Showing posts with label American wine. Show all posts
Showing posts with label American wine. Show all posts

Wednesday, October 11, 2017

California's "Wine Country" Could Take Years To Recover From Deadly Wildfires

Wildfires that have been raging across Northern California’s “wine country” since Sunday have destroyed at least four wineries and seriously damaged at least nine more just as the season’s harvest came to an end. The damage could leave one of the state’s signature industry’s hobbled for years, according to NBC.


Of course, assessing the scope of the damage will be impossible until the fires subside. The Napa Valley Vintners trade association has not heard from all members, especially those in the most vulnerable parts of the valley.  By the time the fires started on Sunday – accelerated by dry conditions and strong winds -about 90% grapes had been picked. And most of the remaining crop of thick-skinned cabernet sauvignon grapes not expected to be affected by the smoke.


Most wineries remain closed from power outages and mandatory evacuation orders.



What remains of the Signorello Estate winery...


At the Gundlach Bundschu - the oldest family-run winery in California, started in 1858 - in Sonoma County, workers were not sure whether the grapes above the winery survived the fires, Fox reported.  


Katie Bundschu, a sixth-generation vintner, recounted a scary Monday night in which the flames licked at the perimeter of the winery but were beaten back by firefighters. A century-old redwood barn and her grandmother"s 1919 home were spared.


"The winery was in the path of the fire but escaped being engulfed by the flames. We have some damage to fix. The wine is secure in our cellars. We are cleaning up and hoping to have the power back on this week," Bundschu said.


However, Bundschu said that her winery, while damaged, will soldier on, and was seeking to dispel rumors that the business had been utterly destroyed. With information from the affected areas trickling out, a few other wineries have sought to inform customers that their facilities can be quickly repaired and expect to be back in business soon.



Burned out wine bottles at Signorello Estates


Millions of locals and out-of-staters flock to Napa and Sonoma counties every year to sample wine, sit in mud baths and soak in the region"s natural beauty.


Even one of the four wineries that was reportedly destroyed by the fires, the Signorello Estate winery in Napa, may recover. According to Fox, its vineyard appeared to be untouched by the flames.


Signorello Spokeswoman Charlotte Milan could only confirm damage to the winery and a residence. Fortunately, the estate"s 2015 reds and 2016 whites were stored off-site.



Burned out wine bottles at Signorello Estates


Not every winery was so lucky. The Paradise Ridge Winery in Sonoma County posted that it was "heartbroken" to announce that the facility had burned.


About 12% of grapes grown in California are in Sonoma, Napa and surrounding counties, said Anita Oberholster, a cooperative extension specialist in enology at the University of California, Davis. However, the grapes grown in those counties are of the highest quality and are used in the most state’s most expensive wines.


Since the year’s harvest had already been mostly completed by the time the fires broke out, the fire did little damage to crops, though it would’ve presumably destroyed stocks of harvested grapes and wines that have already been bottles.



What"s left of the Signorello Estate winery is seen through a window


Also, since the soil was unaffected by the fires, next year’s crop should be unharmed, Oberholster said.


Sara Brooks, chairwoman of the Visit Napa Valley Board of Directors and general manager of the historic Napa River Inn, said she has had some cancellations, but expects tourism to bounce back as it did after the 2014 Napa earthquake.


"It"s heartbreaking," she said, "It"s tough to see these places you"ve seen your whole life on fire."


However, for some vineyards, the process of rebuilding could be painfully slow. At least 15 people have died from the fires, while 150 more remain missing. More than 1,500 buildings have been destroyed.

Monday, August 28, 2017

Greeks Rejoice - Government Scraps Controversial Wine Consumption Tax

While austerity still reigns supreme over Greek society, amid resurgent refugee arrivals, still near-record high youth unemployment, record-high suicide rates, and a constant brain-drain exodus of young talent, this weekend saw a brief silver lining as the government decided to scrap the controversial special consumption tax on wine.


The measure, which not only did not meet revenue targets, but actually boosted illegal trade in wine and grapes, will be halted by the end of the year.



As KeepTalkingGreece reports, inaugurating the Wine Days of Nemea 2017 in one of wine producing regions of Greece, Minister for Rural Development, Vaggelis Apostolou said that the ministry is working on the legislation to scrap the special consumption tax on wine and it is expected to be ready before the end of the year.“It is a commitment by prime minister Alexis Tsipras that the tax will not exist in the new year,” Apostolou stressed.


Finance Ministry sources told daily Efimerida Ton Syntakton that the special consumption tax on wine caused more damage to the sector of wine producers than it brought revenues to the state.


In November 2015 and in terms of  additional modifications to the third bailout agreement, creditors and the Greek government had agreed to impose an  special consumption tax on wine, as the country’s lenders had decided they needed to collect an extra 300 million euros in indirect taxes per year. As this amount could not come from the grapes juice alone, they also imposed an extra tax on gambling.  Grapes  would bring €100 million, the gambling €200 million, creditors had calculated. Later they had modified their calculations down to 55 million euros per year.


The original proposal was that the extra tax would be 0.20-0.30 euro liter bottle, regardless of whether Greek or foreign wine.


Ultimately, the tax was 0.20 euro, some extra fees were added, a drop of tax here and a drop of fee there, the retail price reached 1 or 2 euros more per bottle for the consumer – although the average bottle has 700ml and not even one liter. In the magic world of Greek commerce, prices for average table wine of not worth mentioning quality ended up to be sold at €6.90 per bottle in the supermarket – from €4.90 before the tax.


The special consumption tax not only did not increase state revenues but literally backfired. It increased illegal trade in wine and grapes for wine making.


In 2016, the state collected less than 24 million euros from the extra consumption tax on wine. Instead of a permanent win from wine, the state in fact suffered a loss, if one takes into consideration the amount of money that did not land in state cash registers due to the illegal trade.


We are yet to hear what Germany thinks of this plan.