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14 WINES&VINES December 2015 Wine production up 2% A report from the International Or- ganisation of Vine and Wine esti- mates that global wine production increased 2% in 2015 to reach 7.28 billion gallons. U.S. wine volume grew 0.5% in 2015, according to OIV, while wine volumes in Italy were up 10%, and wine production in Chile grew a whopping 22.6% this year. Constellation shareholders exercise 2 million options Richard and Robert Sands, chair- man and CEO of Constellation Brands, plan to exercise 2 million options to fund philanthropic do- nations and estate planning, ac- cording to NASDAQ. With 30 million shares, the Sands family will con- tinue to be the largest shareholder for Constellation Brands. Oregon to host Terroir Congress The Oregon wine country will open its doors to the world for the bien- nial congress of the Society of In- ternational Terroir Experts, which will meet July 10-14, 2016, in McMinnville. Organized by South- ern Oregon University in Ashland, Ore., and hosted by McMinnville's Linfield College, the International Terroir Congress has issued a call for papers that consider both the physical and cultural aspects of terroir to ensure a well-rounded understanding of the concept as both a viticultural reality and one with appeal among consumers. FTC approves Treasury-Diageo deal The U.S. Federal Trade Commis- sion reviewed Treasury Wine Es- tates' bid to purchase Diageo's wine operations for $552 million and did not raise any objections. TWE also will assume $48 million worth of leases as part of the deal. The acquisition is expected to be complete by year's end. Diageo to sell Chalone Chalone Vineyards of Monterey County, Calif., the only wine brand retained by Diageo from its sale to Treasury Wine Estates, is being of- fered for sale, according to Shan- ken News Daily. The winery is also for sale. New owners for Silverado Trail property Jim Frost and Matt Ospeck pur- chased the Silverado Trail winery formerly occupied by Hill Wine Co. for $11.2 million. The new owners will use the facility to house their AuburnJames Winery brand. The 5.67-acre site has a 180-foot pri- vate well and is permitted to pro- duce 55,000 gallons of wine (or 100,000 gallons, conditional upon septic improvements). Police search for wine thief East Coast police departments are searching for a 25-year-old man believed to have stolen high- end wines from locations in New York, New Jersey, Connecticut and Rhode Island. The suspect, Scott Deluca of Wynantskill, N.Y., is be- lieved responsible for at least six thefts including a $4,800 bottle of 1990 Chateau Petrus swiped from the Octagon restaurant in Groton, Conn., as well as two bottles worth $1,858 that were taken from a liquor store in Bernardsville, N.J. Police believe the suspect identifies spe- cific bottles prior to the thefts and targets them. Fetzer earns B Corp. status Fetzer Vineyards is now the largest U.S. winery to achieve certification under B Corporation for sustainable businesses. The company has 960 acres of organic vineyards and 260 Biodynamic vineyard acres. While announcing its certification, Fetzer pledged to become "net positive" by 2030, meaning it will replenish as much water, energy and other resources as it uses to conduct business. Other B Corp. wineries include Sokol Blosser, Winderlea and A to Z Wineworks (all in Or- egon) and Tulip Winery of Israel. Chanel buys St. Supéry Robert Skalli, founder of St. Supéry Vineyards & Winery, agreed to sell the winery and 1,500 acres—includ- ing more than 500 acres planted to vineyard—to French fashion house Chanel Inc. Located in the Ruth- erford appellation of Napa Valley, St. Supéry produces 120,000 cases of Cabernet Sauvignon, Sauvignon Blanc and other still wines per year, according to Wines Vines Analytics. Chanel owns two wineries in the Bordeaux region of France. Ste. Michelle sees sales, volume growth Ste. Michelle Wine Estates of Woodinville, Wash., posted 8.5% sales growth in the third quarter and an 8% jump in net revenue for the first nine months of its fiscal year, according to Shanken News Daily. The company's 14 Hands brand grew by 18% in both volume and value in the off-premise channel, IRI reported. Board OKs mealybug, fanleaf virus research T h e P i e rc e 's D i s e a s e / G l a s s y - W i n g e d S h a r p s h o o t e r B o a r d voted Oct. 19 to allow funds from the PD/GWSS assessment to re- search mealybug and grapevine fanleaf virus. The same day board members toured vineyards in Kern County, where an increase in GWSS has been noted this year. Crimson sales up 5% Crimson Wine Group, which owns s e v e n w i n e b r a n d s i n c l u d i n g Seghesio and Pine Ridge, posted 5% growth in net sales for the first nine months of its fiscal year. Di- rect-to-consumer wine sales grew by 6%, while the wholesale channel saw an increase of 5%. Top distributors announce mergers Four of the country's top six distributors of alcoholic beverages announced plans to form alliances this fall, promising to change the landscape of wine sales in many states. Charmer-Sunbelt Group, the third-largest U.S. distributor, on Oct. 20 signed a letter of intent to form an alliance with Wirtz Beverage Group, the No. 6 distributor in the country. Days later, No. 1 distributor Southern Wine & Spirits announced a similar alliance with Glazer's, the fourth-largest alcoholic beverage distributor. Both of the alliances promise an expanded sales network better able to serve the entire United States, where regulations mandate three-tier sales of wine and other alcoholic drinks. See page 15. LATEST NEWS More detail on the news at winesandvines.com Top Stories The month in perspective