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Editor's Letter

by Jim Gordon
 

How Important Is Packaging to a Brand's Success?

 
 

WHAT BETTER PLACE than the annual Packaging Issue to announce that the Wines & Vines Packaging Conference is coming back for a second year? Please mark your calendars now for Aug. 19 in Napa, Calif., where the second annual one-day conference and trade show focusing exclusively on wine packaging will convene.

 
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Viewpoint

by Gabriel Froymovich
 

How to Get the Most From an AVA Appraisal

 
 

Winegrowers in well-regarded appellations have been neglecting to make the best investment they can: the amortization of their vineyard’s appellation value. When a grower purchases a vineyard, he purchases not only the land and the vineyard planted on it, but also an intangible asset—the right for his grapes to be bottled and labeled with the name of the American Viticutural Area (AVA).

This distinction is important, as land cannot be depreciated as an expense against income. The intangible asset’s value, however, can be amortized over the course of 15 years. This rule applies to any vineyards purchased after 1993. It only applies to vineyards whose appellation actually creates value beyond what the land itself creates. For instance, vineyard land does not sell for a premium because it is in the Madera AVA, but it does sell at a premium because it is in the Oakville AVA. The former has no AVA value to appraise and amortize; the latter most certainly does.

 
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Grounded Grapegrowing

by Glenn McGourty
 

Creating Effective Weed Control  Access to this article requires a subsciption.

 
 
Vineyard row middles are often covered with living vegetation at least part of the year, usually during the winter. Growers may plant row middles with cover crops or allow weeds and other self-seeding plants to grow, generating living material (biomass). In the past I have written about cover crops and the numerous benefits this plant material brings for vineyard soil health, chemical and physical properties. Growing live vegetation in row middles can make huge differences for soil water storage, soil fertility and vine performance. In this part of the vineyard floor, it is fairly easy to control unwanted vegetation (weeds) by mowing, tilling and occasionally spraying herbicides (not needed in most cases.)

 
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Vineyard View

by Cliff Ohmart
 

Lodi Rules Program Turns 10  Access to this article requires a subsciption.

 
 

One of the most common questions I am asked by growers trying to decide whether to participate in a sustainable farming program is, “What’s in it for me?” How does a 1,000% return on investment sound? That was the 2013 ROI for participants in the Lodi Rules for Sustainable Winegrowing Certification program, which celebrates its 10th anniversary this year.

 
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Inquiring Winemaker

by Tim Patterson
 

In Search of Grapevines and Terroir  Access to this article requires a subsciption.

 
 

WARNING: This column, normally about winemaking topics, is entirely devoted to grapegrowing. Worse, it makes fun of several long-cherished beliefs about grapes and their contribution to wine. But at least I do quote Glenn McGourty, another writer for this magazine and someone who actually does know a lot about grapes, to help with the demolition.

 
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Marketing Matters

by Dixie Lee Huey
 

Managing Direct Consumer Sales  Access to this article requires a subsciption.

 
 

There have been some particularly hot challenge topics in the industry during the past few years—distributor consolidation, price pressure, brand proliferation and, of course, the economy. These trends and the down part of the economic cycle are real, and in an acute way they necessitate a focus on marketing-driven sales strategies. Wishful thinking, status quo and avoidance do not sell wine. Thankfully, proactive measures do, especially when implemented on a consistent basis, measured and improved for maximum efficacy.

 
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Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
April 2015 $627 million
5%
$8,028 million
5%
April 2014 $595 million $7,623 million
     
Direct-to-Consumer Shipments » Month   12 Months  
April 2015 $184 million
17%
$1,890 million
15%
April 2014 $157 million $1,649 million
     
Winery Job Index » Month   12 Months  
April 2015 406
34%
252
19%
April 2014 302 212
     
 
MORE » Released on 05.15.2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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