← Return to Archives - Subscribe to FREE NewsFetch Email Newsletter
From: lewis.perdue@wineindustryinsight.com

Subject: Deutsch-Renwood A Legal Thriller, $20+ Wines Revive, Diamond Oaks Action Not Fraud, Cosentino License Suspended - WINE INDUSTRY INSIGHT - EMAIL EDITION

Date: 2010-02-26 14:48:47

To: Emailing List Subscriber
Please use CMD+F (Mac) or CRTL+ F(Windows) to find your specific search term within this issue of NewsFetch. This "double search" is due to our links sourcing from websites not within WineIndustryInsight.
Dear Colleague,

Welcome  to this special edition I've created to introduce you to Wine Industry Insight which I started in late 2008.

This weekly email edition as well as the Daily News Fetch, are free services that currently have more than 11,000 subscribers in the wine industry, primarily on the West Coast.

You're probably familiar with two other publications I founded: Wine Business Monthly and Wine Business Insider. Those were sold in 1997.

Below are a selection of original articles from the past 10 days which I hope you will find useful and interesting.
  • W.J. Deutsch-Renwood Legal War Worthy Of A Grisham Novel
  • Jan. Nielsen Data: $20+ Revives, Domestic Brands Outpace Imports Almost 7:1

  • Diamond Oaks Vineyard Transfer Not Fraud Judge Rules

  • Cosentino Gets Brief CDFA License Suspension

In addition, you'll find lots more like these on the web at Wine Industry Insight.com

My goal with these new all-digital publications is to supplement the fine work of my previous ventures and to provide in-depth articles that can be found nowhere else.

A little later today, I'll also be sending you today's News Fetch which arrives in subscriber's email boxes first thing in the morning, Monday through Friday.

If you don't want to receive anything further from me, please: Click: [UNSUBSCRIBE]. News Fetch also has an unsubscribe link that will allow you to keep on receiving the weekly email edition of original articles, but which will unsubscribe you to the daily news feed.

Thank you for your time and kind consideration.

Cordially,

Lewis Perdue

Editor and Publisher


WINE INDUSTRY INSIGHT

Click this link for much more news at wineindustryinsight.com

EMAIL EDITION - VOLUME II, SPECIAL EDITION - February 26, 2010

To UNSUBSCRIBE to this free email edition Click here: [UNSUBSCRIBE]

To SUBSCRIBE to the free email edition, click this link.
Access the complete email edition archive here.


SPONSORED BY:

Wine Web
Check out our NEW Winery Tour Planning Tools!
IN THIS ISSUE:
  • Jan. Nielsen Data: $20+ Revives, Domestic Brands Outpace Imports Almost 7:1

  • Diamond Oaks Vineyard Transfer Not Fraud Judge Rules

  • Cosentino Gets Brief CDFA License Suspension

  • W.J. Deutsch-Renwood Legal War Worthy Of A Grisham Novel



ALSO SPONSORED BY:

Hinman &
Carmichael,Alcoholic Beverage Law


Jan. Nielsen Data: $20+ Revives, Domestic Brands Outpace Imports Almost 7:1

While neither the recession nor bargain-basement mania have run their course, Nielsen Company data from January shows a lot of life at higher price points. The news is good overall with all wines monitored by scanner data rising 5.1 percent for the four week period ending Feb. 6. That aggregated number, however, hides some interesting specifics.

(NOTE: The Nielsen Company spreadsheet that includes the data on which this article is based can be found here for free. This data represents a very small fraction of that available to Nielsen clients.)

Original analysis, interpretation and custom calculations
performed by Wine Industry Insight and based on data from The Nielsen
Company and the complete WII article are available to VIP Premium
Subscribers.

The original analysis, interpretation and custom calculations performed by Wine Industry Insight and based on data from The Nielsen Company and the complete WII article are available to VIP Premium Subscribers. Wine Industry Insight does not sell or market data from the Nielsen Company.

Perhaps most encouraging is a 5.4 percent increase in dollar volume for wines in the $20+ price segment. What’s more, that increase came without price cutting. Indeed, the average priced 750ml in this segment sold for $25.54, up $0.16 from a year ago. This represents an increase of 0.64 percent.

VIP Subscribers click here to read the complete, un-redacted article.

Also In This Article:

  • $9-$11.99 GREW FASTEST OF ALL PRICE SEGMENTS
  • PRICE CUTTING EFFECTS?
  • DOMESTIC BRANDS CONTINUE TO BATTER IMPORTS
  • GAMAY TANKS, RIESLING SOARS 12.5% FOLLOWED CLOSELY BY PINOT, SAUV BLANC

Diamond Oaks Vineyard Transfer Not Fraud Judge Rules

Dinesh Maniar’s transfer of two Napa Valley Vineyard Properties to Diamond Oaks Vineyards shortly before its Chapter 11 filing was legitimate estate-planning and not fraud as alleged in an October 2009 bankruptcy court proceeding.

VIP Subscribers click here to read the complete 500-word article.

  • CLOSE TIMING OF VINEYARD TRANSFERS AND CH11 AT ISSUE
  • JUDGE RULES TRANSFER WAS ESTATE PLANNING FOR SERIOUSLY ILL MANIAR
  • “NEW DEBTOR” SYNDROME AT ISSUE
  • HARTFORD’S ARGUMENT FLAWED

Cosentino Gets Brief CDFA License Suspension

Cosentino Signature Enterprises LLC has had its processor’s license suspended for three months for failing to pay winegrape growers for fruit purchased from the 2008 vintage. The suspension begins March 1. The company, which owns Cosentino Winery among other brands, will not legally be able to purchase grapes until the end of May.

Agatha D’Esterhazy, MEB Branch Chief told Wine Industry Insight that Cosentino’s progress in making grower payments will be reviewed at the end of the suspension.

CDFA MARKET ENFORCEMENT BRANCH FILED CHARGES IN MAY 2009

The Market Enforcement Branch (MEB) of the California Department of Food and Agriculture (CDFA) filed an accusation against Cosentino on May 23, 2009 after complaints of non-payment by 40 growers totaling more than $1.6 million, according to the written decision ($ VIP subscriber content) by Administrative Law Judge Perry O. Johnson .

Johnson presided over hearings on Aug.31, 2009 (WII coverage) and Nov. 10, 2009 (WII coverage) and rendered his decision Dec. 14. His decision was approved by the CDFA on Feb. 4 and sent to Cosentino Feb. 17.

Carpenter Ranch, the largest grower among those who complained, has filed its own separate lawsuit to recover more than $500,000 owed.

VIP Subscribers click here to read the complete, un-redacted article.

Also In This Article:

  • JUDGE SAYS “REVOCATION WARRANTED” BUT EFFORTS TO PAY GROWERS MADE SENTENCE LIGHTER
  • 2007 MEB PROBATION FULFILLED, NOT RELEVANT IN THIS PROCEEDING

W.J. Deutsch-Renwood Legal War Worthy Of A Grisham Novel

EDITOR’S NOTE: This is one of Wine Industry Insight’s longer articles. But even at more than 2,300 words, it is impossible to do more than touch on some of the more prominent aspects of this very complicated litigation.

Because of this, we have included links to far more than the average number of full legal filings (20+) so that VIP Premium subscribers can scrutinize the details for themselves.

Also owing to the complexity of this story, WII reached out to both sides, sending a previous draft and requesting comments, corrections and other information. We are grateful for the help so freely provided by all.


The Oct. 9, 2009 Chapter 11 filings by The Renwood Group and Renwood Vineyard Properties brought a long-standing legal grudge match with W. J. Deutsch & Sons (WJD) to a screeching halt, but has done nothing to decrease the enmity between the two warring parties.

Robert I. Smerling, founder and Chairman of Renwood Winery Inc., has charged that the bankruptcies of his two associated companies — Renwood Group and Renwood Vineyard Properties — were caused by what he says were WJD’s inability to meet its sales goals and because it improperly withheld funds.

However, an Oct. 29, 2009 arbitration decision from the Judicial Arbitration & Mediation Service (JAMS) concluded that Deutsch owed nothing while Renwood owed WJD nearly $5.6 million for damages, legal fees, costs and expenses.

In addition to that, an additional W. J. Deutsch legal filing in U.S. District Court asserts that Renwood owes it more than $1 million in a stock buyback controversy. That legal action was suspended by the Renwood bankruptcy filings.

VIP Subscribers click here to read the complete, un-redacted article.

Also In This Article:

  • 2006: YELLOW TAIL’S COAT TAILS
  • BAD BLOOD BEGAN EARLY
  • FIRST ARBITRATION IN 2006 LEADS NOWHERE
  • ROCKY RELATIONSHIP GROWS WORSE in 2007
  • CASH FLOW AT THE HEART OF THE CONTENTION & RENWOOD’S CHAPTER 11
  • RENWOOD TERMINATES 2007 INTERIM AGREEMENT
  • BDN ERROR RESULTS IN CHARGES OF FRAUD
  • RENWOOD FILES FOR ARBITRATION THEN SUES IN COURT
  • DEUTSCH OPPOSES TRO, COUNTERS THAT RENWOOD OWES IT MONEY
  • SERVICE AGREEMENT CANCELLATION PROMPTS DEUTSCH TO SUE FOR $1 MILLION STOCK BUYBACK
  • ARBITRATOR DECIDES IN DEUTSCH’S FAVOR

  • DEPOSITIONS, DISCOVERY HALTED BY RENWOOD CHAPTER 11

ROBERT SMERLING SAYS “COMMON SENSE WILL PREVAIL”

Renwood Group Chairman and CEO responded to Wine Industry Insight’s request for comments and corrections with the following statement:

Renwood’s long and difficult experience with Deutsch underscores the extreme caution that should be employed anytime an aspiring label vests total confidence in ambitious marketing and distribution promises.

“Renwood’s positions have always been in furtherance of its desire to ensure that its labels meet consumer preferences for both access and excellence, and we are very pleased by the outpouring of support from our suppliers. Even in these troubled economic times, we are steadily recapturing the market share lost to us during our “Deutsch years.” Had we known then what we know now, we certainly would not have partnered with Deutsch. We now wish to chart our own destiny within the extraordinary industry of which we are a proud member.

‬‪”Navigating and making sense of litigation is challenging, as anyone who has litigated well knows. Multiple pending actions show how profoundly difficult the Renwood-Deutsch relationship has been. However, we expect that common sense will eventually prevail. We are confident that Deutsch wishes to restore its reputation, and we anticipate that this goal will ultimately guide resolution of the parties’ disagreements.”


Not A Subscriber Yet?

Subscribe now, and get the rest of this article and everything else in every article on the site every day, including the Data Cellar for just$9.99 per month or $115.88 per year. Click here for more details.


Sponsored By:
Barrel Builders

================= CONTACT DATA ====================
Lewis Perdue
670 W. Napa St., Suite H, Sonoma, CA 95476
Phone: 707-326-4503, fax: 707-940-4146
Email: lewis.perdue@wineindustryinsight.com