Napa Valley, Move Over! - New York's Boutique Vineyards Beating California Wines in Competitions

One of the best-kept secrets of New World wine is that Napa Valley does not have a corner on the market. New York vineyards have been coming into their own and snatching medals from under the noses of California winemakers. More importantly, the legislation enacted in New York over 30 years ago paved the way for legislation in many other states - California included - that have made boutique vineyards economically feasible. The results have pleased the palates of wine drinkers the world over.

With vineyards on Long Island, the Finger Lakes, and in the Hudson Valley established in the early 19^th century, New York has long laid claim to having some of the oldest vineyards and wineries in the country. But, by 1976, the number of working wineries in the state had fallen to 19. Today, largely thanks to the Farm Winery Act, the number of working wineries stands at 239, with all of the growth occurring in the small, largely family-owned, "boutique" businesses that now dot the rural landscape throughout the state.

Just this past year, Baldwin Vineyards of Pine Bush, New York, received the only Double Gold Medal awarded to a New York State Winery (for their Raspberry Wine - made from BlackRaspberries) at the Amenti del Vino Wine Competition, held in Mystic, Connecticut. This makes a total of six Gold Medals awarded to Baldwin's Raspberry Wine.

Established in 1971, The Amenti del Vino Wine Competition was open to all wineries in the world, and this year's competition included a total of 347 separate entries. The awards were based on blind tastings by 25 expert judges, which included a majority from other states, including a large contingent from California. Judges included prominent wine writers, restaurateurs, retailers and wine educators. Four-judge panels determined the initial awards, with top-scoring wines evaluated by all 25 judges for Best of Show. Only Seven Double Gold Medals were awarded this year. The other six Double Gold Medals were awarded to four California wineries and a winery from Illinois, all for dry red wines.

In addition to Baldwin's Double Gold Medal, four New York State Wineries were awarded a total of six Gold Medals for their wines. Hunt Country Vineyards - in the state's Finger Lake region - was awarded three Gold Medals, for their Vignoles, Late Harvest Vignoles, and Vidal Ice Wine. Baldwin Vineyards also garnered a Gold Medal for Trilogy - a Red Raspberry Wine. Peconic Bay Vineyards, on Long Island, was awarded a Gold Medal for their Merlot, and Keuka Springs Vineyards (Finger Lakes) earned a Gold Medal for their Crooked Lake White.

The growth of such respectable wines coming from an east coast vineyard has been generations in the making. While grapes have long been a staple agricultural crop in the state, for years it was assumed that the only varieties that would succeed were those grown on a North American Concord root stock. Concord grapes are great for the table and the juice bar, but they make terrible wine. But changes in technology, and the discovery that suitable European vines could succeed in New York, sparked a renewed interest in viniculture throughout the state.

Thirty years ago, former New York State Governor Hugh Carey signed the Farm Winery Act into law, making it possible for New York to profitably grow its wine industry.

According to Robert Ransom, owner of Rivendell Winery in Gardiner, New York and The Vintage NY wine shops (and now restaurant) in Manhattan, the legislation sparked similar laws in other states, as well, that made it economically feasible to operate a small winery.

"It was the beginning of legislation that made it possible for boutique wineries to exist," said Ransom. "Otherwise, today there would be only big corporate wineries in this country, because the small operations can not afford to utilize the three- tiered distribution system that the big industry uses."

In retrospect, the concept behind the legislation seems quite simple. The state legislation - for the first time - allowed wineries using all New York grapes and producing up to 50,000 gallons of wine annually (now raised to 150,000 gallons) to sell their product directly to consumers, restaurants and wine shops, rather than being forced to work through a wholesaler. This meant that the winemaker could now reap the full benefits of his labors. If a winery sells a bottle of wine directly to the consumer for $10, for example, the winemaker gets to keep the entire $10. If it sells it to a restaurant or wine store, the winery gets $6.67 (on average) for the bottle. But when a winery deals with a wholesaler, only $5 for the $10 bottle returns to the winery.

"I could never have stayed in business, if I had not been able to sell wine directly to consumers," said Ransom. "In fact, the New York legislation actually made what has happened in the Napa Valley and most of the agri-tourism industry possible. They all used New York's law as the model."

In years since, both state and federal legislation has been added to the original Farm Winery Act to enhance direct marketing opportunities for small wineries and vineyards and eliminate unnecessary regulations. The results has been that significant competitive differences between the boutique businesses and the corporate wineries have, basically, disappeared and wine is again flowing profitably from the state's hundreds of vineyards. Collectively, New York State wineries now contribute over $6 billion to the state's economy, delivering new jobs, capital investment and significant sales tax revenue for the state's coffers.

According to statistics published by the New York Grape, Grape Juice and Wine Association, as of 2004 (the year for which there are statistics, currently), the industry now accounts for 36,000 full-time (equivalent) jobs, which pay out a total of $1.3 billion in wages annually. New York winery sales account for $420 billion, with grape sales topping another $30 million.

The acreage devoted to wine and grape growing activities now tops 31 million acres, statewide, with 1,384 total vineyards (not just wineries). Wine-related tourism accounts for 4.14 million of the visitors to the state each year and, as an industry, accounts for $312 million in total revenues. In all, the wine industry in New York also sends over $427 million a year into state tax coffers.

"None of this would have happened without that legislation," said Ransom.

In addition to its actual provisions and amendments, the Farm Winery Act has served as compelling proof that enlightened public policy is not only good for the industry, but for the economy as well, making it easier to get changes enacted. For example, in the 8 years following the Act, 43 new wineries were created, and in the 15 years since the New York Wine & Grape Foundation was created, 148 new wineries opened with the growth rate doubling in the past few years.