June 1, 2013

             Direct shipment sales up in volume and value, more New York wineries open, New York agriculture leads northest, Taste NY at PGA, and more from wine country.

             Cheers!          

             Jim Trezise

               Direct sales of wine to American consumers once again grew in both volume and value in 2012, and now exceed the value of U.S. wine exports, according to a report by ShipCompliant and Wines & Vines.

               Total volume (3.18 million cases) increased by 7.7% over 2011 and 18% over 2010, while total value ($1.46 billion) increased by 10% and 24%, respectively.  California consumers account for 32% of all shipments, and the top five states (CA, NY, TX, IL, FL) represent over 60% of all shipments.  (We do not have specific figures for New York, sorry.)

               Three types of red wine (Cabernet Sauvignon, Red Blends, Pinot Noir) account for over 50% of total volume shipped, with Rose, Sparkling Wine, and Pinot Noir registering the greatest increases.  Napa represents 49% of total value shipped, in part because of the average bottle price ($56.87), while Washington State strongly increased total shipments as well as total value (up 40%) due in part to a 19% increase in bottle price.

                Ten years ago, wine wholesalers did everything they could to prevent wineries from shipping directly to consumers, and to prevent consumers from having a choice, wanting instead to preserve their legislated monopoly.  But the "Granholm" decision of the Supreme Court provided a major impetus for states like New York to finally do the right thing--even though it still remained a pitched battle until the very end.  Many thanks to Pete Saltonstall, John Martini, and Julie Suarez of New York Farm Bureau for fighting the good fight.

                Not only has direct shipping given wineries more options and increased sales, but it has also prompted some national wine magazines to finally cover wines from New York (and other small winery states) because now their readers may buy them.

             As of this week, the number of licensed wine producers in New York is 337, with 14 licenses pending, meaning we'll soon top 350.  That doesn't include 10 satellite stores or 48 branch stores (with two pending) where consumers may also buy New York wine--as well as New York beers, spirits, ciders, and foods.

              The newest wine trail, the Upper Hudson Valley Wine Trail, is a good example of new wineries popping up in unlikely places like Saratoga and planting the extreme cold hardy Minnesota varieties like Frontenac and Marquette.  Victory View Vineyard, owned by Gerry and Mary Barnhart, is a small operation on a hill that overlooks the Hudson River and Saratoga National Historical Park.  Gerry is also President of the new trail, which includes about a dozen wineries from Lake George to Ballston Spa and will have its first event (wine and cheese) on June 15 and 16.

              We commissioned an industry economic impact study in 2008 which showed our industry's total benefit to the state exceeds $3.76 billion annually.  That's old data, and surely now conservative.  So we're going to do another one using 2012 data, and also include the economic impact of the other farm-based craft beverages (beer, spirits, cider).

               Meanwhile, our friends at Farm Credit East have published the latest data on the "Impact of Agriculture, Commercial Fishing, Forestry and Related Businesses in Six Northeastern States".  The total farm gate value of $8.9 billion and 130,579 jobs grows to $17.2 billion and $175,294 jobs when you add in farm and local community impact, and further to $71.3 billion and 378,665 jobs when processing activity is factored in.  New York is by far the largest of the six states, with a total economic impact of $38.4 billion and 196,000 jobs, or more than half the totals. 

               This year at New York Farm Day in Washington, hosted by Senator Kirsten Gillibrand on September 17, the New York Wine & Grape Foundation, Farm Credit East, and New York Farm Bureau are teaming up to produce a flash drive with tons of information about New York agriculture which all attendees will receive along with their souvenir wine glasses.  That way, Washington policy makers and staff will have immediate access to lots of information and answers to better represent New York agriculture's interests.

           The PGA Championship, the last "major" golf tournament of the year, is being held in August at Oak Hill Country Club in Rochester, and the thousands of visitors from around the world will get a taste of New York at two "Taste NY" tents featuring New York wines, beers, spirits, ciders, and foods.  More than 200,000 visitors from 47 different countries are expected to attend the event, which also attracts a worldwide television audience.

            The New York Wine & Culinary Center will coordinate a concession tent selling New York beverages and foods, while a "Taste NY" Experience tent will showcase a multitude of New York products of many kinds.  The New York Wine & Grape Foundation is, of course, heavily involved in the promotion.

             "Taste NY" is a program created by Governor Andrew Cuomo to better market and promote New York State products.  Wine, beer,cheese, yogurt, fruit, and many other products from nearly 100 different agricultural enterprises will be offered to the tournament attendees. The "Taste NY" presence at the PGA is just one of many events or programs planned, including "Taste NY" stores, to create greater awareness and sales for the State's agricultural bounty.

               Separately, this week the New York State Senate and Assembly passed legislation promoting New York-grown products in restaurants.  The "Dine: Pride of New York" bill is an offshoot of the longstanding "Pride of New York" program of the New York State Department of Agriculture & Markets.  It's great to see our public officials catching the wave of the locavore/locapour movement by creating programs and incentives to feature New York's own products.

             Niagara region wineries received some nice accolades, including Arrowhead Spring Vineyards being recognized by the Niagara USA Chamber as its "Rising Star", while nearby Black Willow Winery owner/winemaker Cynthia West-Chamberlain was named Agricultural Entrepreneur of the Year by the New York State Small Business Development Center. 

              Lake Erie Wine Country and the Finger Lakes region were both recommended by Mother Nature Network among seven undiscovered American wine regions that are environmentally friendly, beautiful, and full of fine wines.  Meanwhile, a great new book (American Wine: The Ultimate Companion to the Wines and Wineries of the United States, by Jancis Robinson and Linda Murphy) includes great coverage of the New York wine industry, including many photos.  To see the Table of Contents, read a sample chapter, and order a copy, visit www.ucpress.edu/9780520273214.

              Montezuma Winery and Hidden Marsh Distillery near Seneca Falls has received a TripAdvisor Certificate of Excellence award, which goes to only the top-performing 10 percent of businesses listed on TripAdvisor and requires an overall rating of at least four out of five.  Located at the edge of the huge Montezuma National Wildlife Refuge, since 2001 the winery has offered fruit, honey and grape wines, with spirits added more recently.  

                 "Wine is a chemical symphony."

                                                                   --Dr. Maynard Amerine