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16 W i n e s & V i n e s n O V e M B e R 2 0 1 4 N O V E M B E R N E W S Top Stories The month in perspective Wine warehouse owner sentenced to prison A U.S. District Court sentenced Brenda Joe Kibbee to nine months in prison and $877,127 in restitu- tion after she pleaded guilty to fail- ing to pay federal excise tax on wine as owner and operator of Monterey Wine Services in California between August 2008 and May 2009. Kib- bee charged her winery customers for the excise taxes but failed to pass the money she collected on to the National Revenue Center. Treasury rejects takeover bids Treasury Wine Estates on Sept. 29 rejected dueling bids for the Aus- tralia-based company, with chief operating of- ficer Michael Clarke say- ing the AUS $ 5 . 2 0 - p e r- share offers f r o m K K R and TPG both undervalued the company. The news sent Trea- sury stock falling even lower, to land at AUS$4.50 per share. Constellation releases earnings report Constellation Brands on Oct. 2 released second-quarter 2015 results, which included a 15.6% increase in adjusted earnings year over year. Rob Sands, Constella- tion's president and chief executive officer, said in a note to investors, "Our wine and spirits performance for the quarter was solid." Overall earnings were dragged down when the company voluntarily recalled packages of 12-ounce Corona Extra bottles that contained glass defects. Chile taps UC Davis as academic partner The government of Chile is seeking to partner with University of Califor- nia, Davis, to establish the UC Davis Life Sciences Innovation Center in Chile. The center would focus on collaborative work between scien- tists at UC Davis and in Chile to strengthen agricultural research and economic development for Chile and the United States. Jackson forms division for Pinot Noir, Chardonnay Jackson Family Wines (JFW) of Santa Rosa, Calif., announced the launch of a new division, West Bur- gundy Wine Group, which will focus on Burgundian varieties. The initial portfolio will include Pinot Noir producers Champ de Reves and Wild Ridge (California), Grand Mo- raine (Willamette Valley, Oregon), Chardonnay producers Chardenet (Sonoma Coast, Calif.), and Moil- lard-Grivot (Cote d'Or, Burgundy). Fred Reno, JFW's vice president of strategic projects, will direct the new division from the company's Carneros Hills Winery. TTB approves 11 AVAs near Paso Robles The U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) on Oct. 9 announced the formation of 11 new American Viticultural Areas within the larger Paso Robles AVA in Cali- fornia's Central Coast. A conjunctive labeling law ensures that the Paso Robles AVA will be listed ahead of the new sub-AVAs: Adelaida Dis- trict, Creston District, El Pomar District, Paso Robles Estrella Dis- trict, Paso Robles Geneseo District, Paso Robles Highlands District, Paso Robles Willow Creek District, San Juan Creek, San Miguel Dis- trict, Santa Margarita Ranch and the Templeton Gap District. Concha y Toro joins forces with Charton Hobbs in Canada Wine and spirits distributor Char- ton Hobbs of Montreal, Quebec, is partnering with Chilean wine com- pany Vina Concha y Toro to repre- sent brands including Fetzer and Bonterra in the Canadian market. Designers of the 50-50 joint venture hope to expand sales in Canada for a portfolio that will eventually in- clude third-party producers. PaperBoy packaging drags down Truett-Hurst profits Truett-Hurst Inc. revealed a $1.2 million operating loss Sept. 26, while releasing the results of its fiscal year ended June 30. The company credited $500,000 of the loss to the bankruptcy of Green- Bottle Ltd., the firm charged with producing packaging for the bottle- shaped cardboard vessel filled with a plastic liner containing red wine and marketed as PaperBoy. (Truett- Hurst has since retained Ecologic Brands Inc. to manufacture the packaging.) CDFA distributes specialty crop grant funding California's Department of Food and Agriculture (CDFA) recently announced awards of $19.88 mil- lion in its 2014 Specialty Crop Block Grant Program. Wine grapes fall under the specialty umbrella, and many grants will benefit the wine industry either directly or tangentially. Grant monies went to fund issues related to disease and pest research, water and irrigation, sustainability and grape and wine marketing. Oregon winery incubator welcomes first client The Southern Oregon Wine Insti- tute is making good on its promise to serve as a business incubator for graduates of the viticulture and enology program at Umpqua Com- munity College (UCC). Paige Cook is the first client at the UCC winery, which has a production capacity of 3,000 cases per year. Graduates who have developed a business plan and secured licensing from the TTB and the Oregon Liquor Control Commission may apply to rent space on campus as alternat- ing proprietors. The owner of Westover Winery in Castro Valley, Calif., announced he would close the 29-year-old winery after the California Division of Labor Standards Enforcement fined him $115,550 for allowing volunteer labor at the 1,200-case facility. The situation has worried staff at many winer- ies that allow—if not charge for—club members to experience harvest by picking grapes and performing other duties. See page 17. An early California wine grape harvest was nearly complete by the start of October, and Oregon and Washington were expected to finish shortly thereafter. Most growers anticipate California's total harvest to be lighter than the previous two vintages, but the Northwest will likely see record hauls. Growers and winemakers reported above-average grape quality. See page 18. In spite of its early start, Cali- fornia wineries are saying the 2014 harvest was a good one. Michael Clarke LATesT NeWs More detail on the news at: winesandvines.com