Silicon Valley Bank Releases 23rd Annual State of the US Wine Industry Report

The 2024 report examines the latest consumption, pricing, sales data, and the most promising wine industry marketing strategies. It provides an in-depth analysis on the key trends impacting the US wine industry:

• While full-category wine sales by volume will be down for a third consecutive year;
• 2023 year-end premium wine sales will likely end with another year of positive value growth;
• Tasting room visitation was lower in the premium segment in 2023, but improvement is expected in 2024;
• Direct-to-consumer sales will grow again modestly in 2024; and
• Conditions for overproduction in the total wine category are present, but inventory supply is more balanced in the premium segment.

Full Report: https://shorturl.at/xHXY9

“Ungrafted Vines” hits the silver screen in 2024

He’s a winemaker, a rebel, an iconoclast and an outspoken critic of Bordeaux’s “industrial soup” style of winemaking – and now Loïc Pasquet is an unlikely movie star.

Pasquet’s battles with the Bordeaux establishment have seen him dragged to court, fined and forbidden from using the Bordeaux appellation because of his commitment ungrafted vines and native Bordeaux varieties. However, he has had the sweetest of revenges by producing a wine that has become the most expensive Bordeaux-produced wine – and now a movie about his achievements is hitting the screen.

The 51-minute documentary will air via Apple TV next year and features Pasquet documenting his battles with bureaucracy and his dedication to recreating the pre-phylloxera wines of Bordeaux. It also features input from respected wine writers like Jane Anson and Jacky Rigaux.

Pasquet, who bought his first bottle of wine when he was just 11 years old, believes that wine is a European cultural treasure and that it has been debased by too many Bordeaux producers in order to pander to critics, rather than simply making wines that reflect the terroir.

“Why destroy that heritage to make one style of wine? They are saying to [wine critic Robert] Parker ‘What wine do you like? We will make it for you.’ They are making industrial soup,” he told journalists at a preview of the film.

The launch of Pasquet’s 2015 vintage of Liber Pater at a staggering $33,000 (subsequent vintages have also hit that mark) was the spark for the documentary, but he was open about his pricing policy.

“This is what my customers will pay to drink something that nobody else can. If you go into space, how much does it cost?”

He was referencing his wines being made from grapes grown on ungrafted vines, an anomaly in Bordeaux.

“If you try a Bordeaux from 1860 [before phylloxera prompted the grafting of vines onto disease-resistant rootstocks] and 1960 you can taste the difference. Grafting changes the chemical composition of the wine.”

Source: Wine Searcher

Taste-Driven AI Algorithms Enhance Wine Selections

For wine enthusiasts, choosing a bottle of wine can be challenging when scanning unfamiliar labels, while shopping. Questions that come to mind: What does it taste like? What was the last one I bought that tasted so good? Vivino, Hello Vino, Wine Searcher and other apps let wine buyers scan labels to get information about the wine and read reviews of others. These apps have been built from artificially intelligent algorithms.

Using taste or other sensory inputs as data sources is entirely new.

Now, scientists from the Technical University of Denmark (DTU), the University of Copenhagen and Caltech have shown that you can add a new parameter to the algorithms that makes it easier to find a precise match for your own taste buds: Namely, people’s impressions of flavour.

“We have demonstrated that, by feeding an algorithm with data consisting of people’s flavour impressions, the algorithm can make more accurate predictions of what kind of wine we individually prefer,” says Thoranna Bender, a graduate student at DTU who conducted the study under the auspices of the Pioneer Centre for AI at the University of Copenhagen.

More accurate predictions of people’s favourite wines
The researchers held wine tastings during which 256 participants were asked to arrange shot-sized cups of different wines on a piece of A3 paper based upon which wines they thought tasted most similarly. The greater the distance between the cups, the greater the difference in their flavour. The method is widely used in consumer tests. The researchers then digitized the points on the sheets of paper by photographing them.

The data collected from the wine tastings was then combined with hundreds of thousands of wine labels and user reviews provided to the researchers by Vivino, a global wine app and marketplace. Next, the researchers developed an algorithm based on the enormous data set.

“The dimension of flavour that we created in the model provides us with information about which wines are similar in taste and which are not. So, for example, I can stand with my favourite bottle of wine and say: I would like to know which wine is most similar to it in taste – or both in taste and price,” says Thoranna Bender.

Professor and co-author Serge Belongie from the Department of Computer Science, who heads the Pioneer Centre for AI at the University of Copenhagen, adds:

“We can see that when the algorithm combines the data from wine labels and reviews with the data from the wine tastings, it makes more accurate predictions of people’s wine preferences than when it only uses the traditional types of data in the form of images and text. So, teaching machines to use human sensory experiences results in better algorithms that benefit the user.”

Thoranna Bender points out that the researchers’ method can easily be transferred to other types of food and drink as well:

“We’ve chosen wine as a case, but the same method can just as well be applied to beer and coffee. For example, the approach can be used to recommend products and perhaps even food recipes to people. And if we can better understand the taste similarities in food, we can also use it in the healthcare sector to put together meals that meet with the tastes and nutritional needs of patients. It might even be used to develop foods tailored to different taste profiles.”
The researchers have published their data on an open server and can be used at no cost.

“We hope that someone out there will want to build upon our data. I’ve already fielded requests from people who have additional data that they would like to include in our dataset. I think that’s really cool,” concludes Thoranna Bender.

Key Facts:
1. Wine apps are using AI algorithms to assist users in selecting wines based on labels and reviews.
2. Researchers integrated people’s flavor impressions into the algorithms for more accurate wine recommendations.
3. This approach can be extended to beer, coffee, and personalized food recommendations, benefiting various industries.

Source: Neuroscience News

Alto Adige: An Alpine Paradise for Wine Lovers and Outdoor Enthusiasts – Filippo Magnani

In September I participated in the 4th edition of the Alto Adige Wine Summit. This rather new event is the largest of its kind that focuses on Alto Adige wines and has already drawn significant international attention. Organized by the Alto Adige Wine Consortium, the event hosted 97 producers, 80 wine and media professionals including Masters of Wine from 12 different countries. The goal was to highlight to the world the complex nature and contrasting qualities that define Alto Adige’s authenticity.

Situated in the picturesque region of South Tyrol in northern Italy, Alto Adige DOC is the country’s smallest wine region and arguably its most complex. Over 98% of the region has the DOC certification. One of the Alto Adige Wine Consortium’s objectives have been to create a more detailed zonation and soil mapping to reflect its complexity. The region is divided into seven distinct growing sub-regions each linked to wine grape varieties, add to that breathtaking alpine scenery, a rich cultural heritage with diverse grape varieties. It’s no surprise the region has gained a reputation for being a must-visit destination among wine enthusiasts.

A Winemaking Crossroads of Culture

Alto Adige, also known as Südtirol, has a fascinating history that has shaped its winemaking traditions. Nestled between the towering peaks of the Dolomites and the Adige River, the region has been influenced by both Italian and Germanic cultures resulting in a fusion of traditions and winemaking techniques. The artisan skill, precision, and reliability from the North has married the charm, art of living and wine tradition from the South.

The region’s winemaking history dates back to ancient times with 2500 years of winemaking tradition, making it the oldest wine region in the German-speaking world. It was the Romans who first recognized the unique potential of Alto Adige’s vineyards. They introduced vines to the region, and over the centuries, grape cultivation flourished.

Climate and Terroir

Alto Adige’s unique climate and terroir play a significant role in shaping the character of its wines. The region benefits from a mix of Mediterranean and Alpine influences creating a cooler climate which helps retain the grapes’ natural acidity. Vineyards are situated on steep slopes, at varying elevations (200m – 1000+m) that provide excellent sun exposure. The high mountains in the north shield vineyards from the coldest northerly winds, but the combination of warm days and cool nights allows the grapes to ripen slowly, resulting in wines with vibrant fruit flavors and good acidity.

The diversity of the region’s soils also contributes to the complexity of its wines. From the limestone-rich soils in the south to the porphyry and schist in the north, Alto Adige offers a wide range of terroirs that influence the flavors and aromas of its wines. All geological formations are found here (volcanism, sedimentation, orogeny) and there are in fact 150 different types of rock. The composition of the soil can change drastically within a few meters. Such a rich land requires meticulous attention to detail.

A Medley of Grape Varieties

With such a complex terroir it’s no surprise that Alto Adige is known for its rich variety of grape varieties that thrive throughout the region. Here tradition meets innovation and change has been embraced by producers. The region used to be a land of reds with main native varieties Schiava and Lagrein, but now the production is 64% white wines using grapes such as Pinot Grigio, Pinot Blanc, Sauvignon Blanc, Gewürztraminer, Chardonnay, Riesling, Sylvaner, Veltliner, Müller Thurgau, and Kerner.

Gewürztraminer has historically been a popular grape grown here, known for its aromatic intensity and floral notes. However, many producers now have started to focus on producing high-end crus of Pinot Grigio and Chardonnay that express more complexity and structure. The region’s cooler climate and higher elevation lend a refreshing acidity resulting in wines that are crisp, elegant, and mineral-driven.

Among the red grape varieties, Lagrein has long been one of Alto Adige’s indigenous specialties. Lagrein wines are full-bodied, yet smooth and velvety, with flavors of dark berries, chocolate, and spices. This variety produces wines that can age gracefully and develop complex aromas over time.

Schiava, another red grape variety, is widely grown in Alto Adige and is known for producing light and fruity red wines with delicate aromas of red berries and floral notes. These wines are easy to drink and excellent when slightly chilled, making them perfect for enjoying on a warm summer day.

Pinot noir also thrives in Alto Adige and is one of the region’s best kept secrets. Many critics argue that these are the best Pinot Noir’s south of the Alps. Pinot Noir in Alto Adige is full of elegance and can exhibit intense fruit aromas, spice, flowers and earthy undertones.

A Strong Winemaking Community

Over the years the region has developed a strong sense of community among winemakers. A total of 5000 producers with only 5600 hectares of vineyards has created a region comprised mostly of smaller family-run estates with longstanding traditions. However, many are too small to make and market wine themselves, which is why a cooperative system was 150 formed 150 years ago. It is one of the pillars of the Alto Adige winemaking business.

Even if the “cantine sociali” used to be linked to massive productions, It is important to underline that these big entities, in the last decades, have aimed for excellence, trying to create the best expression of their land and generally reaching impressive results.

A Traveler’s Paradise

Alto Adige offers a delightful experience for wine enthusiasts and travelers alike. Its beautiful landscape, charming villages, and world-class wineries make it an ideal destination for wine tourism.

Many wineries in the region welcome visitors, offering guided tours of their vineyards and cellars with an opportunity to sample a variety of exceptional wines from aromatic whites to elegant reds and sparkling wines. Accompanied by local delicacies and paired with breathtaking scenery, the wine tourism experience in Alto Adige is truly memorable.

In addition to wine, if you’re an outdoor enthusiast or a culture lover, there is plenty for you to enjoy in this picturesque alpine wonderland. These breathtaking mountains, pristine lakes, and verdant valleys make hiking and mountain biking a popular activity, thanks to its extensive network of trails. From leisurely strolls through picturesque villages to challenging ascents up rugged mountains, there are trails to suit every level of fitness and experience.

The Dolomites, a UNESCO World Heritage site that rises up to more than 3,000 meters with forests, lakes and gentle green valleys that offer a unique play of light and shadow which is difficult to describe without experiencing them. They provide a stunning backdrop for rock climbing and Via Ferrata adventures. With their towering peaks and dramatic cliffs, climbers can enjoy breathtaking views and exhilarating challenges.

Water sports enthusiasts will find plenty of opportunities to indulge in their favorite activities. Lake Caldaro, the largest lake in the region, offers swimming, sailing, and windsurfing. The nearby Passo Resia and the Soasere Lake are perfect for windsurfing and kitesurfing.

During the winter months, Alto Adige becomes a winter playland for snow lovers. The region boasts numerous ski resorts, including Val Gardena, Alta Badia, and Plan de Corones, offering a wide range of slopes for skiers and snowboarders of all levels.

Cross-country skiing and snowshoeing are also popular activities, allowing visitors to explore the snow-covered landscapes at a more relaxed pace. The region’s winter hiking trails provide breathtaking views and a chance to experience the tranquility of nature.

Alto Adige is also renowned for its culinary delights, combining Italian and Austrian influences to create a unique gastronomic experience. One must-try dish is the South Tyrolean dumplings, known as “knödel” in German. These flavorful dumplings come in various flavors and are often served as a side dish or as the main course accompanied by sauces and local ingredients. Pair them with a glass of Schiava, Pinot Blanc or Pinot Grigio for a truly indulgent experience!

Alto Adige is also rich in history and culture, with influences from both Italian and Austrian traditions. Exploring the region’s towns and villages is like stepping back in time. Bolzano, the region’s capital, is a vibrant city with a mix of Italian and Austrian architecture. Strolling through the charming streets, visitors can explore historic sites like the South Tyrol Museum of Archaeology, home to the famous Ötzi the Iceman. The city’s Christmas market, one of the most renowned in Italy, is also a must-visit during the holiday season.

Merano, a spa town famous for its thermal baths, offers a blend of art nouveau and medieval architecture. The Kurhaus, with its beautiful gardens and stunning architecture, is a testament to the town’s elegance and grandeur.

Alto Adige is also home to numerous castles and fortresses, which are a testament to the region’s rich history. Castle Tyrol, Castel Roncolo, and Sigmundskron Castle are just a few examples that provide a glimpse into the region’s medieval past.

Wellness and Relaxation

The area is also renowned for its wellness and spa offerings, providing the perfect retreat for relaxation and rejuvenation. The region boasts a wide range of thermal baths and wellness centers where visitors can unwind and enjoy a variety of treatments. The Terme Merano, with its stunning architecture and luxurious facilities, offers a range of spa treatments and thermal baths.

Napa 2023 could be the “Vintage of a Lifetime’

2023 is looking to be “one of the greats” according to the latest California Vintners Report.

Harvest began late throughout California, running anywhere from two weeks to a full month behind normal timing. Many varieties reached maturity simultaneously, leading to a compressed harvest. Some vintners expected to continue picking grapes into late November.

Did you know that California produces about 80% of the nation’s wine, making it the world’s fourth-largest wine producing region? More than 80% of California wine is made in a Certified Sustainable California Winery and over half of the state’s roughly 615,000 vineyard acres are certified to one of California’s sustainability programs (Certified California Sustainable Winegrowing, Fish Friendly Farming, LODI RULES, Napa Green and SIP Certified).

Winemaker and Winery Owner Comments on California’s Growing Season and Harvest

“The winter was unusually cold and wet, and we even got a rare 10 inches of snow,” said Christian Ahlmann, vice president at Six Sigma Ranch in Lower Lake, Lake County. “The soil moisture was restored while the vines were dormant, and they loved every minute of it when they woke up in spring.”

Despite the later start to harvest, Ahlmann said he was confident that the grapes would reach full maturity before the start of the rainy season. Best of all, he added, quality looks excellent — especially for Tempranillo and Syrah. “We feel great about vintage 2023,” he said.

For Renée Ary, vice president of winemaking at Duckhorn Vineyards, patience was key this year with grapes from Napa and Sonoma. “This is one of the coolest and latest vintages I’ve seen in the last two decades,” she said. “The rain was much needed and helped replenish the reservoirs and nourish the vines.”

The precipitation also brought extra canopy growth and led to 5% to 15% higher yields for most varieties. “The viticulture teams were diligent in thinning and doing crop adjustments where necessary,” she said. “This was key to achieving a balanced crop and promoting ripening in a very late year.”

This year’s Sauvignon Blanc shows bright and clean character, Ary noted, and Merlot is displaying early flavor development, balanced sugars and bright acids. Hearty tannins and complex flavors are hallmarks of this year’s Cabernet Sauvignon. “Our 2023 reds reflect the cooler vintage,” she said. “The wines are elegant and pure, with balanced alcohols and precise flavors.”

Alpha Omega in St. Helena experienced a similarly wet winter and spring, with cool to moderate temperatures.

“We did drop some fruit and got a bit more aggressive with leafing to expose the fruit to the sun to help counter the cool temperatures and promote ripening and green-character degradation,” said winemaker Matt Brain.

Fruit is showing deep color, complex flavors and aromas and good acidity levels, according to Brain. Yields varied from average-to-heavy in some areas. “I love the complexity of the vintage,” he said. “I think that the sub-AVAs will be quite distinct this year, truly revealing the appellation and soil type.”

At Benziger Family Winery in Glen Ellen, Sonoma County, grapes also matured at a slow and steady pace.

“You could almost hear a sigh of relief coming from the soil from the abundant rain this winter,” said Lisa Amaroli, director of winemaking. “The vines grew vigorous canopies, which took some management to tame, but it also set us up for a long growing season. We were able to cut back irrigation by 50% or more and not water some blocks at all.”

Harvest began on Sept. 21, which was the latest start for Benziger since 2011. Amaroli estimated that 60% of the expected volume came in during a condensed two-week window.
Fruit is showing great flavors, Amaroli said, along with concentration and balanced acids at lower sugar levels. “From Sauvignon Blanc to Cabernet Sauvignon and everything in between, all the fruit has been excellent,” she said. “One of the shining stars of the vintage for us is Merlot, which has been fruity, juicy and richly concentrated.”

As for the wines, she said, “We have seen elegance and boldness, but there is something beyond that this year. I’d call it grace.”

Steve Lohr, president and CEO at J. Lohr Vineyards & Wines in San Jose, noted that the growing season was similarly cool, wet and late for all his company’s vineyards, from Napa Valley to Monterey County to Paso Robles. J. Lohr picked its first 2023 grapes on Oct. 2.

“The thing that’s remarkably different this year is the sugars,” he said. “They’re coming up, but they’ve been really slow. And the pH is lower than it has been in previous years across the board. It’s been a nicely balanced year, and the quality has been so high. It has been really wonderful to see. The flavors are just off the charts,” particularly for Pinot Noir and Syrah, as well as Cabernet Sauvignon, Merlot and Cabernet Franc.

While there would normally be some berry shriveling by this time of year, Lohr said, that did not happen thanks to the lack of heat spikes. Yields are 20% to 25% higher than the vineyard team’s initial estimates, and grapes arrived in pristine condition.

“I think the wines are going to be really rich and flavorful with maybe a little higher acid than normal,” he said. “This vintage may be similar to 1997 and 2005, where you have really high quality and higher-than-normal yields.”

In Lodi, the winter rains presented some challenges in the vineyards. The wet weather continued through April, which resulted in increased mildew pressure, large canopies and crowded fruit zones.

“Those who were able to keep their vineyards clean, manage irrigation properly, control crop load and thin away poor fruit are being rewarded with superb fruit quality that is jumping out of the glass,” said Aaron Lange, vice president of vineyard operations at LangeTwins Family Winery and Vineyards in Acampo. “We owe a huge thanks to the vineyard managers, pest control advisors, tractor drivers and labor crews.”

Lodi’s harvest kicked off late and ran long into the fall. Lange continued picking until Nov. 13 — a record for the winery. Despite the delay, Lange was confident that all varieties would fully mature before the season ended. He is also expecting one of the best vintages ever.

“I am very optimistic about the wines from the Lodi and Clarksburg appellations — probably more bullish and excited than any other year in recent history,” he said. “The 2023 vintage has been a stark reminder of the grit required to be a winegrape grower.”

Hanna Linder, viticulture manager at Wente Vineyards in Livermore, also expressed confidence that all the winery’s Livermore Valley and Arroyo Seco fruit would achieve peak ripeness before the season’s end. The real challenge, she said, was physically getting all of the fruit off the vines in a condensed harvest period with higher-than-average yields.
“I think it should be a really great year for red varietals,” Linder said. “We have seen some great color and acid balanced with really awesome flavors. I am excited to see how the Cabernet Sauvignon and Cabernet Franc from Livermore turn out as well as the Pinot Noir from Monterey.”

Scheid Family Wines in Greenfield, Monterey County, began harvesting sparkling wine grapes in late August — just a week past the average start date — but overall, the season ran around three weeks behind. As of Oct. 16, the winery had picked just 40% of its acreage, compared to 80% at the same time in 2022.

“Mother Nature has been on our side and temperatures have been ideal during the past month,” said Heidi Scheid, the winery’s executive vice president. “With a late start, there is always the concern that we will get rains before harvest is complete.” To mitigate the risk, the winery dropped fruit in some late-ripening varieties.

This was one of the coolest growing seasons in recent history, Scheid noted, characterized by heavy winter rains that replenished soil moisture, leached salts from the soil and increased vine vigor. “Both quality and yields look terrific this year,” she said, “and a lot of that is due to the abundant rainfall in the winter.”

Thanks to extended ripening time, she added, the fruit is showing great varietal intensity, balanced acidity, lower alcohol levels and deep color for red varieties. “We are expecting standout cooler-climate varieties, such as Pinot Noir, Sauvignon Blanc and Chardonnay,” she said. “This feels like it’s going to be one of those perfect years where we get good yields and spectacular fruit quality.”

At Tolosa Winery in San Luis Obispo on the Central Coast, harvest began more than a month later than the previous year. “We started later than the day we finished harvest in 2022 for Pinot and Chardonnay,” said winemaker Frederic Delivert.
The growing season brought 150% of the region’s average rainfall, he noted, followed by a cool spring that delayed and extended bud break until early April. While the impacts of the rain were mostly positive, Delivert said the moisture resulted in high mildew pressure and erosion issues in some vineyards, along with wet soils that delayed tractor work and mowing. Due to large canopies, vineyard teams dedicated extra time to leafing and removing side shoots from the plants.

“This year reminds me of 2019, which was also a late vintage, but a great one,” said Delivert. “Pinot Noir and Chardonnay are expressing their coastal trademark — not the plush-and-lush style but showing finesse and elegance with more earthy and mineral touches. This will be a year when everyone can find a good wine in the style that they like from the San Luis Obispo coast.”

For Miller Family Wine Co. in Santa Maria, which owns vineyards in Santa Barbara County and Paso Robles, harvest began about a month later than in 2022. “Everything seems to be moving more slowly than usual, but we’ve been able to get really clean fruit off,” said Nicholas Miller, executive vice president and chief sales and marketing officer. “Our customers have been very happy with the quality.”

In Santa Barbara County, Miller added, “The rain washed away salts accumulated in the soil, allowing the vines to access previously tied-up nutrients.” It also delayed fruit development and pushed picking about a month behind schedule, leading to a compressed harvest. “The extended, mild season allowed for average berry size, significant color development and great flavor.”