Washington Wine Industry Tops 650 Wineries(1)

With Wash. wine industry at 650 and growing, winemakers seek new ways to set themselves apart

Hugh and Kathy Shiels wanted to stand out when they started Cote Bonneville winery in 2001, and at $100 a bottle for their initial vintage, they certainly did.

In this photo taken March 28, 2010, Kathy Shiels, center left, and Hugh Shiels, right, pour wine during a tasting event in Seattle. The couple built Cote Bonneville winery to create and sell world-class wines, and now their 650-plus competitors in Washington state are seeking ways to distinguish themselves. (AP Photo/Shannon Dininny)

Some criticized the eastern Washington winery for charging so much for unproven wines, but Cote Bonneville has received high scores from wine critics and found markets in Florida, New York, Chicago and, just last week, Denmark.

"We had pretty lofty goals for a small winery, and we're still maintaining those goals," said Kathy Shiels. "We had a particular piece of property that we believed was of the caliber to show itself on a world stage. That's not why a lot of people start making wine."

Back then, Washington's wine industry was an industry darling, with fewer than 200 wineries. Setting yourself apart wasn't overly difficult, whether you charged $100 a bottle or not.

No longer.

Now at more than 650 wineries in Washington, with a new license bonded every 10 days, it's getting harder to get noticed in a state still known more for its Red Delicious apples than its Riesling.

"I wouldn't want to start up now unless I had really, really deep pockets," said Rick Small, who in 1976 founded Woodward Canyon Winery near Walla Walla, Wash. "It's a lot harder than I think people realize it is, and there's a lot of competition, and I'm just talking in Washington."

Valued at about $3 billion annually, Washington's wine industry still ranks second behind California, which has more than 10-times the acreage and four-times the number of wineries. Few Washington wineries are widely recognized by average consumers outside the region, and most are known for producing wines priced in the $40-range and lower, though a number of wines top $100 a bottle now.

The competition has made it harder for winery owners in the state, said Robin Pollard, executive director of the Washington Wine Commission.

"It's definitely a buyer's market," she said. "Wine consumers are becoming much more educated and savvy and knowledgeable."