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| February 8th 2007 |
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| California, where dreams come true |
by Ina Hohensee
Today California is one of the leading wine industries in the world. One key to maintaining this leadership position is to further invest in the environment.
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America will soon drink more wine than france
California is by far the most productive winegrowing region in the United States, with 90% of all American wines bottled in the Golden State, named in reference to the Gold Rush of the 1850s. Today, California is no longer only famous for Hollywood and high tech, but also for its wines. Within only a few decades, the sunny state has risen from being a minor player to becoming the fourth-largest wine producer in the world behind France, Italy and Spain.
A rollercoaster ride is how many Californian vintners describe last season’s harvest. Winemaker Kerry Damskey of Charles Creek Vineyard in Sonoma County noted that it was a “year of peaks, valleys and peaks.” And indeed, extreme weather conditions, with a rainy winter and spring as well as a heat spell in July, kept vintners on their toes. Although challenging, the vintage was hailed as ultimately successful throughout California’s diverse wine-growing regions. The grapes came into the wineries at full ripeness, with balanced acids and flavors. Tonnage, however, was significantly lower than in the previous years. The overall yield for the 2006 harvest is estimated to be 3 million tons, well below 2005’s record-breaking 3.75 million tons. While the supplies of Merlot, Cabernet Sauvignon and Syrah are still abundant, even after a smaller harvest, vintners would like to have harvested more Pinot Noir, currently California’s hottest grape. Pinot Noir is in short supply, even though the yield almost tripled within the last decade and reached 94.74 tons. Sales in the U.S., in turn, climbed 70% in 2005.
Not just Pinot Noir, but wine in general, is becoming increasingly popular in the United States. A study commissioned by Vinexpo predicts that Americans will surpass the French in wine consumption by 2008, which will make the US the largest wine market in the world. Some 2.8 billion liters of wine will be consumed in the US in 2008, which is approximately 25% of all the wines produced worldwide. Currently, California’s wine cellars are filled almost to capacity, but experts believe there is a need for additional vineyards in the long run to meet future demand. This is not surprising, since total vineyard acreage was reduced by 10% during the surplus years of 2001 to 2004. The cuts affected vine-yards in the Central Valley in particular.
The booming wine industry is not only driven by strong consumer demand in the US, but also by rising interest from abroad. Approximately 15% of all wines are exported, and the those figures are growing rapidly around the globe. Within the past 15 years, sales volume and value more than doubled. In 2005, US wineries sold 388.2 million liters totaling $672 million, with 95% of the wines coming from California. Californian wineries export to more than 125 countries, with the European Union the number one export destination. Exports are mainly driven by leading Californian wine producers such as E&J Gallo Winery, Constellation Brands, Brown-Forman |
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and Foster’s Wine Estates. But small companies have also carved out a niche for themselves in markets abroad.
The way to success
Today, California is by far the most productive wine-growing region in the US, with 90% of all American wines grown in the Golden State, named in reference to the Gold Rush of the 1850s. California is no longer only famous for Hollywood and high tech, but also for its wines. Within only a few decades, the sunny state has risen from being a minor player to becoming the fourth-largest wine producer in the world behind France, Italy and Spain.
“Wine sourced from over 200,000 hec-tares of vineyards is California’s number one finished agricultural product,” says Karen Ross, President of the California Association of Winegrape Growers. “From San Diego County to the Oregon border, California’s great weather and many unique regions allow innovative growers and vintners to produce a diversity of high-quality wines in all price ranges.”
Viticulture is not a recent, 20th-century arrival in California, and Californians can look back on a 250-year-old tradition. The first vineyard was founded in 1769 by the Spanish missionary Junipero Serra in the vicinity of San Diego, but commercial viniculture only started with the discovery of gold in California in 1848. The gold rush brought a slew of new settlers out West. Few of the gold-seeking adventurers were successful, however, and some tried their hand at winemaking instead. The pioneers from France, Italy, Germany, Holland and England were quick to recognize California’s potential. In subsequent years, they brought more than 100 grape varieties from Europe to California.
Zinfandel quickly became one of the preferred varieties. Today, the grape now known as American Heritage Grape is the third most-popular grape variety, with a share of about 10% in the varietal index – surpassed only by Chardonnay and Cabernet Sauvignon. Prohibition was a severe setback. Between 1919 and 1933, production almost stopped completely. It took until the late 1940s before the wine industry regained lost ground.
In the 1960s, California was predominantly known as a producer of simple wines. Since then California has come a long way. Today it enjoys the reputation of being one of the leading quality winegrowing regions in the world. The last decades have seen a lot of research and experiments in the areas of wine growing and production technologies to improve results. New clones, a higher density of plantings, pruning and special trellis systems have led to smaller yields and better quality. At Dominus Estate in Napa Valley, for instance, winemaker Christian Moueix thins the crop once or twice a year to maintain the balance and promote the ideal concentration of fruit. For training the vines, more and more growers throughout California are using the open lyre, Geneva Double Curtain, Scott-Henry, and vertical shoot-positioned trellis systems. Cutting-edge techniques like internet weather service, |
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satellite images, computer-controlled fermentation tanks and fully automated warehouses complement traditional Old World methods.
Winemakers from Europe and the US are also continually exchanging information, which is not too surprising considering that many of the vintners are first- or second-generation immigrants from Europe. A good number of wineries produce wines in the styles of Burgundy or Bordeaux. Many of them favor French oak barrels for aging their wines. Associations like the Rhône Rangers promote growing grapes from the Rhône region – Syrah is a case in point.
A key factor for the success of Californian wines is the location and the climate, including the varied microclimates, of the 2,000 kilometer long costal state. The wine-growing regions lie sheltered between two mountain ranges. The Sierra Nevada is located in the east and the coastal ranges lie to the west. While tourists are often disappointed with the cool and foggy summers in California, the weather is perfect for growing great wines. Near the coast, sunny, warm days alternate with fresh breezes and fog from the Pacific, cooling the vineyards in the evenings. This results in a long growing season, which allows the grapes to ripe slowly and
evenly, bringing about a distinct “fruit forward” quality.
Terroir matters
In the last few years, the concept of
“terroir”, which describes the interaction of soil, climate and grape, has increasingly gained popularity. In the 1980s, many vineyards became infested with Phylloxera and had to be replanted. This was an opportunity to align the choice of grapes with the geological and climatic realities present in the region.
All these efforts paid off. Today California’s approximately 1,500 vintners offer a wide variety of wines as diverse as its producers: cult wines; limited, luxury wines from single-vineyard sites; excellent premium-quality wines; and everyday wines of consistent quality. Most of them make Chardonnay, which is still the leading varietal wine despite the hype surrounding Pinot Noir and Pinot Grigio. Even though there are about 100 other varieties, about 20% of all grapes crushed in California are Chardonnay. California Chardonnay thrives best in the cooler regions of Monterey, Sonoma, Santa Barbara and southern Napa. Still, not all Chardonnays are alike. They vary considerably in style depending on the growing region and the producer. Barrel-fermented California Chardonnays offer rich, intense fruit flavors in combi-nation with buttery and oaky notes. However, in the past few years, many wineries have started making a new, fresher style of Chardonnay with little or no oak and more delicate taste profiles. Sutter Home released an unoaked California Chardonnay, which is one of its best-selling wines in the UK. Robert Pellegrini, winemaker at Pellegrini Vineyards in the Russian River Valley of Sonoma County, makes an unoaked Chardonnay as well. The early-harvested grapes are whole-cluster pressed, fermented and held |
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in stainless steel tanks, and do not undergo malolactic fermentation. The wine boasts fresh green apple-like flavors.
In the past decade, Chardonnay acreage has increased from 25,000ha to almost 37,000ha. The acreages for French Colom-bard and Chenin Blanc, predominantly located in the Central Valley, in turn have decreased from 18,000ha to 11,000ha and from 9,000ha to 4,300ha, respectively. These grapes are mostly used as blending varieties for affordable everyday wines.
Sauvignon Blanc is the second most-important white premium varietal. It is known for its distinct flavor and crisp, tart acidity. The grape first grown in California – more than 100 years ago in gravelly soil in Livermore valley – can nowadays be found in Sonoma, Napa, Lake and Monterey County as well as in portions of the Central Valley. The wine is usually characterized as fruity and faintly herbaceous.
More and more consumers have dis-covered Pinot Grigio and Riesling as alter-natives to Chardonnay, and in 2005, sales of these varietals rose by 25% and 14%, respectively. Californian winemakers, who have grown Pinot Grigio for years, used to consider it to be a labor of love rather than a business. That has changed. Meanwhile, even the large wineries have discovered trendy Pinot Grigio and have started pro-ducing it in larger quantities. Pinot Grigio has more aroma and flavor but lower natural acidity than its cousin, Pinot Blanc. It performs at its best in cooler climates such as Sonoma Coast, Mendocino or Monterey. “The quality of grapes was excellent in Monterey County in the 2005 harvest, especially for white wines,” says Blackstone winemaker Dennis Hill. “It was the perfect year to introduce Pinot Grigio and Riesling.” Wineries such as Kendall-Jackson, Beringer, Fetzer, and Sutter Home are also following the trend and have launched their own lines of Pinot Grigio.
When it comes to red wines, Cabernet is king. The red wine-bearing vineyards are planted up to one-fourth with Cabernet Sauvignon. California Cabernet Sauvignons possesses a full, lingering flavor with tones of blackberries, cherries and other dark fruit. Most of these wines have a fairly firm structure, noticeable tannins and astringency, and can be aged for 10 or 20 years or longer. Cabernet Sauvignon is the grape Napa Valley is most famous for, but excellent wines can also be found in other warmer regions such as Alexander Valley in Sonoma County.
The classic Californian wine, Zinfandel, is grown in about 10% of California’s vine-yards. A big portion goes toward the production of White Zinfandel, and the Sutter Home Winery is the leading producer of this style. Zinfandel, which is a genetically identical twin of Primitivo, is experiencing a renaissance as a red wine and every visitor at the yearly Zinfandel Advocates & Producers Festival (ZAP) in San Francisco can attest to that. Over 250 producers hold tastings and show off this very versatile grape, which has given rise to various wine styles. They range from the |
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refreshing, off-dry Zinfandel wines, to the rich and full-bodied reds, with long fermentation with the skins, a secondary malolactic ferment-ation, and aging in small oak barrels.
Merlot
Merlot is one of the oldest varieties of vitis vinifera. In California, its rise has been dramatic. While merely four producers made a varietal wine from Merlot in 1972, in 1980 there were 66 and today more than 300. And it is still on the rise: in the last decade, plantings rose from 6,000ha to over 21,000ha. The wines produced are medium to deep red, and have openly fruity aromas and flavors, with herbaceous, currant and cherry notes. They are softer and rounder than Cabernet in their youth, yet retain their richness and complexity. Most of the Merlot vines are planted in Lodi, San Joaquin County, followed by Napa, Sonoma and Monterey counties.
In the last decade, California vintners started planting more Syrah and boosted its acreage from 400ha to over 7,000ha. Most of the plantings have occurred since the late 1990s. California Syrah wines are big, bold and age-worthy, pairing deep, dark fruit flavors with an earthy, smoky, peppery complexity. Today, the most acreage is in San Luis Obispo County, with over 1,000ha followed by Sonoma County and San Joaquin County. Syrah’s grape crush of 147,312 tons in 2005 accounted for about 4% of the state’s total.
The trendy variety Pinot Noir got a big boost from Hollywood. Pinot Noir has gained enormous popularity since the US blockbuster Sideways hit the screen in 2004. Before, most of the approximately 100 Pinot Noir labels were the domain of connoisseurs, but the Oscar-nominated movie, filmed in the Santa Barbara region, made the wine popular with a much bigger crowd. Sonoma County is the largest growing region for the grape. Approximately 4,000ha are planted there. But the terroir needs to be carefully chosen. “This is not a grape that can be planted almost anywhere and still yields good varietal characteristics,” says Gina Gallo of Gallo Family Vineyards. “It doesn’t do too well in Dry Creek, but we have discovered that it thrives on the Sonoma Coast and in the Russian River region, where we’ve planted 88 hectares.” Walter Schug, who has been growing Pinot Noir in California since 1973, favors the Russian River area and Carneros, where he opened his own winery in 1980. The deciding factor for choosing the location was the cooler climate. Carneros Pinot Noir is bolder and peppery, with higher acidity and notes of raspberry, strawberry and cherry. Russian River Pinot Noir is more velvety and full-bodied, with notes of black cherry and raspberry. “Naturally, all wines bear the personal stamp of the producer,” says Schug.
At first, the production of Pinot Noir was not an easy endeavor. The American consumer demanded power and impact in wines. “In the mid-90s, the sales of Pinot Noir increased with an emerging second generation of wine-drinkers who recognize and enjoy the elegance, finesse, and the character of |
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the varietals and now even notice differences in terroir,” says Pinot pioneer Schug.
Kendall-Jackson Vineyard Estate, which predominantly produces white wine, has progressively expanded its red wine segment over the last few years and is also betting big on the trendy varietal. Kendall-Jackson plans to increase its offering of Pinot Noir Vintner’s Reserve to 1.2 million bottles within the next decade. A large amount of the grapes is expected to come from the Monterey region, which is the second-largest Pinot Noir growing region in California after Sonoma County– 1,550ha of Pinot Noir are growing in Monterey County at present. The Santa Lucia Mountains, in particualar, are carving out their reputation as an excellent location for the grape. Another important region is Santa Barbara, with 1,175ha.
Farming for the future – Sustainable agriculture
Switching from electricity to 100% solar power is only one of many changes Doug Shafer initiated in his Shafer vineyards in Napa Valley in the past years. He also erected a 500-pound bat roost and many nesting boxes. “You can spray powerful chemicals to rid your vines of these insects, but we prefer to rely on the natural eating habits of bats and songbirds,” he says. Shafer and a growing number of California vintners are farming their sites sustainably. They make their own compost, recycle, and replace fertilizer and insecticides with cover crops to protect the health and soil of the environment.
In its latest report, the California Sustainable Winegrowing Alliance (CSWA) unveiled a 24% increase since 2004 in the number of wineries and vineyard businesses working to adopt practices that are sensitive to the environment and society at large. Today, 33% of California’s total wine grape acreage and 53% of the state’s total annual wine production are grown sustainably. “The California wine industry has embraced sustainable winegrowing because it is comprised predominantly of families and businesses committed to the land and their local communities. Their passion for making the finest quality wine is tied directly to the state’s climate and soil, which are ideal. Preserving valuable natural resources and being a good neighbor are part of the legacy that they are passing on to future generations,” says Robert P. Koch, President and CEO of the Wine Institute.
There is also an increasing number of wineries that adopt certified organic wine-growing and winemaking techniques. Although this practice is growing at a steady pace, organic grapes account only for approximately 2% of all grapes grown in California’s vineyards. The biggest producer of organically grown wine is Bonterra, in Mendocino County. The winery, which is part of the Brown-Forman Corporation, sells 200,000 cases annually. Bonterra uses small amounts of sulfites in its wine as antioxidants and preservatives. Therefore the company has to label its wine with “organic-ally grown” as opposed to “organic wine”, |
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which indicates that wines are free of sulfites. There are more certified organic vineyards than certified organic wineries in the US.
Culinary tourism
Inviting tasting rooms in wineries in Napa, Sonoma and Santa Barbara Counties attract millions of visitors from around the world every year. A preferred destination is Napa Valley. Every year more than 4.5 million international visitors – especially from Canada, Germany, Great Britain and Japan – wine, dine and experience the California lifestyle. The image of the wines is closely linked to the Californian lifestyle. The multi-faceted Californian cuisine, with international and especially Asian influences, corresponds well with the food-friendly wines. First-class restaurants are abundant in the wine regions, but visitors who want to experience true Californian cuisine don’t necessarily have to dine at a star-rated restaurant. There are many bistros in Yountville and St. Helena in Napa Valley or Healdsburg in Sonoma that offer great wines and food. Some wineries have opened restaurants directly on their premises and have recruited excellent chefs. At Wente Vineyards in Livermore Valley, guests can indulge in crispy duck and shiitake mushrooms on fried wontons with Zinfandel Hoisen. At the Etoile Restaurant at Domaine Chandon in Napa Valley, Chef Chris Manning recommends Wild King Salmon and horseradish whipped potatoes with Domaine Chandon Chardonnay 2004. Definitely worth a stop, and a paradise for foodies, is the gourmet grocery store Dean & DeLuca in St. Helena. Visitors find a great selection of regional wines, as well as culinary specialties from artisanal producers throughout California and from all over the world.
But Napa, with its cult Cabernets and top restaurants, is not only a feast for the taste buds. The art of winemaking goes hand in hand with the fine arts. Wineries like Clos Pegas and the Hess Collection host art collections that could make some museum curators green with envy. At times, the architecture of the wineries is an art form in itself. The post-modern winery architecture found at Artesa Winery or Opus One can compete with Gothic- or French Château-style wineries such as Beringer and Niebaum-Coppola.
While Napa is more sophistica|ted, many visitors find the rural charm of Sonoma highly attractive. More and more visitors are also discovering the wine regions around Santa Barbara and go on tasting trips along the wine trails in the Santa Ynez Valley or the Santa Maria Valley.
Copia, The American Center for Wine, Food and the Arts, opened only a few years ago in Napa and combines cuisine and culture under one roof , offering tastings, talks and visiting art exhibitions.
The Appellation System
Today California is one of the leading wine industries in the world. One key to maintaining this leadership position is to further invest in the environment; but beyond sustainable agriculture, highlighting the originality of each soil and microclimate enables the wineries |
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to produce a myriad of styles and flavors that might surprise the casual wine drinker. Of the 157 American Agriculture Areas regulated by the federal government, 94 are in California.
The Bureau of Alcohol, Tobacco and Firearms introduced the American Viticultural Areas (AVA) in 1978. These areas are the foundation of a standardized American appellation system. An appellation origin can be - the name of a state - a county (or counties)
- or an American Viticulture Area (AVA)
When the appellation of origin is a state, for example California, 100% of the grapes in the wine must come from within the state’s borders. A county appellation, such as Sonoma, is a political subdivision, like a province, and at least 75% of the grapes in a wine must come from that county. An appellation of origin com-bining two or a maximum of three counties may be used on the label if all the grapes were grown in the counties indicated, and the percentage of grapes grown in each county is indicated.
AVAs
There are 157 American Viticulture Areas, or AVAs, 94 of which are in California, and the system of AVAs is regulated by the US government. An approved AVA can be distinguished from surrounding areas by geographical features such as climate, soil and elevation, and sometimes by historical data.
The AVAs vary in size. The smallest Californian AVA is Cole Ranch in Mendocino County, which is only 60ha. Others, like the Columbia Valley, extend over the two US states – Oregon and Washington. The North Coast AVA is 1.2 million ha, though this doesn’t necessarily mean that the whole area is planted with grape vines. The approval of an area as an AVA does not endorse the quality of the wine from that area. Thus, the AVA should not be used as the sole criteria in judging a wine. Other key factors to consider are the grape variety and the producer.
AVA regulations do not prescribe winemaking practices in these areas. Unlike other wine-producing countries, the winemaker in California is free to plant the varieties he thinks are best suited for a specific area. The concept of terroir is well understood in California. The winemaker determines the irrigation of the vineyards and can harvest his grapes when they are at their best. He can also determine the optimal production volume per hectare, based on his quality standards and the quality expectations of his customers. Ultimately, it’s the consumer who decides if the winemaker made all the right decisions. Of course, there are strict government regulations for the production of wine that control, for example, the use of pesticides in vineyards and sanitation procedures. Chaptalization – adding sugar during fermentation – is not allowed in California.
New vintage rules
The US regulators recently changed the rules for listing the vintages on the label. Before the new regulations, 95% of grapes had to be harvested in the year indicated on the label. |
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Since the beginning of 2006, wine only has to consist of 85% of grapes from the year listed on the wine label if a county appellation, for example Monterey County, a state appellation, such as California, or an appellation, like the Central Coast, is present. With the new rules, the US is catching up with the European Union, Australia and New Zealand, where the 85% standard is already in place. The 95% rule is still valid for wines with a regional appellation such as Napa Valley or Carneros. The California Wine Institute believes the new rules are improving the taste and quality perception of many wines.
California Wine Regions
California, with its long Pacific coastline, can roughly be divided into five wine regions. Because California covers an area of 400,000 square kilometers and stretches 2,000km from the farthest points in the north to the southernmost tip, each area has a different climate and can thus be considered a distinct region.
The North Coast is the best-known region and the most important one in terms of quality wines. Starting in San Francisco, the region stretches north, covering the Cabernet Country of Napa Valley – 5,000ha of a total of 12,000ha are planted with this elegant variety. The second most-important variety is Merlot, followed by Chardonnay. The Napa Valley is the most prestigious locale of all the wine regions. No other area in California hosts as many wineries. But Napa wineries, despite their large number, only produce about 5% of California’s harvest. The area’s topography supports a wide variety of soils – more than 30 different types have been identified – ranging from well-drained, gravelly loams to moisture-retaining, silty clays.
The colder regions of Sonoma and Carneros, as well as Mendocino and Lake, produce excellent Chardonnays and Pinot Noirs. Warmer regions such as Dry Creek and Alexander Valley in Sonoma County are well suited for Zinfandel and Cabernet Sauvignon.
The 125km wide and 750km long Central Valley, further inland, is California’s largest grape producing area and the state’s most important agricultural region. The valley with its hot climate is bordered by the Sierra Nevada to the east and the coastal ranges to the west and accounts for almost three-quarters of all Californian grapes. While the northern part is known as Sacramento Valley, the southern part is called the San Joaquin Valley. Wine-growers in this area produce predominantly good value table wines. In recent years, blending varieties such as French Colombard have been increasingly replaced by premium varieties.
The Central Coast stretches roughly between Monterey and Los Angeles. The cooler Monterey County has a favorable climate for Chardonnay, Pinot Noir and Riesling. Santa Barbara, which includes the Santa Ynez Valley, the Santa Rita Hills and the Santa Maria Valley, is also ideal for Chardonnay and Pinot Noir. Higher, warmer areas are also well suited for Bordeaux and |
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Rhône varietals.
The warmer climate of San Louis Obispo lends itself to the production of Cabernet, Zinfandel, and Merlot. The main districts are the warm Paso Robles and the slightly cooler Edna Valley, where Chardonnay and Pinot Noir are grown.
Vineyards of the small South Coast are located between Los Angeles and San Diego. Most of the wine is grown in the Temecula region. Chardonnay and Sauvignon Blanc dow well here.
Another small Region is the Sierra Foothills, east of Sacramento, where Zinfandel, Italian and Rhône varieties thrive in the warm sunshine.
Interview with Joe Rollo, International Director of the California Wine Institute
How important is the export market for Californian wineries? What are the main markets?
Exports now account for about 15% of our production and have grown significantly in the past 10 years by 170%. All large and mid-size California wineries export. They view foreign markets as significant parts of their overall marketing plan. Small-production wineries are often constrained by their available supply and will give priority to the domestic market.
Overall, Europe accounts for about 53% of California exports, with the UK, the Netherlands, and Germany the main destinations. The UK is the number one export country, with Canada number two and Japan ranking third.
I believe that California wineries will continue to invest in exporting because of the long-term opportunities that foreign markets provide and the growing belief that a successful company must compete globally to be sustainable economically.
What are the emerging export markets where California vintners want to get a foothold in the future?
Our industry, because we are relatively new to exporting, still has significant potential in most of its current major markets. However, new markets for us, in Eastern Europe, Russia, China, and eventually India, hold promise for future development.
Last year, for the first time, exports declined. What were the reasons?
In 2005, several large wineries chose to make changes in their logistical approach to the market by shipping bulk wine and having it bottled closer to the market. I believe this was the primary reason for the loss in export value. When we looked at retail sales in our major markets, sales were steadily increasing.
I prefer to look at longer-term trends. Last year, exports declined in value by 26%; this year they are ahead by 26%. If one compares projections for 2006 to exports in 2004, the growth is 10%.
With a stronger national demand as wine enters mainstream US lifestyle, do you see any further growth in exports? If yes, in which markets? What is the goal?
I do see continued growth in exports, because our industry is increasingly adopting a global view. The challenge, as you state, |
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is the growing US market. However, a larger challenge is the manner in which the US market is growing. The mid-price segment, retail prices from $8–12 per bottle, is the fastest-growing segment. This growth is very attractive for both domestic and foreign producers. The fact is that a producer can make a profit by selling in the US and Canada. Conversely, it is difficult to make a profit in the UK and Germany, the two largest export markets for most producers.
I believe our industry had a major role in developing the US market into the growing, profitable wine market it has become. I wish that our competitors in Europe would spend more time developing their wine markets, rather than complaining about the increasing competition from the New World.
What makes Californian wines interesting for international wine buyers? What is their strength?
California wine regions are still being discovered by the importer and retail trade, and this keeps the category interesting and vibrant. From a consumer viewpoint, the California lifestyle and image of the state gives our wines an aspirational association. Consumers can mentally transport themselves to California by purchasing a bottle. I also believe that the quality of the cuisine in California reinforces the quality image of our wines – especially among consumers of high-value wines.
The Wine Institute helps Californian vintners to promote their wines around the globe. What are this year’s priorities?
We are increasing our programs in secondary markets such as Mexico, China, and Eastern Europe. However, our main focus is still Canada and our major markets in Europe – the UK, Germany, the Netherlands, Switzerland, and Scandinavia. We have recently started a small advertising campaign in trade and high-end consumer publications. Although we do not see a major role for generic advertising, it does help build the category and support importer and retail programs. It is all about increasing the number of consumers who have tried our wines.
What are the main challenges that lie ahead for the Californian Wine Industry?
California agriculture has many challenges, and we have taken a leadership role in sustainability programs that we hope will allow us to meet those challenges long-term. Specifically, we must take care of our environment and be good neighbors – as development in California presents a major challenge. I believe the wine industry globally tends to take a long-term view because of the cycle of our production and planning necessary to insure economic viability. Thus, we can embrace programs that relate to sustainable farming, environmental stewardship and long-term economic viability.
We also must continue to build the wine market in America in a responsible manner. We hope that other producers will take the same care to enhance their markets and work with us to build new, emerging wine markets such as China and India.
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