Beverage Dynamics

Beverage Dynamics Mar-Apr 2016

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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www.beveragedynamics.com March/April 2016 • Beverage Dynamics 67 A s consumers continue to increase their per-bottle spend, California's fi ne wine rivals to the north are nibbling away at the leader's market share. The Golden State's dominance of U.S. production slipped to a new low in 2014, according to the Wine Institute, punctuating a decade-long de- cline from 90% to 85%. California's wine business is healthy and growing steadily, of course. Other states are sim- ply growing faster, particularly in the quality-fo- cused Pacifi c Northwest. Washington and Oregon couldn't be more different from a winemaking perspective. Eastern Washington's high desert vine- yards enjoy a warm, dry climate not unlike that found in Spain or Argentina. Western Oregon's vineyards are clustered in cooler coastal valleys kissed by fog and ocean breezes, in conditions more akin to those of northern France or New Zealand. In early days, Washington earned its wine stripes by delivering delicious entry-level Merlot and Riesling, while Oregon proved its met- tle on the fi ne-dining circuit with luxury-priced Pinot Noir. But what these northwest wine regions share, along with up and coming neighbors in Idaho and British Columbia, is a combina- tion of stylistic diversity, quality potential and progressive value that is resonating with consumers. WASHINGTON STATE Washington, the country's second-largest wine producer, has seen its wine harvest double in size in the last decade, and all indicators point to growth. Brett Scallan, who serves as vice president of marketing for the state's largest wine company Ste. Michelle Wine Estates, sums up the hopeful outlook: "Washington has outperformed the total wine category the past 10 years running, and grew at three times that rate in 2015," he says. "Washington appeals to an affl uent, well-educated consumer demographic, while consistently surpassing other production areas in terms of acclaim and value." One obvious reason for Washington's wine boom is its low land and labor costs. Dollars sim- ply go further in the high desert of Washington's interior than in coastal California, whether you're a vintner or a consumer. "Economically-speaking, Washington is ac- cessible," says Chris Sparkman, who currently serves as chairman of the Washington State Wine Commission. "Bay area real estate prices BY MARNIE OLD Abacela's estate vineyard planted to Tempranillo Northwest Wine Diversity A s consumers continue to increase their per-bottle spend, A s consumers continue to increase their per-bottle spend, A s consumers continue to increase their per-bottle spend, A s consumers continue to increase their per-bottle spend, A California's fi ne wine rivals to the north are nibbling A California's fi ne wine rivals to the north are nibbling A California's fi ne wine rivals to the north are nibbling A California's fi ne wine rivals to the north are nibbling A away at the leader's market share. The Golden State's A away at the leader's market share. The Golden State's A away at the leader's market share. The Golden State's away at the leader's market share. The Golden State's dominance of U.S. production slipped to a new low in 2014, dominance of U.S. production slipped to a new low in 2014, dominance of U.S. production slipped to a new low in 2014, Michelle Wine Estates, sums up the hopeful outlook: "Washington has outperformed the total wine category the past 10 years running, and grew at three times that rate in 2015," he says. "Washington appeals to an

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