Category: Winery Info

Exploring How a Boutique Winery Crafts a Diverse Wine Portfolio

Cyndi
4 red wine bottles

By: Becky Garrison 

A quick glance at the wine list at Fullerton Wines, and one could easily be fooled into thinking this family-run venture is a large-scale commercial winery. Depending on one’s palate and pock-etbook, they can choose from Fullerton Wines’ Single Vineyard and Reserve wines, their nu-anced Five FACES line of Pinot Noir and Chardonnay, or their more playful and lighter Three Otters line of Pinot Noir, Chardonnay, Pinot Noir Rosé and Pinot Gris. So how can a boutique winery that produces 8,000 cases annually craft such a vast array of wines?

  The short answer? “I’m on the road a lot,” said Fullerton Wines’ winemaker, Alex Fullerton. The long answer starts with Alex’s lifelong passion for wine, cultivated through his family back-ground and education in viticulture and enology at Oregon State University. These factors gave him the tools he needed to craft distinctive wines that reflect the soil where they are grown.

A Wine-Loving Family

  Prior to founding Fullerton Wines, Eric and Susanne Fullerton, hailing from Denmark and Swe-den respectively, introduced their passion for wine to son Alex and his siblings. As a teenager, Alex caught the wine bug during a trip to France with his father. His interest continued when he journeyed with his family through Burgundy, Bordeaux, Champagne and other Old World re-gions. During these trips, he learned how wine can serve as a bridge between cultures.

  After high school, Alex attended OSU, where he graduated with an economics degree before en-rolling in the Viticulture and Enology program. Here he obtained the scientific skills needed to fine-tune the informal education and refined palate he received from his parents.

  After college, Alex worked at Drylands Winery in Marlborough, New Zealand, as well as Pen-ner-Ash Wine Cellar and Bergström Wines, two wineries based in Newburg, Oregon. While get-ting hands-on experiences at Willamette Valley wineries, he gained an in-depth understanding of Willamette Valley soils. While the Valley’s soil is known internationally for producing award-winning Pinot Noirs, other area soils are ideally suited for growing white wines such as Char-donnay and Pinot Gris. In some instances, the same soil can produce both grapes.

  In 2011, Alex and his family put that Willamette Valley soil to the test. Despite a challenging growing season, they achieved success with the 468 Chardonnay vines planted at Estate Ivy Slope Vineyard, the formal name of the family’s backyard in Beaverton, Oregon, on the northern border of Willamette Valley.

  From the winery’s inception, the Fullertons have sought to produce quality fruit that mitigates the impact of climate change. They achieved this goal by employing organic and biodynamic farming methods such as permanent cover cropping and the use of organic fertilizers.

Looking to the Soil

  Since then, the Fullertons expanded their winery by exploring which grapes work best with the type of soil in a given vineyard. The soils present in the Willamette Valley are sedimentary, vol-canic, and loess. The history of how the soil came to be so varied is as complex as the grapes that grow from it.

  Flooding during the end of the last ice age formed the Willamette Valley and left behind a com-plex series of soils with unique characteristics. A repeatedly melting glacial dam led to Missoula flood deposits that were brought down the Columbia Gorge and eventually became the Valley’s floor soil.

  The flooding from the Pacific Ocean brought marine sediments, creating the soil that produces voluptuous blue and black fruit with rich aromatics, denser tannins and earth tones.

  Basalts originated due to lava flows from eastern Oregon, which gave rise to the volcanic hills in the Valley. Here, one finds grapes that produce red-fruited wines with soft tannins, a noteworthy acidity and spicy aromatics.

  Silt blown up from the Valley onto the northeast side of the Willamette Valley produced wind-blown loess. This soil tends to produce a darker flavor with grapes that have a round tannin structure and mixed berry aromas with undertones of exotic spices and briar patches.

A Vast Portfolio of Vineyards

  This year, Fullerton is working with a dozen vineyards nestled among the AVAs that spawn the entire Willamette Valley wine region. These AVAs and their corresponding vineyards include:

•   Willamette Valley (Apolloni Vineyard, Bennett Vineyard, Croft Vineyards)

•   Chehalem Mountain (ArborBrook Vineyard, Nemarniki Vineyard)

•   Dundee Hills (Bella Vida Vineyard)

•   Eola-Amity Hills (Bjornson Vineyard)

•   McMinnville (Momtazi Vineyard)

•   Ribbon Ridge (Lichtenwalter Vineyard)

•   Van Duzer Corridor (Wetzel Vineyard)

•   Yamhill-Carlton (Fir Crest Vineyard)

  This vast portfolio of vineyards are selected based on the Fullerton family connections. The net-work allows Alex to pinpoint the exact plots of land that will work best for producing particular types of wine. “This selection process preserves the heart and soul of the individual vineyards so they can all speak for themselves,” he said.

  According to Alex, this diversity allows him to blend with consistency, as he has a vast palette of grapes at his disposal that he can use to craft specific wines. Furthermore, by having vines scat-tered throughout the Willamette Valley, Fullerton Wines can still harvest grapes should one re-gion experienced a severe weather crisis such as drought or fire.

  Still, Alex admits it can be draining to run around sampling the vines. He decides when it’s time to harvest a particular vineyard based primarily on his taste assessment. A refractometer helps him assess the sugar and when to mash the grapes. Then he titrates the wine and uses a spec-trometer to evaluate the enzymes.

Less is More

  Zoning restrictions and the desire for a modernized facility led the family to move the winery to Corvallis, Oregon. Here Alex puts his “less is more” belief into practice. For example, the reality that wine can be made naturally with the aid of wild yeast, combined with Alex’s years of tasting hundreds of inoculated and spontaneous fermentations, led to his preference for spontaneous fermentations. He eschews fining, which results in producing vegan-friendly wines. Also, only select wines will receive cross-flow filtration once testing proves they will benefit from the pro-cess.

  Fullerton’s Single Vineyard and Reserve wines point to those selections that Alex believes come from the best barrels from their premier vineyard sites. Each bottle represents the unique condi-tions of that particular vineyard, and are marketed towards the serious wine connoisseur.

  Their Five FACES label, an acronym for the five Fullerton family members—Filip, Alex, Caro-line, Eric and Susanne—was created to make a true Willamette Valley blend. Five FACES Pinot Noir and Chardonnay blend fruit from both volcanic, basalt-based soils and sedimentary, sand-stone-based soils. The complexity of this wine is due to their restrained use of aging in new French oak.

  Five FACES Pinot Noir tends to be on the lighter side, with refined tannins and high but well-integrated acidity. Notes of spice, smoke, and wet earth speak to the mixed berry aromas and fla-vors like fresh marionberry, strawberry, and cherry.

  Five FACES Chardonnay speaks to the growing acceptance of white wine grapes in the Willamette Valley. This wine has a medium-plus body with an elegant tension between acidity and texture. Underneath the intense aromas of apple, pear, brioche and citrus, is a sense of min-erality and spice notes.

  In 2014, Fullerton launched its Three Otters line with the intention of offering an intriguing value wine. The line is geared towards the broader market by appealing to consumers who are seeking a quality wine in the $15-$25 range. The label honors the family’s Northern European heritage, as three otters have rested prominently on the Fullerton family crest since the 13th century. This label also highlights the playful nature of this approachable, lighter and easier drinking wine.

  In addition to Pinot Noir and Chardonnay, the Three Otters line includes Pinot Noir Rosé and Pinot Gris. The rosé was crafted as the result of a friendly competition between Alex and his fa-ther, Eric. It has soft floral undertones and a light, breezy structure with notes of watermelon, strawberry and citrus. Even though Alex admits that Pinot Gris can be a “boring wine,” he want-ed to add one to the Three Otters line because he had a unique chance to work with some fifty-year-old Pinot Gris vines.

  While the winery is not open to the public, visitors who take a trip to Fullerton’s wine bar and tasting room in Northwest Portland can take a mini-tour through the range of wines produced by the entire Willamette Valley. That way, they can sit and savor without spending the day navi-gating traffic.

Sustainable Wineries Attract More Consumers

Cyndi
winery at the foot of the mountain

By: Briana Tomkinson

  Concern about threats related to climate change is inspiring more consumers to make lifestyle changes like going vegan, upgrading to electric cars, reducing plastic waste and seeking more environmentally sustainable products. It’s also starting to affect how consumers select their wine.  

  Surveys of wine consumers in Canada, the U.S., Sweden and the UK are indicating a growing interest in purchasing sustainably produced wine, favorable perceptions of sustainable certifi-cation programs and certification logos, and a willingness to pay more for sustainably pro-duced wine—particularly by Millennials and Gen Z.

  For many Canadian winemakers, however, their interest in sustainable winemaking began well before consumers started paying attention.

  According to veteran British Columbia winemaker Gordon Fitzpatrick, adopting environmentally sustainable practices isn’t just the right thing to do—it also makes good business sense. “Often, sustainable choices have economic benefits. It’s not mutually exclusive,” Fitzpatrick said. “Every little bit helps.”

  Fitzpatrick has been in the wine business since 1986 when he founded Cedar Creek Estate Winery. He sold the majority of his vineyards to Mission Hill five years ago, but kept one be-tween Peachland and Summerland. In 2017, he launched a new label, Fitzpatrick Family Win-ery, using those grapes.

  The boutique winery focuses on sparkling wine and has approximately one-fifth of the produc-tion capacity of Cedar Creek, topping out at about 10,000 cases at full production. The shift into sparkling wine was a strategic choice to take advantage of the vineyard’s unique microcli-mate.

  “We lose the sun about two and a half hours earlier than most other vineyards,” Fitzpatrick said. “That’s why we specialize in sparkling wine. It creates that natural crisp acidity. I call it shade’s gift.”

  Fitzpatrick Family Winery is located in the Thompson Okanagan region, British Columbia’s pri-mary wine-growing region. The area boasts 84% of the province’s vineyards by acreage and has over 200 wineries. Wine tours are a big draw for visitors to the region. With the local tour-ism association increasingly spotlighting sustainable tourism, wineries like Fitzpatrick’s are get-ting more recognition for their environmentally friendly choices.

  The Thompson Okanagan Tourism Association recently developed a sustainability pledge to identify and feature responsible tourism providers in the region, including Fitzpatrick Family Winery. Other wineries who have signed on to the program include Poplar Grove (https://www.poplargrove.ca/), Grizzli Winery (www.grizzliwinery.com) and Meadowvista (www.meadowvista.ca).

  The region was also officially certified as the first destination in the Americas to achieve the Sustainable Tourism Accreditation from Biosphere International and the Responsible Tourism Institute. The certification criteria includes commitments to environmentally sustainable practices, including ensuring access to sustainable energy and adopting measures to mitigate cli-mate change.

  Fitzpatrick Family Winery was a pilot winery for the program last fall, Fitzpatrick said, which included a thorough audit on water, energy and waste management practices.

  “We think of ourselves as good stewards of the land, but you always want to look at how you’re doing things. They came up with some recommendations on how we can do things even better than we currently are [doing them]. It was a very worthwhile process to go through,” he said.

  Recommendations ranged from replacing big-ticket items like a 25-year-old water pump with a newer, more energy-efficient model, to less costly initiatives like installing flow meters to better monitor water usage, and expanding the winery’s compost program to incorporate food waste from the on-site, seasonal restaurant.

  The winery is also now pursuing organic certification, following a recent $40,000 investment in mechanical weeding equipment that will allow Fitzpatrick to stop using herbicides in the spring.

  In the last five years, Fitzpatrick said consumer awareness of sustainable practices has changed significantly. “People are much more aware and want to know what your practices are, and are you being a good steward of the land,” he said. “it’s nice to be able to stand be-hind what we do.”

Do Wine Consumers Care? Researchers Say Yes

  According to market research by Wine Intelligence, it’s not just hippies who are choosing more socially and environmentally conscious purchases. Interest in organic, fair trade and sustaina-bly produced wine is growing and is now considered mainstream, particularly among consum-ers under the age of 45.

  In the U.S., almost three-quarters of consumers surveyed said they would consider buying sus-tainably produced wine in the future. Seventy percent of Canadians agreed.

  Nine out of ten millennial consumers surveyed said they would be willing to pay an average of $3 more for sustainably produced wine. The research found that sustainability certifications for wine improved consumers’ willingness to buy.

  The research was presented at the first U.S. Sustainable Winegrowing Summit in Sonoma last June. In a speech at the event, Wine Intelligence CEO Lulie Halstead outlined five key concepts  to “sell” sustainability to consumers, highlighting how it’s good for people as well as for the environment:

1.   Focus on the small steps producers and consumers can take today.

2.   Frame sustainability as a positive choice: talk about positive benefits.

3.   Use groupthink for good: invite customers to be part of a larger movement to make greener choices.

4.   Appeal to feelings, not facts: logic is not as persuasive as emotion.

5.   Be brief: keep messaging succinct.

  The second edition of the U.S. Sustainable Winegrowing Summit will be held this year on May 5-6 in Long Island, New York. The event will feature tours of sustainable wineries in the area, as well as a full conference program. Tickets are $50. More details are online at https://www.sustainablewinegrowing.org/summit/.

British Columbia to Host Global Sustainable Tourism Conference

  The Thompson-Okanagan region is also hosting the 2020 Global Sustainable Tourism Confer-ence November 19-22—the first time the annual event will be held in Canada—at the Delta Ho-tels by Marriott Grand Okanagan Resort in Kelowna.

  The event will feature expert speakers and panelists from around the world. Over 500 local, national and international delegates are expected to attend, including destination marketing professionals, airlines, travel agents, international media and tourism-oriented business lead-ers.

  According to President and CEO of Tourism Kelowna, Lisanne Ballantyne, industry research indicates that interest in sustainable tourism destinations is growing. She said recent reports have found 87% of consumers want to travel sustainably, and 67% are willing to pay more for travel that has a less negative impact on the environment.

  In 2019, for the second year in a row, TOTA was named the World Responsible Tourism Award Winner at the Annual World Travel Awards.

  According to British Columbia’s Minister of Tourism, Arts and Culture, Lisa Beare, the prov-ince’s stunning scenery and unspoiled wilderness is a key draw for visitors from around the globe, and the region’s tourism strategy reflects that.

  “Our strategic framework for tourism seeks to responsibly grow the visitor economy by re-specting nature and the environment, and making sure that everyone sees the benefits of this important industry,” Beare said in a press release about TOTA’s award win.

Why You Like Ontario Wine But Just Don’t Know It

Cyndi
bench at the middle of a vineyard

By: Alyssa Andres

  I can’t count the number of times I’ve heard people say, “I don’t like Ontario wine.” It’s a statement I constantly hear, especially in the Niagara region, where a lot of wine lists focus on local producers. Every time I hear this sentiment, I’m a little appalled. It’s like saying you don’t like Chardonnay. Maybe you just haven’t found the right Chardonnay for you. So, this year, when I attended my very posh friend’s annual holiday wine tasting party, I brought along a nice, moderately priced bottle of Ontario wine to add to the mix of thirty bottles we were blind tasting. The premise: each person brings a bottle of wine and, throughout the night, tries each one and chooses their favorite. The winner was chosen based on everyone’s overall rating. Simple. The prize: a $200 bottle of Gamble Mary Ann, a Napa Valley Bordeaux Blend. I quietly uncorked my bottle of wine from Ontario’s Ridgepoint Wines and waited for the night to unfold. 

  Currently, Ontario is cursed with the same stigma that California received in the 1970s before the Judgement of Paris. No one seems to believe Ontario vintners are capable of producing great wine. Forty years later, California is one of the leading producers in the world and seen as a premier destination. However, Ontario winemakers are still fighting to make a name for themselves in the international market, despite having been producing wine for decades. Several factors influence this: the lack of knowledge when it comes to the Ontario wine region, the stereotypes associated with Ontario wine, and the need for better distribution of wine from within the province.

  Winemaking in Ontario dates back to 1811 when German native, Johann Schiller planted Pennsylvania-native Labrusca grapevines in Cooksville, Ontario. The first winery in the province opened its doors in 1866 on Pelee Island and Niagara’s first winery, the Ontario Grape Growing and Manufacturing Company, followed shortly after in 1873. These early days of winemaking in Ontario saw over thirty new wineries open for business by the late 1800s. Unfortunately, by the time prohibition was repealed in 1927, this number had fallen from 61 to six. At this same time, the government created the Liquor Control Board of Ontario to control the sale, transportation and delivery of alcoholic beverages in the province. Eighty-six LCBO stores opened by the end of that year, and liquor permits were issued at $2 each to enable individuals to purchase alcohol. At this point, the rules and regulations surrounding the production and sale of wine did not allow for new wineries to open.

  It wasn’t until the early 1970s that winegrowers started to take the first steps to revitalize the Ontario wine industry. In 1974, Inniskillin Winery became the first new Ontario winery to open its doors since 1916. They opened the gates for a slew of other wineries to follow, and, by 2005, a total of 75 new wineries had opened up in the region. In 1988, the Vintner’s Quality Assurance laid out the specific geographic guidelines for the winemaking appellations of Ontario and set strict production standards on wine throughout the province.

  Today, there are three VQA wine appellations in Ontario: Lake Erie North Shore, Niagara Peninsula and Prince Edward County. Within the Niagara peninsula, there are two regional appellations: Niagara-on-the-Lake and the Niagara Escarpment. These regional appellations are then broken down further into 10 sub-appellations based on their unique geographical conditions. Each sub-appellation has different geology, soil, elevation and variation in temperatures and precipitation. There is such diverse terroir in this 13,600 acres of land that they can produce everything from delicate Rieslings to bold and tannic Petit Verdot. The Niagara Peninsula currently boasts over 46 different grape varietals. Riesling, Chardonnay, Cabernet Franc, Gamay Noir and Pinot Noir particularly flourish here. 

  When people think of Canada, they don’t naturally think of wine. They think, “The Great White North,” hockey and snow. The reality is, the Ontario landscape is so vast and varied that it allows for the production of a lot more than just icewine. The Great Lakes border the southern part of the province. Most vineyards are planted along the perimeter of Lake Ontario, an enormous body of water that moderates the typically colder winter temperatures of the area. Moderate temps also make for a longer growing season. Harvest of most grapes doesn’t start until late September, with the late-ripening grapes being picked still well into November. Everything from Malbec to Nebbiolo can be grown. Ontario may have cold winters, but the summertime temperatures reach Mediterranean levels of 95 degrees Fahrenheit.

  Ontario also has elevation. The Niagara Escarpment stands 177 meters tall and runs through the entire Niagara Escarpment appellation. The enormous cliff formation faces north and, combined with the moderating effect of Lake Ontario, creates the perfect micro-climate for nurturing a diverse variety of grapes. The escarpment shelters the vineyards from prevailing southwest winds and traps warm lake air from the north, allowing for later bud bursts and less risk of frost in the spring, as well as extended growing seasons in the fall. Hot days followed by cold nights allow grapes to retain their acidity while fully ripening, making for exceptionally well balanced, food-friendly wine. The streams that run through the escarpment provide drainage during the spring melt and provide an excellent source of groundwater during the dry summer months.

  The soil in the Niagara Escarpment is rich and complex. UNESCO recognizes the region as a World Biosphere Reserve due to the regional appellation’s fossil-rich sedimentary soils, not unlike Burgundy and Loire Valley. The Beamsville Bench sub-appellation has some of the most sought after vineyard land because it’s home to fossil-enriched dolomites. High in calcium-magnesium, the dolomites give the wines of Beamsville Bench a distinct minerality, similar to a Chablis. Beautiful Sauvignon Blanc and Pinot Gris are being produced here with notes of slate and wet stone, complemented by fresh pear and crisp green apples.

  Just a few kilometers from the Beamsville Bench, you find yourself in the Twenty Mile Bench with a terroir comprised predominantly of limestone and shale. These soils provide excellent water holding capacities during the growing season. Combined with the numerous streams that dissect the escarpment and provide drainage in the spring, Twenty Mile Bench is a highly regarded VQA sub-appellation. Here you will see producers focusing primarily on Burgundian style Pinot Noir and Chardonnay. These beautiful cool climate wines are a breath of fresh air after an onslaught of overripe and overproduced New World wines the market has been seeing over the recent years.

  Directly next to Twenty Mile Bench, nestled between the escarpment and Lake Ontario, the Lincoln Lakeshore appellation has one of the longest and warmest growing seasons in the region. The scarp acts as a shield from heavy winds, and the lake provides insulation against cold temperatures and traps moisture during hot, dry summers. The most notable characteristic of Lincoln Lakeshore, though, is its terroir. The soil within this appellation is extremely varied. Fifty-five percent of the area is covered in light sand, but you will also find pockets of deep red clay loam and alluvial deposits from the ancient lake that once existed here. Cabernet Franc seems to flourish in these areas in a very classic expression of the varietal. Big tannin, bold black fruit and a hint of crisp green pepper are typical in these wines.

  Meanwhile, along the sunny banks of the Niagara Lakeshore appellation, light, sandy soils allow for deep-rooted vines and later ripening grapes. Here, you will find notably fuller-bodied wines with potential for maturing: big Bordeaux style blends with bold black fruits and ripe tannin. They are even growing Petit Verdot and Tannat in this appellation. The simple geography and proximity to the lake and Four Mile Creek ensure warm temperatures and lots of sunlight year-round. In other words, when it comes to wine in Ontario, there’s the opportunity to produce just about anything.

  The issue is you won’t necessarily find the best Ontario wines in the local liquor store. Ontario vintners can’t even get most of them on the shelves in their own LCBO stores. The process of getting wine in the hands of consumers is not an easy one in Ontario.

  Most Ontario wineries are opting for small-batch wines that are only available in the winery tasting rooms. Recently, “virtual wineries” have started popping up with no physical storefront, just a product packaged under a winery name—similar to the Old World French tradition of “negociants.”

  The best way to find the best Ontario wine? Come to Ontario. Let the locals tell you where to go. It won’t necessarily be the big names like Wayne Gretzky or Jackson-Triggs. Some of the best wineries are literally inside the winemaker’s house, and they’re all too happy to have you.

  Since moving to the region, I have had the pleasure of discovering numerous wine producers who are doing remarkable things. Ridgepoint Wines, located in the Twenty Mile Bench, is one of the wineries that impressed me. At Ridgepoint, they are producing everything from appassimento-style Cabernet Sauvignon and Merlot to single varietal Sangiovese and Nebbiolo. The wine that I brought to the holiday tasting party was a 2012 blend of Cabernet Sauvignon, Merlot and Ripasso-style Aglianico. Amongst the juicy California Cabs and concentrated Amarones on the table, it was a delightful respite.

Tasting thirty wines in one night is no easy feat. Your palate can only handle so many Barolos in one evening. What my wine offered was a beautiful variation from the others, starting with a complex nose of cherry and cassis, toast and cedar. The refreshingly bright acidity stood out amongst the other wines, and the body, tannin and alcohol still held up against all of the heavy hitters. The palate showed lots of plush fruit balanced with oak and developing notes of leather and tobacco that lingered on the palate in a long, complex finish. The crowd didn’t know what hit them.

At the end of the night, I put on my jacket and packed up my newly acquired bottle of Gamble Mary Ann with a smug grin on my face. I proved to myself, and the others at the party, that Ontario has something to offer the world of wine. Ontario wine is not just good—it’s great.

Are More Audits Coming For the Direct-to-Consumer Market?

Cyndi

By Alex Koral, J.D., Senior Regulatory Counsel with Sovos ShipCompliant

Last fall, the state of Texas began the process of auditing all of their direct-to-consumer (DtC) wine shipping licensees, the biggest such audit in the history of this market.

While all states reserve the right to audit their licensees, the scope of this mass audit surprised many. More than 1,600 wineries possess permits to ship directly to Texas customers. Many have already received a notice from the Texas Alcoholic Beverage Commission (TABC) requesting to review their records. This time-consuming process began in September 2019, when the first round of notices were sent, and will continue as the TABC reviews all permit holders to ensure they are in compliance with the state’s laws.

At the heart of this heightened regulatory scrutiny by Texas is the dramatic rise in popularity of the DtC channel in recent years. Many wine drinkers have come to appreciate the DtC wine shipping market for bringing a direct connection to their favorite brands and greater access to wine clubs and highly-allocated labels, creating a $3 billion national market. 

The beverage alcohol industry has long been one of the most regulated enterprises in the country, so it is little surprise that this increased scrutiny has come to the DtC wine shipping channel. States have a vested interest in making sure they collect the full balance of tax money they are due and that their laws are followed to the letter. As Texas’s audits proceed, they could well represent a harbinger of what’s to come for DtC wine shippers, making it important to understand how and why regulators are examining this market. 

Even the Audits Are Bigger in Texas

In May 2005, Texas Governor Rick Perry signed into law Senate Bill 877, a transformative reform of the state’s Alcoholic Beverage Code that smashed open the door for wineries to ship directly to consumers in the state. Since then, wine enthusiasts in Texas have been able to purchase wine directly from out-of-state wineries, provided those wineries obtain the necessary sales tax and Winery Direct Shipper’s permits.

The state’s timing was no coincidence. Just one week after Gov. Perry signed the new bill into law, the Supreme Court held in Granholm v. Heald that the states’ ability to control their internal alcohol markets under the 21st Amendment did not supersede the general prohibition on discriminating against out-of-state interests under the Commerce Clause. 

Under the decision, states could no longer prohibit direct-to-consumer wine shipping if they allowed in-state shipping. In the years following Granholm, a wave of reforms flowed across the country. But Texas was one of the first to update its wine shipping laws. And today, the state lives up to its outsized reputation by being the second-biggest recipient state for direct-to-consumer wine shipping, according to Sovos ShipCompliant data. 

So what are Texas regulators seeking to achieve with this wave of audits? The goal appears to be ensuring wine shippers are properly licensed, paying excise taxes, reporting shipments, and not exceeding limits on how much they can send to individual Texans. The TABC has asked licensees for the sales data used to produce their Texas Excise Tax returns, including requests for copies of certain invoices

In addition to order data and invoice copies, the TABC has requested information regarding licensees’ business structures, including copies of their state and federal permits, and lists of corporate officers and directors. Contracts or other agreements that licensees have made with fulfillment houses and similar service providers have also been sought.

Finally, the TABC is looking into the specific wines that licensees have shipped to Texas consumers. Texas’s DtC statutes prohibit licensees from selling wines that the licensee does not personally produce or bottle. As such, the TABC has requested licensees provide Certificates of Label Approval (COLAs) and production records for wines shipped to Texas consumers.

These past requests, though, are subject to change at any time and any DtC wine shipper that does receive an audit notice should ensure they comply with the specific requests on their notice.

This heightened review by the state of Texas comes at a time when many states are working to ensure that direct-to-consumer shippers are complying with local regulations. For example, the Michigan Liquor Control Commission is stepping up in response to reports by the Michigan Beer and Wine Wholesalers Association alleging widespread violation of its DtC shipping laws, and the Mississippi Supreme Court recently heard a case regarding stings conducted by the state Alcohol Control Board to catch illegal DtC shippers. 

While Texas is currently the only state to have announced a review of this size, it almost certainly won’t be the last. 

As the Market Grows, So Will Regulator Scrutiny

The Supreme Court’s decision 15 years ago in Granholm v. Heald triggered a wave of wine shipping reforms across the country. Today, 45 states plus the District of Columbia permit DtC shipping, enabling over 90% of Americans to connect directly with their favorite wineries. 

As a result, direct-to-consumer wine shipping has grown from a small, niche market in 2005 into a hugely important channel worth more than $3.2 billion in 2019. According to Sovos ShipCompliant’s annual Direct-to-Consumer Wine Shipping Report, the channel grew by  7.4% percent in value and 4.7% in volume last year as more wineries invested in e-commerce, the average price-per-bottle increased, and Oregon and Washington again outpaced the overall channel in shipment growth, among other trends. 

In many cases, DtC shipping succeeds because it allows smaller wineries access to markets they would struggle to enter if they relied solely on the traditional three-tier system due to their relative size. According to the 2020 Direct-to-Consumer Shipping Report, wineries in the small winery category (5,000 to 49,999 annual case production) again dominated the winery shipping channel in 2019, accounting for 42% of the volume of shipments and 45% of the value of the DtC channel. DTC shipping has emerged as one of the best ways for these smaller producers to reach a national audience. 

This growth also reflects consumer demand across the economy for goods delivered directly to their doorsteps. Apps like Instacart and UberEats have democratized delivery, and consumer expectations for quick and convenient delivery have never been higher. This presents a tremendous opportunity for wine sellers to expand their reach, develop their customer base and increase their sales online. 

The marketplace is also likely to get more competitive in the new decade. In 2019, the Supreme Court paved a path for expanded DtC shipping of wine by retailers in its ruling in Tennessee Wine & Spirits Retailers Association v. Thomas. While only 15 states currently allow some DtC wine shipping by out-of-state retailers, many see this decision as an opportunity to challenge old laws to expand this market. Litigation is ongoing in several states that seemingly discriminate against out-of-state retailers in regards to their ability to ship wine DtC – notably Illinois, Michigan, and Missouri. Much in the same way that Granholm prompted a wave of statutory reform, observers expect consumers and advocates to push legislative changes across the country. While it may take a number of years for these changes to take effect, expanded retail shipping is something everyone should be watching closely. 

In the meantime, regulators have a vested interest in making sure all sellers—whether package stores, direct wine shippers or otherwise—are in compliance with the law. That means ensuring they are properly licensed, collecting all applicable taxes, not overselling to individuals and preventing sales to minors. So if other states see the Texas audits bring positive results, they are likely to follow suit to uncover gaps in their own systems.

Overall, the DtC wine shipping market is still young and regulators are still figuring out how to manage it. As the market grows, we can expect this trend of closer attention being paid to DtC shipping to continue at the state levels, making now the best time for wine producers to firm up their direct-to-consumer compliance processes and overall channel strategy.

Now Is the Time to Ensure Compliance

The risk of audits like those in Texas underscores the importance of closely adhering to the various laws and reporting requirements imposed by states. That the regulations can vary among states only adds to the complexity, whereas failure to comply may result in fines, loss of home state or federal licenses, and even possible criminal charges.

Wineries have a number of ways to handle this. Some are able to build in-house teams that can manage compliance, though this can be expensive. Others rely on outside consultants to manage their compliance needs. But of course, automating compliance processes is the easiest way to ensure audit success, limit compliance risk and reduce the overall administrative burden on shippers as state-by-state tax rules, rates and forms change. 

Shipping wine can be complicated, and compliance will never be a task that anyone relishes. However, as the direct-to-consumer channel grows in its importance to the industry, it’s vital that producers shore up their compliance strategy now before the next round of state audit notices goes out. 

About the Author: Alex Koral, Senior Regulatory Counsel with Sovos

Alex Koral is senior regulatory counsel for Sovos ShipCompliant. He actively researches beverage alcohol regulations and market developments in order to inform development of Sovos’ ShipCompliant product and help educate the industry on compliance issues. Alex has worked with the company since 2015, after receiving his J.D. from the University of Colorado Law School.

Crush Pad Design Considerations Before Building Your Winery

Cyndi
Wine grapes ready for crushing
Wine grapes ready for crushing, Yarra Valley, Victoria, Australia

By: Thomas J. Payette, Winemaking Consultant

The crush pad design of a winery is one of the most critical areas of the winery.  Much of the hard work, in making wine, happens on the crush pad especially during harvest.  Make sure to design and implement all aspects of the desired needs into the crush pad of your functional winemaking facility.  Below are some broad and expandable review points that apply to most, if not all, crush pads.

Weather:  Often grapes are picked based on weather.  Realistically, if inclement weather is forecasted the vineyard and winery team may make a decision to pick a variety before that forecasted event.  This will often mean that the crushing and pressing of that fruit may happen during poor weather conditions.  For this reason and for protection from all the elements, including hot sunshine, it is recommended the crush pad have a roof or cover over it.    Be sure to have ample ceiling height under the cover so as not to restrict certain activities such as dumping fruit into hoppers by way of forklift.

Cost:  This will be some of the least expensive square footage you will build at your winery.  Make sure to have enough room to handle the bulky mass of grapes so that the fruit may be crushed or processed into their respective least bulky state whether it is juice or must.  Make sure the concrete floor, if used, is thick enough to handle forklift traffic and that the finish has enough aggregate (rough surface) to make sure foot and vehicle traffic will have ample traction on the surface.  Because this will be some of the least cost in terms of square footage be sure to battle building planners that may want to reduce the amount of crush pad space allocated in the plans.

Plumbing:  Think through your operations anticipated on the crush pad.  Then use critical thought as to where certain needs for water are.  Winterizable plumbing, hot and cold, should be placed so hoses can be used but out of the way of foot and vehicle traffic, including doorways.  Size the lines to the area to allow for ample flow and encourage the plumbing contractor to use full port handled ball valves and to not use standard boiler valves for water supply.  Plan mechanical “stub outs” is this area if this area is planned to be the future expansion area of the winery buildings growth.

Wiring:  Make sure to think through plug outlet placement in respect to how it will service each piece of equipment anticipated, use the shortest length of cord and placed so the cords remain out of the way of foot and vehicle traffic.  Examples of operations that will need power are:  Press, pump, crusher, must pump, sorting table(s), shaker(s) and perhaps a few extra outlets if multiple operations will be happening in alternate work areas.  Make sure these electric outlets have weather proof closures and possibly set up on GFI’s ( Ground Fault Interrupters ).  Ample work lighting, including lighting to view into tractor trailers, should be addressed and ample 110 volts outlets should exist.  Review if ceiling fans are desired on your crush pad and if so – place them high above the floor to allow for forklift activity.  Review if any “mood lighting” is desired on a marketing level outside crushing hours.  Make sure to know what power service is run to your building in terms of amps and how many phases (single vs. three phase).  Additional wiring needs may be for internet access, cameras, intercoms, phone etc.

Drains:  A critical feature of the crush pad due to the large volume of water and cleaning used.  Proper sloping floors to these drains should be used so water will gravitate toward them without the assistance of a squeegee   If portions of the crush pad are not covered, make sure to place a three-way valve from the drain to redirect storm and rain water to a more proper location (review local building suggestions).  Review the need for a catch basin to strain solids from the crush pad effluent.  Make sure these drains will withstand the heavy forklift and equipment traffic.

Walls:  The walls on the crush pad should be durable and reasonably easy to clean.  Concrete, cinderblock, tile or other physically strong materials should be considered for at least the first 40 inches of height of the walls.  These are reasonably cleaned and very durable to resist bumping from pallet jacks, forklifts, tractors and other heavy items.  Above the 40 inches, if the masonry is not extended, perhaps look at an easily cleaned attractive and durable surface such a metal or vinyl siding materials.

Flooring Surface:  Mentioned earlier but worth re-emphasizing.  Make sure the surface of the flooring will handle all predicted vehicles, such as pallet jacks and forklifts, in terms of its thickness and PSI ratings.  Also make sure the surface has enough aggregate finish to avoid slipping of foot and vehicle traffic.

Mirrors:  An easy tool to implement, and rarely considered, if certain areas are difficult for forklift and machinery operators to see.  Try and locate a mirror placement that will allow sight to that area.  This could be in, near and around door ways.  Another area nice for mirrors is above any equipment that has high hoppers filled by forklift.  This will allow the operator to remain on the forklift, yet, be able to see inside the hopper to know all the fruit has moved through the hopper before adding more or closing a press door for example.

Catwalks:  Study your crush pad operation to determine if you need catwalks to service, operate and clean certain machinery.  Can these catwalks have dual purpose by allowing winery production staff access the catwalk while also allowing tour guides to accompany tour traffic through the same area?  This can be a great marketing tool as well as a great working tool.  Some wineries have successfully placed their hopper to the press along a catwalk so winery workers may rinse and clean that hopper carefully from that catwalk location. The same area can be used for customer tours.

Crush Pad Access Into Building:  Many wineries opt for a lay out that gives access to the tank room from the crush pad.  Often this is the first place the juices or must will go so that layout makes logical sense.  Try and have easy access to the lab, also, so winemakers can easily assess the fruit and corrections, if desired, can be made quickly and easily. 

Crush Pad Access from Outside:  Makes sure to plan for forklift, pallet jack, truck, tractor trailer and drive on traffic by way of tractor and wagon.  Most designs have at least two tractor trailer loading dock stations so one may park a refer semi on the premise to chill fruit as needed.  Another dock may be used to receive fruit or other items by way of tractor trailer.  If possible include a height to load a box truck or pick up with some relative ease and then make sure vineyard tractors and wagons may drive on the crush pad for delivery and perhaps pomace removal from the crush pad.  Many smart winery setups elevate their presses high enough in the air so that pomace may be dumped directly into a wagon or manure spreader to remove that pomace quickly and efficiently with little shoveling. Think this through when deciding on placement of the equipment.

Building Door Access Placement:  Make sure to have at least one people door, with glass panes , and one larger overhead door, with see though/drive through plastic strip doors added.  The overhead door is usually where large tanks are brought in and out of the winery.  New glass shipments, if arriving at this loading dock will need to have access to the building and this door is often the door of choice due to its proximity to the loading dock.

Thresholds:  Make sure to design most of the crush pad, as well as the complete winery building, with minimal raised thresholds in doorways or between floors so as to allow for easy movements of items by way of pallet jack, forklift, dolly etc.

Vineyard Safety Assistance:  If your winery has vineyard operations on the property or close by, review if one may place the potentially required outdoor chemical safety shower on the crush pad in case of emergency.  Check with someone who knows locality regulations to see if this is an option at reasonable savings.  In many cases this same shower may be enough for the winery lab and production needs.

Non-Stationary Equipment:  If your winery has movable equipment make sure to place electric outlets appropriately to service these pieces of equipment.  Plan to be able to crush reds and to press whites simultaneously if possible.  Many pieces of equipment come with short flexible electric cords to them so take a proactive step, before crush, to replace them with reasonable length cords so as to allow various configurations and flexibility in their set-up.  Not each grape with go through the exact same process and the winery will benefit from this flexibility.

Stationary Equipment:  Make sure stationary equipment is placed strategically to allow it to function properly.  Make sure, for example, that a press is placed far enough away from a wall to allow its juice pan to be moved so a pomace wagon may pull underneath for unloading.

Protective Corners:  Wall corners, by way of some form of angle iron type material, to protect from day to day traffic and worker abuse are a great asset.  These areas often have hoses and cords pulled through them and they wear easily.  It is best to protect them. Other areas to need protection may be around mechanical equipment or winemaking gases such as :  Nitrogen, Carbon dioxide, Argon, Liquid Sulfur Dioxide and now Oxygen.  Pilings best protect these areas from larger traffic issues.

Sight Into Cellar:  If possible make sure the winemaking staff can see into the cellar from the crush pad.  Often transfers are being made and a design that allows visual inspection that the transfer is happening as expected is important.  This function can be a simple as glass paned doors as mentioned above.  Other groups have used cameras to assist the winemaking team confirm their valuable juice or wine moves safely from the crush pad to the cellar or vice-versa.

Hose Access to Cellar:  Many wineries now have openings, usually oversized PVC pipes through the walls, of the buildings so small wine transfer lines may be run through them.  This helps eliminate leaving cellar doors open during the crush allowing cold air to escape and more than likely large amounts of fruit fly access.  These may be used additionally for water hoses and electric lines, if unplanned for in the lay out.  I recommend two PVC “sleeves” with plugs at a minimum place about two inches above the crush pad floor with a slight fall back toward the crush pad so wine, juice and water will drain out on the crush pad for proper cleaning/disposal. 

Gravity:  Keep in mind the crush pad placement if gravity is desired to be used and how that feature will integrate into the rest of the structure and winemaking processes.  Must can transfer into the tanks by way of gravity if the crush pad is elevated higher than the tanks.  Other ways to achieve gravity are by way of forklift.  Be sure to work with all winery personnel and designers to make sure these areas are discussed and completely thought through.   The forklift should be the only machine (see below) that is critical in your process.  This machine is typically easily fixed or replaced on short notice.  Always place a few calls before crush to have a plan “B” as close to your potential needs as desired.

Forklift:  Often the most utilized piece of equipment for moving materials during the crush on the crush pad.  Gravity may be achieved easily with a forklift.  Heavy items are also easily moved from one point to another.  Allow plenty of space for the forklift operator to have adequate space to perform these tasks easily.

Over Thinking Your Processes:  Make sure that your crush pad set up is not so rigid that production on the crush doesn’t have some flexibility.  Imagine if one machine, in a series of machines, were to become broken.  Can a crushing set up plan exist to skip that machine or does the complete process come to a halt?  Make sure the winemaker has enough “stage”, if you will, to have several variations in production choices.

Emergency Processing:  Similar to over thinking the process above.  Imagine poor weather has been persistent for many days during harvest.  Projections of more poor weather are predicted and you are rapidly losing your crop and/or quality.  Contract growers and estate vineyard crews are grumbling.  You can’t keep enough labor at your sorting table and/or you choose not to sort.  Can this process or any other parts in your process be skipped, at will, to not loose or jeopardize the complete vintage?  Perhaps a break down occurs with one of the machines.  Can they be worked around or does this bring the complete processing to a stop?

Equipment:  Make sure when planning your winery and crush pad to think through all the pieces of equipment that may needed.  Make sure ample space is provided on the crush pad for these items.  A starter list of equipment may include but not be limited to :  Press; crusher-stemmer; must pump, pump, sorting table(s); shaker(s) and other(s).  Make sure enough power, light, refrigeration, compressed air or other needs are supplied to the crush area to support these selected pieces of equipment.

Non Crush Pad Use:  I always like to think of the winery as a large refrigerator.  I often will move barrels, on racks by way of forklift, from the winery and work with them on the crush pad when possible.  This allows me to access the barrels fully for a quality control check and to work with them for such activities as racking, stirring, topping, adjustments and making blends.  Working on the crush pad allows more efficient use of the winery square footage inside for storage and minimizing utilities associated with the winery power usage.

Crush Pad Café:  Using this term loosely to suggest other activities can happen on the crush pad area.  This could include tables and chairs, picnics and other winery marketing functions.  Small heaters can make the season longer for this type of use.  Winery personnel often want to hide the machinery associated with processing grapes but we must remember customers often find it interesting if it is clean and safely arranged on the crush pad.

Noise:  Be sure to have mechanicals such as HVAC compressors and glycol units placed with enough distance from the crush pad.  This will assist in better employee communication and help with the use of this area for marketing functions.  Often architects and builders see this ample flat area as a place to station these mechanical units.  Be certain to tackle this topic well in advance to make for better planning and smoother operations both at building and during upcoming harvests. 

Future Building:  If the crush pad will eventually be another part of your winery building planned in the future, make sure to include the infrastructure to support those plans into the mechanical aspects of the crush pad.  This could include footers to code where load bearing walls are projected to be constructed, plumbing stub outs, electrical trunk feeds etc.

Regulatory:  Make sure to review your plat and bonded area before moving forward with some of the operations mentioned above.  In many cases wines being handled on the crush pad means that area should be bonded.  In other cases such as social events taxed wine may not be allowed back onto a bonded premise area.  Review the needs of your winery to see if multiple uses may be possible  in one form or another.

Ancillary Thoughts:

• Will a large water tank, elevated high, be mounted on/near the crush pad to fill a sprayer rapidly?

• If production and tour catwalks are used to service both needs simultaneously?  Will rinsing water overspray be an issue?

• Will employees respect the crush pad space by keeping it organized and not parking personal vehicles on it during working hours?

• Will extra unused pallets be stored on the crush pad and if so where?

  Summary:  When thinking of the crush pad it is best to list everything one may want to do in the space.  Try to think in terms in how each operation can be done with the least amount of physical effort, maximizing quality, and employ those ideas.  “How can I do the best possible job with my fruit, wine and marketing with the absolute minimal effort?”  Make it a pleasure to work at your winery structure with ample planning on the crush pad.

Reach Tom by phone: 540-672-0387 or www.winemakingconsultant.com.

2020 The Year of Personalization

Cyndi
Hand using tablet with application icons flying around
Businessman hand using tablet with flying application icons around

By: Scott Moss and Susan DeMatei

According to Forbes, 2020 is going to be the year of personalized marketing. The current opinion is that we are all so bombarded with advertising and emails that we now tune out anything that isn’t specifically relevant to us. When Ad Age asked executives the one thing anyone could do to impact their marketing in the future, a full third of them answered “personalization.” And Conversant Media noted 94% of customer insights and marketing professionals they surveyed listed personalization as either “important,” “very important,” or “extremely important” for meeting their current marketing objectives.

  Back in the 1990’s when the internet and data tracking was young, there was a public outcry concerning privacy and personalization. Individuals were nervous about the newly formed “cookie” technology and didn’t like being tracked online and were suspicious about loyalty cards being scanned at checkout in stores. But now, we take it for granted that when you leave something in a cart you’re going to see an ad for it the next time you log in to Facebook, and we don’t feel creeped out when we buy kitty litter at the grocery store and we get a coupon for cat food along with our receipt.

Age of Customer

  Personalization is everywhere and we’re used to it and we like it – which makes the blanket, non-personalized communications all the more blatantly lazy and unappealing. According to an online Epsilon survey of 1,000 consumers ages 18-64, the appeal for personalization is high, with 80% of respondents indicating they are more likely to do business with a company if it offers personalized experiences, and 90% indicating that they find personalization appealing.

  And, personalization does work. In multiple studies, personalized ads and emails are perceived as more engaging, educational, time-saving, and memorable than mass advertising or emails. Experian reports personalized emails deliver 6x higher transaction rates. And, with new affordable tools, there really isn’t an excuse for mass marketing anymore.

  What this means is that we can no longer rely on mass, generic email blasts to our customers and expect the returns we did in the past. Our buyers are now empowered, and their expectations are high in the messaging and advertising they receive. In the Age of the Customer, we need to be smarter about how we communicate.

  The good thing is, this doesn’t require us to restructure our entire marketing plan. Here are three simple things we can do today to improve the way we interact with our customers on a more personal level:

EMAIL LIST SEGMENTATION

  List segmentation is the quickest way to personalize messages to customers. It can be as simple as creating an email for recent visitors to your tasting room or website purchasers.  Sending these customers, a thank you email 30-days after their visit or purchase is a great way to personalize and engage with a follow-up offer.  You can add a deeper level of personalization if your email provider gives you the ability to insert the customer’s first name in the body copy.

  Additionally, each email can be more personal by modifying the subject line with the purchase location, “Thank you for visiting our tasting room,” or “Thank you or your online purchase.”  Although this may require two email sends, it refines the touchpoint and serves as a reminder of the customer experience.

  Start Crawling: Set up some automatic emails like “abandon cart” and “thank you for visiting.”

  Learn to walk: Take your email list segmentation beyond Wine Club and Non-Club into purchase history. To do this, divide your list into first-time buyers, repeat buyers, and non-buyers/prospects. Then, for every campaign, tailor the message for each. For first-time purchasers give them easy second purchase options similar to their first, for repeat buyers offer them volume or shipping discounts, and for prospects, tell them a little more about yourself and offer a trial package.

  Learn to run: Combine the two. First, set up ongoing automated campaigns (called “drip” campaigns) that remind people they’ve left items in their cart, or that they haven’t logged in to rate or buy a product, or to thank them for an order. Then, take a look at your campaigns in 2020 and brainstorm how you can segment them by purchase or other behavior.

CUSTOMIZED LANDING PAGES

  Sending personalized communications to customers that include a call to action should take them to a page on your website that corresponds to the offer in your email. Keeping the customer journey with our brands consistent is a key component in lowering attrition and increasing sales.

  This requires creating a page template within your website that can be easily duplicated and modified by changing the title, image, or copy to match your outbound communication. This enforces the personalized offer and brand consistency with your customers, while providing a clear path to purchase.

  Brand consistency is the pattern of expression that affects what people think about your company. The more consistent your messaging, the more consistent your branding — whether via words, design, offerings, or perspective. Your brand should build awareness and develop trust and loyalty with customers.

  Start Crawling: For those emails discussing several wines, rather than dumping the clicks at the top of the store page, set up a customized landing page and only include the wines in the email with a header and the offer.

  Learn to walk: For your social campaigns, try a separate landing page with introductory copy about your winery and why they should sign up for your mailing list or like/follow your winery.

  Learn to run: In addition to emails and social media, consider custom landing pages for most initiatives such as pouring events, coupon redemption, Google Ads, and print.

GET TO KNOW YOUR LOYAL CUSTOMERS

  A loyal customer is one that makes repeat purchases rather than switching to a competitor. A loyal customer will be more likely to purchase additional products and recommend your brand.

  Without digging too deeply into your data, a few key metrics can help identify your most loyal customers.  High average order value, buying frequency, and last purchase date is what you will need to start. These metrics can all be found in the customer purchase history of your database. When vetting your data, don’t assume that your best customers are also wine club members. However, if they are not, you may have a missed opportunity.

  After identifying your most loyal customers be sure to nurture the relationship, they are your best buyers for a reason. Knowing what they purchase, how often they purchase, and how much they spend per order will help guide you on when to reach out and with what offers.

  The communication and touches to these customers should be as a personal friend and offers should be presented as gifts. Offering a specially selected “pre-sale” wine or early event access will build continued loyalty. 

  Start Crawling: A handwritten note of thanks for attending an event or a customer referral is an easy way to start and goes a long way to keep your best customers.

  Learn to walk: Identify your top customers and find them on social media. Set up alerts for their posts and like and comment on them as your brand. They’ll be thrilled you care enough about their lives to get to know them.

  Learn to run: Look at your campaigns and give first dibs to your best buyers. Either offer them a pre-order capability or maybe access to the pick-up part a half hour in advance. Realize that discounts aren’t always what they’re after – they want a relationship and time with you.

  The true end result will look like taking your linear annual campaign calendar and splintering it into multiple, smaller, targeted communications that run simultaneously. It takes more work, but it’s worth it.

  Susan DeMatei is the President and Scott Moss is the Director of Operations of WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California. www.wineglassmarketing.com 

Protect Events Hosted at Your Winery with Event Insurance

Cyndi
Wedding Reception Table at Winery Wedding

By now, most winery owners have heard the buzz regarding event insurance.  Sure, you know it exists, but do you really know exactly what event insurance covers and how it can benefit your clients (and you)? Event insurance is a necessity for winery owners looking to keep themselves, and their clients, protected.  We recently talked with Lauren Hernandez, Senior Event Insurance Specialist at Markel Specialty insurance to learn more.

  “It is probably important to first point out that there are two different types of event insurance– event liability and event cancellation,” states Hernandez. 

EVENT LIABILITY INSURANCE

  “Event liability protects the person hosting an event at your facility,” Hernandez explained.  If during their event someone causes property damage to your winery or someone is injured and the host is liable, an event policy will step in to provide coverage.  The coverage is typically primary over any other insurance protection.  That means the event policy will pay first before any other insurance policy.

  Primary liability coverage by event hosts, such as your clients, is preferred by most venues because it helps minimize the associated risks and exposures of owning a winery. “More and more wineries are requiring their clients to purchase one-day event insurance policies for events hosted at their facility because it reduces the possibility of having to pay for an accident that is out of the wineries’ control,” said Markel Specialty’s Lauren Hernandez. 

Wineries must also remember to require the host to name the winery as an Additional Insured on the host’s event policy.  That way, if there is a claim made against your winery due to the actions of the host, the event policy will defend and indemnify you against that claim.  It is also a good idea to require the host’s insurance carrier to be A.M. Best rated “A-” or better.  That way the carrier is financially strong and likely to be around to pay the claim should one occur.

  Examples of claims that would be covered under an event liability policy can range from damage to a furnishings such as couches, mirrors, coffee tables –   even toilets and landscaping from wedding or other event guests.  Event hosts would also be protected if someone slips, falls and gets injured at the facility if the host was negligent.  There are even worse claims that the event host needs protection from when an over-served wedding guest is involved in an auto accident on the way home.  These situations would be covered only if the damage or injury was the fault of your client.  Your business should have your own risk management plan which includes liability coverage to protect you from the hosts wrongdoing.

ADDITIONAL EVENT LIABILITY COVERAGE BENEFITS:

•   Limits vary by insurance carrier, but bodily injury and property damage liability limits typically are up to $1 million per occurrence and $2 million total per policy period.

•   The venue can be named as “additional insured” on the certificate of insurance for no extra cost.

•   Host liquor liability is included for free.

•   Set-up and tear-down is covered (within 24 hours of the event).

•   If the event being held at your facility is a wedding, an event liability policy covers the ceremony, reception and rehearsal dinner (if the rehearsal dinner is within 48 hours of the event).

•   Many policies are primary over any other insurance policy.  This means, if a claim were to occur, the event liability policy would pay out before any other insurance policy and there would be no need to worry about a potential increase in rates with a commercial business policy (as an winery owner) or homeowners policy (as a bride).

•   Protection and peace of mind for a low cost— there are policies available that start as low as $75.

WHY SHOULD YOU REQUIRE EVENT LIABILITY INSURANCE?

  It protects you. One day event insurance policies are typically primary coverage over your commercial business policy for property damage to your facility caused by your client’s negligence. Your facility can be named as an “additional insured” on the certificate of insurance often for no extra cost.

  It protects your customers.  Event insurance is an easy and affordable solution that helps protect your guests from the unexpected – because when your clients are properly protected, so is your reputation.

  It’s an easy solution.  More and more commercial winery insurance policies are requiring one day event insurance for all events hosted at the insured winery.  An event liability policy fulfills this requirement and are easy to purchase and you can direct your client to purchase them online or over the phone in minutes.

EVENT CANCELLATION INSURANCE

  Another popular event insurance option is cancellation coverage.  Being in the event industry, you’ve seen it all. Photographers go missing the day of the event, gifts get stolen, and hurricanes can ruin a perfectly planned event. Event cancellation insurance is becoming increasingly popular because it reimburses the event host for lost deposits and non-refundable amounts if they need to cancel or postpone their special event due to unforeseen circumstances.

  Examples of unforeseen circumstances include:

•   Vendor bankruptcy.

•   Accident or illness of the bride or groom or an immediate family member.

•   Extreme weather (hurricane, named tropical storm, etc.).

•   Military deployment.

•   Event cancellation insurance also covers additional expenses your client may incur to avoid cancelling their event, and pays for other losses or damages such as:

•   Lost wedding rings.

•   Damage to special attire.

•   Vendor no-shows.

•   Lost or damaged photography.

•   Lost or damaged videography.

•   Lost or damaged gifts.

  The pricing for an event cancellation policy is a little more involved as it is based on where the wedding is set to occur and the overall wedding budget. Policies start as low as $130.

Exactly how much event cancellation coverage does each event need?  Look a look at the chart below that outlines coverage limits based on the total overall event budget.

Total Event Budget

$7,500 $15,000 $25,000 $50,000 $100,000
Loss Of Deposits $1,000$1,500 $2,000 $3,000 $5,500
Photography & Videography$1,000 $1,500 $2,000 $3,000 $5,500
Special Attire & Jewelry$1,000 $1,500 $2,000 $3,000 $5,500
Wedding Gifts$1,000 $1,500 $2,000 $3,000 $5,500
Extra Expenses$1,875 $3,750 $6,250 $12,500 $25,000
Professional Counseling$500$650$1,000$1,000 $1,250

WHAT ISN’T COVERED UNDER EVENT INSURANCE

  With event insurance, some claims would be hard to disprove.  Because of this, many insurance carriers will exclude covering certain circumstances because of the potential increased risk of insurance fraud.

  Examples of circumstances typically not covered:

•   Change of heart –Typically if either the bride or groom get cold feet and change their mind during the wedding planning process or are at the altar and decide not to go through with the wedding, this would not be covered.

•   Known Circumstances – Previously known issues that could affect the event (Example: planned medical procedure delays or cancels the event).

•   Lack of Funds – if the event host is unable to pay for the planned event.

•   Non Appearance – if certain individuals (such as parents, the bride, etc.) don’t show up for the event, the show must still go on as this would not be covered.  Polies do not cover cold feet if either the bride or groom change their mind during the wedding planning process or at the altar and decide not to go through with the wedding.

START PROTECTING YOUR CLIENTS

  It’s easy to start protecting your clients (and yourself).  Request free brochures from Markel Event Insurance and provide your clients with an easy & affordable option to protect their special event.  Event liability policies start as low as $75 and can be purchased online or over the phone in minutes.  Visit www.markeleventinsurance.com/grapevine to learn more!

FROM WINE GRAPES TO WOOD GRAINS: COOPERAGES & WINEMAKERS ARE PARTNERS IN GOOD TASTE

Cyndi
2 people sitting down barrels
Photo Courtesy of: Whispering Willow Photography

The artistry of cooperage and winemaking is a genuine friendship.  And like old friends, there is widespread agreement among coopers and winemakers that the success of most wines depends a great deal upon the barrel in which that wine is aged. 

  A master cooper can build a barrel with nothing but hand tools from the log to finished product.  Along with that experience is a wealth of knowledge of the finer points of barrel-making, such as where to source wood as well as how (and why) different woods are used to create different wines. 

  Those who have spent decades in cooperages have fashioned barrels created from woods sourced not only from the United States but also as far away as France, parts of Eastern Europe and even Japan.  While white oak is dominant in the cooperage industry, there are some rare uses of woods that include acacia, chestnut, cherry tree and exclusive species.  Combine the cooper’s experience with that of a winemaker and the result is what wine consumers taste from the glass and feel on the palate.

  With some 30 years of working with wood, few know more about making barrels for wineries than master cooper Russ Karasch, who has taught the industry to his daughter, Heidi Korb. The result is Minnesota’s Black Swan Cooperage, launched in 2009.

  Karasch is responsible for the company’s unique styles of barrels, including a patented HONEY COMB® Barrel, which he invented.  While most of Black Swan’s clients are craft distilleries and breweries, Karasch is a living library of the kind of knowledge upon which coopers and winemakers thrive.  A vital part of that knowledge, Karasch says, is an understanding of different kinds of wood,  their origin and their impact in making multiple types and varieties of wines.

  “Quercus Petraea and Quercus Robur are European Oak, French Oak, Hungarian Oak and German Oak, as well as other countries.  Quercus Alba is the main American Oak.  However, there are many sub-species of Quercus Alba.  It used to be (that) most winemakers preferred French Oak but, as we advance in technology and learn what the wood does and doesn’t do, by toasting and treating the wood in different ways, we are ending up with some phenomenal wines using all the woods.  It used to be if you made red wine, you would use this wood, or white wine you would use (that) wood. We are advancing in knowledge in both wine and wood, so the rules are changing.”

  It is no coincidence that master coopers like Karasch understand the language of winemakers because both professions require a blend of art and science. 

Another case in point is Kentucky-based Canton Cooperage.  Founded in 1933 and acquired in 1998 by Chene & Cie (owners of Taransaud Cooperage of Congac, France), the company benefits from the experience of master coopers who, with a cumulative total of more than 600 years in the business, have a keen understanding of what winemakers need and want.  Canton Cooperage operates from a platform of social responsibility, sponsoring an apprentice program in local schools and partnering with American Forests, a nonprofit organization dedicated to reforestation. 

Enologist Bruno Remy, Sales Manager and Vice President at Canton Cooperage, explains why the wood of choice for most cooperages is oak and why most wineries prefer it.

  “Oak wood is prevailing in the cooperage industry due to its positive physical characteristics to make staves, to give the shape to the barrels and no leaking.  Most importantly, due to its richness in many interesting molecules, the wood will bring structure and flavors to the wines or alcohols.  In addition,    the wood offers a certain porosity to allow oxygen and other gas to pass through the staves, in and out.”

  Remy points out that there are several elements that winemakers take into consideration when choosing barrels and the different woods used to make them. 

  “A barrel should have a positive impact for the use of fermenting or aging a wine.  The choice is coming from the flavors that you will look for, size of the barrel, the percentage of new wood in your final blend, time for aging in the barrels, cellar conditions to store the barrels (temperature, moisture).”

  Black Star Farms, located in Michigan’s Upper Peninsula near the four-season resort town of Traverse City, understands these multiple considerations.  The award-winning, family-owned winery sources  from cooperages that provide barrels derived from American, French and Eastern European Oaks.  Winemaker and Managing Partner Lee Lutes explains the reason for such careful diversity.

  “We use French Oak exclusively for Pinot Noir and Chardonnay, as they simply have an affinity for one another that is time tested and consumer ‘qualified.’  We use two other primary barrel types, American and Eastern European, for other reds, such as our Red House Red, our Merlot or our Cabernet Franc.   These two types of oak tend to have more spice and tannin to them than French, which works well    with these bolder red wines.”

  In the case of barrels made from American and Eastern European Oaks, Lutes adds that the attention to detail used to select these types of barrels is driven by knowing the cooperages that produce them and the source of the actual wood. 

  “We tend to prefer American Oak that either comes from Minnesota or Missouri, as these tend to be tighter grained barrels (from slower growing trees), but with good spice.  The EE (Eastern European) barrels we prefer tend to come from Hungary, as they provide some cocoa and coffee tones that are very complimentary to deeper red wines.  Different coopers source from all of these regions, so there is much to choose from for wood sourcing.  There are specific coopers we prefer, but most in the industry are quite good and make solid barrels.”

  Jeremy Santo, Winemaker for Washington’s Mercer Wine Estates in Yakima Valley, agrees. The fifth-generation winery sources barrels from 14 cooperages.  Santo emphasizes the mutual trust and respect that winemakers and cooperages share.

   “Why do I use the cooperages I do?  The obvious answer is they make amazing barrels.  But the relationship is the most important part.  My favorite cooperages are also my friends.  This allows for a relationship that you can collaborate and ask questions on what’s the best type of barrel for which wine.  The coopers know what they are doing.  They guide me in the direction to make the best wines.”

  Santo echoes a recurring theme shared by Lutes and Remy when it comes to selecting which barrels to use for different varieties and even styles of wines. The type of wood used, size of the wood grain and toast levels are all key factors, he says.

  “I like to use French Oak primarily on higher quality fruit.  French Oak tends to add nice sweetness to the mid-palate of wines without overt oak aromas and flavors.  French Oak allows the fruit of the wine to shine as well as providing sweetness to the mouthfeel.  The American Oak I like also adds a lot of mid-palate sweetness but has more of the roasty, toasty, marshmallow and vanilla characteristics that’s perfect for mid to entry level wines. For higher tier/reserve wines, I lean more towards French Oak (tighter grain wood).  The tighter grain wood allows for longer aging of the wine.  The oak impact is gradual/slower, so the wine can age longer and develop flavors/aromas over a longer period of time.  For reserve quality wines, you have more time to age unlike the $15 to $20 bottle of wine which is made to drink ‘now’.”

  The question of using staves is met with mixed results, despite the lower costs as compared to barrels. According to Remy, staves can be installed in tanks, mimicking the use of barrels, adding micro-oxygenation.  He adds that the actual quality of today’s staves is much higher than, say, 20 years ago, due to technology and the knowledge of how to select better oak wood, how to season the wood and how to apply precise toasting.

  In contrast, Santo opts out of using staves and prefers oak cubes, citing ease of use and faster more, efficient extraction of oak impact of the wine, while keeping aromas and a nice feel on the palate intact.

As for oak barrel alternatives, Santo favors using oak cubes in tanks to achieve more oak impact on lower priced wines.

  Another wood barrel alternative is Karasch’s latest patented invention, called  Squarrels. ®  The play on words describes a customizable, square, steel, stackable barrel, using wood only where it’s needed, saving winemakers time and money.

  Most of these experts agree that over time, a traditional barrel loses its potential to release flavors in wine roughly after four to six years of use.  When barrels become “neutral,” some wineries simply use them to add the breathing factor.  Once retired from winemaking, barrels can be reconditioned for spirits, flooring or even furniture.

Profiling Software Used by the Wine Industry

Cyndi
tablet showing Vinnow
Photo Courtesy of: VinNOW

By: Becky Garrison

While one can still find wine producers who rely on paper ledgers, Excel spreadsheets and other pen and paper methods to manage their business, wine producers are increasingly turning to technology to help them perform these tasks. The proliferation of software explicitly geared to the wine industry has streamlined how many wineries operate. This software can help winemakers better manage a range of functions starting with regulating environmental conditions in their vineyards to performing a variety of eCommerce functions, as well as helping to enhance the consumers’ experience in their tasting rooms.

Microworks Wine Software

  Microworks Wine Software was formed in 1991 to address the lack of technology servicing the wine industry. Currently, this software includes a suite of tools that help wineries manage their direct-to-consumer sales. The software takes complex tasks and simplifies them for efficiency and accuracy. With Microworks Wine Software, all details of sales, customers and inventory are tracked and reported to management so they can execute informed decisions.

  These tools include visitor center tracking, wine club and eCommerce sales, customers and in-ventory, as well as helping with accounting, fulfillment and alcohol compliance. This software suite allows wineries to manage their retail operations by tracking sales data and then issuing re-ports. Tasting room managers can track visitors and staff, and wine club managers can oversee the wine club and its members. Inventory staff can track products across multiple warehouses while managing wine shipments and pickups, and accounting can track and reconcile all sales and inventory activity with complete audit trails. Additionally, marketing managers can track all customer activity, including which wines consumers buy, when they buy their products, how fre-quently they purchase wines and the channels through which they make these purchases.

  When a wine producer purchases the software, Microworks performs an initial onboarding pro-cess. Then apps can be downloaded by the user on devices through the Microworks website, Ap-ple’s App Store or Google Play. Users can take advantage of Microworks certified training ser-vice—a one-on-one instruction for winery employees that ensures they’ll get the most out of what the software has to offer. Online documentation and tutorials are also available.

  The latest release of Microworks Wine Software’s iPad mobile POS offers an offline mode, so users can now access this software without having to connect online. When the software gets used offline, transaction data is stored and then uploaded to the server when the device is back online. Currently, they are working on an automated email system to simplify and tailor custom-er communications to drive more sales.

Sensaphone

  Sensaphone software complements the hardware that measures temperatures, humidity and other environmental conditions in the vineyard. Since its founding over thirty years ago, Sensaphone has transitioned from having its software utilize traditional alarm auto dialers hooked to phone lines to a cloud-based platform. 

Using this software allows producers to know the exact temperature in the fields, and to be alarmed if the temperatures sink too low. In the case of ice wine producers, it allows them to pro-tect the grapes during cold temperatures.

  This software allows wine producers to see the temperature values of their vineyards in real-time, set high and low alarms, and datalog those values. These features monitor environmentally sensitive assets and can be programmed to send emails or text messages to users when those as-sets are in danger. Also, it offers real-time visibility and the ability to datalog values for a com-parison over time.  

  Sensaphone products are easy to install and program. It is a one time purchase with upgrades in-cluded with the purchase price. Also, they feature an app that allows producers to view data from any mobile device.

VineSpring

  For the past eight years, VineSpring has offered winery eCommerce, allocations and wine club management software designed for wine producers who sell directly to consumers. Through this software, wineries can easily manage their club and allocation offerings, saving administrators time, and providing wine club members with tools that are easy to access. Online tutorials allow wineries to maintain the software on their own.

  VineSpring can connect to many third party programs, and natively supports integrations with MailChimp, ShipCompliant and Square POS. Also, they have partners like WineGlass Marketing that have built powerful integrations, including automatic sync with Quickbooks desktop. Mov-ing forward, they look to expand the options for wine clubs, especially surrounding automatic recurring billing.

VinNOW

  Created in 1999, VinNOW software was specifically designed for wineries to manage customer data and purchase histories, tasting room sales, wine clubs, multiple location inventory tracking and wine production. Wineries can use this software on a single stand-alone computer, a tablet, or on a network multi-point of sale operation. Also, as this software does not require a good in-ternet connection, it works well for those wineries located in regions that do not have reliable internet access.

  The software includes a customer management system, point of sale, wine club automation, eCommerce, inventory management, reporting and order processing with QuickBooks, compli-ance, email and shipping integrations and EMV credit card processing. Also, bulk wine tracking and custom crush billing module are available. When necessary, features are added that respond to industry changes, such as the new California District Tax.

  For those wineries offering wine clubs, the software’s one-step wine club processing includes shipping labels for UPS and FedEx. Also, GSO shipments can be tracked through VinNOW. In addition, the software has options for easy email and postcard marketing campaigns. It also inte-grates with QuickBooks desktop or online versions, web shopping providers, and ShipCompli-ant.

  VinNOW can be self-installed and maintained and includes a comprehensive help database. New customers are encouraged to go through the free training program, so they understand the full capabilities of the software. Customer service is available seven days a week.

Winetracker.co

  Winetracker.co is a wine tasting app launched in 2017 that’s available for iOS and Android, as well as the web browser.

  Users snap photos of the wine they are drinking and then use the app’s four sliders to give their personal opinion on the aroma, taste, finish and overall impression of the wine. The app then auto-generates a wine expert score (50 to 100 points) based on these four sliders. Optionally, the user can use “TouchTags” to describe the unique elements they detect in the wine. As they continue using the app, they end up with a visual history of the wines they drink, similar to a “Pinterest for wine.”

  The second primary feature of this app is a multi-person, real-time experience called Group Tasting. Anyone hosting a tasting event, whether a winery, event planner or party host, can create a tasting list ahead of time. At the event, attendees can collaboratively taste the wines together through the app. They can see each other’s wine scores and comments popping up on the screen in real-time. Also, there’s an optional Blind Tasting mode for the Group Tasting feature.

  According to Tony Jacobson, Founder of Winetracker.co, wineries who use the Group Tasting feature increase their wine sales. He ascribes this to the fact that when people taste wines with Winetracker.co, it causes a fuller engagement with each wine they sample. “When they are pondering the aroma, taste and finish of a wine, they get a much better sense of how much they like or don’t like it. This creates a deeper connection with the wine they’re drinking.” Winetracker.co is willing to schedule one-on-one consultations with wineries and event planners to help guide them through the process of creating Group Tasting events.

  In the future, the company plans to launch tasting groups similar to Facebook groups, where us-ers can join and automatically be notified whenever someone adds new wine scores. These groups can be public or private. Also, they plan on adding the ability for users to follow individ-ual people on Winetracker.co. Along those lines, users can automatically receive notifications whenever people they follow taste a new wine. Winetracker.co is also looking to enable wineries to have conversation threads or email conversations with the people who participate in their tast-ing events.

  As technology continues to evolve, expect to see these software companies continue evolving to meet the needs of 21st-century wine producers.

It’s Easy Being Green: New Ideas for Your Operations

Cyndi
facade of a winery
Photo Courtesy of: Morton Buildings

By: Tracey L. Kelley

Sustainability is no longer a buzzword. Perhaps in the winemaking industry, it never really was. Growers frequently enact innovative solutions focused on water conservation, renewable energy and waste-free practices. For example, major producers such as Fetzer Vineyards and Shafer Vineyards adapted green solutions as far back as 1999, and organic growers go back even further.

  The initial costs of sustainable integration—easier for new projects rather than through retrofitting, although some effective solutions are viable for existing estates—provide significant return-on-investment over the life of the buildings and grounds. Now more than ever, it’s easier for progressive vineyards and wineries to take advantage of the latest eco-friendly technology and create properties that reflect their integration with the land, and honor the origin of their products.

  “They know sustainable-building strategies are good for the climate, good for their site and can make a huge financial impact when considered over the life of a building or business,” said Jon Gentry, owner and partner of goCstudio architecture + design in Seattle, Washington. “It’s our intent that projects use limited natural resources responsibly, and each design enriches its site and cultural landscape.” won an American Institute of Architects’ Emerging Firm Award in 2018.

Learning About Potential Solutions

Gentry told The Grapevine Magazine that clients benefit most by consulting with sustainability experts when they’re first curious about this direction, which helps determine site needs, budget and program. “Having solutions thoughtfully considered from the beginning leads to designs that function and look better in the end. These solutions might include natural daylight and ventilation, solar panel arrays, green roofs, locally-produced materials, geothermal heat pumps and striving to use materials that will be low maintenance and stand the test of time,” Gentry said.

  As one example, goCstudio designed several site-specific sustainable strategies for COR Cellars in Lyle, Washington. “The site has strong winds that funnel up through the Columbia River Gorge. It was important to deal with this element, so we created a courtyard building that provided a protected entry and event space,” Gentry said. “We also bermed the building into the natural sloping hillside using the earth’s mass to help insulate the structure. Finally, we created a flat, low-profile roof that allowed the owners to easily install a solar panel array or a built-up green roof.”

  During information gathering, all the terms and concepts for sustainability options might be a surprise. For instance, LEED stands for Leadership in Energy and Environmental Design. LEED is the blueprint to “create healthy, highly efficient and cost-saving green buildings,” according to the U.S. Green Building Council, which oversees the various levels of LEED certification and its rating system. One large step beyond that is the International Living Future Institute, or ILFI. This nonprofit implements even higher green building standards, which include living building certification, petal certification and net zero energy building certification.

  There are varying degrees of net zero status. Dwight Schumm is a senior mechanical engineer and managing principal at Design Engineers in Cedar Rapids, Iowa. His firm designs building systems—heating, cooling, plumbing, power and lighting—and its net zero headquarters is LEED and ILFI rated. The New Buildings Institute, a nonprofit that promotes better energy performance in commercial buildings, has Design Engineers on its 2019 list of only 580 “getting to zero” certified, verified and emerging projects in the entire United States and Canada. The firm designed another net zero building on that list: Indian Creek Nature Center, also in Iowa, and winner of the 2019 High Performing Buildings Technology award.

  “Net zero describes a number of different things,” Schumm said. “A net zero energy building means it produces as much energy as it uses—that would be total amount of all types of energy. So, for example, if you have natural gas consumption, you’d need to produce enough energy to offset that. Net zero electricity is separate from net zero energy, but most rated buildings with this intent are electric, so it’s usually the same thing,” he said.

Net Zero Water Leads Conservation Efforts

  Schumm also noted that properties can strive for net zero water management. A primary concern for vineyards, this means all water used onsite comes from a well, and all rainwater that falls on a property stays there—there’s not a storm runoff removal system. “With our office building, even though much of the area is covered with pervious material so water can infiltrate, we also designed an infiltration basin—sometimes called a bioswale,” he said. “Instead of holding and then moving water away—which often happens around many non-pervious parking lots—this basin is designed to ease water into the ground.”

  Allen Rossignol is president and CEO of Edge Architecture in Rochester, New York. As a certified LEED professional, Rossignol guides his firm to apply green and sustainable practices to winery and craft beverage projects throughout the Northeast, such as Red Tail Ridge Winery in Penn Yan—New York’s first LEED Gold Certified winery—and the FLCC Viticulture and Wine Center. Rossignol provided some additional specifics for water conservation.

  “The amount of water used for cleaning is a large concern for all wineries. We often suggest a metered water system so owners can be aware of their consumption and make efforts to reduce the amount used,” he said. “Further, as wastewater from the winemaking process is large in quantity and has high levels of BOD (biochemical oxygen demand), there are two solutions: 1) hold and treat or 2) septic systems. With the first solution, we successfully reuse the water for irrigation of the vineyards. The second allows natural replenishment of aquifers.”

  Architects and engineers aren’t the only sustainability professionals thinking about water management. Matt Milby is the designBUILD project development manager for Morton Buildings, based in Morton, Illinois. The company pioneered green construction practices with its first building in 1949, and implemented early advances in Energy Star and LEED certification in its industry. “Renewable energy initiatives such as water reduction or advanced heating and cooling systems that also provide cost-savings are important to wineries,” he said. “Also, low-flow water fixtures are easy to find and significantly reduce water usage without sacrificing service.”

Your Partnership With Architects, Builders and Engineers

  If you’re passionate about sustainability, sourcing the right design and building partners are essential to your success. “We encourage owners to first connect with an architect whose work they’re drawn to,” Gentry said. “Architects generally have strong relationships with talented builders that do great work. Make sure it stands up to how they’re presenting their services and that sustainable strategies are built into their processes from the beginning.”

  “An experienced winery architect can help streamline your facility, resulting in better operational flows and a more efficient building,” Rossignol added. For Red Tail Ridge, Rossignol and his team “included the use of a geothermal heating and cooling system that serves the building and the winemaking process equipment, which is unique to the wine industry,” he said. “Natural ventilation and wastewater harvesting are additional features that contribute to the green design.” Combined with high-efficiency windows and skylights to maximize daylighting and a white-reflecting roof to reduce temperature, Rossignol said the winery’s energy efficiency is 40% greater than baseline equivalent buildings.

  “Consumers are looking for more out of their wine experiences. A knowledgeable winery architect can help you create the destination they’re seeking, and a well-designed winery or tasting room is the key to increasing traffic and interest in your winery,” Rossignol said.

  “The absolute, number one thing any user can do to be sustainable is minimize how much energy they use,” Schumm told The Grapevine Magazine. “To incorporate these principles and goals, the earlier you start, the better, so hire engineers and other design professionals with the appropriate sustainability expertise. This is really critical because, in the beginning, you have a blank slate. But too far along in the process, more constraints exist, which limit your flexibility,” he said. However, if you want renewable solutions for an existing facility, Schumm advised getting a feasibility study and an energy audit, and making adaptations where you can.

  Design Engineer’s website has articles featuring real-world numbers demonstrating where to find net zero savings. Not surprisingly, the primary category contributing to energy efficiency is conservation. “Methods such as daylighting, energy recovery for ventilation, good passive solar design, southern exposure with appropriate shading and so on. Then, another quarter of the savings comes from geothermal heat pumps,” he said.

  Rossignol agreed. “Heat recovery systems such as ventilation systems re-circulate warm air, so energy used to heat buildings isn’t wasted. And geothermal has drastically proven to reduce heating energy and, for wineries, in particular, can be integrated with the cooling systems for fermentation,” he said.

  The structure that houses these systems shouldn’t be an afterthought. For example, Morton’s steel roofing and siding has high levels of recycled content and is completely recyclable at the end of its lifespan. “By combining sustainable building practices and our Energy Performer insulation system, many of our buildings are able to achieve national recognition for their efficiency,” Milby said. 

  Morton’s post-frame construction allows for continuous insulation between structural elements. “So plumbing, electrical and HVAC systems are placed between the insulation and in the finished wall or ceiling. This configuration results in no penetration of the insulation and an increase in energy efficiency and overall insulation performance,” Milby said. He added that cool roofing or high-reflective roofing products reduce the “heat island” effect on a building, and lowers energy use and costs. Foundations with concrete lower pier columns eliminate wood contacting the ground and wood treatment and require less excavation and less concrete. Morton even utilizes sustainable sourcing.

  “Long before the U.S. Green Building Council created LEED, Morton Buildings was already applying a number of sustainable building practices. Since 1949, we’ve used timber frames manufactured from renewable wood sources. To conserve energy and natural resources, the materials used in most Morton buildings are manufactured within 500 miles of each building site,” Milby said.  

What’s On the Horizon

  Now that sustainability solutions are more attainable, there are numerous trends to consider for your operation.

  “I think the rise in mass timber structures is very exciting,” Gentry of goCstudio architecture + design said. “We’ve used cross-laminated timber components on a smaller scale—like our renovation of the Substantial space in Seattle. Mass timber structural components require less than one-fourth the carbon emissions to produce compared to steel or concrete components,” he said. “There’s an elemental beauty to cross-laminated timber panels and glue-laminated structural beams that’s compatible with a lot of the winery spaces we love to imagine.”

  Milby of Morton Buildings is thrilled to see the trend of reusing old building materials in new buildings. “It connects the new and the old with really interesting and popular interior designs. At the same time, it’s helping the environment: fewer items put into landfills and less harvesting of materials, such as woods and minerals, along with the impact of not manufacturing new building products,” he said.

  Schumm of Design Engineers is hopeful about energy storage and electricity. “I think thermal and electricity storage is becoming more important and cost-effective. Soon, you’ll have electricity storage onsite to dispatch when it’s most advantageous for you. This trend will grow significantly,” he said. “Additionally, electrify everything. If you’re able to transition from any kind of combustible—natural gas, diesel, anything—to electric, you’re reducing C02 emissions as well as relying on 100% renewable energy.”

“The consumer appetite for environmental design and interest in learning about the process of beverage making has pushed wineries to evolve into more of a destination than ever before, and it’s been really great to see how this industry embraces this new role,” said Rossignol of Edge Architecture.