Willamette Valley Harvest Outlook/Bulk Wine and Wine Grape Market

During the last 12 years of brokering bulk wine and wine grapes out of Washington and Oregon, Oregon and Willamette Valley Pinot Noir have been stalwart categories that only increased in demand and pricing over time. The challenge was more around getting hands on inventory to sell, with many lots being committed to before samples were received. The worm has, at least temporarily, turned.

In 2024 the kinetics that appear to be affecting the global world of wine finally landed in Oregon. Demand has been soft on Willamette Valley and Oregon Pinot Noir and Pinot Gris since March. Willamette Valley Chardonnay, which is a global darling critically, rarely moves the needle on the bulk wine market. There are a couple of strong figures locally in the Willamette Valley that are fortunately consuming most of the planted acreage of Willamette Valley Chardonnay, which represents a slim single digit percentage of the planted acreage.

There is more bulk wine being over vintaged in the Oregon/Willamette Valley Pinot Noir categories (likely in excess of 300,000 gallons) for the first time in our experience. This volume represents a small amount of wine in the domestic bulk wine market where inventories of Cabernet in California and Washington are in the millions or tens of millions of gallons. This inventory could be consumed by a handful of brands that see a minor sale resurgence in the coming months. October, November, December sales (referred to industrially as OND) will have a significant impact on the short term fate of the bulk Pinot Noir market in Oregon.

Many tons are being left on the vines this year, especially in production vineyards. Overall production numbers could be 20-30% below last year’s totals. Production producers along with brands in lower priced categories have put the brakes on grape purchases this year in an attempt to correct the market for a softer landing in 2025.

Pinot Gris demand remains decent, concurrent with the domestic sales strength of white wines, generally. Sauvignon Blanc is underplanted in this region based on demand. Chenin Blanc also has niche demand that could be expanded upon throughout Willamette Valley and Oregon at large.

Northeastern Oregon is a potential sleeping giant for production acreage in Pinot Gris, Pinot Noir, and Sauvignon Blanc. This area lacks the inherent fire and water risks presented by SW Oregon, and investment in planted acreage appears to be growing the fastest in this area. The potential to hang a robust crop, ripen it, and mitigate the risks of rain/milldew pressure make the Arlington-Echo-Milton-Freewater corridor along Highway 84 in NE Oregon a future agricultural darling for wine grapes.

Forward thinking companies are capitalizing on the investment opportunities represented in the pricing and volume opportunities represented in this current bulk wine market that haven’t been seen in at least a decade. When the market turns, the pricing and availability will be remembered fondly by buyers.

Informe de cosecha de uva y vino a granel del estado de Washington

Julio trajo un calor récord al este del estado de Washington. Esto se produjo inmediatamente después de un junio más frío y húmedo de lo normal. Lo que tenemos hasta ahora es una situación clásicamente normal en términos de acumulación de unidades de calor en el este del estado de Washington. La segunda quincena de agosto transcurrió en contra de las tendencias históricas, con temperaturas más frías de lo esperado. Esta tendencia a la baja de las temperaturas en realidad ayudó a acelerar el inicio de la cosecha. Las plantas estuvieron cerradas durante gran parte de la ola de calor de julio debido a que la temperatura extrema las empujó al modo de supervivencia. A medida que las temperaturas bajaron entre mediados y finales de agosto, el envero se aceleró. El clima de septiembre ha sido hermoso últimamente después de un comienzo de mes caluroso.

El tamaño de la cosecha de Walla Walla se vio afectado negativamente por las temperaturas frías extremas. Los viñedos de las laderas, que se cree que están protegidos contra las heladas, fueron sorprendentemente los más afectados en el AVA debido a una inversión inusual que acompañó a la ola de frío en enero. Las variedades del Ródano se vieron especialmente afectadas.

La mayoría de los rendimientos del estado parecen estar por encima del promedio, especialmente (y desafortunadamente según las demandas de consumo) en Cabernet Sauvignon. La demanda de Sauvignon Blanc y Pinot Gris sigue siendo fuerte. La demanda de algunas variedades de nicho, como Malbec, Tempranillo, Chenin Blanc y variedades blancas del Ródano, está superando los niveles de producción actuales. El triunvirato de uvas del estado de Washington (Cabernet Sauvignon, Merlot y Syrah) parece estar muy sobreabastecido en este momento.

Debido al volumen de material de cultivo no vendido, las regiones productoras de uva del estado de Washington están en una oscilación bianual interanual de mayor que el promedio, seguida de tamaños de cosecha más pequeños que el promedio. 2024 representa lo primero. El tamaño de las cosechas, especialmente en las variedades rojas bordelesas, parece enorme. Un actor importante en el mercado inició otra reducción del contrato del 30% para los productores durante las últimas dos semanas, lo que impactó aún más financieramente a la comunidad de productores y probablemente impulsó el cese de cultivo de algunas superficies, lo que llevó a la eventual eliminación de viñedos.

Hay un número cada vez mayor de productores que no cosechan estos cultivos y no elaboran vino a granel, suponiendo que la reducción o el retraso no se compensarán en otros lugares. Esta práctica debería ayudar a equilibrar el inventario de vino a granel y ayudar a que los precios vuelvan a los niveles anteriores a 2020.

Se estima que la cantidad de superficie eliminada y sin riego en el estado de Washington oscila entre 4.000 y 6.000 acres. La necesidad de eliminar hasta 20.000 acres en total (14.000-16.000 acres además de lo que se ha eliminado) basándose en las tendencias de producción actuales en el estado parece ser una nueva realidad.

Es poco probable que persistan las tendencias actuales en la industria. Ésa es la costumbre de las tendencias. Por el momento, la industria del vino en general tiene un exceso de oferta y Washington no es inmune.

La fortaleza de las marcas más pequeñas y medianas en las categorías premium y ultra premium sigue siendo el brillo del crecimiento de Washington Wine como categoría. Algunas marcas están reportando un crecimiento de dos dígitos que continúa este año a precios de $15-$25/botella y a precios superiores a $50/botella.

Washington State Bulk Wine and Wine Grape Harvest Report

July brought record heat to Eastern Washington State. This came on the heels of a cooler and wetter June than normal. What we have so far is a classically normal vintage in terms of heat unit accumulation in Eastern Washington State. The second half of August ran contrary to the historic trends with temperatures cooler than expected. This down trend in temperatures actually helped to accelerate the onset of harvest. Plants were shut down for much of the heat wave in July due to the extreme temperature pushing plants into survival mode. As temperatures cooled in mid to late August, veraison sped ahead. September weather has been beautiful of late after a hot start to the month.

Walla Walla’s crop size was affected negatively by extreme cold temperatures. Hillside vineyards, believed to be frost protected, were surprisingly the most greatly affected in the AVA due to an unusual inversion that accompanied the cold snap in January. Rhône varieties were hard hit in particular.

Most of the state’s yields look to be above average, especially (and unfortunately based on consumption demands) in Cabernet Sauvignon. Sauvignon Blanc and Pinot Gris demand remain strong. Demand in some niche varieties such as Malbec, Tempranillo, Chenin Blanc, and white Rhône varieties are exceeding current production levels. The Washington State grape triumvirate of Cabernet Sauvignon, Merlot, and Syrah appear to be vastly over supplied at the moment.

Due to the volume of unsold crop material, Washington State’s grape growing regions are on a yo-yo biannual swing of larger than average, followed by smaller than average crop sizes. 2024 represents the former. Crop sizes, especially in Bordelais red varieties look to be massive. A large player in the market initiated another 30% contract reduction on growers over the last two weeks, further financially impacting the grower community, and likely advancing the cessation of farming of some acreage, leading to the eventual removal of vineyards.

There is an increasing swell of growers that won't harvest these crops and won't make bulk wine assuming that the reduction/delay won't be made up elsewhere. This practice should help balance the bulk wine inventory and help prices return to pre-2020 levels.

The amount of removed, un-irrigated acreage in Washington State is estimated to be between 4,000-6,000 acres. The need to remove up to 20,000 total acres (14,000-16,000 acres in addition to what's been removed) based on current production trends in the state apear to be a new reality.

Current trends in the industry are unlikely to persist. Such is the habit of trends. For the moment, the wine industry at large is over supplied, and Washington isn’t immune.

The strength of smaller to mid sized brands in premium and ultra premium categories remains to be the shining luster of growth in Washington Wine as a category. Some brands are reporting double digit growth continuing this year at price points of $15-$25/bottle and at price points greater than $50/bottle.

Realidad versus Ficción

Cuanto más leo sobre la industria del vino de Washington, más veo una discrepancia entre lo que leo y lo que veo día a día en esta industria.

Ficción: Los vinos de Washington son difíciles de vender a nivel nacional

Hecho: Hay empresas que venden vinos de Washington que lideran categorías de ventas en mercados lejanos como Florida, Nueva York, Ohio y Texas con Washington State Cabernet Sauvignon, Red Blend, Rosé y Sauvignon Blanc.

Ficción: Washington State Wine no tiene una identidad varietal.

Hecho: Sauvignon Blanc y Cabernet Sauvignon son categorías de identidad fuertes ahora y en el futuro en el estado de Washington.

El Sauvignon Blanc del estado de Washington, con un precio de entre $ 15 y $ 25 por botella, puede ser una de las compras más populares del mercado en este momento. El estado de Washington puede producir una variedad de estilos de Sauvignon Blanc, desde herbáceos y frescos hasta tropicales y espectaculares.

Washington State Cabernet sigue siendo el favorito de las empresas de rápido crecimiento que venden marcas de vino en caja y embotelladas, así como de clubes de vinos de gran alcance y gran volumen. Horse Heaven Hills Cabernet Sauvignon ya tiene presencia de distribución nacional. Las casillas de verificación de Red Mountain y Walla Walla para AVA boutique obtienen reconocimiento crítico internacional y obtienen ventas constantes a precios elevados.

Ficción: las perspectivas para los vinos de Washington vendrán del interior del estado

Hecho: Las marcas de vinos de Washington que más rápido se mueven son todas empresas de fuera del estado.

Las empresas que experimentan un crecimiento de dos dígitos o más en los vinos de Washington en grandes volúmenes tienen su sede fuera del estado. Las cifras están algo sesgadas porque estas marcas son en su mayoría incipientes, pero el tamaño de los volúmenes de ventas de cajas que han alcanzado estas empresas en un corto período de tiempo indica que el potencial de crecimiento es real.

Un hecho sobre el vino de Washington no ha cambiado. Los vinos provenientes del estado de Washington ofrecen un valor increíble y espacio para crecer en mercados con trayectorias de precios que confirman valores sostenibles y edificables.

Fact vs. Fiction

The more I read about the Washington Wine Industry, the more I see a discrepancy between what I read and what I see day to day in this industry.

Fiction: Washington Wines are a tough sell on a national level

Fact: There are companies selling Washington wines leading sales categories in far distant markets like Florida, New York, Ohio, and Texas with Washington State Cabernet Sauvignon, Red Blend, Rosé, and Sauvignon Blanc.

Fiction: Washington State Wine doesn’t have a varietal identity.

Fact: Sauvignon Blanc and Cabernet Sauvignon are strong identity categories now and in the future in Washington State.

Washington State Sauvignon Blanc priced between $15-$25/bottle may be one of the hottest buys in the marketplace right now. Washington State can produce a variety of styles of Sauvignon Blanc from grassy and fresh to tropical and show stopping.

Washington State Cabernet continues to be a darling of fast growing companies selling boxed wine brands, bottled brands, as well as far reaching, high volume wine clubs. Horse Heaven Hills Cabernet Sauvignon already has a national distribution presence. Red Mountain and Walla Walla check boxes for boutique AVAs garnering international critical recognition, and garner steady sales at high price points.

Fiction: Prospects for Washington wines will come from within the state

Fact: The fastest moving brands on Washington wines are all out of state companies

Companies experiencing high double digit growth or more on Washington wines in large volumes are all based out of the state. The numbers are skewed somewhat by these brands being mostly nascent, but the size of the volumes of case sales that these companies have grown into in a short span of time indicate the growth potential is real.

One fact about Washington wine hasn’t changed. The wines coming from Washington State offer incredible value and space to grow into markets with pricing trajectories that confirm sustainable and buildable values.

Who is Afraid of the Big Bad Fed?

So much hand wringing over the recent studies endorsed by the FDA that alcohol is unhealthy for human consumption!

My questions are these:

What has the FDA done to lead us to believe that human health is their priority?

Why does the wine industry care what the Fed says?

Like Julie Andrews taught us in The Sound of Music, “Let’s Start in the Beginning, it’s a very fine place to start”

Commercial advertisements are littered with FDA approved products that cause dastardly health results labeled as “side effects”. The goal of the FDA appears to create life long dependencies using semi-toxic drugs, where the answer to one drug is another, compiling unwanted contraindications. The evil villain in this scenario is the FDA itself. The FDA is in fact akin to a sinister drug dealer character in New Jack City veiled in the form of the medical industry fostering revolving dependency and a deepening set of medical issues created by the consumption of these sanctioned drugs.

What all citizens of the world desire is freedom of choice. To this end, Charles Bukowski told us “Find what you love and let it kill you.” Could anyone say they love the pharmaceuticals they are taking?

Many segments of the population do love to celebrate and gather together to share a great bottle of wine.

This is the essence of the story that the wine industry needs to tell. People love their friends and their families. They love to celebrate the joys and milestones of life. Wine’s story in these moments remains a semanal part of our cultural story. It isn’t for us in the wine industry to fight the fallacy that the FDA has any part of our medical health in mind when giving its opinions on what is and isn’t healthy. Frankly, no one much wants to indulge in the discussion of what may kill us, because as Mr. Bukowski wisely told us, life is a terminal condition, and it is for us to choose with what we fill the living moments of our celebratory dance around the sun.

Sentirse Bien Historia

Sentirse bien historia

A todos nos encanta una historia para sentirse bien. Si es miembro de la industria del vino o seguidor de las noticias de la industria del vino, es posible que sepa que estas historias han escaseado últimamente. Esta historia comienza con un desastre natural y una incertidumbre inminente, pero el sol está saliendo con un rayo de luz luminoso.

El Valle de Okanagan es posiblemente la región vinícola más espectacular de América del Norte. Las montañas cubiertas de nieve se reflejan en lagos glaciares que contradicen el esplendor natural con vinos de clase mundial yuxtapuestos en un entorno perfecto. Naramata Bench y Lake Country, BC son regiones homónimas cuyos espectaculares paisajes atraen a una multitud de visitantes de todo el mundo.

Desafortunadamente, los desastres naturales han afectado a la industria vitivinícola en el valle de Okanagan. Los eventos consecutivos de congelación de muertes intercalados entre una catastrófica temporada de incendios en el otoño de 2023 han devastado la industria del vino en el oeste de Canadá.

La industria vitivinícola de Washington ha necesitado nuevas asociaciones. El declive de las grandes bodegas sobre las que se construyó esta industria ha dejado a los viticultores preguntándose cómo llenar el vacío.

Las historias para sentirse bien tienden a surgir de una marea creciente de necesidades e intereses mutuos que chocan, como ocurre en esta.

La necesidad de uvas para vinificación de Columbia Británica y la necesidad de clientes de uvas para vinificación del estado de Washington han encajado maravillosamente. Muchos de los excelentes viñedos de Washington se estaban mezclando en grandes fusiones, produciendo grandes vinos, pero dejando en la oscuridad los terroirs de los viñedos individuales. Los nuevos viticultores que tienen en sus manos estas uvas para embotellarlas más pequeñas hacen que los productores de uva de todo el Valle de Columbia se sientan mareados. Los enólogos de Okanagan están entusiasmados de tener en sus manos fruta de sitios que son nuevos para ellos. Esto brinda a los enólogos de Columbia Británica nuevas pruebas y perfiles de sabor para explorar, algo que a todos los enólogos les encanta.

De las proverbiales cenizas, surge una nueva historia. Algo que probablemente se desarrollará en los próximos años, a medida que Columbia Británica recupere sus viñedos. El mercado de uvas para vinificación de Washington también se reconstruirá de nuevo, y las nuevas asociaciones no podrían haber llegado en mejor momento. Mientras los productores de uva se esfuerzan por impresionar a sus nuevos socios con fruta de clase mundial y las bodegas de Okanagan tienen vinos nuevos e interesantes para ofrecer a sus clubes de vinos y a los visitantes de las bodegas, el futuro inmediato para ambas regiones es más brillante gracias a esta historia de bienestar.

Feel Good Story

Feel Good Story

We all love a feel good story. If you’re a wine industry member or follower of wine industry news, you may be aware that these stories have been in short supply lately. This story starts with natural disaster and imminent uncertainty, but the sun is rising on a luminous silver lining.

The Okanagan Valley is arguably North America’s most spectacular wine region. Snow capped mountains are reflected in glacial lakes belying natural splendor with world class wines juxtaposed in a perfect setting. The Naramata Bench and Lake Country, BC are eponymous regions whose spectacular scenery draws a multitude of visitors from the world over.

Natural disasters have unfortunately befallen the grape growing industry in the Okanagan Valley. Consecutive killing freeze events sandwiched between a catastrophic fire season in the fall of 2023 have devastated the wine industry in Western Canada.

Washington’s wine industry has been in need of new partnerships. The decline of the large wineries that this industry built itself on have left grape growers wondering how to fill the void.

Feel good stories tend to stem from a rising tide of mutual needs and interests colliding, as this one does.

British Columbia’s need for wine grapes and Washington State’s need for wine grape clients have dovetailed beautifully. Many of Washington’s excellent vineyards were being blended into large amalgamations, producing great wines, but leaving individual vineyards’ terroirs obscure. New vintners getting their hands on these grapes for smaller bottling have grape growers around the Columbia Valley feeling giddy. Okanagan winemakers are excited to get their hands on fruit from sites that are new to them. This gives BC’s winemakers new trials and flavor profiles to explore, something that all winemakers love.

From the proverbial ashes, there’s a new story rising. One that will likely unfold over the next several years, as British Columbia gets its vineyards back on their feet. Washington’s wine grape market will be re-building itself anew as well, and the new partnerships couldn’t have come at a better time. With grape growers striving to impress their new partners with world class fruit and the Okanagan’s wineries having exciting new wines to offer their wine clubs and winery visitors, the immediate future for both of these regions is brighter thanks to this feel good story.

Upside of the Downturn

Upside of the Downturn

Much has been made over the past decade regarding the ominous shadow cast by the consolidation taking place in the wine industry. As the buying power and leverage increased on the part of larger wineries, how would smaller wineries survive the 3 tier system? How could independent brands reach consumers when so much of the shelf was occupied by the heavies?

Fast forward to the present moment where large volume producers have seen double digit decreases in sales at lower price points. Currently, mid sized brands at $15-$25/bottle have seen significant growth. Companies thinking creatively about their marketing approach have found direct sales models that bypass the three tier logjam and are seeing their business double and triple in their second and third years of business. The luxury segment, naturally smaller in volume than lower price point models, continue to see modest growth and an increase in audiences seeking experiential consumption.

The way Americans viewed consumption and farming ran in tandem through the wine industry’s growth. The conventional wisdom disseminated from the USDA through agricultural investment strategy was that tons per acre were the measure of success in American agriculture. The baby boomers through Gen X were brought up around the idea that alcohol and meat were signs of wealth and achievement, and that both should be consumed vigorously. This idea supported commercial farming principals to meet volume consumption.

Millennial and Gen Z generations seeking lifestyle experiences, stories that encourage the consumers to feel good about making choices borne out of health consciousness and social responsibility are stepping into the spotlight on the stage of wine. The pivot towards reasonable consumption and social responsibility point towards a change in the volumetric philosophy of the past. The way a consumer feels about their purchase decisions is calling forth some of the best parts already inherent in the wine community.

Wine has long since been one of the most elegant and time honored ways of bringing people together. The making of wine, as well as the selling and consuming of wine are group efforts that evoke romance and nostalgia. Consumers want and feel the need to be in beautiful places having meaningful and memorable experiences. Wine may offer this opportunity in ways that no other experience in the alcohol industry can.

A bright silver lining is taking place around what first appeared to be a dark cloud over the wine industry. Large wineries are making layoffs and are downsizing their teams in response to the reduction in sales. Out of this diaspora of talent, new businesses are being developed, new ideas with new energy are being heard, and new ways of telling the story of wine that were viewed as too risky in the corporate board rooms are now being beta tested on our audience with some stunning success stories. New businesses and emerging leadership are unencumbered by risking their careers on making creative suggestions. Necessity is forcing the door open to concepts that were before stifled for not being tried and true.

Innovation is generally borne out of necessity, and the crossroads at which the wine industry finds itself will lead to new directions that will generate the growth and development that is needed to carry it forward into a brighter future.

Llamame Por Mi Nombre

¿Qué mejor se vende el vino que con el topónimo? En el viejo mundo, la finca o el propio viñedo se venden a un precio elevado. No hay descriptores adjuntos a los nombres de las variedades, salvo quizás una hoja técnica para el comercio. En un vistazo a los sitios web de First y Second Growth, apenas se encuentran los nombres de las variedades. La Finca es sinónimo de la calidad de los vinos que elaboran.

En Borgoña, los viñedos perfilados por la roca delimitan la escasez y el escalón superior. La Tache es lo que tiene valor, ni siquiera la denominación se compara con el nombre del viñedo.

Italia vende Barolo y Barbaresco. Nebbiolo está relacionado con los bromistas de la industria, pero es el nombre del lugar el que hace que los compradores se dirijan a estas secciones de tiendas de vinos al llegar. El argumento del tiempo para que estos nombres sean el centro de atención es justo. Con el paso del tiempo, es probable que se olvide al reflexionar sobre el arte del marketing y la protección de la marca que llevaron a cabo sus administradores para poner las ventas de estas regiones del mismo nombre en Easy Street en la era moderna.

En Estados Unidos, nuestros pioneros se apoyaron en armonizar la variedad con el lugar. Napa Cabernet, Willamette Valley Pinot Noir, Paso Robles Cabernet, Yakima Valley Riesling.

Quizás la mayor fortaleza del estado de Washington es que en gran medida está indefinido. En una estepa inclinada, azotada por inundaciones, las vides luchan por prosperar en el basalto fracturado que se aferra a las laderas de las montañas azotadas por el viento. Cuando los artistas cultivan y vilipendian las uvas, los vinos producidos son singulares.

¿Qué pasaría si los vinos de Washington se vendieran por el topónimo? Montaña de Dulces, Montaña de Elefantes, Walla Walla. Estos nombres extravagantes podrían llevar etiquetas a los nuevos consumidores. Los consumidores encontrarían vinos con identidad, iluminados en estos hermosos lugares con nombres al estilo Tolkien.

En muchas añadas, Merlot y Syrah son los mejores vinos tintos producidos en Washington, pero a los consumidores no les importa. ¿Qué pasaría si les dieran mezclas de ambos (o cualquier cosa que pudiera vinificarse mejor armoniosamente desde un lugar singular) con el marketing centrado en el lugar y la gente, en lugar de en la composición de la mezcla? Vender el lugar y dejar que lo prueben. Vender el nombre de un viñedo o un lugar memorable.

Cuando el lugar se vende de manera efectiva, todos sus productores y consumidores se benefician.

Call Me By My Name

How better is wine sold than with a place name? In the old world, the Estate or the Vineyard itself is sold, on the high end. There are no descriptors attached to the varietal names, save for perhaps a tech sheet for the trade. In a glance through First and Second Growth websites, varietal names are nary to be found. The Estate is synonymous with the quality of wines that they produce.

In Burgundy, the rock outlined vineyards delineate the scarcity, and the upper echelon. La Tache is what holds the value, not even the appellation holds a candle to the vineyard name.

Italy sells Barolo and Barbaresco. Nebbiolo is implied to industry wags, but it is the place name that has buyers heading to these sections of wine shops upon arrival. The argument of time for these names in the limelight is fair. With the accession of time, it is likely to forget upon reflection the art of the marketing and brand protection that were carried forth by its stewards to put these eponymous regions’ sales on Easy Street in the modern era.

In the United States, our pioneers leaned on harmonizing variety with place. Napa Cabernet, Willamette Valley Pinot Noir, Paso Robles Cabernet, Yakima Valley Riesling.

Perhaps Washington State’s greatest strength is that it is largely undefined. In a slanting steppe, scoured by floods, vines struggle to thrive on fractured basalt clinging to windswept mountainsides. When the grapes are farmed and vilified by the artists, the wines produced are singular. What if Washington wines were sold by their place names. Candy Mountain, Elephant Mountain, Walla Walla. These fanciful names could carry labels to newly found consumers. Consumers would find wines of identity, illuminated in these beautiful places with Tolkien-esque names.

In many vintages, Merlot and Syrah are the best red wines produced in Washington, but consumers don’t care. What if they were given blends of both (or whatever could be best vinified harmoniously from a singular place) with the marketing focused on the place and the people, instead of the blend composition. Sell the place and let them taste it. Sell a vineyard name or an unforgettable place. When the place is sold effectively, its producers and consumers all benefit.

Estado de la Cooperación

A raíz de la disminución de la demanda de uva por parte de las grandes bodegas del estado de Washington, existe una necesidad inmediata de resolver el impacto que esto ha tenido en el suministro de vino a granel. El impacto es doble en el mercado de uvas para vinificación debido a la disminución de la demanda y al hecho de que el vino a granel almacenado se está convirtiendo en un factor limitante para el almacenamiento de acero inoxidable y barriles en el estado de Washington. Las tendencias actuales en el mercado global indican que es poco probable que un productor trascendente venga y rescate el mercado de vino y uva a granel del estado de Washington de este excedente a cualquier precio.

Se ha barajado la idea de que los productores de uvas para vinificación y los productores de vino a granel de Washington están colaborando para formar una cooperativa de destilación para convertir los vinos excedentes en material de destilación. Generar productos cultivados en el estado de Washington, como RTD, bebidas espirituosas claras como vodka y ginebra, así como proyectos a más largo plazo como whiskies y brandys. Lo que se ha convertido en un bien oneroso podría revisarse como una oportunidad para abrir nuevos mercados y encontrar nuevas soluciones a los problemas de exceso de oferta.

La conciencia social se ha convertido en un indicador del interés de los consumidores jóvenes por los productos de consumo. Apoyar a los agricultores que trabajan en torno a la sostenibilidad empresarial y ecológica podría resultar atractivo para estos grupos demográficos menores de 40 años, y no carece de precedentes.

Treetop y Welch han demostrado que las cooperativas dirigidas por agricultores pueden ser modelos exitosos para convertir un excedente en valor agregado. La cooperativa Produttori de Barbaresco se ha convertido en una marca global, aportando un gran reconocimiento a los vinos de esta región en modelos de viñedo único y colectivo.

Cuando ha quedado claro que no hay una figura redentora de la industria del vino que proporcione una solución a los problemas de exceso de oferta del estado de Washington, entonces la solución debe venir desde adentro. La idea de que la diversificada comunidad agrícola de Washington ha estado infrarrepresentada en nuestro marketing y narración colectiva ha sido discutida en círculos agrarios, pero aún no se ha actuado en consecuencia en esfuerzos concertados. Ha llegado la oportunidad de tomar un megáfono global y contar la hermosa historia agrícola de Washington.

State of Cooperation

In the wake of decreasing grape demands from large wineries in Washington State there is an immediate need to resolve the impact that this has had on bulk wine supply. The impact is dual on the wine grape market due to decreased demand and bulk wine in storage becoming a limiting factor on stainless and barrel storage in Washington State. Current trends in the global market indicate that it is unlikely that a transcendant producer will come and rescue Washington State’s bulk wine and grape market from this surplus at any price.

The idea has been bandied about regarding Washington’s wine grape growers and bulk wine producers coolaborating to form a distillation cooperative to convert surplus wines into distillation material. Generating Washington State grown products such as RTDs, clear spirits like vodka and gin, as well as longer term projects like whiskeys and brandys. What has become a burdensome commodity could be re-viewed as an opportunity to breach new markets and find new solutions to the oversupply issues.

Social consciousness has become a bellwether of young consumer’s interest in consumable products. Supporting farmers doing work around business and ecological sustainability could be compelling to these sub 40 demographics, and it isn’t without precedent.

Treetop and Welch’s have proven that farmer led cooperatives can be successful models for turning a surplus into a value add. Barbaresco’s Produttori cooperative has become a global brand, bringing great acclaim to the wines of this region in single vineyard and collective models.

When it has become clear that there is no redeeming figure from the wine industry providing a solution to Washington State’s over supply woes, then the solution must come from within. The idea that Washington’s diversified agricultural community has been under represented in our collective marketing and storytelling has been discussed in agrarian circles, but not yet acted upon in concerted efforts. The opportunity has arrived to grab a global megaphone and tell Washington’s beautiful agricultural story.

What can the Wine Industry Learn from the Food Network?

What pairs better together than the magical combination of food and wine? The combining of these things has inspired historical events, countless romances, and even more life long memories. Something magical happens when foods and wines we love combine harmoniously.

The Food Network has led a cultural revolution in the kitchen. World famous chefs’ tutorial teaching have made American cooks at home believe they can create complex dishes at home that would be the envy of their friends and neighbors. The Food Netwrok and their roster of chefs cultivate a belief in their viewers that what they’re creating in the kitchen is easy to understand, simple to do, and fosters a wide sense of community surrounding what they’re cooking in their studio kitchens.

Every wine industry trade show on the West Coast this winter sang a similar song about the difficulty engaging younger audiences. What if I told you this road map has already been created?

There are myriad online platforms of evangelism from YouTube to Instagram to TikTok. What if winemakers explain the elegant simplicity of wine in a fun way to viewers new and yet to be engaged? Instead of selling wine like an academic lecture, winemakers could create video symposiums drawing their audience to them. It could be simple videos talking about why Chardonnay and Sea Bass or Crab love to hang out together on a starry Friday night or a yarn about the clandestine romance between Sauvignon Blanc and Cabernet Franc that led to a beautiful baby named Cabernet Sauvignon. We all know the stories and they are so fun to tell.

The message needs to be simple, fun, and inviting. The romance of the experience of a glass of wine turning a meal from Manudo into Mozart is one that drew every winemaker and wine drinker to this beautiful art form. Selling wine needs to be a folksy invitation to a joyful experience. The dwindling academic approach that may have worked well in the past may need to head for a dusty corner of a library or history museum as a relic of the past.

The Curious Case of Willamette Valley Chardonnay

Once upon a time, I had a job selling barrels in Willamette Valley. Some of the most thrilling wines I saw in the United States were these energizing and singular Chardonnays from this eponymous region. These wines are alive with minerality, fruit, and electricity!

If we were to judge a wine category’s weight by what is published by wine writers and whose virtues are extolled by somms, then Willamette Valley Chardonnay would be near the top of Wine Mountain.

There appears to be a disconnection between the market at large and the hurricane gale forced buzz surrounding Willamette Valley Chardonnay. The interest is there in pockets, but it hasn’t begun to approach the chorus of buyers seeking to find ways to fill out and increase their Willamette Valley Pinot Noir offerings.

Is it simply a matter of the American consumer identifying Chardonnay as the butter and oak monolith and passing by other wines that don’t identify as such in the Chardonnay category? Perhaps. However, there are dynamic wines across price points in this category, fresh with vibrant acidity, a friend of many types of cuisine, and showing the elegant, flinty reduction that make Burgundian Chardonnays world famous.

Perhaps Willamette Valley Chardonnay represents a great opportunity to reach younger drinkers, turned off by wines carrying high alcohol percentages and lacking freshness. These novel consumers may turn to these wonderful wines if we are able to frame it to them as somewhat undiscovered territory worthy of exploration.

Winter's Kiss

If farming were a novel, the antagonist in the story would be in the form of Mother Nature. The risk of frost, hail, whipping winds, and unforseen events are always in the minds’ eye of every farmer. So many decisions are guided by pre-empting the unpredictable and keeping watch against an undefeatable foe.

It is rarely said that Old Man Winter or Mother Nature are in the business of doleling out favors, but the Washington Wine Industry may well have found themselves in receipt of one of these rare events.

It can be said in a wine industry reeling from downward sales trends and a shrinking market that none have suffered as greatly as grape growers and bulk wine producers in Washington State. Washington State may be carrying more bulk wine than the State of California. This number is shocking because California grows enough grapes to produce 15 times the wine that the state of Washington does.

Nothing was less needed than a bumper crop in Washington in 2024. Enter Old Man Winter.

Negative 15 degrees was experienced in Walla Walla Valley and sustained damaging temperatures were experienced throughout most growing regions in Eastern Washington last weekend.

Although this wasn’t an ideal scenario for growers, it should place an impetus on the buying of 2023 vintage bulk wines to make up for the impending inventory shortfall on 2024 wines. With local demand increasing, and a gap year on 2024 production gives the Washington wine industry the potential to right size bulk wine inventories, create tank space for 2025 wines and realign with a market on the climb 2-3 years hence.

Low Hanging Fruit

Much has been made in the wine industry about the World Health Organization’s decree that no amount of alcohol is healthy for us. I believe it is time for wine to go on the offensive in this discussion. While it is true that wine contains alcohol, it is easy to make the argument that wine is a healthy alternative to many of America’s legal forms of addiction.

Calories/Serving Sugar g/L Sugar/Cal Fat g/L Alcohol kCal

Beverage A 159 1 3 0 7.1

Beverage B 368 49 147 9 0

If I were to tell you that one of these beverages is a glass of wine and the other is one of the top 5 most consumed drinks at Starbucks which would you guess is which?

Beverage A is a 6 oz glass of Cabernet Sauvignon and Beverage B is a 20 oz. Starbucks Caramel Macchiato. These are frequently consumed serving sizes for both of these beverages, respectively.

We reach for our vices for numerous reasons including stress/anxiety, mood alteration, habit patterns, and cravings, to name some. Alcohol and the caffeine/sugar addictions are foremost in American cultural patterns.

This is a single example of a beverage choice. There are thousands of lifestyle choices that we make every week. Can the argument be made that a glass of red wine as a substitution for a caramel macchiato would be a quantifiably healthier decision? It’s safe to say that the answer is yes.

There’s a simple tactic taught in sales training, and that is to attack the low hanging fruit. If wine is competing in the beverage industry, why not make the argument against some of the most abundantly consumed beverages in the United States to which wine is a healthier alternative?

It’s time for the wine industry to go on the offensive.

Savvy?!?

Few things have experienced anti-gravitational success recently in the wine industry like that of Sauvignon Blanc. The Sauvignon Blanc variety is receiving plenty of interest in the grape and bulk wine market in Washington State and Oregon. Scores, sales, and recognition among retailers are all hallmarks of this variety’s growing success trends. Washington State Sauvignon Blancs offer ripe tropical fruit profiles with ample acidity. Willamette Valley’s less planted, put widely sought after editions offer taut acidity backed by heady aromas.

A winemaker’s dream in terms of its stylistic diversity, Sauvignon Blanc is finding broad reception in the wine audience ranging from newly curious to long tenured consumers. In a Washington grape market that is mostly oversupplied, there is plenty of pre-harvest action on wine grapes, juice for shipping, and bulk wine production contracts. There is tangible interest in planting and development in this space for Sauvignon Blanc and its complimentary blending partner, Semillon. The demand for this variety in Oregon at least doubles the planted acreage.

The most important group of wine consumers to the future health of the wine industry is in the 25-40 age range. Capturing the interest of drinkers in this age range creates future potential commercial development for the wine industry. As these drinkers are captured by food friendly, easy to comprehend wines like Sauvignon Blanc, their interest about wine is captivated and their experience broadens. Some creative producers have even floated or initiated the concept of lower calorie Sauvignon Blanc to caper on with broader drinks business trends for lower alcohol/lower calorie consumables.

Sauvignon Blanc checks so many boxes for wine consumers in terms of its versatility, food friendliness, established brand recognition, and durable, growing market presence that the excitement with industry executives surrounding this varietal is palpable.

As Johnny Depp asked us in his Keith Richards-inspired performance in Pirates of the Caribbean, “Ya savvy?!?”

Brave New Washington

Brave New Washington

It has been questioned throughout the wine industry what might the new Washington Industry most greatly resemble? There have been major shifts in the industrial landscape and the future is unknown. The landscape is rapidly changing underneath our feet.

With an eye towards recent actions in the mergers and acquisition market, it appears that luxury and prestige brands hold a strong value. The sales of low priced bottles are reaching double digit monthly and yearly figures across the West Coast. White wine and rosé have now eclipsed red wine in terms of consumption.

Washington made its reputation nationally by making a great bottle of wine for the money. WA’s growth on the national wine scene was in a golden heyday where sub $15/bottle and sub $10/bottle experienced searing, nearly 20 year growth. Washington held itself as a forerunner of over delivery for the price point. In a competitive market, Washington acquitted itself above its fighting weight and clawed out shelf space.

Growth in price points $15-$25/bottle and $50+/bottle show a continued climb in growth. In a market where the pie is shrinking, differentiating a region based on its excellence at higher price points and its gravity as a destination (Hello, Walla Walla) are the points on which Washington could hang its hat into the future. Wineries with hero scores are prominent in Washington and they have been since the 1980s.

The grape market in Washington will surely shrink in the coming years, and it may need to do so to be able to grow again.

The new focus from outside investment eyes are upscale boutique labels that over deliver from exclusive AVAs at high price points. The new reality for Washington could involve an industry similar in size to that of Oregon, with mid sized wineries holding a balanced proportion of the grape marketplace. Washington’s rightful presence on the global marketplace may be better landed in the guise of luxury production, breathtaking destinations, and its natural sustainability with an eye towards the future.

Post Harvest Oregon Report

The Willamette Valley saw an above average production that combined with wines of excellent quality across targeted price points. Harvest came earlier than average, marked by a warm, dry summer. Yields in both Pinot Noir and Chardonnay were above average. There appears to be a bit more surplus on the bulk wine market than in past years in Oregon, which indicates there is opportunity for buyers that have intended to enter this market over the past few years to seize their opportunity.

Yields on the Oregon side of the Walla Walla Valley were below average, but also represented very high quality. For the first time in several years, there will be some small lot bulk wine availability from the Rocks District and from the Walla Walla Valley AVA, and opportunities for producers within and without Oregon to access wines and 2024 grapes from this sought after AVA.

Yields and quality in the Rogue, Illinois, and Appleagate Valley appear to be above and average and quality appears to be good. This market has provided access especially to producers intending to bottle Oregon appellated wines for $30/bottle and under. A great number of California and Oregon based entities have benefited from the excellent quality to price ratios available in this segment of the Oregon bulk wine and grape market.