Wildfires have joined the pandemic and the economy on the list of 2020 challenges for California winemakers. An unseasonal and unprecedented series of thunderstorms blew through Northern California late Sunday night and early Monday morning, bringing lightning strikes that ignited dozens of blazes. A significant heat wave coupled with persistent winds stoked the fires, five of which are within Napa County and have since grown to burn a combined 42,000 acres, with no containment so far.
Cal Fire has named this cluster and two fires in Sonoma County the Lake-Napa Unit (LNU) Lightning Complex. Each of the Napa fires are located in the rural eastern hills above St. Helena and Rutherford. Overnight, one of the fires, dubbed Hennessey, exploded in size and spread southeast into neighboring Solano County toward Vacaville (population 100,000), a city between San Francisco and Sacramento, prompting widespread evacuations.
The fires had mostly been consuming dry vegetation in the first 48 hours. Late Tuesday, just three structures had burned. But by Wednesday morning that number had grown to 50, with thousands threatened.
The Hennessey fire and nearby Gamble fire initially endangered wineries and vineyards near Pope and Chiles valleys, including Napa's oldest family-owned winery, Nichelini. Winemaker Aimée Sunseri, a fifth-generation Nichelini, told Wine Spectator that several small fires all started to come together around their property, but that the winery was unharmed. "We lost a cabin and barn, but the firefighters were able to keep it from crossing the highway. If it weren't for the firefighters, [the winery] might not be standing." Sunseri added that she has no idea how their nearby vineyards fared. "That's our next concern—whether or not we will even be able to harvest this year."
Stay on top of important wine stories with Wine Spectator's free Breaking News Alerts.
Green and Red winery in Chiles Valley also had a close call. "The fire is to the east and south of our vineyards, with the winds in our favor," Green and Red winemaker Michael Penn said. He added that the fire came at the worst moment. The winery had its first pick of the year scheduled for yesterday. "We were just working on our cleaning and harvest preparations when the evacuation orders came through," said Penn. "Moving from a health crisis right into an environmental crisis is a lot to ask of a winemaker!"
Staff at Stanley Cheng's Hestan Vineyards, situated in a remote corner of far southeastern Napa Valley, watched as the fire raced through a nearby canyon last night. "The fire went by, and it was a little frightening," said winemaker Jeff Gaffner. "It was a ridge and a half over, and stayed there. Everyone is nervous, but we're feeling fortunate."
Though the fire has mostly spread to the south and east outside of Napa County, there are still pockets burning in the eastern hills, including near the Pritchard Hill area, home to Chappellet, Continuum, Colgin and others, as well as Atlas Peak, one of the hardest-hit areas during the 2017 fires, and the eastern foothills above Yountville and Stags Leap District.
Lightning struck a tree at El Molino winery in Napa Monday morning, sparking a fire. The owners and neighbors were able to put it out. (Courtesy of El Molino)
"We are thankful to share the news that everyone is safe at Chappellet, and we're deeply grateful for the outpouring of concern and offers to help," Cyril Chappellet told Wine Spectator. "Naturally, we are monitoring the situation very closely. Because fire is always a possibility in California, Chappellet is very well prepared, and we have a thorough fire response plan in place, which includes things like an in-house fire chief, an on-site fire truck, pressurized water tanks, and strategic fire breaks that have been established around the vineyard."
Schatzi Throckmorton, proprietor of Relic, who endured fire danger and evacuations during the 2017 fires, said Soda Canyon Road, the main road to the winery, is now closed. An untimely closing, as they were slated to begin picking grapes this morning. Throckmorton teased that she still remembers all the back ways into the winery, if necessary. In 2017, Throckmorton's husband, winemaker Mike Hirby, hiked across the Napa River behind the barricade and up to the winery. The Relic team navigated perilous access roads to sneak in a generator and complete harvest.
Gov. Gavin Newsom declared a statewide emergency Tuesday, as countless other fires of various sizes and severity are burning throughout the state. He also said residents can expect continued rolling blackouts while the heatwave puts stress on electrical utilities. In addition to the raging wildfires in Napa County, part of the LNU complex includes a 1,500-acre fire in the rural hills west of Healdsburg, and the 25-acre Meyers fire on the coast, near Jenner, both in Sonoma County.
Jasmine Hirsch of Hirsch Vineyards said the Meyers fire is the closest to their property, but they are safe for now. They had a scary moment on Monday, when lightning struck an old redwood on the Hellenthal property adjacent to theirs. "We mobilized our crew, and Gard Hellenthal cut a road down to the fire with his bulldozer and brought a water truck down and got it contained," she said, noting that a team from Cal Fire soon arrived to put out any remaining embers.
Hirsch said her bigger concern is how they're going to supply the clients that buy grapes from their vineyards with some surrounding roads inaccessible. "No one has called a pick yet, but harvest is earlier than we anticipated," she said, noting that they originally projected beginning Sept. 7, but the grapes quickly went through veraison even before the heat wave. "Up until Monday, it was shaping up to be an extraordinary vintage," she said. "Then a power outage fried our cooling system, and rain got us worried about botrytis, all while waiting on calls from Cal Fire to update us on the fires."
The banks around Lake Berryessa in Napa's hillsides smolder after the LNU Lightning Complex fire burned through the area Aug. 18. (Justin Sullivan/Getty Images)
Farther south, a cluster of fires in Calaveras, Santa Clara, Alameda, Contra Costa, San Joaquin and Stanislaus counties has burned 85,000 acres so far, with just 5 percent containment. Cal Fire has dubbed it the SCU Lightning Complex. Another blaze, the River fire, has burned 10,000 acres east of Salinas in Monterey County.
Gary Franscioni of his family's Roar Vineyards in the Santa Lucia Highlands reported that the River fire had jumped a firebreak and crossed over the northern boundary of the appellation but that no wineries or vineyards were currently threatened. The fire was fast-moving, however, he added. "It's pretty scary here," he said, noting that he was moving equipment out of the winery's Sierra Mar vineyard as a precaution. Franscioni said the area hadn't burned in 30 to 40 years and was filled with dried fuels.
Temperatures are expected to remain near triple digits throughout the week. Firefighting resources are strained, and battling multiple fires while housing evacuees in shelters during a pandemic is further exacerbating problems. It is an ominous beginning to California's fire season, which typically lasts until the end of October, when hot, dry winds are most frequent.
—with reporting by Kim Marcus and MaryAnn Worobiec.
/GettyImages-173253261-01c423e882854918a78bba4b4e91eee5.jpg)
U.S. wine stocks rose Tuesday after news surfaced that China has launched an anti-dumping investigation into Australian wine exports, alleging that the country sold wine below the cost of production. Beijing is expected to report back on the allegations next August but has flagged that the deadline could be extended to February 2022.
The move comes several months after China imposed tariffs on Australian barley and suspended a range of beef exports amid similar dumping claims. Australia, which is the world's largest wine exporter to China by value ($795 million), had vino tariffs eliminated by the country in 2019. By contrast, U.S. wine sellers are subject to a steep 93% levy that saw American wine sales slump 6.5% in 2019. An introduction of Chinese tariffs on Australian wines would, therefore, level the playing field for U.S. producers.
Below, we take a closer look at three leading U.S. winemakers and identify possible trading opportunities using technical analysis.
Constellation Brands produces and markets beer, wine, and spirits in the United States and internationally. Despite Chinese tariffs imposed on U.S. wines, the New York-based beverage giant inked a new distribution deal in mainland China last year for its Robert Mondavi Private Selection – a range of barrel-aged wines. As of Aug. 19, 2020, the stock has a market capitalization of $34.36 billion, offers a 1.73% dividend yield, and is trading nearly 5% lower on the year. However, the shares have added 6.18% over the past three months.
The stock appears to be carving out an inverse head and shoulders pattern – a formation that typically indicates a market bottom. Furthermore, the 50-day SMA crossed above the 200-day SMA in mid-July to generate a golden cross buy signal. Those who enter at these levels should consider setting a take-profit order near the pre-pandemic high at $205.71 but cut losses if price fails to hold above this month's low at $169.31.
An inverse head and shoulders pattern is similar to the standard head and shoulders pattern, but inverted, with the formation used to predict reversals in downtrends.
Louisville, Kentucky-based Brown-Forman bottles and markets various alcoholic beverages, including spirits, wines, and whiskey. According to the company's annual report, both wine volumes and net sales decreased by 1% in fiscal 2020, with management citing adverse effects from the coronavirus pandemic. Meanwhile, the company estimates that Chinese and European Union (EU) retaliatory tariffs slashed its 2019 fiscal revenue by about $125 million. As of Aug. 19, 2020, Brown-Forman stock has returned 6.37% year to date and 7% since mid-May.
Since bottoming out in the mid-$40s at the height of the March selling rout, the stock has staged a remarkable recovery, setting a new all-time high in Tuesday's session. Those who want to exploit short-term momentum should consider using a 15-day SMA to book profits. To use this technique, simply remain in the position until price closes below the indicator. More conservative traders may decide to wait for a pullback to previous resistance at $69, which now acts as support.
Although Oregon-based Willamette Valley Vineyards primarily focuses on the U.S. market through direct and distributor sales channels, it sits well positioned to push into the burgeoning Chinese wine market with its range of premium, super-premium, and ultra-premium products. As of Aug. 19, 2020, Willamette Valley Vineyards stock has a market value of $31.13 million and is trading nearly 11% higher over the past three months, outperforming the industry average by around 7%. Year to date, the shares have slipped 5.53%.
The stock staged a sharp recovery rally between March and early May before trading sideways for several months. More recently, price crossed back above the 200-day SMA, with an intraday dip to the indicator Tuesday met with solid buying interest. Active traders who enter here should look for a test of horizontal line resistance at $7.30 while protecting downside with a stop-loss order placed somewhere beneath yesterday's low at $6.27.
A sideways trend is the horizontal price movement that occurs when the forces of supply and demand are nearly equal.
Disclosure: The author held no positions in the securities mentioned above at the time of publication.
Gus Clemens Special to San Angelo Standard-Times
Published 8:43 AM EDT Aug 19, 2020
Alcohol makes wine wine. Take away yeast converting sugar into alcohol, you have grape juice. Nothing wrong with grape juice, but no sage asserts “in grape juice there is truth.”
Still, alcohol levels in wine engender controversy. As in religion and politics, the big brouhaha rages over small differences.
What is proper amount of alcohol? Does an alcohol by volume (ABV) score of 15.5% make for a perfect pour, or for shameful excess? Gastronomes assert ABV of 12% is ideal for food pairing. Others whine that’s “wimp wine”.
To add to the debate, ABV numbers on the label — precise to a tenth of a percent — are only guesses. If the label lists ABV of 14% or lower, winery only has to be accurate within 1.5% as long as it does not exceed 14%. So etherial 12.5% pinot noir legally could be 14%. Or it could be 11%
When score is more than 14% ABV, the allowed margin for error is 1%. That means a 15.5% ABV Napa cab — a common number — could be a shocking, outrageous 16.5%. Or an almost admirable 14.5%.
The proof of the proof is not on the label. It is in the mouth, especially on the finish, where “hot” exposes itself.
Of course, wine being wine, it is not that simple. Rich ripe grapes — which boost alcohol — can mask alcohol with their smarmy phenolic illusion of sweetness. You can have a high alcohol wine that tastes less alcoholic than a lower alcohol wine.
Pretty much across the board, wine has higher alcohol today. Two reasons. The market did its part: as wine became a “cocktail hour” drink, buzz factor became more important. Nature did its part: climate change means virtually every vineyard is warmer, warmer means more ripeness, riper grapes mean more sugar, more sugar means higher alcohol.
Bottom line: lower alcohol wines are better with food, higher alcohol wines fit zeitgeist. Expounders from both camps can argue away, hopefully over glasses of their particular favorite. Peace, fellow wine drinkers. Peace.
Tasting notes:
Ruggeri Argeo Prosecco DOC Treviso NV: crisp, simple, delicate sparkler; clean flavors. $16
Éric Texier Brézème Roussanne 2017: Natural wine, deep gold color, touch of amber from time on skins. $26-30
Long Meadow Ranch Pinot Noir Anderson Valley 2016: Smooth, generous in the mouth; built for food pairing. $37-42
Last round: Pair of jumper cables walk into wine bar. Bartender: “OK, I’ll serve you, but don’t start anything.”
Email: wine@cwadv.com. Facebook: Gus Clemens on Wine. Twitter: @gusclemens. Website: gusclemensonwine.com.
