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Dan Berger.
California Wine Country with Steve Jaxon and Dan Berger today includes Dan’s thoughts about tariffs and wine sales. This continues some of the subject matter he discussed on this episode of CWC three weeks ago.
Dan Berger begins by describing an online newsletter and Substack called Fermentations, written by Tom Wark. Dan says it has the most interesting perspective on the business. For the rest of today Dan and Steve will talk about some tastings and also about tariffs and the changing retail and wholesale wine market. Dan sees that the impositions of tariffs is going to be devastating throughout the wine industry. It will negatively impact foreign wine, but it will also adversely affect the entire market. 37% of retail sales are imported. If a bottle of champagne has gone from $50 to $125, buyers won’t buy. Wine prices are going to stay the same for California wine, and prices of European wine will go up.
The United States Wine Trade Alliance, representing 5,000 businesses, is attempting to lobby against the tariffs, but with dim prospects. Dan suggests looking for wines that are already here and buying what you want, now.
Layoffs, Disinvestment & Ownership Concentration
There have been layoffs in the wholesale wine business. In the last year, wineries have been going out of business. Vintage Wine Merchants has closed and Constellation has announced their intention to sell their wine properties. Mr. Foley has been buying wineries in these distressed conditions and now owns something like thirty brands. Dan says that if the tariffs stay in place for over a year, look out for big trouble. Also, Canada has stopped buying American wine and spirits too. Canada has been an important source of revenue for some California wineries.
Chardonnay, Albariño and Gamay
2023 Kumeu River Estate Chardonnay from New Zealand that comes from a winemaker named Michael Brackovich that Dan knows. The winery is not far from Auckland, on a lovely bay. The wine is delicious. No tariffs have been threatened on New Zealand and Australia, at least yet. It is a great example of southern hemisphere Chardonnay.
They also taste a Hendry 2023 Albariño, from the Napa Valley. It is a variety that grows in Portugal and Spain, and also some in California. Dan says it has the structure of Gewürztraminer but the aromatics of a Riesling only with additional orange peel flavors.
Dan has selected wines today from California, Australia and New Zealand whose prices will not change.
Finally they taste a Gamay, which is similar to Pinot Noir. This comes from a property called Mount Edward in New Zealand. It could have been made into a fruity Beaujolais style wine but this one has a little more substance. It has black pepper flavors that come from the colder climate. New Zealand makes a lot of Gamay, which usually becomes the young fruity Beaujolais style. This wine is made more like a Syrah, focussed on acidity, instead of that. Dan would pair it with a well-done hamburger with some char on it.