2005/2006 ANNUAL REPORT. Oregon Wine Board

Transcription

1 25/26 ANNUAL REPORT Oregon Wine Board

2 FROM THE EXECUTIVE DIRECTOR Dear colleagues, The fiscal year was packed full of both challenges and opportunities. Two consecutive short harvests in 24 and 25, amid surging demand for Oregon wine, led to allocations and empty warehouses. The OWB, which manages statewide marketing, research and education initiatives, faced early crop forecasts predicting little revenue growth. OWA member dues, which support our advocacy initiatives, were down sharply. Both organizations took this as an opportunity to re-examine our priorities and do more with less. We instituted performance metrics for every program, constantly fine tuning to maximize the return on your investments. Underwhelming programs were cut and new approaches were tested. As the summer of 25 turned toward harvest, we learned things weren t quite so dour. We increased our staff marketing capabilities to shine an even brighter light on your fine grapes and wines and further solidified what Oregon wine means to consumers. We were also reenergized to raise awareness of Oregon wine country as a destination for high-value travelers. Our marketing work was ultimately more focused and effective due to the hard choices we made during the lean times. And on the education front, nearly 5 of you responded enthusiastically to the overhauled Symposium; the breakout rooms were bulging, and we even had a waiting list for the sold-out awards dinner. TABLE OF CONTENTS Message from the 2 Executive Director Oregon Wine Board Marketing Programs 3 Research 7 Education Initiatives 8 Financial Review 9 Oregon Winegrowers Association Membership Overview 1 Legislative Successes 1 Financial Review 12 TOWER Overview 13 Finanical Review 13 Board/Staff Directory 14 The Oregon Winegrowers Association focused on preparing for the 27 legislative session. We calibrated our agenda on key statewide and nationwide legislative issues that have the potential to greatly affect our industry s ability to grow and prosper for generations to come. The following report details our results and shows you how we invested tax monies for the OWB and member dues for the OWA. We hope you can find a few minutes to read about our performance and let us know what you think. Looking forward to seeing you at your vineyard or winery soon. Best regards, Ted Farthing 2 25/26 Annual Report : Contents

3 Oregon Wine Board Marketing Programs TOURISM OREGON WINE EXPLORER MEDIA REL ATIONS The Oregon Wine Story, Told Through Many Lenses Building relationships with wine, food, travel and lifestyle journalists and providing opportunities for them to experience Oregon wine, ideally while in Oregon wine country, were hallmarks of the media relations strategy. A mixed portfolio of guided individual and group tours, Millions of impressions Media Impressions July 5 - June 6 Jul-5 Business Food & Wine Travel Total Media Impressions Trend Aug-5 Sep-5 Oct-5 Nov-5 Dec-5 Jan-6 Feb-6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 including Oregon Media Camp; and outreach to journalists in their own markets with pitches, press releases and industry reports, ensured that Oregon wine stayed top of mind with key consumer and trade wine media. An updated media kit included industry background, key statistics, story ideas, maps and images. This year we distributed 1,5 kits to industry members to help with individual and regional marketing efforts. 1,4 1,2 1, Interactive Map Provides Virtual Tour of Wine Country Loaded with information to help travelers plan a trip to Oregon wine country, the Oregon Wine Explorer site features interactive mapping technology pinpointing wineries and vineyards by region. Visitors to the site can search for specific winery and vineyard locations, by wine type or other tourist amenities such as tasting room hours to help plan a trip. The search capability also directs visitors to explore individual winery/vineyard web sites, wine clubs and online sales rooms. OREGON BOUNTY Oregon Bounty Brings Tourists to Wine Country in November for Unique Experiences 62 wineries participated in this statewide tourism promotion, where consumers could sample wine, pears, cheeses and hazelnuts in tasting rooms from late October through the end of November 25. Wineries reported increases in both foot traffic and case sales during the promotion. In addition, a retail promotion throughout the state spotlighted Oregon wine along with other agricultural products. A breakdown of partners: 5 Safeway stores, 12 Fred Meyers, 1 Albertson s, 11 Thrift- 8 6 Average foot traffic based on survey responders ,263 We re continually tracking Oregon wine stories in food and wine; travel; lifestyle and business/trade publications to see which audiences we re reaching and how effective we are in key outreach markets /26 Annual Report : Oregon Wine Board

4 Cases Average number of cases sold based on survey responders Brochures Help Oregon Wine Country Travelers Plan Visits Vintage Oregon, our statewide touring guide, continues to be distributed to wineries, B&Bs, visitor centers and interested consumers throughout the country. In the last fiscal year, we distributed a total of 47,79 brochures. Inventory is being depleted quickly, and a new guide will be produced for the 27 touring season ways, 12 Roth s, 5 Zupan s, 7 Market of Choice and 6 New Seasons Markets. In-store sampling and displays at Safeway and Fred Meyer locations resulted in a more than 2 % increase in Oregon wine sales volume. Restaurant and lodging promotions were also included in the program. Oregon Bounty is a partnership between Travel Oregon, the Oregon Wine Board and other commodities commissions. $4, in promotional dollars were spent on a regional advertising and PR campaign. Only a small portion of that cost was incurred by our industry, totaling $1,5 from the Oregon Wine Board and $15,5 from individual winery participation fees. Cases Distributed Brochure Distribution FY5-6 Jul- 5 Aug- 5 Sep- 5 Oct- 5 Nov- 5 Dec- 5 Jan- 6 Feb- 6 Mar- 6 Apr- 6 May- 6 Jun- 6 WEB SITE Total Website Traffic Oregonwine.org provides timely information for wineries, growers, consumers and the media. Enhancements were made this year to feature industry partners and for growers, an expanded Grape Matching Service was launched. 14, 12, 1, 8, Pageviews Pageviews Trend The chart below shows the number of unique users to the web site and total number of page views from 25-26, both of which continue to increase. 6, 4, Unique Users Unique Users Trend 2, Jul- 5 Aug- 5 Sep- 5 Oct- 5 Nov- 5 Dec- 5 Jan- 6 Feb- 6 Mar- 6 Apr- 6 May- 6 Jun- 6 25/26 Annual Report : Oregon Wine Board

5 GRAPE MATCHING SERVICE More powerful search capabilities in new marketing site for growers Completely rebuilt to make it more powerful and user-friendly, the site enables industry members to post grapes for sale or search for grapes not only by variety and quantity but more specifically by AVA, vine age, soil type, clone, rootstock, elevation, trellis system, vineyard management techniques, sustainability certification and price. This lets growers truly market their grapes and wineries search for exactly the type of wine grapes they need. Industry members also have the ability to register with the service, view post details and create listings. education on selling to the UK and Japanese markets, as well as participation in the WUSATA Brand Export Program, was provided to participating wineries. UK Representation, Market Activity New for 26 In April we retained Hilltop Wines, a leading marketing contractor with expertise in representing US brands in the UK market. Hilltop Wines launched the new Oregon presence at the London International Wine & Sprits Fair in May, the first step in an ongoing strategy to facilitate relationships between Oregon wineries and agents, importers, distributors and key trade media. SUSTAINABLE AGRICULTURE MARKETING A hallmark of Oregon is the wine industry s commitment to sustainable wine grape growing. The state is home to LIVE (Low Input Viticulture and Enology), a sustainable certifying agency. The Oregon Wine Board works in conjunction with the LIVE board to promote benefits of certification to industry members, trade, media and consumers. Funding was awarded to LIVE, and VINEA, a similar sustainable organization in Walla Walla. Resources were allocated to industry education, membership recruitment and educational outreach to the wine community. EXPORT MARKETING PROGRAMS Oregon, along with Washington State, form the Northwest Wine Coalition, which receives USDA Market Access Program funding. The Coalition works to build market awareness in target export markets. This year the Coalition continued a strong presence in Japan and launched an awareness campaign in the UK market. Industry Thousands of Cases Number of Brands Number of Oregon Brands in Export Distribution Number of Cases Exported 15,755 13,679 4,238 37,3 1,626 44,366 Japan Canada UK/France Other Total 13,98 11,83 11,269 5, Year 29,812 11,21 8,55 6,995 1, Japan UK Year 12 35,382 12,759 1,1 9,198 1,419 25/26 Annual Report : Oregon Wine Board 5

6 Relationship Building, Continued Presence in Asian Markets Results in Increased Distribution 2 Oregon winery owners and winemakers traveled to Tokyo, Japan in April for the annual trade tasting the most ever for the program. Nearly 2 trade and press attended the event, which featured an educational seminar on Oregon wine. Consumer and distributor receptions rounded out the marketing trip. Enjoy Oregon Wine Fair (a by-the-glass promotion) expanded to include 33 restaurants and boutique retailers. High performing accounts received a trip to Oregon wine country. Oregon wines were showcased at VinExpo Hong Kong, the leading wine trade show in Asia attracting nearly 7, visitors from a breadth of Asian markets important to our industry. This venue served to expose Oregon brands to key trade in upcoming markets such as Korea and Hong Kong. Inbound Trade Missions Support Export Market Activity 42 trade and 14 media representatives visited Oregon either through group or personalized tours. Funds supported travel for guests to wine country surrounding the events of Oregon Pinot Camp, Oregon Media Camp and the International Pinot Noir Celebration. Markets represented in these missions include Japan, Canada, UK, China, Korea and Hong Kong. Seminars and wine country visits highlighted the region s efforts with Pinot noir but also with warmer climate varieties from Southern Oregon and Walla Walla. RETAIL MARKETING Partnering with the Oregon Dairy Commission and local wine distributors, we coordinated an in-store promotion and Oregon wine destination giveaway at select supermarkets throughout the state in May to celebrate Oregon Wine Month. INDUSTRY COMMUNIC ATIONS GrapevineOnline continues to be our primary method of communication to the industry. Twice monthly, the newsletter is delivered via and is packed with opportunities, news stories and updates on our programs. Over 35 vineyards and wineries subscribe. In addition, Board Directors and staff visited each region throughout the state for Board and committee meetings and regional association gatherings. Meeting minutes are posted online so you can keep in touch with Board activity and policy decisions. 1,2 GrapevineOnline Bulletin 7/8/25 8/8/25 9/8/25 1/8/25 11/8/25 12/8/25 1/8/26 2/8/26 3/8/26 4/8/26 5/8/26 6/8/26 Subscribers and Readership 1, # of subscribers reading bulletin Subscribers reading one or more articles Subscribers 6 25/26 Annual Report : Oregon Wine Board

7 OREGON WINE BOARD RESEARCH Aligning with National Wine Industry Research Agenda Key to Future Success Oregon now has a voice in setting the national wine and wine grape research agenda with representation on the National Wine and Grape Initiative Board (NGWI), a nationwide coalition to advance the wine industry through research and education. NWGI board members work together to identify key focuses for research efforts that will have far reaching applications for many winegrowing regions. Once needs are identified, the American Vineyard Foundation and the Viticulture Consortium adopts many of NGWI s stated priorities and provides grant and private sector funding to enable field research. Finally, a centralized research database developed by the University of California- Davis provides a central resource where the industry can post research proposals and leading researchers can review research needs and apply for joint funding. Statewide Research Priorities Match Industry Needs With industry input, the Board and Research Committee identified a short list of research priorities and funded the following projects: Oregon Agricultural Statistics Service Vineyard & Winery Report Part of the Oregon Department of Agriculture, the Oregon Agricultural Statistics Service conducts a yearly survey of Oregon vineyard owners, growers and wineries to collect statistical industry data, including annual grape production, crush, planted acreage and total sales. The survey is posted online with hard copies distributed to industry members. Other wine producing states conduct similar surveys but this report provides richer, more detailed information on tonnage, crush figures, breakdowns of specific varietals and trends within growing regions and AVAs because of active industry participation and support from the Board. Oregon State University Completes Multi-Year Texture Study The influence of wine texture to overall wine quality has been the topic of exploration for Oregon State University over the past three years. The research team evaluated methods for recovering, analyzing, and identifying the yeast mannoproteins that are believed to interact beneficially with wine grape tannins to improve texture. Collaborating with Washington State University, researchers developed a method, suitable for winery use, to detect the mannoprotein-grape tannin interactions that occur during aging on the lees that are believed to beneficially modify wine texture. Results will provide winemakers with an objective tool to assess the influence of yeast lees. In addition, vineyard experiments were initiated to improve understanding of the role that vineyard site has on wine textural quality. Preliminary findings from this viticulture study were used to successfully apply for research funding through the American Vineyard Foundation and Viticulture Consortium West. Climate Research and Site Matching in Southern Oregon Monitoring temperature, phenology, and composition of important varieties grown in the Rogue and Umpqua Valley AVAs has been the cornerstone of this multi-year project and provides an in-depth look at spatial variations in important weather, plant, and yield parameters in the regions. Summary reports of the varietal sampling were made available for industry review, and data and knowledge derived from the research will form the basis for applied research on varietal-site suitability. Oregon Vineyard Database (OVID) The Oregon Wine Board supervised a $44,3 grant to the Oregon Vineyard Database (OVID) from the USDA Risk Management Agency to complete this industry database and assess its use for wine grape growers in Washington and Idaho. These funds were part of a 25/26 Annual Report : Oregon Wine Board

8 larger grant awarded to the Washington Wine Industry Foundation (WWIF) to research user-friendly, timely, basic industry information and tools for the region s grape and tree fruit growers to use in decision-making. Phase II, which was partially funded by the grant, completed the core functions of the database, including description of vineyard sites, soils, and plantings, recording of vine and fruit growth bud break, bloom time and veraison - and creation of online discussion groups on management topics. Phase III developed the vineyard management functions of the database that allow growers to create digital records of their vineyard management practices, including descriptions of activities in canopy, fruit, cover crops, pests, nutrition, and water management. Growers can share vineyard information and management records with selected business partners, wineries, and other growers. These records can contribute to an annual inventory of vineyard sites, plantings, and crops. OREGON WINE BOARD EDUCATION INITIATIVES Education Extends with Statewide Workshops and Communication with Extension Service Emphasis was placed on building the OSU extension service in the Willamette Valley and Southern Oregon, and working with the University to help fund research, educate extension agents and communicate those learnings to the industry. The Willamette Valley extension position was filled and seed funding was allocated for a future Southern Oregon position. The Research Committee developed a regional workshop plan to deliver learnings for specific regional issues and problems. Workshops will provide extension agents with a forum to delve deeper into research findings and will also enable experts in other 6 areas to offer seminars and courses. Board members also met with representatives from Chemeketa Community College and Southern Oregon University to Number of Attendees discuss future partnership opportunities. Symposium Delivers Targeted, Valuable Content and Revamped Trade Show Packed with enology, viticulture and management content highlighting current issues and practical applications, the 26 Oregon Wine Industry Symposium attracted nearly 5 attendees. Attendee surveys rated all content a good rating or better. In addition to seminars, the Symposium featured a sold out trade show of 46 exhibitors. The trade show, combined with sponsorships, provided significant revenue and helped the Symposium generate a profit. These additional funds were reinvested into the program to recruit renowned speakers and industry experts, and keep attendance costs low for industry members. Symposium Attendance /26 Annual Report : Oregon Wine Board

9 OREGON WINE BOARD FINANCIAL REVIEW Original Revised July 25 June 26 Budget Budget Actual REvenue Tonnage Tax 499, 643, ,82 Privilege Tax 198, 228, ,268 Interest Revenue 4,537 5,365 Total Revenue 697, 876, ,435 Expenses Research & Education Marketing Research & Stats 1,5 1,5 1,5 Enology & Viticulture Research 133, , ,189 Urgent Solutions 14,78 3, Education -15,263-15,484 Total 144, ,54 137,25 Marketing Media Relations 63, 66,956 63,427 Export Grant Administration* 22,85 24,5 25,953 Tourism 9,2 25, 25,63 Website 15, 35, 32,29 Retail Marketing 1, 12, 1,972 Sustainable Agriculture Programs Support 8,75 8,75 8,75 Total 128,35 172,26 166,995 General and Administrative Office and Operating** 76,85 87,11 94,678 Equipment 12, 24,761 31,358 Rent 26,566 15, 16,621 Employee Compensation and Benefits 295,2 294,18 282,284 Total 49,851 42,79 424,941 Total Expense 682,84 741,5 729,141 * For grant writing and administration of $22, received by the USDA Market Access Program grant to promote US wines in foreign markets ** Includes board and industry meeting costs, administrative service costs, subscriptions & memberships, staff travel, supplies, telephone, etc. 25/26 Annual Report : Oregon Wine Board

10 For more information, contact the Oregon Wine Center at or visit us online at