May 26, 2015

 

             The New York Wine & Grape Foundation: 30 Years Young

 

             Cheers!          

             Jim Trezise

 

The First 30 Years...

 

                 Thirty years ago this month, the New York State Assembly and Senate each unanimously passed a bill to help the struggling New York grape and wine industry.  A few months later, the late former Governor Mario M. Cuomo signed the bill into law, creating the New York Wine & Grape Foundation.

 

                 Its major purposes: To centralize and coordinate programs of promotion and research in support of the New York grape, grape juice and wine industry; to provide marketing support of the products both within and beyond the state; and to foster cooperation and collaboration within the industry.

 

                 When the Foundation was created, there were 54 wineries in 14 counties.  Today there are over 400 wineries in 59 of New York's 62 counties.  An industry that was once regional is now statewide.  Brooklyn, Manhattan, and Queens even have wineries!

 

                  New York wineries welcome more than 5.5 million tourists annually who spend over $400 million. From just one wine trail in 1985 there are now 19, more than in any other state.  New York wines are now sold in many others states and foreign countries.

 

                   The grape and wine industry, with its huge value-added multiplier effect, generates some $5 billion annually in economic benefits for New York State, including 25,000 full-time equivalent jobs, $1.14 billion in wages, $553 million in winery sales, $52 million in grape sales, $71.6 million in grape juice sales, and $408 million in State and local taxes paid.  

 

                   Once an economic disaster, our industry has become a gold mine for the State economy.

 

                    Our goal: "To have the New York grape and wine industry recognized as a world leader in quality, productivity, and social responsibility."

 

                                                     The Evolution

 

                     The Foundation was born out of an economic crisis.  In the late 1970's and early 1980's, vineyards were being abandoned, wineries were closing, and tourists were flocking away from regions which had become ugly and had few attractions. 

 

                     Why?  A combination of major corporate transitions among large wineries; cheap subsidized wines from abroad; a surge in imported wines; changing consumer tastes in wine; and the reluctance of many New York grape growers and wineries to change what grapes they grew or wines they made.

 

                      It was the perfect storm.

 

                      And it did not go unnoticed.  On a Friday afternoon in October of 1983, when I was President of the New York Council, a small organization of grape growers and winery owners, I got a phone call in my tiny Penn Yan office.

 

                     Governor Mario Cuomo had read a front-page article in the New York Times about our industry going down the tubes.  He called then-Commissioner of Agriculture & Markets Joe Gerace and said he wanted a solution on his desk by noon on Monday.  Commissioner Gerace called me and said he needed a solution in Chautauqua by noon on Sunday.  I called my wife and said I wouldn't be home for dinner, or probably breakfast, or much of the weekend.

 

                     I pulled an all-nighter, and on my IBM Selectric, with White Out at the ready (no word-processing computers in those days!) created a white paper for an integrated solution that included (1) New York wine in grocery stores (as well as liquor stores) as a way to immediately expand the demand for grapes; (2) a comprehensive "winery deregulation" bill that would eliminate unnecessary and burdensome regulations while offering many new marketing opportunities like multiple satellite stores, cooperative winery wholesaling, bottle sales at not-for-profit farmers' markets and the State Fair, and much else; (3) New York wine tastings in liquor stores; and (4) creation of a centralized organization for promotion and research supporting the New York grape and wine industry.

 

                       On Sunday morning I drove several hours to the White Inn in Fredonia, hand-delivered the document, explained my ideas, and received a decidedly neutral response.  My drive home was very long.

 

                       Months later, in January, a front-page Times piece reported that the Governor was proposing a phased-in version of  New York wine in grocery stores (as well as liquor stores), as I had proposed.  (The ultimate compromise was wine coolers--long story for another time.).

 

                       Through a protracted lobbying struggle, with New York Farm Bureau at our side, we got the "cooler" bill passed, as well as the winery deregulation and tasting bills.  Those were the true priorities because they had immediate impact when we needed it, and in fact the cooler bill rescued many grape growers by creating vast new demand for grapes at a time of swelling winery inventories combined with a record crop.

 

                       The Foundation bill, a long-term strategy, would simply have to wait until 1985.

 

                                                     The Beginning

 

                       It began as a nightmare.

 

                       The law specified that (1) the Foundation include table grapes, grape juice, and wine (no problem, as the idea is to promote New York grapes overall); (2) the Board of Directors be geographically representative of those sectors (ditto); (3) it include a table grape grower, juice grape grower, wine grape grower, farm winery, large winery, wholesaler, retailer, restaurateur, public relations professional, and two researchers (makes sense to get different perspectives, though some sectors were also at odds over grape prices or government policies); and (4) the initial Board would be selected by the Governor (3 appointments), Senate and Assembly majority leaders (3 each), and minority leaders (1 each)--a big problem, given the other requirements, but eventually overcome.  Also, for as long as the Foundation received any State money, the Commissioners of Agriculture and Commerce (now Empire State Development) would also be represented on the Board.

 

                     The first Board was truly a hodgepodge of different people, positions, and perspectives conducive to total chaos.  Fortunately, a gentleman named Bert Silk, then a Vice President of Canandaigua Wine Company (which has morphed into Constellation Brands) was elected Chairman and brought a unique blend of diplomacy, negotiating skills, and firmness which in a reasonably short time got everyone headed in the same direction: What is best for the industry overall, rather than just our individual interests?

 

                     Since then, there have been (mostly) good Boards and (a few) bad Boards, the differences mostly due to the levels of self-interest vs. broader perspective, as well as a tendency for some people to micromanage when it is unnecessary and leads to stagnation.  Over the past 30 years, there have been dozens of industry people from all regions who have served on the Board and made great contributions.  Of particular note are those who have stepped up to the plate to serve as Chair or other Officer positions.  They are all to be thanked.

 

                     So are the many grape growers, grape juice processors, winery owners, and business associates who have voluntarily paid membership dues, while others have instead chosen a free ride.

 

                                                   The Vital Research

 

                    Some people, in 1985 and now, have felt that the Foundation's focus should be just on wine (not juice or table grapes) and just on promotion (not research).  I couldn't disagree more on both instances, but especially when it comes to research.

 

                    Cornell University is recognized as one of the premier research institutions for viticulture and enology in the world, and Cornell Cooperative Extension does a fabulous job conveying the results to the growers and winemakers who need them to improve their operations and products.  Productivity and quality don't happen by chance: They're based on knowledge and communication.

 

                    We are so fortunate to have Cornell/CCE as our partner.  Proof?  A major California winery sends the Foundation a large amount of money annually that we can get matched so that a Cornell researcher--not one from California--can do his work, based on the fact that he is recognized as one of the best in the world.

 

                    Promotion is noisy; research is quiet.  That's how both are supposed to be.  It takes 20 years to create a new grape variety, but look at the successes Cornell has had with Cayuga White, Traminette, Valvin Muscat, Noiret, and many others.  Research in other areas--water management, disease prevention, trellising, cold-hardiness, hi-tech crop assessment--typically take many years and a lot of funds to develop meaningful, reliable data.  But the payoff can be huge for grape growers and processors, as well as our industry's reputation throughout the world.

 

                   With funding from the State of New York and several key private sector partners, the Foundation over the years has invested millions of dollars in research conducted by Cornell.  Even if some people in the industry don't realize it, they are benefiting from it every day.

 

                                               Growing the Market

 

                    The Foundation's overall promotional goal has always been to increase the market for New York grapes and wine.  We cannot and do not market or sell wine, but we sponsor programs intended to provide wineries with opportunities to sell theirs.

 

                     Our two-pronged promotional strategy is simple: Bring the people to the wine, and take the wine to the people.

 

                    The first means tourism, the second urban markets.  Both are intended to get more people to discover, try, and buy New York wines.

 

                    Wine trails are the core of the tourism program, and the Foundation's role has been to encourage their development and provide matching funds for some of their programs.  The Cayuga Wine Trail, established in 1983, was the first in the nation and the only one in New York when the Foundation was created, and served as the model for others throughout the State. Today there are 19.

 

                    With their brochures, special events, and highway signage, wine trails make it simple and convenient for consumers to visit several wineries in a day or weekend.  Their  special events early and late in the year have also more than doubled the length of the wine country tourism season, bringing new business to Bed & Breakfasts, hotels, restaurants, and service stations, as well as jobs in the predominantly rural regions.

 

                    Our "Wine Competitions" program has played a major role in increasing the awareness of and respect for New York wines throughout the country and world.  By sharing the entry fees, we make it more affordable for wineries to submit their wines into major international competitions, mostly in California, which result in lots of Gold medals and other top awards from Best of Class to Best of Show.

 

                     Result: Well over 700 Gold medals and above annually, along with dozens of 90+ ratings from top consumer magazines--as shown in the Awards and Accolades section of our web site.  In addition, our own New York Wine & Food Classic--the "Oscars" of New York wine--draws huge attention and enormous immediate sales for the  top winners.

                             

                     New York City is the world's most competitive wine market, and we get no break as New Yorkers; if anything, the reverse is true--the assumption that if it's local, it can't be good.

 

                     But the Big Apple is also our "home" market, like San Francisco is to California wines and Seattle to Washington wines.  Happily, New York wineries are now making great progress, thanks in part to our "NY Drinks NY" program.  Now in its fifth year, it's essentially an "exchange program" under which we bring New York City sommeliers, writers, and wine store managers to the wine regions, and then take winery representatives into New York City for market orientation.  The culminating highlight is always a Grand Tasting in March.

 

                    New York Farm Day in Washington each fall is also a showcase not only of New York wines, but also other craft beverages and all kinds of New York-produced foods.  Organized by us and hosted by Senator Kirsten Gillibrand, the purpose is to tastefully remind top Washington officials that New York is a major farm state, and agriculture is an important part of our economy.

 

                   "New York" is a phrase recognized around the world, as evidenced when we present New York wines in our export program at trade shows in Brussels, Dusseldorf, Hong Kong, London, Toronto and elsewhere.  Everyone knows "New York"--the Statue of Liberty, Broadway, Times Square--but few know that's just the city within a state of the same name.  And even fewer know that we make wine--or how good it is.

 

                     This unique blend of familiarity and surprise provides a marketing advantage which is translating into New York wines gaining acceptance in many of those markets

                               

                      In addition to these regular, ongoing programs, we have special projects aimed at the same overall goal of expanding the market.  Right now we're working on two--a large, glossy New York wine-only magazine and an electronic counterpart--that will be officially unveiled in August, reaching hundreds of thousands of wine enthusiasts.

 

                                                 Industry Involvement

 

                      Another part of the New York wine industry reputation and respect from other regions in the world is the active role that many involved with the Foundation have taken in national and international organizations.

 

                     Jim Finke served as Chairman of WineAmerica and for many years as President of FIVS.   Jim Bedient served as Chairman of Winegrape Growers of America.  Tom Davenport and John Martini both served as Chair of the National Grape and Wine Initiative.

 

                    I serve on the Boards and/or Executive Committees of FIVS (international trade and policy), the National Grape and Wine Initiative (research), WineAmerica (public policy), and the Wine Market Council (marketing).

 

                   This involvement shows New York's commitment to the greater industry good, raises our profile among peers, and ensures that our interests will be included in any discussions and decisions.

 

                                               Public-Private Partnership

 

                    None of this--research, promotion, growth, success--would have happened without the incredible support that we have received for decades from the State of New York.

 

                     The 1984-85 legislative package proved to be a major turning point, reviving a moribund industry which soon became the fastest growing segment in the key agriculture and tourism sectors of the State economy.  Over the years, the amount of State financial support has varied greatly depending on a combination of economic conditions and the various Administrations, but we've always been able to keep the lights on and conduct our core programs. (When the 2008 crash occurred, we went from $3,000,000 to $0 overnight.  Ouch!)

 

                      Since 2011, when Governor Andrew Cuomo took office, there has been a fundamental change in the business climate for New York wine and other farm-based craft beverages.  Legal and regulatory changes, cultural changes within key government agencies, and strong promotional support have given us the best business climate in history.  The phenomenal "Taste NY" program is providing many new opportunities, along with the "I Love NY" program and new funding for promotion.

 

                     Key legislators on both sides of the aisle, like Assemblyman Bill Magee and Senator Patty Ritchie, who chair the respective Agriculture Committees, have also played leadership roles in supporting our industry.  On the federal level, Senators Kirsten Gillibrand and Charles Schumer, along with former Senator Hillary Clinton, have provided great support, as have numerous Representatives from both parties.

 

                                                    A Piece of the Puzzle

 

                     This also wouldn't have happened without key people in our industry working together--gritty grape growers who refused to give up, dedicated winery owners who invested their money and dreams, winemakers for whom "great" still isn't quite good enough, researchers dedicated to helping the industry, and many others.

 

                      The New York State Wine Grape Growers association really started everything that led to where we are today.  And who can forget Women for New York State Wines--a dedicated group of volunteers who serve as the "ambassadors of taste" at so many functions, enthusiastically extolling the virtues--and great taste--of New York wines.

 

                        Last, but really first, are the wonderful people I have the privilege of working with every day--Susan Spence, Dana Alexander, Jennifer Cooper, Bonnie Hampton, and Teresa Knapp.  They are all capable, committed, and collegial, always making sure that I don't mess things up! 

 

                      The goal of all these people has been to get a little better every day, and like compounded interest, a little better every day becomes a lot better over 30 years.  We're the 30-year overnight success.

 

                     "Diversity is our strength.  Unity is our power." 

 

                       That has been my sermon to the industry for over 30 years.  The diversity of regions, grape varieties, people, philosophies, winery architecture, product lines, and much else ensures that ours is an interesting, exciting, dynamic industry--just like New York City is so exciting because of its incredible diversity. 

 

                       But when we set out to achieve something major as an industry, the only way to do it is through a unity.

 

                      In that sense,  I view the Foundation as a piece of the puzzle, the quarterback of a football team, and the head cheerleader.  It's been a real team effort, and a real fun ride.

 

                                       Happy Anniversary!

 

 

 

                  

Words on Wine...                                                       
 
  "Diversity is our strength.  Unity is our power."
                                                    --Jim Trezise
  
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