an online marketplace can help a North Bay winery reduce the financial hit of higher shipping costs. Will Pearson is the co-founder and co-CEO of Scalero, a San Francisco-based marketing firm. He has experience with Vivino, a San Francisco-based digital wine sales company. This is because Pearson worked in different capacities for Vivino for four and a half years before founding Scalero. Pearson sees selling in volume through online marketplaces as a strategy to secure a following. Vivino usually sends a customer emails about the wines they have bought, the wines in which they might be interested, and new beverages from the customer’s favorite wineries. A customer’s personalized page also lists reviews of suggested wines and what they have bought before. In 2022, Pearson relocated from the Bay Area to South Carolina. He says online marketplaces educate consumers in areas where the wine industry does not have a visible presence. “In the Bay Area, we take the level of familiarity with high- quality wines for granted. Outside California and other wine- producing states, especially beyond major cities, consumers may only find a few amazing wines on the shelf. Any information online about these wines and the wines possible to ship to their state is helpful,” says Pearson. Glenn Proctor is a partner and broker for The Ciatti Company, a bulk wine broker in Novato. He says North Bay wine grape growers have an advantage in marketing their grapes and wines elsewhere. “Mendocino, Napa, and Sonoma bulk wines are not perceived as low quality, even with a multi-year streak of oversupply. In addition, traditional wine grape sellers are now expressing interest in making bulk wine. This gives them flexibility, but they are taking on additional risk. Doing so allows them to reach more buyers,” says Proctor. Proctor adds that in 2023, tasting room visits appeared to decrease. Yet the ring, or money spent per visitor, went up. “The ‘pantry stuffing’ trend from the early part of the pandemic is over. Consumers are currently looking for certain
Will Pearson, co-CEO of Scalero in San Francisco. [Photo courtesy Will Pearson]
to promote undersold categories. “The cost of everything related to agriculture has risen in the past five years. Fertilizer and diesel went up. There has been a 25 to 30% increase in the cost of labor. If growers are not
wines and appellations they know will deliver. That’s one reason you will see buyers pay more for a wine with a Sonoma County appellation than a California designation,” says Proctor.
getting enough for certain grapes, later, you will see less of those grapes,” says Rogers. Jackson says there are exceptions. “In 2020, we did not produce cabernet sauvignon because of the Glass Fire and the start
“The pioneers are where the change comes from.” —Alder Yarrow, Bay Area wine blogger
Perspectives from growers and new wine trends North Bay wine grape growers are having an extremely hard year. They are frustrated with current conditions because lower profits push them to sell acreage or pull vines. Kevin Rogers is the manager of North Coast grower and buyer relations for Allied Grape Growers. He says Allied members in Alexander Valley are now discussing whether to remove cabernet sauvignon vines. “There’s a lot more cab than the market is looking for. We’re getting calls from many Sonoma County growers who want to join Allied to help them sell their grapes. We’re putting them on a list. This is because we have to sell the grapes from our current growers first,” says Rogers. When more consumers want in-demand categories, like white wines, the wine industry could respond with advertising
of the pandemic. But we’re really excited about the excellent harvest and quality for the 2023 cab. We think it will be an epic year when it comes to scoring,” says Jackson. Cindy Leonard, executive vice president and general manager of fine wines for Southern Glazer’s Wine & Spirits, says there has been an increase in consumer interest in sustainably and regeneratively farmed and produced wines, especially in the $15 to $25 range. “Although still a small category, there is a strong percentage in orange wines. When placed correctly on the shelf, [they] can be an alternative to white, as opposed to being merchandised in the rosé section. As for pét-nat wines, we are seeing more and more of these wines appearing on beer- and wine-licensed lists—certainly those that appeal to the younger, curious and
March 2024
NorthBaybiz 31
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