Friday, October 30, 2009

Domaine Serene vs. Oregon Wine Industry- A Battle of Trade Secrets

Tonight on the evening news I heard about this disheartening lawsuit filed by Domaine Serene Winery of Dayton against Tony Rynders, its former winemaker of ten years.

The lawsuit alleges that Rynders, revealed company trade secrets, stole proprietary information and violated company policy by making wine for himself and others. The winery is asking a federal judge to award it more than $75,000 in damages and prohibit Rynders from using the winery's proprietary winemaking process or disclosing it to anyone else. It also wants the judge to permit a computer expert to examine Rynders' computer and destroy any files or data from the company, at Rynders' expense.

Rynders denies all allegations and accuses Domaine Serene owners Ken and Grace Evenstad of acting out of spite. He has counter-filed for dismissal of all charges. The first hearing in the case happened yesterday September 30, 2009 and mediation is next for the two parties.

A reporter from the Oregon Wine Press wrote:

"The issues at stake extend well beyond Oregon. Insiders express grave concern about implications for the American wine industry should a ruling in this case create a precedent for the protection of so-called trade secrets involved in winemaking."

The trade secrets’ claim in this case centers around the production of Coeur Blanc, Domaine Serene’s name for a high-end white wine made from Pinot Noir grapes. It represents less than 1 percent of the winery’s 35,000-case annual production.

The Evenstads assert that Coeur Blanc is vinified in a unique manner. Rynders, and every other winemaker this writer has spoken to, maintains it is nothing more or less than carefully crafted Pinot Noir blanc.

The wine is made from the clarified, free-run juice of grapes that might otherwise be used to produce a top-tier red Pinot Noir. This white version has been a major component of most French Champagne for centuries.

As this writer was told time and time again, almost nothing is new and there are no mysterious secrets to winemaking. There are only variations on well-known viticultural and enological techniques.

Individual knowledge, experience and skill levels, however, do account for consistency of quality, and personal preference may result in slightly different styles or characteristics in a given variety or type of wine.

Additionally, every vintage has its own variables for which adjustments have to be made in the vineyard and the winery. As a consequence, applying an inflexible, exacting formula may work in manufacturing, but it’s no sure thing in winemaking.

Rynders said the procedure he followed was passed along to him by the winemaker at an Italian firm, Fattoria Mancini, and is described in detail on the Internet. In other words, it’s hardly hush hush.

The lawsuit has prompted reactions ranging from dismay to disbelief and indignation to outrage.

Noted winery owner Ken Wright, who made Domaine Serene’s wines on a contract basis before Rynders was hired as its full-time winemaker in 1998, expressed sadness over the situation. “I find the whole thing to be really regrettable,” he said. “In the early days, the Evenstads were much more easygoing. They had a great winemaker in Tony and a great vineyard manager in Joel Myers. “I was happy for them when their wines began winning recognition. I just don’t understand what happened as time went on. But, I can say that this is not at all reflective of our industry as a whole. We are open, cooperative and giving.”

Linda Lindsay of Stone Wolf Winery agreed, saying, “We are collaborative. We share ideas and nurture one another. If that weren’t the case, the Oregon industry wouldn’t have become what it is today.”

Lindsay said the Evenstads should give Rynders a huge thank you for his contribution to their success, not try to destroy him. “What they’re doing is reprehensible,” she said. “They have a big pocketbook and they’re using it vindictively.”

Others I’ve talked to in the industry share similar sentiments. Their consensus is that Domaine Serene owes its reputation for award-winning wines to the talents of Tony Rynders. He deserves praise for that, not disparagement.

Veteran winemakers say it is erroneous, even dangerous, to suggest that honing one’s professional skills and talents can be deemed an intellectual property with proprietary value.

The entire notion, they agree, is patently ridiculous and gives a wholly undeserved black eye to the Oregon industry. Some have suggested creating a fund to help Rynders cover the cost of his defense.

Obviously, the case will be closely watched. But whatever its outcome, there is far more to be lost than gained on both sides.

For Rynders, it’s a matter of reputation as well as a potentially ruinous financial burden. For Domaine Serene, it would seem no matter what may or may not be won in court, the winery has already incurred its greatest loss—Rynders’ services.

- - - - -

This case really stirs up the emotion inside me. Although I am not a winemaker, I have watched Chris learn the skills of winemaking from many different figures in the Oregon Wine Industry. These people are helping him grow his knowledge database so one day he can reach his goal of making his own wines. Their advice is not something he could learn from a textbook. He needs this hands on experience and I truly hope this lawsuit doesn't change this dynamic. Chris is currently pulling information from the winemaker he interns with, his internship co-workers, professors, father, and other winemakers we have met along the way. Winemaking should be an open flow of ideas. It is not a recipe. Doing the same thing to grapes year after year will always produce a different result, so how could Tony be stealing? I don't doubt that he is using skills he used while the winemaker at Domaine Serene, but it would be like my old work suing me for knowing how to use the POS system at my current job because they were the ones who taught me point of sale. As the article says, the Oregon Wine Industry has got to the point of being a highly-regarding winegrowing area due to its collaboration. Back when the industry was starting the Yamhill Winegrowers Association got together monthly to discuss tricks of the trade to benefit the entire industry. Look how successful it was for them. Sure, each winery needs something to differentiate itself in the market, but that does not mean using bogus lawsuits, it means to play to your strengths.

What do you think?

Off the record: I have never been a fan of Domaine Serene. I feel like their wealthy, pretentious winery, is all show. And this is another case of them using their money to get what they want. I also have a problem with their Rockblock label. They source the grapes from Del Rio in Southern Oregon and sell their Syrah for $45 a bottle. I can name twenty wineries that get their grapes from Del Rio that are selling their wines from $30 or less and are much tastier.

Thursday, October 8, 2009

Seeking Advice! for my senior project

Right now I am currently working on my senior business project for the Enterprise Challenge. The Enterprise Challenge is a competition where each student team writes a 30-page business plan and prepares 15-minute presentation that is given to a panel of OSU faculty and investors. The winner of the challenge is given $10,000 for the purpose of using it as startup capital for the venture (or paying off my college loans).

I have chose writing my business plan on starting a winery (duh!). I may not fully comprehend the great undertaking I am pursuing, but my passion for the project is overwhelming. I initially thought I wanted to open up a winery in Southern Oregon, but the more I thought about it objections kept popping up in my head. You know just that gut feeling of unease? I had heard from a wine entrepreneur that it is expected that the wine industry in Southern Oregon will outgrow the one in the Willamette Valley by five to six times. Would you agree? Or do you see it more as a place where grapes are grown or bulk is made and then shipped up to wineries in the Willamette Valley to sell? Do you think Southern Oregon would attract adequate tourism? Should I consider millennials, the soon-to-be largest group of wine drinkers, in location? Since I am terrible at learning foreign language, I am bound to English speaking countries.

As all these questions flooded my mind, I thought my solution would be to ask a well-respected industry professional, so I did. I am awaiting a reply. In the meantime, here is my question for you, and it boils down to this, if you were me, where you would go? I am young, ambitious, and willing to uproot to anywhere my dream can be built. As a native of the Willamette Valley, I am also willing to stay put. But, would you consider it overpopulated with wineries at this point? Or does it still have potential to expand? Is it too tough to start a winery up here now? I value any response you can give me.

My contact information is below and I would appreciate any feedback (I probably would even jump up and down with excitement if you respond).

Sincerely,

Christine
winopreneurs@gmail.com

Once I get my idea down, I will be counting on you to help me get my business plan into tip-top shape.

Thursday, September 24, 2009

School is Back!

School is back in session and Chris has a full load this term.

- 6 credits Production
- 3 credits Wines of the Pacific Northwest
- 3 credits Wine Marketing
- 5 credits Work Experience

Should be a very busy, but very interesting term. I hope some of the knowledge he learns brushes off onto me.

While Chris is learning all things enology, my schedule is packed with finance this term. Feel sorry for me please!

Monday, August 3, 2009

Wine Nymph Banned?!


Who would ever even consider banning anything with the title 'Wine Nymph'? Apparently the state of Alabama that's who! The label on Cycles Gladiator wine, produced by Hahn Family Wines in Soledad, Calif., shows a vintage 1895 advertising poster for Cycles Gladiator bicycles. The French poster features a nude nymph flying beside a winged bicycle. The state of Alabama says that it depicts a "person in an immoral sensuous manner". The president of Hahn Family Wines said that they could change the label to continue sales in Alabama but they won't, claiming its not pornographic. Go Hahn!! I suppose the reason I was initially interested in this story was because a few months ago I was in the store trying to find a bottle of wine and I saw the Cycles Gladiator. To be completely honest I bought that bottle of wine even though I knew nothing about it because of the label! A hot chick riding on a winged bicycle? It was a no brainer! :-) The wine didn't turn out half bad either. I wasn't at the point to where I was making tasting notes but I do recall enjoying the wine. How do you feel about it? Pornographic? Art? That bike looks like one sweet ride? Or if you have no direct opinion but are interested in reading the original article feel free to click here.

Friday, July 31, 2009

Beauty Mark

As you may know Christine and I have entered photos into the 'Capture the Spirit of Oregon Wine Country' photo and video contest. However, I recently added our first video! Yay! Okay, so it's not a real 'video', it's more of a slideshow, but I did add music to it! That counts for something right? Here is the video for your viewing pleasure...



Just so I'm giving credit where it's due, The song is titled "I'm on a Roll" and it is performed by Over the Rhine. I thought it fit the video pretty well, considering you gotta be on a wine drinking roll to get all those wine marks everywhere! I just wanted to subtly show someone drinking wine during everyday activities. I thought it was kind of clever. :-)

Anyway, like I said we have uploaded this video along with our previous pictures into the Facebook contest, 'Capture the Spirit of Oregon Wine Country' and we need your help to win! All you Facebook friends, click here for the contest link so you can vote for us! Vote 'Love it' for anything by Chris or Christine. Don't forget you can vote everyday!

Thursday, July 30, 2009

My First Wine Dinner!

I've help plan them. I've served at them. But, last night was the first time I got to attend (and eat) a winemaker's dinner. Willamette Valley Vineyards hosted the dinner at Bentley's Grill in Salem, OR.

The event started with a very charismatic introduction by Jim Burnau, the Founder and President of WVV. He talked to us about the history of the Oregon wine industry, his vineyards meager beginnings, toured us through the wines we would be drinking, and his opinion on the future of Oregon wine.

The two things I took notes on were that Jim said were there are still about 100,000 plantable acres for wine grapes in the Willamette Valley (good news for us) and he predicts that the Southern Oregon wine industry will grow to be 5-6 times bigger than the Northern Oregon wine industry (more good news for us). Southern Oregon has a great climate to compete in the 'big' red market with California. While, Northern Oregon will continue to thrive with cool-climate, thin-skinned varietals. Those two ideas really got my brain spinning about where we will have our winery. Do we want to join in on the action up North or build up an industry in the South?

After the introduction, we got started on this amazing food and wine paired menu:

Aperitif
Pinot Gris 2008

Menu
Smoked Columbia River Sturgeon with CV Growers
organic greens, Oregon Truffle Vinaigrette and Golden Beets
Estate Chardonnay 2006

Thai spiced Duck breast with Apple Tamarind Chutney,
crispy Duck Cake and Mild Red Curry emulsion
Elton Vineyards Pinot Noir 2007

Tasting of SuDan Farms Oregon Lamb
Roasted Rack Chop with Piment de Espelette,
Braised Shank stuffed Yukon Gold Potatoes with
dried olives and Grilled Lamb Sausage, presented with
Roasted baby Carrots, Lacinato Kale and Lamb Jus
Willamette Cuvee Pinot Noir 2007
The Griffin 2001

Willamette Valley Cheese Co. Perrydale with Cherry Compote and Hazelnuts
Estate Pinot Noir 2000

Walnut Gateau with Medjool Dates and Port-Quince Sauce
Pinot Noir Port 2005

I was so excited to finally try the Pinot Noir Port. It is a wine made in very small quantities that WVV does not taste in the tasting room. It was incredible. I am really liking Willamette Valley ports lately, but this one takes the cake.

This blog deals a lot with "our firsts," and this was a great first wine dinner. Great food. Great wine. Great people. The picture above is of the table I sat with. You would never have known we hadn't known each other for years! I can't wait until Chris and I host our first wine dinner!

Friday, July 24, 2009

Put a Cork in Global Warming!

We are strong advocates of the environment and will put to use sustainable practices in our future vineyards and winery. One program we have both become strong believers in is the Cork ReHarvest Program started by fellow Oregonians, Willamette Valley Vineyards. When everyone seemed to be switching to synthetic cork or screw caps to save money and avoid reforming the cork industry, Willamette Valley Vineyards held their ground and became the first winery in the world to receive certification from the Rainforest Alliance for using 100% Forest Stewardship Council (FSC)* certified cork.

The Cork ReHarvest Program is a cradle-to-cradle cork recycling program with ZERO increase to their carbon footprint. Cork recycling boxes were placed in the 11 Whole Foods stores in Oregon and Washington, as well as the 11 Roths grocery stores in the Mid-Willamette Valley. The program hopes to go nationally within three months. When the distributors deliver wine to these stores, they pick up the cork and return it to Willamette Valley Vineyards' warehouse. The cork is delivered to a company where it is remanufactured into wine shippers and other recycled cork-based products.

I had no idea how valuable cork is to the environment and to the wine industry!

Cork Facts

-Cork is a natural, renewable, recyclable and biodegradable material that is obtained through an environmentally friendly harvesting process.

- Tree are NOT cut down to harvest cork, rather, the bark is stripped by hand every 9-12 years. Cork oak trees can live up to 300 years!

- Approximately 6.6 million acres extending across Portugal, Spain, Algeria, Morocco, Italy, Tunisia, and France, the cork oak forests support one of the world's highest levels of forest biodiversity, second only to the AMAZON Rainforest.

- Opting for screw caps and plastic stoppers directly causes the loss of sustainable livelihoods as the cork forests are a vital source of income for thousands of families.

Looks like we will be drinking plenty of Willamette Valley Vineyards wine! Plus, there is nothing better than the anticipation of peeling off the foil, using the cork screw and releasing the sound of a popped cork!

We encourage wineries to use FSC corks in their bottles and we encourage wine drinkers to look for wines featuring FSC cork and recycle the corks they do pop! Hopefully, the program goes national very soon, so it is convenient for you to recycle your cork.

Become a fan of Cork ReHarvest's brand new facebook page here.

*The Forest Stewardship Council is an international, non-governmental membership organisation founded by

industry, social and environmental stakeholders to develop a consistent, comprehensive and reliable set of third-

party certification standards for responsible forest management. FSC certification provides a recognizable and universal assurance that the forest products come from a responsibly managed source. This gives buyers and consumers the confidence that best practices are being employed.