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By Greg Stiles Mail Tribune October 03. 2014 11:13AM Pallet Wine Co. expands in downtown Medford Fred Salomon, wine maker, and Linda Donovan, owner of Pallet Wine in Medford, stand Thursday with oak barrels in their recently expanded storage area. Mail Tribune / Jamie Lusch Pallet Wine Co.'s custom crush operation has creatively kept pace with the regional industry's growth during the past six years. As new vineyards, wineries and tasting rooms crop up throughout the Applegate, Rogue and Umpqua valleys, the demand for Pallet's services has intensified. Three years ago, the downtown Medford firm was overwhelmed by the 2011 harvest. "That was a huge year, really more than what this building could handle," said Linda Donovan, Pallet winemaker and partner. "So we scaled back down." This week, Donovan acquired an adjacent 10,000-square-foot building to Pallet's 340 N. Fir St. quarters in the Cooley-Neff building.  Problem solved. "I never thought I would outgrow this building," said Donovan, who will trade in a cramped office/lab for bona fide office space within the next year. "It just seemed so big when it was empty, but we got to the point where we literally didn't have space to turn a forklift around. This will allow us to be more efficient, so we don't have to move things to get to things. It will allow us to really streamline production." Pallet serves about 20 clients, including the likes of Irvine Vineyards, Harry & David and Grizzly Peak Winery. The acquisition of the building that has housed a variety of retail and warehouse operations, including Spearco Graphics, over the past seven decades will allow Pallet to produce as many as 38,000 cases of wine annually, compared to the present 28,000 cases. The $410,000 deal with former owners John Kruesi and Tony Nieto closed Wednesday and Donovan wasted little time moving barrels into the warehouse that shares a wall with her existing winery. In May, Rogue Winery LLC, which includes Donovan's partners, Daniel and Olivia Sullivan, bought the building the company has been operating in since 2009 for $594,128, according to county property records. The new acquisition will provide more than storage when the 2015 crush begins. "My plan is to have a very cool urban tasting room to showcase all of the Pallet clients," Donovan said. "A place where people come to buy a bottle of wine for dinner, enjoy a glass of wine before going to the theater, and a venue for tasting new releases and wines you don't get to try anywhere else." She will share a new lab with winemakers Fred Salomon and Elisabeth Grunwald, along with enologist Ian Riversong. The present grape crop is considered one of the state's largest ever, although Southern Oregon was hindered by an elongated period of sub-freezing temperatures last winter. After a roaring start to the harvest, Donovan said the pace slowed. So far, 40 percent of the anticipated 360 tons of grapes are through the door with remainder due in during the next three weeks. "We had a big start for a couple week to where there are a few grapes trickling in — our winery has never been cleaner," she said. "We're expecting the big push next week." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/Economic Edge .     http://www.mailtribune.com/article/20141003/NEWS/141009885 © 2015 Copyright © 1995-2011 Crain Communications Inc. All Rights Reserved. Terms of Use Privacy Statement -->