’s goals when they will exit the businesses. It tells the financial and operating story that the next owners need to know. It does not hurt that after more than a decade of quantitative easing, historically low-interest rates and a multi-trillion dollar government spending plan, there is plenty of cash in the system fueling record M&A activity.

  There are various factors that need to be considered in a well-constructed harvest strategy, and it is essential that these succession plans are communicated to all stakeholders, both in the family and with the company’s vital employees or managers. Talking things through will illuminate potential pitfalls, such as the owner’s children not wanting to continue with the business or being unprepared to take on potentially substantial operational challenges. Key employees might want to purchase the operation or refuse to continue working with a new owner. Understanding these dynamics will help when it is time to put the plan in motion and limit any unpleasant surprises. Planning ahead may also allow time to employ tax mitigation strategies.

  The harvest strategy provides detailed instructions on how the business is managed, including all the different procedures and systems used in the business. This document becomes increasingly vital as owners age because of life’s unpredictable nature. An owner could become incapacitated or worse, and the company might not survive without their critical knowledge. Owners should revisit the harvest strategy frequently for updates. Plans made today could be vastly different in five or ten years.

Understanding Value

  Regardless of what an owner chooses — either handing over the business to their children or selling it to someone else — any transaction requires the company to have a fair market valuation. Federal and state tax authorities will demand it, so selling the business to family for a dollar will not work. This valuation will look at all aspects of the company to determine its worth, including its financial performance, assets, inventory, real estate holdings and even the brand’s value. Qualified appraisers are the professionals that will undertake this task and will use different techniques and methods for the equity and/or underlying assets. Sellers should note that having a valuation supported by a third party can help minimize pitfalls during deals, like overvaluing an asset, which can cause potential buyers to walk away or not engage in negotiations.

  Appraisers can use a few different methods to calculate the value of the company’s real estate holdings. However, putting a price on a business is more nuanced than selling a single-family home. A typical technique would be to look at comparable sales of similar properties in that area and base the valuation on the transaction price. This method would take things like the size of the property into account, but not necessarily the cash flow potential of operations, including the production of grapevines.

  The value of the land and the grapevines depend on several factors, ranging from the variety of the plant, age of the vineyard, plant density, production per acre, and the presence of pests like vine mealybugs (VMB) and Virginia Creeper Leafhoppers or diseases like Grapevine Leaf Roll. Other improvements to the land will affect its price, including trellis systems, irrigation and frost protection systems. An appraiser might estimate the fair market value for this asset by calculating how much revenue the land generates based on projected demand, grape price trends, and the yield the land produces. A discounted cash-flow analysis could also be used to factor in variables like projected cash flows, industry cycles and general economic trends. Of course, an appraiser could use a combination of all these methods to determine the asset’s value.

Brand Awareness

  One asset that could be harder to put a value on is the company’s brand. It is an intangible that could be worth more than all of the physical property and inventory of the company. There are three methods to determine a brand’s value, and they are sometimes used together.

•    The first is to calculate the replacement cost of the brand. Basically, this involves formulating how much time and money it would take to re-create the brand from scratch, which are divided into three subsections:

      Brand Identity: Covers all items used to create and develop the brand’s identity, including the name, designing the logo, novel bottle designs, trademark and legal fees, websites and choosing a color palette.

      Brand Awareness: The cost of advertising, promotion and publicity campaigns for the brand to achieve its current level of market awareness.

      Market Position: This is the cost of retaining the business’s current clientele and includes advertising, discounting with distributors, and building relationships with retailers.

•    The second is comparable pricing. This method requires researching the sale of similar brands and using that as the foundation for a valuation. This can be a challenge if there are little or no sales of similar assets.

•    The third and final method is an income-based approach, also known as an “in-use” approach. This involves calculating the future earnings that can be directly tied to the brand to determine its value. The formula looks at everything from income to cash flow to cost savings generated from the brand.

Sell High

  If a winery owner’s family is not interested in maintaining the business, selling is the other option. The sale could be to an industry peer, a current employee, a high-net-worth individual or even a private equity fund. However, certain factors go into the sale and the final price beyond the valuation process discussed earlier.

  Any potential buyer is looking for the ability to generate future cash flow. Operating a winery takes leadership with specialized education and experience. This knowledge includes how to grow and harvest grapes, the manufacturing process, as well as storage of the wine. If the sale is to anyone but an industry peer or employee, this can hobble a deal or result in a lower sales price. As mentioned earlier, having a detailed manual on how to operate the business can help reduce transition issues that may impact price, but locking down an expert to assist with a sale can be essential to getting the maximum return in a sale.

Distressed Resolutions

  All the information above is based on the orderly sale or transfer of the business at a fair market value. That means there is a willing seller and a willing buyer. However, the price could be much lower in a scenario where the owner is forced to sell or liquidate, either through bankruptcy, the sudden death of key people, or litigation. In these situations, engaging an experienced restructuring professional is essential.  Navigating a distressed situation is difficult, doubly so when the business is yours.

  There are multiple variables for owners to consider and plan for as they create their harvest strategy. Being prepared for this transition will help them avoid costly mistakes or address issues early enough in the process to make them non-factors. This planning is essential to maximizing the value of their business. Owners contemplating making this transition would be wise to start the process and create their harvest strategy today.

Edward Webb has over 35 years of experience in consulting and financial management, including specific experience in business restructuring and leadership advisory services. Edward has a Doctorate in Business Administration and currently leads the Corporate Finance Consulting group at BPM, one of the 50 largest public accounting and advisory firms in the country, where he sits on the firm’s Management Committee.

With more than 15 years of experience in complex financial advisory, and a primary focus on valuation services, Kemp Moyer has led hundreds of business and asset valuations in his career with substantial industry experience in technology, life science, professional services, food and beverage, digital assets, manufacturing, and consumer business, among others. A partner in BPM’s Advisory practice and head of the firm’s Valuation team, Kemp’s valuation experience includes M&A and IPO preparation and support, fairness and solvency opinions, and litigation support and dispute resolution, among other high impact analyses.

Why Your Winery’s Failure to Plan is Planning to Fail

By: Quinton Jay

overseeing vineyard from a winery

When it comes to creating a roadmap for your winery’s success, it can feel daunting to generate one that is both flexible and remains in line with your winery’s goals as a business. If it’s too flexible, then it will be difficult to keep your planning strategy aligned to your internal initiatives; if not flexible enough, your plan can break apart the first time you encounter an unexpected hurdle.

  The landscape of wineries, and wine as a business, is far different than that of five or ten years ago. Because virtually every piece of the value chain has changed — from distributors and retailers/restaurateurs to consumers and capital providers — new strategies, partnerships, and resources are necessary to ensure your winery’s continued success.

  Each piece of this chain has a unique impact on your winery’s business and its future as a brand. In order to not only survive but thrive amidst these changes and others affecting the wine industry, it is paramount that each winery formulates and implements a multi-faceted plan of success to help carry its business forward into the future. As founding father Benjamin Franklin once said, “a failure to plan is planning to fail.” However, like most aspects of operating a business, creating and enacting a successful roadmap is far easier said than done.

The Business Planning Process
Image Credit: Harvard Business Review

For the past 20 years, I have managed, consulted for, and invested in dozens of wineries and other businesses in the wine industry. Each one of those businesses, regardless of size, location, or consumer market all share one commonality: the most successful ones were those that possessed the foresight to plan for both the best and worst-case scenarios. In order to help you create a solid plan for your winery or wine business, I want to help offer some key steps to get you started.

Step #1: Gather the Facts

  Whatever your business plan will look like, you need to have a clear picture of what your aspirations and goals are for it. The obvious caveat here is that, to do this successfully, you will need to envision what you want your business to look like in the future. Do you simply want to be your own boss or create an environment that is a fun and enjoyable place to work? Do you want to grow your winery into one boasting 1,000,000 cases with wine sold throughout retail chains, or do you want to grow it into one with 5,000 cases with a focus on direct-to-consumer sales?

  Whatever your specific case may be, the first thing you need to do when forming your business’s plan is to gather the facts. This starts by analyzing your business’s segmentation, targeting, and positioning in the marketplace. Segmentation, or the process of grouping customers within a market according to similar needs, characteristics, or behaviors, will provide four key benefits to your business:

●   Opportunities for building and strengthening long-term relationships with key customers and partners;

●   Improved marketing efficiency and effectiveness;

●   A better understanding of the competitive landscape, and;

●   Faster responses to the changing needs of your customers

  Once you have the facts of these segments gathered, the next set of facts you need to acquire are those acquired through consumer market research. By gathering information and trends on your wine business’s target market — including who they are, their likes and dislikes, and whether those markets are growing, declining, or remaining steady — you can better understand their wine consumption statistics, trends by price points, as well as the various demographic and geographic trends of that market.

  After these facts have been answered and gathered, you will have a far clearer picture of your winery’s competitive niche, be it through a specific product (or set of products) or as a brand. From there, begin researching competitors with similar niche offerings. Who are they? What are their price points and pricing strategies? Is their business growing, declining, or remaining steady? What are their strengths and weaknesses, and how will your business compare to theirs?

  Lastly, you will need to gather facts about your market’s current conditions. For example, take a look at your distribution channels to see which ones are consolidating or undergoing management changes. Another example of this is to find out whether your target consumer market is purchasing more wine at restaurants, retail stores, or online. Along with external conditions such as changes in shipping laws or current economic fluctuations, each of these fact sets will play a heavy role in determining what your winery’s business plan will look like.

Step #2: Analyze, Synthesize, and Develop Strategic Initiatives

  After you have accumulated the different sets of factual data affecting your winery or wine business, the next step in formulating your business plan is to synthesize these facts with the strategic initiatives you develop that will affect your business’s marketing, sales, and finances as an operating brand.

Marketing Plan

  As a brand, your winery can be defined as the relationship between your business and its consumers. It is a promise to the consumer to deliver a particular experience each and every time. This is what makes the key element of successfully marketing your business dependent on understanding your customers, including their likes, dislikes, and expectations.

  By defining and analyzing your target market(s), you will be better poised to integrate your gathered facts into your marketing plan. You will also need a clear understanding of what your business’s goals are as an organization, which is where your consumer market research — as well as your competitive data set — comes back into play.

Sales Plan

  Once you know what your business’s market is and who it consists of, you can then begin constructing a sales plan to forecast future sales, revenues, and prices. This plan will also let you identify gaps in your supply chain such as those in your distribution network, forecast additional human resources necessary to make the sales you’ve forecasted, and evaluate opportunities for direct-to-consumer (D2C) sales, and the costs of goods sold (COGS).

Production/Winemaking Plan

  Though it may seem obvious, one integral part of a winery’s plan that often gets overshadowed is its production sales inventory (PSI) model. The PSI model allows you to forecast production and the tons of grapes needed to produce each case of wine made, as well as highlight vintage overages or shortages in sales and changes in release dates. Your PSI should also include a plan for sourcing grapes or bulk wine, as you will need to forecast the number of needed (and excess) tons of grapes both by vintage and product, and will help your business determine strategies in dealing with needs or excess of product.

  Overall, your production plan’s purpose will act as a precursor to your financial plan, as it will grant you the ability to analyze internal capacity and forecast the following factors:

●    Crush, production, and dry goods expenses;

●    Barrel needs;

●    Bottling costs, and;

●    Capital expenditures

  In order to create the clearest picture of these possible, you will need to gather historical data and information on your business. This historical data will likewise play a key role in forming your business’s financial plan.

Financial Plan

  When gathering and analyzing your business’s historical data, you will want to consider factors such as your historical crush and production expenses which include your COGS. Keep in mind that salaries, benefits, supplies, repairs/maintenance, utilities and rent, as well as depreciation all play a part in calculating your COGS. Along with this, your business’s packaging, bottling, and warehousing costs will also factor into your COGS value.

  Now that you have a clearer picture of your business’s COGS, as well as its sales and marketing plan, you can get started on formulating your financial plan. This will help you summarize your gross revenue, price support, EBITDA (operating profit), and net income, as well as craft stronger balance sheets and cash flow statements to better understand your business’s profitability by its products sold.

  Along with these factors, your financial plan will also need to include an income statement to show your business’s operational performance over time, a breakeven statement to show the volume of revenue from sales to balance the sum of its expenses, and a product profitability statement to compare your revenues COGS, and gross profit per case to ultimately determine which products are generating the most profit for your business.

  Each one of these individual plans is meant to help form concise and easily understood strategic initiatives for your winery or wine business. Together, they act as the foundation for creating and implementing those initiatives, as well as helping to determine which initiatives are meant for short-term or long-term business growth.

financial plan flow chart
Image Credit: Bacchus Consulting Group

Step #3: Aggregate Into the Business Plan

  Still with me here? Great — now that we’ve covered each crucial element to your winery’s plan, the next step is to outline that plan in a way that is easily digestible for you, your core team, your partners, and/or investors. As an example, a general outline for your business plan will appear as follows:

I.      Executive Summary

II.    Business Description

III.   Marketing Plan

IV.   Sales Plan

V.     Winemaking/Vineyard Operations Plan

VI.   Management and Organization

VII.  Finances

VIII. Appendixes

  Incorporating all functional plans of your winery or wine business into one unified document is where the results of each prior phase gets pulled together. This business plan will serve as the guiding document for your business’s entire organization, as it coordinates each sub-plan together to prepare them for execution.

  When aggregating each sub-plan into your unified business plan, remember to collectively review your business’s strategic initiatives and incorporate them into the business plan according to each initiative’s specific function to ensure that your business’s structure — including its capital structure and financing — are geared for long-term growth and success.

Step #4: Develop Tactics and the Operating Plan

  The last key step in forming a solid plan for your winery or wine business is to develop tactics and its operating plan. Though similar to a business plan, your operating plan is less an outline for your business as you envision it in the future and more a roadmap for how you will get it there.

  As a rule of thumb, the tactics you create for your business must include (and clearly answer) the following criteria:

●   What will be done?

●   When will it be done?

●   Who will get it done?

●   How do these tactics define our success and how that success will be measured?

  This is the point in planning where your key performance indicators (KPIs), otherwise known as the metrics used to measure your business’s success internally, become a vital element of your business’s future success or failure. If you haven’t already created KPIs use the SMART method:

●   S: Specific

●   M: Measurable

●   A: Actionable

●   R: Realistic

●   T: Time-bound

  Each metric used to measure your business’s success should contain a logical sequence of tasks, goals, and milestones, and should take into account your possession of the right resources and relationships to carry your organization forward through periods of growth.

  With these final elements outlined, you can now incorporate all of your strategic initiatives and tactics into one final plan: your operating plan. This plan will serve as your business’s roadmap and a working document for each strategic initiative, and must also contain each actionable tactic listed as a supporting factor to those initiatives which will help you achieve your goals.

Concluding Thoughts

  There is no single business or operating plan that universally supports each winery or wine business operating today. In order to create the clearest and strongest plans possible, it is your responsibility as a business founder or owner to understand your business inside and out. Once you do, you will be better positioned to formulate and integrate a plan that serves your unique business and its goals for continued success and future growth.