Winery Owner Calls for Creation of New York Wine Council, Millions More in State Support

By Evan Dawson, Managing Editor

Carlo DeVito, owner of Hudson-Chatham Winery in the Hudson Valley, spent a long time studying the numbers. To him, they told a grim story -- New York wine continues to grow as an industry, but New York State offers less support each year.But in other wine-producing states, government support is growing to match the industry.

Virginia's state government offers far more support, and DeVito noticed that even Ohio is squashing New York when it comes to state investment.

Armed with the numbers, DeVito met on Monday with members of the state assembly, Senate and Governor Andrew Cuomo's staff to discuss his proposal for the creation of the New York Wine Council. DeVito figured it was a waste of time to simply ask the state for more money -- especially in lean times -- so he made an extensive presentation that included comparisons to other states, recent trends, and benefits of further investment.

"I didn't meet a single person who didn't understand or appreciate our position," DeVito said afterward, noting that he went with the support of 13 other producers, including flagship Finger Lakes producer Hermann J. Wiemer. "Lawmakers said that this is a tough time to ask for more support, and I respect that. But we believe that the return on state investment is enormous, and we showed them that."

His proposal would dramatically alter the relationship between New York state and its growing wine industry. DeVito is seeking at least $1 million in state support, with an eye toward more, and he wants to see the creation of a New York Wine Council.

Such action would not, DeVito explained, seek to eliminate or diminish the New York Wine and Grape Foundation. "Not at all," DeVito said. "It would be a different entity with a different mission. The Foundation's work is too important and they're underfunded as well. In our view, they're a vital partner."

On his website, DeVito laid out the statistics and arguments he took to Albany. You can read it here. Some highlights include:

Catching up to other states

"Virginia is setting a great example," DeVito said. "Their industry is certainly smaller than New York's industry, but they're investing in ways that are very serious and effective. What a message that sends. You can't doubt the impact that has on growth, tourism, and their economy."

DeVito presented the following figures:

Virginia
Wineries: 135
Total budget: $4.5 million ($1.5 from agriculture / $3 from tourism)
WAS INCREASED THIS YEAR BY LEGISLATURE AS A GROWING STATE BUSINESS

Ohio
Wineries: 125
Total budget: $1 million
WAS INCREASED THIS YEAR BY LEGISLATURE AS A GROWING STATE BUSINESS

New York
Wineries: 273
Total budget: $750,000
THREE STRAIGHT YEARS OF UNDERFUNDING IN THE FACE OF SOLID INDUSTRY GROWTH

"Nobody believes that the state ought to spend more money for no reason," he said. "We're talking about one of the rare opportunities to spend money that immediately comes back, and then some. Virginia is doing it. Other states are doing it. Our lawmakers have great challenges -- it's tough, I know that. But we think that with a little more information, they'll see how valuable this can be."

Expanding the "I Love NY" campaign

DeVito told lawmakers that there is a natural extension of state support for tourism. He'd like to see the I Love NY campaign expand to offer I Love NY Wine. And the target markets include New York City, which DeVito feels is ripe for new business.

"There are major wine and food magazines in New York City," DeVito said. "There are major retailers and New York wine barely has a foothold right now. We don't engage the New York media enough. We can change all of those things."

And DeVito pointed out that New York City is home to offices or bases for more than a dozen domestic and international wine councils.

Establishing an Identity for New York Wines and Reaching New Markets

The creation of the New York Wine Council would require more details and planning, but DeVito already sees opportunities for the council and New York state. His proposal targets new markets for expansion, mainly focused in the northeast and including major cities like Boston and Philadelphia while reaching out to Portland, Maine; Montpelier, Vermont; Springfield, Massachusetts; Trenton, New Jersey; Hartford, Connecticut; and Nashua, New Hampshire.

These are markets that some individual wineries already engage, but DeVito wants to see the state put its efforts to create a bigger business map for the industry.

Such efforts would engender fresh thinking about New York wine, DeVito argues. He says, "Branding is about offering tasting two or three times a year, it's about courting major media and new media," DeVito said. "It's about doing things the other countries and regions are doing that we don't do."

Governor Cuomo has entered office with a plan to cut most departments, and expanding state expenditures might seem unlikely. But DeVito has informed lawmakers that failing to invest more would only worsen the state's economy when there is an opportunity to strengthen it.

"I can't predict what will come out of this," he said. "But I do know this: They listened."

Comments

[Brandon Seager]

Kudos to Carlo for his initiative. The deeper in the whole our state gets, the more compelling the argument to invest what money we can in the businesses that are actually growing. Great post, Evan.

[Bob Madill]

What have we here?

Imagine one's own life and within which aspiring to create a path towards a better future and for all. For me, that would not be imaginable without my partners in life. In the Finger Lakes we have many partners. More than 100 wineries. Many more than 100 lives. Virtually none of them has been involved in this proposition. How ridiculous! How disappointing. There is much more to be said here. But that requires time and reflection.

[Will Ouweleen]

I know Carlo Devito to be an entrepreneur. He sees a need to raise awareness for NY wines, he invests his own time to create an idea, and he puts it into play.

Unfortunately the idea might polarize as many people as it inspires.

We all work darn hard to make and market the best wine we can. We all seek to grow our businesses profitably and sustainably. I think we get further ahead if we work together to maximize market opportunities in New York City and beyond.

We should welcome all ideas and evaluate each on their merits and the risk they pose.

[Duncan Ross, Arrowhead Spring Vineyards]

These ideas should not be polarizing. If you are upset because you don't feel included, you have to get by that. There are over 300 wineries in the state. Carlo did a great job of assembling existing and new ideas into a compelling plan that is actionable. Winery meetings were, no doubt, a part of this information gathering.

The fact is that "putting it out there" is the best way to gain feedback and support. Take a look at the ideas, comment on the ideas and let’s work together to market NY wines. I am pretty sure that's what he meant when he said in his post:

"I am sure the idea will morph and change as the conversation widens, but we thought if we didn't push, then nothing would happen.... I hoped more voices might help force a bigger conversation, and help get the support our industry needs to move forward in a competitive way."

The document is clearly a work in progress and he is asking for feedback and involvement. So send comments to Carlo, or better yet get involved in the process. I think it is great that he took the imitative to put this together. I can't criticize a busy winery owner for putting an idea out there before speaking with everyone.

[Charles Massoud]

Carlo,

It seems Winter is the time to immerse ourselves in creative thinking, as we idle, waiting for our workload to disabuse us as the weather warms up.

You will recall that about a year ago we had such a discussion on this blog. I followed it with contacting about 30 different wineries making the case for an industry wide effort not unlike what you are advocating. I then went to the Rochester conference to have a face to face conversation with many of our colleagues. There was in general polite interest but the net of it was that it did not seem to be a priority for most of our colleagues.

There are those who are happy to continue with the NYW&GF as it is. There are those who are happy with their wine trails and the programs they are implementing. There are those who are happy to do their own thing. And there is not yet the widespread need to make radical changes. We can argue back and forth but the reality is that our industry is not focused on such a transformation now.

I have advocated previously that the best that the NYW&GF can do for us with its limited budget is to provide education in marketing, so that a useful dialog can emerge as to the needs of our industry.

What are we to do? I agree with Peter Caroll that we should count on ourselves not on Government. Much of the reason for our lethargy is that most wineries have come into this business within the model that says that the NYW&GF will guide them. Since its funding has been erratic so has been its performance.
But the dependency has establsished itself.

In the meantime, it is best to continue our individual efforts and strengthen the breakthroughs that many of us are experiencing. This means we must continue to improve wine quality and continue to grow the footprint of our market penetration and our reputation. It is going to take a while before the rest begin to notice. In the absence of any strong leadership at the state level, we have to lead by our example. There may come a time when those marketing leaders may colaborate with each other and that may spark what is needed to get to a state wide effort.

For now we must be as successful as we can be, individually.

If there is energy to work with the state it is best directed at simplifying the onerous and cumbersome compliance system that is an impediment to our growth.

[Lenn Thompson]

Please note that, in the interest of a unified conversation, we've decided to close comments on this post and continue the exchange on our follow-up post:

http://www.lenndevours.com/2011/01/reaction-flowing-in-to-wine-council-proposal.html