Vineyard & Winery Management

May/June 2014

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w w w. v w m m e d i a . c o m M a y - J u n e 2 014 | V I N E YA R D & W I N E RY M A N A G E M E N T 2 7 he last two years have seen a remarkable influx of outside capi- tal into Washington state, with the sudden interest involving some of the country's largest and most established wineries. Long anticipated by some in the industry, it seems that Washington's time may have finally come. Over the years, the state has not been a stranger to outside investments. From Germany's Langguth family establishing vineyards and a riesling-focused winery in the 1980s to Tuscany's Antinori family partnering with Chateau Ste. Michelle in the 1990s, there has long been interest in Washington winemaking from outside groups. In fact, in 2008 interest in Washington seemed to be reaching a turning point. That year Napa Valley-based Crimson Wine Group purchased significant acreage in the Horse Heaven Hills area of eastern Wash- ington and announced plans for a new win- ery. Sonoma County's Foley Family Wines purchased a stake in Walla Walla Val- ley's Three Rivers Winery. Ascentia Wine Estates was established and quickly added a series of Northwest brands. But after the economic downturn, noth- ing was the same. Ascentia would close up shop in 2012 after selling off its brands. Plans for Crimson's new Washington win- ery would be shelved for five years. Even with a Columbia Crest wine tak- ing the top spot in Wine Spectator's annual Top 100 list at the end of 2009, it seemed that Washington's big moment would have to wait. GALLO COMES KNOCKING T h e s u r e s t s i g n t h a t interest in Washington was once again alive was the purchase of Columbia Win- ery and Covey Run Winery by Modesto-based E. & J. Gallo in June 2012. Gallo, the largest wine producer in the world, boasts more than 60 brands and 5,000 e m p l o y e e s . R i c h K r a n - zmann, vice president and general manager of the Premium Wine Business at + There has been an extraor- dinary spike in interest in Washington state with the purchase of wineries, vine- yards and land by outside groups. + This interest appears to be related to the rise of Wash- ington's brand, increasing pressures in California and recovery from the recession. + Investments are anticipated to make Washington wines more available nationally and internationally. + Increased plantings and additional outside interest are also expected. AT A GLANCE NORTHWEST WATCH SEAN P. SULLIVAN Washington state is vast and varied, providing ideal growing conditions for many grape varieties. Northwest TippingPoint Outside investment suggests that Washington's time is now

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