Virginia wineries are allowed to self-distribute 3,000 cases of wine annually to retailers and restaurants in-state, through an industry-run holding company established in 2008. Many wineries don’t take full advantage of that sales avenue, but Case says she hopes to use it to promote her wine family. She described an industry that must discover new markets to expand; her target market is Northern Virginia and people who — like her, before her Charlottesville vacation with Steve — haven’t yet discovered the new quality in Virginia wine.
But can this marketing revolution be “disruptive” enough to shake up the industry? Most Virginia wineries sell their small production entirely through their tasting rooms and at festivals, where they earn full retail profits. There is a disincentive to put their wines in the distribution system, even through self-distribution, which takes time and resources while cutting profit margins.
(Jahi Chikwendiu/WASHINGTON POST) - Winemaker Frantz Ventre sniffs barrels of wine at at Sweely Estate, bought this year by Jean Case and husband Steve Case, of AOL fame.
“We need to demonstrate that there is a market for these wines in order to give the wineries and the growers confidence to expand and grow,” Case says.
I spoke to three industry insiders who expressed skepticism — while asking not to be identified — that Case will be able to enlist other wineries for her cooperative venture. Why would any winery promote another’s product, they wondered.
Others are more optimistic. “I think she’ll be a tremendous asset,” says David King, owner of King Family Estate winery in Crozet, west of Charlottesville. “There’s all kinds of opportunity in our industry, and I’m as excited as can be about people in another sector, with their energy, coming in and energizing our industry.”
Case’s ambitions are more modest than Donald Trump’s, which perhaps reflects their personalities. Trump Vineyards, the former Kluge Estate, has 220 acres of vineyards with plans to expand to 370 acres. Case has 30 acres under vine and talks about buying more vineyard land to increase production. Trump also has an established market for the wines in his hotels, golf clubs and casinos. Through that network, he has the potential to raise the profile of Virginia wine worldwide.
In contrast, Case’s focus is local, on a statewide market in which only 5 percent of the wine purchased is made in Virginia. “I see no reason that Virginia wines shouldn’t ultimately compete on the global market, but we need to walk before we can run,” she says. “We need more Virginians to drink Virginia wine.”
McIntyre blogs at dmwineline.com; follow him on Twitter @dmwine.
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