Category: Winery Info

The Pandemic’s Impact on the Wine & Spirits Industry

Cyndi
man in mask looking at wine section

By: Quinton Jay

The year 2020 was a complicated one for the wine and spirits industry. According to information published in Beverage Industry, the sale of wine at retail and convenience stores grew by some 11.4% in multi-outlet stores throughout the 52 weeks between December 1st, 2019, and November 29th, 2020, and champagne, as well as other sparking wines, saw year-over-year growth by nearly 29%, topping sales at roughly $1.6 billion.

  This boost to wine sales, however, could not fully offset the losses incurred by many other businesses throughout the wine and spirits (WS) industry.

  Fortunately, the U.S. seems to have since turned a corner in the pandemic struggle, and most restaurants and other WS businesses like wineries, distilleries, and breweries (WDBs) that were able to survive the brunt of the COVID-19 pandemic’s impact are now back open and able to serve customers indoors, or at least in some form of hybrid indoor-outdoor seating arrangement. While this return to normalcy should help the WS industry experience an upswing capable of putting business back on track, some industry experts are still analyzing the true depth of impact the pandemic has had on the industry and the businesses in it, regardless of whether those businesses survived the pandemic’s fallout or not.

  One such expert is Quinton Jay, a WS industry expert, Japanese whisky otaku, and industry consultant with more than 20 years of experience in owning, building, operating, and investing in businesses–specifically those in the wine and beverage industry. We recently sat down with Quinton to learn more about the trends he saw arise within the WS industry throughout the events of last year’s pandemic, how those trends impacted the WS industry as a whole, and where he sees the industry heading over the next few years as a result.

WS Trends Resulting From COVID-19

  According to Jay, one of the most widespread trends that impacted the WS industry as a result of the pandemic was the increase in the amount of WS businesses – including WDBs – that began offering e-commerce and Omnichannel retail marketing. By offering these channels, businesses across the entire WS industry were able to continue selling products directly to consumers (D2C), saving many businesses from having to shut their doors to customers – both online and offline – for good.

  “Methods like Omnichannel retail allowed businesses in the industry to continue selling products D2C,” Jay tells us. “For many businesses, especially WDBs, this was the difference between surviving the pandemic or not.”

  Along with the growing trend of Omnichannel retail marketing, many business owners in the WS industry have experienced what Jay refers to as “business fatigue.” This feeling of fatigue is one that many business owners who experienced the pandemic can sympathize with, but for the WS industry specifically, it could mean more owners of WDBs, restaurants, eateries, or other businesses preparing for financial exits from their ventures.

  “Business fatigue is a real thing,” Jay tells us, “and rather than simply close up shop and call it a day, the better option for business owners is to sell their company to someone willing to acquire, rebrand, and revitalize it.” This trend of business fatigue, according to Jay, could hint at other ways as to how the pandemic left a lasting impact on the industry.

The Lasting Impact of COVID-19 on the WS Industry

  In describing the ways that Omnichannel retail marketing has affected the WS industry in recent years, Jay also mentions the historical lack of innovation – particularly technological innovation – within the industry. In mentioning this, it begs the question as to just how innovation, both during the pandemic and immediately following it, will evolve both for businesses and consumers.

  “Many WDBs and other businesses in this industry aren’t necessarily at the forefront of innovation, especially when it comes to growing their market share,” Jay says. However, as Jay continues to explain it, the writing is literally on the wall for the continued growth of Omnichannel retail, given the industry’s historical customer demographics, current and emerging technologies, as well as the ever-evolving nature and growing competitiveness of the WS industry’s supply chains.

  “The U.S. has been lagging behind much of the world in Omnichannel retail offerings, obtaining less than 10% of all global e-commerce sales for the WS industry compared to China’s roughly 25% share,” says Jay.

  In these matters, Jay’s predictions may not be far off from aggregated industry data. For instance, according to McKinsey’s 2021 Consumer Report, e-commerce sales in the U.S. were projected in 2019 to reach 24% of all retail sales by 2024. This projection later increased to 33% by June of 2020 after the onset of the COVID-19 pandemic, seeing larger growth in e-commerce retail across the U.S. in six months than it had over the past 10 years.

  “As we continue to emerge from the pandemic,” Jay continues, “I expect many more businesses in the WS industry – especially WDBs – will begin offering or broaden their offerings regarding Omnichannel retail as more American consumers opt for D2C retail channels.”

What’s Next for the WS Industry

  As a result of the COVID-19 pandemic, every global industry was forced to evolve virtually overnight. The WS industry was no different. Along with broader implementations of Omnichannel and D2C retail methods and deeper technological innovations, Jay tells us that he also expects many businesses in the industry to rethink the way they operate internally and interact with customers on all levels.

  “Overall, I think the pandemic has left many business owners in this industry feeling defeated,” Jay says. “As a result, we can expect to see an increasing number of companies in this industry become more creative in the ways they can target, reach, and sell their products to consumers, as well as become more innovative in the ways that they handle and react to crisis situations.”

  Indeed, the revitalization of crisis management detail is one vital aspect that every business that survived the pandemic will inevitably have to revisit. For the WS industry in particular, this could mean the addition or inclusion of additional D2C sales channels (similar to the inclusion of Omnichannel retail), but also the way that many establishments in the industry hire and retain talented employees.

  “The U.S. has been experiencing a hiring crisis over the last few months,” Jay adds, “and tons of restaurants, eateries, WDBs, and other businesses that survived the pandemic initially are now struggling to keep up with increased consumer demand as the threat of COVID-19 wanes. By implementing policies that promote employee safety and wellness, offering more competitive wages, and remaining adaptable enough to stay ahead of society’s ever-changing curve, the industry as a whole can prevent the detrimental effects that came as a result of last year’s pandemic from having such a deep and lasting impact in the future.”

How to Succeed in WS Post-Covid

  As Jay mentions, there are a number of precautionary methods and strategies that business owners and managers, and other industry professionals in WS can use to better protect their businesses from suffering in ways similar to how they may have during the onset of the COVID-19 pandemic.

  “The first step every business in the WS industry should take is to implement more actionable mea

sures in planning their business strategy,” Jay says. “Start by taking a look at what types and quantities of grapes you have coming in, what bulk wine you have in the tank, your total count of bottled finished goods, and become intimately familiar with your sales run rate: if you know those 4 things, you can plan out your business very well and forecast what your business should be focusing on acquiring in order to avoid jamming up your supply chain.”

  For example, if your winery business finds that its sale run rate has slowed down, perhaps the winery needs to look at selling its bulk wine (wine in barrel or tank), or perhaps can temporarily focus on committing fewer grapes for an upcoming vintage. However, once any particular wine has been bottled, that’s it, which is why Jay says to avoid bottling your inventory until you know what your sales run rate is and how it directly impacts your business. While selling out of a certain inventory item can sometimes be a boon for your business, not selling enough can cause inventories to back up, alerting you that your business will need to discount other items and sell that portion of your inventory faster in order to get back into balance.

  A second method WS businesses should consider, according to Jay, is to revisit and revitalize their plan regarding capital management, or the funding of their business initiatives as they pertain to the needs of a business’s financing or cash flow.

  “Most business owners and professionals in the industry want their business to grow,” Jay adds, “but don’t realize how much money they need, especially regarding the lead time required for fine wines and of many products in the industry as a whole, especially aged beverage products.”

  Indeed, as Jay explains, it can often take one year for most white wines and Pinots to be made and bottled, as well as 2-3 years on average for wines like high-end cabernets. Most red wines can take anywhere between 12-30 months to properly process in-barrel and add to their in-bottle age time from Grape to Bottle. This, of course, takes cash, which is why planning your capital budget is just as important as your sales plan.

  By carefully considering these crucial factors to any business in the industry, Jay explains that they can be better positioned to survive in the face of the next inevitable threat the industry will face in the years to come.

Trends in Wine Packaging

Cyndi

Follow Consumer Awareness, Expected Use & Material Availability

beer beverage in a grocery stall

By: Gerald Dlubala

Statistics prove that a well-designed, eye-catching package can set the tone for consumers’ perception of a product’s quality and desirability. But with all the different wine packaging options available, how do you know which is the right one for your wine? Demographics and the corresponding lifestyle can heavily influence your packaging choices. By recognizing your preferred market segment, you can choose the most appropriate product packaging to enhance shelf presence and heighten your product’s perceived quality and desirability.

  Glass remains the overall preferred choice because of its ability to hold the wine’s intended sensory applications better than the alternatives, sometimes up to twice as long when compared to plastic options. In addition, glass can be molded into endless eye-catching, distinctive shapes and sizes, making it accommodating for different uses down to single-serve glass bottles, presenting a modern premium feel and look. Alternative and more innovative designs might feature Stelvin, or cork finishes on the bottle.

  Single-serve wine packaging has grown due to the pandemic and continues, including single-serve cups and goblets, plastic bottles, cartons, aluminum cans and anything else that offers convenience and transportability.

  Cork for use as a closure remains strong due to being an original and traditional choice, now enhanced by improved and more cost-effective technical corks. Aluminum screw caps and plastic dispensing closures on some current packaging present the opportunity for resealing and recycling.

  Ultimately, containers and bottles that are aesthetically appealing and fit a consumer’s lifestyle are the products that will cause them to stop, take notice and pick up the package. Consistency in using that same packaging will build consumer loyalty and recognition of your products in the future.

Using Packaging Options to Appeal to the Consumer

  Alcoholic beverages rely on packaging to maintain the integrity of the content’s chemical composition. For example, packaged wine must maintain the intended aroma, flavor and appeal. Glass keeps the chemical composition intact and has no chance of reacting with the alcohol. Additionally, colored glass adds a layer of protection against changes due to light exposure.

  “Glass goes as does the economy,” said Bradley Tucker, Vice President of Sales for Encore Glass. “When the economy gets tight, companies look to cut costs. Unfortunately, it’s common for packaging to take the hit, whether switching to lightweight bottles, choosing more cost-effective labels, or changing shipping methods. Our shippers remain popular because they are cost-effective, lightweight and stackable, made from 99% recyclable materials, and are themselves 100% recyclable and biodegradable. We also distribute custom printed boxes, decorated bottles and custom molds to meet specific customer needs.”

  Tucker said that all current packaging options have their place and purpose. Still, he believes glass will always be the preferred choice, especially when bottling premium wines. “Glass provides an extended shelf life, providing a premium touch and visual aesthetic without changing the taste, aroma or overall quality of the wine inside. We see increased use in the smaller 375 ml bottles. And the smaller, single-serve bottles are another way to appeal to customers who love wine but drink it only occasionally or want to avoid waste. Honestly, the bigger issue in packaging right now is supply. Like everything else right now, supply channels are difficult to maneuver. It’s a constant battle just trying to get the amount of glass needed, and it’s not going to get better anytime soon. Again, it’s a global issue. Orders that used to be ready in three weeks might now take six to nine months, so some winemakers are just going with what they can obtain.”

  When asked if the glass shortage may be driving some producers to choose aluminum packaging, Tucker told The Grapevine Magazine that it might be accurate, but aluminum distributors are going through the same supply difficulties as everyone else.

  “The most important thing to do is choose a packaging supplier that also can provide a type of supply insurance. Encore Glass fulfills your order by offering great selections of glass bottles, expert preparation, and a commitment to get your bottles to you when you need them.”

Aluminum Brings Versatility into Focus

  Like glass, aluminum is a solid and cost-effective choice for overall packaging effectiveness and performance, but similar difficulty in sourcing can be an issue. Aluminum offers convenience, recyclability, maximum portability and, in some cases, the ability to be resealed. Canned wines gained popularity and broader acceptance during the pandemic and continue to be favored by following the successful methods pioneered by canned cocktails and seltzers. Aluminum is easy to handle and customize with uniquely designed sleeves for shelf appeal and is perfect for occasions where glass containers are not allowed or practical. In addition, aluminum packaging is much lighter to ship and can ultimately help cut price points on wine.

Polyethylene Terephthalate and Plastic Find a Niche

  The pandemic brought on the idea that consumers would more frequently look to purchase and drink wine at home. To support this, wine companies looked to offer minimal contact accessibility, and plastic provided a solution.

  Garcon Wines acted on that new dynamic, finding that traditional bottles used in the wine industry no longer fit the dynamics of how and why most wine is purchased and consumed. With the growing belief that the existing carbon footprint of wine is unsustainable, they developed a 100% recyclable, 750 ml, flat Polyethylene Terephthalate wine bottle. It is designed to fit through mail slots and is manufactured from 100% food-grade, post-consumer recycled PET, saving energy and weight.

  When compared to the traditional glass bottles, they are 87% lighter and 40% smaller spatially. The flat bottles are a little taller than standard bottles and are stackable to save space. The taller profile helps them stand out and be a little more noticeable on a retail shelf. They pack tightly into shipping cartons without additional packaging, better utilizing the space on a standard pallet. Fewer deliveries are needed, and with more efficient loading and unloading times, the savings add up.

  However, under 30% of PET containers are recycled in the United States, so good intentions aren’t producing the proposed results. In 2023, Bacardi will begin using novel plastic for their containers that use seed oil rather than crude oil. The biopolymer bottles are made by fermenting canola and other seed oils that biodegrade within 18 months in any environment containing microorganisms, including compost bins and fresh or saltwater.

Alternative, Sustainable and Eco-conscious are Trending

  Packaging trends are moving towards more eco-friendly and sustainable options, thanks to shifting consumer ideology. Winemakers have found that the key to storing their wines in alternative containers is providing a tight seal. Among these options, boxed wines have been the most popular and recognizable, opening up new possibilities of how and where wine is consumed. Although it’s still a small segment compared to other packaging choices, bag-in-box wines are attractive to those who shop less and want to enjoy an occasional glass of wine at home without worrying about spoilage and waste. The inner pouch removes the need for glass, and the box shape makes them easy to store, transport and use without the chance of breakage. Additionally, they can offer a better price point, modern look and shelf appeal to consumers looking for more thoughtful, eco-friendly and sustainable options.

  With the pandemic driving consumers to drink differently and more often, boxed wine allows them that opportunity, staying fresh for six weeks after breaking the seal. Consumers continue to value convenient and lifestyle-friendly products—boxed wine answers that demand with a 2.25-liter box that perfectly fits a refrigerator shelf, saving space and offering on-demand accessibility.

Bag-in-a-bottle: a Paper Bottle

  Bag-in-a-bottle is an option for consumers who want all of those eco-friendly benefits but still yearn for the traditional bottle. Like the bag-in-box, the outer container is recyclable paperboard fused with water-based glue and molded with heat and moisture into a more conventional wine bottle shape. It is five times lighter than glass and is resistant to spillage, humidity and breakage, with a 12-month shelf life. Proponents believe a time will come where the paper bottle molding unit would be available for use on-site or near the winery for on-demand bottling. Five times more paperboard blanks than rigid bottles can ship at once wherever needed to be assembled and filled.

Return and Reuse: the Good Old Days

  Because only a little over 30% of glass wine bottles get recycled in the U.S., some distributors want to revisit the bottle deposit and return practice for use with wine bottles. The idea is that each glass wine bottle could be reused up to 10 times, allowing the consumer to experience the traditional and romantic experience of wine in a glass bottle while being eco-conscious. In addition, this practice hopes to appeal to those that still want to please those guests that are not comfortable with bag-in-box or canned wines. This business model would issue digital credits to distributors for returned bottles and help the winemaker build loyalty, communication and marketing contacts with participating distributors. The plan is to have the returnable program in thousands of venues, natural wine shops and participating big box stores in 2022, as a three-month pilot program in New York saw an 88% success rate.

  “Encore Glass started their business by sterilizing and recycling glass wine bottles to have an encore use, but with all of the current bottle shapes, sizes and custom structures, it would be nearly impossible to continue on a broad scale,” said Tucker. “I would have doubts about the feasibility of the program, including the willingness of consumers to continue long-term participation.”

Match Packaging to Consumer Awareness

  Creative packaging has always been one of the best and most effective ways to help a brand get noticed in a crowded market. But consumer awareness of a winemaker’s story combined with convenient options in packaging has never been more vital. Over half of consumers are committed to buying from sustainable brands when possible, and they are searching for more responsible behavior from the vineyard through the retail channels. Matching these behaviors with responsible packaging will help winemakers successfully differentiate their products and fuel their brand’s growth in today’s market.

Pruning Phases, Tools & Techniques for Vineyards

Cyndi
man cutting a stem

By: Alyssa L. Ochs

Around this time of the year, addressing the topic of pruning is essential for vineyards. Now that harvest is over, grapevines enter into a winter dormancy phase, losing the rest of their leaves and exposing only bare cane shoots in the canopies. Now is the crucial time to refresh your memory about the different pruning phases to get the timing right and learn about the best tools and training strategies to implement for safety and efficiency.

Basics of Pruning

  Pruning is an essential part of managing a vineyard to remove foliage, fruit and branches. However, the pruning method used can affect how future grapes grow and their quality at harvest.

Pruning is an opportunity to control vine damage and disease early on and ensure that grapes have enough air circulation to prevent mildew and rot. Pruning maintains the consistency, predictability and structure of a vineyard while keeping it organized and looking clean. The ultimate goal is to maximize the one-year wood on each grapevine without letting the plant make more grapes than it can support.

Phases of Pruning

  Pruning is described as both a science and an art because of the intricacies involved in the process. Removing vine branches that are a couple of years old, known as canes, comes first. It is typical to cut the cane back to 12 to 15 inches from the trunk in this first phase. Then, remove the spurs, which are the young branches about a year old. The second phase is done later to leave only shoots that will produce fruit.

  For winter protection, remove all old-growth except for new fruiting canes and renewal spurs that will supply fruit canes for the next growing season. Proper canopy management allows vineyard workers to pull leaves and control the vigor of the vines. Many vineyards use a machine pruner first to do the bulk of the cutting and then hand pruning for greater precision.

Tools for Pruning

  In general, the tools necessary for pruning are fairly straightforward. Vineyard workers use hand shears, lopping shears, saws, gloves, and ribbons or colored cloth strips to identify renewal spurs and fruiting canes.

  Innovative companies have developed specialized products for pruning that seem simple at first glance but are very technologically advanced. One example is Infaco-USA’s F3015 electric pruning shear. Infaco-USA is based in Livermore, California and produces tools used in vineyards and orchards in at least 35 countries. Infaco’s president, Daniel Delmas, is credited with inventing the world’s first electric pruning shears.

  “Our F3015 electric pruning shear came out a few years ago, but it remains the most technologically advanced shear in the world, in part because it works with our patented safety system,” Ananda Van Hoorn, operations manager for Infaco-USA, told The Grapevine Magazine. “No other shear has anything that comes close to it, as this system prevents users from accidentally cutting themselves or lopping off a finger. In vineyard pruning, this is particularly important since mistakes happen when workers are fatigued and in crews try to go as fast as they can, especially if they’re paid piece-rate, and they often work long hours.”

  Meanwhile, Zenport Industries is another company that has developed several tools, accessories and technologies for the vineyard. Based in Sherwood, Oregon, Zenport has introduced battery-powered pruning shears and, more recently, a new “cordless” version of this product. In general, Zenport manufactures specialty horticulture tools and supplies for the agriculture, landscape, irrigation and lawn and garden markets.

  “The reason why we say ‘cordless’ is because unlike previous generations of battery-powered pruners, there is no external battery pack or electronics, as everything is encapsulated inside the tool,” Daryl Shatto, who handles marketing for Zenport, told The Grapevine Magazine.

  Shatto said that the interchangeable battery packs offer three to four hours of pruning runtime per battery charge.

  “The Zenport EP26 cuts one-inch and comes with two batteries and a charging cradle,” he said. “The Zenport EP27 cuts 1.25-inches and comes with three batteries and a charging adapter that will charge three batteries at once. The batteries charge faster than the pruner runtime, so the user will never run out of juice!”

  Zenport offers spare batteries and blades and all parts for the cordless pruners, such as housing, motors, gears, and electronics. The new Zenport EP26 and EP27 have features not found on the original cordless pruners, including progressive cut mode, an adaptive cut option, simple “hair-trigger” mode and a digital LCD readout.

Training for Pruning

  A topic that deserves extra attention is training staff on safe and effective pruning techniques. The most common pruning injuries are strained shoulders, sore back muscles and hand lacerations. Some vineyard operators train staff using the four-arm Kniffen method, which utilizes two horizontal wires to support the vine. This method features a bottom wire that is three feet high and a top wire that is five feet high and is used for grapes that do not require winter protection.

  Vineyard workers should also be trained on sterilizing equipment after each vine using an isopropyl alcohol solution. Part of the training process should cover removing diseased wood with lesion or sap by either burning it or discarding it according to municipality requirements.

  Regarding training, Van Hoorn said Infaco-USA’s hand-held tools are designed to be intuitive and come with user guides in both English and Spanish.

“Our pruning shear, patented safety system, electric tying machine and vineyard desuckerer can be mastered in minutes,” Van Hoorn said. “When in doubt, our YouTube channel features how-to videos, we offer on-site training for crews, and we have also conducted live video training online for customers in remote areas.”

  “Vineyard managers can train their employees to use our products in the safest and most effective way by first educating themselves on the safety, operation, maintenance and proper use of Zenport tools,” said Shatto. “Zenport offers an easy-to-read manual and maintenance instructions, including over the phone support to help the vineyard manager with not only technical and service support issues, but also operational and safety concerns.”

Pruning Considerations and Tips

  One of the most significant decisions to make is whether to machine-prune, hand-prune or do a combination of both. Hand-pruning is labor-intensive, especially for large vineyards. Pruning machines can keep workers safe if they are trained properly; however, this is a costlier approach to vineyard maintenance, especially for newer vineyards and vineyards struggling to make ends meet. Therefore, it often comes down to weighing the pros and cons of short-term investments versus long-term cost and labor savings. Yet, common-sense rules still apply, such as having workers take breaks, stay hydrated and work in teams.

  Van Hoorn said vineyards should consider mechanization because it is easier than they might think. She said small, hand-held electric pruning shears can increase vineyard productivity by 30% on average and that it only takes a few minutes to mechanize an entire crew.

  “Pruning is the number one labor expense for most vineyards, and minimum wage in many parts of the U.S. is going up,” Van Hoorn said. “Many of our clients are experiencing 14% increases in prices that they pay labor crews and contractors each year, so an investment in mechanization now will have huge payoffs!”

  Aside from productivity, Van Hoorn said other benefits of mechanization include better crew retention rates, fewer repetitive motion injuries and better cuts that improve consistency and the quality of the grapes while reducing the risk of disease.

  Shatto from Zenport said that a vineyard can decide its best pruning strategy by evaluating each pruning job and the available resources. It is Zenport’s position that using a battery-powered pruner doesn’t mean you stop hand pruning. However, the tools offered at Zenport can make a big difference if labor is an issue.

  “Zenport battery-powered pruners have excellent endurance,” Shatto said. “A sharp blade and charged battery will keep the user pruning all day long! A person who is healthy and very experienced with pruning can prune very fast. As a day of hand-pruning progresses, even the fastest of the fast will start to slow down, while the person with the battery-powered pruner will stay consistent all day long. You can count on the consistent performance.”

  Shatto also said it is wishful thinking to expect a full crew of young, fast and experienced workers to never get tired and always be available.

  “With the battery-powered pruner, a vineyard can utilize a much larger labor pool, including people who know what they are doing, but their arms or wrists just can’t take rigorous hand-pruning any longer,” he said. “There are a lot of folks who miss being out in the vineyard but who just can’t do the work because of the pain.”

Dutcher Crossing: An Idyllic Slice of Heaven

Cyndi
winery in front of a wine trail

By: Nan McCreary

Every now and then, when traveling the wine trail, one comes across a true hidden gem, one of those wineries that have it all: beautiful wine country views, award-winning wines and warm hospitality that beckon the visitor to return again and again.

  One such destination is Dutcher Crossing, a charming winery that sits in the picturesque hills of Dry Creek Valley at the crossing of two creeks, Dry Creek and Dutcher Creek, in Sonoma County. Sitting in their classic 1900s style farmhouse tasting room, one feels transported to another world, where fellow wine lovers—and dog lovers—gather to enjoy the views, the wines and the camaraderie, not to mention the attention of the staff’s dogs who “officially” greet visitors.

  This little piece of wine heaven belongs to Debra Mathy, who purchased the property in 2007. At the time, the operation included 35 acres and made five wines. Today, under Mathy’s leadership and creative vision, Dutcher Crossing offers 30 wines from various premier vineyards in Sonoma, Napa and Mendocino counties and owns 75 acres of estate-designated vineyards. Production averages 12,000 cases per year.

  Mathy’s story is as revealing of her character as her winery. Growing up in Wisconsin, she knew she did not want to follow in her family’s footsteps in the construction and timber industries. Instead, she sealed her destiny with a high school trip to France. “To be honest, the only reason I studied French was so I could go to France,” Mathy told The Grapevine Magazine. “While I was there, I fell in love with wine. Until then, I knew nothing about it. I’d never seen vineyards, and I’d never seen people drinking wines.  It had never occurred to me that people could make a living in that field. It was an ‘a-ha’ moment. I came home, and I told my dad I wanted to get into the wine industry.”

  She put that dream on hold while pursuing an education, but years later, when her dad was facing stage IV cancer, he encouraged her to revisit her goals. “He said, ‘life’s too short,’ and if I still wanted to open a winery, we could do it together in the time he had left.” 

  So, the journey began and, with the help of consultants, Mathy discovered Dutcher Crossing.  The winery wasn’t for sale, but she recognized it as a perfect fit.  “I liked the sense of family and the quality of the wines,” she said.  “The winery had a nice foundation—it wasn’t showy—and it would give me a good base to build on, wherever I decided to go. The confluence on Dry Creek and Dutcher Creek gave the winery a sense of place too, which was really important to me.” 

While the owners had bought the winery with plans to sell eventually, Mathy convinced them that they should sell now and that she was the right person to buy it. “They didn’t want to sell to the corporate world,” she said. “They wanted it to be in great hands and ended up turning it over earlier than planned.”

  New to the industry—this kid from Wisconsin who had transplanted herself to California—Mathy faced the challenges of not only being an outsider but of being the first single female winery owner in Sonoma County. “I had to prove that I was serious about this, that it was not just a hobby,” Mathy said. “I got active in the community, developed relationships and learned everything I could from others. I also surrounded myself with great people. I come from a family where we know that it takes a lot to succeed, but if you have good people around you, your chances of success are much better. On the path upward, we win as a team, and we lose as a team. It’s been a nice journey.”

  At the beginning of this journey, Mathy retained the winemaker and staff from the previous owner and hired winemaker Nick Briggs to take over the reins eventually. “We wanted to diversify and make great wine, so, in addition to growing our own fruit, we searched for the best grapes we could find to expand our portfolio,” Mathy said. “Fortunately, we were able to find premium winemakers who would give us a shot, but we had to prove ourselves first.” 

  And prove herself she has. Today, Mathy is recognized as a pillar in the community, offers a stunning array of award-winning wines and has established a loyal wine club, selling out of her wines every year. She said, “Our path has been to create a well-balanced, three-legged stool: making the best wine by staying true to the vineyard, vintage and varietal; preserving a beautiful sense of place in our vineyards and winery; and offering a level of hospitality that allows visitors to feel like they are part of our family. Not everyone has that balance in their business. We’re fortunate that all who work with us buy into this philosophy and take pride in it.”

  Under Mathy’s careful guidance—and that of winemaker Briggs—Dutcher Crossing farms premium fruit from four vineyards on 75 acres. Grape varieties include Chardonnay, Semillon, Roussanne, Viognier, Riesling, Grenache, Mourvedre Syrah, Cinsault, Petit Syrah, Zinfandel, Cabernet Sauvignon, Cabernet Franc, Malbec and Muscat. The winery doesn’t use all the grapes for its own production but sells some of its fruit to other wineries. With fires, droughts and other whims of Mother Nature, farming is always a challenge, according to Briggs, who oversees the viticulture program.

  “Farming is dynamic—it’s different every year,” he said. “You have to have experience and pay attention to what’s going on, whether that involves taking petiole samples to check for nutrients, watching how the vines are growing or, once there’s fruit, making judgments about the balance of the crop.”

  Dutcher Crossing farms sustainably to ensure that the land will stay healthy for years to come.  “It’s important to us to preserve the land for the next generations,” Briggs said. “We know that vineyards can be successful for hundreds of years, as long as you apply sustainable principles of integrated pest management, nourishing soils and healthy vines.”

  In the winery, Briggs is a big advocate of blending. “We don’t always take the fast and easy approach in fermentation. Rather, we make small batches and see how they come out, then blend them later. Blending is the most artistic part of winemaking. To find the perfect wine, you just keep blending and blending until you end up where you want to be.” 

  With minimal intervention, Briggs strives to coax as much out of the fruit as he can. His goal is well-balanced wines with aromatics, fruit flavors and acidity that all carry forward to a lasting finish. “We take great pride in producing drinkable wines on release,” he told The Grapevine Magazine. “When we offer tastings, our visitors enjoy all of our wines, not just one or two.  That’s quite an accomplishment.”

  When not in the winery, the vineyards or greeting customers in the tasting room, Mathy and her staff are active members of the community. Mathy, for example, has been involved with the Boys and Girls Club for a dozen years and has served on boards that help various children’s causes. The winery also donates proceeds to melanoma cancer research in honor of Mathy’s late father. During the recent fires, Mathy’s staff of 20-plus people took it upon themselves to cook for firefighters and help find homes for displaced people.

  “When people ask me what the greatest thing is about being a winery owner, I tell them it’s watching my staff grow and mature to become better professionals and better leaders,” she said. This is where the excitement is for me right now.” 

Mathy has established a dynamic where all of the staff members consider themselves part of a family. “When the fires break out, we call each other first and say, ‘Hey, I need help,’ and no one says ‘I can’t.’ It’s always ‘Come, we’ll figure it out.’”

Unfortunately, Dutcher Crossing lost 98% of its crop to smoke taint in last year’s fires. “It was awful,”

  Mathy said.  “But when I look back, I see that the community grew together, and the relationships we had built also grew. And it could have been worse. If the firefighters had not done their job, it would have been catastrophic.”

  As Dutcher Crossing looks to the future, the team is considering options for diversifying by creating more wine brands or finding opportunities for grape-growing in Oregon and Washington State. But what’s primarily on everyone’s mind are the unknowns: those that come with fires, smoke damage and climate change. One challenge Mathy and Briggs face, for example, is how to balance cover crops that provide nutrients to the soil but also add fuel to the fires. “We may have to make strategic changes in the vineyards,” she said, “and will face some hard choices in the next five or six years. But primarily, we want to be good stewards of the land so that when we leave, the property will be better than it was when we found it.”

  Whatever direction Mathy and her team decide to go, you can be sure that the winery will remain a favorite go-to destination as long as she is in the picture. “It’s a beautiful, old farmhouse, and it’s very quaint in the way it’s oriented,” Mathy said. “When you walk through the breezeway, you see the beautiful hills of Dry Creek Valley. It’s so cozy, so comfortable, that you just leave your worries behind.”

  If that view isn’t enough, when the tasting room is open, you can relax by the stone fireplace, constructed of old railroad pieces, and admire the 1892 penny-farthing bicycle that sits nearby.  The bicycle is the last Christmas gift Mathy received from her late father. It also features on the Dutcher Crossing wine labels as a tribute to their wine journey together, a journey that made a dream come true for a young girl from Wisconsin.

For more information on Dutcher Crossing, visit www.dutchercrossingwinery.com

Nitrogen Use in Wineries: Targeting Oxidation Before it Starts Help Experts Keep Oxidation in Check

Cyndi
poured wine smoking

By: Cheryl Gray

The air we breathe is home to a free, abundant and primary weapon that wineries use to combat the ever-present threat of oxidation.

  That weapon is nitrogen, which makes up about 80% of the Earth’s atmosphere. Winemakers harness the benefits of this colorless, odorless, inert gas to prolong the shelf life of their products by guarding them during production and storage.  In short, nitrogen protects what is most important to winemakers—the wine’s taste, aroma, and quality.

Vacuum Barrier Corporation

  The question of how nitrogen functions best in any winery is answered by companies that are experts in the field. Among them is Vacuum Barrier Corporation, a cryogenics industry leader based in Woburn, Massachusetts. VBC designs, engineers and fabricates liquid nitrogen dosing and piping systems for wineries, breweries and other industries across the globe.

  The company has a 60-year history of providing its clients with custom-built and standard solutions for liquid nitrogen. Wineries use VBC’s signature Nitrodose injection systems in multiple applications. Its piping systems include the stainless Semiflex, Nitromatic dewar fill and Cobraflex. CobraFlex is a liquid nitrogen hose made of stainless steel, deriving its name in part from its extremely flexible outer wrap. A clean-in-place feature is available for all piping options, as are sensor control separators and modulating valve phase separators.  

  Jim Fallon is an Application Engineer for VBC. He explains that liquid nitrogen use in wineries is versatile and provides many solutions in real-time, helping to delay or eliminate oxygen contamination before it can start. 

  “The main advantage of nitrogen is that it’s inert and won’t easily react with other substances. This means it can be used to reduce or delay the oxidation of the product. It essentially replaces a significant amount of the oxygen found in ‘air’ at different stages of the manufacturing and packaging process.”

  VBC works specifically with liquid nitrogen to deploy it for common uses such as purging wine bottles before filling and removing oxygen in the headspace before capping. Fallon describes how liquid nitrogen is key in this process, known in the wine industry as flushing. 

  “Flushing can be an important step in maintaining the freshness of any organic material,” he says. “Removing oxygen from a storage container or bottle will help to extend the shelf life of the product. Liquid nitrogen expands to 700 times its volume as it evolves into a gas. That rapidly expanding gas drives air out of the container.”

  Another use for nitrogen in wineries is sparging, which removes the oxygen that has dissolved in wine during various points in production. Since it is inert, nitrogen doesn’t react with the wine and, as a result, won’t alter the flavor and bouquet intended by winemakers. Fallon points to argon as another inert gas that wineries use for sparging. Another option is carbon dioxide, but Fallon warns that its use presents some challenges. 

  “Carbon dioxide tends to be more reactive and tends to alter the profile of the wine, which may or may not be desired,” he says.

  Fallon adds that nitrogen is also typically used in blanketing, which functions just like it sounds. Nitrogen, or argon, covers an area or container to help protect the wine by keeping oxygen out.

O2 N2 Site Gas Systems

  Giving wineries the option to generate nitrogen in-house and on-demand is the expertise of O2 N2 Site Gas Systems. In business since 1987, the Connecticut-based company provides a range of generator options, including Membrane Nitrogen Generators and Pressure Swing Adsorption Nitrogen Generators. The company says that adsorption is the physical separation of molecules, not a chemical one. 

  The PSA generators produced by O2 N2 Site Gas Systems separate nitrogen from oxygen in the air. A PSA generator system performs this task using a pressurized vessel containing either carbon or zeolite. Nitrogen is trapped while oxygen is safely released back into the atmosphere. According to the company, this method provides 99.9995% of nitrogen. Other cost-saving features include an automatic standby mode when no gas is needed. The generator will also continuously check the pressure to make certain that the gas generated matches nitrogen demand.

  The company’s membrane technology also uses pressurized air. That air is forced through membranes that act like filters with tiny holes small enough to allow oxygen molecules to pass through, leaving the nitrogen molecules behind. The process continually generates nitrogen at the desired flow and purity levels.

Chart Industries

  Chart Industries is a global manufacturer offering a wide range of products for multiple nitrogen applications in wineries. The company produces equipment engineered to provide technologically advanced solutions in virtually all areas of industrial gas applications. Its portfolio of products includes not only engineering but also service and repair. 

  Located in New Prague, Minnesota, the company has a 160-year history of being at the forefront of technological advances. In 2021, it acquired Cryo Technologies, a leading manufacturer of cryogenic systems that Chart Industries has worked with for more than 20 years. The acquisition brings a team of highly skilled, richly experienced engineers and designers with a deep knowledge of cryogenic system design. 

  Chart Industries manufactures liquid nitrogen dosing systems for several industries, but its primary focus for wineries is using nitrogen for cleaning equipment and product storage. Richard Rosik, Sales Manager for Chart Industries, describes how the company’s products integrate well into wine production, including applications for storage, bottling and cleaning production lines.  

  “The cleaning of the equipment is very important to ensure a sterile environment as well as line changes from product to product. The Chart Nitrogen Doser is designed for use in these types of environments. Our liquid nitrogen dosers are specifically used to displace oxygen in the headspace by allowing the liquid to vaporize inside the bottle, pushing out the oxygen and other impurities.”

  Chart Industries also provides wineries with bulk storage options that preserve wine by protecting it from oxidation through the sparging process. Rosik says the equipment is ideal for these functions. 

  “Because of Chart’s diversified portfolio, although our nitrogen dosers aren’t specifically used in the sparging process, our Storage and Vaporization equipment is. Our liquid cylinders, MicroBulk and bulk tank offerings are ideal for these applications.”

  The company’s bulk tank products range in size from 1,500 to 264,000 gallons and can accommodate maximum allowable working pressures ranging between 175 and 500 PSIG. The tanks come in horizontal and vertical configurations and feature a stainless-steel inner vessel and a carbon steel outer shell with an integrated support and lifting system for easy transport and installation. The insulation system of the tanks promotes high thermal performance, long hold times, minimal life-cycle costs and reduced weight to cut operational and installation costs.  

  For smaller operations, Chart offers the Perma-Cyl MicroBulk System. This system is designed for small and medium wineries to benefit from onsite gas delivery of liquid nitrogen, with tank sizes ranging from 61 to 1,840-gallon capacities. Its primary function is to cut the cost of time and money lost in the cycle of exchanging cylinders. Things like loss, damage, keeping track of cylinder inventory, even losing the use of residual gas left in the cylinder are costs that are difficult, if not impossible, to recoup. 

  For more complex operations, O2 N2 Gas Systems provides clients with custom-engineered nitrogen generation systems. The company develops with a cost-savings approach in mind for wineries and other industries that want onsite, on-demand nitrogen generation. It offers all facets of systems design technology, assessing individual client needs for the short and long term.  

  Whether liquid nitrogen or nitrogen generated from the air, experts say this inert gas is by far the most popular choice for wineries guarding themselves against oxidation. While there are other inert gases to use, such as argon and even carbon dioxide, wineries use nitrogen because of cost, accessibility and the kind of wine they produce. 

Sweet Vines of Tennessee

Cyndi
barn in front of the Smoky Mountains
A barn at Tsali Notch Vineyards in front of the Smoky Mountains in Madisonville, Tennessee.

By: Hanifa Sekandi

When most people think about Tennessee, they think about whiskey. There is no disagreement that people are talking about the best bourbon in town or the best whiskey they ever had. The dispute of who makes it better can last hours. But what about wine? Does viticulture have a place among the crown spirit of the south and the best whiskey? It seems it does, and it is just as good as your taste buds can imagine. There is more to southern wine than strawberry wine, and for North American wine enthusiasts supporting local and imbibing in something homegrown is a palate-pleasing dalliance.

Viticulture in the South

  In comparison to other wine regions across the world, winemaking in Tennessee is in its infancy.    The lineage does not run deep and is not riddled with the same political turmoil and unpredictable weather fluctuations that one would find in South Africa or Germany. There is no sad story to tell. Perhaps a few good stories about hidden wine that bootleggers used to sell during Prohibi-tion. Wine, just like the music in this state, is the birth of something new. It becomes something you never stop hearing about when done right and given a little patience.

  Tennessee winemaking is a new, lucrative frontier, thanks to settlers from Europe who migrated to the region in the mid 19th century and brought their winemaking skills. During this time, it was a burgeoning wine industry with only approximately 1,128 acres of grapes planted, but it proved to be quite lucrative. A yield of over 64,000 gallons of wine was valued at $90,000. If you consider currency during this period, a golden price tag and limited supply marked these Tennessee wines a rare Southern find.

  Although a promising beginning saw wines made in this Southern region as a possible competitor of those produced in California, this potential Napa Valley of the south experienced slow growth due to the impediment of the 18th Amendment to the U.S. Constitution, establishing total alcohol prohibition throughout the nation. Even when Prohibition ended 13 years later with the 21st Amendment, a hold on wine production in the region lasted more than 50 years. This hold meant that Tennessee winemakers who entered an already booming wine industry were decades away from gaining recognition among wine connoisseurs.

  With the changing times of the 1970s, when archaic production laws were finally put to bed, wine cultivation in Tennessee experienced its freedom and led to the slowly growing industry now seen today. The West Tennessee Experiment Station, the Plateau Experiment Station and Middle Tennessee Station spearheaded research on grapes and how to best cultivate them in the region. This endeavor in the mid-1970s opened the door for establishing vineyards and creating signature Tennessee wine blends. By the end of that decade, Tennessee had 125 acres of planted grapes.

Easing Into Ripe Times

  It has been a slow start for Tennessee winemakers, simply because it was not until 1980 that grape cultivation licensing to produce wine for sale was available in the state. Forty years in an industry with a long, diverse lineage allows Southern winemakers to see what has been done be-fore, make it better and add their own flair to stand out amongst the best. With that said, it also puts them a step behind since making a name for their brand and enticing local and international acclaim is not easy, as winemakers around the world know. For a wine to truly become a mem-ber of the elite, it must be something special.

  What winemakers have done for centuries is work with what they have. Whether it be the scarci-ty of materials or challenging terrains, they made it work. Even with small but mighty vineyards, the Tennessean winemaker’s hard work is apparent. Wineries span the state from east to west, and to date, there are approximately 40 wineries. The wine produced here ranges from a smooth Merlot, rich flavored Cabernet Sauvignon and refreshing Chardonnay to popular signature homegrown blends Muscadine, Traminette, Catawba and Chambourcin. Muscadine is a well-known wine made from the oldest grapevine planted in the U.S., and its grapes are also used to make jams and jelly.

Tennessee Wineries  — a Southern Blend

Highland Manor Winery

  If you are going to Tennessee to experience Southern-made wine, you must start at the first li-censed winery in this wine region, Highland Manor Winery, near Jamestown. The array of wine produced at this winery is due to the variation in microclimates and nutrient-dense soils that al-low vines to grow with ease. It is family-owned by Rhonda and Frederick Moody, who acquired it from Frederick’s aunt and uncle Gertie and Butch Campbell, who devoted a fortuitous 17 years to this historic vineyard.

  For a mid sized winery that has only been running for 40 years, there is a vast selection of wines to enjoy. Their best seller, Muscadine, is made from the white Muscadine grape grown through-out Southern vineyards. Another unique sweet blend is the Cab Berry, a beautiful marriage of red wine and blackberry wine. It is also worth mentioning the combination of flavor profiles found in each signature wine. For example, the Southern Blush, a dessert wine, is delicately infused with peach. The wines produced at this winery imbue a relaxed sophistication that complements the easy going Southern sensibility.

Grinders Switch Winery

  Sometimes a hobby can become more than you could have imagined. Grinders Switch owners Gail and Joey Chesser describe their decade long success at their 7 acre vineyard as “a hobby out of control.” The winery is located in Hickman County in middle Tennessee, a quaint and serene countryside. The winery holds up to 15,000 gallons of wine. If you cannot make it out to the country, the Chesser’s opened up a location in Marathon Village amongst all the live music in downtown Nashville. Here you can enjoy wine in between a few live shows while exploring this vibrant city.

  Aged for three years in an oak barrel, their 2015 Sintra, a silky sweet ruby wine with notes of smokey caramel, will have you singing high notes. The 2020 Vidal Blanc is a citrusy dry white wine with notes of tangerine and grapefruit. It is an excellent accompaniment for fresh caught grilled fish. Grinder’s Switch also makes a Muscadine called General I.

Arrington Vineyards

  If you are looking for the Napa Valley experience with a sophisticated yet laidback Southern flair, make your way to Arrington Vineyards, a winery with expertly crafted, award-winning wines. This middle Tennessee winery, owned by country music icon Kix Brooks, entrepreneur John Russell and pro-vintner Kip Summer, opened in the summer of 2007. The winery merges two different properties: a 25 acre hog farm bought by Summer and adjoining vineyards purchased by Brooks. Russell’s addition in 2008 allowed for larger distribution via the Lipman Brothers.

  Appreciating a glass of their award winning 2004 Syrah vintage while taking in the breathtaking views and listening to music at the Music in the Vines venue sounds like the perfect way to es-cape from your worries. Add that missing spark with one of their refreshing sparkling wines, Sparkle, a light fruit-infused dry white wine with floral aromas. The 2020 Chardonnay aged with French oak provides a perfect balance for those who like a buttery vanilla oak texture and finish along with a bright and sweet burst of flavor. Lastly, if you can get your hands on a bottle of their 2020 Honeysuckle, a dessert wine that is a blend of Riesling and Gewurztraminer grapes, be sure to pair it with lemon pound cake.

The Cleaning Life of a Winemaker

Cyndi
woman inspecting tanks

By: Tom Payette, Winemaking Consultant 

The positive response from the previous article on Cross-contamination has lead to this article as enforcement to the end goal of the possible elimination of cross-contamination.  If that article was not on your reading list over the past few months it may be worth reviewing to help understand why sanitation is extremely important.   

  Winemakers often say winemaking is 95 percent cleaning.  In successful wineries this is very nearly true. 

  This article will broadly cover the cleaning and sanitation principals that a winery should understand in order to keep the winery facility shiny, new looking and microbe free.  Do recall as well that pathogens will not grow in wine so all we are doing is fighting off microbes that may affect the quality, aromas and flavor(s) of your wine. 

  The first principal to understand is that water is the major cleaning agent one has. The second principal is one must have physical cleanliness before attempting to sanitize or sterilize.   

  This article will go into detail about how water works, the ways to have physical cleanliness, and how to understand sanitation versus sterilization. 

Water (non-chlorinated) 

  Water (non-chlorinated) can be used to physically clean an area.  This can be done by using high-pressure water to remove deposits from the surfaces to be cleaned.  The other property of water is that it dilutes and dissolves particles.  Water has a low surface tension that makes it physically wrap around particles and carry those particles away from the surface to be cleaned.  Water is also used to form steam to sterilize surfaces.  As one can conclude – water is a major component and essential for proper microbe management! 

  The water quality must be proper.  If the water contains many minerals or it has properties that do not allow the job to be done correctly – it may not work well and may even damage some of the winery equipment.  We often add things to water to help it work better.   

  One example of this is soda ash.  Adding soda ash (sodium carbonate) will raise the pH of the water and further lower the surface tension of the water helping it to perform its cleaning function.  Always remember that when using a high ph cleanser with water to follow that action with a low pH rinse water.  A common winery low pH solution for this application is a citric acid and water solution. 

  Equipment such as steamers may be damaged by high mineral loads in the water.  As the steamer does the job of creating steam it will boil off pure water leaving behind the minerals.  Over time and extended use, these minerals begin to build up causing the steamer to become inefficient.   

  It is for this reason the author recommends the use of distilled water in winery steaming units to eliminate mineral buildup.  It is a small cost when one calculates that it takes about 3 gallons of distilled water, or less, to properly steam two 20-inch cartridge filter and a 12 spout filler.  At $0.85 per gallon it will cost a winery roughly $2.55, in distilled water costs, to achieve sterility before bottling.   

Physical Cleanliness 

  While pursuing a Food Science Degree, one will study sanitation in great depth.  From this we learn that a physically dirty surface cannot be sanitized with sanitizing agents.  To understand this, we must understand that a sanitizer reacts on the surface with whatever it comes into contact.   

  Let’s assume one has cleaned a surface but left behind some dirt that has remained on the surface.  While one may achieve a brief moment of cleanliness using a sanitizing agent, it is not properly prepared to receive a grape juice or wine product.  The sanitized microbes will slough off the surface of the viable bacteria and expose living bacteria ready to grow!  For this reason we want to remove all physical dirt before using a sanitizer.   

  It is also for this reason that stainless steel has become such a large part of our storage vessels for wineries.  Stainless steel is easily cleaned physically and it holds up to chemical cleaners.  For this reason – please clean your tanks and enjoy the beauties of stainless steel. 

Chemical Cleanliness 

  Many chemicals come to mind when we want to clean.  Be careful to select the proper chemicals.   

  Do not use soaps or detergents.  Although they are great surfactants [lowers the surface tension of water], they are very difficult to rinse from surfaces due to how they lower the surface tension of the water and often residuals remain.  These residuals can cause problems in wines and their flavors.  Below are the categories of chemicals that are largely used in the wine business in no particular order. 

Quaternary Ammonium 

  Quaternary Ammonium is used mostly to clean winery floors and walls although sometimes it is used to clean tanks, hoses and equipment.  Modern formulations have made these noncorrosive and heat stable while attacking a very broad range of microbes via disrupting their cell wall resulting in death of the microorganism. 

High pH Cleaners 

  High pH cleaners will give the water a slick feeling.  This is the action of the lowering of the surface tension making the water seem soapy.  Common examples of high ph cleaners are:  TSP (tri-sodium phosphate); soda ash (sodium carbonate); NaOH (sodium hydroxide).  High pH cleaners will also kill certain bacteria by disrupting the bacteria’s cell wall.  Once the cell wall is disrupted the bacteria may die.  As mentioned earlier, if using a high pH cleaner always rinse the same surfaces that came in contact with the high pH cleaner with a low pH cleaner.  This will prevent any of the unwanted cleaning agents from being introduced into the wine.  A common low pH rinse for this application is a solution of citric acid and water.  Be sure to rinse the citric from the same surfaces with just water after using that formulation.   

Low pH cleaner 

  A low ph cleaner will also penetrate the cell wall of some bacteria causing them to die.  This action happens at approximately a pH of 2.6.  Very few low pH cleaners are used in the wine industry except to rinse away the high pH cleaner, usually with citric acid as mentioned in the paragraph above.  Larger wineries may use a phosphoric acid solution for its low pH microbe killing power. 

Ozone 

  Ozone, a strong oxidizer, has strong killing power when used properly.  Many vintners find it helpful when using it with barrels that have had a microbial infection.  Most agree that once a barrel has a spoilage microbe inside, it is difficult to completely remove or kill the microbes beneath the surface of the wood cells.  Ozone is very effective in killing all microbes when it contacts the microbe.  Research and be very careful with Ozone use safety wise. 

Sulfur Dioxide 

  Commonly used in the wine cellar as an everyday tool, winemakers must realize this chemical does little to sterilize and is limited in its sanitizing power.  It should always be used in combination with citric acid, as a cleaning agent, since the lower ph water will increase the effectiveness of the sulfur dioxide thereby releasing more sulfur dioxide in the “free form” to be reactive.  Winemakers should continue to use this combination realizing it is just a good practice for everyday cleaning but it is gaining us very little toward true microbe killing power. 

Iodine / Chlorine 

  Both of these are strong oxidizers.  Caution is expressed when thinking of using these chemicals since they leave residuals when not handled properly.  Chlorine has been discouraged from use in wineries due to the possible link with TCA.  Iodine has been used in the past as a sanitizer. Rinsing must be performed diligently since Iodine has a strong aroma that may be detected in minute quantities in wine.  The author does not use these and does not recommend their use. 

Paracetic Acid  (PAA) 

  Paracetic acid is a strong oxidizer that breaks down into water, oxygen and acetic acid.  Its use started in the milk and beer industries and is now starting to be used in the wine industry.  Special precautions when handling this strong oxidizer are recommended.  For those wanting to explore this option, contact a chemical-cleaning representative for applications to the wine industry. 

Hot Water 

  Hot water is a great tool for many applications of cleaning in the winery.  An ample hot water supply is great for cleaning crush equipment, filters and tanks.  One area where hot water may cause some problems is with pumps and hoses.  It can be very hard on them and cause accelerated deterioration of the impellers in the pumps and discoloration and malformation of hoses.   

Steam 

  Steam is an excellent sterilization tool prior to bottling but one must be very careful with its use.  Steam is very effective in killing all microbes even below the surface of a possible colony buildup on equipment as discussed above. 

Alcohol 

  Alcohol is a great cleaning/sterilizing agent that will kill microbes that it contacts.  Most people purchase Everclear™ and use it directly from the container or with a spray bottle.  Research has shown that 100% Everclear™ may actually embalm a bacteria or yeast allowing it to become active later when it is a proper media for growth and regeneration.  When using alcohol, blend the Everclear™ with 30% water to make the application more lethal to a larger spectrum of microbes. 

Sanitation versus Sterilization 

  Sanitation is a cleaning operation with a bacteria killing agent that will reduce the microbial population but it may not eliminate the complete bacterial load. This reduction may be enough for product stability at certain points of the production.   Sterilization is the complete “kill” of all microbes and it is recommended for the bottling equipment, at bottling, to insure the product will remain bacterially stable.  

Summary 

  With proper use of water, high ph cleaners, low ph cleaners, sulfur dioxide, 70% ethanol, steam and a medium grade oxidizer, the author believes great wines can be made, bottled and stored soundly if unsanitary conditions are not allowed to get ahead of the winemaker and the cellar staff.  If a certain microbe or microbes are allowed to become established, the winemaker may need to review other more pronounced sanitation measures for several years to come.  After several years it is possible to have the winery back to a state where one can go back to the normal sanitation measures.  The simple message here:  Don’t let your winery get dirty.  An ounce of prevention is worth a pound of cure or a little time now will save you a lot of time later.  Keep up with your sanitation – it is worth it! 

The Role of Cover Crops in the Vineyard

Cyndi
crops in a vineyard

By: Becky Garrison   

The United States Department of Agriculture defines a cover crop as “a crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement.” The USDA National Resources Conservation Service website offers this concise explanation of the multiple benefits of implementing a cropping system. “They can prevent soil and wind erosion, improve soil’s physical and biological properties, supply nutrients, suppress weeds, improve the availability of soil water and break pest cycles along with various other benefits. The species of cover crop selected along with its management determines the benefits and returns.” 

  While many vineyards have been utilizing cover crops for years, are they maximizing the poten-tial of this agricultural practice? During the 2020 Oregon Wine Symposium, held virtually from February 16 to 19, 2020, two panels delved into the nuances of what defines high quality soil and the role cover crops play in generating organic soil, focusing particularly on how to best utilize cover crops in the vineyard setting.  

  At the first panel, “Soils and Cover Crops: Back to Basics,” James Cassidy, Senior Instructor in Soil Science & Sustainable/Organic Agriculture at Oregon State University, opened with a short presentation on Soil 101. He described soil as “rotted” rock and decomposed organic matter. Next, he broke down soil into soil solids (mineral 45%, organic 5%) and pore space (air 20-30%, water 20-30%). Carbon from the atmosphere and energy from the sun transform these materials into soil courtesy of the billions of organisms present in a single pinch of soil.  

  “Internalize the idea that soil is habitat for everything that is alive on this planet,” Cassidy said.  

  During irrigation, rain or another precipitation event, gravity pulls the water into the soil’s macropores. As water flows through these macropores, it sticks in the micropores inside the soil and eventually fills with water. Then the soil drains, and there’s air in the soil.  

  “When the soil is draining, it’s actually breathing,” Cassidy said.  

  The rate at which water moves into the soil is impacted by various factors, including soil type (texture structure, aggregate stability, hydrodynamic characteristics), topography and morphology of slopes, flow supply (rain intensity, irrigation flow), and the initial condition of the soil’s humidity.  

  Currently, on Earth, a hectare of productive soil is lost every six seconds. While farmers can’t change their land’s soil type or topography, they can manage for stable aggregates, a wide pore size distribution structure and minimized compaction. Well aggregated, stable soil pulls in water. This means the water goes deeper into the soil instead of producing runoff, which carries away the small particles and organic matter that hold nutrients in the soil.  

  For every 1% increase in organic matter, soil can store up to 25,000 more gallons of water per acre. In Cassidy’s estimation, cover crops represent the easiest way to add organic matter to the soil. “Cover crops improve the soil structure by punching big holes into it with their roots. When those roots decompose, they stabilize the aggregates so those macro pores stay there a long time and can actually reverse compaction.” In comparison, tillage breaks up the macros, thus shredding all the organic matter that’s connecting and holding the soil together.  

How to Choose Cover Crops  

  At the second panel on cover crops, “Digging Deeper into Cover Crops: What’s Happening in Oregon?” Gordon Jones, Assistant Professor, OSU, Southern Oregon Research & Extension Center, delved into the myriad ways to utilize cover crops in the vineyard. Before planting, Jones recommends that growers clearly define their goals. Is their intention to increase production or profitability, improve soil health or appeal to consumers looking for wines made using sustainable means? When viewed in conjunction with a given vineyard’s particular climate and soil, these goals will inform the type of cover crops that would lead to optimal results. 

  Perennial crops such as ryegrass and tall fescue have been bred for forage and high yield, and they do require frequent mowing. Legumes like fava beans, white clover and strawberry clover can add nitrogen to the soil. Be mindful when sharing the land with livestock, as Jones addressed a fungus – endophyte – that can be present in certain turf-type cover crop grasses and can be harmful to livestock if grazed. 

  From an environmental perspective, planting deep-rooted perennial crops can improve soil health and decrease runoff. These crops will sequester carbon that helps to address some climate change concerns and build soil organic matter. 

  The planting schedule for cover crops varies according to a given region. For example, in a state like Oregon, known for hot, dry summers, many cover crops are planted in the fall to establish their root system before the summer. 

  The way a field is mowed, irrigated or fertilized will result in different mixtures of species of cover crops dominating. While complex mixtures of cover crops are often planted, Jones said that generally, only a few species within a mixture contribute significantly to the cover crop’s biomass. Over seeding in alleyways can result in an improved cover crop, though one must be mindful that any existing cover crop or weeds can be quite competitive with the newly seeded plants. 

  When debating to till or not to till, Jones said that tillage could be hard on soil aggregation and the pores in the soil. “If you’re interested in maximizing infiltration and soil health, consider a notill system.”  

  He added that tillage and herbicide can be used to kill all existing plants, and they are important tools in many growers’ toolboxes. Once the soil is devoid of existing vegetation, one can more successfully establish a cover crop free from unwanted plants. Those opting to farm using organic and low-input means by not using pesticides may need to contend with other plants sprouting alongside their cover crops. Also, self-seeding or self-regenerating winter annuals planted in the fall that go to seed by May and sprout again in the following fall can afford minimal soil disturbance. 

  In conclusion, Jones pointed to preliminary research in Southern Oregon, Ithaca, New York, and South Australia that suggests actively growing cover crops directly underneath the vine can de-crease the need for under-vine herbicide or tillage. Which species of under-vine cover crop to plant in Oregon is still an open question. The ideal species would be low growing, competitive against weeds, but not too competitive with the vines. Further work needs to be done in evaluating undervine cover crop options before growers add this to their toolbox.  

Additional Resources  

  Those looking for professional guidance can hire a consultant such as Rebecca Sweet-Smith of Buzz Cover Crop Seeds and Corridor AgLand Consulting, who provides diverse and organic seed mixes for ecologically minded vineyards and farms in the Pacific Northwest. While not in-volved directly in growing grapevines, Steve Groff, founder of Holtwood, Pennsylvania’s Cover Crop Coaching and author of The Future Proof Farm: Changing Mindsets In A Changing World, can offer assistance to those looking to explore organic ways to mimic nature when growing cover crops.  

  Also, Amy Bartow with the USDA NRCS Corvallis Plant Materials Center presented an overview of the costshare programs available for cover cropping in vineyards along with examples of their projects to date. She recommended that interested parties get in touch with their local Soil and Water Conservation District to get information about specific programs available in their particular area.

Changes to Gift Tax Exemption Laws Could Affect Winery Estate Planning

Cyndi
estate planning worksheet

By: Kemp Moyer and Sachi Danish, BPM LLP 

For owner-operators of wineries and other closely held businesses, now may be an opportune time to maximize estate planning through the utilization of gifts of ownership interests. The Tax Cuts and Jobs Act (TCJA) of 2017 has been broadly seen as favorable to businesses, high-net-worth individuals and estates, including the temporary doubling of the lifetime federal exemption for gift, estate and generation-skipping taxes, which stands at $11.7 million in 2021.  

  However, the combination of a new administration, as well as increasing federal deficits in the wake of the COVID-19 pandemic fallout and federal response, means the higher lifetime exemption may be in jeopardy. Many in the tax policy and preparation communities are expecting the recently elected Congress and administration to accelerate the rollback of the exemption increase. Sweeping changes have been proposed by the Biden administration and now it is widely considered just a matter of when and how much. Among the potential early targets is the larger estate tax exemption, which will sunset back to pre-TCJA baselines at the end of 2025 without further action from Congress.  

Estate and Gift Tax Law 

  As noted previously, the current gift, estate and generating skipping tax (GST) exemption amount is approximately $11.7 million per individual. This exemption amount is currently required under the law to be cut by 50% in 2026, to about $6 million per person, depending on adjustments made for inflation. This reduction is built into current law, and it has created a use-it or lose-it opportunity for high-net-worth individuals. However, the following Biden proposals are even more dramatic: 

• Reduce the estate and GST exemption to $3.5 million and only permit $1 million in tax-free lifetime gifts. 

• Increase the estate tax rate significantly from 40% up to a 65% top rate. 

• Eliminate the stepped-up basis rules at death. This would be a significant change as a carryover basis may create an income tax at death (“death tax”) or upon later sale on all appreciated property.  

• Limit valuation discounts between family members. 

• Include grantor trusts in the grantor’s estate and eliminate use of short-term grantor retained annuity trusts (GRATs) and sales to intentionally defective grantor trusts (IDGTs). 

• Limit duration of GST trusts. 

  The above proposals make it urgent to address your estate tax planning now, rather than waiting for what the future may bring, although planners must also consider the possibility of retroactive law changes. 

  Some estate and gift opportunities to consider under current law include: 

• Use your annual exclusion gifts of up to $15,000 per person ($30,000 if both parents make gifts to that individual). Over time, these gifts can accumulate into significant amounts. These amounts could be on top of direct payments to a provider for medical services or educational tuition for anyone, related or not, which are not considered gifts.  

• Make large gifts of assets with potentially depressed values and subject to discounts. Leverage the current $11.7 million unified credit amount with gifts of fractional interests in real property or ownership interests in a family or closely held business that qualify for valuation discounts. To protect against retroactive changes to the $11.7 million gift exemption amount planners should also consider use of disclaimers, formula gifts, and lifetime qualified terminal interest property (QTIP) trust elections as part of the planning with trusts. 

• Make low-interest loans to children. Loans for homes or business opportunities are often very attractive, with August 2021’s Applicable Federal Rates (AFRs) at .19% for loans three years or less, 1.00% for loans more than three years and not more than nine years, and 1.87% for loans more than nine years. 

• Gifts and sales to intentionally defective grantor trusts (IDGTs) can be used to transfer cash, securities, business interests, real property and other investment assets to descendants in a tax-beneficial manner. The sale or gift of assets from the parents or grantors to an IDGT is not subject to income tax, because the grantors are treated as having sold the assets to themselves. Only gift tax is due on the transfer. Assets transferred to the IDGT remain in the trust and grow outside the grantor’s estate, allowing them to appreciate tax-free. 

  Owner-operators of successful businesses likely already have some familiarity with the estate tax. This tax works in conjunction with the federal gift tax, which applies to transfers of property during one’s lifetime. In theory, both estate transfers and gifts made during one’s lifetime are currently taxed at a maximum marginal rate of 40%. 

  The gift tax annual exclusion allows individuals to gift up to $15,000 per recipient per year tax-free. The lifetime gift tax exemption currently stands at $11.7 million, and this maximum amount represents the sum of all taxable gift, estate, and generation-skipping giving allowed before taxes are due. The temporary nature of the current higher lifetime exemption has created a level of urgency in many estate strategies. 

  There are proposals in Congress to reduce the estate and GST tax exemption to $3.5 million and the gift tax exemption to $1 million, limit valuation discounts for family businesses, and trigger income tax when gifts and transfers of appreciated property exceed $1 million.  Political analysts expect these proposals to be among the Democrats’ top priorities, not to just increase taxes but to redistribute wealth in our country. This puts some pressure on larger estates that may be affected, including many winery owners. To utilize the higher lifetime exemption before it expires, many high-net-worth individuals are acting urgently to accelerate their estate planning strategies to avoid a much greater potential estate tax burden. 

Winery Ownership Estate Planning 

  Even in an increasingly corporatized wine space, many wineries continue to be family-owned businesses. Many owners of closely held wineries, desiring to keep their legacy in the family, already intend to pass down the business upon their death to their children or other inheritors. The increasing likelihood of a rollback on the lifetime exemption means winery owners may want to consider transferring at least some portion of their business in the near future via gifts, or sales to IDGTs rather than waiting until death. Gifts and sales of appreciated assets may trigger immediate to grantor trusts are  

  While certain wine industry segments have recovered to or even exceeded their pre-COVID sales, many closely held wineries are experiencing challenges such as reduced tasting room visits and lower sales to restaurant customers due to COVID-19, which often contributes to a lower business valuation. A lower valuation means a smaller gift in the eyes of the IRS, and less estate taxes or even avoiding them altogether. 

  The benefits of any reduction in business value due to the pandemic and the availability of the favorable tax rules related to grantor trusts may not be here for long. This is a unique opportunity for winery owners to take care of what they were already planning to do down the line, while taking advantage of historically favorable tax conditions. Estate planning is a process, not a one-time trust agreement, and as you become more educated in the process through your trusted advisors including your attorney, accountant, wealth and insurance advisors, your ability to make the key decisions in the process will become easier. 

  Kemp Moyer is Certified Valuation Analyst and a Director in the Advisory practice leading the Firm’s Valuations and Appraisals team at BPM LLP.  

  Sachi Danish is a Director in Tax Private Client Services and leads the Estate & Trust practice for BPM. 

The Importance of Review Sites

Cyndi

By: Susan DeMatei 

We all have a love/hate relationship with online reviews. We get angry when someone points out our flaws on Yelp, but we look for multiple reviews when considering something on Amazon. 

Four Reasons You Should Care About Online Reviews 

  Let’s start with your consumer. Chances are, if you’re a winery and you’re selling mid-priced wine, your consumers fall into the Baby Boomer and Generation X demographics. (The 2021 Silicon Valley Bank reported that Boomers and Gen Xers account for 71% of wine consumption.) 

  However, this won’t be the case for long. If you consider the SIZE of each generation, Baby Boomers are aging out, and GenXers aren’t that big of a group of individuals. The oldest Millennials turn 40 this year. So very soon – as in the next five years – our targets will be Millennials. 

  The shift is significant because of the vast difference in values between Boomers and Millennials. Boomers are the responsible generation and did what they could to justify purchases with tangible data like scores. They also liked outward recognition and status to validate that they made the right decisions. Millennials, on the other hand, tend to look for a purpose or meaning behind their products. Ideally, they search for companies and products with detailed backstories that offer intrinsic value to make them feel good about themselves and the purchase. And they care about what their cohorts think.  

  So, over the next 5-10 years, we will witness a massive shift in marketing, and one of the major transformations will be in the area of influence.  While today’s wine consumers are widely influenced by the established press or reviews, the consumers of tomorrow care about what peers say – even if they’re anonymous peers. 

  The second compelling reason is the sheer number of review sites and our reliance on them for purchase validation. It’s already evident that we’re groomed to look for ratings and reviews before we buy. Here is a brand-new ranking of the top 10 review sites based on searches. You can see here that these sites get millions of views a month.  

Vendista Chart

  A third reason to care about online reviews is Google. Reviews appear in, and help, Google search ranking. And incidentally, they also appear in search results by Alexa in voice-search. The number and quality of your reviews directly contribute to, or inhibit, people’s ability to find you and your products.   

  The best strategy here is to harvest Google reviews. Google supports Google. Google wants you to use its tools. So, it makes sense that Google cares if you have your Google My Business Page set up and that you’re collecting reviews. In addition to nepotism, it’s good business because Google will see that you’re a valid business and will have more credibility returning your company and product in search results. 

  The fourth reason you should care about review sites is because your customers care about review sites. 92% to 97% of customers look for or read a review before doing business with a company. 80% of us trust reviews by strangers just as highly as a reference from our friends. 72% of us look for only positive reviews, and 86% will not do business with those with negative reviews. (Clutch.co) 

  And it is surprising how quickly comfort levels fall when you go from five to one-star ratings. 94% of us will use a business with a four-star rating, but only 14% will consider a two-star rated business. 

  My advice is to be familiar with what people say about you. Search your brand. Know where you and your wine show up and what feedback you’re receiving. 

Tools to Help 

  Ok, but how can you efficiently monitor all those online review channels. Especially when you already have your hands full trying to run your business’s day-to-day without scouring Yelp and Google for new posts. Fortunately, there are some reputation management tools you can use to help out. 

  The easiest tool for tracking any mention of your company or product online is Google Alerts. This is a free search that lets you create daily alerts for any mentions of your brand online. Enter the name of your brand or product in the search bar to see who is talking about you. Then you can create a constant alert to get results emailed to you. The downside is it can be tough to filter the information out in an intelligent way. For instance, when I worked with Opus One, I was reminded daily how many products and companies contained “Opus.” That said, it’s a free, easy tool. If you’re a small winery on a time crunch with a limited budget, Google Alerts is worth your time. 

  ReviewPush is an excellent tool if you do have a small budget and want to take it one step further. With this service, for $89 a month you can create alerts for over 20 different review sites and have them sent to your inbox. Even more timesaving is a feature that allows you to respond direct to reviews from within those email alerts. This alone might be worth the cost. You can also involve an extended team with distributed reports and access to dashboards. So if you have multiple players in your tasting room or wine club, this might be an efficient way to have the entire team monitor and response quickly.  

  There are many other tools in this space that also fall into reputation management. So in addition to looking at reviews, they can monitor what anyone is saying about you on social media platforms like Facebook and Twitter. These are pricier options and typically involved working out your needs with a sales rep. 

  So hopefully this gave you some incentive to include reputation management as part of your marketing strategy, and some tools to help. In the next article we’ll talk about how to work with your tasting rooms to request reviews – it’s not as scary as it sounds. But until then, start to pay attention to where your customers are trying to communicate about you. Start thanking and replying to them if you aren’t already and take the view that feedback as gift to help you improve and delight future customers. 

  Susan DeMatei is the President and Nathan Chambers is an Account Director at WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California.  www.wineglassmarketing.com