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JANUARY NEWS Top Stories announced a new Washington state label, Canvasback, focusing on Cabernet Sauvignon—one of the grapes that built its reputation in California, but at a discount from California. But if Banfi bought a winery—as Precept Wine Brands did with Waterbrook Winery in 2006 and Canoe Ridge Vineyards and Sageland Vineyards in 2011, and E. & J. Gallo with the purchase of Columbia Valley and Covey Run in 2012—transactions this year have focused on vineyard purchases. Zepponi expects these to become more common. "It's easier for a lot of outsiders to purchase vineyards and experiment with branding Benton City, Wash.—When the Aquilini and wine quality," he told Wines & Vines. Washington state makes wines to rival those of Investment Group of British Columbia on Nov. 23 This is what makes the new Duckhorn label California, but the economics of vineyard estabbid $8.8 million (including buyer's premium) for different from many other ventures. The label lishment and production are often more attrac670 acres that the Kennewick Irrigation District has been launched without a physical site (the tive than in Sonoma, Napa and California's was offering in the high-priced grape-growing disinitial vintages are being produced at Artifex in Central Coast. trict of Red Mountain, tongues started wagging. Walla Walla, Wash.), and a winery on a 20-acre He points to Long Island, N.Y.-based Banfi Aside from a dairy farm at Sunnyside, Wash., site Duckhorn acquired in December remains Vintners' purchase of Pacific Rim Winemakers in the Aquilini company's activities were little known "dreams, not plans," according to Duckhorn 2010 as an acquisition that gave an outside winto the 38 other parties vying for a slice of one of president and CEO Alex Ryan. ery a significant producer in a relatively low-cost Washington state's most desired viticultural Jackson Family Wines purchased 1,369 acres region. Similarly, Duckhorn Vineyards has areas. But with a stated comwest of Salem, Ore., in the EolaMajor Northwest Acquisitions in 2013 mitment to developing vineAmity Hills and Yamhill-Carlton yards, Aquilini is keeping its AVAs, while Seattle-based PreProperty Acres Buyer AVA neighbors watching to see cept acquired the 374-acre Zena East, Zena Middle 819 Jackson Family Wines Eola-Amity Hills and Maple Grove vineyards what comes next. And accordYamhela property, also in the Kennewick Irrigation ing to industry observers, that Yamhill-Carlton AVA. 670 Aquilini Investment Group Red Mountain District lands, 31 parcels may be more of the outside Precept also acquired a 174Zena West and Eola-Amity Hills investment the region has seen acre vineyard in the Yakima 550 Jackson Family Wines Gran Moraine vineyards and Yamhill Carlton in recent years. Valley, south of Red Mountain, Yamhela Vineyard 374 Precept Wine Brands Yamhill-Carlton Mario Zepponi, a partner at with grapes supplying its existSkyfall Vineyard 174 Precept Wine Brands Yakima Valley Santa Rosa, Calif.-based Zeping program. Green Vineyard LLC lands 174 Michael Corliss Red Mountain poni & Co., contends that —Peter Mitham The month in perspective Duckhorn Deal Ends Year of Northwest Investment Driest Year on Record Underlines California's Water Challenges Sacramento, Calif.—With California enduring its driest year since records began in 1895, the state's long-predicted water issues are coming to a head. Almost 85% of the state was in severe drought in mid-December, including major grape-growing areas in Kern, Santa Barbara, San Luis Obispo and parts of eight other counties. Only mild weather that reduced the need for frost protection saved many grapegrowers from running out of water in North Coastal areas in 2013. Water news comes from all over the state: • alling groundwater levels east of F Paso Robles, Calif., prompted county supervisors to ban planting. 16 W in e s & V i ne s JANUARY 20 14 • ov. Jerry Brown proposed two G tunnels to take water to the Central Valley and Southern California. • endocino County has conM ducted detailed studies of two watersheds (see page 42). • onitoring and control of M groundwater seems inevitable. San Luis Obispo County supervisors on Dec. 17 directed the Public Works Department to establish a water district to manage the Paso Robles groundwater basin. They previously approved an emergency ordinance halting new development or planting of irrigated crops within the Paso Robles groundwater basin unless water use could be offset. The county has 345 wineries and Red areas received 25% or less of normal precipitation in 2013. 27,600 acres of wine grapes. A recent water balance audit showed that the basin can provide 89,200 acre-feet of water annually without depleting it. The audit determined that the basin lost an average of 2,900 acre-feet per year from 1980 to 2011 through drought and over-pumping. As a result, water levels have dropped east of Paso Robles, with some wells going dry. Meanwhile, California lawmakers continue to debate a plan to bypass the Sacramento-San Joaquin Delta and transport water from the Sacramento River in the north through twin tunnels to the San Joaquin Valley and Southern California. The first complete look at the project was released Dec. 16 in 34,000 pages of documents. The goal of the tunnel plan is to improve wildlife habitat in the Delta and ensure water to 25 million people and 3 million acres of farms, including 73,957 acres of wine grapes in San Joaquin, Calaveras and Contra Costa counties. —PAUL FRANSON