February 14, 2015

 

            Boston Wine Expo, 2014 crop, wine market challenges, BEV NY, tax breaks, more awards, another White House wine, the new look, a sweet deal, and more from New York wine country.

  

             Cheers!          

             Jim Trezise

Snow...What Snow?  The Show Must Go On!

 

                 Boston is a tough, resilient city, and this weekend's Boston Wine Expo is just the latest example--a collection of determined vendors and passionate wine lovers who refuse to let the snow get them down.

 

                 Thanks to Governor Andrew Cuomo's "Taste NY" program orchestrated by the Department of Agriculture & Markets, for the first time ever there are 25 New York wineries at the Expo, which combines both trade and consumer elements and is one of the top shows in the country.  The New York presence is hard to miss, with huge I Love NY and Taste NY banners high above the 25 wineries from Long Island, Brooklyn, Manhattan, the Hudson Valley, the Thousand Islands, and the Finger Lakes regions.

 

                  I had the pleasure of conducting a sold-out tasting and seminar on "The New World of World-Class Wines: New York"  featuring a dozen different wines from different regions which have won Gold medal or 90+ scores. It's a great opportunity to spread the word about New York State's status as Wine Enthusiast's Wine Region of the Year, which was prominently advertised at the booths.

 

                  Participation in the Boston show is very timely because the Bay State finally opened up to direct-to-consumer wine shipments and is right next door to New York State, where Massachusetts license plates are often seen in winery parking lots.  This is just the latest example of the Taste NY program providing marketing opportunities which our industry otherwise would not have. Every winery I spoke with said they would not have been able to afford participating in this show without the support of Taste NY.

 

                 

Small Crop, Market Challenges                               
 
                   Those in the grape and wine business know that it's full of challenges and risks, and the current situation provides some good examples.
                   
                    To no one's surprise, the 2014 grape crop was down from the previous year, by 9% to 188,000 tons, with the value of utilized production down 7% to $69.4 million.  But some perspective: The 2013 crop was the largest on record, so things are not nearly as dismal as they might seem; in fact, a smaller 2014 crop provided a good balance in terms of supply and demand.
 
                    And among fruit crops, grapes fared quite well compared with apples (down 11% in volume), peaches (14%), strawberries (16%), tart cherries (17%), sweet cherries (40%), and pears (52%).  Only blueberries improved (up 66%), but that was over the smallest crop in history the year before.  It's all a vivid reminder that Nature is in charge.
 
                   And out in the market, the consumer is in charge.  This week the Wine Market Council, the foremost organization for research on trends in wine consumption, hosted its annual conference to divulge the latest as presented by WMC President John Gillespie and Danny Brager of The Nielsen Company.
 
                  Among many valuable insights was that the explosion of craft beers is primarily cannabalizing market share from the large traditional brews, but may also be eroding interest in inexpensive "entry level" wines below $10, particularly among the younger wave of "Millennial" consumers who have less discretionary income than their older brothers and sisters due to changes in the American economy following the 2008 crash.
 
                  This is not a doomsday scenario for wine, just the latest example of the fact that the only constant in life (and wine) is change.  Therefore, we must adapt to survive.  A couple decades ago the Zinfandel grape in California was on life support until Sutter Home created a "White Zindandel", spawning a totally new category of sweet pink wine called Blush which exploded in the market and has now given way to Dry Rose.  In New York and nationwide, wine has certainly been the original farm-based craft beverage, but with its continuing success it's no surprise that entrepreneurs are now adopting the model for craft beer, spirits and cider.  Imitation is the sincerest form of flattery!
 
                 Even growth within the wine industry, a great thing(!), has its own set of challenges.  Once again, a core of pioneering entrepreneurs invested their money and dreams in the risky business of wine, building a following for their brands and interest in their regions.  Seeing their success, others then followed but in many cases have not made a commensurate contribution to the common good, instead benefiting from the existing consumer base.  In other words, the number of wineries has increased substantially, but the number of tourists, while up also, has grown more slowly.  We need a bigger pie.
 
                 In my view, the creation of other craft beverages and the growth within the wine industry are opportunities, not problems. We are generating more investment, jobs, tourism, taxes, and quality of life.  Now we just need to be creative and resourceful in successfully adapting to change.  We've done it before, and we can do it again.
                                                                         
  
Free Run...                             
 
                     B.E.V. NY is a not-to be missed conference orchestrated by Cornell Cooperative Extension on February 26-28 at the R.I.T. Conference Center just off Exit 46 of the Thruway (I-90) near Rochester.
                     The acronym stands for Business, Enology, and Viticulture, the three topics covered over three days by expert speakers from Cornell University, Cooperative Extension, and other institutions.  It's also a great networking opportunity to connect with industry colleagues, and on Thursday we'll have our "Unity Luncheon" to recognize people who have made major contributions to our industry's success.
                     For further information and to register, visit http://events.cals.cornell.edu/bevny2015.

 

                     Tax exemptions are the latest benefit to come from Governor Andrew Cuomo's support of the farm-based craft beverage sectors, as contained in his budget proposal. 

                     The value of wine used for tastings at the winery, as a promotion and marketing tool, have been exempt from sales tax (applied to actual sales), and that would now apply to beer, spirits, and cider tastings as well.  For all beverages, the exemptions would also apply to off-premises tastings at festivals and other events.  In addition, there will be tax benefits applied to packaging such as bottles, corks, capsules and labels. 

                     While this measure is contingent upon a final budget (usually completed in late March), the New York State legislature has also been very supportive of our collective industries, so we are hopeful it will become law--another example of a positive business climate that stimulates investment and growth.

 

                    Casa Larga Vineyards recently racked up some nice ratings at Beverage Testing Institute for its 2013 Muscat Ottonel (92 and Best Buy), 2012 Hungarian Oak Chardonnay (92), and 2013 Reserve Riesling.

                   Meanwhile, Wolffer Estate 2012 Perle Chardonnay was served at a luncheon of President Obama and German Chancellor Angela Merkel, a perfect way to wind down after an intense press conference.

 

                     New look for the Wine Press (Harvesting ice wine grapes) is the idea of our fabulous graphic designer, John "Book" Marshall of Rochester, who is incredibly creative and great to work with.  He has designed virtually all of our graphics, and is always coming up with new ideas, like making the look of the Wine Press more seasonal--so you'll see more changes coming up.  If you ever need a great designer, we'll gladly put you in touch.

 

                   Valentine's Day weekend means Wine & Chocolate events throughout the State, as many wine trails lure people out of their homes and into the regions to have some fun in February.  These events have helped extend the tourist "season" from a few months in summer to a more year round flow, even in months that used to be dead.  It's all part of the economic engine: wine.

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