Tasting Notes: The Corporate Chill

by | Aug 21, 2017

I had a fascinating conversation last week that I wanted to share, because I think it’s extremely enlightening about the current state of the wine market in the Pacific Northwest. In talking to a winemaker friend who will remain anonymous, they mentioned that there’s some real trepidation in winemaking circles about the growing interest in Northwest vineyard land from some of the world’s largest wine companies. 

There were two main concerns. The first was that all the money coming in would drive the price of land and grapes beyond the point in which smaller wineries could compete. While, of course, there will still be plenty of fruit for sale, and there are undoubtedly hundreds of as-yet unexplored vineyard sites throughout the region, it is true that Northwest vineyard land, and the grapes grown on it, have been relatively cheap when compared to California. That’s allowed for innovation and exploration of styles at a much lower cost of entry, which explains the rapid growth in the number of wineries over the last two decades.

More than the cost though, their concern was that these multinational companies would change the dynamic in the region; that what had always been a friendly and cooperative enterprise (with a few exceptions) would turn more cutthroat and competitive. In many ways that spirit of cooperation was established by the earliest pioneers in the industry; since no one really knew what they were doing in the 1960s, ’70s and even ’80s, they had to share knowledge (and even grapes) to succeed. Now though, with the industry more established, a harsher worldview might prevail.

My friend spoke of greater secrecy, nondisclosure agreements and the not-so-subtle shutting of doors. They took pains to point out that this wasn’t something that was happening widely, but merely that changing the dynamic in the area could have a cascading effect over time, especially as more and more corporate money flows into the region.

While to some extent I share and am sympathetic to those concerns, I’m perhaps a bit more optimistic. Wines from the Pacific Northwest still have a long way to go before they’re recognized globally for their quality, and having some of the world’s biggest beverage companies at least nominally invested in building that reputation seems like a good thing. Some recent sales to watch include Penner-Ash to Jackson Family, the lauded Klipsun Vineyard to Terlato and the sale of 670 acres on Red Mountain to the BC-based Aquilini company.

Yes, the rising cost of land and grapes can be a real challenge, but I think these purchases are actually confirming a trend that was already well underway. Lastly, I’m confident that the vast majority of winemakers in the Pacific Northwest will continue to be as friendly and open as they’ve always been, because what’s the point of wine if it doesn’t make you neighborly?

Writer Zach Geballe is a sommelier at the Dahlia Lounge and the host of Disgorged, a weekly podcast and pop-up wine bar in Seattle’s Queen Anne neighborhood. He lives in Seattle, where he owns more wine than he can reasonably drink, but loves to share. You can find him at @zgeballe or vinetrainings.com.

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