NVR Logo
The World in a glass
Sunday, March 26, 2006
Save and Share Share
Today, the Register launches a new weekly feature with news, tidbits, items of interest and occasionally opinions from the world of wine in Napa Valley and beyond.

A tax
Sonoma County winegrape growers will vote on a self-imposed tax that will raise about $1.2 million to help promote the county's wine industry. The vote will set up a commission to fund marketing, promotion and research and will be conducted via a mail-in ballot in May.

Mendocino growers and wineries also are seeking to establish a similar commission, but they're require special legislation because wineries also want to participate and current law doesn't allow that.
To put the idea in perspective, Napa Valley growers invest about $4 million annually in promoting the region's wine.

And attacks
Demand for wine from France has dwindled, and vintners there are getting testy. More than 100 winemakers went on a rampage in southern France recently, attacking negociants and emptying tankloads of wine. They're protesting the lack of government assistance (read that "subsidies") in the face of a glut, and also are attacking what they call "the growing wealth of the negociants." (Just think if they had direct shipping laws to contend with.)

As a result of the wine glut there, values of vineyards have declined. One grower whose property is for sale said he could have received twice as much five years ago. Prices in the Beaujolais region have dropped 50 percent, while even the area around Burgundy has shown declines of as much as 20 percent. (Imagine the heartburn they must feel when they read about Napa Valley vineyard prices.) Most of the vineyards affected by the decline are those with lesser quality grapes - the top estates are still getting big prices. A bottle of 2003 Chateau Petrus is listed at $750, while the 2000 Petrus is currently priced at $1,800.

Iraq war opposition costly - to France

Speaking of France's wine industry, that country's opposition to the Iraq war cost the industry about $113 million, according to Decanter.com, a British online wine magazine.

"According to the National Bureau of Economic Research, at its peak, the boycott resulted in a 26 percent slump on weekly sales with 13 percent lower sales in the six months following the U.S. invasion of Iraq," the Web site said.

But one French vintner said it wasn't quite that simple. "I would like to pinpoint a drop in French wine sales to something as specific as opposition to the Iraq invasion, but unfortunately it is more complicated than that," Anthony Barton of Chateau Leoville Barton, told Decanter, "Statistics are like a bikini - they give you the idea, but hide the details." (To which we say, thongs for the comparison.)

Selling directly to retailers

A case went to trial this week in Washington state, where Costco is suing the State Liquor Control Board to allow it and other retailers to purchase wine directly from out-of-state wineries. Currently, the laws allow in-state wineries to ship directly to Washington retailers, but out-of-state producers must sell through wholesalers.

A federal judge last month handed down a ruling that said either everyone ships directly or no one does, a ruling similar to the one the U. S. Supreme Court made last year when it said states must either allow direct shipping to consumers by everyone or no one. Last month the Washington senate voted to approve direct sales from out-of-state wineries, but the bill has not been signed. The Costco case is looked upon as a test of the constitutionality of the law.

Too much Kiwi wine?

On the heels of last week's Register report on New Zealand wines comes a report from Kiwiland that the largest wine crop in that nation's history is expected. Harvest is underway now (fall in the Southern Hemisphere is spring here) and growers report the crop could be as much as 15 to 30 percent larger than last year. Quality is reported very good, also - one grower was reported to have said, "It will certainly be our best vintage in a couple of years." But, according to the New Zealand Herald, one winemaker doesn't think talking about the large crop isn't a good idea. That could drive prices down, according to Kim Crawford, who said buyers asked him, "There is obviously going to be a surplus, an oversupply, so can you make us a cheap wine?" (Did they really mean inexpensive? There's a difference.)

New Zealand wines exported to the U. S. have grown rapidly in the past 10 years - from 7.44 million liters in 1996 to 21.124 million liters last year. And, if you read the Register's March 16 story, you'll understand -- the wines are good! (Look for more imports from New Zealand.)

On the other hand, early reports from the other major Down Under producer, Australia, indicate that the crop there will be smaller than last year, possibly as much as 15 to 20 percent lower. (But don't expect fewer imports from Australia.)

Personnel notes:

Allen Balik has been appointed president of WW Shipping Solutions, an American Canyon firm that provides shipping services to wineries. Balik will continue to operate Club Essence, which provides a variety of services for businesses and individuals, including wine country tours, speakers, educational programs and wine-related gifts.

Steve Test, winemaker at Merryvale Vineyards since 1998, will leave the winery June 30 to begin his own winemaking project, producing small quantities of wine and consulting with other wineries. A replacement will be named at a later date.

Richard Batchelor has been named winemaker at Hall Wines, succeeding Mike Reynolds, who was named president. Batchelor, a New Zealand native, had been assistant winemaker.

Send news and information about the wine industry to jheeger@napanews.com.
No comments posted.
Comment Guidelines
The goal of the story comments section at NapaValleyRegister.com is to have an open, thought-provoking, civil community forum for all issues.
What gets your comment posted?
• Staying on topic
• Keeping your comment to 300 words or less
• Avoiding name-calling
• Addressing your comments to the message rather than the messenger
What gets your comment deleted?
• Personal attacks
• Derogatory remarks
• Name-calling of any sort
• Going off-topic
• Hate speech
• Racially-insensitive comments
• Implying guilt of a subject in a crime story before there is a court verdict
• Posting e-mail addresses
• Posting comments of a commercial nature
• POSTING WITH ALL CAPITAL LETTERS
• Linking multiple comments together with "to be continued..." to get around the 300 word limit.
The fine print
- Comments are either approved or denied. We do not edit comments.
- You are welcome to modify and resubmit a denied comment.
- Comments may take several hours to be posted.
- Comments posted are those of the writer, and do not necessarily reflect the opinion of NapaValleyRegister.com, its employees or its parent company.
- Do you have information on a story? Please go to our virtual newsroom to send us a news tip.
- If you feel a posted comment has violated our guidelines, please contact online@napanews.com or add a comment indicating you have an issue and our moderators will review the comment in question.
Search:
Web Search Powered
By Yahoo! Search
Napa Valley Register on Facebook
Copyright © 2009 Napa Valley Publishing, a member of Lee Enterprises, Inc.
Terms of Use | Privacy Policy