Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
12.19.2012  
 

Oregon Wines Expand Reach

As sales figures escalate statewide, a popular gift basket company is contracting for its own wine label

 
by Peter Mitham
 
 
wine grape vine cordon
 
Gift basket retailer Harry and David is now selling wine under its own label and hopes to reach 5,000 cases in 2013. Photo by Steve Johnson
Medford, Ore.—While the Oregon wine industry toasted the news the state’s wineries shipped more than 2 million cases of wine last year, the staff at Harry & David Holdings Inc. were packing gift baskets with a line of wines that promise to further boost shipments.

In business since 1934 and based in the southern Oregon city of Medford, Harry and David sells gift baskets filled with locally produced fruit and snacks. Wine from Southern Oregon will now be part of the mix, through an arrangement with Medford vintner Pallet Wine Co. Pallet winemaker Linda Donovan is making the wine for Harry and David, which is bottling it under its own name and license.

“We’ve been offering other labels, but we decided it was time for us to offer our own label, from an Oregon-based company,” Pete Kratz, executive vice president of operations for Harry and David, told Wines & Vines this week, the company’s busiest of the year. “Our roots are from Oregon, with our pears....So it was a natural fit for us.”

Harry and David has long offered a selection Northwest wines, including offerings from King Estate, Adelsheim Vineyards, L’Ecole No. 41 and Chateau Ste. Michelle. The growth in wine production in Southern Oregon made tapping into local grapes a logical progression.

Production on the rise
Southern Oregon wineries produced 1.6 million gallons of wine in 2011, according to a recent report by the Southern Oregon University Research Center, up from 1.3 million gallons in 2010. The production contributed to total state shipments of more than 2 million cases in 2011.

“There’s no question: This year we’re seeing a big increase in the wine that we’re selling that’s Oregon wine, and that’s really driven by our own label,” Kratz said.

Kratz wasn’t able to provide sales figures for the volume of wine Harry and David sells, or to break out the volume of its Northwest wine sales, but the company hopes to bottle 5,000 cases of its own wine in 2013—up from 2,083 cases this year.

With overall sales of $342.6 million in the year ended June 30, 2012, and 70% of Harry and David’s customer base east of the Mississippi, the new winemaking venture is giving Southern Oregon wines high-profile national distribution.

“We’re not the first blazing a trail for great Oregon wine, but it’s nice that we’ve got that reputation out there and we can build on that reputation,” Kratz said. “We think we’re going to have pretty significant exposure.”

Wines include a red blend made from Merlot, Cabernet Sauvignon and Carménère, as well as single-variety wines including Gewürztraminer, Sauvignon Blanc and Viognier; Merlot, Syrah and Tempranillo. Prices range from $15 to $35 per bottle.

“We’re pleased with the initial response,” Kratz said.

Who can buy?
Harry and David can ship direct to customers in 21 states right now and looks forward to maximizing the number by spring 2013. The outlet Harry and David provides for Southern Oregon growers and Oregon wine generally is consistent with long-standing calls for Oregon wine to claim a more prominent place on the national stage.

Several speakers at the 2011 Oregon Wine Industry Symposium in Eugene, Ore., pointed to the opportunities private-label wines offered to heighten the profile of the state’s wine in order to grow sales. And earlier this year, following a market outlook session at this year’s symposium in Portland, Ore., Rob McMillan of Silicon Valley Bank noted that Oregon producers need to leverage the appeal of the state’s wines, which offer good value on the national stage.

“How do you get the message out there that (Oregon wine) is worth as much as these other wines?” he asked.

Raising the profile of Oregon wine promises to be a hot topic at the 2013 Oregon Wine Industry Symposium to be held in Portland on Feb. 19-20. Scheduled speakers include Ted Baseler, CEO of Ste. Michelle Wine Estates regarding “The Importance of the Oregon Brand;” the Wall Street Journal’s Lettie Teague looking at “Oregon from a Global Perspective,” and Chris Sarles and Dan Grunbeck, of Young’s Market offering regional and national perspectives on the makings of a great brand.

SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
October 2014 $570 million
6%
$7,775 million
6%
October 2013 $539 million $7,342 million
     
Direct-to-Consumer Shipments » Month   12 Months  
October 2014 $284 million
18%
$1,751 million
13%
October 2013 $240 million $1,556 million
     
Winery Job Index » Month   12 Months  
October 2014 139
6%
226
18%
October 2013 131 192
     
 
MORE » Released on 11.13.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • November 24-25
     
    World Bulk Wine Exhibition
     
  • December 2-4
     
    Vinitech Sifel in Bordeaux
     
  • December 3
     
    Sustainable/Organic Wine Production Seminar
     
  • December 4
     
    North Coast Wine Industry Expo
     
  • MORE »
 

READER COMMENTS
 
Article: Kluge Saga Continues in Virginia »
 
Not everybody likes Pat Kluge, but she and Moses built a first class winery /...
Reader: Josh Moser
 
Article: Canada Adapts to Kegged Wines »
 
I am a wine agent in Manitoba & there certainly are kegs of cider here....
Reader: Guest
 
Article: What's Your Winery's IP Worth? »
 
If you would like more information on this seminar please visit The Seminar Group's website....
Reader: Danielle Bingham
 
Article: DtC Is Lifeblood of Wineries, Banker Says »
 
Seems like another locical option would be to have more small niche distrbutors. Consolidation of...
Reader: Guest
 
Article: Tasting Wine From PD-Resistant Grapes »
 
Congratulations Andy! Lots of grapebreeders and southern growers will be looking through the catalogs. i...
Reader: Guest
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2015 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Event Service Lead
 St. Helena, CA
DTC, Tasting Room and Retai
 Retail Wine Specialist
 Parker, CO
DTC, Tasting Room and Retai
 Sales Representative
 South Florida, FL
Sales and Marketing
 Landscaper
 Oakville, CA
General Administration and
 Maintenance Mechanic
 Santa Rosa, CA
Winemaking and Production
 Senior Overheads Analy...
 Napa, CA
Finance
 Innovation/A&P Finance...
 Napa, CA
Finance
 Cellar Worker Level 2
 Sonoma, CA
Winemaking and Production
 Vineyard Manager
 Amity, OR
Vineyards
 Jde Programmer
 Tracy, CA
Winemaking and Production
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.