Wines & Vines

November 2011 Equipment, Supplies & Services Issue

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Headlines W NO VEMBER NEWS NEWS BY TE S INITIATIvE TO PRIvATIzE SALES ashington state residents will have another chance to vote for reform of U.S. Wine Drinkers Root for Home Team Economists report consumer bias for domestic wine nomics indicates that even five years ago New Hampshire consumers showed a dis- tinct bias in favor of domestic wines over international competitors. Using a year's worth of sales data for red S wines priced at $25 or less per bottle and sold through the New Hampshire Liquor Commission between July 2005 and July 2006, a team of economists from Sweden and the United States concluded that con- sumer preferences favor U.S. wines. Traditional criteria working against for- eign products include higher import costs that boost price, a smaller selection relative to domestic product and a smaller number of outlets that carry imports. However, the study found that a simple preference for buying American wines is the single most important explanation for the bias, which saw U.S. wines claiming a 54.6% share of the market vs. 14.6% for Australia and 10.6% for France. "Our investigation of the New Hamp- shire wine market leads to the conclusion that preference for domestic goods is an important contributor to home bias on this market," the authors concluded. Northwest reflects change Washington state producers capitalized on the shift last year with a campaign that tar- geted Washington residents and highlighted the variety and value of Washington wines. "When the recession came and the econ- omy changed, the marketplace changed," Noah Goldman of Seattle's Black Bottle 16 Wines & Vines nOVeMBeR 201 1 United States Australia France Italy Spain Chile Argentina South Africa Summary statistics on retail sales at New Hampshire Liquor Commission stores from July 2005 through July 2006. Gastro-Tavern said at the time. "There was a lot more value in Washington wine—and not just the high-end aspects." Ryan Pennington, public relations direc- tor for the Washington State Wine Commis- sion, told Wines & Vines that Washington wines typically claim 20% to 30% of the state's wine consumption. winesandvines.com Learn more: Search keywords "home team." —Peter Mitham eattle, Wash.—Domestic table wine sales are trending ahead of 2010 figures in the United States, and a paper in the Journal of Wine Eco- by Country of Origin Red Wine Sales the state's liquor regulations when they go to the polls Nov. 8. The ballot will include Initiative 1183, a sequel to last year's un- successful Initiative 1100, which also had been spearheaded by Costco Wholesale Corp., the leading proponent of the cur- rent initiative. I-1183 "would close state liquor stores and sell their assets, license private parties to sell and distribute spir- its, set license fees based on sales, regu- late licensees and change regulation of wine distribution." winesandvines.com Learn more: Search keywords "I-1183." County, Calif., winery Sept. 19, realizing a long-time dream after producing Jeff Run- quist Wines at other facilities for 16 years. He plans to crush 190 tons and produce about 12,000 cases of the 2011 vintage. Runquist and his wife Margie purchased their 5-acre Amador property in 2006, part of the historic Peroni Ranch that included a farmhouse built in 1853. The Runquists first built a tasting room and office that opened in 2008. A winesandvines.com Learn more: Search keyword "Runquist." CHARLES KRUG ADDS ATTRACTIONS able to win its delicatessen permit from St. Helena. Wineries in unincorporated Napa County are prohibited from running res- taurants and delis, and only 40,000-case V. Sattui, grandfathered in commercially zoned space, has one. The Krug additions will be part of a remodeling program that will demolish the existing, modest tasting room and relocate it in the two-story, above- ground, 10,000-square-foot Redwood Cel- lar. The redesign will include a picnic area for visitors and an inside lounge. L ocated within the city limits, the 1.35- million-case Charles Krug Winery was FIRST CRUSH AT RUNqUIST WINERY ward-winning winemaker Jeff Runquist began the first crush at his new Amador RICHARD FRIBERG ET AL., JOURNAL OF WINE ECONOMICS

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