Clarksburg Vineyards expand promotion

First consumer tasting event is April 2-3; more AVA-designated wines sought

CWGVA president Tim Waits. owner of Lake Winchester Vineyard, and VP Mike Heringer of Heringer Estates wines are leading efforts to expand promotion and consumer awareness of the Clarksburg AVA.

Walnut Grove, Calif.—Ramping up efforts to build consumer awareness of the Clarksburg American Viticultural Area, the Clarksburg Wine Growers & Vintners Association (CWGVA) will hold its first consumer wine tasting event in April. The association is encouraging more members to produce Clarksburg appellation-designated wines and to sell grapes to wineries that will list Clarksburg on their labels.

The annual Clarksburg Grape Day held March 3 featured ideas and plans to promote the AVA. Organized by the CWGVA and the Sacramento County office of the University of California Cooperative Extension, Grape Day speakers reviewed grape market trends.

CWGVA president Tim Waits, owner of Lake Winchester Vineyard, announced that the association’s first annual public wine tasting event will be April 2 and 3 at Clarksburg’s Old Sugar Mill custom crush and tasting room complex. Thirteen wineries will pour more than 50 Clarksburg appellation wines. Called “Spring Fling,” the event is being promoted as an outdoor picnic with live music. Waits also encouraged members to use the Clarksburg Wine Country logo in their promotional materials. More Clarksburg Wine Country signs are being placed along roads throughout the AVA.

The Clarksburg AVA, Crush District 17, includes parts of Sacramento and Yolo counties in California’s northern Delta region, encompassing about 57,000 acres with nearly 20,000 vineyard acres planted. Production has traditionally been dominated by white varieties led by Chardonnay, Sauvignon Blanc, Pinot Grigio and Chenin Blanc; white wines account for about 70% of total production.

However, red varieties comprise the majority of new plantings and will become a larger percentage of total production. Merlot is currently the red variety with the largest production (10,800 tons crushed in 2009 and 8,300 tons in 2010), but planting and production are flat due to demand. As new Pinot Noir production comes online, it will soon become the AVA’s top red variety (8,700 tons crushed in 2009 and 6,900 tons in 2010).

Challenges and opportunities
CWGVA vice president and grower/vintner Mike Heringer of 3,000-case Heringer Estates offered suggestions for growers to help promote the AVA based on his research and experience and provided a pep talk listing Clarksburg’s attributes in comparison with other California premium winegrape AVAs.

Heringer called Clarksburg “a sleeping giant of quality, productivity and sustainability.” The Heringer family has lived and farmed in the area for six generations, adapting to changes in crop and commodity needs and economics to remain a viable business. The family manages vineyard acreage to supply California appellation Chardonnay and other varieties to larger wineries, but it also farms smaller blocks of 15 different red and three white varieties for premium wine production. Heringer Estates Clarksburg appellation wines include Barbera, Cabernet Franc, Petite Sirah, Petite Verdot, Pinot Noir, Syrah, Tempranillo, Teroldego and Zinfandel.

One of Clarksburg’s current challenges is a shortage of wineries: Only 12 are located within the AVA, whereas Napa has 450 wineries and Paso Robles is home to 200. Heringer explained, “The number of wineries in an appellation promoting that appellation is important to making consumer impressions. We have a long way to go in getting our grapes in appellation-designated wines.”

On the plus side, Clarksburg has an abundant water supply, and most growers have long-term rights to access water for farming. The AVA does not have high pressure from development as in other winegrowing regions, so farming will be the area’s major land use and remain sustainable long-term. Land values will be based on ag potential and prices are expected to remain stable.

Clarksburg also compares favorably in terms of climate compared with other premium grapegrowing areas. Its total growing degree- days average 3,922, compared with Healdsburg (3,806), St. Helena  (3,643), Paso Robles (3,642) and Sonoma (3,612). Based on his weather statistical research, Heringer noted that Clarksburg has lower probability for damaging spring frosts compared with St. Helena, Sonoma and Paso Robles, and it is less likely to receive significant autumnal rainfall compared with North Coast growing areas. “Clarksburg can produce comparable quality grapes with less risk, year-in and year-out, than other premium grape production regions,” Heringer stated.

Clarksburg’s climate and terrain enable production of a more diverse portfolio of premium winegrapes with potentially larger tonnages and at lower costs than in coastal appellations. Heringer said, “We have the volume and economics to supply the $6- to $8-per-bottle market any day of the week, but we also have the quality to supply the high end of the market as well.”

Pinot Noir acreage continues to increase in Clarksburg, with most production under long-term contract with wineries. As a measure of demand, Heringer mentioned that he had received calls from buyers currently looking for Pinot Noir. He had none available and offered to share contact information to anyone who has the grapes. In addition to producing its own Clarksburg appellation wines, Heringer has expanded its marketing of premium varieties to smaller wineries throughout the U nited States, and now sells grapes to about a dozen wineries who designate the Clarksburg AVA on their labels.

He suggested that growers plant experimental 1-acre blocks of specific varieties they can grow well, and manage them for the highest quality wine production possible to demonstrate Clarksburg’s premium wine potential to winery buyers.

Summarizing opportunities for growers, Heringer said sustainable farming practices can help improve quality and be a marketing tool; there are opportunities to supply both the local and global market, and Clarksburg offers economic and quality attributes that growers can promote and use to compete successfully in the market.

Wineries have opportunities to produce high quality wines at lower costs: Since the AVA does not enjoy high consumer awareness, there is opportunity to build positive perceptions without overcoming a negative image.

Grape and bulk wine market trends
Erica Moyer, broker/partner with Turrentine Brokerage, Novato, Calif., reviewed statistics from the Preliminary California Grape Crush Report for 2010 issued in February and discussed grape supply/demand and price trends in relation to Clarksburg.

Although the 3.6 million total tons crushed statewide was higher than many originally expected, 2010 tonnage declined 5% in the North Coast from 2009 and declined 22% for California’s Northern Interior, which includes Clarksburg along with Lodi and the Northern Sacramento Valley. The Central Coast and Southern Interior (San Joaquin Valley) regions each gained 5% over 2009.

Overall interior tonnage was down for Cabernet Sauvignon, Merlot and Chardonnay, but Southern Interior increases in Pinot Gris and Pinot Noir gave those two varieties small overall tonnage increases for the Interior regions.

Moyer said a weak dollar is helping the United States in global competition for bulk Chardonnay, although overall demand is weaker than supply. Clarksburg Chardonnay previously enjoyed some premium in pricing, although it is still unclear if that will be the case for the near future.  Demand for Merlot is weak; some acreage is being taken out but average production levels are being maintained. She speculated that because Cabernet Sauvignon supply is down, if that market tightens, there could be an uptick in demand for Merlot to use as a blender.

Moyer said that due to weather conditions, statewide tonnage for Pinot Noir was down in 2010 compared with 2009, even with increased acreage coming into production. Although a bigger supply of Pinot Noir is hitting the market, Moyer said, “California Pinot Noir is a strong brand, and we’re seeing increasing demand.”

Since most Clarksburg Pinot Noir is under contract and not going to the bulk market, area growers should continue to see good prices, and this could also favor more new planting. Moyer suggested Clarksburg is competing more directly with tonnage from Monterey and San Benito counties based on quality and price factors, particularly with premium varieties such as Pinot Noir.

For varieties such as Chardonnay, Cabernet Sauvignon and Merlot, the interior regions are benefitting—compared with coastal regions—from increases in value-brand production, consumer shifts to more economical wines and “just in time” inventory management by larger- volume producers. Moyer said, “The good news is there are some brands growing at the value-price level, but depending on variety, we’re not seeing a big difference in prices between the Northern and Southern Interior regions for bulk wines.” She also observed, “Brands still exist that see the value of Clarksburg, and they may pay more, but we need more of those brands. Overall, prices are still a bit better than last year.”

Delta farmers market offers sales opportunity
CWGVA members have a new opportunity to partner with the Discover the Delta Foundation, which will open its new Delta Farmers Market store later this month at the intersection of Highway 12 and Highway 160 near Rio Vista. Foundation executive director Wendy Martin said one section of the store will be a temperature-controlled wine retail sales room devoted to wines produced from grapes grown in the Delta. Clarksburg wines will be featured, with a map of Clarksburg Wine County and brochures to help visitors locate tasting rooms.

The store will be open daily and a weekend outdoor market will open in April, where local Delta ag producers can sell products directly to customers. Wineries are encouraged to set up stands to sell their wines direct on the weekends. Martin noted that an average of 27,000 vehicles per day travel past the market location.

Construction will break ground later this year for an 8,000-square-foot Delta Discovery Center adjacent to the market, to serve as an educational resource about Delta history, agriculture, commerce and recreational opportunities. It’s expected significantly to increase visitor traffic at the location.