In 2004, Tim O’Reilly popularized the term “Web 2.0.” According to Tim O’Reilly, “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform.[3] He went on to say, “Web 2.0″refers to the historical context of web businesses “coming back” after the 2001 collapse of the dot-com bubble, in addition to the distinguishing characteristics of the projects that survived the bust or thrived thereafter.[4]As we enter year three of federally legal hemp CBD, I am calling CBD 2.0.
I lived through the dot-com bubble having founded eSkye.com in 1999 as a B2B exchange for the alcohol industry. I then led through the transition from dot-com to Web 2.0 morphing eSkye.com into eSkye Solutions and shifting to become a SaaS software provider to the industry, at one point establishing it as the largest provider of dedicated software services to the wine industry. We also handled all the vendor managed pricing with Walmart, Walgreens, and other chains for many of the largest wine, spirits and beer companies in the world. I was also Chairman of Wine 2.0, which was a riff of the Web 2.0 movement to bringing technology and wine experiences together.
O’Reilly and Gary Vaynerchuk (winelibrary.tv and Vaynerchuk Media) joined us at the New York Wine 2.0 event that featured cutting edge wine start-ups and wineries, plus over 1,000 wine and tech lovers coinciding with O’Reilly Media’s Web 2.0 Expo.
This week, on Yahoo Finance, I characterized 2021 as “CBD 2.0.” as the beginning of a fundamental shift from the early “Wild West” days of the hemp CBD industry to a year that will lay foundation for national brands. Let me explain and see if you agree.
Pablo Zuanic, the well-regarded research analyst at Cantor Fitzgerald, put out several reports this week on the Cannabis and CBD markets and companies. As he points out:
“Macro view: our projections remain bullish for the next five years. Despite lackluster trends in 2020, partly COVID-related, and a slowdown pre-COVID in 2H19 – as lack of regulatory guidelines from the FDA prevented the FDM channel from adapting CBD a widely as had been expected, across formats and by all major retailers – projections remain quite constructive. Most estimates by the industry’s trade shops continue to forecast US CBD $ sales of $15-20Bn by 2024. The Brightfield Group projects sales of $15Bn by 2024, up from $4.2Bn in 2019. BDS Analytics projects sales of $20Bn by 2024, more than 10x the $1.9Bn in sales generated by the industry in 2018 (~50% CAGR), as per their estimates. BDSA estimates 63% of the $20Bn 2024 figures would be hemp-derived CBD and 37% marijuana-derived CBD. The current market split is as follows, according to BDS Analytics: ingestibles 47%, topicals 26%, inhalables 21%, pet products 3%, and 4% other (including pharmaceuticals). But as discussed below, without clear FDA guidelines and formal classification of CDB as a dietary supplement, the bulk of the FDM channel will stay reluctant to stock CBD products, and this will limit growth, in our view.”
He goes on to point out that without a major FDA/regulatory catalyst, it’s hard to see things improving rapidly from 2020. While I agree with his general assessment of the handful of public CBD companies he covers – cbdMD (YCBD/Neutral), Charlotte’s Web (CWBHF/Neutral) and CV Sciences (CVSI/Neutral)— I think those companies’ biggest issues are more related to the rising tide of other serious brands from mostly private companies but also new entrants. This new onslaught is much more sophisticated and include larger scale CPG brands than what the early CBD companies are used to competing against. Two such examples are Martha Stewart’s CBD Gummies launched by Canopy Growth and Molson Coors announced launch of their CBD beverage, TRUSS CBD in Colorado. This new crop of brand focused companies is leading the way and initiating the dawn of CBD 2.0.
Hemp CBD Early Days
In 2014, after years of grassroots efforts, Congress included an experimental program that allowed hemp to be legally grown in the US for the first time since 1937, provided it was attached to a University. 14 states ended up participating in the program. It was quite restrictive but a huge step forward for the industry. This was pre-CBD 1.0, a period of primitive CBD industry and initial consumer trials of the cannabinoid. During this time, there was a volatile) gray/illegal market for CBD with shady operators popping up all over brokering CBD from China and putting it into products with no testing, no truth in labeling and zero reliability. It was truly the “Wild West” and was common to have “brokers” claiming to have for sale or want to buy millions of dollars or liters of CBD, only to have them disappear when one actually tried to make a deal. It was a close cousin to the illegal cannabis industry with many of the same players participating in both.
I went to Washington DC to meet with congressional leadership in March 2018 to gauge the likelihood of expanding the hemp program nationally and of cannabis prohibition repeal overall. My impression was that full-on cannabis prohibition repeal still had meaningful opposition, but that hemp legalization could move quickly with bipartisan support.
My team jumped into it in 2018 growing 115 acres with partner farmers in Kentucky and establishing a hemp processing facility there as well. Just about everything that could go wrong did. The seeds were not great, the weather was terrible (wet when we needed dry and dry when we needed wet – “Welcome to farming,” they told me), our equipment kept breaking as most was not designed for the hemp plant, etc. Despite these challenges, we learned quickly and were able to lay the groundwork for what was to come.
Hemp CBD 1.0
Enter the Farm bill, which passed on a bipartisan basis and was signed into law in December 2018. This laid the foundation for a truly national, legal hemp industry, provided that each state set up a system and apply with the USDA. The excitement was palpable. It was a bit like a mini dot-com in terms numbers of start-ups, money flowing into the space, and news coverage. We bet heavily that the market would expand dramatically with legalization and committed to growing more than 1,800 acres of hemp with partner farms in KY and TN. We plowed millions of dollars into the production side of the business while at the same time putting a portfolio of brands together. We successfully launched our first brands into nearly 1,000 convenience stores in late 2018. It was a CBD “Gold Rush” with 100s of new “brands” appearing out of nowhere. Farmers switched to hemp production in mass, and $100s of millions of investments pumped into hemp processing operations. Big retailers began taking meetings with the anticipation of rolling out CBD products in 2019.
Between the Fall harvest of 2018 and 2019, the hemp growing, processing, and CBD ingredient side of the industry collapsed. In retrospect, perhaps it seems obvious that a frenzy of new investment and market participants in a brand-new industry would cause over-supply. Also, the proliferation of start-ups, populated with inexperienced business operators, caused plenty of issues. However, in a twist unforeseen by anyone but perhaps big pharma, the regulatory headwinds led by the US FDA threw a wrench in the momentum towards retail adoption. Their position was that CBD ingestibles are unsafe until proven otherwise, and therefore not permitted. This declaration caused most of the major retail outlets to cancel plans to bring CBD onto their shelves. (See my article in the Denver Post on this here)
The resulting destruction of value in the industry was swift and massive. Seven of the largest hemp processors who had raised over $400 million failed by February 2020 (pre-COVID lockdown). The largest, GenCanna, had a reported $2 billion deal to go public in the Fall of 2019, only to collapse into bankruptcy months later. I was 36 hours from a $700 million+ merger into a SPAC on NASDAQ when it unraveled in October 2019. We faced a collapsing market and a flight of investment capital. My team at Vertical Wellness took immediate action by cutting our costs and pivoting to a services business to help recover investor/creditor dollars from all these failed companies. In the end, we landed contracts to dry or process over 18 million pounds of hemp, making us profitable in 2020 during the pandemic. Given the retail environment, our brand launches were pushed into 2021, but we used the time and cash flow to prepare and make strategic acquisitions to be ready for what was to come. I share our rare success during a dismal time in the industry not to boast, but simply to inspire other entrepreneurs and demonstrate that being resilient and never giving up are essential qualities.
Entering CBD 2.0
In five years, we can look back and see if I called this too early, but something feels different to me. To be clear, I’m not suggesting good times are here immediately, but rather, we will soon be able to clearly see the path forward for a thriving cannabinoid industry. Here is my case that 2021 is the turning point for CBD.
1. Survivors: Only the strong survived the great destruction of CBD 1.0 – those of us remaining either pivoted, figured out how to make money, or emerged with new focus on execution.
2. Execution and Funding: The extreme loss of value has scared away many investors. This makes it a lot harder for new entrants to attain funding and for existing folks who are not executing to stay in the business.
3. State Permitted Ingestibles: In spite of the FDA inaccurate proclamation against the safety of CBD, consumer demand for health and wellness products has only grown. Fundamentally, consumers want natural alternative solutions (from Big Pharma drugs) to solve sleeplessness, anxiety, pain, and other ailments. Cannabinoids increasingly demonstrate their proper role in solving for this consumer demand. Just as in the overall THC-based Cannabis market, the States are leading the way in permitting ingestibles of CBD. This will accelerate in 2021. The states are driving permitted CBD consumption and consumer demand (it’s 47% of consumption nationally in spite of the FDA). Additionally, there are more studies coming out regularly, adding further lack of evidence of any harm caused by CBD. These factors and continued support from a growing bi-partisan group of lawmakers will eventually overcome big-Pharma’s grip over the FDA on this issue. I’m hopeful this can happen in 2021 but is not essential for my case for CBD 2.0.
4. Retailers Need for Growth: Retailers who are coming out of a crazy year of focusing on essential supplies or in other cases being shut down are looking for new ways to grow. CBD is back on top of their list of growth categories in which many are not yet participating.
5. Efficacy Matters: More and more companies and brands today are focused on the real impact CBD and other cannabinoids can have on people’s lives. Faster acting products with clear uses will lead the growth.
6. Real Brands: More legitimate, credible brands, not named “CBD this” or “CBD that,” are emerging. That would be like naming my new beer brand “Beer.” CBD is simply one of about 150 cannabinoids in the Cannabis plant that, when combined with the right balance of other ingredients (e.g. melatonin), can have tremendous efficacy in solving or alleviating real health and wellness ailments. Consumers want it, but they don’t know who or what to trust because of the lack of workable regulations and proliferation of unknown, unproven, generic brands. That is starting to change as premium brands are being backed by credible companies and honest leaders with proven track records. Our kathy ireland Health & Wellness® CBD solutions is a great example of this. Kathy is a recognized leader and advocate for women’s health. Our acquisition of The Organic Candy Factory is another. We are very excited to bring these to market.
As Tim O’Reilly once said, “Pursue something so important that even if you fail, the world is better off with you having tried.” I believe “CBD 2.0” is a worthy endeavor and indeed will make the world better off. I recently had my whole team read the late Tony Hsieh’s (former Zappos CEO) book Delivering Happiness: A Path to Profits, Passion, and Purpose. In it, Tony shares a plethora of stories where Zappos was at the brink of going out of business but found a way to persevere despite the odds. Had a small group of impassioned leaders not fought through those times, there never would have been a $1 billion exit. Many in the industry are in a similar moment. Those who show resilience and conviction will prevail. 2021 will prove to be the turning point in building a thriving, healthy industry that contributes to the societal good.
I recently read and shared an article in Forbes by Patrick Hanlon called, “Why Brands Must Evolve†that is so spot on that it has led to a number of interesting conversations in the past week with some of my clients and partners who own brands in beer, wine and spirits. As one who spends a lot of time thinking about new brands, as well as igniting established brands in new ways, Patrick’s thoughts really resonated with me. I don’t think there is a better industry than beverage to illustrate his points about what is going on with brands. Brand proliferation is happening across the board making “breaking through the clutter†ever more difficult. At the same time, the reason this is happening if fundamentally that there is demand for new brands. As I wrote in “RE: Is Craft Beer In A Bubbleâ€, there is a big and growing market for new brands in beer, but also in wine and spirits. Not everyone will succeed and in fact many new brands will fail. To the big brand manager, the fundamental challenge has also never been so big – how do you keep a loyal following when your following gets gigantic. I think about an Iconic brand like Patron Tequila. I was a distributor for Patron as it passed between different sales companies and was a very difficult sell. Five years from the time it launched, Patron was doing about 55,000 cases. Now that is a nice little brand, but nothing would have screamed, “This brand is on fire!†Then, it did catch on fire and became the very symbol of luxury. Check out Patron case sales for the first 10 years:
Patron is an amazing brand and continues to outsell all of the other super premium tequilas (and frankly all other spirits brands at $40/750ml bottle and higher). They have a huge and loyal following. However, as brand manager for Patron today, the things one has to do to market the brand are quite different than in the early years. How does one keep the “cool†factor going when you are the largest brand in your category. There are dozens of new entrants who are going after their market and have the advantage of being smaller (think Avion, Casamigos, Don Julio) and bringing a new “cool†factor to the market. Clearly there are many that succeed at this but being true to your brand and your audience while changing things up can be quite difficult. Absolut Vodka was THE luxury brand of the late 1980s and early 1990s. It was the “it†brand among the “it†crowd.
Pernod Ricard paid over $8 billion to acquire the brand a few years back. How does Pernod now manage a giant brand that was formerly the top luxury vodka in a market with such massive proliferation of brands that the high-end vodka category has experienced. I’m told there are 800 vodkas in the Beverage Media New York book. Pernod recently announced a new bottle. Absolut is one of those brands that defined itself by its bottle.  Changing the bottle is a big move even in subtle ways. Adding the big A is a pretty big move. Large companies don’t usually make big moves, but staying relevant in a crowded market sometimes requires big moves.    Pepsico made an even bigger move a few years back with their Gatorade brand. I thought at the time, it was fairly risky, but it appears to have paid off (does anyone know details?).
Patrick’s article certainly cites a number of great examples of big brands that have managed to evolve over time and keep or even build on their past successes. “…the challenge for brands has evolved from creating awareness to creating meaning.†How do you keep creating meaning at scale like Nike, Apple and Disney have successfully done.  They each connect to their consumers and continually create meaning.
The wine market has evolved so dramatically, that I have to look up many of the brands on the grocery shelf today and I have been involved in selling $100s of millions of wine over the years. Why? New brand proliferation to attract the millennial consumers.
Take a look at the top 10 domestic “Hot Brands†put out by Marvin Shanken’s Impact Databank:
Barefoot
Black Box
Bota Box
Liberty Creek
Boggle
Apothic
14 hands
Barefoot Refresh
Gnarly Head
Meiomi
Four of these are Gallo Brands, but none say Gallo. All have interesting, contemporary labels. To succeed in this hyper-competitive market, every brand must have a number of things. Great branding is vital, without it your brand is lost and has no chance. Great liquid that fits the taste of your target market is key, without it they won’t buy a second time. Distribution is essential, a brand cannot become relevant if consumers can’t find it. But how does a brand build a real following of consumers who care? That is, how do we create meaning? That is the question every new brand team needs to answer.
To quote Patrick again: “We want the added value of believing in something. The added value of belonging to something: being a part of something that hard-wires us to a larger community of “people like meâ€â€
Seth Godin in his fantastic book “Tribes†articulates this concept well.
“Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.†Brands have to figure out how to reach their tribes and how to engage with them. Notice, I did not say create their tribes. This is an important distinction. I believe tribes are discovered not created. Brands who overtly try to create one typically struggle. If a following is not organic, today’s savvy consumers sense it.  I think brands can make themselves relevant and worthy of a following and then as that following begins to show signs of life can play a role in fostering and accelerating it.
I’d love to hear your stories of brands you think are doing this right.
We are in full planning mode for the 10th Annual WITS… hard to believe that a few of us sat around brain storming ideas for a “technology extravaganza for the wine industry” almost 11 years ago. Â Please plan on joining us this year in Napa, CA as we celebrate a decade of WITS, for what promises to be our most exciting and well attended event. Â Here is the link to the press release and posted below as well.
10th Annual Wine Industry Technology Symposium to Unite Wine Business Leaders, Technology Experts on June 30 & July 1, 2014
(NAPA, Calif.)  —The 10th Annual Wine Industry Technology Symposium (WITS)®, the premier event showcasing the strategic use of information technology and services for the wine industry, has been set for June 30 – July 1, 2014 at the Napa Valley Marriott Hotel. www.wineindustrytechnologysymposium.com
Executives from wineries, distributors and retailers gather annually at WITS, the only annual conference designed exclusively to foster education and debate around the application of technology solutions for the wine industry. The 2014 WITS program includes:
Educational Tracks – Sessions on Technology Leadership, Small Business, Consumer Direct, Trade Sales & Marketing and Vineyard & Winery Operations
Speed Dating – To celebrate the 10th technology extravaganza, WITS has introduced “speed dating†for winery CIOs and technology companies. This will provide opportunities for quality one-on-one time with key decision makers and thought leaders.
Plus Beer, with BITS – WITS has united leaders in the craft brewing industry to add the first Beer Industry Technology Symposium (BITS™) that will run concurrent with WITS this year.
“In today’s rapidly changing business environment, where consumers are driving massive change throughout the industry, it is vital to get it right when it comes to your route to market, as well as the strategic and tactical use of enabling technology,†said J. Smoke Wallin, WITS Co-Chair. “WITS is the only place where winery owners and GMs can sit side by side for a day of learning and discussion with CIOs and other technology leaders from across the three tiers,†he added.
The WITS Steering Committee, comprised of technology and business leaders across the wine industry, is currently finalizing panel topics and keynote speakers. Past speakers have included the CEOs, CIOs and leaders from Amazon, Facebook, Groupon, garyvaynerchuk.com, FedEx Office, Nielsen and 1800-Flowers, as well as experts from IBM, Oracle, Cornell University, UC Davis, Sonoma State University and many others.
Attendees and sponsors are encouraged to register early, as space is limited and expected to sell out quickly. Registration will open March 1, 2014. For more information visit www.wineindustrytechnologysymposium.com.
About The Wine Industry Technology Symposium (WITS)
The Wine Industry Technology Symposium (WITS) was created to address the unique information technology and services needs of the wine industry. WITS is dedicated to bringing the world’s leading wineries, distributors and retailers together with the leading technology experts to foster learning and discussion. Expert panels and keynotes discuss leading edge case studies involving consumer direct marketing and sales, operations, financial management, trade sales and distribution, winemaking and vineyard management. www.wineindustrytechnologysymposium.com
For those of you who have followed this blog over the years, you will know that it was launched in 2005 when we first created WITS.  The 6th Wine Industry Technology Symposium promises to be our best ever.  Besides an action packed agenda of break out sessions with real take home value, I am very pleased with our two keynote speakers Michael Gelb and Abbey Klaassen. Both of these accomplished individuals represent what WITS is all about, innovation and how we can all adopt to the changing business environment in which we live.  I hope you choose to join me at this year’s conference.  It will be worth the effort.  See you in Napa!
Abbey Klaassen of Advertising Age to Deliver Keynote at
Wine Industry Technology Symposium in July
Register Now for Tech Summit
June 9, 2010, Napa, CA – Abbey Klaassen, Executive Editor of Advertising Age, a leading global source of news, intelligence and conversation for marketing and media communities will deliver the keynote speech at the sixth annual Wine Industry Technology Symposium (WITS)® July 13-14, 2010 at the Marriott Napa Valley.
Klaassen’s address, titled “Livingin a Post-Digital World,†will address consumer behavior and the resulting opportunities for businesses in this post-digital world. When every physical location is accompanied by a digital experience, social media increasingly becomes a reflection of real life. Interactive technology is like the air we breathe “so ubiquitous we often take it for granted.â€
Conference co-chair, Lesley Berglund said: “We were looking for a keynote speaker who could address the technology shift that has changed the way we do business. We wanted to go beyond networking tools and really take a look at the far reaching implications of our digital lives. We are thrilled to have Klassen sharing her perspective…â€
Best Selling Author Michael Gelb to Deliver One of the Keynotes
at Wine Industry Technology Symposium in July
Wine Drinking for Inspired Thinking - Gelb and Wallin at book release
Register Now for Tech Summit
June 22, 2010, Napa, CA – Michael Gelb, author of international best seller How to Think Like Leonardo Da Vinci, Innovate Like Edison: The Five-Step System for Breakthrough Business Success and Wine Drinking For Inspired Thinking: Uncork Your Creative Juices will deliver the keynote speech at the sixth annual Wine Industry Technology Symposium® (WITS) July 13-14, 2010 at the Marriott Napa Valley.
Gelb’s general session address, titled “How to Think Like Leonardo Da Vinci,†will discuss the application of genius thinking to personal and organizational development. Gelb is a pioneer in the fields of creative thinking, accelerated learning, and innovative leadership and has more than 30 years of experience as a professional speaker, seminar leader and organizational consultant.
Gelb will not only be one of the keynote speakers in the general session but will also be a speaker for the networking dinner being held at the Napa Marriott on Tuesday night, July 13th. His address, titled “Wine Drinking for Inspired Thinking: Uncork Your Creative Juices,†also the title of his book, will discuss expanding creativity through wine appreciation. Gelb’s book comes highly recommended by wine authorities such as Gary Vaynerchuk, Host of Wine Library TV and Robert Parker Jr., The Wine Advocate and others.
Conference co-chair, Smoke Wallin said: “Gelb’s message couldn’t be more timely. The wine industry is changing at a rapid pace which requires both owners and team members to find new ways to do business. We’re thrilled that we can offer both innovative technologies and a new perspective for applying them at the conference.â€
Online Registration Now Open
The Wine Industry Technology Symposium® (WITS), the premier industry event showcasing innovation and the strategic use of information technology, is now accepting online registrations for its fifth annual conference. The event will be held on July 13-14, 2010 at the Marriot Napa Valley. www.wineindustrytechnologysymposium.com
Early Bird Pricing Ends July 2
Tickets are available online before Friday July 3rd and at the “early bird†price of $100 for day one and $250 for day two, per guest. After July 4th, registrants pay the full price of $150 and $300, respectively. Full program details are available online.
About WITS
The Wine Industry Technology Symposium® (WITS) was created in 2005 by a group of wine industry and technology professionals. The purpose of WITS is to address the unique information technology and services needs of the wine industry. WITS is dedicated to bringing the world’s leading wineries, wholesalers and retailers together with some of the world’s leading technology experts to foster learning and discussion. Panels of experts will discuss specific examples and case studies. www.WineIndustryTechnologySymposium.com
#Â Â #Â Â #
Media Contact:
Lesley P. Berglund, co-chair, 707-246-6827
Pete Blackshaw of Nielsen on last year’s WITS conference:
My friend Liza has a nice piece in Winebusiness.com today on the Fall selling season. Reports from Nielsen, Bill Cascio at Glazer’s, Wilford Wong at Beverages and more! all point toward improvement over last year, though value driving business.
Yesterday, another Wine 2.0 friend, John Corcoran’s blog “Think Wine Marketing” had a well done piece on the state of marketing wine online with his interview of Paul Mabray. “A conversation about marketing wine online with Paul Mabray of VinTank” This interview captures nicely a bit of the history of the past decade of attempts at doing business online in the wine industry. It made me go back an search an old Information Week story (2000) on my then start-up eSkye.com. (ok, picture is almost 10 years old I know)
There has been nearly half a billion dollars ($500 million) in venture funding that has gone into various efforts in the the online wine space. In rereading this piece, it is amazing how much and how little has actually changed. Technology has leaped forward, enabling much greater communication and commerce capabilities for all. The regulatory and industry structure has bent, but not fundamentally changed. It will be very interesting to watch the impact of Web 2.0 technologies and social media on the way in which the industry operates going forward. Clearly, there is a constant march of producers and consumers to get closer together. Sometimes this is about discovery and information. Sometimes this is about commerce. Consumers feeling more connected to brand and having conversations with wineries and more importantly with their people (who make the brands what they are) is only accelerating. This has real world implications. Wine 2.0 is in the online connectivity business, but that drives our live events.  To wit, we are seeing a surge in interest in our Wine 2.0 New York event from both wineries and other companies involved in marketing to consumers. It will be interesting to see the consumer and trade turnout.
I’m looking forward to attending Web 2.0 Expo as well. It is great to get out of the wine business and look at what is cutting edge in terms of technology and latest developments.
Separately, Mashable’s blog just posted details on Web 2.0 Expo and our event Wine 2.0 Expo New York.
Outlook Seems Upbeat as the Market Heads into the Final Stretch
by Liza B. Zimmerman
WineBusiness.com
Feedback from retailers, restaurateurs and wholesalers has grown increasingly positive as we move into the last part of the fourth quarter. Many seem to believe that this year is finally turning out to be more dynamic than last. According to data from a Nielsen presentation earlier this month wine was the No. 5-ranked category of the top 15 of the major 125 segments that Nielsen tracks with a 5.1 percent volume growth in the period ending September 5, 2009 over the previous year.
“Our volumes are up in total wines, about three to four percent in all states,†said Bill Cascio, the San Francisco Bay Area-based vice president and director of winery relations for the Dallas-based Glazer’s Family of Companies, which is active in 12 states. “It is shaping up to be a little bit better than last year,†he concluded.
Wilfred Wong, cellar master for the 100-store, Concord-California based Beverages and more!, said that this year is drastically different from the previous. “Last year this time business really dropped off,†concurred Brahm Callahan, wine director at Post 390, a gastropub that is part of the three-restaurant Himmel Hospitality Group which opened in Boston early this month [ed: Oct]. Callahan has a long track record in the Boston restaurant business. “We are starting to see people want to spend more money but they want to see perceived value.†Post 390’s 5,000-bottle list, priced $25 to $600, features two thirds of its selections in the $20 to $80 price range…
I just saw this report which points out what many of us have known for some time, that NY has a thriving wine industry. I thought it worth highlighting as we have a handful of NY based wine companies (some producers, some importers) joining our many other fantastic wines from CA and around the world at Wine 2.0 New York Nov 18.
Wine 2.0 New York - Invite
Here is a partial list: Bouke’
Dr Frank’s Vinifera
Fox Run Vineyards
Hudson Valley Wine Country
Hudson Chatham Winery
Milbrook Vineyards and Winery
Palaia Vineyard
Whitecliff Vineyard and Winery
Pasternak International
Palm Bay Imports
New York Wine industry booming
Source: Rocnow
Tom Tobin
November 7, 2009
Sour economy aside, New York’s wine industry – centered in the Finger Lakes – continues to sweeten.
New wineries are sprouting around the state, investments are growing and visits by tourists and wine lovers have increased by 21 percent since 2003, despite the recession, record gasoline prices in 2008 and rising prices again this year.
A survey by the National Agricultural Statistics Service, part of the U.S. Department of Agriculture, found that the state wine industry not only has weathered the recession but has exploded in size, to 240 wineries.
More wineries have opened around the state since 2000 than in the previous 170 years, the survey said. And the expansion is unabated.
“In the seven months since the surveys were mailed in March, 33 new wineries have been licensed, bringing the state total to 273,” said Jim Trezise, president of the New York Wine and Grape Foundation, which commissioned the government survey.
The Finger Lakes region, with 104 wineries, has the largest share. Long Island, the Hudson Valley and the Lake Erie region are considered the other centers of the industry.
But, Trezise said, “What’s most remarkable is that the strongest growth has been outside of the traditional wine regions. The Thousand Islands, the Champlain region and even New York City now have wineries.”
A separate study of the wine industry’s economic impact may be released this winter. The last such study said the industry had a $3.4 billion impact in 2004.
J. Smoke Wallin, Chairman of Wine 2.0, had the opportunity to interview filmmaker Carla De Luca Worfolk, Director, EP/Producer, and Writer of an amazing new wine film. Carla is an Emmy award-winning television and documentary producer. Her new DOCUMENTRY FILM ‘AMERICA’S WINE: THE LEGACY OF PROHIBITION’ is an amazing look at the history of the wine industry in America. I had the opportunity recently to ask Carla some questions about her experience making the film. Let us know your thoughts.
Smoke: Carla, what inspired you to make “America’s Wine: The Legacy of Prohibition�
Carla: I had the opportunity to film the private luncheon celebrating the 70th Anniversary of Prohibition’s Repeal where a number of the venerable winemakers were honored. As several were in their 80s and 90s, I began thinking about their contributions and personal histories, and felt strongly that their story should be recorded before the passing of this generation. I also believed we should cover major policy issues which affect all consumers, such as direct shipping laws, health research, and the globalization of wine.
Smoke: Can you tell us a little about your experience growing up in and around the wine industry?
Carla: My father became President and CEO of the Wine Institute when I was about nine years old, which seemed very natural to me. Being part of a large Italian-American family, my parents and grandparents often had wine with their meals. The best part has always been meeting the people. I have very fond memories of visiting wine makers and their families, playing in the vineyards and sharing meals all through the years.
Smoke: What was your biggest surprise while putting this project together?
Carla: The biggest surprise was learning about how the boom in home winemaking in the early 20s created such an incredible demand for fresh grapes. I also marveled at all of the ingenious ways winemakers stayed in the business during Prohibition and recovered after Repeal. On a deeper level, these aspects really underlined for me the incredible optimism and determination of the wine makers and also immigrants who overcame great obstacles during that era, including Constitutional barriers.
Smoke: Besides our interview, who was your favorite interview and why?
Carla: Besides our interview, that’s truly a tough question. We interviewed remarkable people and had great experiences across the board. Because it was such a unique experience, our meeting with Brother Timothy has stayed especially vivid for me. He invited us to spend the day with him at his residence on Mont La Salle above Napa Valley. At age 93, he had difficulty walking, but he graciously hosted us all day, answering our questions and sharing other reflections with such brilliance and clarity. Over lunch we talked about everything from Prohibition to the Internet. He was an amazing individual.
Smoke: It seems you had all tiers cooperate in the making the film, who did you want to get involved by would not and why?
Carla: Actually, nearly everyone we asked for an interview accepted. A couple of people declined, mainly due to logistical reasons. We did hope to have a few critics of the wine industry, but in the end we felt very pleased that we had such credible credentialed people, and a number from outside the wine community, like Kevin Starr, Leon Panetta, Marion Nestle and Phil Lee, who gave us balanced comments.
Smoke: The cast of characters who did interviews was amazing. A number of these industry titans are no longer with us. Can you comment on the timing of putting the film together as it relates to this?
Carla: We really felt like time was of the essence, knowing that a number of the people we wanted to capture on camera were at an advanced age. Several had not been interviewed in their later years and some had never been interviewed on camera. Recognizing this was one of the driving forces of the documentary, impacting our research and how we managed our schedule. We are extremely fortunate we were able to record them when we did.
Smoke: What can you tell the Wine 2.0 members “behind the scenes� Any cool stories?
Carla: There were a lot of memorable moments, from 95 year old Dan Turrentine serving us his favorite drink besides wine, Dr. Pepper, to Tom Shelton surprising us after the interview with a complimentary tasting of some of Joseph Phelps’s finest wines. We also were very lucky after a camera failure which obliterated most of Kevin Starr’s first interview. We caught the problem just as we were packing up to leave. He graciously cleared the rest of his afternoon schedule to redo the interview. He was equally, if not more brilliant, the second time.
Smoke: I’m sure you had tough choices to make in putting the final cut together. What did not make the film?
Carla: It truly wasn’t easy to make choices and it took several months. In the end, we couldn’t include everyone we interviewed in the final film, but all of the interviews will become part of the Bancroft Library’s California Wine Industry collection. Also, believe it or not, we actually collected more than 3,000 still images, but only used 300 images in the final cut.
Smoke: What’s next for the film? Festivals? TV?
Carla: We just had a great premiere evening at the Napa Sonoma Wine Country Film Festival at the end of September. We’ve also received terrific awards – the Gold Kahuna Award, which is the top prize in the Documentary Competition at the Honolulu International Film Festival, and the Silver Ace Award for Outstanding Filmmaking from the Las Vegas Film Festival. Currently we’re focussed on outlining an edited-for-television version for national broadcast, and I’m glad to say there is strong interest. We’ll be keeping everyone updated on this and future screenings through the Bancroft Library’s website.
About Carla De Luca Worfolk, Director, EP/Producer, and Writer Carla De Luca Worfolk, an Emmy award-winning television and documentary producer, has enjoyed an extensive career across media, gravitating towards highly creative assignments with an emphasis on education, public service and policy. Throughout her career, the San Francisco Bay Area native has worked as an independent producer, magazine editor, writer, public relations executive, and paralegal. She holds a Bachelor of Arts degree with honors from Santa Clara University, and a Master of Journalism degree from the University of California at Berkeley. During her years as a CNN producer in Atlanta, Worfolk supervised content for the highly-rated CNN Saturday/Sunday Morning program, a live, two-hour magazine show, and was also on the Emmy-winning team that covered the Olympic Park Bombing in 1996. America’s Wine: The Legacy of Prohibition is her first independent film.
 
About Carla De Luca Worfolk, Director, EP/Producer, and Writer