Milestones in California Wine

Transcription

1 Milestones in California Wine (Part One) Presented by: Jon Fredrikson President Gomberg, Fredrikson & Associates

2 WINE INSTITUTE ` ÄxáàÉÇxá Ç VtÄ yéüç t j Çx CELEBRATING JH lxtüá

3 1934 ` ÄxáàÉÇxá

4 Original Purposes of the Wine Institute, 1934 to open markets to California wine. to reduce burdensome and punitive taxes. to oppose prohibition. to educate consumers and the trade.

5 Wine Sales Obstacles in 1934 Prohibition - wine legal in only 26 states. Restricted outlets and other trade barriers. Only about 11 million cases of wine (mostly dessert wine) were sold. Wine consumption was much higher as many consumers legally made their own wine.

6 Wine Advisory Board Advertising & Promotion A marketing order established the Wine Advisory Board in Wine Institute administered many functions under contract. The Wine Advisory Board's purpose was to promote the uses, joys, and benefits of California wine. Early advertising campaigns focused on wine as a mealtime beverage. This advertising helped convert the industry from dessert wines to table wines.

7 Wine Advisory Board

8 Wine Advisory Board

9 U.S. Wine Consumption Per Capita Gallons of Wine Per Capita Dessert & Other Table Wine Dessert Wines (Port, Sherry 2.5 and Muscatel) Were the Largest Selling 2.1 Wines 2.0until Sources: Wine Institute, GFA, Dept. of Census

10 Roper Wine Attitude & Usage Study (1955) "Wine is not regarded as a familiar part of American life." Wine drinking is an "old world custom." Favorite wines: Port, Sherry, Kosher, Sauterne, Burgundy, Muscatel. Wine is a special occasion beverage. Most respondents agree that wine is healthful. Wine rates high on prestige, but is not considered to be an expensive drink. Wine perceived as being for older people, and particularly older women.

11 Wine Advisory Board

12 Wine Advisory Board

13 Wine Advisory Board

14 Wine Institute s Work on Opening Markets Wine Institute began work on opening closed markets in Hundreds of obstacles to orderly wine marketing were proposed and defeated. Prohibition remained in Kansas until 1948, in Oklahoma until 1959 and in Mississippi until Even in 1970 there were local prohibition laws in 32 states. Many Prohibition moves defeated, including major attempts to establish local prohibition by constitutional amendment in California in 1936, 1948, and Wine Institute s work on opening markets continues today with direct-to-consumer shipping in many states.

15 Evolution of California Winery Advertising Over the Decades

16 We, at Roma, have an idea that our forward march together is traceable to free-enterprise competition Because all have this freedom to fight we, at Roma, take off our hats to the system 1952 ` ÄxáàÉÇxá

17 1950s

18 1960s

19 ` ÄxáàÉÇxá

20 California Wine Grape Acreage 1968 to 1977 Planted Acreage Soared by 200,000 Acres Up 140% Non-Bearing Acres Bearing Acres Sources: Calif. Dept. of Food & Agriculture.

21 The Emergence of Varietal Wines 1942

22 Frank Schoonmaker Champion of Varietal Wines Was a respected writer, the author of the Complete Wine Book (1934) and Frank Schoonmaker's Encyclopedia of Wine (1964). One of first importers of wines bottled by the grower/winemaker rather than by a negociant. Owned five retail stores in major markets. Became the Champion of varietal wines. As a consultant to Almaden and other wineries, introduced the idea of labeling wines using varietal names rather than semi-generic names borrowed from European regions ("Burgundy", "Chablis", "Rhine", etc.). In 1956, convinced Almaden to plant the largest single planting in history of varietal grapes in Paicines in San Benito County.

23 The Emergence of Varietal Wines MR. PRODUCER: You have been selling most of the wine you make for somewhere between 20 and 30 cents a gallon. You will always sell some wine at such prices. But some of your wines are better than others, and you should get a premium for these superior wines. So we urge you to keep your superior varieties apart, to give special care to such wines, to age them and bottle them yourself, and to sell them for what they are worth. You will be able to do so when the public comes to understand the meaning of varietal names. 1942

24 GAMIT Brands of the 1970s

25 In the 1980s, Fighting Varietals Introduced American Consumers to Affordable California Varietal Wines

26 Wine s Global Transformation For decades, wine has been going through a remarkable transformation. The increase in American consumer demand for wine coincides with the enormous breakthroughs in enological and viticultural technology, improving quality. The emergence of varietal wines provided consumers with an understandable common language for wine, boosting consumption. The victory of California wines in the 1976 Paris tasting brought world recognition to California wine. The quality bar rises every year - today California wines deliver more quality at all price points than ever before.

27 California Wine Grape Crush, 1912 to Millions of Tons Crushed Demand for Quality Wine Has Driven Up the Crush by Nearly Sixfold Since the Early 1970s Sources: California Department of Food & Agriculture.

28 j Çx \Çáà àâàx ` ÄxáàÉÇxá Éy à{x ctáà JH lxtüá Advocates legislation preserving sales at wineries, allowing for the development of winery retail sales and tourism Adopts principles of good advertising practices, later published as Wine Institute Code of Advertising Standards Starts Washington Week program bringing California vintners to the nation s capitol Congress passes the Wine Equity and Export Expansion Act to help reduce barriers to trade abroad for American wines Wine Institute advocates for the passage of direct-to-consumer wine shipping legislation in California, the first in the U.S The U.S. Dietary Guidelines acknowledge for the first time that moderate wine and alcohol consumption can reduce the risk for heart disease for some individuals Wine Institute and the California Association of Winegrape Growers introduce the California Code of Sustainable Winegrowing The U.S. Supreme Court rules that states cannot ban out-of-state wineries from shipping wine directly to consumers while allowing in-state wine producers to do so Wine Institute partners with the California Travel and Tourism Commission on national television to promote the state s wine, food and travel offering.

29 j Çx \Çáà àâàx ` ÄxáàÉÇxá Éy à{x ctáà JH lxtüá Advocates legislation preserving sales at wineries, allowing for the development of winery retail sales and tourism Adopts principles of good advertising practices, later published as Wine Institute Code of Advertising Standards Starts Washington Week program bringing California vintners to the nation s capitol Congress passes the Wine Equity and Export Expansion Act to help reduce barriers to trade abroad for American wines Wine Institute advocates for the passage of direct-to-consumer wine shipping legislation in California, the first in the U.S The U.S. Dietary Guidelines acknowledge for the first time that moderate wine and alcohol consumption can reduce the risk for heart disease for some individuals Wine Institute and the California Association of Winegrape Growers introduce the California Code of Sustainable Winegrowing The U.S. Supreme Court rules that states cannot ban out-of-state wineries from shipping wine directly to consumers while allowing in-state wine producers to do so Wine Institute partners with the California Travel and Tourism Commission on national television to promote the state s wine, food and travel offering.

30 U.S. Wine Consumption Per Capita 2.5 Gallons of Wine Per Capita Dessert & Other Table Wine Sources: Wine Institute, GFA, Dept. of Census

31 The U.S. Wine Market, 1934 to Industry Shipments Rose to 317 Million Cases 300 Millions of Cases Shipped Wine Institute s Years of Work Helped Build the 200 U.S. into a 317 Million Case Wine 150 Market in Million Cases Sources: Wine Institute, BATF, DOC. Includes bulk wines.

32 A Time to Celebrate Seventy-five years after the repeal of prohibition, the United States is on the threshold of becoming the world's largest wine market. Wine Institute played a major role in this achievement, opening markets, fighting taxes, opposing prohibition, and educating consumers about the healthful benefits of moderate wine consumption. The principles on which Wine Institute was founded have not changed and neither have the challenges that confront it today. Just as those who forget history are condemned to repeat it, those who remember history know full well just how much there is to celebrate on an occasion such as this.

33 WINE INSTITUTE ` ÄxáàÉÇxá Ç VtÄ yéüç t j Çx CELEBRATING JH lxtüá