06.10.2010  
 

Asia Beckons Idaho Wines

Budding wine industry follows Washington/Oregon lead into exports

 
by Peter Mitham
 
3 Horse Ranch Vineyard Hong Kong
 
Oganically grown Pinot Gris from Idaho's 3 Horse Ranch Vineyard soon may grace Hong Kong wine lists.
Eagle, Idaho -- Idaho wineries aren’t being left behind as Northwest wines gain traction in Asia. Washington and Oregon signed a memorandum of understanding in late May with the Hong Kong Commerce and Economic Development Bureau that promises to “strengthen co-operation in promoting wine-related trading, tourism, investment, education and the fight against counterfeits” among the two Pacific Northwest states and Hong Kong.

Washington exported $721,414 worth of wine to Hong Kong in 2009, while Oregon exported $68,946 worth. California, the largest wine-producing state, exported $27.4 million of wine to Hong Kong. But wineries in Idaho, which hasn’t shipped a significant amount of wine to Hong Kong since 2007, believe Asia holds opportunities as awareness of Pacific Northwest wines grow.

Reached atop his tractor in amid a block of Pinot Gris, Gary Cunningham of 3 Horse Ranch Vineyards in Eagle, Idaho, told Wines & Vines that export markets are going to be key as his production grows to 10,000 cases this year. His was one of 15 wineries attending an export seminar hosted by the Idaho Wine Commission this past March.

“I’m doing it from an exploratory basis -- to get ready for it when I’m ready for it,” he said. “Next year will probably be the first year we will have an extra 500 or 1,000 cases of Pinot Gris and an extra 500 or 1,000 cases of Sauvignon Blanc and maybe Syrah and a Cab in lesser quantities that we will actually want to sell into an export market.”

The appeal of organic wines in markets such as Taiwan is a draw for Cunningham, whose vineyards have organic certification from the U.S. Department of Agriculture. “We’re looking at … providing really good wines to an organically driven market,” he said, noting that hotels and similar organizations are the kind of outlet he’d like to cultivate. “They can bring in 100 cases of a world-class Pinot Gris that’s organically certified from Idaho -- and that also happens to be a really good bottle of wine.”

But unlike some business owners who see exporting as a strategy to move excess product out of home markets, Cunningham doesn’t want to short his domestic outlets. He recently began supplying some Costco stores and high-end grocers, and it wouldn’t make sense to favor exports over markets close to home unless there is a compelling reason to do so.

Cunningham said he took a call earlier this week from a potential client in China, but couldn’t commit to a deal right now for just that reason. “I said, I just don’t have any to sell right now,” he said. “But if an opportunity came up where there was a really long-term relationship with a good buyer in an organic market, then I would go ahead and make a commitment. And then I would know that I’d committed 300 cases to that market for the following year.”

Coeur d’Alene Cellars
in Coeur d’Alene, Idaho began exporting to Japan following a Washington Wine Commission event in Tokyo three years ago. Its wines use Washington state fruit, so it was able to spark interest in its product both on its own merits but through the Washington state connection.
Kimber Gates Coeur d'Alene Cellars Kimber Gates Idaho
 
Kimber Gates, co-owner/GM of Coeur d'Alene Cellars, found a Japanese market for her wines, made from Washington state grapes.
Coeur d’Alene general manager and co-owner Kimber Gates believes Idaho wineries have an opportunity to build recognition as part of growing awareness of what Pacific Northwest wineries are doing.

“I think they would love to try more from the Pacific Northwest,” she said. “The potential for Idaho is just as high as the potential for Washington. … It was easy for me, once I was able to talk to somebody in Japan and they were able to taste the wines. It sort of sells itself. So it really is a matter of exposure.”

Slow growing this spring

A cool spring has left vineyards in Idaho about four weeks behind. Gary Cunningham at 3 Horse Ranch, said his vines are the latest they’ve ever been, with bud break occurring only in recent days. “The ground is just now starting to warm up, and to these grapes it’s April,” he said.

Still, the vines have been responding well to heat over the past week, and Cunningham expects his white grapes to recover promptly, but will closely monitor the progress of his red grapes.
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