Issue link: http://winesandvines.uberflip.com/i/816747
22 WINES&VINES May 2017 WINE INDUSTRY NEWS P aso Robles, Calif.—Detailing how an already tight market could become much tighter if the new administration in Washington, D.C., follows through on its promises of even more stringent border en- forcement and deportations, Steve McIntyre said he did not have much good news for at- tendees of the annual WiVi Central Coast Con- ference & Tradeshow held in March. McIntyre is the founder and owner of Monterey Pacific Inc., which manages more than 12,000 acres of vineyards in Monterey County and also pro- duces wines through Monterey Wine Co. If, for example, the federal government requires farm-labor contractors, vineyards and wineries to begin using its E-Verify system to check employment status, it could create major challenges. "If we're forced to use E-verify, we've got some real issues coming down the pike," McIntyre said. If the Feds move to force the use of E-Verify, that could serve as a trigger to force more companies to get involved with the H-2A visa program, which may provide some relief. The visa program allows workers to enter the United States for up to 11 months. Employers must pay those workers $12.57 per hour as well as provide lodging and meals. The visa program could bring some new workers into the industry, but perhaps not enough to balance the losses from E-Verify. McIntyre described a hypothetical scenario in which workers who have been in the country for years, own property and whose children are citizens won't be able to get work because of E-Verify, but new workers who have never been in the United States would be doing pretty well. The worker who couldn't get a job because of E-Verify also couldn't cross the border to try and snag an H-2A visa. "If they know you've been up here, you're not coming back," Mc- Intyre said. A worker with an H-2A visa will earn about $2 more per hour on average than a domestic worker, but McIntyre said they can also be twice as productive. The biggest challenge is housing, and McIntyre said workers are living in campgrounds and even some apartment complexes that have been purchased outright by agricultural companies. Also during the conference, Jeff O'Neill said Paso Robles, Calif., offers an excellent chance to capitalize on two trends in wine sales: pre- miumization and red blends. He was a founder of Golden State Vintners, which he sold to The Wine Group in a deal worth $111 million. He then launched O'Neill Vintners & Distillers, which last year purchased 80,000-case Robert Hall Winery in Paso Robles. O'Neill said the AVA is an excellent source of wine grapes that can be vinified and sold competitively for $14-$20 per bottle. He added, "We are really, really delighted to have become part of the opportunity here in Paso." —Andrew Adams Vineyard Manager: Immigration Trouble Looming for Wine Industry " If we're forced to use E-verify, we've got some real issues coming down the pike." —Steve McIntyre, Monterey Pacific Inc.