June. The vines are growing quickly. Choices made in the vineyard now will affect the outcome of the crop at harvest. Summer is here and the growing season is well under way. It will be time for another harvest before we know it and it looks like there might be a good-sized crop. It's hard to believe we're already halfway through 2008.
Because of the recession, some folks undoubtedly feel that June couldn't have come fast enough. It's been a challenging year for wine sales and consumers are focusing on values. One industry analyst was quoted in the press as saying, "It's almost like people hit the reset button, and all of a sudden we're back to 20 years ago where people are looking for wines under $10."
A large bank with a division specializing in serving wineries just released a report saying that wine businesses across the board are being "pushed to new limits" in the current environment.
The market for vineyard properties and wineries is quiet, as is the bulk wine and grape market. It will pick up before you know it, though. Still, everybody seems to be wondering when the economy will bottom out.
During times like these, it's important to keep in mind that growing, making and selling wine is a long-term business and to keep a long-term view toward the future.
The June issue, as always, includes plenty of interesting information, much of it cutting edge, maybe even bleeding edge. Some is related to being more efficient and sustainable, something everybody is concerned about these days.
One article details how a winery obtained a rebate from its local utility of nearly $1 million while obtaining environmental, operational and cost saving benefits through the installation of energy efficient equipment and products.
Another concerns rainwater harvesting which, though few are doing it, is seen as a real option in regions where water supplies are dwindling. For many wineries with a properly sized installation, the amount of rain harvested can handle barrel washing and process water, landscaping and vineyard irrigation.
Efficient irrigation is a recurring topic in Wine Business Monthly, one that Mark Greenspan weighs in on this month. Another dry season has growers thinking about cutting back even further on their water applications.
There are other articles of interest but one in particular that I'd like to highlight is the Insight & Opinion article, "Impact of Innovation in Flavor, A Call to Action" (see page 10). This brief piece underscores the value that the industry derives from investments in research over time. It reviews some past innovations that have changed the way wine is grown and produced, and explains why we are on the cusp of a new era in terms of understanding and controlling flavors in wine.
There is currently a discussion going on within the industry about the need to fund research, with good reason. To strengthen its competitive advantage, the U.S. grape and wine industry needs to sustain investments in its future by funding research, even in the hardest economic times.
Cyril Penn - Editor
