February 6, 2016

 

             Tons of New York Gold from the Sunshine State, DtC sales way up, Chocolate time, Taste NY, and more from New York Wine Country.

 

             Cheers!          

             Jim Trezise

Florida Loves New York Wines

 

                 New York wines once again scored big--no, HUGE--at the annual Florida State Fair International Wine Competition in Tampa last weekend, winning 4 of the 6 Best of Show categories, plus 19 Double Gold, 19 Gold, 34 Silver and 12 Bronze medals.

 

                  Liberty Vineyards & Winery from the Lake Erie region was the big winner, with two Best of Show awards (2013 Sparkling Riesling, and 2015 Catawba Ice Wine), in addition to four other Double Golds ( Purple Hope, Fredonia, 2014 Riesling, and Diamond Select) plus two Golds (Lucys in the Sky, and Rufus Red).

 

                  Owera Vineyards Owaghera White won Best White Wine, along with a Double Gold for Bettys White and Gold for Cazenovia 1793.  And Torrey Ridge Catawba won Best Blush/Rose,  plus a gold for their Diamond.

 

                  Other Double Gold medals went to Black Willow Bare Cat Blush; Dr. Frank 2014 Dry Riesling; Earle Estate Blueberry Wine, Raspberry Reflections, and Pear Mead; Keuka Spring Crooked Lake Red; Lakewood 2014 Chardonnay and 2014 Dry Riesling; Swedish Hill 2014 Riesling and Naturel.

 

                  Other Gold medals were awarded to Arbor Hill Noiret and Diana Blush; black Willow Classic Diamond and Black Widow Berry; Dr. Frank 2014 Gruner Veltliner and 2014 Gewurztraminer; Earle Estates Apple Enchantment; Keuka Spring 2014 Apres and Millers Cove Red; Lakewood Niagara; Niagara Landing Rosebud Gold and Hot Pepper Wine; Swedish Hill 2014 Marechal Foch, 2012 Cabernet Franc, and Riesling Cuvee; and Torrey Ridge Diamond.

 

                  Next up, in about 10 days, is the annual East vs. West competition in Santa Rosa, California.

 

                   Elsewhere, at the Winemaker Challenge, Platinum awards went to Dr. Frank 2014 Gruner Veltliner (94), and Wolffer Estate 2013 Late Harvest Diosa (96).

                              

Direct-to-Consumer Shipments Surge

                  Sales of wine directly to consumers in the United States increased 8.5% in 2015--four times the rate for sales in traditional retail wine outlets--confirming the desire of consumers to choose from a broad range of wines, and the desire of wineries (especially small ones) to broaden their consumer base.

                   The numbers were released in a report created by Wines & Vines magazine and ShipCompliant, an excellent company created years ago to help wineries comply with the myriad laws and regulations governing direct-to-consumer sales.  Among the highlights:

 

     -- Total volume reached 4.29 million cases (8.5% over 2014)

     -- Total value increased 8.1%, totaling $1.97 Billion

     -- In the past 5 years, the value of DtC shipping has grown by 66%.

     -- Wines at $15 and under increased in volume by 27.7%, reaching 23.4% of total shipments

     -- Very small wineries had their 5th year of growth, with a 13% increase in total value

     -- 43 states now allow direct interstate shipment of wine, accounting for over 90% of the U.S. population

     -- 56.2% of all shipments are sent to consumers in CA, TX, NY, FL, and IL

 

                    The increase in sales, and in the number of wineries in New York State and the country, is due largely to the freedom stimulated by a 2005 Supreme Court decision allowing direct interstate wine shipment, followed by a hard-fought legislative victory for the wine industry in New York State.  Besides providing new sales opportunities, it meant unprecedented attention from national wine magazines that previously didn't cover New York wines because their readers couldn't get them through the traditional three-tier system.  Now they can.

 

                   DtC wine shipments are still a small percentage of total sales, but by far the fastest growing segment.  This is largely a reflection of the Information Age in which consumers have instant access to far more information and choices than ever before, somewhat similar to Uber (vs.taxis), Airbnb (vs hotels), and Amazon (vs Walmart).  These new options don't replace the old, but rather just add another choice and give consumers more control over the decision-making, which is especially appealing to Millennials who are the largest segment of the American population as well as avid wine consumers.  It's good for them, and it's good for the wine industry. (Oh, and let's not forget that increased sales also generate lots of new excise and sales taxes for the federal and state governments.)

                  

                   But there's still more work to be done.  Right now, for example, wineries may ship only the wines they produce themselves--not wines from their neighbors or wine trail colleagues--even though consumers would often like to buy mixed cases.  In addition, New York farm wineries are allowed to have up to five "branch offices" (remote stores) where they may sell any New York labelled wine, and often do.  If a visiting consumer finds a selection of wines she likes, why shouldn't a winery/branch office be able to ship it to her home instead of making her schlep it back?

 

                  Like many restrictive alcohol beverage laws, it just makes no sense in the 21st Century.

                              
Free Run...

                  If it's mid-February, it's Chocolate time, and as always many wine trails throughout the State are hosting Chocolate-and-Wine events next weekend.  These popular festivities are a great example of how the wine industry has lengthened the tourist season during a time that used to be totally dead.  But now the gas stations are busy, the hotels full, the restaurants humming, and the State and local governments raking in the sales taxes.  Wine: The economic engine.     

 

                   Taste NY is a great program created by Governor Cuomo and orchestrated by the New York State Department of Agriculture & Markets, and our industry has benefited from it many times in many ways.  Coming up next weekend is the Boston Wine Expo, a great trade and consumer where Taste NY sponsors a wine pavilion that makes it affordable for many New York wineries to attend.  As always, I'll be conducting a tasting an seminar, "The Taste of New York Gold", showcasing a variety of different wines that have won Gold medals in major competitions.

                    Massachusetts is an important potential market not only because it borders New York, but also (finally) is now allowing direct-to-consumer shipment, with totaled $27.5 million in 2015 and is expected to double this year as more wineries get registered and more consumers discover the option.         

                                                         

 Words on Wine...                             
 
  "Wine, n. Fermented grape-juice known to the Women's Christian Temperance Union as 'liquor', sometimes 'rum'.  Wine, Madame, is God's next best gift to man." 
                                                              --Ambrose Bierce, The Devil's Dictionary, 1911
  
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