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16 WINES&VINES May 2015 Gallo buys sparkling producer J E. & J. Gallo Winery agreed to purchase Healdsburg, Calif.-based wine producer J Vineyards & Win- ery. Judy Jordan, daughter of Jor- dan Vineyard & Winery founders Tom and Sally Jordan, founded the Russian River Valley winery in 1986. The purchase also includes more than 300 acres spread over nine vineyards. Beringer introduces 'flavor strips' Beringer Vineyards last month an- nounced a new on-premise pro- gram to allow consumers to sample the taste of three of its wines through non-alcoholic "fla- vor strips." Mounted in the wine section of select Kroger stores, the tasting stations dispense the strips loaded with flavors including Chardonnay, white Zinfandel and Cabernet Sauvignon. Price launches Sonoma wine brand Price Family Vineyards owner Bill Price and vintner Sam Spencer partnered to launch Head High wines, a 7,000-case project they plan to grow "exponentially" dur- ing the next few years. The Head High portfolio currently includes a Sonoma Coast Pinot Noir and rosé as well as a North Coast red blend. Grapes for the brand will come from Price and Spencer's vineyards as well as other North Coast properties. Developer buys Copia ACA Financial Guaranty Corp. announced March 12 it had se- lected Seattle, Wash.-based Triad Development to purchase and redevelop the former Copia prop- erty located at 500 First St. in downtown Napa, Calif. (ACA is the insurer of the bonds that funded Copia, which closed in December 2008 and filed for bankruptcy.) Triad intends to transform the site into mixed-use property including retail space and possible housing. Napa murder-suicide Winemaker Robert Dahl fatally shot investor Emad Tawfilis on March 17 in Dahl's Napa Valley vineyard. Responding to a 911 call placed by Tawfilis, sheriff's depu- ties who arrived at the crime scene were led on a high-speed chase that ended with Dahl shooting himself. Dahl was the subject of multiple lawsuits including one filed by Tawfilis' company, Lex- ington Street Investments LLC. Tawfilis alleged that Dahl misap- propriated more than $1 million from the investor. Wine seller alleges conspiracy Potomac, Md.-based retailer Total Wine & More sent a cease-and- desist letter to nine Twin Cities- area towns with city-owned liquor stores. The retailer alleges the city-owned retailers are col- lectively working against Total Wine & More, a violation of fed- eral and state antitrust laws. Treasury to sell Asti Treasury Wine Estates announced March 30 that it would sell the historic Asti Winery and its sur- rounding vineyards as part of cost-cutting efforts in its financial turnaround strategy. The prop- erty, established in 1881 in north- e r n S o n o m a C o u n t y, C a l i f. , contains 536 total acres, 275 of which are planted mostly to clas- sic Bordeaux grapes. Asti is per- mitted to produce 2.5 million cases annually and has tank ca- pacity of 750,000 gallons. Stone launches Lingua Franca Winery consultant Larry Stone plans to crush the inaugural vin- tage of his new winery, Lingua Franca, this year in the Eola-Amity Hills of Oregon, according to Wine Spectator. Stone, a master som- melier who has managed Rubicon Estate and Evening Land Vine- yards, has planted 56 acres of Pinot Noir and 10 acres of Char- donnay in preparation for the launch. He plans to rent space at Coelho winery during harvest. Kurniawan appeals conviction Infamous wine counterfeiter Rudy Kurniawan filed an appeal of his conviction in the Second Circuit Court of Appeals in New York. Kurniawan, who was sentenced to 10 years in prison, alleges that authorities conducted improper searches of his California home, the results of which should not have been admissible at trial, among other concerns. Naked Wines bought by UK retailer UK wine merchant Majestic pur- chased the web-based retailer Naked Wines for $104 million and appointed its founder Rowan Gormley as CEO, reported The Drinks Business. Naked Wines sells memberships to consumers and hires veteran winemakers, includ- ing Americans, to produce special bottlings for the members. In a statement, Gormley said Naked Wines had been "on the search for a new investor" following a 40% increase in sales from 2013 to the end of 2014 to $110 million. Constellation Brands initiates dividend The board of directors at Constel- lation Brands on April 9 an- nounced the approval of a plan to pay quarterly dividends to share- holders. The initial cash dividend amounts to 31 cents per share of Class A Common Stock and 28 cents per share of Class B Common Stock effective May 8. The com- pany also announced that consoli- dated net sales were up 24% in the fiscal fourth quarter, buoyed by gains among Constellation's Mexi- can beer brands, while spirits and wine sales were up 1%. DtC profitable at Crimson Crimson Wine Group's direct-to- consumer sales comprised 38% of wine revenues but only 11% of case sales, according to an SEC filing for the 315,000-case wine producer. The Napa-based com- pany also revealed its intent to increase production at Seghesio Family Vineyards by 47%. California Gov. Jerry Brown took strong action to coun- teract effects of the state's ongoing drought in April, ordering cities and towns to cut back water use by 25%. While his plan largely left agriculture untouched, it does require more frequent water- use reporting from growers. See page 17. A lawsuit seeking class- action status alleges that bottles from several large wine producers contain ar- senic in amounts above the legal limit for drinking water. Meanwhile, industry organizations have called the claim "unfounded," stating the trace amounts detected are unlikely to have any effect on human health. See page 18. LATEST NEWS More detail on the news at winesandvines.com Top Stories The month in perspective n Exceptional drought n Extreme drought n Severe drought n Moderate drought n Abnormally dry