Vineyard & Winery Management

November/December 2016

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9 0 V I N E YA R D & W I N E RY M A N A G E M E N T | N o v - D e c 2 016 w w w. v w m m e d i a . c o m ing, a decision that was upheld in federal court. After the land near Paso Robles had been turned barren, neighbors alerted authorities, who then placed a stop order on the work. As word spread in the community, some local restaurants removed Justin wines from their lists as a form of boy- cott. As this was picked up on social media and in some news outlets, wine club members started cancel- ing subscriptions. Then, something surprising hap- pened: Wonderful Company did a volte-face. Just a few days after the controver- sy broke, the Resnicks sent an open letter (as a press release that was later reported on in San Luis Obispo's local paper, The Tribune). They said they were "asleep at the wheel" when it came to managing the 380-acre Sleepy Farm Road property in west Paso Robles. Their local manage- ment, they wrote, showed "unacceptable lapses in judgment" for which they felt "ashamed and are sorry." They wrote that they'd develop a plan with county officials to reverse the grading, pre- vent erosion and replant oak trees. They also will donate the entire 380-acre parcel to a local nonprofit for conservation. Furthering the (belated) policy of openness, the president of Justin and a corporate spokesperson for Wonderful met with members of the editorial staff at the offices of the San Luis Obispo Tribune. In that meet- ing, they said they'd plant 5,000 oak trees on their properties in San Luis Obispo County, and have decided not to remove any more trees for vineyard development. There's a lot that goes into plan- ning and developing a new vine- END POST TYLER COLMAN his past June, to the west of Paso Robles, chainsaws buzzed, earthmov- ers graded and 100 acres of hillsides were left without so much as a fig leaf for cover. An unspecified number of Val- ley Oak trees were removed, which is particularly poignant since they not only provide habitats for many types of birds and other fauna, but also can live for 500 years. What was replac- ing this woodland? A vineyard. The land is owned by Justin Vine- yards and Winery, now a part of Wonderful Company, a diversified holding group whose other assets include Landmark Vineyards, Fiji Water, Teleflora, POM Wonderful juice, Wonderful almonds and pista- chios and Halo oranges. Stewart and Lynda Resnick con- trol the privately held company. Forbes pegs their net worth at $4.2 billion. Given their large agricultural holdings in California, it's not sur- prising that they control a large amount of water rights. Mother Jones took a look at their water rights and wrote that they "control more in some years than what's used by the residents of Los Angeles and the San Francis- co Bay Area combined." In a state plagued by drought, them's fightin' words. Indeed, in 2014, there was a rally outside their Beverly Hills mansion. Controversy also followed in the marketing of POM juice, where the company's advertisements claimed that the "antioxidant superpower" offered protection against heart and prostate maladies as well as effects similar to Viagra. The FTC shot down these claims as deceptive market- yard, and this incident offers a rich case study. After scoping an appro- priate site for the desired variety, the developer must make a plan and file appropriate permits. Some of that may involve public com- ment, and that's an important part of the process: If neighbors aren't on board with the plan, they can make vineyard development difficult, or — as happened in this case — stop it completely. Regulations like the California Envi- ronmental Quality Act (CEQA) certain- ly add time and expense to vineyard development. But, as the saying goes, you can't fight city hall. Simply pretending regulations don't exist may get the vineyard developer in hot water with fines, reputational damage or even ceding control of the property, as the Resnicks voluntarily did. And when it comes to crisis man- agement, own up to mistakes. As I first heard mention of the Resnick let- ter, I thought it would be one of those mealy mouthed apologies that flow from a mindset that it's better to beg forgiveness than ask permission. The folks at Justin still have a lot of work to do to regain trust. But, taking them at their word, the Resnicks really ate crow and seem to want to make the situation as right as they can for all involved. Maybe decades from now, the birds in the replanted trees will be singing their praises. Tyler Colman, author of the wine blog Dr. Vino, teaches wine class- es at New York University and the University of Chicago, and wrote t h e b o o k " W i n e P o l i t i c s : H o w Governments, Environmentalists, Mobsters, and Critics Influence the Wines We Drink." Comments? Please e-mail us at feedback@vwmmedia.com. (Opinions expressed in this column do not necessarily reflect those of Vineyard & Winery Management.) All Politics Are Local

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