Newsflash – The Wine Institute reported today that revenue losses for the nation’s more than 10,000 wineries and more than 8,000 wine grape growers due to COVID-19 could reach $5.94 billion.
Fortunately, there appears to be a silver lining for the US wine industry amidst all the doom and gloom. Direct to Consumer (DTC) wine sales are soaring sky high! With so many people ordered to stay home, more wine lovers are turning to online wine purchases. Case sales have increased four-fold and many wineries are offering deep discounts and free shipping to move their wine.
This week, Michelle Metter, Co-Founder and Partner of SommCon, hosted US Wine Market Update: A Regional Perspective with a fantastic guest panel of wine leaders from California, Oregon, Washington, Ohio and Virginia. Not surprising, the general consensus from these leading industry experts was to be innovative and “think outside the bottle.” But, how?
With all tasting rooms shuttered across the US, the big shift in wine sales is moving toward a digital presence with a goal to add new consumers to the database and to lessen the reliance of tourism in tasting rooms. Webinars, new social media platforms, in-depth wine education, local campaigns and virtual wine tastings have become the “new normal”.
Panelist Connor Best spearheads the International Marketing efforts on behalf of Napa Valley Vintners for its 550-winery members and winegrowers. He notes that there has been a huge transition to e-commerce sales, even with top-end producers. Best also encourages wineries to utilize their front house workers for phone sales, shipping, bottling and other vineyard work to keep staff employed during the shutdown. “Surprisingly, wine club memberships in Napa remain strong with fewer cancellations than predicted,” remarked Best. Despite the 2014 earthquake and the recent Sonoma-Napa wildfires, Napa remains resilient. NPV has a concentric plan in place to start rebuilding the wine tasting room experiences with outreach to local San Francisco Bay area visitors first and will then expand marketing efforts outward as California relaxes the stay-in-shelter orders.
Sonoma County Winegrowers’ President Karissa Kruse, who actively supports the hospitality industry during these difficult times, expressed a similar sentiment. Other than an earlier than usual bud break, the growing season seems to be on track. “Agriculture continues to give and doesn’t understand the COVID-19 pandemic,” said Kruse. She feels positive, however, that Sonoma County is well poised to welcome Bay area day-trippers into wine country soon and that the wine industry will eventually recover. In the meantime, local eateries are pairing take out food with Sonoma wines by the glass and bottle, in the “Keep Restaurants Alive” campaign, which has been well received.
Another panel contributor, Joel Peterson, Executive Director of the Paso Robles Wine Country Alliance is closely aligned with over 200 wineries in Central California. Again, the big shift was to quickly pivot and go to digital marketing. Many distilleries in Paso immediately ramped up to produce hand sanitizer for the first responders, while wineries delivered wine care packages to those on the front lines. Peterson is working closely with the county on the anticipated roll out plan to re-open the region’s wineries. He also supports the “Home With Paso Wine” campaign and invites wine lovers to connect with local winemakers via Zoom for weekly virtual tastings, vineyard updates and interviews.
Elsewhere in the state, Temecula Valley Southern California Wine Country’s Brand Marketing Partner, Devin Parr, expressed great concern over the lack of distribution and wholesale market for the 40+ wineries. Largely founded by DTC sales, Temecula’s target market caters to the 23 million visitors within a one to two hour drive from wine country. Parr believes that the valley’s “Sip From Home” packages are key to garnering wine sales at this time and has reported moderate success feedback. Many wineries are being more innovative and have reached out to wine club members via various social media platforms to offer free local wine delivery or curbside pickup. And, a big shout out goes out to Wilson Creek Winery for donating 50,000 tasting tickets to Southern California wine lovers.
Washington State Wine Marketing Director David Flaherty had some interesting insights, as Seattle was six weeks ahead of the COVID-19 curve. Unfortunately, one of the largest revenue producing wine events, Taste Seattle, had to be cancelled with short notice. However, on the positive side, Flaherty received huge support from regional wineries with his quick call to action. “We all need each other. The spirit of collaborative union creates a sense of urgency to shake off stodginess of the industry and break down walls,” said Flaherty. A noteworthy digital campaign recently launched by Washington State Wine is SIP GLOCAL, a global movement that rallies around a local bottle of wine, with the hope of closing the social distance between communities near and far.
Ryan hails from five generations of vineyard management in Sonoma County and definitely knows how to select the top vineyards and grape varietals, utilizing drone technology. One thing is certain, Ryan’s charismatic nature is endearing and his depth of enology is as impressive as the array of wines.
An apple orchard in days gone by, the 110-acre Hallberg Ranch is truly a sight to behold. Estate Pinot Noir grapes are also sourced from Annapolis’ Sonoma Coast (Welsly Vineyard) and Sebastopol Hills’ Northern Wind Gap (Pinot Hill). Nothing but heavenly Pinot Noir at Emeritus, but who’s complaining?
Flanagan is definitely a family affair, with Eric Flanagan at the helm and 20 year old daughter Riley following in his footsteps with her own label, Riley’s Rows. Meeting Riley was awe-inspiring. Her bubbly personality and talent for winemaking is inherent and will serve her well in years to come.
Just as enchanting as the winery’s namesake, is the bucolic setting of Ted and Heidi Lemon’s Littorai Wines nestled in the far reaches between Sebastopol and Freestone. Ted’s love of Burgundian-style wines began almost 40 years ago when he apprenticed at several famous Old World wine estates in France and studied enology at the Université de Bourgogne. As an accomplished young winemaker, he was the first American hired to manage Domaine Guy Roulot in Mersault, France. Fast forward to today, where Littorai’s single vineyard wines are internationally distributed in 14 countries and grace the wine lists of top restaurants nationwide.
This 30-acre farm is modeled on the 1920’s Philosopher/Scientist Rudolf Steiner’s vision of an integrated farm, combining a holistic, biodynamic approach to farming. Over half of the property is dedicated as open rangeland for the resident grazing cows, sheep and chickens. Organic legumes, edible flowers and cereals are cultivated and composted, and eventually formulated into natural tea sprays for the vines. Bees and insects are welcomed as no pesticides or fertilizers are used at Littorai.
On three acres, The Pivot Vineyard Pinot Noir, is the estate’s only vineyard. The remaining acreage is cloaked in Redwood trees and dotted with meandering streams and wildlife. Grapes for Chardonnay and other single vineyard Pinot Noir are sourced from the coastal mountains of Sonoma and Mendocino Counties, hence the name Littorai.
What makes a Littorai Pinot Noir from one coast different from the other? In short, a Sonoma Coast Pinot Noir tends to have a more tannic structure, with spice tones (peppers, savory, sage, marjoram) while the Russian River Valley Pinot Noir is associated with lush fruit, blackberry, raspberry and plum. Yet, the Anderson Valley Pinot Noir combines the best of the tannins from the Sonoma Coast and the darker fruits of the Russian River Valley.
Keeping with the “green building” theme, Littorai’s winery is constructed of hay bale walls, which provide consistent insulation and temperature control in the cellar. Solar panels minimize the electric costs, and all excess water used in the winemaking process is recycled back into the vineyard. The winery is also designed for wine movement via gravity flow, to avoid the use of pumps.
Vineyard tours and tastings are by appointment only, and well worth the inside look at how biodynamic farming produces some of the finest Chardonnay and Pinot Noir in Russian River Valley. 
