As reported by Wine & Spirits Daily

MERLOT'S REPUTATION BETTER THAN PREVIOUSLY THOUGHT

Although merlot sometimes gets a bad rap, a new study by Nielsen and commissioned by Blackstone Winery found that merlot "has the single largest consumer base of any varietal wine in the U.S. and, of the major wine varietals, is the one most closely associated with high quality at an affordable price." Interesting. Conventional wisdom tells us that merlot took a big hit from Sideways, while pinot noir benefited. Not so says Nielsen. "Contrary to what people may think, Merlot never died," says Danny Brager, Nielsen vp of beverage alcohol. Perhaps that's because the majority of loyal merlot drinkers never saw Sideways. Forty-five percent of participants in Nielsen's survey of merlot drinkers never saw the movie, and 93% of those that saw the movie say it had no effect on their opinion of merlot. Since Sideways, merlot dollar sales and volume have grown steadily and the number of US households purchasing merlot more than doubles those purchasing pinot noir. This isn't surprising since pinot noir's growth comes off a much lower base than merlot.

More American households purchase merlot than any other wine variety, red or white. The varietal is reportedly loved for its taste, value and approachability, and also has the highest repeat purchase rate of any wine variety in the U.S. A majority of 90% of respondents say "taste" is the most important factor in their wine-buying decisions, with "good value" ranking second. Not surprisingly, 80% of respondents consider merlot "a good everyday and food wine," while roughly 70% find merlot to be "a good value" (rising to "great" when priced under $12 per bottle), "a good wine to drink at home," and "approachable and reliable."

Although merlot is the third most popular varietal after chardonnay and cabernet, it has a higher household penetration than any other wine variety, with 9.5% of U.S. households purchasing at least one bottle of merlot in 2008 compared to 9.3% for chardonnay and 8.8% for cabernet sauvignon. Merlot also boasts the highest repeat purchase rate of any variety, with 49% of merlot consumers making multiple purchases year over year.

Gary Sitton, winemaker for Blackstone Winery said: "There's no question there was some mediocre Merlot in the market earlier this decade as a result of growers planting too much in ill-advised areas. But much of that acreage has been pulled out, and the quality of California Merlot has greatly improved - supply and demand have come back into balance."

Chateau Julien Wine Estate is known for its' outstanding Merlot.

Watch for Taxation on Wine!

Wine & Spirits Daily
April 17, 2009
Researcher Blasts CA's Dime a Drink Tax

Dear Client:

After successful lobbying from The Wine Institute and other trade groups prompted California lawmakers to drop the controversial nickel-a-drink tax last month, state assemblyman Jim Beall Jr. has introduced a bill that would raise state alcohol taxes by a dime a drink. According to him, "The alcohol industry creates devastating problems - traffic accidents, alcoholism - and walks away with money stuffed in its pockets while the public - including nondrinkers - are left to pay billions for the mess." As usual, it's leaders like Beall that refuse to credit the alcohol industry for all the effort and money it invests in curbing underage drinking and alcohol abuse. Instead, they are more interested in pushing their own agenda and prying tax dollars from Americans who are overwhelmingly moderate and responsible drinkers.


In a local California newspaper paper, a professor heading the Reason Foundation said the assemblyman's claim that the alcohol industry creates problems "is false" according to his own research. In fact, affluent and successful people are more likely to drink. His 2006 study found that drinkers earn 10% to 14% more money than nondrinkers. Men who drink socially, visiting a bar at least once a month, bring home an additional 7% in pay.



A 2005 study sponsored by the National Institute for Alcoholism and Alcohol Abuse similarly found that drinking actually increased the returns to both education and work experience. And a 2001 study, "The Impact of Problem Drinking on Employment," found that even "problem drinking is not negatively related to labor supply," writes Professor Edward Stringham in the OC Register.



Furthermore, research indicates that only one-third of violent crimes involve alcohol, although The Marin Institute says $8 billion in annual costs to taxpayers stem from alcohol-related crime.



Finally, he ends the article by rightly claiming "the overwhelming majority of people who consume alcohol do so responsibly." Heavy drinkers do not curb their drinking in response to higher prices. Instead, it is light-to-moderate drinkers who are affected. "If alcohol abusers are truly addicted, will an extra 'dime a drink' stop them? Will a career criminal decide to not get drunk before his next crime spree because of a 10-cent-per-drink tax? Of course not."

Silicon's Valley's Top Wineries

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Congratulates Chateau Julien Wine Estate on making the list,



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Wine Dinner at Litchfield Plantation - AGAIN!!!!

Myrtle Beach Restaurant News
Welcome readers of MyrtleBeachRestaurantNews.com! We are so happy to welcome you to the Myrtle Beach Restaurant News and Entertainment section of MyrtleBeachCompass.com!
Certified Executive Chef Rob Beuth is settling in at his new position at Litchfield Plantation's Carriage House Club, and on April 9 he is preparing a special menu for a Chateau Julien Estate Wine Dinner. He says this meal will be extra-special because the vineyard owner is hosting the event.
"Chateau Julien is our house wine," Chef Beuth wrote in an e-mail. "We currently are the only restaurant outside of Charleston who uses this label. Each year the owner of the vineyard, Bob Brower, comes to the Carriage House and presents a wine dinner of all his favorite wines. There aren't many wine dinners around town where the actual owner of the vineyard is present. He presents each wine and gives a small story of each wine and will greet each table towards the end of the evening."
Chateau Julien Estate owner Bob Brower, shown here with his wife, Patty Brower, will host an upcoming wine dinner at Litchfield Plantation's Carriage House Club.The Chateau Julien Estate was founded by Bob and Patty Brower in 1982. It is in Carmel Valley, Calif., and Winemaker Bill Anderson has worked with the Browers since 1982.
A seat at this special table costs $72, and the evening gets underway at 7 p.m. on Thursday, April 9.
The menu includes:

Appetizer
Berkshire Farms Pork Belly: Slow-Braised Kurobuta Pork Belly over White Bean Ragout with Caramelized Onions and Apple Smoked Bacon, finished with a Natural Jus
Paired with: Chateau Julien Pinot Grigio

Salad
Golden Beet Salad: Butter and Brown Sugar Poached Golden Beets with Toasted Pistachios and Goat Cheese, with Baby Mache and Herbed Vinaigrette
Chateau Julien Gewurztraminer

Fish Course
Fresh Atlantic Black Sea Bass: Pan-Seared Black Sea Bass over Fresh Vegetable Ratatouille with Basil Pesto Tomato Broth, topped with Kalamata Olive Tapenade
Chateau Julien 2007 Reserve Chardonnay

Intermezzo
Lemon Sorbet

Main Course
Duck Trio: Sliced Duck Breast over a Duck Leg and Wild Mushroom Ragout, topped with Pan-Seared Hudson Valley Foie Gras and Lingonberry Infused Duck Jus
Chateau Julien 3.2 ton Reserve Merlot

Dessert
Peach "Melba": Vanilla and Cinnamon Poached Peach over a Vanilla Ice Cream Torte with a Lemon Pecan Crust, and finished with a Fresh Raspberry Coulis
Chateau Julien Port

Litchfield Plantation is on Kings River Road in Pawleys Island. Call (843) 237-9322 for reservations. The Carriage House Club is open for breakfast daily from 7-10 a.m., and for dinner from 6-9 p.m. Tuesdays through Saturdays

Merlot - It's about time to return!

Wine & Spirits Daily

March 16, 2009

Recession Gives Merlot a Chance to Shine

Dear Client:

Several years ago the "Sideways effect" on Merlot sales was one of the major issues in the wine business, but an article in WSJ contends the varietal is making a "Rocky"-like comeback. Could the recession prompt a comeback for the wine industry's prodigal son?

"Americans fell in love with Merlot, after all, because it was a meatloaf kind of wine, easy and unfussy, round and fairly soft, and we all need that kind of comfort these days. Not only that, but everyone is looking for value and so many Merlots are inexpensive. And Americans are clearly in a buy-American mood..." wrote wine critics Dorothy Gaiter and John Brecher.

In addition to the "Sideways" curse, many producers were making "really bad" merlot "for a really long time" after it became popular in the 1990s (which is something we see happening to Pinot Noir right now). As a result, the Merlot crush in 2008 was down -25% for the year "at its lowest level in more than eight years," said wine and grape brokerage firm Ciatti Co. after studying the 2008 California grape crush report.

WSJ hopes this means that "less Merlot will mean better Merlot" and that produces will focus on what is inside the bottle rather than producing "cute labels." After tasting more than 50 Merlots, Dorothy and John said the varietal "is struggling out of the hole that greedy winemakers dug for it. The wines were not uniformly good, but they were uniformly better than they have been in years." They admit that Merlot still has a long way to go before it becomes "a consistent treat," but there is hope.

In the four weeks to February 22, IRI reports that dollar sales of Merlot grew 3.2%, while red wines altogether grew 7.1%. In terms of volume, Merlot grew 5% and red wines grew 6.2%. Merlot lost -0.4 market share points in dollar sales but gained 0.1 share points in volume. So while it's not growing near as fast as other varietals, Merlot is showing some promise for the future.

Nice to know that we were missed!!!!

Monday, February 16, 2009

Overpriced, over-sold, and over-hyped!
I'm talking about the Grand Cru Lounge at the Washington, DC International Wine & Food Festival held on February 14 and 15. The Grand Cru Lounge is billed as an exclusive part of the festival: " - Pamper yourself by visiting the ultra-special Grand Cru Wine Lounge. Sample the best of the best and taste creations from the area's top chefs." What I experienced yesterday was nothing of the sort.I attended the Grand Cru Lounge last year and in 2007, the year it debuted as part of the festival. I attended because the Grand Tasting part of the festival had become so popular and overcrowded that even the trade hours were too much. In both of the two previous years, the Grand Cru Lounge was as it was billed: "Reserve level wines will be featured in this separate and sophisticated setting for the most serious wine enthusiast. All wines have been hand-selected and will be presented at specific times throughout the day. Several top winemakers will be on hand to discuss their wines as they are poured. A limited number of tickets are available in order to maintain a high-quality tasting experience..." Each year, the tasting was held in a very large, circular room called the Pavilion, with the Pavillion Prefunction room also being used. Many restaurants were represented, serving tastes of some of their signature dishes. The wines were for the most part the ultra-premium selections from excellent wineries, known and obscure, from all over the world. A live jazz band played, and some of the guests even danced. Overall, the Grand Cru Lounge events in 2007 and 2008 were a good value and an excellent experience.Not so this year! At 2 p.m. those of us with tickets were admitted to a long, narrow, tomb-like room. As is my habit, I proceeded through the room to the back, to scope out what the offerings were and to avoid the crush of people at Table #1. Maybe I didn't read the description of this year's event properly, I'm thinking. I got to the back of the room, and the only chef I saw was from the Occidental Restaurant, and he was arranging pastries on a display. There was also a table set up with Capitol Chocolate Fountains. A cheese display was in the middle of the center of the room, near the back. It had a nice selection of cheeses, fruits, breads and the like. But it was so large it made the already-cramped room seem more cramped. Walking back up towards the front of the room, I saw a beautiful display of colorful crudite, with some bowls of dressing on the side. By the time I got back to the very front, the room was completely full and there was very little room to move, let alone approach the tables to try to get a taste of wine. The room was more crowded than the Grand Tasting, and the selection of wines was certainly not up to par with the previous years'. Where was Hunt Cellars? Chateau Julien? Where was Nage and all of the other great restaurants from before? So I paid $125 to eat raw vegetables and cheese and crackers with my samples of wine? That was the only savory food being offered. As for the desserts, well, I did not pay $125 to enjoy a sample of Jadot Puligny-Montrachet 2006 with a chocolate-covered strawberry marshmallow. I didn't sample the desserts because I don't eat chocolate and I'm not a big fan of sweets. By 4:30 p.m., a full hour and a half before the event was scheduled to end, several of the wines were gone, and so was I.I'd love to hear comments from those of you who attended this year's Grand Cru Lounge, especially if you attended in previous years. I will be contacting ResourcePlus Shows & Events to express my dissatisfaction with this event. I hope you will, too. Just click on this link: http://www.wine-expos.com/Wine/DC/contact-us.asp?SHID=47699716.04953754.
Posted by Wine-Know at 7:37 PM 0 comments
Labels: DC Wine Festival, Grand Cru Lounge, overpriced, ResourcePlus

Under the Title of "I didn"t know that"

As reported by "Wine & Spirits Daily"

WASHINGTON GROWERS LOOK TO REFINE 75% PURITY LAW

Washington growers are supporting a bill that would require that 95% of Washington wines consist of Washington-grown grapes. WAWGG and the Washington Wine Institute are backing the bill, which received first reading by state lawmakers Jan. 29, 2009. The rule would also cover wines from AVAs that cross state lines, such as the Columbia Valley, Walla Walla Valley and Columbia Gorge AVAs, which include both Washington and Oregon vineyards.

Washington currently requires that only 75% of its wines be made from Washington grapes.
The bill seeks to require that Wines bearing labels referencing a specific viticultural area would have to be made 95% from grapes grown within the designated American Viticultural Area. If the bill becomes law, it would take effect 90 days after the adjournment of the current session. The latest possible date for legislation passed in the current session to take effect is July 25.

Great Survey - Nice Date

SURVEY: WOMEN AND WINE

Women are more likely to order a glass of wine at a restaurant to save money, according to a new survey conducted by Women & Wine and Full Glass Research. About 40,000 women averaging 29-44 were surveyed via social networks and Women & Wine subscribers, with 72% claiming they always or almost always order wine at a sit-down dinner. However, a majority of 70% said bottle prices were too high and that ordering by the glass was a good inexpensive way to enjoy wine in a restaurant. Thirty-two percent said they would scale back on their wine purchases in restaurants because of the economy, while 55% stated that they are comfortable bringing their own bottle and paying a corkage fee.

The study concluded "that while this economy presents challenges to all of us, there is a real opportunity for restaurants to gain loyalty from customers by listening to their requests for more diverse wines by the glass, educating the service staff on the wines and the etiquette of serving them and giving loyal customers an opportunity to bring their own bottle if they choose."

Industry News - As reported by Wine & Spirits Daily

Wine & Spirits Daily

January 9, 2009

Alcohol Sales Soft in December

Alcohol sales over the holidays were not so good, according to IRI's four week data ending December 28. A calendar shift is one reason for the decline. Not only was Thanksgiving late this year, but the period ended two days earlier than the same period last year. The next set of data should give a better read.

Nonetheless, Morgan Stanley noted that alcohol volumes were soft, declining -3.6% altogether. Beer volumes were down -3.3%, while spirits volumes declined -5.6% and wine dropped -2.9%. Domestic beer volumes fared better than imports.

Meanwhile, the average price per volume softened somewhat. The industry average increased 2.3% with domestic beer's average price growing 6%. The average price of imported beer grew 1%, while spirits pricing was flat and wine pricing increased 1%.

The shift in the calendar exacerbated trade-down in wine, said Morgan Stanley. In the latest 4 weeks, wine priced $7 and above wine saw sales decline -4.5%, while $7 and below grew 1%. Constellation continued to lose share in wine.

HARD TIMES FOR AUSSIE WINERIES

The global recession is making things difficult for wine grape growers in Western Australia who are struggling to find buyers for this season's grapes. It doesn't help that its two largest export markets, the United States and the United Kingdom, are in a recession, prompting large winemakers to think long and hard before entering into a contract. According to the AWBC, exports to the U.S. and Britain declined -26.5% and -18.2%, respectively. Australia's overall wine exports dropped a whopping -26.3% in November and value fell -18% to $2.47 billion last year.

As a result, winemakers are lending premium quality grapes to cheaper labels, or dropping prices altogether. According to local reports, Winemakers Federation of Australia chief Stephen Strachan said he expected the situation to last for about 12 months, which will force the industry to make some adjustments.

In the beginning of 2008, the strong Australian dollar was making it more difficult for winemakers to compete internationally, and a low 2007 grape harvest put pressure on supply. In the second half of the year, the Aussie dollar declined some and a large 2008 harvest took care of supply concerns. However, the poor economy has put a big constraint on exports.

For example, wine grape growers in the Riverland district were reportedly warned they would be paid 30% less than normal, sometimes even below the cost. Constellation also said Wednesday that the situation in Australia, along with the UK, is posing difficulties for the company. Meanwhile, Foster's is still trying to sort out its wine business. Theoretically, we should know what Foster's plans to do with the company by mid February when it releases the outcome of its Strategic Wine Review.

Wine Industry News

As reported by Wine & Spirits Daily"

"REPEAL OF PROHIBITION TURNS 75

Tomorrow (Friday, Dec. 5) marks the 75th anniversary of Prohibition Repeal, but Discus says a handful of states continue to suffer from Prohibition-era attitudes against alcohol that "punish consumers and small business owners across the country -- especially during this economic downturn."

Fifteen states still ban Sunday spirits sales at package stores. Seven states ban all forms of spirits tastings, while another 7 states continue some form of a ban on the sale of alcohol on Election Days.

"Consumers deserve and are increasingly demanding more convenience," Dicus president Peter Cressy said, adding that states are repealing Blue Laws as a means to increase revenue without raising taxes. Since 2002, 13 states have repealed Sunday sales bans.

"As America marks this historic Anniversary of Prohibition Repeal, let's raise a toast to those states who took a stand 75 years ago against one of the biggest policy debacles in American history," he concluded"

What is up for "Wine Consumption" at the Holiday's

As reported by Wine & Spirits Daily:

NIELSEN: CHANGING TRENDS THIS HOLIDAY SEASON

A new report from Nielsen says consumers are likely to view alcoholic beverages as an "affordable indulgence" this holiday season. In fact, Nielsen expects more Americans to give alcoholic beverages as gifts this year, "helped by the usual selection of special 'value-added' packs." Nielsen's report gives a much brighter outlook then other outlets that have suggested the business will suffer in November and December, which accounts for a big chunk of annual sales. For example, AdAge printed an article yesterday claiming Champagne sales are expected to take a serious hit.

Grocery stores, c-stores and other off-premise retailers will benefit most as Americans increasingly choose to drink at home. Meanwhile, restaurants, bars and nightclubs "are facing serious challenges in the current economy" during a period when more consumers go out than any other time of year.

When Americans are eating out, some people are cutting back on how much they spend by ordering fewer or lower-priced drinks, especially as it relates to higher-priced wines and spirits. Other consumers are trading down by visiting "fast casual" restaurants and quick service restaurants that may offer few or no alcoholic beverages.

"Given the importance of the holiday season to restaurants and bars, these establishments will need to pull out all the stops to lure consumer traffic back, using a variety of creative incentives as a hook," said Richard Hurst, senior vice president, Beverage Alcohol, The Nielsen Company. "Watch for on-premise outlets to push customer loyalty programs to drive repeat business."

On-premise retailers are targeting consumers who used to go out more in order to drive repeat business. For example, Nielsen said grocery stores are targeting restaurant-goers with well-priced easy meals, and other stores are adding alcoholic beverages to their line up. Nielsen also expects to see a continued increase in online shopping, especially for wine, where legal to do so.

Richard suggests that on-premise retailers "consider multiple store display locations to capitalize on impulse purchasing, as well as providing gift accessories nearby, such as bottle openers, gift bags, mixed drink party pack ingredients and glassware."

DOMESTIC VS IMPORTS. Domestic wine, spirits and beer is now outperforming imports for a couple of reasons. For one, a weak USD is making imports more expensive. Also, "consumers are often biased toward national or local products" in tough economic times. According to Nielsen, domestic and imported wines were growing at the same double-digit rates last year, but domestic growth is now ahead of imports.

"While there is evidence of consumers reducing on-premise consumption, as well as trading down to less expensive beverages, they are reluctant to cut back significantly on beer, wine and spirits, especially for at home consumption and entertaining. With the prospect of limited economic recovery in 2009, consumers are likely to consider alcoholic beverages as an affordable indulgence during the holiday season."

Is your Wine - Too Smokey?

As reported by "Wine & Spirits Daily"

October 22, 2008

Smoke Taint Abroad

California is not the only wine grape producing region that has faced smoke taint in recent years. Australian vintners, Canadians and producers from Greece, among others, have reported brushfires which some scientists warn could get worse in the future as the climate changes. Exposed wine grapes run the risk of passing the flavor to wine, resulting in a not-so-pleasant product that is described as tasting like smoked meat.

Scientists are focusing their attention on smoke taint and ways to prevent it. An article in ABC news claims a variety of solutions are now on trial, including vine sprays and reverse osmosis. One thing scientists recently learned: grape leaves are most likely responsible for absorbing the smoke, although the skin of the grapes was initially considered the gateway.

Causes for alarm began with the 2003 brushfires in southern Australia and were heightened after Napa Valley faced its own brush fires this summer, which is now beginning to show effects in California wine.

What Does the Federal Reserve have to say about the West

October 15, 2008
Federal Reserve Districts
Twelfth District--San Francisco
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Summary
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Full report

Economic activity in the Twelfth District weakened further during the survey period of September through early October. Retail sales were very sluggish on net, and demand fell for most categories of services. Manufacturing activity slowed, but sales continued to grow for agricultural products and natural resources. Activity in District housing markets generally remained anemic, and demand for commercial real estate weakened further. Contacts from financial institutions reported a decline in loan demand and credit quality, along with a drop in credit availability. Upward pressures on prices remained significant overall, due to the delayed influence of past increases in the prices of energy and selected commodities.
Wages and PricesDespite some easing of late, upward pressures on prices remained substantial. Prices on energy and selected commodities, including food products and some raw materials, have come down from their recent highs. However, these prices generally remained at elevated levels and continued to exert substantial upward pressure on overall final prices, due to the delayed effects of earlier price increases. Prices for many retail items were held down by extensive discounting, but some contacts cautioned that pending increases have been working their way through the supply chain and will reach consumers late this year and in 2009.
Wage pressures eased further as the degree of labor market slack deepened. Job cuts were reported across a wide range of industries, particularly in the construction, finance, and real estate sectors. As a result, unemployment rose throughout the District, and contacts noted that wages have been largely flat of late. The primary exception is worker groups whose skills enable them to use advanced technologies, for whom wage gains remained significant.
Retail Trade and ServicesRetail sales were quite sluggish and appeared to fall during the survey period, despite the influence of the back-to-school shopping season. Sales remained weak and inventories rose further for department stores and smaller retail outlets alike. Discount chains continued to see stronger demand than traditional department stores, as consumers switched away from high-priced items and curbed discretionary spending; outdoor equipment such as camping gear was one bright spot, as households gravitated towards low-cost vacation options. Sales for retailers of furniture and household appliances continued to slide from already low levels, and unit sales of gasoline fell further. Sales fell considerably for all types of automobiles, both new and used, with reduced credit availability reportedly emerging as a significant constraint.
Demand for services fell further compared with the previous survey period. Health-care providers reported declining demand, with some medical centers noting a significant drop in cash collectibles recently. Sales weakened for providers of advertising, professional, and legal services, idling some workers and reducing capacity utilization. Activity remained moribund for providers of real estate services such as title insurance. Contacts noted modest declines in tourist activity in some major tourist destinations in the District, such as Southern California and Las Vegas; the drop was more significant in Hawaii and was accompanied by layoffs there.
ManufacturingDistrict manufacturing activity slowed during the survey period of September through early October. Although manufacturers of commercial aircraft still faced an extensive backlog of orders, activity in that sector was sharply curtailed by an ongoing labor dispute. Makers of semiconductors and other information technology products continued to experience high rates of capacity utilization and moderate sales gains, but signs of a softening in global demand have emerged. Demand for wood products remained very weak, causing additional mill shutdowns. Activity at petroleum refineries continued at low levels, and capacity utilization remained well below its longer-term average. Capacity utilization also was very low among metal fabricators, for whom demand has weakened substantially. Firms in most sectors reported limited capital spending of late, with plans to hold flat or reduce spending during the balance of 2008.
Agriculture and Resource-related IndustriesDemand and sales for agricultural items and natural resources continued to expand during the recent survey period. Brisk sales were reported for most crops, propelled in part by strong export demand. Demand remained solid for petroleum products, spurring further expansion of extraction capacity. However, the recent decline in oil prices has reduced the viability of some high-cost expansion projects, and the recent hurricanes in the Gulf of Mexico sharply curtailed capacity utilization for District companies with operations there.
Real Estate and ConstructionThe District's severe housing slump continued, while demand for commercial real estate eroded further. Demand and sales remained very weak for new and existing homes, and prices continued to fall. Foreclosure rates on existing homes, which were already high in parts of Arizona, California, and Nevada, rose noticeably in Utah and Idaho. Widespread availability of foreclosed homes at bargain basement prices spurred sales of existing homes to exceed their levels from twelve months earlier in some parts of California. Demand for nonresidential real estate fell, and limited credit availability reportedly constrained property purchases and the number and scope of projects that were underway in some areas. Vacancy rates on commercial space rose in Las Vegas and other major metropolitan areas. Contacts noted that the strongest construction activity by far was for public buildings such as hospitals and schools.
Financial InstitutionsLending activity and credit conditions weakened noticeably during the survey period. Demand for commercial and industrial loans fell further, and demand for new residential mortgages remained very weak. Credit availability declined significantly as banks and other financial institutions faced rising difficulties securing short-term funding. Contacts also pointed to higher delinquency rates in all loan categories. Banks and customers are taking steps to enhance deposit-insurance coverage of existing holdings by spreading deposits across multiple banks.

$3,800 per Bottle - Now that's expensive

As Reported by Wine & Spirits Daily -

HART DAVIS HART WINE ACUTION REALIZES OVER $11M

In the Chicago this weekend Hart Davis Hart Wine Company sold one of the largest single-owner wine collections to date. The Fox Cellar, whose pre-sale estimate was $6.8-$10.2 million, exceeded expectations with $11,160,583 realized, becoming the fourth largest wine auction in history, and the largest cellar sold so far in 2008. 100% of the 1746 lots on offer sold.

An "unprecedented" selection of Château Lafite-Rothschild realized $1,819,627 against a pre-sale estimate of $1,067,200-1,598,700. The price achieved by the first lot of a seven case parcel of 1982 Château Lafite-Rothschild beat the world record for the wine. It sold to a Chinese bidder in the room for $54,970 against an estimate of $20,000-30,000. A case of 1982 Lafite sold for $46,000 (aggregate $54,970).

Large selections of wines from Haut-Brion, Latour, Margaux, Pétrus, and Domaine de la Romanée -Conti all soared over their respective pre-sale high estimates. The average lot value in the sale exceeded $6300 per lot over 1746 lots.

Bidders traveled to Chicago from 40 states as well as Australia, Europe, Canada and Asia to attend the acution which took place at Tru restaurant.

"During these times of uncertainty in the financial markets, the relationships that we have built over decades with buyers from all over the world are invaluable, and the results bear this out," said chairman John Hart in a statement. "I am thrilled for the consignor, and so proud of our team at Hart Davis Hart."

As Reported by Wine & Spirits Daily

ROSÉ SURPASSES WHITE WINE VOLUME IN FRANCE. Rosé has seen a surge in France particularly among young adults, who view rosé as a festive drink. Approximately one in five bottles of wine sold in France is a rosé, with the gains coming from falling red sales. Rosé's popularity is also being seen in Britain and especially the U.S. where the pink wine is booming.

Now - Do you think America will wake up to really good Rose wines. Our Rosato is "sold out" for the year.

As reported by Wine & Spirits Daily

RED WINE IMPROVES HEALTH, NOT LIFE SPAN

Researchers have found that resveratrol (a compound found in red wine grapes) will help slow the signs of aging although it will not necessarily prolong your lifespan. Previous studies suggested red wine could help people live longer, but new evidence says that's not the case. Instead, it will improve quality of life by providing heart benefits, stronger bones and help prevent cataracts.

"We found that while quality of life improved with resveratrol, the compound did not significantly affect overall survival or maximum lifespan," Rafael de Cabo of the US National Institute of Ageing said.

In the study, some mice were fed a standard diet, some a high-calorie diet and some got food only every other day. The researchers then began giving some of the mice resveratrol in either low or high doses when they were 12 months old, roughly the same as 35 years old in a person. The mice given resveratrol experienced broad health benefits compared to mice not given the compound, reports Reuters. De Cabo told the publication that Resveratrol "wiped out the negatives effect of the high fat."

However, De Cabo said it would be too early for people to start taking resveratrol supplements to improve health until more research is done

As reported by Wine & Spirits Daily

Wine & Spirits Daily

U.S. Ranks Higher in Drug and Alcohol Abuse

July 3, 2008

Despite strict drug and alcohol laws, the United States leads the world in rates of experimenting with drugs, researchers at the World Health Organization have found.

"The United States, which has been driving much of the world's drug research and drug policy agenda, stands out with higher levels of use of alcohol, cocaine, and cannabis, despite punitive illegal drug policies, as well as (in many U.S. states), a higher minimum legal alcohol drinking age than many comparable developed countries," said the research team, lead by Dr. Louisa Degenhardt of the University of New South Wales in Sydney.

After surveying 54,000 people in 17 countries, researchers determined that alcohol was by far the most common substance used worldwide, with higher levels found in the U.S. along with marijuana and cocaine. Sixteen percent of people in the United States had used cocaine in their lifetimes. The next highest rate comes from New Zealand where only 4.3% reported using cocaine. More than 42% of Americans admitted to having tried cannabis, closely followed by 41% in New Zealand, reports Reuters.

By the age of 21, up to 99% of Europeans, 92% of Japanese, 94% of New Zealanders and 93% of people in the Americas had tasted alcohol.

Interestingly, researchers found that countries with looser drug and alcohol laws have lower rates of abuse.

So what does the U.S. plan on doing? The U.S. National Institutes of Health director Dr. Elias Zerhouni said the following in a statement:

"These findings add to our understanding of substance abuse world-wide, and suggest that drug use is still a major problem in this country, pointing to the need for more effective prevention interventions."

The French try to take on New World Wines

As reported by Wine & Spirits Daily
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France Takes New World Approach

June 2, 2008

President Nicolas Sarkozy and the French cabinet approved a five-year plan to modernize its wine industry by simplifying marketing, production and labeling techniques. The proposal was written by the country's Agriculture Ministry as a way to gain back international market share from other wine producing countries, most notably the New World. The measure has been drawn up over the past two years.

"French wine is complicated and often little understood," the Agriculture Ministry said.

The most controversial initiative, perhaps, is a proposal to create three categories for French wines. A new mid-quality category, called the "Wines of France," will most closely mirror New World wines by including the grape varietal on the label (instead of grape origin) and using cheaper production practices, such as adding wood chips and tannins.

In another example, certain wines traditionally produced in one area (such as gewurtztramminer) can now be produced anywhere in France and sold under the new Wine of France category.

In addition to the Wine of France, the second category will be directed to a specific area and the third will cover the AOC appellation, of which there are 457.

The proposal is to be signed in August 2009. The French wine industry is cautiously optimistic, although some are disappointed that the proposal doesn't address whether it is legal to sell and promote wine on the internet.

"It's a way of giving new consumers a taste for wine," said Jean Claude Ruet, chief sommelier at the Paris Ritz hotel. However, "we will not fall as low as the Americans, who make vin rosé that is sugary and fizzy like soda," he continued.

In terms of volume, French exports have fallen behind many New World and Old World countries, but remain at the top in terms of value

Did you ever wonder about Vodka?

As reported by Wine & Spirits Daily:

DIFFERENTIATING VODKA

Vodka is vodka is vodka? Business Week featured an interesting article on vodka that begs the question: what, exactly, distinguishes one vodka brand from the next?

"With spirits, especially vodka (because there is so little to distinguish one product from another), the design of the bottle and label is crucially important, along with the country of origin and 'brand story.' Each vodka I tasted had its own brand story that helps deliver the product as much as a lemon wedge or olive."

In the article, journalist David Kiley conducts a blind taste test with avid vodka drinkers who generally stick to a certain brand (namely Ketel One, Grey Goose or Absolut). In the test, no one successfully picked their brand.

"The other conclusion I drew was that when it comes to mixing vodka with fruit juice, or unpurified ice, you might as well as save your money and keep a bottle of Popov around."

Based on this article, we notice a parallel between vodka and domestic light beer. Domestic light beer brands (Miller Lite, Bud Light and Coors Light) so closely aligned themselves with one another in the past through advertising that customers often had a hard time differentiating between brands. Today, those beer companies are working to differentiate themselves from the competition, and are doing a good job at it. Vodka brands, particularly premium and up, need to come up with their own very different marketing strategy and image to avoid falling in a "sameness" trap. Sounds easy on paper, huh?

Wine Industry News - China the NEXT Bordeaux?

Wine & Spirits Daily
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Wine in Fifty Years:
China, Plastic and English Champagne

May 13, 2008

Berry Bros. & Rudd, Britain's oldest independent wine merchant, made several predictions about the state of the wine world in 2058 in its "Future of Wine Report." Among its many predictions, Berry believes China could one day rival Bordeaux, while England could be a new champagne region in just 50 years.

In the world of volume wine, Berrys believes there are two specific areas set for significant change by 2058:

1. Countries renowned for "new world wine" will alter radically as the effects of climate change are felt.

2. The size of wine "brands" will lead to massive changes in the way wine is produced, packaged and marketed.

Leading the charge in volume wine, predicts Berrys, will be China. Already the world's sixth largest wine producer and number four in terms of area under vine, its not too far-fetched to believe that China could soon be the world's leading producer of volume wine. Berry believes China will excel in producing Cabernets and Chardonnays, in particular.

"China has the vineyards, but not the technical expertise," agrees Alun Griffiths MW, "however, if good people from wine producing countries think there is opportunity to make wine in China, they will go there and invest."

Berrys also believes that if global warming persists, countries that are currently small scale producers, such as Ukraine, Moldova, Croatia, Slovenia, Poland and Canada,

BLEAK FUTURE FOR AUSTRALIA. In recent years, Australia has suffered from severe droughts that have resulted in vineyard irrigation being temporarily banned. If this trend continues, says Berry, supplies of inexpensive Australian wine may soon be a thing of the past.

By 2058, Berrys predicts Australia will be too hot and arid to support large areas of vine. It will no longer be renowned for volume wine and will become, instead, a niche producer, concentrating on hand-crafted, terroir-driven, fine wine.

WINE BECOMES (EVEN MORE) COMMERCIALIZED. Berry experts believe big brand, blended wines with grapes from around the world could soon replace region-specific varietals.

"By 2058, big brand wine could be grape or blend specific, rather than from a particular country. Grapes will be gathered from all over the world and blended to suit consumers' tastes."

They also believe spirits companies and supermarkets will own most of the world's wine brands by 2058.

GLASS BOTTLES NO LONGER. In 50 years' time, Berry believes wine is unlikely to be sold in glass bottles as retailers and importers try to cut costs, waste, and reduce the environmental impact of wine being shipped around the globe. Instead, wine will be packaged in plastic or reinforced cardboard containers.

CHINA AND ENGLAND, UNRIVALED WINE REGIONS? While Berry thinks China is set to become a leading producer of volume wine, they also think China has all the essential ingredients to rival the best of Bordeaux.

"It is entirely conceivable that, in such a vast country, there will be pockets of land with a terroir and micro-climate well suited to the production of top quality wines," said Jasper Morris MW.

Thanks in part to warmer temperatures (2007 was the second warmest year in the UK in 356 years), more and more English land is becoming suitable for wine production. Berrys believes the amount of English farmland devoted to wine production may rival that of France by 2058.

French Champagne producers such as Louis Roederer have been looking at the chalky soil of the South Downs with interest, believing it offers them a great opportunity to produce sparkling wines similar to Champagne itself.