Grape & Wine Magazine - June/July 2024

New Dried-on-Vine Raisin Variety a Solution to Labor Costs

Winery Feature: Scheid Family Wines

NGRA Partners with USDA-ARS to Launch New Grape Research

June / July 2024 POWERED BY JCS MARKETING

Volume 2: Issue 3

PUBLISHER: Jason Scott Email: jason@jcsmarketinginc.com EDITOR: Taylor Chalstrom Email: article@jcsmarketinginc.com PRODUCTION: design@jcsmarketinginc.com Phone: 559.352.4456 Fax: 559.472.3113 Web: www.grapeandwinemag.com

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GROWING THE GRAPE AND WINE INDUSTRY ONE READER AT A TIME

06 GEL BAITS TARGET SUGAR-FEEDING ANTS AND DELIVER AN ULTRA-LOW INSECTICIDE DOSE

10 WINERY FEATURE: SCHEID FAMILY WINES

CONTRIBUTING WRITERS & INDUSTRY SUPPORT

Cecilia Parsons Associate Editor

Vicky Boyd Contributing Writer

Donnell Brown President, National Grape Research Alliance

Whitney Brownie Vineyard Team

Pam Strayer Contributing Writer Steve Pastis Contributing Writer

PROFIT TO PURPOSE: 14 FROM SUSTAINABLE WINE BUSINESSES MAKE A SOCIAL IMPACT

ARTIFICIAL INTELLIGENCE 20 USING TO PREDICT A WINE’S SUCCESS MONEY MANAGEMENT 24 SMART MAY HOLD THE KEY TO GRAPE GROWERS EARNING A PROFIT IN 2024

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TOP 5 TAKEAWAYS FROM THE 2024 SUSTAINABILITY SUMMIT

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NGRA PARTNERS WITH USDA-ARS TO LAUNCH NEW GRAPE RESEARCH

Jacquelyn Fernandes Territory Manager, Nutrien Financial Jason Scott Publisher/CEO, Grape & Wine, JCS Marketing Inc.

UC COOPERATIVE EXTENSION ADVISORY BOARD

Surendra Dara Director, North Willamette Research and Extension Center Kevin Day UCCE Pomology Farm Advisor, Tulare and Kings Counties Elizabeth Fichtner UCCE Farm Advisor, Kings and Tulare Counties

Steven Koike Tri-Cal Diagnostics Jhalendra Rijal UCCE Integrated Pest Management Advisor, Stanislaus County Mohammad Yaghmour UCCE Area Orchard Systems Advisor, Kern County

Katherine Jarvis-Shean UCCE Orchard Systems Advisor, Sacramento, Solano and Yolo Counties

DRIED-ON-VINE 34 NEW RAISIN VARIETY A

SOLUTION TO LABOR COSTS

The articles, research, industry updates, company profiles, and advertisements in this publication are the professional opinions of writers and advertisers. Progressive Crop Consultant does not assume any responsibility for the opinions given in the publication.

January 2023

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GROWING THE GRAPE AND WINE INDUSTRY ONE READER AT A TIME

By JASON SCOTT | Publisher/CEO, Grape & Wine, JCS Marketing Inc.

R

eadership studies play a crucial role in the agricultural sector, particularly for specialized industries like grape wine. These studies help publications like Grape & Wine understand their audience better, enabling them to tailor content to the specific needs and interests of grape growers, winemakers, consultants and other industry professionals.

This targeted approach is vital for fostering a thriving agriculture industry.

Firstly, readership studies provide valuable insights into the preferences and information needs of industry professionals. By analyzing data on what topics are most read and appreciated, Grape & Wine can focus on producing relevant and engaging content. This could range from the latest grape growing strategies to wine market trends and winery profiles. Such information not only keeps readers informed but also helps them make better decisions for their operation, ultimately leading to improved crop yields, quality and business success.

In a recent Baxter Research Center media study in Grape & Wine, 58 grape growers, winemakers, consultants and other industry professionals shared overwhelmingly positive feedback.

“

I need to keep my finger on the pulse of the industry, and this magazine greatly assists in doing that. Always nice to be informed of new products and techniques being used in the industry, – R. Weaver “Good cutting-edge content," said one respondent.

”

“My work is closely related to the vineyard industry; topics and articles in this magazine have been very timely and spoton,” said another respondent.

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Grape & Wine Magazine

June / July 2024

“"I am new to the grape industry, and I value how Grape and Wine presents a broad array of the needs and challenges wine growers face,” – D. Bonetti

”

“Provides me relevant and current information that supports my interests and profession as a wine educator and enologist," another said.

Secondly, readership feedback is essential for fostering a sense of community within the industry. When grape growers and winemakers actively participate in readership studies, they contribute to the creation of a publication that truly represents their collective voice and concerns. This collaboration can lead to the sharing of innovative ideas, experiences and best practices, further strengthening the industry as a whole.

Moreover, providing feedback to Grape & Wine can help address specific challenges faced by the industry. For instance, concerns about grape growing strategies, water, wine market trends or consumer preferences can be highlighted and addressed through in-depth articles and expert opinions. By understanding these issues, the magazine can play a pivotal role in advocating for the industry and influencing policy decisions that benefit the grape and wine industry.

In conclusion, readership studies are indispensable for a publication like Grape & Wine. They enable the publication to produce content that is not only informative and engaging but also directly relevant to the needs of the industry. Grape growers and winemakers should actively participate in these studies to ensure their voices are heard and the publication continues to be a valuable resource for the industry's growth and success.

Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

June / July 2024 www.grapeandwinemag.com

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When mixed with water and allowed to sit at least two hours, powdered or crystalline acrylamides will turn into hydrogels, which can be used as part of an ant bait system.

Gel baits target sugar-feeding ants and deliver an ultra-low insecticide dose.

By VICKY BOYD | Contributing Writer

R

esearchers are looking to the super-absorbent hydrogel technology behind disposable baby diapers as part of a possible ant management system.

Although the hydrogels still need California Department of Pesticide Regulation (CDPR) approval for use as adjuvants, David Haviland, UCCE integrated pest management advisor in Kern County, said he’s hopeful it will come shortly.

Developing better ant control is part of an integrated approach to reducing the amount of grapevine leafroll associated virus-3 and vitivirus in grape vines, said Stephanie Bolton, Lodi Winegrape Commission grower research and education director.

That’s because ants transport and tend vine mealybugs within the vineyard for their honeydew. In addition, ants disrupt integrated pest management by protecting mealybugs from natural predators. Mealybugs, in turn, transmit viruses as they feed on the vines.

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Grape & Wine Magazine

If growers can reduce ant populations, then along with other IPM measures like mealybug mating disruption, biological control and roguing infected vines, they should in theory be able to help slow virus spread.

Haviland, who has been working on a gel ant bait system with Extension colleagues for several years, demonstrated mixing and application during a recent Lodi Winegrape

Commission field day in a Lodi-area vineyard.

He’s not alone. Monica Cooper, UCCE viticulture advisor for Napa County, conducted a pilot study in 2015 followed by two years of replicated field trials in North Coast vineyards in 2016 and 2017 looking at gel-based ant baits.

She found the system significantly reduced Argentine ant populations providing users correctly identified

UCCE IPM Advisor David Haviland mounted a Herd spreader on an ATV to apply gel ant bait in vineyard trials.

June / July 2024

the target ant species and the pesticide concentration in the gel mixture produced delayed toxicity.

Chlorpyrifos Alternatives

The latest round of gel ant bait trials was a result of a $1.34 million CDPR grant looking at alternatives to chlorpyrifos, a now-banned insecticide.

The researchers focused on ant species that feed on sugar.

Although more than 200 ant species have been identified in the state, only a handful are considered vineyard pests (all photos by V. Boyd.)

Commercial ant baits that attract protein- or lipid-feeding ants, such as Southern fire ants or pavement ants, are already available. Almond growers, for example, apply them to their orchards about six weeks before harvest to control ants that feed on almonds drying on the ground after shaking.

If the pesticide acts too quickly, it kills off only a portion of the workers, and the colony can rebuild.

These baits typically use soybean oil as an attractant and contain a small amount of a toxicant or insect growth regulator. The theory is worker ants take the material back to the colony, where they feed it to other workers, larvae and the queen. Eventually, the

Proper ant identification is important to determine whether ants are pests and to ensure the correct bait. More than 275 ant species are found in the state, but only a handful are considered agricultural pests, Haviland said.

colony collapses.

Know Thy Ant Species

In Lodi-area vineyards, the main ant pests are the native gray ant (Formica aerate) and pavement ant (Tetramorium immigrans), while in North Coast vineyards and southern San Joaquin Valley grapes and citrus, Argentine ants (Linepithema humile) are the predominant ant pest.

Native gray, pavement and Argentine ants are attracted to sugar-containing substances, including honeydew produced by Asian citrus psyllid

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reduced ants, which allowed natural enemies to attack the psyllid as well as other sap-sucking pests. As a result, the amount of new citrus flush infested with Asian citrus psyllid decreased by 75%, and the number of citrus mealybugs were reduced by 50%.

Haviland and Cooper, on the other hand, looked at polyacrylamides. They are the same materials used in ultraabsorbent baby diapers as well as to increase soil water-holding capacity in container-grown plants. The products are also available in macrobins.

Acrylamides are readily available in garden centers or in larger macrobins to increase soil water-holding capacity in container-grown plants.

When used to prolong irrigation in plants, polyacrylamides are considered soil amendments and don’t need CDPR registration, Haviland said. When used as part of ant baits, they are considered pesticide carriers and therefore classified as adjuvants. In California, adjuvants also must undergo CDPR registration, he said.

(which can transmit citrus greening, also known as huanglongbing) and mealybugs.

Monitoring can be done using cotton balls soaked in a 25% sugar water solution. Sample one out of every 20 rows. Within the target row, place a cotton ball within 5 inches of a vine trunk once every 30 vines.

Wait two hours and return to count the number of ants. Rather than counting individual insects, Haviland said it’s often easier to score them zero for none, 1 for a few, 2 for about 11 to 49 and 3 for 50 or more.

Seeking Better Ant Control

Baits for sugar-feeding ants must be in liquid form to be attractive, so granulated sugar doesn’t work well. In addition, sugary liquid baits only work during the spring. Once insect pests begin producing honeydew, ants will instead gravitate toward them.

Haviland said they are working with the citrus and the wine and table grape industries to request a Section 18 emergency use exemption for the gels.

Off-the-shelf polyacrylamides come in granular or crystal form and change into gels as they absorb water. In the case of the ant bait, the researchers mixed four parts water and one part granulated sugar to which they added an “ultra-low” amount of insecticide.

Once they created a solution, they added polyacrylamide and allowed the mixture to sit for at least two hours in

a properly labeled, covered container to rehydrate.

Water quality, such as salinity and hardness, may affect gel formation, said Nathan Mercer with CDFA. As a UC Berkeley Department of Environmental Science, Policy and Management postdoctoral researcher, he was involved in the Lodi trials in 2022 and 2023. Mercer recommended users first mix a jar of the gel to test water quality.

Lodi Trials Targeted Pavement Ants

In the Lodi trials, researchers looked at four insecticides, all used at a fraction of the labeled rate: boric acid, thiamethoxam, abamectin and pyriproxyfen. They applied the gel bait at either 5 gallons per acre or 10 gallons per acre using a hand spreader the first year. During the second year, they used a Herd spreader hitched to an ATV. Calibration and maintaining an even speed are important to ensure users aren’t over- or under-applying the gel bait, Haviland said.

Users should try to apply the gel bait early in the morning, under foggy or cloudy conditions, and aim for the shade under canopies to prolong moisture as much as possible, Haviland said. Under optimum conditions, the bait will remain attractive for up to two days before it dries out.

Conversely, he advised against applying

Although liquid bait dispensers are available for sugar-feeding ants, Haviland said the number required per acre to be effective in vineyards makes them unfeasible for commercial growers.

That led researchers to look at hydrogels that can retain moisture for several hours as potential carriers.

UC Riverside Biological Control Specialist Mark Hoddle examined sodium alginate gels made from seaweed as carriers for minute amounts of pesticides. After two years of trials in citrus, he found the gel baits significantly 8

Grape & Wine Magazine

UCCE IPM Advisor David Haviland demonstrated how to apply gel ant bait during a recent field day hosted by the Lodi Winegrape Commission.

June / July 2024

it under the blazing sun in the middle of the day when the gel may dry out in less than two hours.

The researchers also compared plots that received only one treatment to those that had received two applications.

“All the insecticides worked pretty well to some degree at both 5 gallons and 10 gallons per acre,” Mercer said. “All did a good job of keeping down the pavement ants, especially Platinum (thiamethoxam). Platinum did a really good job after just one application.”

In the plots that received two thiamethoxam treatments, the researchers saw a 38% reduction in vine mealybug numbers in grape clusters.

North Coast Trials Looked Good, Too

Cooper looked at polyacrylamide gel bait laced with boric acid at 0.05% or thiamethoxam at 0.0006% active ingredient. She also found both worked well.

In vineyards treated with two applications of thiamethoxam-laced bait, ant foraging was eliminated for five to six weeks, and activity was further suppressed for up to six months. Ant activity was based on sugar water-laced cotton ball surveys.

In vineyards treated with two applications of boric acid-laced bait, ant foraging was eliminated for four to six weeks, and activity was further suppressed for up to five months.

Cooper said the overall ant population declines suggest the effects of bait applications over multiple seasons are cumulative.

Start Early

For the ant baits to be successful, Haviland provided a few caveats. They are only effective in the spring before pests begin to exude honeydew.

“Once you get honeydew, the ants are smart; they know the difference between sugar water from Walmart and filet

mignon,” he said.

In addition, the ants must be foraging, which typically starts in mid-March in the interior and southern regions of California, whereas in the North Coast region it may be later. Survey ants with sugar-soaked cotton balls to determine site-specific differences in timing.

As part of a vine mealybug program in interior and southern regions of California, Haviland recommended a gel ant bait application about April 1, followed by a second about four weeks later if needed based on ant surveys.

The costliest ingredient in the gel bait is granulated sugar, and Haviland said he plans to conduct trials this season to see if cutting the amount in half to an 8:1 water-to-sugar ratio will be as attractive to ants as using a 4:1 rate.

Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

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Winery Feature:

Scheid Family Wines

Jack of All Trades Scheid Family Wines Hits Sweet Spot with Its Own No-Sugar, Low-Alcohol Brand

By PAM STRAYER | Contributing Writer status in 2021, rivaling the performance of millennial and Gen Z favorite Josh wine. The winery also launched its first TV commercial to support Sunny’s launch.

Scheid Family Wines Founder Al Scheid (middle) with his two children, Heidi (right) and Scott (left), who each got degrees in finance and outside experience in the finance industry before joining the family business as Executive Vice President and President, respectively.

S

cheid Family Wines in Monterey County uniquely shows how two generations of leaders in one family can successfully navigate the twists and turns of California’s wine industry over a span of 51 years yet innovate and grow the business, even in trying times.

The winery’s success is the result of its nimble and agile approach as it explores different paths to profit.

Its newest wine brand, Sunny with a Chance of Flowers, shot to Hot Brand 10

Grape & Wine Magazine

In 2023, Wine Business ranked Scheid as the 25th largest winery in the U.S. It has 3,000+ acres of vineyards in Monterey County with annual sales of 900,000 cases. 60% of its business is in private labels (it makes 45 of them today for major retailers) and 40% of its business is in its 10 branded wines.

It supplies 90% of the grapes for all the wines, buying 10%, including Paso Robles Cabernet (for a client who wanted Paso on a label).

The winery makes 100,000 cases a year of its new greatest hit, Sunny with a Chance of Flowers, in the Better for You (BFY) category, one which grew in dollar sales 13.3% (NIQ scan data from March 24, 2023-24) compared to non-BFY wines, which declined 1.5% in the same period.

Unit sales were up 14.2% for BFY wine while non-BFY wines declined 4.3% in unit sales.

That new brand was an early entrant in the BFY space, thanks to Heidi Scheid perusing the grocery aisle for up-andcoming trends. It was there she also

June / July 2024

noticed consumers and products that said “no sugar” were gaining ground.

In 1972, business-savvy executive Al Scheid, a graduate of Harvard Business School, started the company as a tax loss venture, initially buying 10 acres of vines.

The company grew and grew as grape growers and then bulk winemakers selling to major brands. Today, it has 12 estate vineyards over a 70-mile stretch of the Salinas Valley.

In 2005, Scheid built its own winery, making private label wines, and in 2012 launched its own brands.

Financial prowess is baked into the heritage. Two of Al’s children, Heidi Scheid and Scott Scheid, each got degrees in finance and outside experience in the finance industry before joining the family business as Executive Vice President and President, respectively.

Scheid’s entry into finished wines has been fairly spectacular, growing from 4,000 to 700,000 cases in less than 10 years. The producer aims to get to a million cases by 2025.

In 2020, Wine Enthusiast honored Heidi with its Winestar award for Person of the Year.

Today, the company’s original and most expensive brand, Scheid Vineyards, features wines ranging in price from $28 to $90, fueled by direct-to-consumer sales.

It has two tasting rooms: one in the popular wine tourist town of Carmel and the other in Greenfield in Salinas Valley.

It’s arcing into the future with next-generation wine brands focused on younger

and health-conscious consumers.

Targeting Gen Z and Millenials with Better for You, LowAlcohol or Organic Brands

Scheid’s finished wine brands are on a roll, chasing younger and more health-conscious consumers with BFY, low-alcohol bottled wines as well as canned, fruit-flavored, low-alcohol spritzers and organically grown wines.

All three are gluten free and vegan.

Introduced in 2020, Sunny with a Chance of Flowers ($17 to $20) is a big hit in the marketplace, growing from 11,000 to 100,000 cases now with the support of major retailers.

recipes that mix in everything from watermelon slices or ginger beer to alcoholic add-ins. Examples include elderflower-based St. Germain liqueur with Pinot Noir for a “Red Blossom” or tequila for a wine-based “Sunny-rita.”

Birth of a New Brand with Positivity: Sunny with a Chance of Flowers

Speaking in March at the Wine Market Council’s annual meeting, Scheid told the audience how she zeroed in on the BFY category and the importance of zero sugar before launching her Sunny with a Chance of Flowers brand.

Sunny’s slogan, “Moderation has never “Why did White Claw become so tasted so good!”, messages its major popular so quickly?” she asked. “I appeal: 9% alcohol, 85 calories per think a lot of it is labeling. It has serving and zero sugar.

5% alcohol right there at the top of the label. It says 100 calories at the Made with natural extracts and botani- top. It has ‘gluten free.’” cals, Hoxie is similarly positioned with 5% alcohol, 90 calories and no added She said the wine producers could sugar. Hoxie first became popular in learn from that. hipster circles in Los Angeles as brand creator and founder Josh Rosenstein, “We in the wine industry are not a former chef, concocted staff drinks really known for good labeling in with wine, fruit and herbs. terms of giving consumers information. There are a lot of zero-sugThe grapes (Chardonnay, Pinot Noir, ar wines out there. Consumers Petite Sirah and Sauvignon blanc) are don't know which ones they are. all grown by Scheid. The three canned, And they have to kind of figure flavored wines include Strawberry Rosé that out, by trial and error, whethand Lemon Ginger Rosé along with er it tastes sweet to them or not.

Grapefruit Elderflower, its most popular. So, we took a look at White Claw Wine Enthusiast gave Hoxie a 91-point and just thought, ‘Okay, there's score. something there that they're doing that we're not doing.’”

Since it has partnered with Scheid, Hoxie sells in BevMo, Sprouts, Target, At the same time, she said, “We Whole Foods and independent wine were seeing all these news articles shops. Rosenstein is now Scheid’s Direc- about low [or] no-alcohol trends tor of Alternative Beverages. and lifestyles. We really started to ask ourselves, ‘Where does wine “I think alternative packaging in cans fit into this lifestyle conversation?’” is also important,” Heidi said. “I think canned products are really suited to She set out to create a brand with low lower alcohol, and something that has alcohol and high transparency. some spritz, not still wine.”

“If making wine is hard, making a Expanding its spritz niche, Scheid also low-alcohol wine is harder, and makpartnered with Q Mixers to complement ing a low-alcohol, zero-sugar wine that its Sunny wines, offering consumers tastes really great is super-duper hard,” more spritz flavor options. Sunny’s she said. Scheid uses a reverse osmosis website leverages the cocktail craze with process to curb the alcohol levels. She

In 1972, business-savvy executive Al Scheid, a graduate of Harvard Business School, started the Scheid Family Wines, originally Monterey Farming Corp, as a tax loss venture, initially buying 10 acres of vines. Today, the company has 12 estate vineyards over a 70-mile stretch of the Salinas Valley (all photos courtesy Scheid Family Wines.)

wondered if ‘zero sugar’ really had to be in the mix.

“Taking a lesson from other product categories convinced us sugar is a very important attribute to consumers, and they want to know what the level of sugar is,” she said.

Sustainability has also proved to be a market differentiator, she said. Scheid

June / July 2024 www.grapeandwinemag.com

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she said. “We were able to start it off as organic rather than doing the conversion, which is a little more complex. We found we can be pretty successful down there.”

Scheid said the winery has plenty of grapes for its organic program, selling Grandeur at Whole Foods, Natural Grocers and Total Wine. “The organic market is still pretty nascent,” she said.

“Going organic–that's a big ship to turn.

It'll be interesting to see how that space unfolds over the next few years.”

Scheid Family Wines makes 100,000 cases a year of its new greatest hit, Sunny with a Chance of Flowers, in the Better for You category. Its appeal factors include 9% alcohol, 85 calories per serving and zero sugar.

is certified sustainable by the Wine Insti- coastal and northern areas (regions I, II tute’s CSWA program, won the Califorand III, according to the Winkler index) nia Green Medal Environment Award struggled with mildew. in 2019 and has been 100% powered by wind for seven years.

“It's really kind of just pushing ourselves as growers to see what's possible in our Scheid credits brand developer Theresa region,” Heidi said.

Scripps for the Sunny brand name and packaging.

“In terms of lifestyle attributes, we really wanted to project positivity. We wanted it to lean into moderation. When we were originally launching Sunny, there was pushback from people saying, ‘Wine is already the drink of moderation. Why do we need a healthier version of wine?’”

Heidi responded, “Because we can do better. I can lean into that more for people who really are interested in pursuing moderation and who are interested in consumption.”

Pivoting to Organics–Grandeur

Transparency and going after a distinct market segment are also high on the priority list with Scheid’s organically grown Grandeur brand, produced solely from the company's 667 acres of certified organic grapes.

After originally announcing it would convert all 3,000+ acres to organic, Scheid dialed back its organic expansion plans, responding both to the market and its initial organic conversion efforts which found that vines in its coolest, 12

Grape & Wine Magazine

But organics’ appeal to younger consumers is compelling, she said.

According to Bonterra, sales of organically farmed wines grew 7% in 2023 in a year when overall wine sales declined.

Scheid’s Aristotle brand, a $12.99 Whole Foods exclusive from Scheid’s organically grown Petite Sirah, outperformed peers in a year when the brand changed from sustainable to organic and redesigned its label. Aristotle’s depletions were up 7% in 2022 over the previous year, while similarly priced Petite Sirah wines were down 24%, a Scheid spokesperson said.

I think canned products are really suited to lower alcohol, and something that has some spritz, not still wine.

In addition, Scheid’s organically grown wines have ingredient labeling. “I think younger people care very much about how their products they consume are made and what's in them,” Heidi said.

“They want a level of transparency. Grandeur has ingredient labeling on the back.

I don't see that happening very much across the industry.”

-Heidi Scheid, Scheid Family Wines

Into the Future: Engagement and Portfolio Diversity Are Key to Success

The vineyard team found greater success with its warmer, southerly vineyards in Hames Valley (classified Region IV in the Winkler index) focusing initially on Petite Sirah. Cabernet Franc, Malbec and Petit Verdot soon followed. The Region IV organic vines are close to the San Luis Obispo County border with Paso Robles.

“We cut our teeth on organic farming on the 90-acre White Flower Vineyard,”

June / July 2024

Scheid looks at the evolving wine landscape as an opportunity to broaden the offerings. Wellness is one way to build engagement. Organics is another. And transparency is another option.

“A brand has to deliver the right price for that particular consumer to meet them where they are,” she said.

Though the winery has 10 brands of its own, Scheid said Sunny is the No. 1 priority. “It's our largest brand and very much has the support of our retailers

who are seeing great success within that ‘Better for You’ category,” she said.

“Building brand loyalty is a different game these days. It's tougher. I think Sunny with a Chance of Flowers wins because it has this really positive brand ethos. Many people are drawn to that.

We definitely have extremely loyal consumers of Sunny, which is great to see. We hear from them a lot, through social media and DMs. People are really engaged.

Younger drinkers are much more focused on drinking according to the occasion, she said. And that calls for variety.

and then a glass of Sunny Pinot Noir with dinner at night. They're the littlest pours you've ever seen. But she loves having this 9% option available.”

“I will always love the classically made wines. I think that's where people will Heidi’s mom was a wine drinker her end up or will at least have as part of entire life, and is extremely healthy, but their repertoire. They might drink Sunstopped drinking for two years because ny with a Chance of Flowers where that her doctor said he didn’t know if she really fits what they're trying to do on should be drinking wine at her age. a Tuesday night and then Hoxie by the pool on a Saturday or down at the beach. “She was really sad that she had to give And then hopefully, they'll drink a up wine,” said Scheid. beautiful, classically made Chardonnay “There's always going to be that consum- or Pinot Noir or a Cabernet on Friday “When we first bottled it, I dropped off er that wants the bigger, bolder wine,” and Saturday night. There's room for all some Sunny bottles for her, and she she continued. “We certainly have that of it. And I think that's what consumers called me that night, and was literally in our portfolio. And there are people want these days is that choice of having crying, saying, ‘You have allowed me to that buy at different price points. But the a wine that suits the occasion.” reclaim a piece of my life that I had to younger consumer who we’re trying to give up. Because you don't understand on-ramp into wine has so many choices That variety of wine can maintain wine’s what it's like to be in your 80s, nobody in front of them, a really astounding universal appeal, she said. gives you anything to add to your life. number of choices just when they walk They only take away things like you're into a store. And then if they get onto “That applies to people whether they're not supposed to do. So finally, I get to their phones, which they're typically on young moms, or middle aged, or like my have something come back into my life.'” quite a bit, there's just a whole world out mom who's 86 who had given up drinkComments about this article? We want there. So how do we create something ing. Sunny pulled her back into the wine to hear from you. Feel free to email us at that excites them?” world. She has her little glass of Sunny article@jcsmarketinginc.com Sauvignon Blanc at 5 p.m. every day,

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SUSTAINABLE STORIES SERIES

Niner Wine Estates in Paso Robles, Calif. takes the opportunity to be philanthropic in its community wherever possible (all photos courtesy Niner Wine Estates.)

FROM PROFIT TO PURPOSE:

SUSTAINABLE WINE BUSINESSES MAKE A SOCIAL IMPACT

By WHITNEY BROWNIE | Vineyard Team

T

he availability of information has changed the way businesses operate and engage with customers. While a company can offer solutions to everyday problems through their innovative products and specialized services, price and convenience are no longer the sole determinants of their success. Consumers seek to align their spending habits with their personal values. Thanks to the digitized world, they have the tools to find out if a company is a good fit.

Today’s shopper understands when they make a purchase, their money does more than buy a product or service. Their dollars also support the mission and initiatives of the business they purchased from. In today’s socially conscious marketplace, consumers want to know how the businesses they support make a positive impact.

70% of Americans believe it’s important for companies to make the world a better place. Shareholders hold a similar sentiment: 73% of investors stated efforts to improve the environment and society contribute to their investment decisions (Aflac 2019).

In fact, some will even part ways with a brand over a conflict in values. Three-quarters of participants in a 2022 Harris Poll research survey reported having done just that. In the same survey, 39% said a values mismatch would lead them to permanently boycott their favorite brand, and 24% would break ties at least temporarily (Consumer Goods Technology 2022).

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June / July 2024

When it comes to making a positive change toward sustainability, “Consumers see themselves, along with for-profit companies, as the primary catalysts for change,” (Business Wire 2021). But organizations shouldn’t participate in these efforts blindly.

A company’s philanthropic endeavors should reflect their mission and align with their core values. The beauty of a successful philanthropy program is it isn’t a one-size fits-all approach; it can and should be as unique as the business that embraces it.

Realize the Need for Redirection

Wineries are often asked to donate bottles or cases of wine for local fundraising events. Niner Wine Estates in Paso Robles, Calif. used to participate in these often. While making donations of this sort did align with certain elements of the business, Andrew Niner, now president of the SIP Certified ® sustainable estate, felt like there were more impactful ways the business could give back.

“When you operate a business in a small town, it is important to reinvest in the community that supports you,” said Niner.

“These wine donations felt a bit misdirected; it didn’t feel like we were having a real impact. So, we decided to cut back on these and redirect our efforts to supporting one to three local charities each year. Now, we have more of an active role and are meaningfully involved in our community, and we see the impact."

Niner Wine Estates supports the Juan Nevarez Memorial Scholarship, a local program helping the children of California’s vineyard and winery industry achieve their dreams of higher education through financial and support services.

Focus Locally

Local investments directly improve the quality of life for people in the community. They also give businesses the opportunity to build relationships with other organizations and make connections with individuals that share their values.

Niner Wine Estates is a supporter of MUST! Charities, a nonprofit organization also based in Paso Robles. This organization identifies critical community needs and vets local non-profit organizations that specifically serve those needs. MUST! Charities then invests funds and strategic planning into the non-profit to strengthen their focus and impact.

Niner also supports a local program that hones in on uplifting the people of the wine industry: the Juan Nevarez Memorial Scholarship. This program helps the children of California’s vineyard and winery industry achieve their dreams of higher education through financial and support services. 100% of every donation goes directly to the recipients, and Niner has been helping these deserving students since 2017.

Bring in the Team

But customers aren’t the only people who are interested in these insights. Jobseekers in Millennial and Generation Z age groups consider a company’s environmental and social contributions when they are on the hunt. What they crave is alignment with their own values.

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Niner’s philosophy around charitable investments emphasizes the importance of transparency. When asked if the business shares their investments with customers, he said it’s something he always makes a point to do.

“If they are buying your product, they should know what you support.” Once a year, the company shares a Philanthropy Report outlining how much and where they invested.

In addition to the annual newsletter, the winery also spreads charity awareness through their wine club communications.

Niner believes these communications help raise awareness of meaningful causes within the community.

Contact Jacqueline Castillo @ 510-282-8852 for more information

June / July 2024 www.grapeandwinemag.com

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Nearly 9 out of 10 Millennial and Gen services are equally impactful. Plus, Z professionals are open to changing these pursuits offer individuals handsjobs if they found a company whose on experience in positively influencing values closely aligned with their own. members of their community.

These individuals “prioritize a sense of purpose and meaningful connections The El Camino Homeless Organization to the company’s values as these factors (ECHO) provides essential services for contribute significantly to job satisfaction and commitment,” (LinkedIn 2023).

Once hired, employees who feel an alignment with their company’s mission, vision and values are far more likely to recommend their employer as a great place to work and say their work gives them a feeling of personal accomplishment (Qualtrics 2022). This highlights an opportunity for business leaders to engage their staff in the company’s philanthropic endeavors.

Niner inspires and encourages his staff to get involved. Employees are given the opportunity to allocate $2,000 each year to any charity of their choice. Niner said as well as giving staff ownership and a meaningful stake in the community, these staff-directed donations show him what his staff are passionate about and help to raise his own awareness of deserving charities.

While charitable funds make a considerable impact, monetary gifts are not the only way for a business to invest in the community. Volunteering time and

On top of uplifting ‘communities,

meaningful philanthropic strategies can improve company culture and cultivate consumer trust.

’

community members in need, including showers, laundry and clean clothes, and meals. Every month, staff members of Niner Wine Estates volunteer through this organization to prepare and serve meals. Niner said that it’s a great team-building activity that’s good for the company culture. He appreciates the team can have a direct and impactful experience giving back.

Niner compared their philanthropy strategy to an investment strategy. “If you invest in a ton of different things, you can lose track of exactly where your money is going and what it’s doing. But if you invest in just a couple of things, you can have more of an active role in your investments and really know your impact.”

Giving back is good for business. On top of uplifting communities, meaningful philanthropic strategies can improve company culture and cultivate consumer trust. The efforts Niner Wine Estates makes to enhance transparency about their philanthropy help their customers know when they enjoy a bottle of wine or visit the estate for a tasting, meal or event, they are supporting all the good work this business does in its community.

Consumers’ needs and interests are constantly evolving. So are those of a business. Sustainably run businesses know to stay relevant and successful, they must be aware of opportunities to adapt. The next Sustainable Story shares how an estate vineyard and winery in Arroyo Grande, Calif. ensures its staff continually improve their skills and expand their knowledge.

Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

Volunteering time and services are equally impactful as monetary charity. Niner Wine Estates employees volunteer with the El Camino Homeless Organization every month to prepare and serve meals.

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June / July 2024

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ADVERTORIAL

Transforming Soil Health A Four-Year Success Story with Cation-EX5 PLUS

By Dr. Muhammad Ismail Siddiqui | Director R&D and Product Innovations

Soil sodicity and salinity– a big problem! Here is an efficient and sustainable solution!

Saline sodic soils are an ever- cipitation events to facilitate its disincreasing problem in agriculture. solution and movement into the soil The presence of high concentra- profile, which can be unpredictable tions of Na+, Cl-, Mg2+, and SO42- and dependent on regional climate ions in soil solution inhibits growth patterns. Moreover, the logistical of many plants (Munns 2002, 2005). requirements associated with This high sodium and salinity levels broadcast applications of gypsum, in agricultural soils pose significant such as the need for large quantichallenges for growers worldwide, ties of material, machinery for negatively impacting crop productiv- spreading, and labor costs, can furity and soil health. High salinity is ther add to the challenges and exassociated with low soil water po- penses involved in its use. tential and specific ions, especially Na+ and Cl-, are potentially toxic at In modern agriculture, where effihigher concentrations. The toxic ciency and cost-effectiveness are effect of Na+ far exceeds that of Cl- paramount, alternative soil amend(Tester & Davenport 2003). High ment strategies MUST be considsodium levels can damage soil ered to address soil sodicity and structure, leading to soil surface salinity more effectively. These alcrusting. This crust impedes soil ternatives could include the use of water movement and aeration, more solution calcium sources, thereby restricting root growth and such as AgroPlantae’s Cation-EX5 limiting overall plant production and PLUS which can provide quicker efficiency (Priyanka Gangwar et al., and more readily available calcium 2020). and other important ingredients without the same logistical conPistachio cultivation in central straints as gypsum. Unlike traditionCalifornia faces these challenges, al gypsum, Cation-EX5 PLUS is impacting crop growth, yield, and injected directly into the drip syssoil health. The central San Joaquin tem, reaching the root zone swiftly Valley, specifically, is an area where and directly. Direct injection enables evaporation exceeds precipitation rapid and efficient infiltration into the (Marino et al., 2019). Traditional soil profile, ensuring the timely and gypsum applications have been a more uniform distribution of calcium go-to solution for mitigating these ions. issues. While gypsum can be an effective amendment for reclaiming In this article, we explore the resalty soils, gypsum's low solubility sults of our research comparing the and slow action can limit its efficien- performance of Cation-EX5 PLUS cy, especially in modern agricultural with traditional gypsum applications settings where quick and effective in managing sodium and salinity solutions are often needed. levels in pistachio orchards located in saline and sodic soils in central Additionally, the effectiveness of San Joaquin Valley, California. gypsum application relies on pre-

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June / July 2024

Fig.1 Significant reduction of 38% in sodium levels in Cation-EX5 PLUS treated areas compared to the grower standard.

Fig. 2 Significant reduction of 55.2% in SAR levels in the Cation-EX5 PLUS treated areas compared to the grower standard.

In the heart of agricultural innova- The impact doesn't stop there! In 428lbs/ac of yield per acre, underlines tion, AgroPlantae's groundbreaking parallel with these remarkable soil im- the unparalleled potential of AgroPlansolution calcium source, Cation-EX5 provements, our field trials have also tae’s Cation-EX5 PLUS. PLUS, has sparked a revolution in soil demonstrated substantial enhancehealth management. With four years of ments in pistachio yields.

These tangible differences in yield field trials yielding remarkable results, not only translate to increased profitaour commitment to excellence has nev- Take, for example, the astounding bility for growers but also speaks voler been clearer. Over this transforma- ~13% increase in dry yield achieved umes about the transformative power of tive period, AgroPlantae’s soluble cal- with Cation-EX5 PLUS, equating to a AgroPlantae’s product and to the encium solution has significantly reduced remarkable 129lbs/ac more than the during impact of our soluble calcium sodium levels by an impressive 38% grower standard. solution on soil health, crop productiviand SAR by 52% and salinity within the ty, and grower success. crucial first foot of the soil profile. This But wait, there’s more! In the final groundbreaking achievement not only year of our study, the momentum only speaks to the efficacy of our product accelerated, with yields soaring by an but also establishes a new era in sus- astonishing 42%. This remarkable improvement, amounting to an additional tainable soil management practices.

Fig. 3 Cation-EX5 PLUS 2021 yielded 13% more dry yield (lbs/ac) compared to the grower standard.

Fig. 4 Cation-EX5 PLUS 2023 yielded 42% more dry yield (lbs/ac) compared to the grower standard.

Fig. 5 Consistent lower EC level in Cation-EX5 PLUS treated areas compared to the grower standard.

As we reflect on these four years of innovation and success, one thing becomes abundantly clear: AgroPlantae's Cation-EX5 PLUS isn't just a product; it's a catalyst for change. With its proven ability to enhance soil health, combat salinity, and boost crop yields, our calcium solution is paving the way for a brighter and more sustainable future for agriculture.

Visit AGROPLANTAE.COM or give us a call (559) 498Ͳ0388 to learn more!

June / July 2024 www.grapeandwinemag.com

19

Using

Artificial Intelligence

to Predict a Wine’s Success

By STEVE PASTIS | Contributing Writer

“Tastry doesn’t tell you how to make wine; it just gives you various options, saves you huge amounts of time, and, at the end of the day, you pick the wine you want to sell.” ‒ Cameron Hughes, de Négoce Katerina Axelsson, founder and CEO of Tastry, which uses artificial intelligence to predict which wines an individual is going to like before they try them, sometimes even before they become aware of them (all photos courtesy of K. Axelsson.)

W

ineries are starting to use artificial intelligence (AI) to predict which wines an individual is going to like before they try them, sometimes even before they become aware of them.

“We can predict the Vivino (Wine Rating System) score with 93% accuracy just by looking at the chemistry of the wine,” said Katerina Axelsson, founder and 20

Grape & Wine Magazine

CEO of Tastry, which uses technology that compares information about a wine’s chemistry with a database of 248 million consumer palates. “We've been in the industry for several cycles, so winemakers and wineries can see what they submitted to us is what actually happened.

sumers that are going to be loyal, repeat customers,” she said. “We have this belief that every wine is a Screaming Eagle for someone out there. Your wine has a market for it; the challenge is how do you get to those consumers without wasting all your marketing money?”

“One of the biggest reasons, especially going into this year, that a winery should use Tastry is to find the con-

“Using [this] technology, I can understand instantly the market size for a particular wine and also the best way to

June / July 2024

Helping Smaller Wineries

Tastry helps provide solutions to the challenges faced by smaller wineries.

“We found that small- and medium-sized producers struggled to be seen among the corporate giants who dominate distribution and digital channels,” states the company website. “This led to the creation of an in-winery experience that powers virtual tasting of the complete line of that producer’s product.”

Tastry can predict the Vivino (Wine Rating System) score with 93% accuracy just by looking at the chemistry of a wine.

optimize a wine based on its intended audience, be it retailer or consumer,” said Cameron Hughes, founder of de Négoce, which sources and sells thou-

sands of premium wines directly to consumers. “Katerina Axelsson basically taught a computer to taste wine.”

Axelsson said when AI is properly applied, the return on a winery’s investment is $44 to $215 for every dollar it spends using the technology.

She described Tastry as “a vertically integrated product.”

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June / July 2024 www.grapeandwinemag.com

21

When AI for predicting a wine's success is properly applied, the return on a winery’s investment is $44 to $215 for every dollar it spends using the technology.

“We have been referred to as the matchmaker in the industry,” she said. “We connect retailers and wineries, we connect wineries and consumers, we connect retailers to consumers, and now we're connecting distributors to wineries and retailers.

“We touch the entire supply chain, and we're only a team of 30 people,” she continued. “Shifting the paradigm of any industry is an ordeal in and of itself, so we figured we needed to have discipline and focus on doing one thing really well.”

There have been serious temptations to get Tastry to stray from that goal. Major corporations such as Pepsi, British American Tobacco and Nestlé have all inquired about using Tastry in their industries, according to Axelsson.

“We've had to be very disciplined and say, ‘No, we're really focused on the wine industry right now,’” she said.

Tastry currently has limited, if any competition, according to Axelsson.

“I wouldn't say I have any direct competitors,” she said. “If we have any competitors at all, it would be like an adjacent competitor that’s pursuing the attention of a consumer, but when it comes to the technology, I haven't found a better answer than we really are the first company to do something like this, whether you look at the technology or the business model.”

Origins

Axelsson attended California Polytechnic State University, San Luis Obispo where she studied chemistry and winemaking, graduating with a B.S. degree in chemistry.

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June / July 2024

“We have this belief that every wine is a Screaming Eagle for someone out there.

Your wine has a market for it; the challenge is how do you get to those consumers without wasting all your marketing money?” ‒ Katerina Axelsson, Tastry

“I paid my way through college by working in the wine industry,” she said, estimating there are about 400 wineries in a 40mile radius around the university. She did various jobs for some of those wineries before ending up working in a winery lab.

“I was young and ambitious, and curious,” she said. “I started to notice idiosyncrasies and pain points in the wine industry. The biggest thing I noticed was wineries were investing a lot of years, and in some cases millions of dollars, in making a wine for consumers. It's kind of a shot in the dark; you're dealing with nature and you can manipulate the outcome of the chemistry to an extent, but it's a very reactive process, and what your preferences are or what your vision for the final product is doesn't always correspond to whether the consumer likes it.”

Axelsson described the winemaking process as “very intuitive price point, allowing winemakers to optimize their wines for and not data-driven.” She noted there was an 85% failure rate their audience in a way never achievable before,” said Hughes. when launching any kind of wine.

“Tastry doesn’t tell you how to make wine; it just gives you various options, saves you huge amounts of time, and, at the “The reason for that failure rate, I learned, is because you end of the day, you pick the wine you want to sell.” can sell someone almost anything once,” she said. “You can pick up a bottle of wine because it has a nice label or it looks “It might seem a little odd to use AI at first, but when they interesting, but if you don't like what's in the bottle, you're not see what it actually is and how it's applied, the fear of it begoing to buy it again, and the product is going to fail because ing ‘the Terminator’ or anything like that dissipates pretty it can't get repeat purchases.” quickly,” said Axelsson. “It's not what you imagine it is. It's just another tool in the toolbox, and it's just another paintAxelsson had “a hypothesis” that there was a way to underbrush for the artist. stand what consumers really like and what their flavor preferences really were.

“It's been an incredible tool for so many businesses,” she added. “We've saved entire productions, especially during smoke “If we were looking at the chemistry, we were looking at season, and I think we're going to be seeing a lot more of that chemistry as a quality control mechanism,” she explained. this year.”

“We weren't looking at how consumers perceive that chemistry.”

One winery saved $10 million worth of smoke-tainted fruit when Tastry’s AI technology provided a recipe within 24 Axelsson started Tastry based on the results of a two-year rehours, just before the fruit had to be dropped, she said. search project to determine if there was an analytical chemistry method that could break down the flavor matrix and For more information about Tastry, visit the company website relate it to the human palate. at https://tastry.com.

“It turns out there's a way to do that,” she said, adding that discovery resulted in Tastry eventually incorporating in 2016.

Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

“We just incorporated so we could get an SBA loan to get our own analytical equipment, and we could start running experiments,” said Axelsson. “At that point, it was just myself and a Ph.D. in mathematics, and one other person.

For two years since mid-2016, it was just a research project.

It wasn't until December 2021 that we launched an actual commercialized solution.

“When I started, I thought the challenge would be to build this revolutionary technology,” she said. “It took many years and millions of dollars, and the faith of a lot of people who might never get a return on their investment. I thought that would be the hard part.”

Instead, the biggest challenge Tastry faced was convincing winemakers to think about things differently and change the way they have been doing things their entire life, said Axelsson. “When it comes to AI, especially with a traditional industry like the wine industry, it's not a ‘you build it and they will come’ kind of thing. There was a lot of education that had to take place, a lot of relationships had to be built, and we had to establish trust in the industry.

“We have worked really hard to establish trust with the top wineries, and we have a lot of winemakers on our website that publicly share their endorsements or the case studies they have had with Tastry,” she added.

“Tastry can do in an hour what would take weeks to do, and give you options depending on your target audience and June / July 2024 www.grapeandwinemag.com

23

SMART MONEY MANAGEMENT

MAY HOLD THE KEY TO GRAPE GROWERS EARNING A PROFIT IN 2024

Jaquelyn Fernandes is a territory manager with Nutrien Financial and recommends now as a good time to evaluate a financial plan and make sure you are taking steps to positively impact profitability (photo courtesy Nutrien Financial.)

By JACQUELYN FERNANDES | Territory Manager, Nutrien Financial

Protecting your vineyard from market volatility and other uncertainties starts with your capital management strategy and surrounding yourself with people who can provide partnership and expertise to enable your success (photo by Rick de Jong, Agro-K.)

W

hen we think of profitability, it’s common to use a simple, black and white theory: Spend less on producing your crop than what you can sell it for. Developing a successful profitability equation is much more nuanced. Grape growers who take the time to develop a solid financial foundation and proactive plan give themselves an edge when it comes to overcoming the challenges of earning a profit.

Many variables can negatively impact profitability: labor costs, water access/ availability, changes in pest management strategy, etc. Your chances of success will increase if your financial position is stable and capable of adapting to variable conditions, whether caused by economic or environmental forces, or a combination of the two.

Grape growers can take steps to strengthen their financial position if they consider a few critical factors that will impact profitability this year.

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Grape & Wine Magazine

Where Can You Find Cost Savings?

Despite many costs creeping up, there are savings to be had if you look in the right places. As a starting point, it’s a good practice to review your interest expense and research different lending options that could have the potential to lower the overall cost of borrowing.

Over the last few years, growers have seen a much higher percentage of their profits eaten up by interest expenses due to rising interest rates. At least in the short term, interest rates will continue to be a big topic of concern for growers.

Despite more-active-than-expected inflation data, in May the Federal Reserve decided to maintain interest rates at their current levels for the sixth-straight meeting, keeping rates at a 23-year high as they wait for more reassuring signs of controlled inflation before considering a rate cut. You can’t control rates, but you can take advantage of promotional offers alongside traditional fixed-rate financing to avoid overpaying on interest

June / July 2024

expenses. In many cases, this approach will bring the total effective interest rate down to a level that, when consolidated, lands below Prime.

Take a hypothetical example where a grape grower finances an equal amount for three different input purchases over the same financing period. In addition to their own in-house financing offer, a retailer may have access to a variety of promotional rate offers on some brands.

For example, a financing package might look like: •

Product A at 9% APR

•

Product B at 2% APR

•

Product C at 4% APR

If this grower paid for these products with their operating line of credit, they would be looking at a financing rate ranging between 7% to 11% APR. If this same grower used the blended approach

and took advantage of the option to finance the purchase of all three products, they would bring their effective interest rate down to 5% APR, which adds up to meaningful savings on interest expense.

Proactive Cash Flow Considerations

It’s not enough to have the right mix of crop nutrition and protection products; you have to go a step further and think about how and when you’re paying for those products, and checking that strategy to make sure you are giving yourself the most flexibility when it comes to managing your money.

Grape growers also need to look closely at their cash flow to ensure profitability.

Those who evaluate the terms of their financing programs and line up payment due dates with the crop schedule will create more financial stability for their operation, which can pay dividends when you come up against the unexpected.

Say your crop is infested with bunch rot near harvest. You may not have cash on hand for a few more months until harvest proceeds are recorded, but if you take the time now, in early season, to diversify your capital and use financing programs strategically, you’ll be able to preserve cash from your operating line.

Imagine down the road, come harvest time when your financial picture is probably a little tighter, the relief you’ll feel knowing your operating line isn’t fully leveraged and you still have some flexibility. Consider how your needs may shift between now and harvest and look for ways that you can give yourself more options in terms of how and when to spend your capital.

ag industry is for growers to come up with a winning plan despite success being so dependent on variables beyond your control. It may leave you feeling powerless, but there are a few proven strategies you can implement to protect your operation, create some peace of mind for your financial security, and prepare to respond to whatever comes your way.

Start with your capital management strategy and surround yourself with people who can provide partnership and expertise to enable your success.

It may seem like a basic principle, but diversification is also critical to manage your risk. Especially when it comes to your finances, don’t underestimate the value of having a diverse stream of capital to pull from. This ensures you aren’t overextending yourself, and that you have more options when it comes to sourcing capital.

Having a sound financial plan is also a helpful practice to develop useful contingency plans and to avoid situations where you might take a financial hit because of something unexpected. Financing crop

inputs enables you to keep cash on-hand so your backup plan has maximum flexibility to respond to unforeseen expenses.

On the flip side, growers who use their operating note to pay for operational expenses may not have as much financial latitude. Something growers may lack if they use their operating note to pay for operational expenses.

Summer is a great time to develop or adjust your financial plan with an eye toward profitability. If you invest the time and energy in setting up a solid financial foundation for the year ahead, there’s no reason to believe 2024 won’t be your most successful year.

Jacquelyn Fernandes is a territory manager with Nutrien Financial. She provides financing expertise to growers throughout the western U.S. to increase their buying power and maximize every opportunity for success.

Learn more at NutrienFinancial.com.

Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

Protect Your Vineyards Against Market Volatility and Other Uncertainties

This year, like every other year, you are going to face challenges. Some may be driven by the market, others by Mother Nature and more still by things you probably haven’t considered. Most of these variables are beyond your control; no one has a crystal ball to show where the market will go, and it’s hard to predict how consumer preferences are going to shift and how that will impact variety selection and decisions to protect the health and vitality of your vineyard. The inherent challenge in the June / July 2024 www.grapeandwinemag.com

25

ADVERTORIAL

Unlock the Full Potential of Your Crops with DPG Potassium Plus™

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Grape & Wine Magazine

June / July 2024

the fertilizer disassociates, allowing the potassium to be absorbed by plants efficiently. This is what defines the high solubility of our product.

A

t Deerpoint Group, we understand that potassium is a vital nutrient for the growth of permanent crops, especially grape vines. Our unique product, DPG Potassium Plus™, featuring the highly soluble potassium formate, is a game-changer in agricultural nutrition.

Why Choose DPG Potassium Plus™?

Potassium formate sets DPG Potassium Plus™ apart from conventional potassium sources like potassium acetate, potassium thiosulfate, potassium chloride (muriated potash), and potassium sulfate. These common forms are less soluble and less readily available to plants. The formate anion of DPG Potassium Plus™ ensures that it dissolves more effectively in soil and water, making potassium immediately available for plant uptake.

The superior solubility of potassium formate is not just a claim—it's a proven fact supported by our published solubility graphs. These illustrate how DPG Potassium Plus™ outperforms other potassium sources in terms of solubility and plant availability.

The Anion Advantage

An essential aspect of DPG Potassium Plus™ is its anion component. All fertilizers comprise a positive cation paired with a negative anion. DPG Potassium Plus™ uses potassium formate, where the potassium cation (K+) pairs with a formate anion. When applied,

Moreover, unlike other potassium fertilizers that might include harmful anions like chloride or thiosulfate, DPG Potassium Plus™ is free from any negative effects associated with these components. Chloride, for example, can be toxic to plants, potentially leading to chloride toxicity especially under drought conditions where salts accumulate in the soil.

Carbon Contribution and Soil Health

DPG Potassium Plus™ doesn’t just stop at providing essential nutrients: it also can enhance soil health. The formate anion is a synthetic, carbon-based compound that contributes valuable carbon right at the root zone. Carbon is crucial for maintaining a healthy soil microbiome, including beneficial bacteria and fungi, which in turn supports robust plant growth.

The inclusion of carbon through DPG Potassium Plus™ helps improve the soil structure and fosters a more productive environment for microorganisms. In California’s challenging climates and soil conditions, the introduction of carbon is particularly beneficial, promoting better soil health and sustainability.

Economic and Environmental Benefits

Choosing DPG Potassium Plus™ is not only a wise decision for your crops but also for your wallet. Its high efficacy means you can use less product to achieve better results, reducing costs and minimizing environmental impact.

Furthermore, by avoiding the introduction of harmful anions into your soil, DPG Potassium Plus™ prevents the potential degradation of soil quality,

"...unlike other potassium fertilizers that might include harmful anions like chloride or thiosulfate, DPG Potassium Plus™ is free from any negative effects associated with these components." preserving your land's agricultural viability for the future.

Why Deerpoint Group?

At Deerpoint Group, we are dedicated to innovation in agricultural nutrition. We develop products that meet the specific needs of growers, focusing on efficacy, plant health, and environmental sustainability. DPG Potassium Plus™ represents our commitment to providing high-quality, effective solutions that support growers in maximizing their crop potential while caring for the earth.

Choose DPG Potassium Plus™ for your crops. It's not just a fertilizer; it's a comprehensive solution for better yield, better soil health, and a better future. For more information on how DPG Potassium Plus™ can transform your agricultural practices, visit our website or contact a Deerpoint Group representative today.

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June / July 2024 www.grapeandwinemag.com

27

TOP 5 TAKEAWAYS FROM THE 2024 SUSTAINABILITY SUMMIT

By PAM STRAYER | Contributing Writer

One takeaway from the Sustainability Summit was the use of vermiculture in vineyards to improve soil health. Here, KG Vineyards Co-Owner and Sustainability Director Madelyn Kolber’s son, Judah, holds worms from their soils (photo by P. Strayer.)

WHEN TO IRRIGATE? MAKE THE RIGHT DECISION AT THE RIGHT TIME

Britton Ag Consulting

S

everal hundred wine producers came together April 30 and May 1, 2024 for a broad-ranging, two-day conference in Lodi for the third Sustainability Summit sponsored by Wine Institute’s California Sustainable Winegrowing Alliance (CSWA). Day 1 was devoted to field trips showcasing on-farm practices at two California Green Medal-winning sites, who are part of Lodi Rules (a stricter set of practices than CSWA), while Day 2 presented a series of speakers and panels from major wine-growing regions, including New York, Washington, Oregon and California.

Experts shared their recommendations on how to cultivate resilience with consumers, government and nature.

1. Boost Wine Industry’s Appeal with Sustainable Practices

As wine sales decline and consumers drink less alcohol overall (across beer and spirits as well as wine), Robert P. Koch, Wine Institute’s president and CEO, told the audience wine is going on a new communications initiative to combat anti-alcohol trends and said showcasing the wine industry’s commitment to sustainability is a plus.

IRRIGATION SENSOR SALES IRRIGATION CONSULTING jimbritton1022@gmail.com

Jim Britton (559) 994-1221 28

Grape & Wine Magazine

June / July 2024

“It promotes positive public relations to help ensure a halo effect for wine,” he said. “By focusing on sustainable winegrowing and working together, we can build resiliency while adding to a compelling story to share with the world.”

KG Vineyards also uses sheep to fertilize and mow its vineyards (photo by P. Strayer.)

IMPROVE MARKETABILITY

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2. Tell Consumers Specifics About Your Wine and Sustainability Practices

Along the same lines, Liz Thach, MW, President, Wine Market Council, and former Sonoma State University professor of wine business, told wineries to let consumers know more about specific sustainability actions and recommended seven action items for wineries to take.

Steps include calling out farming practices on your labeling and packaging, creating a special tab on your website to showcase sustainability and providing specific statistics on your progress toward sustainability (i.e., "70% of energy is powered by wind.")

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Wine Market Council’s Liz Thach told wineries to let consumers know more about specific sustainability actions at this year’s Sustainability Summit hosted

by Wine Institute’s California Sustainable Winegrowing Alliance.

Offering sustainability tours at wineries can speak volumes to consumers about a brand (photo by Matouš Forman.)

diversity. Proactively communicating high-level nutritional information ("no added sugar, 120 calories per serving") helps, too, she said, as well as making at least one wine under 12% alcohol.

A final tip: Offer sustainability tours at your winery.

3. Encourage Biodiversity

LangeTwins Winery and Vineyards in Acampo, Calif. farms more than 7,000 acres of vines. Aaron Lange, head of vineyard operations, brought visitors to see the company’s biodiversity initiative, which includes restoring a four-acre area near their tasting room into a habitat of pollinators in a partnership with pollinator experts Xerces Society.

The winery has also installed two miles of hedgerows of native species (coyote bush, quail brush sage, milkweed, toyon, redbud and salvia) around vineyard perimeters to increase biodiversity.

They are also trying out the use of vermiculture to enhance soil health on a pilot project.

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Grape & Wine Magazine

Steven Ostoja, Ph.D., director of USDA’s California Climate Hub, warned climate warming will accelerate from an average of three heat events to 16 by mid-century and more than 29 a year by the end of the century, changing the way vines behave (slide courtesy S. Ostoja.)

4. Put Worms to Work to Improve Soil Health

KG Vineyards Co-Owner and Sustainability Director Madelyn Kolber and her son Judah demonstrated the value they get from worms in their soil as Judah delivered a prepared talk and then showed wriggling worms to visitors.

The worms improve soil health at low cost, they said.

June / July 2024

The team also uses sheep to fertilize and mow its vineyards. They farm 2,000 acres.

At another station at KG’s The Camp, Charlie Hamilton, viticulture and operations manager, explained the various soil types visitors could see in a soil pit showing blue soils deep down below clay layers.

5. Get Ready for More Frequent Heat Events and Increased Pest Pressures

Steven Ostoja, Ph.D., director of USDA’s California Climate Hub, warned climate warming will accelerate from an average of three heat events to 16 by mid-century and more than 29 a year by the end of the century.

USDA California Climate Hub: https:// www.climatehubs.usda.gov/hubs/california USDA Climate Adaptation Resources Workbook: https://www.climatehubs. usda.gov/hubs/california/topic/adaptation-resources-workbook-california-specialty-crops

Climate change effects by winegrape variety: https://link.springer.com/article/10.1007/s00484-024-02684-8 Comments about this article? We want to hear from you. Feel free to email us at article@jcsmarketinginc.com

The increased heat is also expected to bring in new invasive species and increase insects’ reproduction rates.

Both of those factors will change the way plants behave, Ostoja said.

“This is the single most frightening dynamic to me... We lost 129 million trees in the 2012-16 drought to a bark beetle that was not even on the radar,” he said.

Even more worrying, Ostoja mentioned research by UC Merced’s Tapan Pathak, associate professor and a specialist in climate adaptation in agriculture, shows climate warming effects will turbocharge insect reproduction rates and invasions.

Ostoja suggested mitigating heat by planting trees in vineyards and irrigating in advance of heat events.

More research from Ostoja’s group is available on the USDA Climate hub website and in the USDA climate adaptation resources workbook on California specialty crops.

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He also cited a new April 2024 paper, A variety-specific analysis of climate change effects on California winegrapes, authored by the USDA California Climate Hub and partners, with additional information and insights.

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31

NGRA Partners with USDA-ARS to Launch New Grape Research

By DONNELL BROWN | President, National Grape Research Alliance

H

ave you ever wondered how research gets started? Or how researchers know which issues to tackle that will make the biggest difference to industry? One way is through direct engagement with industry stakeholders.

One of the most effective ways the National Grape Research Alliance (NGRA) advances the research needs of the grape and wine industry is through our close working relationship with USDA-ARS. ARS is USDA’s in-house scientific agency. It employs about 2,000 scientists in research units across the nation. Of its $1.7 billion budget (FY23), ARS commits roughly $25 million to grape research, often with input from NGRA stakeholders.

NGRA is a nonprofit membership organization that seeks to catalyze research that benefits all sectors and regions of 32

Grape & Wine Magazine

the American grape and wine industry, spanning wine, table grapes, juice and raisins nationwide. We connect industry, academic scientists and state and federal research agencies (like ARS) to initiate novel research projects and programs to solve industry challenges.

Since our founding in 2005, we’ve been instrumental in securing $65 million in funding for scientific solutions to grape and wine industry issues.

To ARS, NGRA serves as a unified industry voice to help guide the effective application of its scientific resources in support of grape research. Since 2005, NGRA and ARS have co-produced a Grape Industry Workshop every two to five years, in alignment with the five-year cycle for the agency’s research programs. And our last one, held last fall, was our most impactful yet. It went beyond the usual conference proceedings to actually launch new research.

June / July 2024

On Nov. 7-8, 2023, at the USDA’s National Agricultural Library in Beltsville, Md., 30 members of NGRA, representing all grape sectors and regions of the U.S., gathered

NGRA Research Chair and Gallo VP of Winemaking Research Nick Dokoozlian addresses attendees at the ARS Grape Industry Workshop (photo by Tim Rinehart.)

ARS National Program Leader for Specialty Crops Tim Rinehart and National Grape Research Alliance President Donnell Brown. One of the most effective ways the National Grape Research Alliance advances the research needs of the grape and wine industry is through its close working relationship with USDA-ARS (photo by Jessica Youngblood.)

with 50 ARS scientists (many among ARS’ most decorated) and senior leaders, including Administrator Simon Liu and Under Secretary for Research, Education and Economics Chavonda Jacobs-Young, who is also USDA’s chief scientist. Representatives from other federal research funding agencies, including the National Science Foundation and Foundation for Food and Agriculture Research, attended, too.

On the first of a two-day agenda, NGRA Research Chair Nick Dokoozlian presented NGRA’s research themes and priorities, which were updated earlier in 2023. Then ARS scientists presented their research programs, arranged in sessions based on NGRA’s research theme areas: genetics and grapevine improvement, integrated production systems, natural resources and environment, plus several emerging industry hot topics like spotted lanternfly. While most of the talks centered on viticulture, some provided insights from other agricultural sciences, such as corn genetics, tomato breeding, climate and soil science, AI and pheromone-based detection methods for the commercial table egg industry, that could hold some relevance to grape-related issues.

In the months since the ARS Workshop, all three project teams have met continuously to refine the research. In addition to helping to target the projects to relevant grant programs for funding, we’ve been working to develop laser-focused objectives and deliverables, identify and invite scientific collaborators including from other land-grant universities and other research institutions across the country, and build in robust extension activities to ensure the results reach industry stakeholders. Our goal is to have each project polished to grant-application perfection by the end of 2024 (assuming the right funding opportunities fit that timeline).

We’re proud of our close association with USDA-ARS and thankful for their continued engagement in our joint Grape Industry Workshop. The relationship-building and research exchange achieved there are always invaluable. But this year, with the launch of new, needed research coming as a tangible result, it was a workshop to remember. It was an exciting two days, and we (and grape and wine industry at large) will be reaping the rewards for years to come.

Donnell Brown has served as President of the National Grape Research Alliance since 2017. Learn more about NGRA at graperesearch.org.

Comments about this article? We want to hear from you.

Feel free to email us at article@jcsmarketinginc.com

A brainstorming exercise on Day Two broke attendees into breakout groups to identify, based on the Day One download, priority research that ARS could lead or support. By day’s end, the three most compelling project concepts were selected to receive NGRA Research Fund planning grants.

These funds will enable project participants, including scientific collaborators and industry advisors, to hold an in-person planning meeting to hone concepts into highly relevant, outcomes-focused research project proposals. The winning project concepts and their related NGRA research theme areas were: •

Natural Resources and Environment Climate Change Mitigation & Adaptation: A Predictive Analysis for the Grape and Wine Industry

•

Integrated Production Systems Mealybug Detection and Mating Disruption 2.0

•

Genetics and Grapevine Improvement The Genetics of Production Efficiency June / July 2024 www.grapeandwinemag.com

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NEW DRIED-ON-VINE RAISIN VARIETY A SOLUTION TO LABOR COSTS

By CECILIA PARSONS | Associate Editor

“It really depends on the grower and the growing season,” Hooper said of the decision to cut or not cut canes. “The goal is to not have to cut the canes, but it can be done earlier to get the fruit harvested.”

If the growing season has been cool, cutting the canes can help speed up harvest.

Hooper said some growers may choose to cut canes on part of their acreage to spread out harvest.

One of the solutions to cutting labor costs was a dried-on-vine (DOV) Labor Saving for Growers grape variety, a variety Three different California growers have bred to reach a sugar planted 15 acres of the IFG Rais-one level point, or brix, so variety with the first of five acres of it naturally dries on commercial fruit coming to market in the vine. The first vari- 2024. All 15 acres will be in production ety, Selma Pete, was in- for 2025. troduced in 2002. This USDA-ARS variety was Fowler-area raisin grape grower Steven selected for its early Cardoza is enthusiastic about his IFG maturity at 14 to 21 Rais-one vines and has about 10 acres days before Thompson being grown organically. Two small Seedless. Selma Pete, a blocks have already produced raisin white, seedless variety, crops, but he is looking forward to this checked all the boxes year’s production from vines that were for growers, but proplanted in June 2022. cessors who built their business around color, The choice to plant a DOV variety was flavor and texture of easy, Cardoza said.

Thompson Seedless Labor-intensive hand harvest and pruning accounts for most were not convinced it “The self-drying trait and earlier maof the cost of growing raisin grapes. One of the solutions to could replace Thompturity are huge. These will fill an early cutting labor costs is a dried-on-vine (DOV) grape variety, a son Seedless qualities. harvest slot before we move into latvariety bred to reach a sugar level point, or brix, so it naturally er-maturing varieties. Plus, there is less dries on the vine (photo courtesy International Fruit Genetics.)

While Selma Pete was concern with rain.” a promising DOV alifornia’s raisin grape industry raisin grape variety at the time, Dustin Watching the vines grow and comparing has for many years depended on the Hooper, the commercial manager for them with other raisin grape varieties, versatile Thompson Seedless variety raisins at International Fruit Genetics Cardoza said there are no significant for most of their production. Experienc(IFG) which was purchased last year differences in nutrition demands or ing a tough marketplace 22 years ago, rai- by Bloom Fresh Global, said the raisin water use. The canopies are not large on sin grape growers began to look at ways industry still needed more DOV options this variety, he said, but the vines are to pare down production costs, acknowlfor growers. By planting a DOV raisin very fruitful. edging labor-intensive hand harvest and grape, he said, growers can potentially pruning accounted for most of the cost of cut down on labor-intensive cane cutCardoza said his goal with DOV raisin growing raisin grapes. ting and hand harvest. grapes is to completely mechanize harvest and pruning to save on labor costs.

The raisin industry was built around This year will mark the first commercial Thompson Seedless grapes, which delivharvest for Rais-one, IFG’s DOV raisin “No cutting canes with this variety is ered the flavor, color and texture desired grape variety developed to meet the flahuge. We can just shake them into a bin, by processors. However, labor costs invor profile sought by processors and give and they are marketed as ‘sun dried.’” volved in cutting and placing the grapes raisin growers more options for harvest. on paper trays on the ground, rolling In the original breeding block for IFG He explained because IFG Rais-one has then and picking them up have only Rais-one, canes have not needed cutting a fruitful basal bud, mechanical prunincreased. Thompson vines also require for the fruit to dry. The grapes can dry on ing can be done. With spur pruning, no hand pruning. the vine naturally, or the canes can be cut tying is needed, he added. for an earlier harvest.

C

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June / July 2024

Cardoza said significantly reducing the need for hand labor in the vineyard is a huge cost save for raisin growers.

His IFG Rais-one vines were at 90% bloom on May 8, earlier than his other raisin grape varieties. This will allow him to get the raisins out of the vineyard earlier and move up the time schedule for other vineyard off-season work.

There are some challenges involved with developing new raisin grape varieties, Hooper said.

It is not easy to select genetic material, make decisions on crosses, then select the most promising crosses for trials. Trials show if the crosses will provide what growers and processors need for their customers. Hooper said this process can take five to seven years. Before trials can even take place, he added, potential growers must be convinced to plant and grow a new variety. Even if all goes right with growers over the time of the trial, Hooper said, processors can be critical of new varieties regarding flavor profile, look, texture and how the fruit keeps in storage over time.

It’s best to rip out the old vines, rip the ground and fumigate before planting new varieties. Trellis changes will also be necessary to accommodate mechanization.

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Fowler-area raisin grower Steven Cardoza looks at the crop set on his IFG Rais-one vines (photo by C. Parsons.)

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Another DOV variety, Sunpreme, released just 10 years ago, was found to have a “muscat flavor” at maturity. On the harvest side, he said the bunches shattered easily, losing part of the harvest.

There are two other patented varieties in the Bloom Fresh Global program besides IFG Rais-one: Sheegene 27 and Sheegene 28. Another variety is in the patenting process.

He said IFG Rais-one harvests up to now are testing favorably with processors, and indications are that it has the taste and storage ability found in Thompson Seedless.

Hooper said grafting a new variety on existing rootstocks is not recommended.

Most of the Thompson Seedless vineyards are older and won’t produce the quantity needed to be profitable if a new variety is grafted onto the rootstocks.

There is also a major risk that old vines contain viruses which will have a negative impact on any variety grafted on it.

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