Latest news with #WineInstitute
Miami Herald
21-04-2025
- Business
- Miami Herald
Winemakers uncover a worrisome new problem
How do Americans cope with the everyday pressures of corporate jobs, parenting, and the ongoing stress of an economy in flux? The answer is simple: many crack open a bottle of wine when they get home for the day. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Americans consumed 899 million gallons of wine in 2023 alone, according to the Wine Institute, averaging 2.68 gallons per person. America is currently the world's top wine market. Despite what seems like a titanic amount of vino being bought and consumed, however, people are actually drinking less of it than historically they have in a very long time. Related: Popular diet drink brand adds alcohol In 2024, The International Organization of Vine and Wine (OIV) reported that worldwide consumption of wine fell to its lowest level in more than 60 years. The OIV also had more troubling stats to share. It reports that the consumer is now paying an average of 30% more for a bottle of wine than in 2019-2020. Since that time, overall consumption has plummeted by 12%. Canada's decision in early March to stop stocking U.S.-made liquors, wines included, also hit the industry hard. This comes in reaction to President Donald Trump's 25% tariff on nearly all goods from Canada and Mexico. Now, on top of those problems, winemakers are speaking up about a new issue that could prove catastrophic for the industry. Image source: Gillenea/AFP via Getty Images Like many other increasingly costly goods that worry consumers, wine is on track to get much more expensive in the near future. Part of that is about the way wine is packaged. For instance, wine corks are currently imported from Portugal and Spain. Once the 90-day tariff pause is up, should tariffs go into effect as planned, winemakers will face the 10% European tariff in order to get the corks they need for their products. The bottles that hold wine are a much bigger problem. Many vintners get their bottles from China, which is facing a 145% tariff. This will force many businesses to turn to a new source of bottles. Related: CEO of popular beer brand spots concerning consumer trend Some makers also import their bottles from Mexico, which could be facing a 25% tariff in the future. Perhaps the biggest issue for winemakers, however, is barrels. French oak barrels are the preferred option due to the flavor profile they lend wines. These often cost $1,000 or more, making them unaffordable for smaller wineries. "Not having French oak will drastically change the flavor profile of many wines," said Adolfo Hernandez, owner of Monroy Wines in Sonoma County, Calif., in an NPR interview. While a firm answer to this question is still up in the air, it's safe to say that wine drinkers might want to brace themselves for impact. In the aftermath of Trump's tariffs, Canada retaliated by pulling American-made wines from its store shelves and restaurants. The incident left a sour taste in Canadians' mouths, and they have taken to social media to show photos of empty store shelves. The move presents a huge problem for the wine industry. California Wine Institute's president and CEO Robert Koch said in a statement that "Canada is the single most important export market for U.S. wines with retail sales in excess of $1.1 billion annually." While no winemakers have announced price hikes just yet, their possible necessity continues to loom. "Where we are in our industry is bated curiosity mixed with fear, and trying to figure out an opportunity," Virginia Wineries Association President George Hodson told Axios. Related: Major tequila company makes huge tariff announcement The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Forbes
25-03-2025
- Business
- Forbes
Tariffs, Strategy And Leadership: A Discussion With Winery President, Marissa Lange
Marissa Lange, President of Lange Twins Family Winery & Vineyard in Lodi, California Right after the first round of Canadian tariffs was announced, Marissa Lange, President of Lange Twins Family Winery and Vineyards in Lodi, California, received an email from her Canadian importers. 'They canceled all of their wine orders with us, and Canada is our biggest export market,' she reported, in a recent online interview. Canada is also the largest wine export market for the U.S. in general, with a value of around $1.1 billion annually, according to the Wine Institute. 'Now U.S. wineries have to find other markets for the wine intended for Canadian export,' she continued. However given that U.S. wine volume sales decreased 9% in the last year, finding new markets quickly can be challenging. However, Marissa Lange, the fifth generation of a California farming family, is used to challenges, and adjusting strategies to meet changing business conditions. 'Right now my job is tracking federal trade policy and its impact on the wine trade, but in 2005, we decided to expand the family business from farming vineyards to also producing wine,' she reported. It was Marissa who wrote the business plan to expand the family business, convincing her father, Randall Lange, and his twin brother, Brad Lange, to invest in a bonded winery that can crush up to 30,000 tons of grapes each year (around 1.8 million cases of wine). 'We not only produce our own wine, but also offer custom crush services for other wineries, and bulk wine and private label services,' said Marissa. Marissa Lange is now President of the winery side of the family business, while her brother, Aaron Lange, oversees the family vineyards and vineyard management services. Altogether the family farms 6500 acres of winegrapes, of which they own 1200 acres. The grapes they grow include 36 varieties, such as sauvignon blanc, chardonnay, chenin blanc, cabernet sauvignon and zinfandel. But they also farm unusual varieties like gruner vetliner, picpoul and teroldego. The vineyards are located in three Lodi winegrowing appellations: Jahant, Mokelumne River, and Clements Hills, as well as Clarksburg. The vineyards are all certified sustainable, and Marissa said they are moving towards regenerative farming. 'We are primarily a B2B (business to business) operation because only 10% of the business is producing our wine. Bulk wine sales to other wineries are the largest part of the business at around 50%, while custom crush, bottling and storage is around 40%,' she stated. As President, Marissa oversees 70 employees and her days are busy focused on business development, overseeing operations, finance and accounting, evaluating performance, and industry engagement. 'We are a 5th generation farming family who immigrated from Germany to Lodi, California in the 1800s with a stopover in Ellis Island,' reported Marissa. 'My great great-grandfather started growing watermelon and then transitioned into grapes. Now we are running this multi-generational business. It is always evolving.' Aerial View of Lange Twins Winery and Vineyards in Lodi, California Even though the winery is only 10% of the business operations that Marissa oversees, she is very passionate about it. 'We are an all-estate winery, and select some of the very best vineyards to go into our wines, which we sell in wine shops and restaurants in 26 markets across the U.S., as well as direct to consumer from our website and tasting room,' she said. They have four different wine brands: Portfolio of Wines Produced by Lange Twins Winery in Lodi, California When asked to describe the joys and challenges of being President of such a large winery operation, Marissa said: 'My greatest joy is expressed in the glass of our wine I pour each night – a physical manifestation of the land and labor of wine growing, of the artistry and authenticity of winemaking, and of the vulnerability and vitality of sharing a bottle of wine with friends and family. It brings us together in a way few other crafts do.' However her primary challenges currently center around the regulatory environment in California and the U.S. regarding running a family business. 'The increasingly aggressive regulatory environment in which companies are assumed to be adversaries rather than collaborators is challenging,' she reported. 'Especially since we use a people-and-planet-centric approach to our family business.' 'I would encourage women to mentor others as being a mentor builds an individual's leadership brand and influence.' She cites appreciation for institutions, such as the California Wine Institute and California Association of Winegrape Growers (CAWG), as providing a solid industry voice in public policy. In terms of advice to other women – especially during Women's History Month – Marissa shares the following: 'I would encourage other women to engage in opportunities outside their core responsibilities to increase their exposure, to voice their ideas and suggestions within their field of expertise, and to mentor others as being a mentor builds an individual's leadership brand and influence (all of which support upward mobility)." Marissa added that at Lange Twins Family Winery & Vineyards, all of their department leadership positions are held by women, half of whom are Latina women. 'We weren't actively looking for an all-female team,' she said. 'We are just in pursuit of the best and the brightest.' Late Afternoon Sun Over Lange Twins Chardonnay Vineyard in Lodi, California
Yahoo
20-03-2025
- Business
- Yahoo
California's wine industry leery of tariffs, but some growers hope they help
LODI, Calif. (AP) — Escalating trade tensions between the U.S. and Europe are being closely watched in California's iconic wine industry, which is already struggling due to declining global wine consumption, rising costs and swings in weather. Many fear tariffs will hike the costs of wine-making materials and dampen U.S. importers of European wines. The Wine Institute, which advocates for California wineries, said the tariffs will "hurt the broader wine sector including farmers, vintners, distributors, retailers and the millions of people working across the extended wine supply chain.' But some winegrape growers in the Golden State are hoping for a silver lining. Four-decade winegrape grower Craig Ledbetter said it costs more for him to farm in California than it would in wine-producing countries like Chile and Australia, and his industry doesn't get the government support European grapegrowers do. A partner at family-operated Vino Farms in Lodi, Calif., Ledbetter said he left thousands of tons of winegrapes on the vine two years ago due to paltry demand and has shifted some land into more lucrative pistachios. He said he sees President Donald Trump' s call for a 200% tariff on European wine, Champagne and spirits as a starting point, not an end to negotiations, and hopes in the long-run that tariffs will improve his lot. 'I think it's all going to work itself out, and I think it will equal our playing field a little bit,' he said. 'As a farmer I have to look at it through an optimistic lens, because if I don't, you know, what am I doing?' Many wine advocates and experts have warned that tariffs are expected to hurt U.S.-based importers and increase the cost of supplies such as wine barrels and glass bottles. They say Trump's latest move — in response to European plans for a 50% tariff on American whiskey — could draw retaliatory tariffs that would wallop U.S. exports of wine to Europe. Already, U.S. wine is facing a 25% import tax in Canada — the destination for a third of California's wine exports in 2022 — since the Trump administration slapped tariffs on a series of Canadian goods. Jessie Vallery, director of marketing and operations for Alexander Valley Winegrowers in Sonoma County, said Canada has already pulled U.S. wines from the market. California produces about 80% of U.S. wine and shipped about 24 million cases of wine overseas in 2023, according to Wine Institute figures. The state's wine industry is already under tremendous pressure due to shifting consumption patterns as well as rising farming costs, wildfire smoke exposure and drought. The total amount of wine consumed per capita in the United States in 2023 was the lowest in more than a decade, according to the Wine Institute. Most California wine is consumed in the United States. But wine exports are a key agricultural commodity for the state. Valued at $1.3 billion in 2022, wine exports trail only almonds, dairy and pistachios, state data show. Mainstream economists are generally skeptical about tariffs, considering them an inefficient way for governments to raise revenue. Stuart Spencer, executive director of the Lodi Winegrape Commission, said tariff talk bogged down his recent trip to Europe to promote California wines. Wine is especially vulnerable to trade wars because location matters as wine is marketed based on the region where grapes are grown and is not an interchangeable good, he said. 'It has created a lot of chaos and uncertainty,' he said, adding European buyers worried there could be retaliatory tariffs driving up the cost of U.S. wine. "It has created a lot of hesitancy, which is leading to cancelled sales.' But in the short term, higher tariffs on European wines might make California wines relatively more affordable and create some new opportunities, said Rob McMillan, executive vice president and wine division founder at Silicon Valley Bank. Keith Saarloos said he doesn't export wine from his estate vineyard in Santa Barbara wine country, and only sells direct to consumers 'from our plow to your porch.' He said the tariffs are just another bump during a tumultuous time in an industry he likened to offroading, and he hopes something good comes from it. 'I would love every single person to focus all their attention on new wines,' Saarloos said. 'I have to remain optimistic.' ___ Taxin reported from Santa Ana, California Sign in to access your portfolio
Yahoo
19-03-2025
- Business
- Yahoo
California's wine industry leery of tariffs, but some growers hope they help
LODI, Calif. (AP) — Escalating trade tensions between the U.S. and Europe are being closely watched in California's iconic wine industry, which is already struggling due to declining global wine consumption, rising costs and swings in weather. Many fear tariffs will hike the costs of wine-making materials and dampen U.S. importers of European wines. The Wine Institute, which advocates for California wineries, said the tariffs will "hurt the broader wine sector including farmers, vintners, distributors, retailers and the millions of people working across the extended wine supply chain.' But some winegrape growers in the Golden State are hoping for a silver lining. Four-decade winegrape grower Craig Ledbetter said it costs more for him to farm in California than it would in wine-producing countries like Chile and Australia, and his industry doesn't get the government support European grapegrowers do. A partner at family-operated Vino Farms in Lodi, Calif., Ledbetter said he left thousands of tons of winegrapes on the vine two years ago due to paltry demand and has shifted some land into more lucrative pistachios. He said he sees President Donald Trump' s call for a 200% tariff on European wine, Champagne and spirits as a starting point, not an end to negotiations, and hopes in the long-run that tariffs will improve his lot. 'I think it's all going to work itself out, and I think it will equal our playing field a little bit,' he said. 'As a farmer I have to look at it through an optimistic lens, because if I don't, you know, what am I doing?' Many wine advocates and experts have warned that tariffs are expected to hurt U.S.-based importers and increase the cost of supplies such as wine barrels and glass bottles. They say Trump's latest move — in response to European plans for a 50% tariff on American whiskey — could draw retaliatory tariffs that would wallop U.S. exports of wine to Europe. Already, U.S. wine is facing a 25% import tax in Canada — the destination for a third of California's wine exports in 2022 — since the Trump administration slapped tariffs on a series of Canadian goods. Jessie Vallery, director of marketing and operations for Alexander Valley Winegrowers in Sonoma County, said Canada has already pulled U.S. wines from the market. California produces about 80% of U.S. wine and shipped about 24 million cases of wine overseas in 2023, according to Wine Institute figures. The state's wine industry is already under tremendous pressure due to shifting consumption patterns as well as rising farming costs, wildfire smoke exposure and drought. The total amount of wine consumed per capita in the United States in 2023 was the lowest in more than a decade, according to the Wine Institute. Most California wine is consumed in the United States. But wine exports are a key agricultural commodity for the state. Valued at $1.3 billion in 2022, wine exports trail only almonds, dairy and pistachios, state data show. Mainstream economists are generally skeptical about tariffs, considering them an inefficient way for governments to raise revenue. Stuart Spencer, executive director of the Lodi Winegrape Commission, said tariff talk bogged down his recent trip to Europe to promote California wines. Wine is especially vulnerable to trade wars because location matters as wine is marketed based on the region where grapes are grown and is not an interchangeable good, he said. 'It has created a lot of chaos and uncertainty,' he said, adding European buyers worried there could be retaliatory tariffs driving up the cost of U.S. wine. "It has created a lot of hesitancy, which is leading to cancelled sales.' But in the short term, higher tariffs on European wines might make California wines relatively more affordable and create some new opportunities, said Rob McMillan, executive vice president and wine division founder at Silicon Valley Bank. Keith Saarloos said he doesn't export wine from his estate vineyard in Santa Barbara wine country, and only sells direct to consumers 'from our plow to your porch.' He said the tariffs are just another bump during a tumultuous time in an industry he likened to offroading, and he hopes something good comes from it. 'I would love every single person to focus all their attention on new wines,' Saarloos said. 'I have to remain optimistic.' — Taxin reported from Santa Ana, Calif.
The Hill
19-03-2025
- Business
- The Hill
California's wine industry leery of tariffs, but some growers hope they help
LODI, Calif. (AP) — Escalating trade tensions between the U.S. and Europe are being closely watched in California's iconic wine industry, which is already struggling due to declining global wine consumption, rising costs and swings in weather. Many fear tariffs will hike the costs of wine-making materials and dampen U.S. importers of European wines. The Wine Institute, which advocates for California wineries, said the tariffs will 'hurt the broader wine sector including farmers, vintners, distributors, retailers and the millions of people working across the extended wine supply chain.' But some winegrape growers in the Golden State are hoping for a silver lining. Four-decade winegrape grower Craig Ledbetter said it costs more for him to farm in California than it would in wine-producing countries like Chile and Australia, and his industry doesn't get the government support European grapegrowers do. A partner at family-operated Vino Farms in Lodi, Calif., Ledbetter said he left thousands of tons of winegrapes on the vine two years ago due to paltry demand and has shifted some land into more lucrative pistachios. He said he sees President Donald Trump' s call for a 200% tariff on European wine, Champagne and spirits as a starting point, not an end to negotiations, and hopes in the long-run that tariffs will improve his lot. 'I think it's all going to work itself out, and I think it will equal our playing field a little bit,' he said. 'As a farmer I have to look at it through an optimistic lens, because if I don't, you know, what am I doing?' Many wine advocates and experts have warned that tariffs are expected to hurt U.S.-based importers and increase the cost of supplies such as wine barrels and glass bottles. They say Trump's latest move — in response to European plans for a 50% tariff on American whiskey — could draw retaliatory tariffs that would wallop U.S. exports of wine to Europe. Already, U.S. wine is facing a 25% import tax in Canada — the destination for a third of California's wine exports in 2022 — since the Trump administration slapped tariffs on a series of Canadian goods. Jessie Vallery, director of marketing and operations for Alexander Valley Winegrowers in Sonoma County, said Canada has already pulled U.S. wines from the market. California produces about 80% of U.S. wine and shipped about 24 million cases of wine overseas in 2023, according to Wine Institute figures. The state's wine industry is already under tremendous pressure due to shifting consumption patterns as well as rising farming costs, wildfire smoke exposure and drought. The total amount of wine consumed per capita in the United States in 2023 was the lowest in more than a decade, according to the Wine Institute. Most California wine is consumed in the United States. But wine exports are a key agricultural commodity for the state. Valued at $1.3 billion in 2022, wine exports trail only almonds, dairy and pistachios, state data show. Mainstream economists are generally skeptical about tariffs, considering them an inefficient way for governments to raise revenue. Stuart Spencer, executive director of the Lodi Winegrape Commission, said tariff talk bogged down his recent trip to Europe to promote California wines. Wine is especially vulnerable to trade wars because location matters as wine is marketed based on the region where grapes are grown and is not an interchangeable good, he said. 'It has created a lot of chaos and uncertainty,' he said, adding European buyers worried there could be retaliatory tariffs driving up the cost of U.S. wine. 'It has created a lot of hesitancy, which is leading to cancelled sales.' But in the short term, higher tariffs on European wines might make California wines relatively more affordable and create some new opportunities, said Rob McMillan, executive vice president and wine division founder at Silicon Valley Bank. Keith Saarloos said he doesn't export wine from his estate vineyard in Santa Barbara wine country, and only sells direct to consumers 'from our plow to your porch.' He said the tariffs are just another bump during a tumultuous time in an industry he likened to offroading, and he hopes something good comes from it. 'I would love every single person to focus all their attention on new wines,' Saarloos said. 'I have to remain optimistic.'
