Spraying for powdery mildew can be ~25% of the cost of farming a vineyard and be one of the key elements of a grower’s carbon footprint. Sarah Placella, Founder and CEO of Root Applied Sciences, has taken her deep research in microbes and created a data-driven solution to monitor the air for mildew and spray only when needed. Root can cut ~5 sprays per season, and growers have an average 5x ROI using the system.

Detailed Show Notes:

Root Applied Sciences (“Root”) - airborne pathogen monitoring for farmers, like an “early warning system”

• Founded in 2018, 1st work with/ growers in 2021
• Powdery mildew (“PM”) is a big problem for vineyards in CA (March - August)
• Currently only markets to vineyards, done work with/ strawberries, leafy greens, can do anything with/ DNA and small insects
• Napa, Sonoma, Central Coast today

HW enabled SaaS model - Root owns and maintains devices

• Device in the field, just above the canopy
• Send data (battery status, device status, temp, humidity) to the cloud over LTEM connection
• SW to see the data
• The grower collects samples from devices 2x/week and sends them to the lab
• Growers can share data with/ each other

Has an automated prototype in process

• Will not need a grower to collect and send samples
• Fundraising “seed” round for an automated system

~25% of operational costs are spent managing PM

• 6-16 pesticide applications/season
• Conventional growers have fewer applications, but spend more for each one
• Organic may be spraying every week
• PM takes 7-10 days to enter plants. See 2 peaks of PM before growers can see it, once PM exists, it's hard to control
• Root can cut 20-80% of sprays (~5 sprays/season), lengthens spray intervals when low risk
• ~$100/acre spray cost per application, ~$300/acre if need to spray by hand (e.g., steep slopes)
• 2024 - saw PM on Mar 29 in Carneros, growers planned 1st spray 4/16, moved up 1st spray to 4/2; cut sprays and more clean fruit
• Root data enables more biological sprays (have shorter efficacy windows, are more environmentally friendly, and data gives more confidence to try them)

Other benefits of Root

• Clean fruit - faster fermentation (5 days faster), higher quality, possible increase in yields
• Environmental (less sprays, tractor use) - less diesel use, lower soil compaction; for 1 grower, 1 spray is a 13% reduction in carbon footprint
• Farmworker health - fewer chemicals in the air

Pricing

• $3,000/season/monitoring station all-in
• Avg grower has 4 stations, 1 every ~30-50 acres
• Precision growers or rolling hills, 1 station every ~10 acres

~5x ROI

Barriers to adoption

• Risk aversion
• No access to a carrier to send samples
• Grape prices down (budgets)
• More adaptive sprays can make operational scheduling harder for vineyard management companies

Other PM solutions

• “Spray and pray” (~90% of growers) - calendar-based system
• Weather-based tools don’t work well and may be impacted by climate change
• Spore trapping tools (e.g., spinning rods, roto rods) have sticky material that reduces sample size and efficacy, UV light exposure degrades PM
• Image-based analysis (new) - lots of data to send, samples ~2L air/min vs 400L air/min Root, does not specify type of PM present (~40 types)

Product roadmap - more power efficiency, integrating a solar panel

Has done work with/ downy mildew, botrytis, vine mealybug, and can detect them, but does not add a lot of value

Excited about growth in microbial mildewcides (biologicals)

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With over 1,000 kosher wines from across all major winegrowing regions, Royal Wine is the largest importer (and producer and distributor) of kosher wine in the world. Gabe Geller, Director of PR & Wine Education, discusses the market for kosher wine, how and where it is made, and how Orthodox Jews hear about them.

Detailed Show Notes:

Gabe’s background, at Royal Wine >9 years, wine industry for 16 years (retail, consulting, marketing)

Royal Wine - world’s leading importer, producer, distributor of kosher wine

• In US, carries >1,000 kosher wines from every major wine producing region
• Owns Kedem, Herzog, and other brands

Can’t taste kosher wine, similar to other wines

• Produced only by Sabbath observant Jews
• No non-kosher ingredients or processing agents (e.g. - fining agents)
• Has kosher certification on the bottle
• Mevushal (“boiled”) - for some kosher wines, uses flash pasteurization which is also used by some non-kosher wineries; tend to taste more approachable initially, but ages longer

Israel #1 producer of kosher wine (~5M cases), USA (~350k cases; mostly Herzog), France (~350k cases across many wineries)

Kosher wine market

• Observant Jews drink kosher wine year-round
• Jews use wine in almost every religious ceremony, considered the “holy beverage”
• Passover 1st night dinner (Seder), every adult is required to drink 4 cups of wine (can by any kosher wine or grape juice), each cup symbolizes 1 way God saved Jews from slavery
• Jews who don’t do kosher normally will for Seder
• 40% of kosher wine in the US is purchased for Passover (used to be 60%, declining as more quality kosher wines available, so more is being bought year-round)
• Top markets - Israel, US (NY/NJ #1, FL, CA - CA Jews drink less wine than East Coast Jews), France

In top kosher markets, large retailers (e.g. - Total Wine) will have a kosher selection, some kosher wine stores, and online retailers (e.g. - Wine.com) also carry kosher

Of the 15.7M Jewish people (2023), only a small portion keep kosher

Some kosher wines sold to the general market (e.g. - Bartenura Moscato #1 imported Moscato the past 15 years, most don’t know it’s kosher; Jeunesse semi-dry wines have a distinct consumer appeal)

Israeli politics / Gaza war have lead to people buying more to support Israel

Marketing to the Orthodox community

• Identify sects with stricter mevushal rules (e.g. - 101F vs 105F) and promote specific brands that meet those
• Print advertising big (English, Yiddish), many do not use as much internet, none on Sabbath, take in news via print
• Whatsapp #1 social media for Orthodox Jews (or Telegram)

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Though one of the oldest wine-growing regions in the world, Israel is still exploring its potential after Muslim rule after World War I. Victor Schoenfeld, Head Winemaker, and Walter Whyte, VP of Sales for Yarden Imports, explain how Golan Heights Winery has set the bar for the quality of Israeli wine and spreads its wines globally, both within the Jewish community and beyond.

Detailed Show Notes:

Victor Schoenfeld - CA native, went to UC Davis, recruited to Golan Heights Winery in 1991

Walter Whyte - managed officers’ clubs in the military and learned about wine

Golan Heights Winery (“GH”) background

• Founded 1983 to export wine of high quality
• 26% exported today (production to increase 30%, primarily for export)
• NE Israel, Syrian border, 33rd parallel (like San Diego)
• Volcanic plateau, Mediterranean climate, high elevation (1,200-4,000 ft)
• 19 varietals, known for traditional method sparkling, Yarden Cabernet
• Zelma Long, former consultant
• Price points range from $15 (Mt Hermon) - Yarden Cab ($50) - $80+ - $1,000 (Cru Elite)
• Manage 40% of vineyards (to increase), rest on long-term contracts
• 500 vineyard blocks, harvested & vinified separately
• Has two propagation vineyards and a nursery

Israeli wine history

• Journal of Science (2023) - identified two winegrape domestication events 11,000 years ago - Caucasus (Georgia) and Western Asia (Israel)
• Discovered ~30 ancient wine artifacts
• Golan Heights is the coolest climate region in Israel
• Muslim rule 738 - WWI - old varieties died out

Israeli war impacts

• Minimal grape growing impacts (1 missile fell on vineyard), but emotionally challenging
• Support in the US for Israeli wine, reduction in sales in Europe after Oct 7, 2023 events

Israeli wine market

• GH demand > supply in Israel
• Per capita consumption is low; a large segment does not drink due to religion
• The food scene has exploded in the last 20 years, but many restaurants do not serve Israeli wine
• Top 5 markets - US, Canada, Europe, Far East (Japan)
• Top US markets - NY, NJ, CT, FL, TX, IL, CA
• Historically, wines went to religious markets, expanding into secular
• internationally marketed as high quality, not as kosher; Angelo Gaja distributes in Italy

Differentiating GH

• “Oldest new world winery in existence”
• Marketing messages: World-class wine, kosher, then from Israel
• High elevation, volcanic soils on 33rd parallel (Etna is 37th)

Marketing

• Grass roots, get people to taste the wine
• Active in Jewish organizations, ads in Jewish publications, tasting events sponsored by Jewish groups
• Strong presence in Kosher wine stores

All GH wines are kosher

• 2 types - Mevushal (cooked/pasteurized) - required for some, esp Kosher restaurants (catering, weddings, bar mitzvahs); Non-mevushal
• Many wineries do both
• Everything used in winemaking needs to be certified kosher (e.g., yeast)
• Can’t use things like isinglass
• GH's whole facility is kosher
• “Could double business if made mevushal,” but will not to maintain quality

Food and wine pairing is not typical. Traditional Middle Eastern cuisine, “mezze,” has a lot of different flavors at once

Passover dinner is coursed, and every adult must drink four glasses of wine (or grape juice)

Yarden Cru Elite - $2,000 per pair

• 265 pairs related, including NFT, sold directly from winery
• Celebrate the 40th anniversary with collectors
• Cabernet Sauvignon, single vineyard, single block, two single barrels
• Launched at an Israeli restaurant in Singapore

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Tracking vine trunk movements down to the 0.5-micron level, Phytech is leveraging technology to optimize vine irrigation. Cody Ashurst, Director of Vineyards, and Lex Palmer, Marketing Manager, discuss how their solution optimizes and automates irrigation today and how it can be extended to optimize fertilization, harvest dates, and much more.

Detailed Show Notes:

Phytech - a global SaaS company that optimizes agricultural irrigation

• Technology includes dendrometers, irrigation pressure switches, soil moisture probes, and frost & weather stations
• Crops include nuts (biggest), citrus, pears, getting into row crops
• Vineyard solution primarily West Coast / CA, pursuing Portugal, Spain, Italy, Chile, Mexico, Texas

Dendrometer - digital devices mounted onto vine or tree, measures expansion and contraction of plant trunks at the 0.5-micron level (70 microns = 1 human hair)

Vineyard solution includes a dendrometer, soil probe, website, and mobile app with wireless comms and data loggers connected via cellular, satellite, or wifi

• The solution can be adjusted based on the type of farming (e.g., quality or quantity), rootstocks, clones, soil types
• Tracks trunk size and soil moisture to signal irrigation needs
• Optional: pump/value control for irrigation
• Can schedule up to 2 weeks of irrigation
• Can monitor fertilizer inputs (cost of fertilizer up 600% last 5 years)

Benefits:

• Don’t promise water savings, but see up to 60% less water use
• Improve quality by knowing when veraison happens and when vines stop growing or are stalling
• Optimize fertilizer, diesel, and electric pump costs
• Reduce labor for irrigation if automated
• The system logs data, enabling knowledge transfer when people leave
• Case study: High-end Napa vintner got WE94 points 1st vintage, then used Phytech in a heat wave year and got WE97 w/ tailored post-veraison irrigation; other growers had a 30% loss, the winery had a 3% loss
• Case study: one ranch was expecting a 50% loss, but down to 3% with irrigation changes

Pricing - depends on # of sites in a block

• There is a small upfront fee for installation
• Monthly SaaS fee (~$50-80/acre/year), includes maintenance
• Weather station ~$700/year (vs ~$3,500 to buy)

Case studies (videos on website)

• Ultra premium Napa winery Neotempo
• Larger Mendocino grower Bonterra

Marketing most through word of mouth/referrals

• Digital media, video testimonials, trade shows & panels
• Video in digital media has been the most valuable
• Connecting 1:1 is very helpful
• Phytech is more holistic than other solutions

The most significant barrier to adoption is technophobia

The subscription-based model eliminates “tech graveyard” growers have

Product roadmap

• Predictive brix/pH model (growers input brix, system tracks weather, vine response) to predict harvest date by block
• GDD (growing degree days) monitoring tracking temperature and humidity in the field at the block level
• AI Advisor to look at past data and current practices and enable recommendations

Other exciting innovations - Autonomous spraying and tractors (Guss, Monarch), optical arrays for vine health (Scout), microalgae for soil health (MyLand)

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After struggling with tracking vineyard data firsthand, Shawn DeMartino, CEO and Founder of Sentinel, decided to create a solution with his partner. Enabling vine by vine mapping and data collection that could stand the test of time enables vineyard managers to increase the lifespan of a vineyard, manage viruses, and effectively create a “medical record” for each individual vine.

Detailed Show Notes:

Shawn’s background - winemaking, viticulture, now general management

Sentinel was a Covid project that became real, software that collects individual vine information over time

• “Patient medical system of record for vines”
• The solution includes a mobile app, desktop platform, and high-accuracy GPS (receivers that clip onto phones)
• Maps all the vines in the field
• Configurable data collection forms
• Available in 5 countries currently

Mapping the vineyard

• Create a 3D model with lat/long and elevation
• Basics (variety, clone), images, comments, discrete statuses (e.g., life stage, virus status)
• The vineyard mgmt team populates data, can walk up the vines and record
• Work with/ Sentinel to put in bulk metadata (e.g., block info, varietal)
• A client mapped 100 acres in 1 week

Work order function

• E.g., irrigation can be recorded
• Roguing, planting, and grafted statuses can auto-update when the work order is completed

Core benefits

• Extend the life of the vineyards
• Virus/disease management, see the program more clearly, identify asymptomatic vines in hot spots (case study: ~10% of vines asymptomatic)
• Optimize pick areas (through mapping flavor profiles)

Pricing

• Mostly software, hardware costs small
• Annual subscription based on acres, not users (<1% of farming cost)
• Biggest growers ~$2k/year

ROI example: client roguing 1% of vines/year w/ growing virus problem, Sentinel enabled them to get ahead of the problem in 1 year

Marketing mostly organic search

• Articles and podcasts helped
• Last 18 mo, mostly word of mouth
• Referral program: The referrer gets a bottle of Krug

Barriers to adoption

• Worries about time requirements; the goal is to collect data when already in the field
• Worries about less flexibility to manage vineyard; full customization of data enables more flexibility
• Next on the product roadmap - continue to flesh out more work order functionality

Other tech Shawn is interested in

• Winery management platforms (e.g., Innovint)
• Soil moisture probes for irrigation

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With the recent launch of a new $300 retail icon wine, Boulder, Kaiken continues to explore the potential for luxury wines from Argentina. Building on the last 15 years of Kaiken's other icon wine, Mai, Anita Correas, Commercial Director, and Gustavo Hormann, Director of Winemaking, discuss the global market for luxury Argentinian wines, how they approach launching them, and the brand-building impacts for the Kaiken brand.

Detailed Show Notes:

Kaiken background

• Founded in 2002 by Aurelio Montes (Chile)
• "Kaiken" is the name of a wild goose that crosses between Chile & Argentina
• Exports to 60 countries
• Winery in Vistalba, Mendoza (28ha), vineyards in Agrelo (60ha) & Los Chacayes, Uco Valley (150ha)
• 60% on-premise
• Frances Mallmann restaurant at the winery

Recently launched new luxury tier/icon wine - "Boulder"

• $300 retail price, 3,700 bottles
• Developed over the last 10 years
• Unique 3ha block in Los Chacayes due to overflow of Arroyo Grande, full of big rocks/boulders
• Malbec (64%), Cabernet Franc (28%), Petit Verdot (8%)

Boulder launch plan

• Launched in Buenos Aires, Hong Kong, Korea, Brazil (São Paulo, Argentina's #2 export country), US
• Brazil's event had a more direct impact on sales
• Mostly press/trade events that are smaller, in-person
• Likely less on-premise than Kaiken overall, more hand-selling to collectors and Michelin Star restaurants
• VR w/ Google Glass to see the vineyard up close and go inside the soil has gotten positive feedback, but it is more expensive than a regular video (required 3 days of video shoots and a special camera)

Mai - prior icon wine

• $100 retail price, 12,000 bottles
• Launched in 2009 from a 120-year-old vineyard
• Marketing more "maintenance" now
• 2021 - redesigned packaging, got 98 pts and Top 100 from Suckling
• Primarily sold in Argentina, then UK, US, Brazil, Japan

70% of Argentinean wine is consumed domestically, delaying the need for exports

• Average export ~40% higher price than Chile (export-focused market, ½ the population, 2x wine production vs Argentina)
• More high-end wineries in Argentina vs ~5 in Chile

>$100 market for Argentine wine - "not a huge market"

• Big domestic market - much of Mai, Boulder sold domestically
• Consumers looking at super high-end often do not look at the country of origin but more at the concept of the wine
• Value Prop for Argentine luxury wine - not influenced by oceans, high altitude, dessert wines, driven by the Andes

Return on Boulder is more than sales, but brand building for Kaiken

Focused on relationships with importers

• Want long-term relationships as they represent the brand globally
• Reach collectors through import partners
• Has affiliated importer in Argentina

Montes relationship

• Was helpful on launch to piggyback on Montes brand
• Now Kaiken is more independent and only shares importers in a few countries (it used to have the same ones)

Kaiken Ultra ($26) awarded Wine Spectator Top 100 (#30, highest Argentine wine)

• Wine drinkers can graduate from Ultra to Mai and others
• Kaiken's focus for each range of wines is to over-deliver for the price point vs linking the wines

Good press in 2024 for Kaiken - #1 New World Winery from Sommelier Awards, Boulder rated best Argentinian red blend by Patricio Tapai (wine critic), Estate Malbec was Wine Spectator's best value wine

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With many macro headwinds for the wine world, Gino Colangelo, founder of Colangelo PR, felt the negative and often poorly fact-checked press around alcohol and health posed an existential threat. Teaming with Karen McNeil of The Wine Bible and fellow PR leader Kimberly Charles, they founded Come Over October, a campaign to create a positive narrative around wine. With freely available media assets and over 120 partners, the movement, in its first stretch, has shown the power of focusing on the positive elements of wine.

Detailed Show Notes:

Macro wine challenges include marijuana, Ozempic, and RTDs, but “no alcohol is healthy” messages from WHO and other gov’t organizations potentially pose an existential threat to the industry

Come Over October (“COO”) founding

• Campaign to advocate for wine
• Commission research - 60%+ 21-39-year-olds would change consumption if alcohol health guidelines changed, 60%+ participate in Dry January or Sober October (which equates to 17% of the year)
• Karen McNeil, writer of The Wine Bible, got backlash over post against Dry January and ideated Come Over October
• Kimberly Charles, owner of an SF wine PR firm, joined as co-founder
• Started the company in spring 2024 (Come Together, a Community for Wine) as a mission-driven company to advocate for wine

Fundamental principles

• Had to reach consumers
• No negativity towards other alcoholic beverages
• Involve everyone in the wine world

The goal for success: turning the narrative around wine positive (e.g., more articles on the social benefits of wine)

• Measured by impressions of negative vs. positive articles about wine
• In a battle for hearts and minds vs just getting the facts right

Asked for two things from partners

• Modest check - $1-10k to pay for campaign, website, social media, media asset creation
• Activation - use campaign assets (free to all) to run a COO campaign

Example activations

• Total Wine - in-store signage, direct marketing, social media posts
• Constellation Brands - bought in-store radio ads for 800 Kroger stores under the COO banner (promoting Kim Crawford, Meiomi, & The Prisoner with Karen McNeil doing voiceover) and reversed negative sales trends in stores
• Jackson Family - free tasting, events, cash support for COO

Campaign success metrics

• 120 companies participated
• >1,000 retail stores engaged (e.g., Kroger, Total Wine, Gary’s)
• ~$100k donated media (e.g., Wine Enthusiast, Vinepair, Wine Spectator)

Next Campaign - Spring 2025

• Focus on the food message
• Differentiate wine as food vs alcohol
• Continue togetherness message
• Bring in chefs, restaurants
• Then roll back into October
• Would like to hire a Director to run the company

Health debate

• Loneliness epidemic - 30% of males don’t have close friends
• Wine has a unique ability for positive wellness in bringing people together
• Does the industry need a positive health message/research to turn things around truly? (e.g. - wine → better relationships / friendships → stress reduction → better health)
• 60 Minutes show on The French Paradox (1991) changed the wine world and led to 30+ years of growth
• Not yet seeing health impacts of marijuana usage as it has only been legal recently

Contact info: info@comeoveroctober.com or gcolangelo@colangelopr.com

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With a second year of volume declines, 2024 has been challenging for the wine industry. Digging deeper into what trends are shaping the wine industry’s malaise, Cathy and Chris Huyghe, founders of sales analytics software platform Enolytics, have uncovered important insights into the US DTC wine market, including the decline of women and the divide between the affluent and middle class in wine purchasing. Enolytics has also developed a free service for the industry called EnoInsights, which is worth checking out.

Detailed Show Notes:

Enolytics launched b/c no one in wine knew what to do with their data

• Builds sales analytics software for the wine & spirits industry for both DTC and wholesale depletion data
• Customers primarily small (<$1M DTC revenue) & medium-sized, growing in larger wineries
• US, Canada, Australia - primarily US w/ 80% California

Partnership with WineDirect

• Exchange anonymized data every quarter and analyze it to build reports for the industry
• ~2k wineries in database, ~1k wineries analyzed after removing outliers

2024 DTC trends

• Revenue flat-ish, volumes down significantly
• Women purchasing less (-4%) - overall (-3%), men (-2%); reverses a recent trend of women buying more wine, not generationally different, impacting white (-5%) and rose (-10%) more than red (-2%)
• Affluent areas are doing better (flat revenue, lower volume), middle-class & poorer areas are down more
• Wineries increasing pricing (+5% through Q3 2024), AOV up due to pricing
• VA is doing reasonably well, CA - particularly Napa and Sonoma, hardest hit - they largely depend on tourism (70% of purchases from people outside CA), Central Coast CA is not down as much (70% of purchasers from CA)

Hospitality/visitation declined 7% (# of purchasers) in 2024 (also declined in 2023)

• Impacts wine club sign-ups, with hospitality the main club sign-up engine

Wine club growth -3% (# of members) in last 12 months

• 2020 +7%, 2021 +11%, 2023 -1% (20% attrition through Q3, 28% total; 19% sign-ups), 2024 -2% (19% attrition, 17% sign-ups)
• Club doing best of all major DTC channels - revenue flat, volume down
• Less expensive wineries getting hit more (less affluent customers)
• Customizations up - 20% of shipments, higher revenue per shipment
• Avg club tenure falling
• Best practices - better training of tasting room staff, use data to manage attrition (Enolytics has an algorithm to determine attrition risk; wineries that use it see 20% less attrition than average), use data to target customers to join the wine club (high spenders that are not in the club)

Website sales have the most significant room for growth, -42% since 2022, still up from pre-pandemic

• 2020 +250% in online sales
• Texting, “concierge” services, more targeted telemarketing (highest AOV channel, 6x tasting room; potential to leverage tasting room staff)
• Average winery emails the entire list, gets lots of unsubscribes, recommends hyper-segmentation, creates messages for 100-200 people

Events - same levels as 2022

• Opportunity to take tasting room on the road
• Recommends targeted events with a specific goal
• Go to places where there’s an existing customer base

Cross-channel marketing can be effective, e.g., using DTC data to sell out a restaurant event

Wholesale data partner - VIP - includes “can buy” and “lost” accounts

Regional wine marketing boards (VA, Paso Robles) engaging Enolytics to do studies on DTC data - currently doing baseline analysis and onboarding more wineries, sending quarterly reports

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