Constellation divests Canadian wine division

Constellation Brands, the Victor, NY-based international beverage corporation, has sold its Canadian wine business for $1.03 billion Canadian (about $785 million U.S.).

The sale includes such Canadian wine brands such as Jackson-Triggs and Inniskillin, a variety of wineries, vineyards, offices, facilities, and Wine Rack brand retail stores. Constellation retains ownership of Black Velvet Whisky and its production facility in Alberta Province.

This is the second major deal for Constellation this fall. It recently announced the purchase of High West Distillery, a Utah company that produces a range of whiskeys. And, it recently acquired a minority stake in Bardstown Bourbon Company, one of the biggest new U.S whiskey distilleries.

“With the acquisition of High West and the opportunity to work with Bardstown Bourbon Company, we are strategically advancing our spirits business with access to high-quality supply and state-of the-art production capabilities,” said Constellation CEO Robert Sands.

Constellation's vast holdings include numerous popular brands, including Woodbridge, Mark West, Clos du Bois, Manischewitz, Robert Mondavi and Ruffino wines; Svedka Vodka, and Modelo and Corona beers.

In explaining the decision to sell its Canadian wine division, Sands said, “In April, we announced plans to explore an initial public offering (IPO) for a portion of our Canadian wine business as part of our strategy to focus on premium, high margin and high growth brands. [Instead] we seized the opportunity to sell the entire business in a value-enhancing transaction when it presented itself. The Canadian wine business is the leader in the Canadian wine market and is a long-term growth opportunity."

The purchaser is the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada.

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Wine, water, fuel wars in Finger Lakes

• From PRI: Public Radio International

With the glut of natural gas from the fracking boom, the energy industry is digging deep for new ways to store it. 

There already are more than 400 underground storage facilities across the U.S. in places such as old mines and depleted aquifers. But still more storage is needed, and now some residents and businesses in the Finger Lakes area of New York have found themselves tangled in a long-term standoff with Crestwood Equity Partners, which owns a vast underground storage facility in the region.

More than 100 wineries, distilleries, and breweries are nestled in and around the Finger Lakes area. Their business pours brews (and dollars) into one of the area’s major industries: tourism, which is worth $3 billion annually and employs close to 60,000 people in the region. ...

Some people who live and work around Finger Lakes are concerned about a big thing affecting their business -- namely, a proposal to store fuels below Seneca Lake, the region’s largest lake. In 2009, the company that’s now Crestwood Equity Partners submitted plans, currently under consideration by the New York State Department of Environmental Conservation, to store propane, butane and natural gas in the salt caverns deep beneath Seneca Lake.

Go here for the full story.

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Drought effect on NYS grape crop uncertain

A vineyard at Glenora Wine Cellars

• From The Associated Press

Grape harvests are underway at vineyards in the Northeast where unusually dry warm weather this summer was ideal for growing grapes. But, in parts of New York and southern New England where drought struck, some growers are seeing decreasing yields.

New York, the country's third largest wine producer, was hit hard by drought in the Finger Lakes wine region. Gene Pierce, owner of Glenora Wine Cellars on Seneca Lake, said his and other vineyards are seeing smaller crop yields, ranging from a 10% decline to as much as 30 to 40%. ... But it's too early to tell how the dry weather will affect the quality of the crop. ...

Dry conditions also tend to mean fewer crop diseases than a humid summer, said Tim Martinson, senior associate for viticulture at Cornell University's Agricultural Experiment Station in Geneva. He predicted grape harvests will likely be smaller for some growers. But "What's there is going to be really good stuff," Martinson said.

Go here for the full story.

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Why you need to take a look at Buffalo

• From Wine Enthusiast magazine 

Tucked between New York’s Finger Lakes wine country to the east and Canada’s Niagara Escarpment to the west, Buffalo is an under-the-radar destination for people in the know. Many compare it to the nearby culinary hub of Pittsburgh, but its edginess and proximity to grape-growing regions makes it more of an East Coast version of Oakland, CA.

The lakefront city hit a rough patch after its industrial heyday, but Buffalo’s stunning turn-of-the-century architecture was never torn down, and the cost of living and doing business stayed within reach. Now the old buildings are being revived for new ventures like restaurants, distilleries, breweries and wine bars. 

Go here for the full story.

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Vineyard and winery in planning stages for Staten Island

Staten Island seen from Brooklyn
via Verrazano Narrows Bridge

New York State wine watchers are fond of pointing out that there now are wineries in virtually every county making wines from New York grapes. Except maybe Richmond. Now, that is going to be remedied.

A prominent businessman on Staten Island (officially called Richmond County) has revealed plans to produce wine from grapes grown on the island, utilizing imported vines.

“Forty percent of the population is Italian on Staten Island. We drink a lot of wine here,” Richard Nicotra, owner of The Nicotra Group, a major developer, said in an interview with CBS2. “We are sophisticated, educated, classy people.”

Staten Island is the third largest of New York City's five boroughs, but has the smallest population. The vineyard idea is part of Nicotra's planned $20 million office complex in Bloomfield on the island's West Shore, where he will develop a vineyard on a two-acre site and on the roof of the building.

“We are going to transport a vineyard from Tuscany to Staten Island,” making wine that will be  “probably a little bitter, probably a little bold, like all the people here.”

Plans call for doing the first planting next summer, part of a two-year project. Nicotra said all profits will benefit various Staten Island charities.

The to-be-named project will not be the county's first winery, however. The Staten Island Winery, founded and owned by winemaker Bob Rando, makes wine from grapes he purchases from California growers. It is located at 106 Wakefield Avenue #A. Phone: 718-494-9463. Rando also is the winemaker at the Boston Winery in Boston, MA. In addition, small-scale winemaking is done with purchased grapes at the Vino Divino School of Wine, 42 Industrial Loop. Phone: 718-227-9463.

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Direct-ship wine gets test case in Pennsylvania

Here's a scenario: You were on vacation in France or Italy and found this quaint little winery that has been in the same family for generations and produces some tasty varieties, so you plan to order some of the wines directly from them when you get home. Forget it.

Here's another: You're planning a wine and cheese party and want to make it a genuine European theme. The cheese part is easy. Anything you can't find at your local shops can be ordered online and shipped directly to you. The wine part? That's a different story.

In the U.S., it isn't legal for foreign makers to directly ship alcoholic products to individual consumers. You can order foods, clothing, books, jewelry, techie items ... almost anything you'd like. But, alcoholic beverages have to go through a U.S. importer who -- after adding its own profit to the price -- sells to your local wine and spirits purveyor who -- after adding yet more to the price -- sells it to you.

Now, however, under a new law that took effect this summer and vastly changed the rules on sale of alcohol in previously uber-stodgy Pennsylvania, that may change. Among other things, what commonly is called Act 39 not only got rid of Pennsylvania's prohibition on direct wine shipments, it allows any winery, foreign or domestic, to apply for direct shipping permits.

Currently, more than 460 U.S. wineries quickly filed while no foreign wineries have, according to the Pennsylvania Liquor Control Board. But it's only a matter of time until wineries in Europe, South America, Australia or elsewhere will want to increase their market in places where consumers would be happy to skip the expensive layering.

And, it wouldn't be a major leap of imagination to think that alcohol regulators and politicians in New York and other states will be keeping a close watch on Pennsylvania's experience as what is, de facto, the test case for everyone.

Trib Total Media, which operates in the Pittsburgh area, has a very thorough analysis of the situation. Go here to read it.

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Fjord Vineyards dominates HV competition results

Ever hear of Fjord Vineyards? I suspect you soon will.

The Hudson Valley's newest brand, located at Benmarl Winery in Marlboro, Ulster County, was named "Winery of the Year" in the recent Hudson Valley Wine & Spirits Competition.

On the way to taking that title, Fjord also won "Best of Show," "Best White Wine," and "Best Overall Hudson Valley Wine," all for its 2015 Albarino.

Albarino is a variety of white wine grape grown primarily in Galicia in northwest Spain and  Monção and Melgaço in northwest Portugal, where it is used to make varietal white wines. It is believed that the grape was brought to those regions in the 12th Century by Cluny Abbey monks from France's Burgundy region. While Albarino wine is produced in several places in California, I believe the Fjord grapes are the only Albarino plantings in the state.

Other "Best of" winners in the competition, sponsored by the Hudson Valley Wine & Grape Association during the Hudson Valley Wine & Food Festival:

• Brotherhood Winery "B" Sparkling Rosé
• Robibero Family Vineyards 2013 Cabernet Franc
• Clinton Vineyards 2015 Rosée
• Christopher Jacobs Winery Appleoosa
• Millbrook Vineyards & Winery Late Harvest Riesling
• Brotherhood Winery Rebel Reserve Cider
• Dennings Point Distillery Beacon Bourbon

Go here and scroll down for all the medal results in the event, limited to wineries in the Hudson Valley AVA.

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