Wines & Vines

September 2016 Finance Issue

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September 2016 WINES&VINES 43 GRAPEGROWING year. It didn't happen overnight: It came through consistent quality of fruit and wine and marketing the Napa brand." He declared that "premiumization" is catch- ing on. "A few other areas are starting to be recognized for their quality grapes and wines, including the North Coast and its various AVAs, Chardonnay and Pinot Noir from Monterey County and the Santa Lucia Highlands AVA, Santa Barbara County, Central Coast, Paso Robles and its various AVAs, as well as Lodi and Clarksburg." But, he added, "We need to work with grow- ers in Lodi to help increase the quality to step up the price point. They are in the sweet spot of desirable pricing and demand." He reports that some wineries are favoring new vineyards that are utilizing "premiumiza- tion" methods instead of old established vine- yards. DiBuduo encouraged the members to strive for "premiumization," regardless of where they farmed. "There is an upgrade qual- ity at all price points." He also suggested that they participate actively in local growers' organizations. "Work together to develop a marketing plan and AVA brand." DiBuduo encouraged growers to donate to wine grape research organizations like the National Grape & Wine Initiative, American Vineyard Foundation and the Department of Enology & Viticulture at the University of Cali- fornia, Davis. Growing competition DiBuduo reminded growers of another reason to produce better grapes: competition from over- seas. "Wines sell from $3 to hundreds of dollars per bottle. Bulk wine varies from $1 to $25 per gallon, depending on premium. Don't be fooled that we aren't selling grapes against imports on a daily basis. Don't be fooled that bottled wine isn't coming in and competing against higher priced bottled California wine as well." He related that he recently tried to sell Chardonnay to a major winery. "Their response was, 'I can get bulk Chardonnay for $1.25 per gallon, so I don't need your grapes.' That's cheaper than we can even produce it. My re- sponse to that was, 'But it isn't quality Califor- nia wine. What happens when you can't buy it from that source anymore? Those grapes may not be available down the line.'" Grower 'threats' DiBuduo also mentioned other threats to wine grape growers: • The new minimum wage law will affect not only minimum wage earners but workers up the ladder as well. • AB 1513, the piece rate law for non-produc- tive time going back from July 2012 to De- cember 2015, then January 2016 forward. • Agriculture overtime exception legislation has been reintroduced for working more than 40 hours per week or eight hours per day. • Labor shortages. "People can't find workers." • Powdery mildew. "A weather pattern that has promoted prime conditions." • Vine mealybug • Red blotch DiBuduo, however, painted a positive pic- ture overall. "Wine sales were up 1% instead of the 3% of the past, but 1% is better than no growth." "No wine grape grower should be providing grapes below their cost of production. You are in the business to survive and thrive." —Nat DiBuduo, Allied Grape Growers SUPPORT RESEARCH & WINE INDUSTRY NEEDS THROUGH THE A M E R I C A N V I N E YA R D FO U N D AT I O N P.O. Box 5779, Napa, CA, 94581 • T: (707) 252-6911 Visit our Web site at www.avf.org for information on funding and current research projects N E W W I N E VA R I E T I E S Dr. Matthew Fidelibus' alternative San Joaquin Valley grape variety trials consist of 56 unique selections that identify a number of atypical red and white cultivars that produce attractive wines with good yields in Region 5 climatic conditions. Constellation Wines has cooperated with this work making wine from many of these selections and having them available for tasting at regional presentations. For more information visit AVF.org or contact Dr. Fidelibus at mwfidelibus@ucanr.edu. For a wealth of useful viticulture and enology research and information, visit AVF.org, ngr.ucdavis.edu, asev.org, iv.ucdavis.edu or ngwi.org Finding Solutions Through Research

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