Brown-Forman may sell off a winery

BILL DOWD PHOTO

A tractor driver at a Sonoma-Cutrer vineyard in the Russian River Valley.

In the wake of news that Constellation Brands has sold 80% of its stake in its wine holdings comes news that beverage giant Brown-Forman Corp. is exploring “strategic alternatives” for its Mendocino County, CA, wine holdings.

However, a spokesman for Brown-Forman, best known to the public for its Jack Daniel's Tennessee whiskey, Woodford Reserve bourbon and Finlandia vodka, said the Louisville, KY, company has no plans to sell its Sonoma County winery, Sonoma-Cutrer.

"We concluded we’re very pleased with its brand-building model and that it can continue to do well in our hands," spokesman Phil Lynch told the Santa Rose, CA, Press-Democrat.

Brown-Forman says it is exploring strategic alternatives, including a possible sale, for the Fetzer winery, bottling facility and vineyards in Mendocino County and its other Hopland-based brands.

Last week, The Wall Street Journal reported Brown-Forman was putting its wine business on the block after several years of sluggish sales.

(Go here for a report on my visit to Sonoma-Cutrer at harvest time.)

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Adulterated Chinese wines seized

In what is no shock to anyone aware of the adulterated products China keeps pumping into the global marketplace, several wineries in what is referred to as "China's Bordeaux region" have been shut down and bottles of their wines pulled from stores after authorities found wine containing several chemical additives.

A report on Chinese state television today said the incident in Changli county in the central province of Hebei -- where a third of China's domestic wines are produced -- showed wineries were doctoring their beverages with sugar water, coloring agents and artificial flavorings, and then falsely using famous brand names.

Huang Weidong, an industry expert, said the additives could cause cardiac irregularities and headaches, and possibly are carcinogenic.

"We are highly concerned about this behavior. To ensure safety measures, we have already started to remove the suspected wines from the shelves," a spokesman for Beijing area Wal-Mart stores told the Global Times newspaper.

The Xinhua news agency reported that provincial authorities had shut down nearly 30 wineries and corporate financial accounts have been frozen.

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Constellation sells off wine supremacy

VICTOR, NY — New York State used to be home to the world’s No. 1 wine producer. That no longer is the case.

Constellation Brands, headquartered in this Rochester suburb, has announced it is selling 80% of its British and Australian wine operations to a private equity firm in Australia for $230 million. That makes Gallo the world’s largest wine producer.

Constellation Brands continues to own Robert Mondavi wines in California, along with such brands as Svedka vodka and such beers as Corona from Mexico, Tsingtao from China and St. Pauli Girl from Germany.

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Study: Wine shipments won't tempt youths

• From the Washington Examiner:

A report from Maryland's comptroller found that allowing shipment of wine from out of state does not contribute to underage drinking, deflating the most comment argument for the state's current ban -- and lawmakers are already lining up to repeal the law.

Comptroller Peter Franchot also found that shipment from out-of-state wineries would not hurt the local liquor industry, although imports from out-of-state retailers could have an impact.

His office examined the 37 states that allow direct shipment along with the District, and identified practices that minimize the risk of underage alcohol consumption. For example, packages should be labeled as containing alcohol, and services such as FedEx and UPS should deliver only to adults 21 or over.

But minors generally were not interested in abusing a direct-ship system to get an illegal fix, said Joseph Shapiro, spokesman for the comptroller's office.

"Their No. 1 one concern is immediacy," Shapiro said. "Your parents are going out of town this weekend, let's have a party, that type of thing. With direct ship, the shipment just takes too long."

[Go here for the rest of the story.]

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A wine business on the block

• From the Associated Press

NEW YORK — There may be two more wine businesses up for sale as some parts of the industry struggle with weak sales volumes and pricing.

Brown-Forman Corp., the maker of Jack Daniel's whiskey, is putting its wine business on the block, The Wall Street Journal reported online late Monday, citing unnamed sources. The company, based in Louisville, KY, has reportedly hired Rothschild to run the auction process after its wine business -- which includes brands such as Fetzer and Bonterra Vineyard -- delivered sluggish sales for several years.

The deal could fetch a few hundred million dollars, according to the report. Brown-Forman and Rothschild declined to comment.

The paper also said that people familiar with matter expect Constellation Brands Inc. to sell the bulk of its non-U.S. wine business to an unknown buyer as soon as this week. That deal is reportedly valued between $300 and $400 million.

Constellation Brands, based in Victor, NY, did not return calls seeking comment.

[Go here for the rest of the story.]

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Veritas' return stars Châteauneuf-du-Pape

NEW YORK -- The Big Apple's largest commercial wine cellar is again available for consumer now that Veritas has re-opened.

Park B. Smith's restaurant, which returned Tuesday after being revamped and re-staffed since the summer, has an immense wine list of 3,300 selections that range all over the globe and all over vintage years.

Smith's favorites are his Châteauneuf-du-Pape segment, which he is offering at discounted prices although most still will be costly, given their provenance. The wines, from the Rhône region of France, are from a variety of estates, including Domaine Pontifical and Domaine de la Mordorée.

Veritas, after dismissing its staff and locking its doors without public notice back in August, now offers New American fare rather than its former pricey a la carte menu. It is located in the Flatiron District at 43 East 20th Street, between Park Avenue South and Broadway. Phone: (212) 353-3700.

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Winds of controversy at NY winery

• From BuffaloNews.com

CAMBRIA, NY -- The owners of Arrowhead Spring Vineyards are planning to sue the Town of Cambria over last week’s rejection of their request to install a wind power turbine on their property.

After a crowded public meeting showed solid opposition last Monday, the town Planning Board voted unanimously against the winery’s proposal.

Owners Duncan and Robin Ross said they shouldn’t have even had to go before the board in the first place, since they say state law is written to encourage windmills on agricultural properties. But, Planning Board Chairman William Amacher and attorney Gary Billingsley said the applicants misled the board by saying that the windmill would have powered only the wine making operation. Once the board found out the windmill also was going to power the Ross home on the site, the project no longer qualified for a simple site plan review under the town’s ordinance, Billingsley said.

That shouldn’t be a big deal, Robin Ross said. “Like 90% of farms in New York State, we have one electric meter,” she said.

“It does make a difference,” Billingsley said. “Under normal circumstances, [Arrowhead] would have needed a special use permit, which requires a public hearing. [Duncan Ross] said it was only for agricultural purposes, which requires only site plan review.”

To obtain a special use permit, a noise study also would be required, Billingsley said. Anonymous fliers distributed around the town helped drum up a hostile crowd.

[Go here for the full story.]

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A celebri-quote: Sofia Coppola

• New York City-born Sofia Coppola, 39, daughter of iconic movie director Francis Ford Coppola and a very competent filmmaker in her own right, discussed her family's California winery during an interview with New York magazine's Grub Street staffers. 

Q: Your father owns a vineyard. Do you ever take any interest in that at all?

A: In the vineyard?

Q: Yes, or in the wine-making process. Are you into that at all?

A: Yeah. My brother made a wine, and I don’t know as much about it as I feel like I should, but I’m going there for the holidays, and I love to be involved in it and visit and see what they’re making. I’m learning. ...

Q: Does anybody stomp on grapes there?

A: Not anymore, but there’s a bottle somewhere from when we first moved there. I was a little kid and stomped on some grapes, and they bottled it and called it Lafitte Sofia. So there’s a bottle somewhere from 1977 or something. [Laughs.] It’s probably in our cellar somewhere. But we don’t stomp on the grapes anymore. It’s more high tech.

[You can read more comments in my Celebri-Quotes archive by clicking here.]

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1st 'Soiree des Grands Crus' set for January

NEW YORK -- Everything you wanted to know about Bordeaux wines may be at your fingertips in January, when 82 Mercer in SoHo hosts the first Soiree des Grands Crus, a social event and vintage wine tasting that will play host to 17 châteaux owners.

They are billed as the new generation of grands crus de Bordeaux estate owners. The wineries make up about 5% of the total production of wines produced in the Bordeaux region. Among featured estate wineries will be Pessac-Léognan, Sauternes, Saint Julien, Margaux, Pauillac, Saint Emilion and Pomerol.

Early Access tickets in very limited number are going for $250, with general admission tickets priced at $185.  Admission includes the fine food and wine pairing  event, featuring 23 Chateaux. Also included is free registration  and participation in the Wine Challenge to win Grands Crus de  Bordeaux. Tickets are available online.

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