Ripening on the Vine

Want to know NH's best kept secret? We've got 12 wineries. While NH's young wine industry won't challenge Napa Valley's, Granite State wineries are collaborating to get wine lovers to uncork local libations.

From Lebanon to Nashua, winemakers are joining together to form the first Winery Association.

From 20-year veterans with 1,000-gallon tanks, function halls and harvest jubilees that attract 300 volunteers to smash grapes with their own two feet to small start-ups with singletank operations, NH's fledgling wine industry is seeking to take its place in a billion-dollar industry.

According to the Wine Institute, an industry group in California, wine sales grew 5 percent nationally in 2005 up to $26 million in retail sales. California wines alone accounted for $16.5 billion of those sales. While NH's share of the market is but a drop in the barrel, the Granite State is experiencing a surge in wineries, wine bars and specialty wine stores to please even the most discerning palate.

Jewell Towne Vineyards

For many in NH's growing wine industry, their businesses grew from their passion for the vine. Among them is Peter Oldak, a physician and oenophile who grew his love of wine into the state's first commercial vineyard and a burgeoning business. "My wife describes this as a hobby run amok," Oldak says. Five acres worth of grapes that straddle South Hampton, NH and Amesbury, Mass. were crushed for this year's harvest at Jewell Towne.

Last season, Jewell Towne produced 4,000 cases (48,000 bottles) that sold at retail prices ranging from $9.99 to $24.99 per bottle. Their wines are sold at 60 specialty stores and restaurants in NH and Maine, in addition to Hannaford's grocery stores and NE state liquor stores. The vineyard is expanding its distribution into Massachusetts.

Oldak began growing grapes at his home in 1982 and by 1990 had more than 60 varieties of American, European and French hybrid grapes in the ground. It wasn't long before the winery tasted industry success. By 1992, the American Wine Society's national competition recognized Jewell Towne with a gold medal, a silver medal and an award for best hybrid of the show. In 1994, his hobby officially became a business and three years later, Oldak and his wife, Brenda, decided to build a post-and-beam reproduction barn to house the growing commercial operation.

Jewell Towne Vineyards now concentrates on growing 25 varieties of grapes for 20 different types of wine. The Oldaks run the vineyard along with two full-time employees, Derek Brock, assistant winemaker and vineyard manager, and Rich Collins, director of sales and marketing. The Oldaks' children are also involved in the operation. In addition to its wine sales, the vineyard hosts wine tours and has a wine and gift shop. Oldak says he intends to grow the business as he expects the industry to heat up across the state.

"Probably [during] the last 10 years, a lot of interest started in the wineries and we started mentoring people," Oldak says. He says there are grape, honey and apple wineries already operating in the state, with several more set to go into commercial production.

What makes NH conducive to winemaking? "Probably the first thing is the development of varieties of grapes that are hardy in cold weather," Oldak says. "That makes it possible for people here who want to start. For instance, there's a variety that's hardy to 40 below. Rockingham [County's] climate is favorable enough to grow some American and some American/French hybrids. We're only six miles from the ocean, we rarely get below negative 10 degrees. We also get protection from late spring frost, which can damage vines. We have a relatively mild climate. With spring protection and a longer season, it allows us to ripen a wide variety of grapes."

Even though grapes may fare well here, many wonder why anyone would want to grow their own when there are so many American and international wines already on the market. "A lot of individuals are disenchanted with corporate America or want to help keep New Hampshire green or have land that's in agriculture that's no longer profitable," Oldak says. "We're really a farm. You're basically a risk-taker when you're a farmer. We've had rainstorms, hurricanes that blow the grapes off the vine or dilute their flavor. Those are the uncertainties of farming. People may think of winemaking as pruning, fermenting and bottling. There's a lot more to it than that. It's a field that has a lot of developments happening."

While winemaking is centuries old, vineyards like Jewell Towne mix modem technology with ancient craft-and in places you may not expect. There are no scarecrows erected to keep animals away from precious crops. While Oldak has netting over some vines to protect them from birds, there's also a high-tech solution at work. While out looking at the vines, Oldak pauses a moment and tilts his head to listen. "You hear those birds?" he asks. "That's a micro-chip. What you hear is a [simulated] distress call through four speakers. Every day, there is something new we come up with. It's a battle between us and the deer with early-ripened grapes."

Such attention to detail has paid off for the vineyard. Jewell Towne has won 25 medals just in the past year. Oldak says that a key to winemaking in NH has been informing local oenophiles about what the state has to offer.

"People came to wineries out of curiosity and interest. As a result of tasting them, they found they liked it. If the public, when they go to restaurants, ask for local wines, they will encourage restaurateurs to support the local wine industry," he says. "I predict within five years, we'll have a wine trail with a dozen wineries. I also see people will have increasing opportunities to buy New Hampshire wines throughout the state, through the liquor commission and farmers markets."

For now, Jewell Towne's production is maxed out at 4,000 cases a year. "We're looking to expand the winery. Revenues are growing at about 20 percent a year, with production expanding about the same amount. I'd like to see us get up to 5,000 cases," Oldak says.

Flag Hill Winery

Jewell Towne isn't the only growing vineyard in the state. When Frank Reinhold Jr took over the family's former dairy farm in Lee with his wife in 1990, they turned it into a vineyard. By 1996, Flag Hill was set to go commercial with 500 cases of four different wines. Since then, the winery has also opened a distillery and introduced General John Stark Vodka, with more liquor products on the way.

High property tax rates are among the challenges startup vineyards face in NH. Among the factors that have contributed to Flag Hill's success is a conservation easement granted in 2004 through the Land and Community Heritage Investment Program (LCHIP). "It is likely that the industry in New Hampshire will be relatively small, not because the area is not conducive to winemaking, but because land is so expensive. Here, it's difficult to start a vineyard. This land is worth $175,000 per acre if it were cut up for house lots. It's worth $2,000 an acre if it's used for agriculture."

Despite the financial constraints of starting a vineyard, Reinhold says, "The industry is vibrant and growing well and making small inroads to [informing] customers that there is other wine than California wine. We're going out of our way to prove agrotourism is as important as the production of wine."

Just what is this concept of agrotourism? It's involving the public in an agricultural endeavor, such as a vineyard or pick-your-own orchard, and making it a tourist destination. In the case of Flag Hill, as well as some of the state's smaller vineyards, that means inviting people to stomp some grapes.

"Tomorrow, all of our grapes will be picked by the public," Reinhold says before Flag Hill's annual harvest event in early October. The event stems from Flag Hill's early years when more grape vines were planted and the harvesting became more than a handful of people could efficiently pick. Reinhold invited friends and family to join the harvest and in turn, he fed them with a big barbecue.

"It just got bigger and bigger. I call it the harvest mentality," he says. "Every fall, people go to the orchards. Our sales rapidly go up in September, when the only thing happening is harvest, even though the summer is when it's prettiest. This year, our list of 'Friends of Flag Hill' is 5,000 people. We sent out an email at eight on a Monday morning and within 45 mmutes we had 300 volunteers." Not only does the annual event bring customers to the vineyard, it also solves a labor problem. "There isn't a lot of immigrant labor here, so that [labor] pool is hard to find," Reinhold says.

The volunteers do it all-they cut grapes and stomp them en masse (albeit hygienically). The best part may be that they get a chance to see the literal fruits of their labor. "The next year, they can pick up a bottle of their own personally stomped wine," Reinhold says.

It also helps to create loyal customers and introduces people to local wines. "Getting people to try the wine is the first hurdle," Reinhold says. "We've got to get them less amazed and more consuming. ... It's finally slapping [customers] in the heads that buying local is really important. If it's of reasonable quality and price, why would you buy [the same product] someere else?"

One factor working in favor of NH's wineries is the state's aging population. Reinhold says approximately 75 percent of the wine consumed is by Baby Boomers. "The generations that have followed have not shown a strong propensity for wine," he says. "Over the past few years, beer has had a heyday and now those people are choosing wine, and that's extremely important to us. Wine is not being phased out. It's become a part of their lives." However, the industry also needs to capture the attention of younger generations to keep sales climbing.

Even though Reinhold believes in the quality of his product, he is realistic with his expectations. "Ernest and Julio [Gallo] aren't going to be putting a hit on me anytime soon," he says with a laugh. In addition to the wine shop and distillery, Flag Hill is also home to a restaurant and function hall that has hosted hundreds of weddings.

While Flag Hill has built a diversified business around wine, Reinhold indicates there is strength in numbers. "Being able to publish a wine trail gives us something to advertise," Reinhold says of the new association being formed. "[Tourists] want their destination, not an end stop. If we could say they could visit a number of wineries, it could take up their Saturday."

Reinhold looks forward to growing the business, but says production will probably only rise to 5,000 cases. He is focused on expanding other areas of the company. "For us to participate in the international market, this little critter [John Stark Vodka] came along. We're now distributed regionally. We started barrel-aged apple brandy. We're going international at the end of the year, which is a big deal for us."

Reinhold says that one of the reasons the distillery will branch out into making brandy is because it's made of distilled wine. "Anything extra we have goes straight to the distillery. There's no, 'What if we don't sell everything,' " Reinhold says. He admits that winemaking is absolutely a labor of love, especially given what his property could be worth and the steep initial investment required. "This is a 175-acre farm worth about $4 million if we chopped it up into house lots," he says. "Nobody that I knew and none of my family wanted to be a farmer and this is very much an agricultural endeavor. Mother Nature rarely makes a perfect grape. Winemaking is a process of correcting the deficiencies."

For a lot of folks, such as Reinhold and Robert Dabrowski, the owner of Candia Vineyards, converting former farmland into a vineyard is the only way to continue its agricultural use for a profit and remain undeveloped.

"Agriculture has been on its way down, but this is a business that is on its way up," Reinhold says. However, while the business is growing, the investment in a vineyard is substantial. "We have 20 acres [of vines] now and will probably add about 20 more acres. It costs about $10,000 an acre to plant grape vines. Then you wait three to five years. You have to get the land ready, plant the grapes, take care of them, and then process and age your wine. Your $10,000 is now seven years old and you still haven't seen a penny. We've had a 15 percent increase in sales every year we've been in business. But that's not the same as profitability. The first 10 years, we lost a lot of money. We're still in the recovery of our capital investment."

The Newcomers

As for industry growth within the state, Oldak of Jewell Towne Vineyards points out that there are wineries starting in Gilford, Belmont, Loudon, Peterborough, and Westmoreland. While Reinhold says demographics have played a part in slowing sales during the past few years, Vincent Paolino, co-owner of Zorvino Vineyards, says the state's influx of new residents is actually one of the reasons why he and his business partner, Jim Zanello, have entered the fray.

"The demographics are changing," Paolino says. "A lot of young people are moving into the state. A lot of that is the quality of life. If life is short, and you need to enjoy yourself-the Europeans have it down. They talk more. The shops close on Sundays."

Zorvino Vineyards, which is 12 minutes from I-93, hopes to attract Massachusetts tourists and commuters to its doors. The Sandown winery is actually on the same track as Nashoba Valley Winery in Bolton, Mass. Both wineries are focusing on business for their function halls and working to draw customers in with future events. Paolino says he and Zanello hope to "give people an alternative source of entertainment" with education through wine dinners and perhaps some murder mystery dinners.

Paolino says he has faced the same attitude as his predecessors when he tells people he is operating a winery in NH. "When we told people we were opening a winery New Hampshire, people laughed," he says.

However, he adds that small wineries can offer customers qualities that mass producers cannot. "We can make fresh wines without the preservatives that big companies just can't, because they produce so many bottles."

In another move to set themselves apart, even from other wineries in NH, the men will be importing grape juice from Italy to pay homage to their heritage and give some of their wines a "European flair," Paolino says.

Like Jewell Towne, Zorvino began as a hobby. "I planted some vines here because I was going to make wine for myself," Zanello says of the land he purchased in 1999. He also built a post-and-beam building to house his hobbies that include woodworking and antique cars. "When it was done, it was too nice to put my cars in. My friend, a dentist [Paolino], decided we should make a winery," Zanello says. "That was in 2000. We slowly went through all the forms. We got our licensing in line and grew a couple of batches. I think 90 percent of wineries start that way because it's not a business to jump into and make money at."

Zorvino Vineyards is just getting to the point where they are ready to label and sell their products. The young operation has between 200 and 300 vines already planted, and the business partners are planning to clear the way for 400 to 500 more vines. "We'd like to establish ourselves as a small winery, with 3,000 to 4,000 cases a year," Paolino says. "We'd like to provide the world with our great wine from New Hampshire, but we all know that probably won't happen."

Candia Vineyards is another start-up hoping to make its mark. Robert Dabrowski began test-planting grapes on his family's fonner farmland down the road from Charmingfare Farm in 1997. By 1999 he started planting in earnest and the operation just went commercial in 2005. At press time, Dabrowski's wines were only available at farmer's markets, but he is in negotiation to sell in other locations.

Candia Vineyards grows eight varieties of grapes that produce five wines. Dabrowski wants to expand his offerings to seven wines next year.

Part of the joy of winemaking, at least for Dabrowski, is choosing which grapes will be grown and deciding what type of product what they'll turn into. "Wine is romantic. It's not just about going to Shaw's and drinking it in a corner. People want something locally made. This is a high-cost area to grow wine. I'm not going to be the big producer with trainloads of wine. Right now, I can control every batch."

As with all of the other winemakers across the state, Dabrowski came into winemaking as a result of success in another professional field.

"I'm a financial analyst with a love of wine," he says. "There's quite a lot of overlap [between the two fields]. People ask, 'How is this possible? You didn't go to fanning school.' There's a certain analytical background. Wine is a complex liquid. Analyzing it and effecting change is a key component. That's what a financial analyst does."

Candia Vineyards produced 150 cases in 2005 and plans to produce at least 150 in 2006. Dabrowski's operation takes place in a small, cool basement space.

The juice is kept in a locked room with an antique vault door, a nod to his background in finances. Dabrowski enjoys bringing a personal touch to his business. "Over the years, people have gotten to know us, so when it's time to harvest, it's like they have their own private vineyard," he says.

While NH vintners agree they will never take over the wine world, they are collaborating to put NH wineries on the map with local consumers. Salud! Sampling NH's Wines

Yes, wine is readily available at supermarkets and specialty stores, but NH's liquor stores continue to be sales behemoths for all things fermented. In FY 2005, sales of NH's liquor stores reached a record-setting $401 million, a $24.1 million increase from FY 2004. That netted the state a robust $97.9 million.

The state's liquor stores are a holy grail for NH wineries (Food & Wine Magazine selected the State Liquor Store on I-95 North in Hampton as one of the "Top 50 Most Amazing Wine Experiences").

Only three local wineries are currently licensed to sell at NH state liquor stores: Flag Hill Winery in Lee, Jewell Towne Vineyards in South Hampton and Farnum Hill in Lebanon, according to John Byrnes, a commissioner with the NH State Liquor Commission. The three have a total of 24 wines available at the state stores.

Between January and September of this year, NH wineries sold $114,000 worth of wine, or 9,400 bottles, through the state stores, restaurants and grocery stores, Byrnes says.

He reports that liquor sales are up 6 percent so far this year and estimates that wine sales specifically are up about the same percentage over last year's numbers.