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Wine ARCHIVES

 

Summer, 2006


Napa Wine Auction Nets More Than $8 Million


Total falls short of last year’s record

American Idol host Ryan Seacrest was master of ceremonies for the 26th Auction Napa Valley, which
took place in June. Seacrest poked fun at the tabloid rumors about his sexuality by joking, “I’m into
chicks— and wine. I like women, in spite of how I dress.”

The grandfather of all wine auctions raised $8.4 million for local health, housing and children’s charities,
mostly through a live auction, an e-auction and a barrel auction. Despite the fact that festival organizers
were happy with the event, many felt this year’s bidding was tame by past year’s standards. The Napa
Valley Register reported that several longtime auctiongoers said they were surprised by “subdued bidding.”

Still, at least one record was broken. Lot nine, billed as “ a new French Connection,” was provided by the
Staglin Family Vineyard and offered five large-format bottles and a trip to France with Staglin owners
Shari and Garen Staglin. The resulting bidding frenzy ended up in a record bid for a single lot, $1.05 million.
Making the record bid was second-year auctionattendee Joy Craft of Woodside, California.

Another celebrity, Oscar-winning actress Geena Davis, star of the cult film Thelma & Louise and the recently cancelled television series Commander in Chief, vigorously hawked a lot that included a walkon role in an upcoming television movie based on that TV show and wine from Frank Family Vineyards. The winning bid came from vintner Koerner Rombauer, co-owner of Frank Family Vineyards.


U.S. Swills $25 Billion In Wine

The 2005 dollar amount continues a 12-year growth trend in wine sales

Wine, wine, wine and more wine.

According to a report from the Wine Market Council, a nonprofit association of wine business groups such as grape growers, wine producers and importers, Americans drank 249 million cases of table wine in 2005. They drank just 205 million in 2000 and 177 million in 1996.

Despite these gains, the United States lags behind several othercountries in per capita consumption and will need to buy a lot of vino to catch up with Luxembourg, France and Italy, the world’s top three drinkers espectively.

Most of the time, Americans go for the homegrown stuff, with 69 percent of American wine drinkers usually buying domestic wine and 31 percent usually buying imported wine.


APRIL, 2006

The High Gets Higher

Atlanta High Museum wine auction breaks its own record

The 14th Annual High Museum Wine Auction raked in a grand total of $2.6 million this year, with several events that spanned five days from March 28 to April 1. The event’s crown jewel was the high-spirited live auction that lasted for several hours on the event’s final day and raised more than $1.3 million. The remaining money came from other events earlier in the week. Total revenues for all auction events rose by almost $400,000 over last year’s total.

Among the more interesting lots was a collection of French wines that were all given Robert Parker’s 100-point rating. There was also a trip for six to Paris, Champagne and Bordeaux, including a specially arranged trip to the Louvre. That package went for $40,000. Two weeks in Africa, including a wine-country adventure and a one-week safari, went for $36,000.

The auction ran under a French theme, partly because famed French museum designer Renzo Piano designed the High’s recent expansion and partly because the Atlanta museum has a celebrated upcoming partnership with Paris’ great art institution, the Louvre. This partnership involves showing pieces from the Louvre at the High Museum over a period of about three years. Starting in October, the Louvre will share Greek statues, Roman sculptures and a Rembrandt with the museum.

-Steve Stevens


Growing Up

Wine South Festival Expands to Buckhead

Wine South, the largest food-and-wine event in the Southeast, has announced an expanded program, adding a premium event in Atlanta’s Buckhead district and a full day dedicated only to the wine, food and hospitality trade. This is the event’s seventh year.

“ We feel the changes will add choices for both the consumer and the trade attendee,” said Dan Thompson, the festival’s founder. “It has been several years since we held a part of the festival inside the perimeter, where the festival unfolded in 2000. We look forward to expanding our reach to a broader range of Atlanta wine enthusiasts.” Thompson is also The Wine Report’s publisher.

A new, special reserve wine event will be held Friday, Sept. 15 in the Windsor Ballroom of the InterContinental Buckhead Atlanta Hotel, featuring “library” and reserve wines from around the world poured by the vintners themselves. A silent auction will benefit the Angel Flight of Georgia charity.
Festival director Karen Siegel, who is also the events director for The Wine Report magazine, said there’s a reason for the new event. “We listened to our attendees, who also wanted really fine wines in an elegant setting for a special evening, and the InterContinental is the perfect venue. The food, music, auction and reserve wines will be among the highlights of the Wine South weekend. We plan to go all out to make this night a permanent part of the festival.” Black tie is optional, and the event will be limited to 250 guests.
Saturday’s main event will remain at the Gwinnett Convention Center and will feature more than 600 wines, live entertainment, wine seminars, cooking demonstrations, art exhibits and food prepared by dozens of restaurants. This day will be open to the public, and special weekend packages will include shuttle service to the center from nearby hotels.

Sunday’s finale, also at the Gwinnett Center, will bring the hotel, restaurant and retail trade to Wine South to allow private tastings with attending wineries, importers, brokers and distributors only. The Sunday event is not open to the public.

– Greg McCluney


THOSE OUTBACK® STEAKHOUSE COMMERCIALS AREN'T HELPING

SACRAMENTO -- Make room Kangaroos. With a dedicated history of creating top quality wine in Australia, the six-generation family of expert winemakers that craft McWilliam's Wine is leading the effort to ensure expert winemaking ability is top-of-mind when Americans think of "Down Under." According to a recently conducted 1,100-respondent survey of U.S. consumers, there is considerable room for an educational effort as a whopping 81 percent of Americans first think of kangaroos or The Outback when asked about Australia. Furthermore, less than five percent of survey respondents currently think of winemaking expertise when asked about "Down Under." If hard work, rugged determination and a 129-year history of artisan-crafted quality wine has anything to do with it, Americans will soon sip and take notice.

Conducted in February 2006 by Dr. Dennis Tootelian, Professor of Marketing, College of Business Administration, California State University, Sacramento, the survey also revealed the following perceptions about Australia and U.S. consumer wine preferences:

Significantly more survey respondents report they generally drink more wine than beer (52 percent vs. 29 percent);

When asked which single factor is most important in selecting wine, respondents favored taste first (66 percent), followed by price (20 percent), brand familiarity (11 percent), country of origin (2 percent), and wine rating/award status (less than one percent);

While more than half of survey respondents (52 percent) reported they've never tried wine from Australia, more people said they'd like to try wine from "Down Under" over wine from any other country (Australia -- 65 percent, Chile -- 60 percent, Spain -- 59 percent, Italy -- 58 percent, France 55 percent);

An extraordinarily high number of survey respondents (86 percent) said they did not realize Australia has a longer history of winemaking than the U.S.; When asked what comes to mind when Australian wine is mentioned, the top answer cited was "a category of wine emerging in popularity in the U.S." (61 percent);
Overwhelmingly, an outdoor porch or veranda was identified as the perfect location to enjoy a glass of wine and share conversations/stories with friends and family (57 percent), followed by dining room/kitchen (16 percent), restaurant/bar or family room (each 14 percent);

Frequent wine drinkers are much more apt to feel that knowing the history of the wine producer or a story about the wine from the wine maker would make a wine more enjoyable than those who are occasional or seldom wine drinkers (frequent wine drinkers -- 70 percent, occasional -- 34 percent, seldom 16 percent).

Founded in 1877, McWilliam's Wines is one of Australia's oldest and most highly respected family owned wineries. The company has premium vineyards in Australia's most important growing regions, including Coonawarra in South Australia (SA), Hunter Valley and Hilltops in New South Wales (NSW), Yarra Valley in Victoria (Vic) and the Riverina (SA).

Note: Commissioned by McWilliam's Wine, the 1,100-respondent survey was conducted via a telephone survey of respondents located in three different regions of the U.S. (states surveyed include Florida, Texas and California).


FEBRUARY, 2006:


Carlos Santana knows about notes. They're his business. And when he's creating something, it matters a whole lot where and when those notes show up.

Along with Mumm Napa - the Rutherford, Calif.-based méthode champenoise sparkling wine producer - Santana recently helped create a sparkling wine of his own: the 1999 Mumm Napa, Santana DVX. With notes of honeysuckle, wild strawberry and pear, both parties are hoping the wine's release makes beautiful music in the marketplace.

Santana, though he's not a wine pro, took an active part in the creative process. He worked with Mumm over several weeks to develop a choice dosage (a syrupy mixture of sugar and wine added to sparkling wine during the winemaking process that helps define the wine's taste and sweetness). But Santana said it was another Napa producer that got him interested in the wine game.

"A few years ago, I discovered Silver Oak," Santana told The Wine Report. "I liked it instantly and decided one day to take a drive to their tasting room. They were very gracious to me and have continued to be throughout the years, so I think it was an awakening with the Silver Oak when I realized the rhythm and harmony created by the winemakers."

About 1,600 cases of the Mumm DVX were produced, and $1 from each bottle will go to the Milagro Foundation, established by Santana and his wife Deborah in 1998 to give global support to non-profit organizations and programs working with children in the areas of art, education and health.

The release of the wine coincides with the release of Santana's
new album, "All That I Am."


JULY, 2005

Has Joe Six Pack been replaced by Donnie Decanter? Wine is the preferred alcoholic beverage of 39 percent of Americans, while only 36 percent prefer beer, according to a recent Gallup poll. But the nation's wine lovers shouldn't gloat: the poll's plus-or-minus 4 percent margin of error means the battle to become America's favorite alcoholic beverage is pretty much a draw.

However, wine and beer are certainly moving in opposite directions. In 1992, wine captured just 27 percent of the vote, while beer pulled in 47 percent. This year's numbers show a dramatic shift in American attitudes toward wine over the past decade. So wine is up, beer is down. All of those beer drinkers must have switched to wine, right?

No, because liquor is in the mix as well. In fact, young adults ages 18 to 29 are drinking less beer and more liquor; for them, wine's popularity has stayed about the same. But middle-aged folks (ages 30 to 49) are drinking less beer and more of both liquor and wine. And older Americans, folks 50 and up, are drinking less liquor and more wine; in this group, the percentage of people who say beer is their preferred drink has stayed steady over the long term.

But beer's overall downward trend is certainly not evident everywhere. "Georgia is strong in beer,"says Adam Tolsma, beer buyer for Green's Discount Beverage, one of Georgia's largest beer retailers. Tolsma remarked that these downward trends are not evident in Georgia right now.

Over the long term, the percentage of American adults who say liquor is their drink of choice has remained at or very close to 21 percent. Though the picture is complex, it seems beer's losses have indeed been wine's gains.

—Steve Stevens

 


JUNE, 2005

HOT OFF THE VINE

Let The Good Wines Roll!

Supreme Court strikes down discriminatory wine shipping restrictions, but maintains the integrity of states’ right to control wine sales

BY STEVE STEVENS

The dramatic case pitting winemakers and consumers against wine distributors kept the multibillion-dollar wine industry on the edge of its collective seat for months. And in the end, it was decided by the slimmest of margins.

In a classic David vs. Goliath court battle, David came out on top May 16 when the Supreme Court of the United States ruled 5-4 to throw out New York and Michigan laws banning the
interstate shipment of wine. The decision clears the way for many United States wineries to bypass traditional wholesalers and ship their wines directly to out-of-state consumers; it also jeopardizes laws in 22 other states that currently ban out-of-state shipments.

The decision is a boon to many small wineries currently shut out of those states and possibly to consumers as well, who could now have a plethora of new wines from which to choose.

The wine producers in the cases before us are small wineries that rely on direct consumer sales as an important part of their businesses.”
– JUSTICE ANTHONY KENNEDY
(Majority)

In the days following the decision, a swirl of scenarios emerged depicting the case’s short- and long-term impact. “Short term, I don’t see it changing for the people of Georgia,” said Charles
Willey, director of public information for the Georgia Department of Revenue. Willey said there are presently two ways for wineries — in-state and out-of-state — to ship wine to Georgia consumers. If a distributor in Georgia does not represent the wineries, wineries can obtain a special license and ship a limited amount of wine; or the consumer must be physically present at the winery to place an order and have it shipped to his or her home. Because Georgia already treats in-state and out-of-state wineries the same in this regard, the court’s decision probably won’t have much of a short-term effect. However, state legislators may take note of the court’s loosening of shipping restrictions and make it either easier or more difficult for wineries to ship wine directly to consumers. Georgia vintners are certainly hoping the state eases shipping restrictions.




“The court does this nation no service by ignoring the textual commands of the Constitution and acts of Congress.”
– JUSTICE CLARENCE THOMAS
(Minority)

Georgia is one of the more restrictive states in terms of these regulations,” said Martha Ezzard, co-owner of Georgia’s Tiger Mountain Vineyards and a former attorney. “But the positive side is that there’s been a lot of press on this issue, and some leading people in the community are saying maybe these small guys are being treated unfairly. I’m hopeful this will cause our state leaders to make our wine laws less restrictive, especially when it comes to shipping.”

North Carolina recently dealt with the same shipping issues in its own federal case, the result of which was that both in-state and out-of-state wineries must get a permit, according to Fred
Gregory, chief deputy counsel for the North Carolina Alcohol Beverage Control Commission. Gregory says now it is actually less expensive for out-of-state wineries to ship to North Carolina, so the court’s decision will have little or no short-term effect in that state either.

Alabama, on the other hand, does not allow any direct shipment of wine to consumers, said Renee Ferraz, spokeswoman for the state’s Alcoholic Beverage Control Board. Alabama requires all wineries to obtain written approval from the state before sending their wine to state-run stores where residents can pick it up.

Alabama courts and the legislature will almost certainly be addressing the ramifications of the Supreme Court decision for years to come, but a version of current laws could ultimately
remain in effect. All the Supreme Court requires is that states treat in-state and out-of-state wineries equally.

Rules Must Be Fair For All
Justice Anthony Kennedy, who wrote the majority opinion for the high court, concluded that although the Michigan and New York laws were different, they had the same effect: “The object
and design of the Michigan and New York statutes is to grant in-state wineries a competitive advantage over wineries located beyond the states’ borders,” Kennedy wrote. Kennedy saw this as a clear violation of the Constitution’s commerce clause.

In a dissenting opinion, Justice Clarence Thomas wrote that since the ratification of the 21st Amendment, which repealed Prohibition, the court and Congress have said consistently that
states may indeed discriminate against each other where alcohol regulations are concerned. He sharply disagreed with the majority, claiming that he would just as soon rely on the wording of
the laws themselves “rather than the Court’s questionable reading of history.”

Despite the vintners’ victory, there are troubling aspects to the decision for both sides. Wineries worry that some states might outlaw the direct shipment of wine altogether. Alternatively, states worry that the decision may erode their powers to tax and regulate alcohol that comes across their borders.

While there are differing opinions on precisely what the national ramifications of May’s decision will be, everyone seems to agree on at least one thing. “The decision reaffirms the basic
constitutionality of the three-tier system that heavily regulates the sale and distribution of wine,” said J. Alexander Tanford, lead counsel for the plaintiffs in the Michigan case and professor of law at Indiana University-Bloomington. At the same time, Tanford continued, the decision said that certain aspects of that system were unconstitutional.

Clint Bolick, who argued the case before the Supreme Court on behalf of the wineries, said a scenario where a state bans direct shipping outright is unlikely. “Because all 50 states now have
wine industries, I don’t think many will ban shipments altogether, because small in-state wineries could not survive such a regime,” Bolick said.

Tanford agreed with Bolick’s take on the situation. “This would have a huge impact on local wineries, putting many of them out of business,” Tanford said. “I cannot imagine the states would do this.”

Despite those opinions, some state legislators will undoubtedly consider the “nuclear option” of completely halting direct shipments of wine. “There’s a long road ahead, with a lot of discussion
as to what we should do to best serve the state,” said Ken Wozniak, director of executive services for Michigan’s Liquor Control Commission. He acknowledged that banning direct shipment of wine for everyone was one of several options that are on the table. In fact, the commission’s chairwoman, Nida Samona, was quoted by ABC News as saying her organization would “urge lawmakers to bar direct shipments for both local and out-of-state wineries.” But Wozniak backed away from this statement, saying the state has other options.

Although the immediate effects of the court’s decision will be slight, the thrilling end to a long and tense legal battle has clearly left the victors jubilant. “It has been a long journey since becoming a wine fan at law school at [University of California] Davis, finding I could not order my favorite wines once I moved to the East Coast,” Bolick said. “And I’m celebrating triumph
today. It is a victory for consumers and small wineries against the forces of protectionism. Let the good wines roll! We are ecstatic.”

Editor's note: for a listing of the Statutes and two other news stories on this topic, please jump to News Archives. More will be posted on a state-by-state relevance soon.


FEBRUARY, 2005

Presidential Wines
Former President Jimmy Carter
with his handmade wines sold
to benefit Carter Center in Atlanta

Wines made by President Carter sell for nearly $4,000 at auction;
proceeds go to human rights’ programs worldwide

Is $875,036 a lot of money? Well, it ain’t peanuts. That’s how
much the Carter Center, President Jimmy Carter’s Atlanta-based
organization that advocates programs for peace and health all over the
world, raised by auction during its 13th annual Winter Weekend in
Snowbird, Utah.

As part of the auction held in February, President Carter donated two
bottles of red Muscadine wine that he made in his hometown of Plains,
Ga. The bottles are stamped on top with the presidential seal and have
Carter’s signature on the label, which features a sketch of the streets of
Plains. “I used to help my father make wine, using equipment and a recipe
inherited from his ancestors,” Carter says. “[And] the label was given to
me by my children one Christmas a few years ago.” The bottles fetched a
total of $3,900 for the center’s endowment.

The bids for the wines, while impressive, were not nearly the highest
bids at the auction. An oil painting by Carter went for $200,000, and
two Carter-signed photos of presidents Carter, Clinton, Ford and the
elder Bush went for $75,000 apiece.

 


JANUARY, 2005

 

When Dr. Patrick McGovern, a research scientist from the University of Pennsylvania Museum of Archaeology and Anthropology, joined Chinese and American researchers in the effort to learn more about ancient Chinese wines, he figured it was just another job.

“I got invited by Anne Underhill from the Field Museum in Chicago to help analyze material they were finding [at various sites in China],” McGovern says. “They were looking for jars and cups and bronze vessels that were used in various ceremonies for different kinds of wine.”

Among artifacts discovered in the Neolithic village of Jiahu, in Henan province, Northern China, were a few rather interesting clay jars. Chemical analyses of the liquid and organic material in those jars determined that the Chinese in that village were making blended, fermented beverages of rice, honey and fruit (possibly grapes or hawthorn fruit) as early as 9,000 years ago. This is approximately the period when people in the Middle East were beginning to make beer and grape wine.

Scientists and historians have widely believed that people in the Middle East had been the first to produce wine, but this new discovery throws that into doubt.

Also, bronze vessels discovered in the ancient Chinese capital of Anyang and at a site in the Yellow River Basin still held rice and millet wines dating back to the Chinese dynasties of 1250-1000 B.C. “ When they excavated tombs with [the 3,000 year-old bronze vessels], they were elated when sometimes half of the sealed vessels still held liquids. When opened, they were amazed by the aromatic scent of the liquids. You actually do get a scent of a rice wine,” McGovern says.

Dr. Patrick McGovern gets a whiff of the historic find.

 

 

 

 

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