Dutcher Crossing: An Idyllic Slice of Heaven

winery in front of a wine trail

By: Nan McCreary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

poured wine smoking

By: Cheryl Gray

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

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

Vacuum Barrier Corporation

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

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

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

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

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

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

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

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

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

O2 N2 Site Gas Systems

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

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

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

Chart Industries

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

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

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

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

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

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

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

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

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

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

Sweet Vines of Tennessee

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

By: Hanifa Sekandi

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

Viticulture in the South

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

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

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

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

Easing Into Ripe Times

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

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

Tennessee Wineries  — a Southern Blend

Highland Manor Winery

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

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

Grinders Switch Winery

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

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

Arrington Vineyards

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

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

The Supply Chain Executive Order and Review

The Executive Order and Review

Following the guidance Executive Order 14017, signed by President Biden on February 24, 2021, many federal agencies have begun the process of reviewing their supply chain. The guiding purpose of the Executive Order is to make America’s supply chains less vulnerable to disruptions such as pandemics, cyber-attacks, and economic competition and less reliant on foreign supplies, workforces, or stockpiles instead of domestic industry and businesses.

The Executive Order directs numerous federal agencies, in coordination with the Assistant to the President for National Security affairs (APNSA) and the Assistant to the President for Economic Policy (APEP) to identify vulnerabilities in important US supply chains and subsequently develop policy recommendations and plans to ensure the security and resilience of those supply chains going forward.

The Executive Order mandated review of two categories of supply chain vulnerabilities. First, a 100-day review of four sectors: semiconductor manufacturing and advanced packaging; high-capacity batteries; critical minerals and strategic materials, and pharmaceuticals and active pharmaceutical ingredients.

Second, a one-year review of supply chains for six “industrial bases”: defense; public health and biological preparedness; information and communications technology; energy; transportation, and agricultural commodities and food products.

Following these reviews, the APNSA, APEP, and the relevant agencies will submit reports to the President detailing their findings and actions taken in advancement of the Executive Order as well as recommendations to further strengthen the supply chain.

What Next?

At present, no firm rules or regulations have been set forth, but the expectation is that there could be a mixed bag of additional compliance “burdens” (e.g., trade restrictions) in some instances and “incentives” (e.g., tax credits, federal procurements) in others. While the Executive Order and subsequent regulatory changes likely will not have the power to directly modify the supply chains of private companies, possible regulatory changes could, as a practical matter, necessitate modification. Such regulations might include imposition of additional tariffs to push companies away from certain suppliers, additional import requirements on certain goods from certain countries, inclusion of certain foreign companies to the Entity List, or modification of federal procurement regulations to favor domestic goods (as already seems to be happening with the expansion of Buy American domestic content thresholds).

Federal agencies have begun issuing public notices and requesting public comments to assist in the evaluation of relevant supply chains. For example, the Department of Commerce requested comments (submission deadline of November 4, 2021) regarding the information and communications technology supply chain. Other agencies, including the Department of Transportation, Department of Energy, Department of Agriculture, and Department of Defense have also issue requests for public comment.

Companies participating in any of the supply chains identified by the Executive Order should consider participating in these requests for public comments as these supply chain review will more than likely lead to policy, regulatory, and compliance changes. Additionally, companies will want to keep an eye on the regulations that develop from these reviews in order to adequately prepare for additional compliance standards and capitalize on possible new business opportunities.

 

headshot of Dan
Dan has practiced law in Silicon Valley since 1977. The Firm’s practice is limited to regulatory law, government contract law, and international trade law matters. Dan has received the prestigious “Silicon Valley Service Provider of the Year” award as voted by influential attorneys in Silicon Valley.He has represented many very large global companies and he has worked on the massive US Government SETI (Search for Extra Terrestrial Intelligence) project as well as FOEKE (worldwide nuclear plant design certification), the Olympic Games, the first Obama town hall worldwide webinar, among other leading worldwide projects.

Dan has lectured to the World Trade Association, has taught law for UCLA, Santa Clara University Law School and their MBA program, lectured to the NPMA at Stanford University, and for the University of Texas School of Law.

Dan has lectured to various National and regional attorney associations about Government contract and international trade law matters. He has provided input to the US Government regarding the structure of regulations relating to encryption (cybersecurity). He has been interviewed about international law by the Washington Post, Reuters and other newspapers.

He is the author of four books unrelated to law, one of which was a best seller for the publisher, and of dozens of legal articles published in periodicals, technical and university journals distributed throughout the world. He serves as an expert witness in United States Federal Court regarding his area of expertise.

Symposium Reveals Novel Uses for Precision Viticulture

man operating a drone over a vineyard

By: Annie Klodd, University of Minnesota Extension 

What role do you see precision agriculture playing in the world of viticulture, and how do we get over the growing pains to make it a reality? These were the key questions addressed during a recent Precision Viticulture Symposium co-hosted by the American Society of Enology and Viticulture and the National Grape Research Alliance

 

For many grape growers, precision agriculture may be a totally new concept, while others have been using it, knowingly or unknowingly, for a while. It is an ever-growing field of technology where growers map data across their fields to manage crops more profitably and efficiently. Think soil moisture, plant vigor, pests, and soil nutrient content. 

  According to Rob Bramley, symposium speaker and a Senior Scientist at CSIRO in Australia, precision agriculture is built on the principle that land is variable. If a variable landscape is all managed the same, some areas will be profitable and others will operate at a loss.  

Concord Vineyard Data Layers

  So instead of managing an entire vineyard the same way, what if a grape grower could cater their management to the needs of each part of the vineyard? This is called “precision viticulture (PV).”  

  For example, a trained grower or advisor can create a vineyard map showing spatial variation in vine health, identifying low-performing areas that need extra attention and cutting costs on areas that need less help. 

  Simple maps can be created by plotting data that the grower collects on the ground, like from soil samples. In more advanced applications, maps incorporate data collected by satellites, drones, or sensors mounted to tractors and harvesters. 

  Research on PV has come a long way since the first juice grape yield maps of the 1990s. Still, it has a long way to go. Grape growers are just now starting to adopt precision agriculture, which is already widely used in row crops like corn and soy.    The symposium speakers expressed that as the research advances, PV should become increasingly accessible to the average grape grower. To dig into how this might look, let’s start with some of the most promising applications of PV: 

How is Precision Viticulture Being Used Today? 

  Today, researchers, consultants and farmers use app-based mapping software to create maps of important crop traits like soil qualities, yield, pest pressure, and plant health. Here are seven emerging or “future” applications that the symposium speakers highlighted for vineyards specifically: 

  Vine Vigor: Mapping vine vigor is one of the more basic uses of PV but does require access to drone or satellite imagery. Several companies offer drone and satellite imagery services for the ag sector.  

  Growers can use vine vigor maps to identify problem areas and improve canopy management.  

  Variable Rate Fertilizer & Pesticides: I have yet to meet a grape grower who thoroughly enjoys spraying. Growers could use nutrient and pest maps to apply only what is needed, and to vary what is applied across the vineyard based on need. This could be achieved by mapping vine vigor, soil qualities, foliar nutrient concentrations, and weed populations, among other things.  

  Mapping soil and foliar nutrient data is one application I would recommend for growers who want to dip their toes into PV – it is relatively easy to collect that data, and many of us do already. I talk later about app-based platforms you can use to plot data. 

  Early Pest Detection: Dr. Katie Gold, Assistant Professor of Grape Pathology at Cornell University, is using hyperspectral imaging to detect locations of key pests early so growers can target them more efficiently and effectively. 

  Dr. Gold leads a study that uses NASA’s AVIRIS satellite imagery to detect early signs of grapevine leafroll virus in California vineyards. She hopes this technology becomes accessible to growers and aims to expand it to other grape diseases like powdery mildew. 

  Precision Irrigation: Vinay Pagay and Bruno Tisseyre both discussed exciting research on precision irrigation. That is, mapping vine water status across the vineyard to apply irrigation by zones rather than applying the same amount of water everywhere. Pagay’s group is researching the use of crop water status index and drone-mounted NDVI sensors for this purpose. 

  Estimating Yield: Mason Earles and Jaco Fourie both spoke about ongoing research on image-based yield estimation. They are deploying sensors through the vineyard to capture images of clusters, to estimate fruit density throughout the vineyard and create yield estimation maps.  

  If the researchers are able to train the sensors to accurately recognize clusters and cluster size, this could enable more efficient yield estimation for larger vineyards where yield estimation by human crews is too time consuming. 

  Split Picking: Bramley described one intriguing use of PV, for “split picking.” That is, pricing fruit based on quality in particular areas of the vineyard. By mapping differences in fruit quality, anthocyanins, malic acid, and YAN across the vineyard, growers could identify their highest quality blocks and sell that fruit at premium prices. This is not currently a common practice. 

  Bramley argued that California wineries grade the fruit once it comes in, making split picking less relevant. However, I would also argue that it has potential in many wine-growing regions of the US where grading practices are not standardized. I could see it playing a role in Minnesota, where I am based. 

  UV light for disease control: Dr. David Gadoury, plant pathologist at Cornell University, has worked extensively to develop a method to control pathogens with UV light exposure during the night. Thanks to ongoing research efforts, this practice has come a long way over the last 30 years or so.  

  Currently, Gadoury’s team is finding excellent suppression of powdery mildew and mites using nighttime UV exposure. They have also had good suppression of sour rot based on one year of data. Their data also suggests that UV treatment can suppress downy mildew in a mild year but not a severe year.  

  They have found no evidence of harmful effects of nighttime UV application on the vine, and have found that it is effective across multiple specialty crops. Read more about this project here. 

  My personal take-home message was that UV technology is very promising, and equipment manufacturers will need to get on board in order for it to be widely adopted. 

Where are we on Adopting Precision Viticulture? 

  Are you feeling intrigued but don’t know where to begin? You’re not alone. Not too many grape growers have embraced PV yet. 

  But many feel that this is just the beginning of PV adoption, and some of the speakers cited strong interest in their regions. They feel that the potential for these tools is strong, because of their ability to improve vine management.  

  Most of the applications described above are not yet fully available, as researchers work to develop them. However, some applications such as yield maps, soil fertility maps, and vine vigor maps are entirely possible for growers willing to give them a try.  

  One major obstacle is finding the expertise and technical support to make it happen, and learning how to map data on your vineyard. Fortunately, Researchers are also working hard to develop tools that will allow growers to more readily use it. 

  Terry Bates from the Cornell Lake Erie Research and Extension Lab suggested that PV developers work on creating free, user-friendly web-based platforms that growers can use to get started. He and other speakers argued that working with PV-trained vineyard advisors would make this easier as well.  

  Bates works on the Efficient Viticulture Project and the myEV Platform (my.efficientvineyard.com), where growers can create accounts and collect, organize, map and interpret their own vineyard data. The goal is to make it easy and accessible. 

  According to Bates, many growers shy away from PV because of the learning curve. Bramley argues that avoiding PV due to the learning curve would be a “missed opportunity” for America’s grape industry.   

  I will add that some PV applications are much simpler than others, and growers can start small while learning the ropes. 

  Bates also recommends growers have a goal in mind for what they want to use PV for, rather than just generating (or paying for) cool vineyard imagery and then wondering how to use it.  

  For instance, if a grower is struggling with soil fertility, they could make it a goal to use PV to refine their nutrient management practices. They could do this by mapping soil and foliar nutrient data and vine vigor across the vineyard, and then altering their fertilizer regimen based on the needs of each zone. As emerging technologies become more accessible, such as the aerial-based nitrogen mapping described by speaker Alireza Pourreza, growers could combine that with their ground-level data to improve their level of information. 

  Ideally, they could find a consultant trained in precision agriculture to help them get rolling. 

  One of the biggest takeaways I got from the symposium was that trained viticulture consultants and perhaps even some Extension professionals will likely play a big role in helping growers implement PV in the future.  

  According to Bruno Tisseyre of L’institut Agro in France, trained advisors are key because they can become experts in the technology. They could provide the equipment and interpret the PV data it generates, allowing growers to focus on all of the other aspects of vineyard management. 

  The Precision Viticulture Symposium was co-hosted by the American Society of Enology and Viticulture and the National Grape Research Alliance. Funding was provided by USDA’s National Institute of Food and Agriculture, and sponsored by Turrentine Brokerage. The full speaker lineup can be found at https://graperesearch.org/asev-ngra-precision-viticulture-symposium/ 

The Cleaning Life of a Winemaker

woman inspecting tanks

By: Tom Payette, Winemaking Consultant 

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

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

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

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

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

Water (non-chlorinated) 

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

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

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

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

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

Physical Cleanliness 

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

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

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

Chemical Cleanliness 

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

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

Quaternary Ammonium 

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

High pH Cleaners 

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

Low pH cleaner 

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

Ozone 

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

Sulfur Dioxide 

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

Iodine / Chlorine 

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

Paracetic Acid  (PAA) 

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

Hot Water 

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

Steam 

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

Alcohol 

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

Sanitation versus Sterilization 

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

Summary 

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

The Role of Cover Crops in the Vineyard

crops in a vineyard

By: Becky Garrison   

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

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

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

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

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

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

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

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

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

How to Choose Cover Crops  

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

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

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

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

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

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

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

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

Additional Resources  

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

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

Changes to Gift Tax Exemption Laws Could Affect Winery Estate Planning

estate planning worksheet

By: Kemp Moyer and Sachi Danish, BPM LLP 

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

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

Estate and Gift Tax Law 

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

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

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

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

• Limit valuation discounts between family members. 

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

• Limit duration of GST trusts. 

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

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

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

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

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

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

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

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

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

Winery Ownership Estate Planning 

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

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

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

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

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

The Importance of Review Sites

By: Susan DeMatei 

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

Four Reasons You Should Care About Online Reviews 

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

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

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

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

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

Vendista Chart

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

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

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

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

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

Tools to Help 

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

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

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

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

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

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

Demetria Estate Winery: All-Natural Wines from Grape to Glass

2 wine glass

By: Nan McCreary 

When John and Sandra Zahoudanis founded Demetria Estate near Los Olivos, California, in 2006, their goal was to honor John’s Greek heritage and family tradition of farming and careful stewardship of the land. To achieve that objective, they committed to farm sustainably and biodynamically, using phases of the planets and the moon to govern farming practices.  These practices, and a natural approach to winemaking, have led to highly-rated wines and a reference to Demetria Estate as “one of the hidden jewels in California.” 

  While biodynamic farming principles are not new—the Old Farmer’s Almanac has been recommending “planting by the moon” since 1792—Demetria Estate was one of the first in Santa Barbara County to embrace the concept. “Biodynamic winemaking is our passion,” the Zahoudanis’ son, Alexis, who now runs the winery, told The Grapevine Magazine.  “We are trying to put back in the earth what we’ve taken out, and we’re doing it in the most natural way possible while incorporating the lunar calendar.”   

  Demetria, named for John and Sandra Zahoudanis’ daughter, sits on 213 picturesque acres above Foxen Canyon in the Santa Ynez Valley. The altitude of the property ranges from 1,100 to 1,450 feet, making it one of the highest in the appellation. When the Zahoudanises purchased the hillside vineyard from the well-respected Andrew Murray Family, it was planted exclusively with Rhône varieties. Today, the family farms 43 hillside acres of Rhône grapes, including Viognier, Marsanne, Roussanne, Picpoul Blanc, Grenache Blanc, Cinsault, Counoise, Grenache, Syrah, and Mourvèdre, plus small plantings of Tempranillo and the Greek Assyrtiko. Demetria also produces Burgundy-style wines, sourcing organic Pinot Noir, Chardonnay, Pinot Blanc and Pinot Gris grapes from select cooler-climate vineyards in the Santa Rita Hills and Santa Maria Valley. 

  From the beginning, the Zahoudanis family has farmed sustainably and biodynamically. Their first winemaker, Michael Roth, now of Lo-Fi Wines in nearby Los Alamos, was a big proponent of natural wines, as is current winemaker Ryan Roark.  Philippe Armenier, the renowned biodynamic expert from the Rhône Valley, guides Demetria’s farming practices. They treat the vineyard as a living organism, with soil, plants and animals working together to promote health and vitality. Farming is entirely organic, meaning no chemical fertilizers, herbicides or pesticides. For example, sheep on the property eat weeds and fertilize the soil during late winter and early spring when the vines are dormant. Demetria also plants cover crops, including nitrogen-rich legumes and daikon radishes, to protect the topsoil and nourish the vines. The major pest, according to Zahoudanis, is leafhoppers, which are controlled using natural predators such as ladybugs and organic, biologically-approved pesticides, including sprays containing fermented and herbal teas. 

  From pruning to planting to harvest, vineyard tasks are determined by a biodynamic calendar, which categorizes days into four groups—flower, fruit, leaf and root—based on lunar cycles and astrological signs. Each day also coincides with one of the four elements of nature—earth, water, fire and air. Root days, for example, are when the moon travels through any of the Earth signs (Capricorn, Taurus, Virgo) and are best for planting, replanting and pruning. Fruit days are associated with the Fire constellations (Aries, Sagittarius, Leo) and are ideal for harvesting crops. For some, planting according to lunar cycles is somewhat of a mystery, but proponents consider this an attempt to harmonize with nature to maximize yields and keep the vineyard sustainable.   

  “Our consultant, [Armenier], works with our vineyard manager and vineyard foreman to care for the vines,” Zahoudanis said, “and I let the wines speak for themselves. The fruit is really gorgeous and expresses itself beautifully as a more natural product.” 

  Demetria applies the principles of biodynamics and sustainability in the cellar as well as in the vineyard. “We know our vineyard well, and we know when to pick so we don’t have to manipulate the fruit,” Zahoudanis said. “We use minimal sulfur, and we don’t add acid or tannins. We don’t want a chemical experiment going on in our winery.”   

  Demetria relies on native yeasts to start fermentation and does not inoculate for malolactic fermentation. Zahoudanis said they filter their wine simply by racking and will only apply fining if the tannins are too harsh, and then they will use bentonite, a natural product. Ultimately, he explained, the goal is to “produce wines that are complex, while being food-friendly and approachable, not just for the connoisseur, but for the everyday wine lover that lives in all of us.” 

  Demetria has achieved that goal. Its wines—and its beautiful Mediterranean-style winery with panoramic views of the vine-covered hills—have received enthusiastic reviews from critics and everyday consumers alike. Recent awards include 2016 Rosé – “Year’s Best Rosé! Wine & Spirits Magazine; 2014 “Cuvee Sandra” Pinot Noir – 94 points, Wine Enthusiast and 93 points, Wine Spectator; 2014 “North Slope” Syrah, 91 points, Wine Enthusiast; 2013 Estate Chardonnay (Santa Barbara County) – 93 points, Vinous; and 2013 “Cuvee Matia” Grenache – 91 points, Wine Advocate. 

  Even with a barrel full of awards, Demetria is not resting on its laurels. Since establishing the Demetria Estate, the family has been changing the composition of the vineyard, uprooting much of the once-predominant Syrah, and planting grapes such as Mourvèdre to produce more interesting blends. A favorite is Cuvee Constantine, a red blend styled after the famous Chateauneuf du Pape reds made from Grenache, Mourvedre, Cinsault and Syrah. Another favorite is Cuvee Papou, which includes Grenache Blanc, Marsanne and Roussanne. The name “Papou” is Greek for grandpa and honors Demetria’s founder John Zahoudanis, a grandfather who passed away in 2020. Demetria also releases a sparkling version of the Cuvee, produced at Rack & Riddle in Healdsburg, California. “We really like the sparkling wine,” Zahoudanis said, “but it’s not our forte.  It’s too time-consuming.  We might as well give our grapes to folks who know how to make it.”  

  Demetria has recently begun producing a wine from the Rhône grape Picpoul, which is gaining traction among wine aficionados all over the world. Beton Blanc (beton means “concrete white” in French) is 95% Picpoul Blanc and 5% Assyrtiko and is aged and fermented in concrete eggs. “Concrete is a neutral vessel, so you don’t get flavors like you do from oak barrels,” Zahoudanis said. “But because it’s semi-porous, you do get oxygenation, which enhances the minerality that already exists in a lot of varietals.”   

  According to Zahoudanis, wine can be made quickly in concrete eggs: the Beton Blanc is ready five months after harvest and can be bottled by February. 

  Currently, Demetria makes 6,000 to 9,000 cases of wine annually. “We can’t plant more because we’re limited by geographical constraints,” Zahoudanis said. “We sell some of our fruit, so we could scale that back and produce 10,000 cases, but generally, we’re good where we’re at(sic).”    

Zahoudanis does envision planting more.  

  Tempranillo, a grape that’s doing exceptionally well on his property. Whatever he endeavors to do, if the past is prologue, the future looks very bright for Demetria Estate. “We’re just glorified farmers,” he said. “We’re beholden to Mother Nature, and yes, winemaking requires knowledge and art, but it’s not rocket science.  If you don’t over-manipulate it, you can make very good wine.” 

To learn more about Demetria Estate, visit…www.demetriaestate.com