Milestones in California Wine
1934-2009
(Part One)
Presented by:
Jon Fredrikson
President
Gomberg, Fredrikson & Associates
WINE INSTITUTE
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1934
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Original Purposes of the Wine Institute, 1934
•
•
•
•
to open markets to California wine.
to reduce burdensome and punitive taxes.
to oppose prohibition.
to educate consumers and the trade.
Wine Sales Obstacles in 1934
• Prohibition - wine legal in only 26 states.
• Restricted outlets and other trade barriers.
• Only about 11 million cases of wine (mostly
dessert wine) were sold.
• Wine consumption was much higher as many
consumers legally made their own wine.
Wine Advisory Board Advertising & Promotion
• A marketing order established the Wine Advisory
Board in 1938. Wine Institute administered many
functions under contract.
• The Wine Advisory Board's purpose was to promote
the uses, joys, and benefits of California wine.
• Early advertising campaigns focused on wine as a
mealtime beverage.
• This advertising helped convert the industry from
dessert wines to table wines.
Wine Advisory Board
Wine Advisory Board
U.S. Wine Consumption Per Capita
2.5
Gallons of Wine Per Capita
Dessert & Other
Table Wine
2.0
Dessert Wines (Port, Sherry 2.5
and
Muscatel) Were the Largest
Selling2.1
Wines
1967.
2.0until2.0
1.5
1.3
0.9
1.0
0.9
0.7
0.5
0.3
0.0
1934 1940 1950 1960 1970 1980 1990 2000 2008
Sources: Wine Institute, GFA, Dept. of Census
Roper Wine Attitude & Usage Study (1955)
• "Wine is not regarded as a familiar part of American
life." Wine drinking is an "old world custom."
• Favorite wines: Port, Sherry, Kosher, Sauterne,
Burgundy, Muscatel.
• Wine is a special occasion beverage.
• Most respondents agree that wine is healthful.
• Wine rates high on prestige, but is not considered to be
an expensive drink.
• Wine perceived as being for older people, and
particularly older women.
Wine Advisory Board
Wine Advisory Board
Wine Advisory Board
Wine Institute’s Work on Opening Markets
• Wine Institute began work on opening closed markets in 1934.
Hundreds of obstacles to orderly wine marketing were
proposed and defeated.
• Prohibition remained in Kansas until 1948, in Oklahoma until
1959 and in Mississippi until 1966.
• Even in 1970 there were local prohibition laws in 32 states.
• Many Prohibition moves defeated, including major attempts to
establish local prohibition by constitutional amendment in
California in 1936, 1948, and 1954.
• Wine Institute’s work on opening markets continues today
with direct-to-consumer shipping in many states.
Evolution of California Winery Advertising Over the Decades
“We, at Roma, have an idea that our forward march together
is traceable to … free-enterprise competition…
Because all have this freedom to fight … we, at Roma, take
off our hats to the system…”
1952
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1950s
1960s
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California Wine Grape Acreage 1968 to 1977
Planted Acreage Soared by 200,000 Acres Up 140%
350
300
Non-Bearing Acres
Bearing Acres
250
200
150
100
50
0
1968 1969 1970 1971 1972 1973 1974 1975 1976 1977
Sources: Calif. Dept. of Food & Agriculture.
The Emergence of
Varietal Wines
1942
Frank Schoonmaker – Champion of Varietal Wines
•Was a respected writer, the author of the Complete Wine Book (1934)
and Frank Schoonmaker's Encyclopedia of Wine (1964).
•One of first importers of wines bottled by the grower/winemaker rather
than by a negociant. Owned five retail stores in major markets.
•Became the Champion of varietal wines. As a consultant to Almaden
and other wineries, introduced the idea of labeling wines using varietal
names rather than semi-generic names borrowed from European regions
("Burgundy", "Chablis", "Rhine", etc.).
•In 1956, convinced Almaden to plant the largest single planting in
history of varietal grapes in Paicines in San Benito County.
The Emergence of
Varietal Wines
“MR. PRODUCER: You have been selling most of the wine you make for
somewhere between 20 and 30 cents a gallon.
You will always sell some wine at such prices. But some of your wines are
better than others, and you should get a premium for these superior wines.
So we urge you to keep your superior varieties apart, to give special care to
such wines, to age them and bottle them yourself, and to sell them for what
they are worth.
You will be able to do so when the public comes to understand the meaning of
varietal names.”
1942
GAMIT Brands of the 1970s
In the 1980s,“Fighting Varietals” Introduced American
Consumers to Affordable California Varietal Wines
Wine’s Global Transformation
• For decades, wine has been going through a remarkable
transformation.
• The increase in American consumer demand for wine coincides
with the enormous breakthroughs in enological and viticultural
technology, improving quality.
• The emergence of varietal wines provided consumers with an
understandable “common language” for wine, boosting
consumption.
• The victory of California wines in the 1976 Paris tasting brought
world recognition to California wine.
• The quality bar rises every year - today California wines deliver
more quality at all price points than ever before.
California Wine Grape Crush, 1912 to 2008
Millions of Tons Crushed
3.5
3.0
Demand for Quality Wine
Has Driven Up the Crush
by Nearly Sixfold Since the
Early 1970s
2.5
2.0
1.5
1.0
Sources: California Department of Food & Agriculture.
2008
2004
2000
1996
1992
1988
1984
1980
1976
1972
1968
1964
1960
1956
1952
1948
1944
1940
1936
1932
1928
1924
1920
1916
0.0
1912
0.5
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1935 - Advocates legislation preserving sales at wineries, allowing for the development
of winery retail sales and tourism.
1949 - Adopts principles of good advertising practices, later published as Wine Institute
Code of Advertising Standards.
1982 - Starts Washington Week program bringing California vintners to the nation’s
capitol.
1984 - Congress passes the Wine Equity and Export Expansion Act to help reduce
barriers to trade abroad for American wines.
1985 - Wine Institute advocates for the passage of direct-to-consumer wine shipping
legislation in California, the first in the U.S.
1995 - The U.S. Dietary Guidelines acknowledge for the first time that moderate wine
and alcohol consumption can reduce the risk for heart disease for some individuals.
2001 - Wine Institute and the California Association of Winegrape Growers introduce
the California Code of Sustainable Winegrowing.
2005 - The U.S. Supreme Court rules “that states cannot ban out-of-state wineries from
shipping wine directly to consumers while allowing in-state wine producers to do so.”
2007 - Wine Institute partners with the California Travel and Tourism Commission on
national television to promote the state’s wine, food and travel offering.
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1935 - Advocates legislation preserving sales at wineries, allowing for the
development of winery retail sales and tourism.
1949 - Adopts principles of good advertising practices, later published as Wine Institute
Code of Advertising Standards.
1982 - Starts Washington Week program bringing California vintners to the nation’s
capitol.
1984 - Congress passes the Wine Equity and Export Expansion Act to help reduce
barriers to trade abroad for American wines.
1985 - Wine Institute advocates for the passage of direct-to-consumer wine shipping
legislation in California, the first in the U.S.
1995 - The U.S. Dietary Guidelines acknowledge for the first time that moderate wine
and alcohol consumption can reduce the risk for heart disease for some individuals.
2001 - Wine Institute and the California Association of Winegrape Growers introduce
the California Code of Sustainable Winegrowing.
2005 - The U.S. Supreme Court rules “that states cannot ban out-of-state wineries from
shipping wine directly to consumers while allowing in-state wine producers to do so.”
2007 - Wine Institute partners with the California Travel and Tourism Commission on
national television to promote the state’s wine, food and travel offering.
U.S. Wine Consumption Per Capita
2.5
2.5
Gallons of Wine Per Capita
2.1
Dessert & Other
Table Wine
2.0
1.5
2.0
2.0
1.3
0.9
1.0
0.9
0.7
0.5
0.3
0.0
1934 1940 1950 1960 1970 1980 1990 2000 2008
Sources: Wine Institute, GFA, Dept. of Census
The U.S. Wine Market, 1934 to 2008
2008 Industry Shipments Rose to 317 Million Cases
300
Millions of Cases Shipped
250
Wine Institute’s
75 Years
of Work200Helped Build the
U.S. into a 317 Million
150 Market in 2008
Case Wine
317
Million
Cases
100
50
0
34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08
Sources: Wine Institute, BATF, DOC. Includes bulk wines.
A Time to Celebrate
• Seventy-five years after the repeal of prohibition, the United States
is on the threshold of becoming the world's largest wine market.
• Wine Institute played a major role in this achievement, opening
markets, fighting taxes, opposing prohibition, and educating
consumers about the healthful benefits of moderate wine
consumption.
• The principles on which Wine Institute was founded have not
changed and neither have the challenges that confront it today.
• Just as those who forget history are condemned to repeat it, those
who remember history know full well just how much there is to
celebrate on an occasion such as this.
WINE INSTITUTE
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CELEBRATING
JH lxtÜá