Vineyard & Winery Management

January-February 2013

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MICHELLE LOCKE But the ruling, which came in response to a petition by the European Commission, was opposed by the California Association of Winegrape Growers (CAWG). It cited concerns related to the TTB regulation that allows wines labeled as ���American��� to contain up to 25% grapes from outside the United States. ���We don���t think consumers are aware that when they buy a wine that ostensibly is marked as a U.S. product, that quite a bit of that product can be of foreign origin,��� said CAWG president John Aguirre. ���Allowing vintage dating makes the product more attractive to consumers, and gives it a competitive advantage.��� Aguirre noted that France requires that wines labeled with the ���France��� appellation must be made with 100% French grapes. CAWG has a petition pending before TTB that would require the same for American-appellation wines. Robert Deford, owner and president of Boordy Vineyards in Maryland, sees the new vintage dating ruling as a good move. In addition to growing its own grapes, Boordy brings in fruit from nearby states, in addition to New York, California and Washington. ���We are talking about importing grapes grown in the U.S., not out of the country, and we are supporting American agriculture,��� Deford said. ���I feel very strongly that this practice should not be penalized by withholding the vintage date. It���s good for the consumer and good for the farmer.��� Boordy will start adding vintage dates with its next round of label printing. ���It will probably not make a big difference in terms of sales,��� Deford said, ���but I think it makes a big difference in terms of consumer perception or at least consumer awareness of what they���re buying.��� Labels for American appellation wines from Boordy Vineyards in Maryland were previously prohibited from including a vintage date. w w w. v w m media.com ian profits? The click-and-sip world of online wine shopping got a lot bigger with news that Amazon has entered the market. The Seattle-based mega-online retailer announced in November 2012 that customers can order up to six bottles of wine and have them shipped to them for a $9.99 fee. Service is available to California, Connecticut, Florida, Idaho, Illinois, Iowa, Nebraska, Nevada, North Carolina, Oregon, Washington, Wyoming and the District of Columbia, ���with more coming soon,��� Amazon stated in a news release. Amazon tried twice before to sell wine online, investing with Wineshopper.com in 2000, and abruptly pulling out of a second effort in 2009 with then-partner New Vine Logistics, which has since gone out of business. The problem with selling wine online, as every vintner knows, is the patchwork of regulatory barriers across the country ��� although those have lessened somewhat, thanks to the efforts of direct-to-consumer shipping proponents. Amazon officials declined to discuss terms, but people familiar with the program confirmed reports that the wineries will handle the logistics of sales and are being charged a 15% referral fee, a cooperative fee of $49 for every $350 in sales and a monthly subscription fee of $39.99. The latter two fees will be waived until the end of January. Among the wineries participating in the Amazon site is the Francis Ford Coppola Winery in Sonoma County. ���We���re really looking at it as an extension of our existing e-commerce business,��� said Marlow Daniel, the winery���s pub- Jeff Carroll of ShipComlic relations director. ���This was an pliant hopes the Amaopportunity to partner with Amazon zon program will be and try to reach out to their millions beneficial to wineries. of consumers.��� Also participating is J Vineyards & Winery, confirmed Stacy Bennett, the winery���s vice president of digital marketing. The Family Winemakers of California trade association has closely followed Amazon���s progress. ���Small wineries need as much advantage in the marketplace as they can get in building their Internet marketing efforts,��� said association president Paul Kronenberg. Success will depend on individual winery business models and how well they mesh with what Amazon may offer, he added. Also keeping an eye on developments was Jeff Carroll, vice president of compliance for ShipCompliant, which provides compliance management software to wineries shipping to consumers. ���The direct-to-consumer shipping channel is growing and is helping wineries build better relationships with their customers and build brands in a way that they haven���t been able to do before,��� he said. ���I hope the program works out well for Amazon, for the wineries that participate, and for consumers.��� J a n - F e b 2 0 13 | V I N E YA R D & W I N E RY M A N A G E M E N T 15

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