Memorial Day weekend always dramatically changes the ambiance in wine country from laid back to bustling, which is how it normally stays through Columbus Day weekend in mid-October. While everyone is concerned about gas prices putting a damper on wine country visits and actual spending, a few winery owners I spoke with this week said both are up so far this year, in some cases significantly.  Let's hope that continues.

               Next Saturday's "Winestock NY 2011" at Three Brothers Winery and Estates in Geneva will certainly attract more than the thousand people who attended last year.  The event from noon to 7 pm includes dozens of Finger Lakes wineries, food, artists, and eight bands playing on three stages.  The event is sponsored by the New York Wine Industry Association, Waterloo Container, Wegmans, and other businesses, with tickets available at Wegmans and participating wineries.     

 More New York Gold 

           New York wineries won nearly 100 medals at the Great Lakes Wine Competition including 11 Gold, 44 Silver and 41 Bronze.

              Gold medals went to Hazlitt 1852 Vineyards 2008 Cabernet Franc, 2010 Semi-Dry Riesling, and White Stag; Keuka Spring Vineyards 2010 Vignoles; Lakewood Vineyards 2009 Dry Riesling and 2009 Long Stem White; Locas Vineyards 2009 Blues, 2008 Cabernet Franc Reserve, and Miss Chevious; Merritt Estate Gewurztraminer; and Wagner Vineyards 2008 Vidal Blanc Ice Wine.

               In the super-competitive International Wine & Spirits Competition based in London, Belhurst Estate Winery 2009 Dry Riesling and Thirsty Owl Wine Company 2009 Vidal Blanc won Silver (Best in Class), with additional Silvers going to Casa Larga Vineyards 2007 Fiori Vidal ice Wine; Macari Vineyards & Winery 2008 Cabernet Franc and 2007 Bergen Road; Thirsty Owl 2010 Pinot Gris and 2009 Dry Riesling. 

Direct-to-Consumer Sales Grow

         Sales of wine directly to consumers grew 12% to a record $3.4 billion in 2010, and winery sales managers project equal or even stronger growth in 2011, according to a survey just released by VinterActive.  The survey included responses from 290 wineries in 34 states, including many in New York.

            "VinQuest 2011: U.S. Consumer Direct Wine Sales Trends" found double-digit growth from wineries of all sizes in all regions, through the specific channels varied.  Sales at tasting rooms were essentially flat (2% increase), while sales growth was very strong in direct mail (12%), wine clubs (19%), events (37%), and online (38%).  Only telesales declined (down 9%).

              Consumer direct sales are increasingly important to the vast majority of wineries in New York and across the country, generating the largest profit while simplifying the transaction and building brand awareness and loyalty in the incredibly cluttered wine market. That's why 99% of U.S. wineries reported selling directly to consumers in 2011. 

             While direct sales currently account for less than 20% of total U.S. wine sales, it is the most widely used sales method at U.S. wineries, and 62% of wineries surveyed project consumer direct as their fastest growing sales channel in 2011.  The median winery sold $640,000 of wine directly to consumers in 2010, or 55% of their total case volume.

              While tasting room sales grew the least in percentage, they still dominate in dollar volume ($1.7 billion), followed by wine clubs ($827 million), internet ($451 million), and winery events ($192 million).  Direct sales represent more than 50% of total sales at wineries producing fewer than 10,000 cases, and sales ranged from $127,000 for the smallest producers to more than $10 million for the largest survey respondents.

               As in previous surveys, the largest barrier to online sales is the cost and complexity of complying with interstate shipping and tax regulations.  Some things never change....

New Wineries Coming Soon

             The New York wine industry just keeps on growing, from Long Island to Chautauqua and many places in between including Herkimer!  There are roughly a dozen wineries-to-be which are either waiting for their licenses or finishing up their facility but are expected to open in the next few months.  One of the newcomers is in Cazenovia, which will make Madison County the 51st county (of 62) with a winery; another is a late 1800's renovated church which I can't wait to see.

               In all cases, it means new investment, new jobs, new tourism, and new taxes for the State of New York.  The wine industry is truly an economic engine.