If you want to know where the wine industry is headed, don’t miss this power-packed seminar moderated by director of the Evenstad Center for Wine Education at Linfield College, Dr. Greg Jones. Dr. Damien Wilson, Hamel Family Chair in Wine Business at Sonoma State University, will deliver the wine sector outlook and share his views on the state of this sector with specific focus on the Oregon wine industry. His talk will include identifying channels for success, flagging potential market pitfalls and highlighting prospects for market triumph. Tony Correia is widely recognized across the American wine industry as a leading authority on the valuation of vineyards and wineries, and he will provide insights on what impacts and contributes to the value of an AVA and how to capitalize on AVA success. Wine industry finance expert Erik McLaughlin, CEO of Metis Mergers & Acquisitions, will provide the industry with the current state of Oregon’s M&A landscape and insights on how the market is changing. Finally, Danny Brager, Nielsen’s senior VP of Beverage Alcohol, will deliver market trends and Oregon wine growth insights from the national wholesale and direct to consumer shipments marketplace.
2. Appellations and AVAs
• What is an Appellation, or Geographic Indication?
• An appellation is a legally defined and protected geographical indication
used to identify where the grapes for a wine were grown; other types of
food often have appellations as well. ... The rules that govern
appellations are dependent on the country in which the wine was
produced. AOCs, DOCs, Gis
• In Italy;
• Indicazione Geografica Tipica – IGT
• Denominazione di Origine Controllate – DOC
• Denominazione di Origine Controllate e Garantita - DOCG
3.
4.
5. AOCs of France
• France's current list of AOC wines has some four hundred entries.
99 of these are grown in Burgundy. In addition Burgundy has
nearly 600 "climats" classed as Premier Cru. This astonishing
diversity is unique to Burgundy and is one of her greatest assets.
•The key to the system is that
as quality increases, locality of production is
more tightly restricted and exactly specified,
with a consequent decrease in quantity produced.
6. Appellations and AVAs
• What is an American Viticultural Area (AVA)?
• A viticultural area for American wine is a delimited grape-growing region having
distinguishing features as described in the Code of Federal Regulations (CFR) at
27 CFR part 9 and a name and delineated boundary as established in part 9 of
the regulations. These designations allow vintners and consumers to attribute a
given quality, reputation, or other characteristic of a wine made from grapes
grown in an area to its geographic origin.
• Some premium American wine regions are not AVAs.
• Some vintners choose not to use their specific AVA.
All AVAs are Appellations, not all Appellations are AVAs.
7.
8. Care and Feeding of the Oregon AVA
AVA PRs
•Promote
• VisitMcMinnville.com
• Destination Wedding
•Protect
• Solidarity
•Preserve
9. Tax Considerations of AVAs?
For § 197 purposes, the right to use an AVA designation is a license,
permit, or other right granted by a governmental unit and is not an
interest in land. Therefore, the right to use an AVA
designation is a § 197 intangible and the amount of the
vineyard’s purchase price allocated by Taxpayer to the
right to use the AVA designation is an
amortizable § 197 intangible.
Office of Chief Counsel, Internal Revenue Service
Memorandum Number: 201040004
Release Date: 10/8/2010
date: June 24, 2010
subject: Treatment of American Viticultural Area Designation Under Section 197
10. How can we develop the value of an
AVA?
Rigorous, Robust Econometric
Analyses
Conditional Heteroskedastic Hedonic
Price Analyses
Geo-spatial Multi-Variable Regression