Category: Release

The European Union Announces “Exceptional Support Measures” for Wine Sector

The Commission adopted yesterday an additional package of exceptional measures to support the wine sector, following the coronavirus crisis and its consequences on the sector. The wine sector is among the hardest hit agri-food sectors, due to rapid changes in demand and the closure of restaurants and bars across the EU, which was not compensated by home consumption.

These new measures include the temporary authorization for operators to self-organize market measures, the increase of the European Union’s contribution for wine national support programs, and the introduction of advance payments for crisis distillation and storage.

Janusz Wojciechowski, Agriculture and Rural Development Commissioner states:“The wine sector has been among the sectors hit hardest by the coronavirus crisis and the related lockdown measures taken across the EU. The first package of market-specific measures adopted by the Commission has already provided significant support. Nonetheless, the uncertainties surrounding the scale of the crisis at EU and global level, and a close monitoring of the market has led us to propose a new package of measures for the wine sector. I am confident that these measures will provide rapidly concrete results for the EU wine sector and soon provide stability.”

The Exceptional Measures include:

  • Temporary derogation from the European Union’s competition rules: Article 222 of the Common Markets Organisation Regulation (CMO) allows the Commission to adopt temporary derogations from certain EU competition rules in situations of severe market imbalances. The Commission has now adopted such a derogation for the wine sector, allowing operators to self-organize and implement market measures at their level to stabilize their sector and in the respect of the functioning of the internal market for a maximum period of 6 months. For example, they will be allowed to plan joint promotion activities, to organize storage by private operators and to commonly plan production;
  • Increase of the European Union’s contribution: the European Union’s contribution for all measures of the national support programs will increase by 10% and reach 70%. A previous exceptional measure had already increased it from 50% to 60%. This will provide financial relief to beneficiaries;
  • Advanced payments for crisis distillation and storage: the Commission will allow Member States to provide advanced payments to operators for on-going distillation and crisis storage operations. These advances can cover up to 100% of costs and will allow Member States to fully utilize their national support program funds for this year.These measures complement the recently adopted package, which benefited the wine sector through the flexibility provided under market support programs. This included for instance an increased flexibility of tools to control production potential, the so-called green harvesting tool, and the possibility to include temporary new measures such as the opening of distillation of wine in case of crisis or an aid to crisis storage of wine.

In addition, the Commission also launched two calls for proposals for promotion that aim to support the sectors most affected by the crisis, including the wine sector. The two calls will be opened until 27 August 2020.
The commission said it is the first time that it has issued such calls. One call relates to ‘simple programs’, which can be submitted by one or more companies from the same EU country. The other relates to ‘multi programs’, which can be submitted by at least two companies from at least two EU member states, or by one or more European organizations. Janusz Wojciechowski, states that the first package of support measures had “already provided significant support”.

L’uva Bella, Ohio’s Largest Winery Acquired by Millennial Investors  

L’uva Bella, the largest winery by volume in the state of Ohio, has been acquired by Marisa Sergi, 26, and Evan Schumann, 25, through their investment fund, S’quared Holdings.

The winery, based in Poland Township, primarily produces bulk wine for private label and retail channels. It also makes a range of grape and other fruit juice products.

The financial details of the transaction have not been disclosed, but the price paid by S’quared Holdings is believed to be “in the mid seven-figure range”.

The winery was founded 15 years ago by Sergi’s father, Frank. Marisa is a third-generation winemaker and already produces wine under the RedHead Wine label, which is distributed in Ohio, West Virginia and Pennsylvania, with plans to also launch in Kentucky, Virginia and Tennessee.

She said she hopes to add further product lines to the winery’s range, as well as branch into organic wine and extend distribution into five to 10 more states.

“We’ll also be implementing innovative partnerships and plan to hire six to 15 more people in the next three to five years,” she said. “We are willing to bet on ourselves, our team, and our community despite the challenging current environment. We believe we can build a bright and prosperous future for our company and our employees by continuing to produce great products and to go above and beyond to make our customers happy.”

Her business partner, Evan Schumann, studied entrepreneurship and finance at university and is member of the fifth generation of his family’s business, Ohio-based metal refinery Schumann & Co. He is the founder of Zitek Corporation and management consulting firm Matrix Growth Ventures, and has also worked for Magnus International and PrintCB.

Source:  Drinks Business and L’uva Bella

 

Les Dames d’Escoffier Ontario Chapter Launches “Women in Wine Talks™” with Elizabeth Gabay MW June 11, 2020

The Les Dames d’Escoffier Ontario (Canada) Chapter created “Women in Wine Talks ™” as an online platform to promote women in the wine industry. Women in Wine Talks includes virtual online conversations, talks, and panel discussions on all aspects of the industry.

Women in Wine Talks ™ shine the spotlight on global women business leaders, winemakers, authors and other industry experts, with participants ranging from beginners through to wine professionals.

 About Les Dames d’Escoffier Ontario (Canada)

The Les Dames d’Escoffier Ontario (Canada) Chapter launched spring 2019, and is fully dedicated to supporting women leadership, providing educational opportunities and hosting philanthropic events in the wine, culinary and hospitality fields. Our members not only share knowledge among colleagues, we support talented young women as they aspire to become the leaders of tomorrow in their chosen professions, through our impactful scholarship program.

First in our Series

The first in our series of Women in Wine Talks ™ includes a talk and tasting with Elizabeth Gabay MW. Elizabeth is one of the world’s foremost authorities on rosé wines, the author of ‘Rosé: Understanding the Pink Wine Revolution’, and President of the Jury at International Rosé Challenge.

Date: June 11, 2020

Time: 2:30 – 3:30 pm EDT (EG is based in South of France)

Cost:  $20.00

Registration: https://bit.ly/3gGqhjn

Choose one, two Rosés, or three Rosés on the list below (recommended by Elizabeth), sit back, sip, savour, and learn while Elizabeth Gabay MW discusses Rosé: Understanding the Pink Wine Revolution.

Wines being discussed (all available at the LCBO)

  1. Muscat and rosé: Banrock Station Pink Moscato or Jacob’s Creek Moscato rosé or Gapsted Moscato rosé or Bodacious Moscato rosé Canada
  2. Historic Italian rosé: CantineArte Gaia Cerasuolo’Abruzzo or Di Bernardino d’Abruzzo or Cirelli Cerasuolo Anfora or Castel del Monte Rosé
  3. The importance of Portugal: Pink Bang Rosé (Touriga Nacional) or Mateus Rosé
  4. Traditional Italian red regions going pink: Kis Sparkling Maremma (could also choose a Tuscan rosé) Rosato, Sangiovese
  5. Central Europe: Pittnauer Rosé Dogma Burgenland, Blaufrankisch
  6. Dark juice rosé: Rustenberg Petit Verdot rosé, South Africa
  7. Indigenous varieties: Karamolegos Terranera, Greece or Kir Yianni Alakies Xinomavro

 

Wines of Argentina appoints Maximiliano Hernández Toso as new president

The Wines of Argentina has recently appointed Maximiliano Hernández Toso as its new president for the next two-year period.

Toso will serve a two-year term as president, supported by Guillermo Barzi, who will continue as acting vice president of the institution.

Tosco was appointed during an Ordinary General Assembly of Wines of Argentina yesterday, held over videoconference.

Hernández Toso is the co-founder and director of WHT Partners, an Argentine venture group that invests in high-end wine and owns Riglos and Huarpe wineries. He has been on Wines of Argentina’s board of directors since 2015, and previously occupying the role of treasurer.

He has an MBA from IDEA and the London Business School and a Master’s in public policy from Carnegie Mellon University, where he studied as a Fulbright fellow. Toso has also taught and directed the wine management programme at ADEN Business School and has also spent time working as a private and independent consultant to entrepreneurs, investors and multi-lateral organizations.

Commenting on his new role, Hernández Toso said: “It is a privilege for me to lead this institution, which I respect and admire for the great work it has done since its inception. We have many challenges ahead, but also great opportunities to innovate and continue bringing Vino Argentino closer to the world and raising the perception of Argentina as a modern winemaking country thanks to the enormous wealth and diversity of our terroirs.”

Vice president Guillermo Barzi, added: “Over the years, Argentina has shown that it is capable of surprising and competing internationally with great wines of the world. The goal is challenging, but we will keep the focus on collaboration agreements and education as a way to reach new audiences.”

Wines of Argentina website:  https://www.winesofargentina.org/en

WineAmerica discloses how wineries are being “creative” in the face of adversity

The average US winery lost US$51,201 from March 15 to April 15 and expects to lose a further $134,626 in May, due to the latest survey by industry association WineAmerica.

There is some cause for optimism.

Having released bleak figures back in March, the industry association has said the results of its second survey has brought in some more “uplifting” findings.

Last month, WineAmerica revealed that US wineries lost a total of US$40,439,764 in March due to Covid-19, but warned that the figure could be far greater as only 10% of the nation’s wineries responded to the information request.

In its second survey, the industry association found that the average winery lost $51,201 between March 15 and April 15 and expects to lose $134,626 in May if the current situation continues through to the end of the month. Wineries estimate that it will take an average of four months to return to normal business levels.

This survey was returned by 727 wineries in 45 states, a smaller survey sample than the first.

It revealed that wineries have resorted to ingenuity in order to bring in money. The most popular new strategy was offering curbside pickups, with 84% of those surveyed saying they had done this. 63% said they had reduced shipping costs, 60% had offered special promotions, 54% had carried out local home deliveries, and 53% said they’d put out ‘wine club specials’.

28% revealed they had engaged in the growing trend of virtual wine tastings. Just 5% of those surveyed said they hadn’t tried any of these initiatives.

WineAmerica stated that it was “highly likely” that the marketing experience and willingness to adapt will “serve the industry for years to come”.

15% of those surveyed said they had been forced to stop production, however, 62% said that production speed had been reduced due to Covid-19.

Due to the global pandemic, the average American winery had to lay off five members of staff, although a quarter of those surveyed said they didn’t make any job cuts.

As expected, wine tourism has taken a huge hit. The average winery in America has 17,644 annual visitors, with 1,482 expected during the 15 March to 15 April period. Due to coronavirus, visitor numbers were down by an average of 90.5% and tasting room sales fell by 74.5%. However, direct-to-consumer (DtC) sales increased by 8%, with many wineries reporting sales rising by double or triple digits.

WineAmerica president Jim Trezise said that wineries and tourism “have a symbiotic relationship” and described visitors as being “the lifeblood of the industry”.

He said that marketing innovations “have mitigated losses due to closed tasting rooms, but not entirely”.

As some states start to lift lockdown measures, Trezise says WineAmerica is working to develop “best practices for tasting rooms” that will both protect the safety of visitors and employees.

https://wineamerica.org/