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Southern Oregon wine industry growing like a vine From vineyards to wineries, trends all point up Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 19, 2015 at 6:01 PM Updated Aug 20, 2015 at 9:30 AM By Greg Stiles Mail Tribune Posted Aug. 19, 2015 at 6:01 PM Updated Aug 20, 2015 at 9:30 AM » Social News As the Southern Oregon wine industry marches deeper into its second generation, not only is it growing in acreage and production, but in the diversity of its offerings. Wine reviewers often reflect on the complexity of a vintage. Likewise, the 2014 Oregon Vineyard and Winery Census Report released this week indicates a growing complexity of players, ranging from the mom-and-pop hobby farmers to corporations. Willamette Valley vintners — thus all of Oregon in the eyes of distant consumers — built their reputation on pinot noir. Although pinot noir grapes account for roughly a quarter of the planted and harvested acreage in the Rogue Valley, Liz Wan, a wine consultant based in Josephine County thinks Southern Oregon has the potential to capitalize on dozens of varietals. "It's a wine region that doesn't fit into a box," Wan said. "With the immense number of micro-climates, we've learned we don't want to be known for one grape, we want to be known for 70." The 2014 wine census spells out year-over-year growth by virtually every measure. In the Rogue Valley, 16 new vineyards came online last year, pushing the total to 156. The vineyards added 644 acres, increasing the total to 3,226 acres, and produced an additional 1,466 tons of grapes for a total harvest of 8,667 tons. To put the industry's growth in perspective, the 2005 wine report showed 102 vineyards with 1,841 acres that produced 3,301 tons of grapes. The Rogue Valley boasted 28 wineries back then; today it has 80. Marketing and quality are essential for vintners to realize their potential, said Timothy Vevoda, Asante Foundation's wine liaison and a member of the Southern Oregon Winery Association board. "It presents both an incredible opportunity and a challenge." With major players from California scouting for prime land in the Applegate Valley and elsewhere, more plantings are a certainty. Wan, of VinoVerse Consultants, grew up in Mendocino County, adjacent to California's Napa/Sonoma wine region. She watched that region turn into an "Adult Disneyland" along with areas farther south. She's seen a pattern develop over the years. "A small number of people recognize a great growing region with great soil," Wan said. "They come in, and then two or three years later there are half a dozen pioneers planting vineyards. There is no grand commercial design at the beginning, people just plant for family and friends. It morphs from there, and plantings start to grow. Then you have small tasting rooms, then more people visit and start telling the world about it." A wine region typically takes 30 years, give or take, to mature — faster if it's close to a metropolitan area and longer if it's not an easy drive. While Southern Oregon is heavily influenced by the Bay Area in many ways, it still is a lengthy drive from major population centers. As that 30-year mark arrives, decisions are made to graft or replace grape varieties, Wan said. "People realize the original plantings are not as perfect as they could be," Wan said. "In this area I've seen the evolution of the original varieties as they've morphed and changed and increased numbers. The more types of grapes you have in a region, the more people are driven to visit." There are six Willamette Valley wineries for every one in the Rogue Valley, and many of them buy Southern Oregon grapes. "The Willamette Valley gets a lot of credit for Southern Oregon wines," Vevoda said. "Our visibility has to increase." Given the number of awards bestowed on area wines in competitions around the world, the question isn't whether the region's wines are up to snuff. Rather it's a matter of enticing buyers in other parts of the country to pick Southern Oregon vintages over the dozens of bottles surrounding them on the shelf. "We can see some pretty extensive growth in the near horizon," said Mark Wisnovsky, second-generation owner of Valley View Winery on the Upper Applegate Road. "I don't quite see the same type of growth on the sales side. I don't know where that's going to come from. It's not going to double or triple from sales in Southern Oregon. The fun part is buying land, planting a vineyard, deciding what kind of tile to buy for a tasting room and designing the label for the wine. The tougher part is selling the wine." Valley View has ambitiously marketed its Rogue Red blend through Costco, and its wine is now available throughout the Pacific Northwest, Japan and Taiwan, with Korea soon to join the list. The key for the legacy winery was putting out a $10 bottle of red wine to meet market demand. "It's relatively easy to sell Southern Oregon wines in Southern Oregon," Wisnovsky said. "It's not easy, but relatively easy to go into the Willamette Valley. It's not as easy when you leave Oregon, and it's very price competitive." Perspectives vary, but Southern Oregon wine has established a beachhead on distant shores. "You could hardly find Oregon wines across the country 10 years ago," Del Rio Vineyards owner Rob Wallace said. "Now, it's pretty readily available. Once you get the chain store, you start establishing recognition and sales." With 305 acres, including 100 planted in the past five years outside of Gold Hill, Del Rio Vineyards is among the largest growers in the region. "Compared to the Willamette Valley or California, there aren't that many acres in the Rogue Valley," Wallace said. "If you're growing 10 acres and double the size, it's still only 20 acres." Wan said the vast majority of local vintners produce fewer than 2,000 cases annually, driving up their cost per case and eroding margins. The challenge is to bump production up to 5,000 to 7,000 cases. "Realistically, until you get close to 10,000 cases most national distributors won't even look at you, much less consider bringing you on," she said. "On the cost side of things, most small producers have such a high cost of goods that they price themselves out of the wholesale option." Even before the coming harvest, Wallace said, the bounce-back 2013 and 2014 tonnage following freeze-marred years is evident. "There is somewhat of a glut after those big crops," he said. "Bulk sales have been sluggish, but retail is increasing. The proof is in the pudding. If you put it on the shelf at Safeway and it collects dust, medals don't help. If they order some more, then you know you've got some good product." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/EconomicEdge . Wine Report Medford (2) by Mail Tribune By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 19, 2015 at 6:01 PM Updated Aug 20, 2015 at 9:30 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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