My Latest in Wine Business News:
Washington Growers Diversify After Chateau Ste. Michelle Cuts Back on Grape Sourcing
by L.M. Archer
Woodinville, Wash. – Chateau Ste. Michelle’s (CSM) 40% grape contract reduction announcement last August sucker-punched Washington state’s wine industry.
Then Mother Nature landed a mean left hook in January 2024 with a bitter winter frost. Damage assessments remain unclear.
How Washington’s wine grape growers and winemakers grapple with dueling challenges of grape gluts and frost loss.
Diversify or Die
“Last year, we worked closely with our grower partners to address the grape oversupply situation facing Washington, as well as many other wine growing regions around the world,” says Lynda Eller, Ste. Michelle Wine Estate’s senior director of Communications & Corporate Affairs. “Difficult decisions had to be made to bring grape supply in balance with demand for the ongoing health of our business, and the health of the overall Washington wine industry, but we are grateful to have done so in partnership with the Washington wine growing community.”
Currently, CSM owns 2,200 acres of sustainably farmed vineyards in Washington. Additionally, it sources grapes from growers throughout Eastern Washington, some of those relationships dating back 40 years.
Market Fluctuations
All told, 400-plus grape growers supply Washington state’s 1,000+ wineries. “Early on in CSM history, they contracted many Eastern Washington farmers (who already owned water rights or land) to plant wine grapes on their behalf,” notes Andrew Gerow, co-owner/winemaker of TIRRIDDIS, a sparkling-only winery in Prosser.
Over time, market fluctuations in crops like apples, hops, and cherries encouraged farmers to plant more wine grapes. “Admittedly, wine is a different market than grapes and other fresh produce crops, but at the time seemed more secure and lucrative for many growers,” says Gerow. “After all, CSM was responsible for consumer sales. At some point, nearly all grape growers worked with CSM at some level.” READ MORE HERE.
I’m pleased to share my feature on Washington grower challenges with you here.