~SUMMER 2007~

Building the Sonoma County Brand By Nick Frey

Creating the Commission is much like planting a . You invest a lot of time and money to establish a quality site and then you wait three years for it to bear fruit. Marketing programs In This Issue.... are similar. Few programs generate instant success, but thoughtfully created and well executed over time, they bear great fruit. President’s Report ...... 1

PREPARING THE SOIL AND PLANTING THE VINES. Trademarking ...... 3 Sonoma County grapes and are consumer products. The way we differentiate our grapes and wines from those in other regions is to create a Up Close ...... 4 “brand image” that consumers recognize, trust and value. Think of a region somewhere in the world and what images come to mind? What are those images for Industry Perspectives ...... 8 Sonoma County that make it unique? The Commission Marketing Committee has spent time with the help of Murray Brand Communications defining Sonoma County relative to other wine regions. What makes us unique and what can we claim that no Marketing Update ...... 10 other region can mimic? Our American Areas (AVAs) make us unique, but how do we convey that uniqueness concisely? This work is like preparing the soil for Market Conditions ...... 13 planting. It must be done well or the vineyard will never produce quality fruit.

CARING FOR THE VINES UNTIL THEY BEAR FRUIT. Commission Brand building requires unique positioning relative to competing wine regions, followed by consistent and frequent use of the brand and the messages that define the Town Hall brand. Like a newly planted vine, the brand will grow as we anticipate the first Meetings in the coming years. Murray Brand Communications recommended that Sonoma County be the endorsing brand that is used broadly by the Commission, vintners, July 24: Paradise Ridge in Sonoma County Tourism Bureau, grower and vintner regional groups, and others who Santa Rosa promote Sonoma County in some way. An example of an endorsing brand is Kraft® July 25: The Lodge in Sonoma which is on the package of food products produced by Kraft. It is not Velveeta®; it is July 26: Clos du Bois Hospitality Center Kraft Velveeta or Kraft Miracle Whip®. The goal is to have the marketing efforts of all in Geyserville Sonoma County groups reinforce each other, and never create competition within the county or confusion with the consumer. If we all unite around this strategy, we should All meetings begin at 6:30 pm maximize the return on our marketing dollars. The endorsing brand concept is the basis for the Sonoma County Wine Stars Hear updates on the marketing program. This program is designed to recognize those and restaurants that have programs and have a dialog on made commitments to help build the Sonoma County brand. Sonoma County Star Commission activities. Wineries include Sonoma County on their wine labels along with the American Viticultural Area (AVA) and any vineyard designation. This insures that consumers recognize the wine in the bottle is from a wine region within Sonoma County. We feel this will build consumer recognition for both Sonoma County and the AVA. Seventeen Sonoma County Star Wineries were recognized at the May BBQ, and we hope to add to that list every year. If over 95 percent of a winery’s bottle sales include Sonoma County on the label, it is a Star Winery. Continued on page 2 PAGE 2 SUMMER 2007 SCWC NEWSLETTER

Continued from page 1 Sonoma County Star Restaurants have committed to offering our visitors a Sonoma County food and wine experience by dedicating over 50 percent of their wine lists to wines produced from Sonoma County grapes. Most also serve locally produced foods from the Vine News: numerous artisan producers here. Twenty-seven Sonoma County Star Restaurants were The Voice of the Sonoma recognized, 14 of which were given Four Star recognition for committing over 75 percent of County Winegrape their wine lists to wines produced from Sonoma County grapes. All of these Sonoma County Commission Wine Stars are helping us build the Sonoma County brand. Thank them with your business! A list of Sonoma County Wine Stars can be found at www.sonomawinegrape.org. (see Press Democrat, “Eateries See Stars,” Business Section, June 7, 2007). Commissioners: The Commission has just conducted market research to benchmark consumer John Balletto recognition and perception of our county and its AVAs. Duff Bevill The Commission will be hosting grower meetings at 6:30 p.m. on July 24 at Joe Dutton Paradise Ridge Winery, July 25 at The Lodge in Sonoma, and July 26 at Clos du Bois’ Steve Hill hospitality center to report the results and share more information about Commission Mark Houser activities. We hope you will attend, and we will appreciate your feedback. Richard Mounts Jim Murphy Mark Pasternak PLANNING THE HARVEST Steve Sangiacomo Marketing to our winery customers in order to increase demand for Sonoma County Rhonda Smith grapes is a priority. This will include grower education assistance in using the tools that will Richard Rued be on the web, and advertising in trade magazines. We will also be looking for new approaches for growers and grape buyers to interface so that your Sonoma County story is Alternates: heard. Your suggestions for how to do this will be appreciated. We do not feel the annual Kevin Barr BBQ and Tradeshow provide the kinds of grower and winery interactions we need. Tim Carl We continue to promote the Code of Sustainable Winegrowing and provide targeted Becky Jenkins education for growers and vineyard employees as we strive to continually improve our grape Douglas Lumgair quality and profitability while implementing environmentally sound and socially responsible Vicki Michalczyk practices. A grower self-assessment workshop will be held July 18 from 9:00 a.m. – 12:00 Bill Munselle p.m. at Redwood Credit Union, 3033 Cleveland Ave. in Santa Rosa. Reserve your place at Mike Rowan [email protected] or fax 707-522-5866. Allan Nelson We will also be marketing to consumers, but that will not mean a national advertising Wells Wagner campaign. Our marketing budget has grown, but it is still too small to sustain a national advertising campaign for Sonoma County wines that will lead to more demand for our grapes. Instead, we will use our website and will work with wine writers and other media to President: tell our stories about Sonoma County, its grape production and its growers. Nick Frey You play a vital role in producing the wines consumers enjoy and buy with confidence. 707-522-5861 The fall Grape Camp September 24-26 and the Sonoma County Harvest Celebration in New York City on October 3 – 5 are newsworthy events that will help tell our story. We are Vice President Marketing partnering with Sonoma County Vintners and the Sonoma County Tourism Bureau on these & Communications: events, and we hope to increase the cooperative efforts in the coming year. We are also Larry Levine cooperating with AVA groups, providing matching funds for marketing programs that 707-522-5863 reinforce the Sonoma County messages while building their AVA brands.

Grower Outreach: HARVESTING Francine and Mike Baldus Never before has there been such a concerted effort to cooperate in marketing Sonoma 707-829-3963 County, its AVAs, our grapes and wines, and those Sonoma County wine and food experiences that make customers for life. Our goal is for every marketing dollar spent by any Sustainable Practices Coordinator: group in Sonoma County to reinforce the Sonoma County brand while building their Judy Tuhtan,707-522-5862 individual brands. We feel developing Sonoma County as an endorsing brand which others use as part of their individual marketing efforts will allow us to achieve our mutual and individual goals. In doing so, we will increase the value of Sonoma County winegrapes for www.sonomawinegrape.org our growers and their winery customers. And we will share our Sonoma County experience with consumers every time they enjoy a Sonoma County wine with friends and family. We wait for that harvest with great anticipation! SCWC NEWSLETTER SUMMER 2007 PAGE 3

The Trademarking of Vineyard Names Reported by Larry Levine

At the recent Smart Marketer Workshop Two important considerations: sponsored by SCWC, Jay Behmke, a partner 1. Family surnames cannot be registered (by themselves) at Carle, Mackie, Power & Ross, LLP, without special circumstances. In order to register a discussed the trademarking of vineyard family surname, you have to prove that you have names. Here is a summary of his talk. been using it exclusively to sell wine for at least five years. Therefore, there Why trademark a vineyard name? is some risk in using a family name, as Real property can appreciate you cannot have clear ownership of the with the real estate market, but will name for some time. rarely appreciate faster. But a vineyard 2. Geographic names cannot be registered as name that achieves consumer recognition trademarks. No one can have exclusive use of a can potentially add great additional value to the geographic name. These names will never be uniquely vineyard. All vineyards have names, but few become yours, and your investment in your brand will be diluted if trademarks. By registering a trademark for your vineyard name, other wineries also incorporate the same geographic name and managing the trademark properly, you can create this in their brand name. additional value for yourself. The investment is relatively small, and the pay-off can be huge. How to register for a trademark: The registration process takes about a year and costs approxi- What is a trademark? mately $500 (not including the cost of the search). You can learn A trademark is defined as “a symbol or device used by a to file a trademark application online at the USPTO, but there are business to distinguish its goods or services from those of others.” lots of technical rules, and it is easy for newcomers to make A trademark for a vineyard designation is really a trademark for mistakes without realizing it. Hiring a trademark attorney is a wine, not vineyards or grapes. Wine is part of a category of related good investment. goods that included beer, spirits, soft drinks, juices, bottled water and other non-dairy beverages. In order to have rights to a How to use the Trademark: trademark, you have to actually use it. Trademark rights If you trademark the name of your vineyard for wine, then originate in actual use, and the first user is always going to have when a winery wishes to feature a vineyard designation on their superior rights. label, technically, the winery is licensing your trademark. This relationship is poorly understood in the industry, and is typically How to choose a trademark: the subject of an oral agreement between the winery and the First consider the image you want for your vineyard and the grower. However, if you doesn’t properly license their trademark to feeling you want to convey. Then research any confusingly similar the winery, then you could lose your trademark rights. names being used on any related goods and search all related categories. In order to avoid future trouble, your trademark should A proper license includes these elements: be unique – not confusingly similar to any other trademark already A grant of specific rights: for example, the winery can only use registered or already in use. Your current name for your vineyard the name for wines made from grapes from a particular vineyard. A may not qualify, so don’t be disappointed if you have to choose grant of exclusivity: a winery can have an exclusive right to the another name. Searching for a unique name is the best investment name, exclusive for a period of years, or non-exclusive. The first you can make. winery to use the vineyard designation might be offered exclusive To research a name, start with the United States Patent and use for a certain period as an incentive to invest in the vineyard Trademark Office website www.uspto.gov/main/trademarks.htm) designate as part of the winery’s branding efforts. (registered trademarks, pending applications and abandoned names) Continued on page 12 and the Alcohol and Tobacco Tax and Trade Bureau (TTB) certificate of label approval database www.ttbonline.gov/colasonline/publicSearchColasBasic.do). The TTB database can show you names that are in use for wine, beer and spirits, but have not been registered yet. Other tools include Goggle, Yahoo, etc. You can also retain a trademark search firm to assist you. You would be best served by hiring a professional trademark lawyer at some point in the process to interpret the results of your search. PAGE 4 SUMMER 2007 SCWC NEWSLETTER

Up-Close

JIM MURPHY Owner/Partner • Murphy Vineyards LLC By Larry Levine Born and raised in Berkeley, Jim Murphy moved to Sonoma What was it like in the early years working on the ranch? County at age 16. He graduated from Healdsburg High School and The early years were exciting times, turning prune orchards then was part of the first graduating class in Viticulture at Santa into vineyards. Rosa Junior College. Both during high school and while at Santa Rosa JC, Jim worked at Simi Winery with such noted winemakers How has farming changed over the years? as Selma Long and Maryann Graft. In 1979, he joined his family’s Grape growing has turned into a science. Everything is farming company in Alexander Valley, growing some Cabernet analyzed, from the dirt and plant tissue to the grape stakes. Sauvignon, and but mostly prunes, apples and We have so much more wonderful information on developing, pears. The Murphy family eventually transitioned to winegrapes and producing and maintaining vineyards than we did 40 years ago opened Murphy-Goode Winery with the Goode and Ready families when the first vineyards were planted with trellis systems in in 1985. In June 2006, Jackson Family Wines purchased Sonoma County. It was a way for families to make a living – Murphy-Goode. Jim is still involved in running 300 acres of now it’s viewed as a life of luxury. We are very fortunate to be vineyards in the Alexander Valley. He is a apart of a great experience. Commissioner on the Sonoma County Winegrape Commission and lives in What do you think is special about the Healdsburg with his wife and four children. Alexander Valley? When not in the vineyards, Jim enjoys From the warm and wonderful hiking and spending time at Lake Tahoe. people, to its natural beauty of sprawling vineyard landscapes, Alexander Valley is Why did you get into winegrape very special. The Russian River runs the growing? length of the valley, and there are majestic In 1967, my mother and father wanted views of Geysers Peak, Black Mountain, a place they could get away on weekends Mt. St. Helena and Fitch Mountain. and for the summer. They purchased 20 Alexander Valley also borders one of the acres in Alexander Valley, and in the next greatest towns in the area, Healdsburg. years two adjoining ranches. Most of the landscape was prunes and pears with some What is your farming philosophy? old vine mixed reds (, , You take care of Mother Earth, and Early Burgundy, Petite Sirah etc.). In 1969 Mother Earth will take care of you. they planted 10 acres of Cabernet because the varieital wine business was beginning to take off, and the market for prunes had disappeared. When it What wineries have vineyard designates for your vineyards? was time for the first crop to be harvested in 1971, the price for Murphy-Goode Winery. Cabernet grapes had skyrocketed to over $700 a ton. With grapes prices moving from $100 a ton to over $700, my family’s plan to What practices do you see changing in the next five years? move from Berkeley to the country was easy. Before I knew it, This industry changes so fast you can’t predict what might the grape and wine industry was part of my life. While in high happen next year or the future. Since Sonoma County has school I worked at Simi Winery and continued during my committed to ultra premium wine production, whatever changes education at SRJC. Before I knew it I was well entrenched into the happen will only improve the quality of what we produce. vineyard business.

Continued on page 6 SCWC NEWSLETTER SUMMER 2007 PAGE 5

SCWC Ongoing Educational Opportunities

The Commission provides ongoing targeted education to support THE ORGANIC PRODUCERS’ GROUP the Code of Sustainable Winegrowing program. Grower meetings The Organic Producers’ Group began in 2003. These informal on Integrated Pest Management (IPM) and Organic Production monthly meetings are focused on organic grape growing education, are offered throughout the growing season. and grower-to-grower exchange of ideas and practical information. The meetings are held at different organic growers’ vineyards SONOMA COUNTY - COMMITTED TO throughout the county. The meeting format includes a talk by the SUSTAINABLE PRODUCTION host about the vineyard site and its particular successes and Sonoma County grape growers have been leaders in challenges, followed by a general discussion on topics of interest implementing the Code of Sustainable Winegrowing. If you have to the group. not done a self-assessment of your farming practices, or if it is time Some growers are certified organic farmers, but the majority to reassess to see where you have improved your sustainable have an interest in learning organic practices. There are four practices, a self-assessment workshop will be held July 18, 9:15 a.m. meetings held each season, and attendance continues to increase to noon, at the Redwood Empire Credit Union, 3033 Cleveland steadily to an average of 60 participants per meeting this year. Avenue, Santa Rosa. Lunch will be provided. In addition to these meetings, the IPM / Organic Field Day on To reserve a place, contact call August 1 attracts many 522-5862, fax 522-5866, or email interested growers. [email protected]. Topics covered at the Organic Producers’ Group meetings have IPM GROWER included: weed management; APPELLATION MEETINGS Willamette mites; powdery Have you ever attended an mildew; bluegreen sharpshooter IPM Grower Appellation Meeting management; improving soil (GAM)? The IPM GAMs are about health; vine nutrition, and a sharing and learning from each special emphasis on weed other. We need you or your PCA management this season. to attend. What pest management The April meeting was hosted by strategies have you tried that DeLoach Vineyards with Director reduced risk and worked? What Ginny Lambrix,director of winegrowing at De Loach Vineyards,answers questions at of Winegrowing Ginny Lambrix has failed? Come, share and learn – April Organic Producers’Group Meeting on weed management. discussing weed control and and get CEU credits. organic practices for their newly The SCWC IPM GAM was held in April, May and June in planted organic block. May’s meeting drew an interested crowd for Russian River, Sonoma Valley, Dry Creek Valley, and Alexander the Weed Control Panel headed up by Chris Bowland, SRJC Valley. The last of four monthly meetings will be on July 10, 11 and organic viticulture instructor, John Roncoroni, Weed Scientist 12. The meetings provide an opportunity for ongoing education on Farm Advisor, UC Cooperative Extension, Napa and Mark sustainable vineyard practices. If you want to be on the e-mail list Pasternak of Devil’s Gulch Ranch with a demonstration of an to receive monthly reminders and notes from the previous meeting, in-row mower. e-mail: [email protected]. The July 25 meeting will be at SRJC Shone Farm. Meetings The IPM / Organic Field Day, Wednesday, August 1, SRJC begin at 10:30 a.m. with PCA/PCO credit available. Shone Farm, will include IPM Season Highlights, Reducing Your Carbon Footprint, Water Stress-Induced Pest Pressures, Light Brown Apple Moth, Weed Management for Organic Vineyards, and Water Conservation. You don’t want to miss this one. PAGE 6 SUMMER 2007 SCWC NEWSLETTER

Hispanic Community Honors Four for Thank You Vineyard Education Contributions A big thank you to these wineries At the recent SCWC BBQ, the Hispanic Community honored the following people for that have so generiously donated their their contributions to the Hispanic communities and vineyard employees’ education. wines to the Sonoma County Chuck Hussey of Vérité Winery for his coordination and promotion of the annual Sonoma Grapegrowers Foundation. County pruning contest. Chuck has raised thousands of dollars for Alexander Valley pruning These wines are served at our contest winners. events locally and nationally. Judy Tuhtan, of the Sonoma County Winegrape Commission for her coordination of the Archipel annual pruning contests and vineyard employee development workshops in Spanish. Balletto Vineyards Hector Bedolla of La Crema Winery for his promotion of the professional participation Beam Wine Estates of Hispanic viticulturists and winemakers in educational seminars and workshops, and for his Chateau Souverain De Loach Vineyards support and teaching of Spanish classes at the Unified Wine & Grape Symposium each year. Diamond Oaks Vineyard Pete Opatz of Vino Farm for his support of affordable housing and job opportunities for Don Sebastiani & Sons agricultural workers. He was instrumental in the development of the “Bunk House Ordinance” Foppiano Vineyards that provides 900 beds for Sonoma County vineyard employees. Francis Coppola Winery Francis Coppola Winery Gallo Family Vineyards Geyser Peak Winery Gloria Ferrer Caves “UP CLOSE” CONTINUED FROM PAGE 4 Hanna Winery Inc. Why did the families decide to sell the Murphy-Goode brand? Huntington Wine Cellars We had taken Murphy-Goode as far as the families could, and it was time to move on. J.Pedroncelli Winery Kunde Estate Winery Lambert Bridge Winery What do you foresee happening with the winery in the future? Ledson Winery & Vineyards We are not sure if Kendall- Jackson is going to leave the winery and move Murphy-Goode. Martin Ray Winery If so, the Murphys may look into other wineries who need increased capacity or some custom Matanzas Creek Winery crush options. Moon Mountain Vineyard Papapietro Perry Winery What advice would you give to young people wanting to go Ravenswood Winery,Inc. into grape growing? Rodney Strong Vineyards Rosenblum Cellars Growing grapes and making wine is a passion; find your path and enjoy the ride. Russian Hill Estate Winery Saintsbury What is your favorite wine and food combination that you serve when entertaining Sebastiani Vineyards & Winery good friends? Selby Winery I have too many food and wine pleasures that I enjoy, such as: a great Alexander Valley Tandem Winery Cab works with a BBQ filet; with most any red sauce pasta dish or wild salmon;, Williams-Selyem Winery and Caesar salad a rich Chardonnay and Hawaiian sea bass; Zinfandel and ribs, burgers and sausages; Gewurztraminer and fresh summer fruit plates; Port and gooey, chewy brownies.

“[Grapes are] the most noble and challenging of fruits.” Malcolm Dunn, Head Gardener to the 7th Viscount Powerscourt, c 1867 Quotes in ‘Phylloxera’ by Christy Campbell SCWC NEWSLETTER SUMMER 2007 PAGE 7

Barbara & Don Stiling Awarded 2007 Viticulture Award of Excellence

Don and Barbara Stiling, owners of Stiling Vineyards, were Today the Stilings farm 25 acres of Chardonnay and 10 acres awarded the 2007 Viticulture Award of Excellence at our annual of Pinot Noir. They are dedicated to sustainable farming. Their BBQ on May 10. SCWC annually presents the Viticulture Award vineyard foreman, Jesus Garcia, has worked with them for more of Excellence to recognize individuals who have made significant than 20 years. Grapes from Stiling Ranch are used in vineyard contributions to SCWC, to Sonoma County viticulture, and to designated wines for Eric Kent Wine Cellars. Additionally, the greater wine and local communities. Darioush, Gary Farrell and Simi buy Stiling grapes. In 1986, Don Stiling decided, after Don’s farming philosophy is “never working 35 years in the corporate world assume you know everything you need to (Procter & Gamble), to become his own boss know. Always keep learning, asking and begin farming in California. He looked at questions, networking and seeking advice.” several options, including avocado farming. His community service includes board He settled on grape growing once he found positions on the Sonoma County Grape his dream property in the Russian River Growers Association as well as the Russian Valley. Don immediately planted 35 acres of River Valley Winegrowers, and he is a premier quality Chardonnay and Pinot Noir member of the Sebastopol Rotary. He has grapes. At the time, Pinot Noir wasn’t a very four sons and 10 grand children who visit popular wine, but he saw the potential and the ranch often. knew the land and weather conditions were “Don and Barbara are model members perfect for growing it. of the Sonoma County winegrape grower community,” says Duff Don’s wife, Barbara, retired from her own marketing company Bevill chairman of the board of SCWC. “Not only do they grow in San Francisco in 2001. She immediately jumped in to help run noteworthy grapes, they are also very involved with the winegrape the ranch more smoothly. In the past two years, Barbara has also industry and the local community in general.” used her marketing skills to assist with the formation of the Sonoma Congratulations to Don and Barbara. County Winegrape Commission and has served as a commissioner as well as heading the marketing committee.

Summer Vineyard Water Conservation Tips from the Sonoma County Water Agency

Sonoma County growers are being asked to conserve water this year, cutting use 15 percent. Here are some tips to help conserve: • Use restrictive early irrigation to prevent the development of excessively large vines, which waste water. • Improve wine quality by limiting irrigation. • Apply short and more frequent irrigation cycles to prevent wasted water below the root zone. • Irrigate in the early morning or after 6 p.m. • Implement vine and soil moisture monitoring systems. • Use canopy management rather than sprinklers to avoid heat damage to fruit. PAGE 8 SUMMER 2007 SCWC NEWSLETTER

Industry Perspectives As reported by Nick Frey

Industry meetings this spring provide perspectives on the state the high end are lagging. Consumers who spend a lot on wine are of the industry. One objective of the Sonoma County Winegrape buying more and Pinot Noir. Safeway wines Commission is to provide information important to grape growers selling over $20 now equal sales volume of wines less than $8 per to aid in your management decisions. Here are highlights of the bottle. Restaurant wine list “market shares” create some concern for some seminars I attended. Sonoma County growers and wineries. From 2004 - 2006, Napa has grown in its share of wine lists from 45.6 to 50.4 percent while SONOMA VALLEY VINTNERS AND GROWERS Sonoma County has declined from 29.5 to 25 percent. Average price has increased, but the declining share on wine lists is a QUALITY CONFERENCE, MARCH 13 concern. Contrary to this overall trend, Sonoma County John Ciatti, Joseph W. Ciatti Company, spoke at the Sonoma Chardonnay has grown from 24 to 30 percent, beating Napa Valley Vintners and Growers Quality Conference. He estimated County Chardonnay. Pinot Noir acres increased in 2006 by 5000 to 10,000 – or up to a Robert Yetman, University of California at Davis, reported on 40 percent increase over 2005 California Pinot Noir acreage! a wage and benefit survey for Napa County. Forty-seven responses Many of those acres were not in prime Pinot Noir growing areas. were received, representing 20 percent of Napa grape acres. The Plantings have occurred from Lodi to Bakersfield. Locally, Merlot mean hourly vineyard worker wage was $11.03 per hour. Supervisors vineyards have been budded over to Pinot Noir. These plantings averaged $16.03 per hour, and mechanics averaged $19.32. could weigh heavily on the Pinot Noir market – or provide the Paul Wagner, Balzac Communications, provided insights on supply needed to sustain Pinot Noir growth as a major in marketing your vineyard. Wagner feels each grower should strive to the US market. But growth will only be supported if the Pinot Noir be a category leader, i.e. the best, the biggest, or the cheapest, in wines meet consumer quality expectations at every price point. order to compete and profit. For small growers in Sonoma and Chris Sawyer, at the Carneros Bistro and Wine Bar, Marin Counties, that means competing on quality and being unique reported that Pinot Noir is the best seller at his restaurant. Also, when presenting your grapes to buyers. Growers must build brand young people are spending more on wine than older adults. Chris recognition for their vineyards. (Wagner also spoke at the June 20 also has no problem selling Merlot. SCWC Grower Seminar at the Kendall-Jackson Wine Center.)

NAPA VALLEY GRAPE GROWERS “AHEAD OF THE VINEYARD ECONOMICS SEMINAR, MAY 15 CURVE” SEMINAR, APRIL 19 The spring meeting season culminated at the Vineyard Economics Cyril Penn, editor of Wine Business Monthly, reported sales of Seminar on May 15. The speakers were optimistic on the prospects wines over $11 per bottle are growing 12-13 percent a year. for grape growers in the next three years. This optimism is based on Consumers are continuing to trade up in their wine consumption. a growing US market, especially for wines over $10 per bottle and There are now 200 American Viticulture Areas (AVA) in the few California nonbearing acres for the leading . California United States, making it difficult for any AVA to become well Chardonnay production has declined since 2002, except for the known. Pinot Noir and are currently being sourced globally large 2005 crush. This decline has occurred while US Chardonnay to meet the U.S. demand. sales continue to grow. Nonbearing Chardonnay acres are only 3 Bill Turrentine, Turrentine Brokerage, offered perspective on percent, or less than replacement. Chardonnay prices should global sourcing of wines. Wines of person, place and belief (Sonoma continue to strengthen in coming years. County wines) must compete with wines from “anywhere.” Bulk Steve Fredricks and Brian Clements, Turrentine Brokerage, wine imports have a lot of flavor per dollar. And there is a massive reported bulk wine and grape sales trends. Sonoma County oversupply of wine worldwide. In order to compete in this global produced five percent of the 2006 California crush, and currently market, Sonoma County must maintain grape and wine quality as it has 4 percent of the bulk wine inventory. In general, Sonoma bulk promotes its stories. wine prices are up. A majority of California bulk wine is now Bill Cascio with Glazers, a wine distributor, reported table produced in coastal counties rather than the Central Valley. wine sales in 2006 totaled 258 million cases and with 3 percent Today bulk wines are sourced globally for local bottling. annual growth would reach 358 million cases in 2015 (one hundred Chile, France, Spain and Italy all have large bulk wine inventories million cases would require grapes from 400,000 acres at Sonoma available for export to the US. Australian supplies will be reduced County yield levels). However, global competitors are lining up to due to the severe drought and frost that limited the 2007 crush. supply wines to meet this growth. Imports now comprise 30 percent Sonoma County grape sales have been made for 2007, with of US sales and import growth continues. Cascio also reported strengthening Cabernet Sauvignon prices, especially from sales are weak, but Merlot is stabilizing. That is the first good Alexander Valley. Merlot sales will continue to be difficult at any news for Merlot growers in quite some time! However, sales at price in 2007 and it will likely be two years before demand begins Continued on page 12 SCWC NEWSLETTER SUMMER 2007 PAGE 9

Mike and Francine Baldus Leaving the Commission

We regret to inform you that Mike and Francine Baldus will be or to help them out with countless needs. We will all miss them resigning as Commission employees at the end of July. Mike and and wish them our best in this new phase of their lives. Francine have decided to scale back their working hours in order to The Commission will be hiring new staff to carry out the roles have time available for family. They will Mike and Francine have played. Mike continue to be resources to the grower and Francine will help through this community, including part time support of the transition and will be available to assist scaled back Sonoma County Grape Growers with future commission projects or Association and Foundation. events. The change means all Mike Baldus began working with the Commission inquiries will come to Sonoma County Grape Growers Association our offices at 420 Aviation Blvd, Ste 106, when it was being formed 24 years ago. Santa Rosa, 707-522-5860 and fax Francine began her work for the association in 707-522-5866. These changes will be 1996. Both Mike and Francine have dedicated fully implemented by August 1. themselves to serving the grower community “On behalf of the winegrape growers of and they have done that with distinction. Sonoma County, we thank Mike and Over the years they have spearheaded the Francine for all of their dedication and Dollars and $ense and the BBQ, making hard work on our behalf,” says Duff hundreds of calls to vendors and growers alike Beville, SCWC chairman of the board. to ensure the success of these events. Growers and sponsors have always been able to count on Mike or Francine to answer their questions

New Commissioners and Alternates Elected (New officers will be elected on July 2)

Your votes have been counted for Commissioners and Commissioners who will be completing their two-year terms Alternates. Six candidates were re-elected to two-year terms and in 2008 include Chairman Duff Bevill (DCV), Vice Chairman four new grower representatives were elected to their first terms. Steve Hill (SV), Rhonda Smith (UCCE viticulture farm adviser) Those elected as Commissioners include John Balletto, Balletto Joe Dutton (RRV), Mark Houser (AV), Mark Pastarnak (Marin), Vineyards (RRV), Richard Mounts, Mounts Vineyards (DCV), and Alternates Becky Jenkins (SV), Doug Lumgair (CH), Allan Jim Murphy, Murphy Ranch (AV), Richard Rued, Rued Vineyards Nelson (AV), and Mike Rowan (DCV). (DCV) and Steve Sangiacomo (SV). Mounts and Balletto have These Commissioners and Alternates are your represen- served as Alternate Commissioners. tatives on the Commission. Contact them with your questions Those elected as Commission Alternates include Kevin Barr, or suggestions. Redwood Empire Vineyard Management (AV), Tim Carl, Knights Our thanks to outgoing Commissioners John Pelkan (KV) Bridge Vineyards (KV), Bailey Family Vineyards (KV), Vicki and Barbara Stiling (RRV) and Alternates Jesus Chuy Ordaz Michalczyk, Hawk Hill Vineyard (RRV), Bill Munselle, Wasson (SV), Joe Vivio (BV), and Jim Young (AV) for their service during and Munselle Vineyards (AV), and Wells Wagner, Sylvan Hills the Commission’s start-up year. Vineyard, (BV). Barr, Carl, Munselle and Wagner will be serving their first terms as Alternates. PAGE 10 SUMMER 2007 SCWC NEWSLETTER

Marketing Update By Larry Levine

In the past few months, the Commission’s marketing efforts have focused on developing our message, building our infrastructure, developing grower and winery relations and creating high-profile programs that we produce in association with our marketing partners – the Sonoma County Vintners, Sonoma County Tourism bureau and the AVA groups.

We have just completed creating our marketing plan for 2007/2008. At the end of July, we will be conducting grower meetings to tell you all about our exciting plans for the coming year (see President’s Message).

HERE ARE SOME HIGHLIGHTS: 1. Sonoma County Positioning: The Marketing Committee, working with Firefly Creative Company Company and the Sonoma County Vintners, are in the final stages of developing our positioning statements and tagline(s). Once completed, we will communicate these messages to our marketing partners – Sonoma County Tourism and all the AVA groups – so that all the groups can use consistent messages in their marketing and media efforts. We will also be doing consumer marketing research to validate that consumers react positively to the positioning messages. 2. Benchmark Research: We are also conducting national research to determine the level of consumer awareness about Sonoma County and its AVAs, as well as attitudes about Sonoma County compared to other world-class wine producing areas. The results will be the basis for annual follow-up studies where we can measure how effective our marketing outreach programs have been over time. 3. Website Upgrades and Redesign: Phase 1 upgrades to www.sonomawinegrape.org will be completed July 1. The new site will integrate the information from the SCGGA site and add new features for growers, grape buyers, consumers and visitors to Sonoma County. 4. Sonoma County Wine Map: Working with The Map Store in Windsor, the interactive map will have tools for growers to market their vineyards and grapes. It will be available in July to review. On the map, growers will be able to create their own website at no charge (underwritten by the Commission). The Map Store will assist you in creating your website. 5. Sonoma County Grapegrower Trade Publication Ads: We are in the process of developing ads for the top vineyard and winemaker trade publications showcasing the variety and premier quality of Sonoma County winegrapes. 6. Sonoma County Wine Stars: Our new program to recognize and thank restaurants and wineries that feature Sonoma County Wines on their wine lists or wine labels has been a big success. Both the restaurants and the wineries were excited about the program and are proudly hanging their Sonoma County Wine Star plaques in their establishments. We will expand the program next year. A major feature on the program ran in the business section of the Press Democrat on June 7, 2007. 7. Events: • The Sonoma County Showcase (July 13-15) will be bigger and better than ever, and we will assist in producing “The Vineyard Experience” on Friday morning. On Saturday and Sunday we will have a “Growers Pavilion” at MacMurray Ranch. Volunteers to help with these events are needed. If you are available, please e-mail [email protected] or call 522-5862. (More details to follow). • Sonoma County Grape Camp Promotion (Sept. 24-26) is moving ahead, with articles about it already appeared in New York Magazine and Wine News (more to come). The Wine Enthusiast and NBC-Chicago have already signed up to attend and cover the camp experience. For information go to www.sonomagrapecamp.com • The Sonoma County Harvest Celebration in New York City (Oct. 3-5,) features Alexander Valley Grower Jim Murphy, Vintner Joel Peterson of Ravenswood and Chef Bruce Riezenman of Park Avenue Catering. They will participate in several media, trade and consumer events. The real stars will be a large selection of freshly harvested winegrapes from Sonoma County and its AVAs for people to taste and enjoy along with our great wines & foods. SCWC NEWSLETTER SUMMER 2007 PAGE 11

Irrigation Hose Recycling

Netafim USA offers a recycling service for irrigation hose through Ag Plastics Recycle, who provide pickup at your ranch. If you have 5,000 – 25,000 lbs of hose, you can arrange pickup directly by contacting Bill Duncan at Ag Plastics Recycle, [email protected]. Please provide your name, address, phone number, major cross streets, nearest town, and estimated pounds of heavywall dripperline (HWD) and thinwall dripperline (TWD). One acre of HWD weighs 190 lbs; TWD weighs 90 lbs. Growers with smaller amounts should e-mail their information to [email protected] or fax to 707-522-5866. The Commission will then organize efficient on-farm pickup when truckload quantities are accumulated. (Polypropylene products like Queen Gil® are not recyclable.) HWD hose should be in four-foot coils stacked no more than five feet high. Coils can be tied with TWD hose or twine (no wire). The hose must be accessible by a 60-foot semi tractor and trailer and have a clearance height of 14 ft. Hose must be free of foreign materials, but emitters need not be removed. TWD can be rolled on spools made of PVC or PE pipe less than four inches in diameter or tied in rolls or long bundles using TWD or twine (not wire). We encourage you to take advantage of this program to recycle your drip hose.

The Light Brown Apple Moth(LBAM) by Nick Frey

Growers have probably read about the Light Brown Apple On May 16-18, 2007, the LBAM Moth (LBAM), the latest exotic pest to arrive in Northern Technical Advisory Group met, toured California. Currently, the pest has been detected in nine counties, infested areas, and is now finalizing their Monterey, Santa Cruz, Santa Clara, Alameda, Contra Costa, San recommendations designed to provide Mateo, San Francisco, Marin, and Napa. short- and long-term plans to contain, control, and eradicate LBAM is native to Australia and is related to Orange Tortrix. LBAM in California. The USDA has assembled this team of subject It feeds on over 200 plant species, including grapes. Larvae feed on matter experts from the United States, Australia, and New Zealand leaves and clusters, damaging berries and increasing the incidence to provide recommendations on survey methods, mitigation tools, of Botrytis bunch rot. and eradication strategies. LBAM infestations create serious issues for growers as harvest With this evolving situation, we should anticipate changes approaches. Infested counties have been quarantined for interstate to occur. For up-to-date information go to: and intrastate shipments of plant materials, including grapes. The www.cdfa.ca.gov/phpps/pdep/lbam_main.htm. quarantine requires that trapping for LBAM occurs at an approved Lisa Correia, Sonoma County Agricultural Commissioner, detection level with traps inspected by an inspector biweekly. In reported that over 200 traps are being monitored in Sonoma addition, to ship grapes from vineyards within 1.5 miles of an County, with no LBAM detections as of June 1. LBAM detection site, either the vineyard or the harvested grapes will need to be inspected within 30 days prior to shipping. If a vineyard is infested, shipments to non-infested counties or states will be blocked until found free from LBAM. PAGE 12 SUMMER 2007 SCWC NEWSLETTER

“INDUSTRY PERSPECTIVES” CONTINUED FROM PAGE 8 to exceed supply. Syrah demand is weak, and supplies are ample. A panel of growers and grape buyers, including Sonoma Zinfandel is in balance, with Old Vine Zin obtaining a County’s Steve Hill, recommended that growers produce what does premium in the marketplace. best at a given site and not chase the market for today’s hot variety. Sonoma County Chardonnay is in short supply today and Growers were cautioned not to plant Pinot Noir today without a prices are strengthening. Pinot Noir demand remains strong, but contract and a suitable site. One variety in demand is Riesling. there are fewer opportunities to package other varietals with Pinot Steve Hill also cautioned growers not to plant obscure varieties, Noir sales this year. California nonbearing acres are below especially for a single winery. “If that contract is not renewed, prices replacement levels, i.e. 6 percent, for Cabernet Sauvignon, can fall like a rock,” said Hill. Chardonnay, Syrah and Zinfandel. This bodes well for grape Karen Ross, California Association of Winegrape Growers, growers, barring increased inroads by imported wines. reported that nine countries have Wine Bureaus in the US to Rob McMillan, Silicon Valley Bank, surveyed 500 promote their wines. Their goal is to continue increasing their wineries selling high end wines, and 30 percent of respondents share of the US market. CAWG is initiating a public relations indicated they had insufficient wine stocks to meet projected campaign to promote California wines in the face of increasing demand. Only 10 percent of wineries felt they had too much supply. global competition. This, coupled with historically low nonbearing acres statewide, In summary, growth in US wine sales, particularly at the suggests new plantings are needed. But high land prices are limiting high end, bodes well for Sonoma and Marin County growers. new plantings. The operating returns on new vineyard plantings are Supply and demand are coming back into balance for most just not adequate. Thus, new plantings are moving to lower-cost varieties, and shortages are appearing for Chardonnay and are appellations. While domestic plantings won’t support higher US predicted for Cabernet Sauvignon. Pinot Noir remains strong, demand for high-end wines, grape prices are only expected to rise but new acres coming into production may test the depth of the somewhat while premium imports fill the void of unmet demand. demand for this variety. Imports remain a real threat, now having a 30 percent market share, and they are projected to increasingly supply the high-end market to meet demand in this segment.

“THE TRADEMARKING OF VINEYARD NAMES” CONTINUED FROM PAGE 3 A Royalty: a winery should pay for the right to use the trademark. It could be a nominal amount (a case of wine per year), or a percentage of revenues. As the vineyard name becomes ADVANTAGES OF REGISTRATION: more famous, a grower should be able to charge more. • Right to exclusive use of the Quality control: The grower must retain the right to review and approve the quality of the trademark nationwide. wine which appears under the trademark. This is the most important point: without this right, • Everyone is put on constructive the grower could be found to have abandoned their trademark rights. This can create an notice that you are using this interesting situation: the winery may be required to buy the grapes under a grape contract, trademark. but the grower may have the right to determine whether the wine is good enough for a vineyard designate. • You can enforce your trademark rights in federal court. Infringement: • You can get treble damages While relatively inexpensive to search and register a trademark, the real expense and attorneys fees in an may come later. Once you have a registered, you have to protect your trademark against enforcement action. infringing users. You will need to have a budget for legal fees for trademark enforcement. Often, infringing users will not take you seriously unless you file a lawsuit. • After five years,your trademark Overall, registering a vineyard trademark and licensing it properly to wineries will becomes incontestable. require an initial investment in time, and money, and you must enforce your trademark rights once you have them. The payoff will be that you will have created an additional asset that will enhance the value of your vineyard in the future. A vineyard with a registered trademark is worth more than one without. SCWC NEWSLETTER SUMMER 2007 PAGE 13

Current Market Conditions As reported by Nick Frey SCWC Weather

It has been an early and nearly ideal spring, Information not only in Sonoma County, but in most of California. The fast start resulted in flowering being Website and nearly complete in most varieties by June 1. Voice Mail Usually, early budbreak leads to a lighter crop, but cluster counts are good – two clusters per shoot in SCWC is pleased to offer both internet most vineyards, according to Brian Clements, access and phone messages for Sonoma Turrentine Brokerage. The prospects for an average County weather. Fox Weather LLC begins or above average crop have stalled winery buying its eleventh year of service to our county’s on many varieties, although buyers recognize the growers,providing valuable forecasts for crop is not made yet. There are concerns about frost and other weather variations that water supply following a dry winter. Even with the affect your grape growing. prospects for Sonoma County to have the third good crop in a row, the market is better today than Phone number it was in 2001 and 2002. (707) 522-0286 Clements also reported on demand for Sonoma County grapes. Pinot Noir demand remains strong. On the Web Cool climate Chardonnay demand is strong, and www.sonomawinegrape.org warmer climate Chardonnay demand is good. New barrels waiting to be filled at Sonoma-Cutrer. (On left hand column,the bottom link under Wineries have been in and out of the market for “Commission Information” is “Weather link info”) Cabernet Sauvignon, and sellers outnumber buyers today. Merlot and Syrah markets are not User name:scwc active beyond renewing contracts with existing growers. Sauvignon Blanc has been hit and miss. Password:scwc07 Old Vine Zinfandel is in demand, as are the floral varieties, i.e. Gewurztraminer and Riesling. Glenn Proctor, Joseph W. Ciatti Co, echoed concerns about crop size. Cluster counts have SCWC would like to thank the been up in 2007, but there are reports of variable set by some growers. Wineries express concerns following daily sponsors: about too much supply at too high a cost, which makes them very cautious in committing to 2007 American AgCredit purchases. There is still 2005 bulk wine on the market although that will soon clear. Supplies Chris Maloney Crop Insurance from 2006 are also available, although Sonoma County bulk supplies are lower than for other Clos du Bois parts of California. Alexander Valley Cabernet Sauvignon has been selling, and most Chardonnay Geyser Peak bulk wine has sold. Importantly, major buyers are not in the market for bulk wine or grapes right NovaVine Grapevine Nursery now. Most sales are to negotiants or small, high-end buyers, but their purchases are relatively United Agri-Products (UAP) small. Proctor remains optimistic longer term due to growing wine sales and few nonbearing grape Vineyard Industry Products (VIP) acres to supply the growth. and The Satellite Rain Analysis 2006 FINAL GRAPE CRUSH REPORT (NEW this year) sponsor: Clendenen Vineyard Management Final prices for major varieties are: Chardonnay – $1,726; Sauvignon Blanc – $1,449; Cabernet Sauvignon – $2,266; Merlot – $1,530; Pinot Noir – $2,507; Zinfandel – $2,309 and Terra Spase,Inc,is providing web Syrah – $2,231. site access and Adcon data Market reports typically focus on the larger volume varieties. Individual growers have for frost verification. significant production of other varieties that are featured by some wineries or used as blenders. The 2006 Final Grape Crush Report average prices for other Sonoma County varieties with over 500 tons crushed are: Pinot Gris – $1,795; Semillon – $2,050; Viognier – $2,206; – $2,838; – $2,484; Pinot Munier – $2,157; Petit Verdot – $2,677; Petite Sirah – $2,371; and – $1,924. Small-volume varieties such as these should not be planted without a contract, but they can be a good way to diversify production and reduce market risk on part of your acreage. In summary, wineries will likely be very conservative in grape purchases from now until harvest. Wineries do not want to underestimate crop size and as a result rebuild high inventories as occurred in 2005. But, should the crop be smaller than estimated due to lower set or late season water or heat stress, there could be late buying to meet wine sales demand. 420 Aviation Blvd., Ste. 106 Santa Rosa, CA 95403

Platinum Commission Sponsors

EVENT & MEETING CALENDAR Please check the Calendar at www.sonomawinegrape.org for a complete listing of Events.

IPM GAM Meetings Info: 522-5862 July 10th Laguna Ranch, 2043 Laguna Rd, 9:00 - 10:30 am. 11th Barricia Vineyards, 15700 Sonoma Hwy, 9:00 - 10:30 am. 12th Rued Vineyards, 3850 Dry Creek Rd, 8:00 - 9:30 am. Jordan Vineyards, 2710 W. Soda Rock Rd, 10:30 am -12:00 noon.

18th California Sustainable Winegrowing Self-Assessment, 9:15 am - 12 noon. Redwood Credit Union, Sonoma Room B, 3033 Cleveland Ave., Santa Rosa. Lunch provided. Reservations : 522-5862 or [email protected].

19th Vineyard Managers’ Breakfast Registration required at [email protected].

24-26 Commission Grower Update Meetings (see inside for details)

25th Organic Producers Group SRJC Shone Farm, 6225 Eastside Rd, 10:00 -11:30 am. Lunch following. Reservations: 522-5862

August 1st IPM/Organic Field Day SRJC Shone Farm, 6225 Eastside Rd, 8:00 am-1:00 pm, Reservations: 522-5862 or [email protected].