The business is serious: Within the massive U.S. food and beverage industry, exceeding $2.6 trillion in consumer spending, wine contributes a generous splash. Forbes says that U.S. wine sales in 2023 reached $107.4 billion, up from $73.4 billion in 2018. In Oregon, grapes are the state’s most valuable fruit, and Oregon cellars have increased in number from about 200 to 1,200 over 15 years and focus on higher quality and price point. With both growth and industry-specific challenges, finding business advantage becomes more nuanced. The 2024 BMO Wine Market Report, a comprehensive publication from the leading business-to-business media company on the North American wine industry, WineBusiness, says that the market “offers opportunities for proactive companies leveraging data to retain or increase their share of the market.” Andrew Adams, report lead author, editor and writer for WineBusiness, discusses business challenges for the industry and Oregon. “The wine industry goes through many different sectors from agriculture to production to distribution, that particularly here in the United States, are very fragmented,” Adams said. “This unique route to market and knowing how all these somewhat disparate pieces enter in and affect each other and how to navigate all the intricacies requires people who are very experienced and skilled. Oregon is not that much different in terms of the wider industry and its challenges at the moment. The post-pandemic trends and tourism have been perhaps a bit harder for Oregon. And while pinot noir is without doubt — and should be — the signature grape of the state, being so closely linked to one varietal is a challenge.” He cites the diversity of Sonoma County as an example of a region that can handle shifts in preference and popularity. “I think chardonnay and sparkling wine continue to offer a lot of potential,” Adams said. “The quality has increased tremendously over the last few years, and I think consumers are gaining an appreciation of those wines from Oregon.” Stepping up are David and Lois Cho, husband and wife, winemaker and wine business manager of the award-winning Cho Wines, which includes of course classic pinot noir, but also white, rosé and sparkling wines. They met playing music on the streets of Santa Monica, got a gig at a winery, and the vision and the dream built up from there. “We really had zero experience in wine,” Lois Cho said. David Cho ’18, earned his bachelor’s in viticulture and enology, gaining experience at Stoller and Argyle cellars. Lois, a nurse practitioner, took to researching compliance and business. They dreamed of and planned for their winery after putting their young children to bed, launching in 2020. While the pandemic impacted revenue streams in tasting rooms across the country and the world, Lois marketed online. “It just started taking off online,” she said. “People are very engaged on social media. We had not foreseen to sell half of our production, before it was even bottled. It was a really exciting time for us, and we saw a future in it.” Business Matters | 7
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