BUSINESS OF WINE
From boomers to zoomers—why the wine industry must convert younger drinkers The wine youth movement
Inside: A look at Sonoma Clean Power after ’10 Electric Years’
Business of Wine 2025
$4.95
BUSINESS VISA ® PLATINUM
Better for business
Earn cash back on every purchase.
It’s time to make your purchasing pay o . Earn cash back rewards on all your business expenses with the RCU Business Visa® Platinum card.*
Then save money with: Low Rates No Annual Fee
No Balance Transfer Fees
Get started at redwoodcu.org/business-visa
*Rates e ective April 7, 2025. All rates, terms and special o ers subject to change. Cash advance transactions and balance transfers are excluded from earning points. Foreign transaction fee of 1% of each transaction made in foreign currency and converted to U.S. dollars. Certain restrictions apply.
Custom Cabinetry by Trinity Engineering
Our roots run deep in this community. Our founder Bruce Omholt moved Trinity Engineering from Grand Rapids Michigan to Rohnert Park in 1981. For 45 years the team at Trinity Engineering has worked to exceed our client’s expectations of quality, value, and service. Our principal goal continues to be building strong client relationships. As a trusted team partner, Trinity Engineering is dedicated to the success of every project. Through Trinity Engineering’s rich and diverse history our market base has gone through significant changes. We have met those challenges head on and refused to be limited or categorized as a company. As with most businesses that enjoy long term success, we have evolved and adapted to the market’s needs. We understand the importance of clear communication and work closely with contractors, architects, and designers to lay the ground work that will change ideas and concepts into reality. Trinity continues to be a single source for integrated projects that require more than basic millwork. Our team’s experience with metal fabrication, glass, plastics, lighting, and finishing enables us to control entire scopes of work under one roof. We have built projects coast to coast and internationally but our local portfolio is what keeps us nested in this incredible region. Throughout the North Bay we have had the privilege to showcase our work in illustrious wineries, gourmet restaurants, esteemed hotels, elite retail establishments, and spectacular dream homes.
Local, national and international experience since 1980 Call for a beautiful and seamless conclusion to your project. 707.585.2959 • trinityengineering.com
POWERING YOUR BUSINESS
Expert Commercial Solutions in HVAC, Plumbing, Electrical, and Solar. Unlock the full potential of your business with our comprehensive suite of commercial services. From planning, installation, and maintenance, to ensuring efficient energy usage, we’ve got you covered. Our team of experts specializes in solutions tailored to meet your specific needs. With over 90 years of experience in the North Bay, and a 100% Satisfaction Guarantee, Ongaro & Sons is here to optimize your workspace for success.
(707) 361-7456 ONGAROANDSONS.COM LICENSE #215233
Trust us to keep your business running smoothly, reliably, and sustainably.
MAY 2025 • Volume 50 • Number 5 CONTENTS
50 YEARS OF BUSINESS INTELLIGENCE
20
LEAD STORY 20 Wine Report 2025 Jason Walsh A look at Rob McMillan’s annual Silicon Valley Bank state of the wine industry 45 Sponsored Special Section: Sonoma Clean Power Cerrissa Kim, Mallorie Deming, Janet Perry and Jason Walsh Our local clean-energy provider celebrates ’10 electric years’
WORK/LIFE 15 Wine 16 Tariffs FEATURE STORIES 26 The World’s Oldest Wine Emily Fair Weber Sonoma County winemaker is bringing the palm wines of West Africa to a shelf near you 32 Special Report: The Disaster Sessions Vicki Larson North Bay mental health providers are focusing on disaster trauma 45 Special Report: Citizen Lowe Bill Meagher The downfall of former Mill Valley movie-viewing mogul Mitch Lowe
May 2025
NorthBaybiz 5
56
60
54
31
DEPARTMENTS 12 The 707
COLUMNS 11
Publisher’s Forum Lawrence Amaturo Shout out to our local wine rock stars
The latest news from Sonoma and Napa counties
13
19
The 415 The latest news from Marin County
Only In Marin
Bill Meagher
Point Reyes Ranching, adieu
17
25
The Month In Numbers A look at the key figures shaping life in the North Bay
Vine Wise Adam Lee Say you want a wine revolution?
54
31
Great Tastes Alexandra Russell Bella Union Winery in St. Helena Dine Wise Jason Walsh Cyrus in Geyserville What’s Happening Upcoming North Bay events
Napa Insider Christina Julian BottleRock pours its musical blend once again
56
43
Tech Talk
Michael E. Duffy
Vibe coding for the masses!
59
53
Econ 101 Robert Eyler The economic effects of North Bay visitors
64
58
On the Move Comings and goings in the business community
In the Kitchen
John Ash
A Baja classic—fish tacos
65
Biz Scene Petaluma Butter & Egg Days
66
Beyond the Boardroom Rosie Padilla Hank Wetzel, of Alexander Valley Vineyards
/northbaybiz
/northbaybiz
@northbaybiz
NorthBay biz (ISSN No. 1542-3549: USPS 097-770) is owned and published monthly (plus three bonus issues annually) by North Bay Media Group, LLC. Editorial offices are at 3392 Mendocino Ave., Santa Rosa, CA 95403 USA: (707) 528-4434. Sub- scription price is $35 per year. Periodicals Postage Paid at Santa Rosa, CA 95402 and at additional mailing offices. Copyright 2022, NorthBay biz. Reproduction of this issue in whole or in part is strictly forbidden without written permission by the publisher. POSTMASTER: Send address changes to NorthBay biz, 3392 Mendocino Ave., Santa Rosa, CA 95403 USA.
Printed by Publication Printers Corp., an FSC Certified printer. Please recycle this magazine.
6 NorthBaybiz
May 2025
THE BEST IN WINE COUNTRY GOLF u
Book your tee time now! Go to windsorgolf.com • 707-838-7888 13320 19th Hole Dr. • Windsor, CA
A LEADING DIGITAL MARKETING AGENCY DEDICATED TO PROPELLING BUSINESSES TO ONLINE SUCCESS.
Celebrating 50 Years
Publisher
Lawrence Amaturo
Editor-in-Chief
Jason Walsh
Associate Editor
Rosie Padilla
Contributing Editor
Bill Meagher
Design Director
Anne Schenk
Administrative Assistant
Jodi Pasquini
Marketing Consultant
Lori Rooney
Writers Bill Meagher Cerrissa Kim Emily Fair Weber Janet Perry Jason Walsh Mallorie Deming
Why Choose Waterdrop Digital: • Innovation: We stay current with digital trends to offer cutting-edge solutions. • Results: Our data-driven approach maximizes your ROI. • Dedication: Our passionate team is committed to your success. • Client-Centric: We tailor strategies to your unique goals and audience. Choose Waterdrop Digital. Your partner in digital success.
Rosie Padilla Vicki Larson
Columnists Adam Lee Alexandra Russell Bill Meagher Christina Julian Jason Walsh Lawrence Amaturo John Ash Michael E. Duffy Robert Eyler
We specialize in SEO, PPC advertising, content marketing, email marketing, web design and more. Our results-driven team combines innovation and strategy to keep you ahead of the competition.
Photographers Ron Pawlowski
Helping grow your business isn’t just something we do .... it’s all we do!
Call us at 707-284-9176 or visit waterdropdigital.com
8 NorthBaybiz
May 2025
Books ArePortable Magic Remember being read to as a child? M y mother read aloud to me, and one of my favorite books was Charlotte’s Web by E.B. White. But what I remember most was the sound of her voice, the rhythm of the words and what it felt like leaning into her, while she read aloud to me. The pages of those books she read transported us to faraway places—real and imaginary—and taught me about life and oPened my mitnd to all the possibilities. So when I became a mother, I began reading to my kids. And now I’m reading to my grandchildren every chance I get. As for my mom, now a great-grandmother, she still takes great joy in reading to the kids whenever she visits. Remember to take time every chance you get—eat, play, read. Reading helps build language and thinking skills, develops a child’s imagination and empathy for others, achieve better in school, and it’s a great way to spend time together. And best of all, reading aloud to your child makes memories that will stay with you for a lifetime. That’s what my mother was doing years ago when she took the time to read aloud to me.
“For more than 40 years, we’ve protected people from the elements. Now it’s time to help our kids in the community.” — Barbie Simpson, Owner and President
Read on Sonoma!
Celebrating more than 40 years as a family owned business. Our team is here to meet all of your HVAC needs.
Put Your Trust In Us
707-576-150 • www.simpsonsheetmetal.com • Santa Rosa, CA
Publisher’s Forum
‘Go time’ for the wine industry— and a no-go for SSU cuts
By Lawrence Amaturo
T his is “go time” for our thousands upon thousands of wine-industry folks throughout the North Bay. Together, they have helped build one of America's most successful and well-regarded Industries in the entire world. And this regard has been rightfully earned— billions of dollars of capital value has been created within our counties. Winemakers are referred to as rock stars and are provided that same sticky sweet reverence by complete strangers who fawn over them to breathe the same air and hope for a passing smile. (Please don't take this as a personal gripe, Dan Kosta.... it's more like jealousy!) The truth is that this respect, in many cases, is rightfully earned. "New World" wine, as you'll see it noted on the wine lists of some of New York's, Chicago's and Paris' finest restaurants, has become the gold standard for taste, quality and consistency. Longtime North Bay farmers have made this all possible. And so have former geologists with a knowledge of the North Bay's amazing soil, former bankers with cash to burn, and adventurous entrepreneurs with a dream to earn that same rock-star status Dan Kosta has without ever taking a music lesson. Each has assembled our workforce to develop thousands of wineries, thousands of brands and hundreds of thousands of talented employees to build one of our most important industries. Yet Gen Z isn't quite embracing all the ceremony and celebration this industry has built around mealtime. I see this within my own family as I watch my children, now 22, ignore the notion that their meal is somehow complemented by drinking wine alongside it. There is zero discussion behind the idea of pairing a meal with the spectrum of grape varietals we farm and produce in each of our North Bay counties. “Go time” isn't a phrase to suggest we need to abandon this industry. And, yes, there are massive health and societal benefits to living alcohol-free. Drinking responsibly, however, does hold a respectable place in our communities—and today's wine industry leaders must find the right approach to steel this notion among the next generation of drinking-age consumers. The industry's very survival depends on it. Our Wine Issue covers this and more. I'm thankful to Jason Walsh and his team’s coverage as they navigate to learn what's next in the industry. Here’s a “taste” of the pages ahead: Wine Report for Dummies: The Silicon Valley Bank State of the U.S. Wine Industry, written by Rob McMillan, is an annual report closely watched in the wine industry—it’s respected as a “must read” for both those in the business and wine lovers who want to see the industry flourish. The key takeaway for 2025 is the demographic shift from older drinkers (boomers are sunsetting, he writes) to younger drinkers, who aren’t necessarily into wine as much as other alcohols (or no alcohol at all). The industry must prove to young
drinkers why they should become oenophiles—starting now. Say You Want a Revolution? Our Vine Wise columnist Adam Lee looks back at the French Wine Revolt of 1907 and argues for a similar coalescing of wine-business groups to help further the collective interests of an industry facing major headwinds. The World’s Oldest Wine: Palm wine has been traced to the Pharaohs, but this sap-derived delight is virtually unknown in the U.S. Enter: Onye Ahanotu. A Sonoma County native (Rancho Cotate grad) who’s launched Ikenga Wines to bring the flavors of his ancestral Nigerian wine to California Wine Country. The only catch: The palm sap ferments instantly upon extraction, making bottling nearly impossible. Find out why Ahanotu is so determined to realize his dreams of marketing palm wines—and catching lightning in a bottle. SSU update Let me use this page to thank those who have personally reached out to join me in our efforts to uphold Sonoma State University's prominence as an academic body. Recent announcements to eliminate dozens of majors and the entirety of its NCAA Division II sports programs strike many—nearly everyone, in fact—as a short-sighted and, we believe, potentially fatal decision for the institution. And the solution to the school's $24 million budget deficit may likely be found elsewhere within the school's more than $230 million annual budget. Meanwhile, the school's administrative costs have skyrocketed even while enrollment has fallen by 38% since 2015. Sonoma State has the second-highest payroll and benefits expenditure for administrators, totaling $34 million, despite having the second-lowest enrollment (5,873) among all CSUs, according to SSU golf coach Val Verhunce and financial advisor Josh Sterling, who have helped put together a proposal to save SSU athletics. Interim President Emily Cutrer, when asked about why administrators were not taking a pay cut to help reduce the school's deficit, replied that she did not want to "set a bad precedent." Let me be clear: Dr Cutrer, eliminating dozens of majors, all of your sports programs and eroding the very school spirit that has been a part of SSU for decades "sets a bad precedent," too! g
But maybe I've got this all wrong!?! Share your points of view with me at LAmaturo@ MySonomaMedia.com
May 2025
NorthBaybiz 11
The 707
Napa Valley luxury wines hitch wagon to country music academy Nothing says “country music” quite like a bottle of 2019 Sonoma Cutrer Grand Brut Rose. At least it will soon, as the Academy of Country Music last month announced its “official wine partnership” with St. Helena-based Duckhorn wines. The Duckhorn Portfolio focuses on luxury wines—with 11 wineries, 10 winemaking facilities, eight tasting rooms and over 2,000 vineyard acres across 38 properties. The portfolio’s Duckhorn Vineyards, Decoy and Sonoma-Cutrer will be featured at this year’s academy events. The academy’s premier 2025 event will be the 60th ACM Awards, taking place May 8 at Ford Center at The Star in Frisco, Texas. This year’s awards show is hosted by Reba McEntire. Duckhorn CEO Robert Hanson said he’s particularly excited to begin the three-year partnership with ACM during its milestone 60th anniversary. “Country music holds an important place in the hearts of many of our customers, and just like great wine, it has a powerful way of bringing people together,” said Hanson in an announcement about the partnership. Duckhorn, meanwhile, toasts a milestone anniversary next year, when the company celebrates the 50th year since Dan and Margaret Duckhorn founded Napa Valley’s Duckhorn Vineyards in 1976. Visit duckhornportfolio.com. — NBb
Sonoma County again issuing well permits, for now The County of Sonoma got a splash of good news last month when a state court of appeals granted the county’s request for a temporary stay in its legal battle over new well permits. The county can once again issue non-emergency water well permits while the stay is in place. Last fall, in the case of Russian Riverkeeper & California Coastkeeper vs. County of Sonoma, a Sonoma County Superior Court judge struck down amendments the county made to its well ordinance, saying the county overstepped its discretion and the changes were in violation of state environmental law. County officials argue the amendments are more protective of natural resourcest than the prior well ordinance, therefore are exempt from California Environmental Quality Act review. “The county believes the court’s order is flawed, requires more of the county than is legally required, ignored the environmental benefits created by the amendments, and ultimately provides no clear map for how to defensibly amend its well ordinance in the future,” county officials said in a press statement. The county is currently appealing the superior court decision.— NBb
Castle-style winery in Napa served hundreds of thousands more guests than allowed
They’re storming the castle gates, 21st-century style. That’s been the situation at Castello di Amorosa, the castle- like winery near Calistoga, which served over 400,000 people in 2019, far more than the 25,000 annual guests its county-issued permit allows, according to the Santa Rosa Press Democrat . The higher-than-allowed volume of service has resulted in an array of permit violations. The winery’s 1,600% overrun in visitors was addressed last month by Napa County officials, who agreed to allow the winery to apply for a retroactive permit change, bringing its permitted guests into the hundreds of thousands, while requiring the winery to upgrade safety conditions related to building occupancy and water, the PD reported.— NBb
12 NorthBaybiz
May 2025
The 415
Marin looks to curb kids on e-bikes
Marin County kids might have to park their e-bikes for a few years. At least that’s the plan under review by the Marin County Board of Supervisors, which is considering an ordinance making it illegal for children under 16 to operate a Class 2 e-bike in unincorporated Marin. The regulation would also require riders of all ages to wear helmets on those e-bikes, which can travel up to 20 mph. According to county officials, the e-bike accident rate in Marin County for 10- to 15-year-olds is five times higher than for all other age groups according to Marin 911 data, statistics which mirror national trends. If the supervisors move forward, the ordinance would take effect July 1. Marin’s cities and towns will consider similar ordinances over the next few months with the same July 1 effective date to provide consistency across Marin, according to county officials.
According to data provided by the county, from 2019 to 2022, 911 calls in Marin related to all bikes rose 110% among school-aged youth. In fall 2023, Marin County Public Health began collecting data on 911 responses to e-bike injuries. The data shows the e-bike accident rate for 10- to 15-year-olds is five times higher than for all other age groups. On conventional bikes, the same group has a 1.5 times higher accident rate than other age groups. For information, visit marincounty.gov. — JW
“Blue Turns to Grey” was a deep-cut Rolling Stones song from the mid-‘60s, but these days could serve as a fitting theme to the Marin County Civic Center’s iconic blue roof, which “has been concealed by a layer of encrusted dust and dirt, giving it a pale gray color,” according to Marin County officials. The county this summer is having the roof cleaned for the first time since a new membrane material was applied to the roof in 2020. The roof will soon return to its original “Marin blue” color, the county announced in a press release. Built more than 60 years ago, the 470,168-square-foot Civic Center is the largest completed public project that architect Frank Lloyd Wright designed and is listed in the National Register of Historic Places. The project to clean the roof and make minor repairs will be put to public bid and is expected to have the contract awarded by the Marin County Board of Supervisors in June. The actual cleaning is anticipated to begin in August and take about two months. “Due to the uniqueness of the building and the special material of Grey civic center roof returning to ‘Marin blue’
the roof, there is not a standardized process for the planned work,” the county said. Marin public works staff estimates the project may cost $1.5 million.— NBb staff
The North Bay population is on the rise, albeit modestly. Following multiple years of population decline, the latest numbers from the U.S. Census Bureau show a slight rebound in local residents. From July 1, 2023 to July 1, 2024, Marin County gained 2,007 people, or .78%; Sonoma County gained 3,563 people, or .74%, while Napa County has declined in population by 489, or .36%. The overall gain in the three-county area comes to an increase of 5,081. Despite the small increases last year, local populations still haven’t recovered from their pre- pandemic highs when Marin, Sonoma and Napa counties boasted totals of 262,321, 488,863 and 138,019, respectively, for a total of 889,203 in 2020, or 14,701 more than the population today. That said, the population growth in the North Bay mirrors nationwide trends, in which 90% of metro areas across the U.S. saw gains, leading to an overall metro growth of 1.1%. According to the Census Bureau, the gains are largely down to increases in international migration. “While births continue to contribute to overall growth, rising net international migration is offsetting the ongoing net domestic outmigration we see in many of these areas,” said Kristie Wilder, a demographer in the Census Bureau’s Population Division. For more information, visit census.gov .— JW Marin population rebound mirrors national trends
May 2025
NorthBaybiz 13
Work/Life/ Wine
Will tariffs sour the local wine industry? up for the rising costs of production. In any event, one thing’s clear. The U.S. purchases a lot more wine from Europe than the Old World buys from us. According to data from Eurostat— as reflected in the accompanying graph from statista.com —U.S. buyers By Jason Walsh imported more than 5 million hectoliters from Italy and France between 2022 and 2023, equating to about $4.5 billion. That’s compared to Europe’s five biggest wine- producing countries, which imported about 300,000 hectoliters from the U.S.
C anada loves American wine. That’s no overstatement—the nation of 40 million to the north spends about $1.1 billion annually on U.S. wine, much of it from Northern California wine country. Unfortunately for the local wine industry, that dollar amount will be a lot closer to zero for 2025 if the Trump administration’s tariff policy holds steady, as Canadian provinces have enacted boycotts across the board of U.S.-made alcohol in response to a potential levy of 25%. The Great White North stuffing a collective cork into its American wine
habit comes at a particularly poor time for the U.S. industry, as even
Americans are scaling down their alcohol consumption. According to SipSource, which tracks trends on behalf of the Wine & Spirits Wholesalers of America, U.S. wine sales were down about 2.4% year over year through the first half of 2024. It’s not only Canada affecting sales. Many wineries import bottles from China, which will be subject to tariffs potentially as high as 145%. Compound that with possible 10-20% tariffs on French oak barrels and corks from Portugal and Spain, and already struggling local wineries will be squeezed even further. How much of these costs can be offset by increased domestic sales—the tariffs are intended to provide a cost advantage for American wines sold within the U.S.— remains to be seen, especially if they lose that advantage by raising prices to make
May 2025
NorthBaybiz 15
Work/Life/ Tariffs
By Jason Walsh Tariffs, a taxing history
S o much has been made in recent months about the Trump administration’s on-again, off-again tariffs that the nation’s minds (and businesses’ financial projections) are spinning faster than your 401k balance. While headlines have focused on specific percentages on specific goods from specific countries (25% on autos from Japan, for instance), reporting has often overlooked the concept of tariffs from a broader perspective through American history. A tariff is a duty (i.e. tax) on imports. Paid by the importing country, a tariff can raise federal revenue, as well as encourage the purchase of domestic-made goods (i.e. so one can avoid paying the tariff on imports)—potentially increasing domestic manufacturing and creating jobs. On the other hand, by discouraging import trade by making it more expensive, tariffs can also increase the price of goods due to scarcity of supply and/or the passing of the cost of the tax on to consumers. They can also make investors jittery, as we’ve seen from the recent roller coaster-level instability of global markets. Tariffs are also used as bargaining chips—for instance, as CNBC points out, in 1875 the U.S. signed a free-trade agreement with the Kingdon of Hawaii in exchange for the exclusive use of a port that would become known as Pearl Harbor. (This use of tariffs seems to be a motivating factor for the Trump administration; it remains to be seen how it all plays out.)
The word tariff—similar to “ta’rif,” Arabic for inventory— dates back in English usage to the 16th century. In the U.S.’s nascent years, George Washington signed the Tariff Act of 1789, just the second act ever passed by an American congress; that 5% levy on imports was needed to fund the government, as income taxes were still 124 years off. By the 20th century, tariffs had largely fallen out of favor, as other forms of government funding and taxation filled federal coffers, and freer- flowing international trade was encouraged at a time of the U.S.’s fast-growing economic expansion during the post-Industrial Revolution. Tariffs took another black eye in the wake of the stock market crash of 1929, when the Smoot-Hawley Act (remember that one from history class?) hiked import duties by 20% in an effort to promote the domestic purchase of American farm products during the economic downturn. When European countries responded to Smoot- Hawley with reciprocal tariffs on the U.S., trade plummeted by more than 60% furthering the spiral into the Great Depression. As the U.S. emerged from World War II as the world’s lone economic superpower, tariffs decreased again, as economists favored a model of free trade to encourage economic activity across borders—a model that’s remained relatively untested until now. As actress Bette Davis famously observed, “Fasten your seatbelts…”
Rep. Willis C. Hawley, left, and Sen. Reed Smoot co-sponsored the 1930 tariff bill, considered one of the worst pieces of legislation ever passed. [Library of Congress]
The Three R’s Tariff policy typically adheres to a model known as the Three R’s—revenue, restriction and reciprocity. Throughout American history, tariffs have been established primarily with one of these three goals in mind. n Revenue: Taxing imports to raise federal revenue—this was the primary purpose in the early days of the United States, when few other avenues existed to bring in cash. n Restriction: Increasing the duty on imports renders them less attractive to buyers and therefore restricts import supply and strengthens domestic production. (This can also increase the price of goods for consumers.) n Reciprocity: When one country raises a tariff, and the affected country raises there’s likewise in return. This can also work as a bargaining chip to lower tariffs or reach other agreements.
16 NorthBaybiz
May 2025
A look at the key figures shaping life in the North Bay The Month In Numbers
Sonoma County
Chicken wings come home to roost
100 Number of Hooters restaurants (out of 420 worldwide) to be sold off following the Chapter 11 bankruptcy of HOA Restaurant Group, the latest casual dining restaurant chain to file for such protection following TGI Fridays, Red Lobster and others. Hooters has over the years settled several discrimination lawsuits, including a $250,000 payout in 2024 following legal action by the U.S. Equal Employment Opportunity Commission.
1 Number of Hooters restaurants in the North Bay—the Rohnert Park franchise is owned independently and isn’t affected by the bankruptcy. Source: Santa Rosa Press Democrat
Napa County
86.4% Portion of St. Helena residents who reported “satisfied” with their quality of life in a recent survey of the community. There’s just no pleasing some people
6.2% Increase in St. Helena respondents reporting “satisfied” since the last community survey was conducted— in 2022, following two years of COVID-19 lockdowns.
13.6% Amount of survey respondents who did not register an uptick in St. Helena quality of life since the pandemic. Source: Santa Rosa Press Democrat
Marin County
30 Number of U.S. cold-war-era Nike missile sites built as the last line of defense against H-Bomb carrying Soviet bombers that had eluded the Air Force’s interceptor jet aircrafts. SF-88 is considered the most fully restored Nike missile site in the country. Source: National Park Service
Nukes vandalized
88 The number associated with the historic Nike Missile Site in the Marin Headlands— aka SF-88—that in March was broken into and vandalized with spray-painted hate speech and spilled gallons of hazardous chemicals.
May 2025
NorthBaybiz 17
“We have achieved remarkable results and brand presence with NorthBay biz magazine”
NorthBay biz magazine has brought a wealth of industry knowledge and I am pleased to take a moment to highlight the remarkable success of our partnership and the continued growth we have experienced in the restaurant sector. At Charlie’s we take great pride in delivering an exceptional dining experience. Chef Robert Negoesco has crafted a delicious menu with passion and creativity, paired with our extensive wine list, an unforgettable evening at Charlie’s awaits. We would like to extend our gratitude to NorthBay biz for providing a platform that celebrates prospering local businesses. Together we have been able to leverage our collective strengths, expertise and resources to achieve remarkable results and enhance our brand presence in the North Bay. — Demian Reddy, Marketing & Sales Director Robert Negoesco, Executive Chef
For advertising and marketing information, call us at 707.575.8282 Helping grow your business isn’t just something we do... it’s all we do!
18 NorthBaybiz
May 2025
Only In Marin
Parting thoughts on Point Reyes ranching and a splash of the grape By Bill Meagher
T here has been no shortage of words used to describe the changes coming to the Point Reyes National Seashore, and many of them have been found in this very periodical. I point to a wonderful piece by Judith M. Wilson in the March issue. That said, please indulge me for a moment. Over the years I’ve written here and elsewhere about the clash between those making a living running cattle and dairy farming and those who believe the national seashore should be pure, free of commerce. Two key words in that sentence are years and clash.
PRNS, I am not sure the size of the change will have much effect on stores or other businesses in Point Reyes Station, and [it] also depends on how that revenue is redistributed. If the businesses end and the revenue leaves Marin County 100%, there may be some noticeable effects. If it redistributes to other parts of Marin County, the county economy is unlikely to feel much of a change in the aggregate, but may in West Marin.” Dollars are just one way to
measure loss. The cultural harm from this dispute will be steep. West Marin is the last nod to how Marin once was. While San Rafael weighs how tall new buildings will be, family ag scrounges empty boxes in which to pack its history. Your Marin Moment There is a tendency in our county to consider things in a serious manner. When you take a lot of education, spare time and cash, and give it a good shake, sometimes the result is an environment where life follows a linear path and the pronouncements feel as if they have come down off a mountain, or at the very least a tall hill with superior cow placement. So, the opening of a new wine bar in Tiburon where the name can be translated into “Let there be love,” is both a lovely sentiment and a location with an extensive wine-by-the-glass program. Mog Asu Wine Bar is tucked into the Cove Shopping Center in a building that formerly housed a Bank of Marin branch. Married couple Fedric D’Costa and Emily Lund created the nicely appointed little sip and nosh shop. You might say—who wants to drink in a bank building? But the thought cheers me as I think of the too many moments when I needed a drink after some poor bank staffer had to explain to me the lowly balance of my account. The wine selection hails from Europe, South America, down under as well as the west coast. A variety of small plates are available as well, perfect for sharing unless you are with folks who ask if they can have one of your fries and then eat all of them. g
The historic Pierce Point Ranch in Point Reyes.
Resolving issues in Marin is a time-consuming process, and despite the recent settlement, the clock will continue to run on ranches in the seashore as Nicolette and William Neiman sue the Park Service over booting ranchers out. And Andrew Giacomini has brought an action alleging the Park Service and the Nature Conservancy conspired to push agriculture out of the park. Giacomini represents workers living on ranches and farms who not only lose their jobs but their housing as a result of the settlement. As for clashes, I’ve seen a simple request to add a bedroom and bath to a home at a planning commission take 18 months with a parade of neighbors up against a homeowner trotting out a lawyer, a landscape architect, a regular architect, a feng shui advisor and a massage therapist. The actual amount of the settlement has remained secret thanks to all parties signing non-disclosure agreements. The Point Reyes Light said the amount of cash is in the neighborhood of $40 million, which isn’t exactly a low-rent district. One factor left out of the back and forth of agriculture vanishing from the seashore is what it will mean in terms of economic impact. In 2023, the last complete year where data is available, ag produced $85.3 million in Marin, with poultry and dairy leading the way. But it isn’t just what sale of the products brought in, it’s also how many times those dollars are rolled over in the community. Local businesses who make money from supplying ranchers and farmers will see a dip in revenues. The loss of jobs also means the former employees now have less income to buy goods and services in the community. Finally, there is a loss of tax revenues which can affect the level of services available to local residents. But I’m not an economist, so I reached out to Dr. Robert Eyler from Sonoma State and a columnist in this very magazine. “In the case of
Meagher is a columnist, contributing editor and disturber of norms at NorthBay biz. He is also a senior reporter at the Manhattan-based digital financial news outlet The Deal.
May 2025
NorthBaybiz 19
T he times they wine report 2025:
20 NorthBaybiz
May 2025
are a-changin’… Rob McMillan’s latest ‘state of the industry’ overview sets its sights on millennials
By Jason Walsh
May 2025
NorthBaybiz 21 NorthBaybiz 21
D on’t blame the messenger. Those were the words Rob McMillan emphasized in the introduction to his Silicon Valley Bank State of the U.S. Wine Industry 2025 report, the annual industry overview hotly anticipated each year throughout the U.S. wine world. For several years, McMillan’s reports have sounded the alarm about how changing demographics and consumption habits should put the industry on notice—baby boomer wine lovers are aging out of the market, while younger consumers are drinking less and choosing other forms of alcohol when they do. Despite his predictions to the contrary last year, tasting room visits are still on a downward trend, while direct-to-consumer sales continued to slow. “This is what you get when you make predictions and insert hope into the math,” McMillan conceded in this year’s report. “I stretched for something positive… and it turned out wrong.”
Tasting room visits haven’t rebounded since the pandemic, a trend which has ripple effects on direct-to- consumer sales.
rate is on a positive trajectory, even surpassing red wine. And no- and low-alcohol wine products are growing “at a dynamic pace,” though he concedes that’s a mixed bag in an industry focused on selling alcohol. Still, as in recent years, the main headline is about demographics. How can the industry entice the next cohort of middle-aged drinkers—those currently in the 30- to 45-year-old range—into the wine-lovers fold? Unfortunately, there’s no simple answer, he says. Here are a few key points drawn from McMillan’s 2025 industry review (check out the full report at svb.com) : Supply and demand One of the industry’s challenges in recent years has been supply and demand, the latter of which has been ebbing, while supply failed to slow down in kind. This was particularly problematic during the pandemic when consumer sales plateaued, yet many wholesalers were working under guaranteed purchase agreements, resulting in warehouses overstocked with inventory. While inventories were pared down in 2024, it was only by 2.4%, says McMillan. “There is a lot of work left,” he says. McMillan predicts wine discounting will be employed to help clear the backlog and if growth rates are positive, oversupply could be leveled out in a matter of months. If not, it could take into 2026 before inventories return to normal turnover. Tasting room visitations While a decline in tasting room visitations was expected following the pandemic—as Americans traveled abroad following two years of delayed vacations—the continuing trend is cause for concern and might indicate certain pandemic-adopted patterns are here to stay. For instance, consumers over 60 may continue to shop online for wine and save their domestic travel to see family, a 2024 study by McKinsey & Company indicates. This trend is reflective in Visit Napa Valley research, which shows over the past six years
While the industry is undergoing a major reset—its first “demand-based correction in three decades,” he notes— certain sectors are seeing positive signs. White wine’s growth
22 NorthBaybiz 22 NorthBaybiz
May 2025 March 2025
Converting 30-somethings to wine lovers is an imperative, says Rob McMillan.
According to estimated consumer preferences, among drinking-age Americans who consume alcohol every decile- age demographic (i.e. people in their 20s, 30s, 40s, etc.) under 60 ranks wine as their third choice (behind beer and spirits). But every decile age demographic over 60 ranks wine first. That said, the age 30 to 39 cohort has the largest overall number of alcohol consumers, therefore it ranks second only to the age 60 to 69 group in total number of drinkers who prefer wine over other choices. Concludes McMillan: “If we present a product that hits their value points, 30- to 45-year- old consumers will choose wine more often.” Will younger consumers ‘age into wine’? McMillan acknowledges that within the current population, the preference for wine grows with age. But he cautions against the view that consumers will switch to wine over the course of their lives simply because they age. “That is and always has been a fallacy,” he writes. Older generations prior to the baby boomers preferred spirits and beer over wine, he points out—and didn’t become wine drinkers in their high- spending years. Generations don’t always copy their parents’ consumption patterns—consumerist boomers proved that to their thrifty Depression-era parents. Patiently waiting for younger people to grow into wine is a losing strategy, he says. Market correction—how long? As wine-consumer demographics shift, industry watchdogs have one common question—how long will this demand
the average age of visitors to Napa Valley dropped from 46 to 40—problematic given younger consumers are more frugal and drink less overall. “Selling expensive premium wine in a 375ml format is one way to appeal to a younger” demographic, says McMillan, pointing out that they are willing to splurge on smaller-ticket luxuries. Given younger consumers’ penchant for frugality, wine businesses may also have to reconsider their tasting room fees, which have increased by more than 200% since 2012 (the average reserve tasting is currently $72; standard is $38), says McMillan. He believes winery owners should rethink their tasting room fee structures—perhaps offering entry- level tastings during slow periods of the week and include live music or games to draw in younger clientele. “There are endless possibilities,” he says.
Bring on the millennials! Noting that the glory years of wine-guzzling and
conspicuous consumption by the baby boomer generation is sunsetting, McMillan calls those aged 31 to 49 the next “opportunity set” for the industry. If they can steer that cohort toward preferring wine over other choices, it could set up the industry for the decades to come. The caveat: Members of that age group aren’t new recruits, they’ve already tried plenty of wine and have an opinion—and in some cases that opinion is that they prefer other beverages. “We need to convert those,” says McMillan. “That is a more difficult task, but it’s the critical one at hand.”
May 2025
NorthBaybiz 23
correction take? “There are far too many variables to predict confidently,” says McMillan. For instance, the downturn in demand in the late 1980s was corrected in the early 1990s thanks to the French paradox—studies showing the French population had lower rates of coronary heart disease, leading to the suggestion that moderate red-wine consumption has health benefits. Recent
5 predictions from the Silicon Valley Bank State of the U.S. Wine Industry 2025: n Due to the sunsetting of baby boomer wine consumption, the industry will find a bottom and reach back to a zero growth rate in 2030. n Premium wine business will return to flat growth between 2027 and 2029 and grow at a rate of inflation plus population growth levels thereafter. n Off-premise will move to flat growth between 2028 and 2031. n Until retail sales improve, growers will have difficulty negotiating favorable contract pricing and terms. n Clearing wholesale inventory and returning to predictable depletion volumes will likely take most of 2025 and possibly into 2026.
Rob McMillan
years have seen a “no safe amount” anti-alcohol campaign negatively affect wine demand, though that narrative has been tempered with credible studies supporting alternative views, says McMillan. Still, “when demand flattens, as is currently the case, there are limited corrective strategies,” he continues. A game-changer like the French paradox “is unlikely to fall into our laps twice,” he says. McMillan believes collaboration is key, and the need for new marketing campaigns at every level has never been greater. “Anything we can do to collaborate with neighbors, friendly regions and fellow association members to market wine in wider circles can help shorten the length and severity of this cycle,” he writes. “And once this downturn ends, strengthen these relationships to bolster revenue, volume and profitability.” The risks of ignoring a rapidly changing market far outweigh the risks of trying new strategies, he stresses. “An untested idea, a novel outreach approach, collaboration with neighboring wineries and establishing a Wine Business Improvement District are all worth considering.” Concluding on a hopeful note, McMillan asserts that “wine is what younger consumers want. They just don’t know it yet.” “Wine’s characteristics fit the bill—green, plant-based, natural, minimal additives, no added sugars, often organic and more—all [those] align with younger consumers’ values,” he points out. “There is an opportunity, particularly in the 30- to 45-year-old age brackets, to change minds about wine.” g
Read on Sonoma is off to its strongest start yet, with almost 4,000 students participating and 35,000 books read so far! 3rd through 6th grade students have also scored an average of nearly 90% or higher on their quizzes. Keep up the great work!
Please email comments to jwalsh@NorthBaybiz.com
24 NorthBaybiz
May 2025
Vine Wise
Wine as Protest: What the 1907 Revolt can teach us today
By Adam Lee
T he wine industry is in trouble. We are overrun with excess— too many grapes, too much wine and not nearly enough demand. Younger drinkers, especially in the cities, are increasingly indifferent to domestic wines, chasing the next imported curiosity or canned trend instead. Worse still, “fake wines”— products manufactured with non-wine related additives, concentrates or dubious ingredients—are flooding the market, undermining the integrity of honest producers. Meanwhile, the anti- alcohol movement is gaining traction, painting all wine with the same brush as mass-produced booze. Sound familiar? It should. But I’m not just talking about today. This was the scene in the Languedoc at the dawn of
were suspended—with all taxes lifted on grapes and wine from the years 1904- 1906. Sugar sales were regulated and heavily taxed to curtail chaptalization fraud. Finally, a law was passed that made clear what wine is: “No drink may be owned or transported for sale or sold under the name of wine unless it comes exclusively from the alcoholic fermentation of fresh grapes or grape juice.” This is what wine can be: not just a product, but a statement. A banner. A movement. And now, over a century later, we need that spirit again. Because we’re facing our own crisis— one that’s different in detail but not in kind. Growers are calling me daily with unsold fruit. Wineries are closing.
the 20th century. Faced with collapsing markets, consumer apathy and government indifference, the winegrowers of southern France didn’t just grumble. They revolted. It was called The Paupers’ Revolt of the Midi—or simply, The Revolt of 1907. And it might be the most powerful example of wine as protest the world has ever seen. In response to a collapsing economy and a flood of fraudulent wines, growers in the Hérault region organized. First, they created a sales cooperative in 1901—128 producers working together to sell their wines directly, cutting out the middlemen. Other such cooperatives followed. In 1905, they built the Maraussan cooperative winery—a shared production facility, with 29 cement tanks and room for 2 million liters of wine. Above the entrance these words were inscribed: “All for everyone, everyone for all.” They were not just making wine, they were building solidarity. And then the national government turned its back. Instead of helping growers, it encouraged cheap imports from Algeria and allowed fake wine—heavily sugared and watered down—to saturate the market. In response, the growers rose up. More than 600,000 people took to the streets in a region of just over a million. Viticultural Defense Committees were formed. Their pledge: “We all swear to unite for viticultural defense, which we will defend by all means. Anyone… who renders us unable to win will be tried, convicted and executed on the spot.” The protests turned violent. The government sent in troops. Leaders fled. The revolt was crushed. But ultimately it worked. The French government relented. Taxes on grape growers
Layoffs are becoming routine. The old channels—distributors, marketing gimmicks, empty influencer campaigns—aren’t working. And the clock is ticking. So, what do we do? We take a lesson from Languedoc. We build alliances. We share costs. We stop thinking of each other as competitors and start acting like comrades. Maybe we form direct sales cooperatives. Maybe we blend together—not just wine, but purpose. But most of all, we change our mindset. The French understand that protest is part of culture. Americans have forgotten. We need to remember that wine has always been more than a drink. It’s history. It’s place. It’s people. And it’s powerful. Bob Dylan—an icon of protest himself—once sang: Come gather 'round people wherever you roam And admit that the waters around you have grown And accept it that soon you'll be drenched to the bone If your time to you is worth savin' Then you better start swimmin' or you'll sink like a stone For the times, they are a-changin' It’s time we started swimming. Together. U
Adam Lee co-founded Siduri Wines in 1994, selling it to Jackson Family Winery in 2015. He now produces and owns Clarice Wine Company, and consults with numerous different wineries, including Rombauer Vineyards on their Pinot Noir project.
May 2025
NorthBaybiz 25
26 NorthBaybiz
May 2025
PCaal tmc hWi ni nge : lightning in a bottle Sonoma County winemaker is blending West Africa and California wine cultures
By Emily Fair Weber
Message in a Bottle: Onye Ahanotu wants to bring the pleasures of Nigerian palm wine to the masses.
NorthBaybiz 27 NorthBaybiz 27
May 2025
F rom Africa to Sri Lanka, India to the Caribbean, wherever palm trees grow, their sap has been harvested for millennia to create an ancient and elusive elixir: palm wine. The process of tapping palms to produce this drink approximates magic—turning water into wine, so to speak. Once harvested from towering palm trees, the sap ferments spontaneously, producing a low-alcohol, cloudy and effervescent beverage. Although palm wine is largely unknown in the U.S., Onye Ahanotu, a trailblazing Nigerian-American hailing from Sonoma County, is on a mission to change that. As Ahanotu observes, "Palm wine is a really, really old category… there’s evidence certain pharaohs used palm wine in their embalming process." While the precise origins of palm wine remain unclear, historians believe that humans have been fermenting palm sap into alcohol since around 16,000 BCE, making it one of the oldest-known fermented drinks—predating grape wine production by a staggering 10,000 years. In Nigeria, palm wine is deeply intertwined with ceremony and celebration, often featured at gatherings, festivals and weddings. In certain Nigerian traditions, palm wine even takes the place of a wedding ring, symbolizing the newlywed couple's marital bond. One of Ahanotu 's goals in producing palm wine for the American market is to provide the Nigerian diaspora with access to this important ceremonial beverage. At this point, besides a couple non-alcoholic versions of palm wine available at African grocers in the U.S., Ahanotu is unaware of any palm wine available for purchase stateside. What makes palm wine so unique is that it is nearly ready to
drink as soon as it comes out of the tree. Palm wine ferments spontaneously once the sap begins to interact with yeasts present in the air and environment. The resulting beverage is a milky, hazy color with a light effervescence: typically foamy, sweet with tart notes, fruity and floral. The sap of several palm species can be used to produce palm wine, including raffia palms, coconut palms, date palms and oil palms. In West Africa, different ethnic groups have preferences for particular palm species when it comes to palm wine. In South India, palm wine—known as toddy—is a popular, workingman's beverage sold in so-called toddy shops. “Tappers” or “toddy tappers” are the skilled individuals who climb palm trees, often with the aid of ropes or ladders, to harvest palm sap. They make a cut in the crown of the palm and leave vessels, such as gourds, plastic bottles or jars, attached to the tree to catch the sap, returning after several hours to collect the harvest. Thanks to the high sugar content of the sap, fermentation begins almost instantaneously. Like natural wine, palm wine is a simple, unadulterated product with just one ingredient: palm sap. The naturally occurring yeasts in the environment quickly transform the sugars in the sap into alcohol. Within as little as two hours, the sap ferments into a beverage with an alcohol content of around 3.3-5% ABV. But this fermentation process is swift, and the wine begins to sour within a day or two, turning into vinegar. The fleeting nature gives palm wine a very short window in which it can be enjoyed and renders its shelf life relatively non-existent. In rural areas of Nigeria, tappers collect sap and sell it at local markets that same day. Some of Nigeria's wealthiest individuals choose to employ their own tapper, buying their exclusive daily collection. Despite its historical and cultural significance,
28 NorthBaybiz
May 2025
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68Made with FlippingBook - professional solution for displaying marketing and sales documents online