Vineyard & Winery Management

July/August 2013

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MICHELLE LOCKE GO CANADA! Wine exports from the United States hit a new dollar record last year, which capped a three-year upward trend. This was obviously good news for vintners across the country. While much of the export excitement continues to focus on emerging markets such as China, a much bigger market for U.S. wine was another "C" country – Canada, our neighbors to the north. Wine sales to Canada totaled $434 million in 2012, up 14% from the year before, according to figures released by the Wine Institute (WI). Much of the growth was driven by the wildly popular red blends that appeal to younger consumers, said WI trade director Rick Slomka. It turns out there's a bit of a paradigm shift going on, as wine continues to capture palates in what had historically been more of a beer nation. A recent report from Statistics Canada found that beer has dropped from a market share NEWS FLASH ASEV Selects Best Papers The American Society for Enology and Viticulture (ASEV) in Davis, Calif., has announced the 2013 best enology and viticulture papers. They are: "Foliar Application of Abscisic Acid Increases Freezing Tolerance of Field-Grown Vitis Vinifera Cabernet franc Grapevines" and "Profiling the Yeast Communities of Wine Fermentations Using Terminal Restriction Fragment Length Polymorphism Analysis." Both awards are sponsored by J. Lohr Vineyards & Wines. New Director for Washington State Wine Michaela Baltasar, formerly the senior communications manager for Jackson Family Wines in Santa Rosa, Calif., has relocated to Seattle to assume the role of communications director for the Washington State Wine Commission. Wine Buyers Influenced by Sustainability Two research studies by San Francisco-based Wine Institute indicate that the ecofriendly attributes of wine can be an important consideration for consumers and trade. Some 34% of wine consumers surveyed said they consider sustainability when making wine purchases. Also, 66% said they identify sustainability at the point of purchase via labels and in-store information. For study details, see www.wineinstitute.org. Franciscan Estate Names Winemaker Marla Carroll has been named winemaker for Franciscan Estate Winery in St. Helena, Calif. She joins Director of Winemaking Janet Myers and winemaker Jay Turnipseed. Carroll has worked at Franciscan for seven years in a number of roles, including enologist and assistant winemaker. Mueller Winery Returns to Healdsburg Mueller Winery has sold its Starr Road winery facility in Windsor, Calif. The sale does not include the Mueller brand, wine inventory or grape contracts. Production is moving to a new state-of-the-art facility in Santa Rosa in time for the 2013 harvest. The Mueller Tasting Room will now be located in downtown Healdsburg. For more industry news briefs, visit the News Flash page on V&WM's website: http:// www.vwmmedia.com/magazine/web-exclusive1.asp. 12 V I N E YARD & WINERY MANAGEMENT | July - Aug 2013 Wine is gaining market share over beer in the Canadian market. Photo: Thinkstock of 50% by dollar value in 2002 to 44% in 2012. Wine, meanwhile, rose from 24% to 31%. As published in The Globe and Mail of Toronto, the report – for the fiscal year ending March 31, 2012 – showed beer and liquor sales rising 3% from the previous year. Beer was still No. 1, but wine sales showed a 5.9% increase in dollar value versus 0.6% for beer and 3.9% for liquor. Reflecting the red-blend resurgence, red wine accounted for 57% of wines sold, a jump from the 48% reported in 2002. "I'd say the emergence of premium red blends is the single largest wine story in Canada over the past 18 months," said Phil Klein, E. & J. Gallo Winery regional vice president for the Americas. The growth has been driven by red blends from California, of which Gallo's Apothic Red is the market leader. The trend started in Quebec and moved across Canada quickly from the end of 2010 to now, Klein said, with blended wines the single largest "varietal" sold in Canada. Of that segment, premium red blends ($15 and up) are the largest category, growing at 19%, according to the February 2013 National MAT w w w. v w m m e d i a . c o m

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