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Monday, September 9, 2019

What Wine People Are Talking About

When you're a small business person or a farmer as most in the Sonoma & Napa wine biz are then there seems to always be something to worry about. Here's what the worrywarts are talking about now (besides the 2019 harvest that's happening right now).

It isn't just about were A/C might be needed
It's also about where grapes (and other crops) will grow
Click on map to enlarge


Climate Change

This is bigger than you might think. Not everybody is a believer yet, but if you're in the wine business you have to be thinking and planning. Premium wine grapes grow in narrow climate bands around the globe. Rising temps and changing rain patterns mean these growing areas will be moving somewhere else. Are floods, droughts, and wildfires the new norm?

I doubt you'll get many tourists to Napa Valley in 30 years if they're growing Lodi-type zinfandel instead of world class cabernet because the valley has heated up a few degrees.

Sonoma County might be okay in that we have so many micro-climates that maybe cab moves from the likes of Knights Valley and Alexander Valley to Dry Creek, zinfandel moves to the Russian River Valley, and pinot and chardonnay move closer to the coast. Or maybe it won't be that easy. Nobody really knows.

Labor

Not only can wineries not find proper coverage for tasting rooms, but vineyard and wine cellar workers are in short supply. You have to pay more to get and keep qualified people. It's especially problematic with the migrant work force that is around for the harvest. These labor issues drive up costs that will eventually drive up wine prices.

Cannabis

In California this business is just hitting its stride. Some see it as the new gold rush though others aren't quite sure how big of a deal this will be. Just as craft beer is considered a direct competitor to wine many think legal weed will have an impact. We'll see.

Some in the wine biz are trying to get in the cannabis biz also, but you have to be careful since it's still against the law at the federal level so you could jeopardize your winery. The weed biz is trying to learn from the wine biz for everything from tasting rooms to distribution networks.

China Tariffs

This isn't a huge deal for the majority so it's not a big topic, in Sonoma County anyway. Wine exports are a $1.5 billion market with China being a fairly small piece of that. China is a fast growing market, however, so this may hurt us more in future sales lost to other countries.

The Anti-Alcohol Movement?

No, they're not talking about this so much. This topic has been appearing lately online maybe because it seems writers like to invent problems. There are articles about some research saying young folks aren't drinking as much (and aren't having sex either). The youngest adults are called Gen Z. Since they have a different name they have to be different. At least I hope that's it cuz otherwise it would be pretty freakin' boring being under 25 years old with no alcohol or sex.

What California does in the cannabis market affects the whole country
because of the sheer size of the state


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