Major California winery enters the Washington market

When it comes to wine, the grapes are king. In order to produce a successful winery, companies need to have access to land that can accommodate the picky growing conditions that grapes need. Certain states in the U.S. have accomplished that, with California being the most well know. But Washington state has begun to cultivate its own wine industry, which has attracted the attention of some major growers.

According to the Seattle Times, the world’s largest privately owned wine company E.J. Gallo Winery, based in Modesto, California, has acquired the Washington-based brands Columbia Winery and Covey Run Winery.

“I think the entrance into the state by a California producer signals that Washington has grown up to the point that it is an important, viable player in the wine industry,” said Kerry Shiels, owner of Cote Bonneville winery based in Washington to the news source.

In addition to Shiels positive response, the source says that most wineries in the region feel the super-producer’s presence in the state will help bolster the industry.

Washington is currently second in wine production across the nation, but most of the operations are small. With 90 percent of the wineries producing less than 30 percent of all the state’s wine, most companies are limited to selling in Seattle and other areas around the Pacific Northwest.

Because most wineries’ branding efforts center around the terroir of the product – where the grapes are grown and bottled – it may benefit companies in Washington to produce custom labels that promote the locality of their business.

By using custom designed wine labels, these smaller vintners will be able to separate themselves from the larger wineries that may have vineyards in many locations. This will allow them to compete in the local market where they may have a greater influence rather than a broader, more national niche.