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« BACK Why do Texas wines have such a poor reputation? There are many opinions on the subject. Wine writers often opine that Texas has yet to find its varietal. New Zealand made a huge splash in the world market with sauvignon blanc. Oregon has done remarkably well with its excellent Pinot Noirs. But growers in Lubbock prefer cabernet sauvignon because it draws the highest prices. Unfortunately, Texas wineries must compete in this crowded category with inexpensive imports from Australia and Chile and highly rated wines from Washington, California, and, of course, France. Consumers also fault Texas wines for inconsistency, a problem inherent in small wineries. "Small batch wines are easy to screw up," said McKinney. "Every little effect is magnified. It's hard for small wineries to consistently make great wine." How small are Texas wineries? Consider that in the early 1980s, St. Genevieve made nearly all the wine in the state. And if you include bulk wines and grape juice sold to other wineries, it still accounts for somewhere between 50 percent and 70 percent of Texas production -- which means that the other 39 wineries in the state combined produce less than one average-sized California winery. "We may just end up growing grapes for California," McKinney said of the future of the Texas wine industry. "Grapes make economic sense. There is already a California winery with 800 acres planted in Texas. Lubbock is so cheap compared to California!" He predicted that the state would continue to have "a small tourist-oriented industry." "The laws are just too restrictive here for anything else." If you have a tasting room, the laws in Texas say you can sell only 25,000 gallons, he lamented. That keeps anybody from getting big. What would it take for Texas to really get into the wine business?"I have an unpopular position," McKinney answered. "I don't think the industry will take off until some big names get involved." French investment and expertise helped build the wine business in California and Oregon, he observed. If a big California or French winery were to locate here, it would give Texas some credibility. So why can't that happen? "It all comes back to the TABC," said McKinney. "The laws in Texas won't allow it." A winery permit is subject to the same rules as any other alcoholic beverage permit, and the law requires 51 percent Texan ownership for at least 12 months. Shell corporations and phony partnerships are routinely set up to get around these laws. But Rothschild, Mondavi, or Gallo aren't going to get involved in those kinds of legal shenanigans. Neither is Texas going to get a multimillion-dollar showcase like Chandon in Napa, with a state-of-the-art winery, a fabulous restaurant, and a tourist facility, McKinney predicted. "Nobody is going to invest that kind of money and take a chance on a legal battle, too." The Texas wine industry is getting stomped. Statistics show that the industry peaked in 1997 when 27 wineries produced 1.7 million gallons. Since then the number of wineries has increased to 40, but the production level, which dropped to around 1.3 million gallons in 1998, has remained flat. A million gallons may sound like a lot of wine, but it's a stain on the tablecloth compared to the 444 million gallons California produced last year. NEXT »
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