White House link helps Valley's vintners
CEO of the S.F.-based Wine Institute is spouse of Dorothy Bush.By Dennis Pollock / The Fresno Bee07/10/08 22:45:31
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It may be easier to lobby for the wine industry when your brother-in-law is the president of the United States.

But it still remains a challenge for the keynote speaker at Thursday's 57th annual meeting of Allied Grape Growers in Fresno, Robert P. "Bobby" Koch, president and CEO of the San Francisco-based Wine Institute.

Koch, who married Dorothy Bush in 1992, described some of the industry challenges to more than 300 growers, vintners and lenders at Pardini's. They include battling to keep states from levying higher taxes on wine and keeping open channels for shipping wine directly to consumers.

"Twenty-six states considered raising taxes in recent years, and only one -- Maine -- has done so," Koch said.

Koch's talk followed some upbeat remarks from Nat DiBuduo, Allied's president and CEO. DiBuduo said wineries have been offering to buy grapes early this year and at better prices, "even saying they will look at three-year or five-year contracts."

Each year at the annual meeting, DiBuduo warns against planting grapes without contracts, and in some years he has advised against planting at all.

His message Thursday: "Plant with contracts."

Now that an earlier glut of wine grapes is gone -- along with 135,000 acres of vineyards removed in 10 years -- the picture has changed.

"Let's meet with our winery partners to find out what varieties they want and negotiate the price and terms that make it economically feasible for you to plant wine grapes, not almonds," DiBuduo said.

He said this year's crop has had setbacks that include a dry spring, frosts, strong winds, early heat waves and a lack of available water to keep the crop developing to its maximum potential.

And more consolidation of wineries and buyers has occurred.

Other challenges include imports, additional regulations on air and water quality and increased costs of production for fuel and fertilizer.

DiBuduo outlined Allied's growth in recent years. In 2000, it sold about 150,000 tons of its members' grapes. Last year, it was more than 250,000 tons. DiBuduo said it may reach 300,000 tons valued at more than $70 million this year.

In 2000, there were 500 growers in Allied. Last year, there were nearly 600.

Koch said his meetings with the president began before the Bush administration. He said he and other industry leaders began annual visits to the White House in 1993 when Bill Clinton was president.

"Of course when the president is your brother-in-law, it's a bit easier," he said. "The pressure will be on next year."

Koch said his organization, which has more than 1,100 vintner members, gets some help in telling its story from Gov. Schwarzenegger's annual designation of September as California Wine Month.

"It helps to have people see this as an industry that should be protected, not punished," he said.
The reporter can be reached at dpollock@fresnobee.com or (559) 441-6364.
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