Wines & Vines

September 2015 Finance Issue

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16 WINES&VINES September 2015 Gallo buys Asti Winery E. & J. Gallo Winery purchased the historic Asti Winery in Clo- verdale, Calif., on July 31 for an undisclosed sum. Treasury Wine Estates revealed its intent to sell the historic structure in late March. The purchase includes ownership of the Souverain wine brand. The winery is permitted to crush 35,000 tons of grapes per year, has senior water rights and a tank capacity of 750,000 gallons. The property is 535 total acres with 275 acres planted to vines. Deal Booth partners with Staglins on Fahrig Ranch S t a g l i n F a m i l y V i n e y a rd a n d Suzanne Deal Booth partnered to purchase the 19-acre Fahrig Ranch vineyard in Rutherford, Calif. The most recent deal follows the 2010 purchase of the 18-acre Bella Oaks Vineyard by the Booth family and its agreement with the Staglins to produce a Booth Bella Oaks vineyard-designate wine under the Staglin Family Vineyard label. The Fahrig Ranch is adjacent to both the Staglin and Booth properties and dates back to the early 1900s, when it was home to a winery. Staglin Family Vineyards released the inaugural 2012 Booth Bella Oaks Vineyard Cabernet Sauvignon earlier this year. Vintage Wine Estates picks up B.R. Cohn Vintage Wine Estates acquired B.R. Cohn Winery in Glen Ellen, Calif., from Bruce Cohn, who founded the winery in 1974. The 50,000-case winery is known for producing Cabernet Sauvignon from its 61-acre Olive Hill Vineyard. Oregon vineyard alleges herbicide drift Willamette Valley Vineyards near Salem, Ore., filed a lawsuit seek- ing double or triple the $413,780 it says was lost when herbicide from a nearby farm drifted into a Pinot Noir vineyard in 2013 and destroyed 12.7 tons of grapes destined for high-end wine. The defendant, Five Cent Farm, denies the charges, saying the Department of Agriculture didn't issue a citation against the grass-seed grower. B.C. wineries can serve like restaurants British Columbia wineries will be allowed to offer a full range of liquor under the latest reform implemented following a 2013 review of the province's liquor policies. On July 28, the B.C. Liquor Control and Licensing Branch issued a policy directive, which "allows wineries, breweries and distilleries with a lounge or SEA (special event area) to sell a limited amount of liquor in addition to that which they manufacture themselves." Sonoma County vineyard changes hands Vineyard investment fund Russian River Partners bought a 500-acre property that includes the 31-acre Platt Vineyard planted to Pinot Noir, Chardonnay and Riesling in 2003 near the Sonoma County town of Freestone, Calif. The purchase follows the company's recent acquisition of 29 acres of Pinot Noir and Chardonnay in the Russian River Valley AVA. Hill sentenced to year in jail A Napa County Superior Court judge sentenced Jeffry Hill to a year in jail Aug. 11 for steal- ing more than $50,000 worth of grapes from a Howell Mountain vineyard owned by David Del Dotto in October 2013. The theft was reported by an employee of Hill, who was underreporting bin counts and sending the grapes to his own winery. Hill, who had owned a vineyard-management company and winery, declared bankruptcy after pleading no contest to two counts of grand theft in 2014. Branagan family sells 30 acres in Carneros AVA Rutherford Wine Co. purchased 30 acres from the Branagan family on the Napa County side of the Carneros AVA. The 340,000-case producer had been purchasing fruit from the vineyard and plans to include it in their Rutherford Ranch and Scott Family Estate wines. Randall Grahm announces new wine grape project Winemaker Randall Grahm started a crowdfunding campaign to raise $150,000 for breeding 10,000 new grape cultivars that would be planted in his Popelouchum vineyard in San Juan Bautista, Calif., and blended into a cuvée. As of Aug. 14, 504 people had contributed to the project, raising a total of $62,115. Monterey adopts conjunctive labeling law California Gov. Jerry Brown signed a bill Aug. 11 requiring Mon- terey County wine producers that identify a subappellation located entirely within county limits to also include "Monterey County" on their labels. The rule will take effect Jan. 1, 2019. Distillery invests in wine Corsair Distillery of Nashville, Tenn., the 15,000-case producer of Triple Smoke Whiskey, intends to start producing wine and brandy at a new 10,000-square-foot facility outside of Music City. The com- pany plans to introduce the new additions to its portfolio by 2017. The California-based Wine Institute is teaming up with three wineries and the Napa Valley Vintners in an attempt to thwart a Chicago attorney who has been ensnaring unsuspecting wineries in a tax loophole and collecting 25% of the penalties. Attorneys for Wine Institute have contacted the state legislature about clarifying the issue of use tax on ship- ping and handling and promise they'll go to court if necessary. See page 17. Picking got off to an early start in California and Washington state, with some wineries calling 2015 the earliest vintage ever. Grapegrowers attributed the record-breaking start date to a warm spring and dry soils. While experts don't expect another giant harvest in California, winemak- ers seem happy with the quality of grapes being crushed. See page 18. LATEST NEWS More detail on the news at winesandvines.com Top Stories The month in perspective Bruce Cohn Randall Grahm

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