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Bacchus Importers, Ltd. - 1817 Portal St - Baltimore, Maryland 21224 - Phone (410) 633-0400 www.bacchusimportersltd.com

The Hogue Cellars Wine Quality through Information Technology

Story by Amy Mumma

Most people think of Washington State as Seattle, rain and coffee, but in

reality it is a land of contrasts. The Cascade Mountain Range geographically

divides the state down the middle. On the west side, the weather is mild with

ample rainfall. It accounts for 80% the population base and has a strong

diverse economy based on technology, manufacturing, tourism and trade.

The eastern part of the state lies in the rain shadow of the Cascades, with a

look and feel much different from its west side sister. Eastern Washington is

a land of high desert vineyards, with only eight inches rain annually, long

summers and harsh, cold winters. The Washington wine industry is a

symbiosis of both sides of the state, combining rugged beauty, the spirit of

innovation and a respect for the earth.

The true nature of Washington State is embraced by The Hogue Cellars

through the people, their innovative use of technology and the regionally

typical wines they create featuring vibrant acidity and fresh fruit flavors.

Hogue History


As often happens with fine wine, it all started at Hogue with beer. Eastern Washington is one of the

main hop growing regions in the United States, so in 1944 Wayne and Shyla Hogue bought 80 acres

of hops. Their son, Mike Hogue, planted six acres of Riesling in 1974, and this is where the Hogue

wine story began.

In 1982, the Hogues' sons, Gary and Mike, entered the Prosser Wine & Food Fair and, with Shyla

using a shoebox as a cash register, sold $800 worth of wine. The modern Washington wine industry

began in the early 1980s, so Hogue Cellars was one of the early pioneers.

After extensive searching for a suitable name, they reluctantly chose to use Hogue Cellars, a

fortunate decision. The name Hogue Cellars provided a sense of continuity of years in the farming

industry and a story concerning the people behind the brand.

But what put Washington and Hogue on the map? Château Ste. Michelle, Washington's largest wine

producer, had strong brand equity which brought greater recognition to all Washington wineries in the

1980s and to Washington State as a high quality wine producing area.

In 1982, with production at 2,000 cases, Hogue envisioned reaching 20,000 cases within 10 years. In

1983, a vacant building in Prosser, Washington was converted into The Hogue Cellars Winery and

Tasting Room. The natural beauty of the Northwest and the potential of Hogue called to David

Forsyth, a Washington native and UC Davis graduate with a Master's in Enology. Forsyth left Napa's

Vose Winery in 1984 to join Hogue's winemaking staff and was soon promoted to Director of

Winemaking.

By 1985, production reached 20,000 cases, seven years ahead of the goal. States Gary Hogue,

“Then the work began. At around 60,000- 80,000 cases, it became a real business, not a hobby or

ego trip.” The first key lay in designing an appealing package and label. Then the Hogue team

canvassed the marketplace by establishing a distributor, visiting customers and embracing the value

and importance of media contact. In 1994 the Los Angeles Times selected Forsyth as Winemaker of


the Year and by 1996, a one million dollar expansion project boosted production to over 400,000

cases.

Recognizing Hogue's quality wines, staff and production facilities, Vincor International purchased the

company in 2001. Vincor, based in Toronto, also owns Jackson-Triggs and Inniskillin wineries in

Canada and R.H. Phillips in California.

A Continuous Feedback Loop:

Communication For Quality

Hogue Cellars' goals include producing high-quality products to compete

in a larger, more competitive market while still controlling costs. They

strive to be flexible enough to adjust to trends and changes in the

market, but not cut corners at the expense of quality. Information

technology is the means of achieving those goals.

The Hogue Cellars believes in a continuous feedback system that

incorporates the growers, vineyard practices, winemaking, sensory

evaluation, product profiling, and sales and marketing. Data is collected

at all stages and is input into a sophisticated central database system

that Hogue winemakers utilize to constantly monitor and improve their

wines.

“We collect and manage the information so we can make the best use of it. We look at the trends, but

we also look at what we can do best here. We focus on our core strengths and develop a strategy

around them,” states David Forsyth, General Manager and Director of Winemaking.

Rick Hamman believes that

communication is the key to

high-quality grapes.


Gary Hogue attributes much of the winery's success to their continuous feedback loop. This unique

system assures that growers, winemakers, tasters, and sales and marketing teams are all working

together toward the goal of producing the highest quality wine possible.

Long-range planning is what led to the creation of a proprietary Data Warehousing System.

Electronically bringing all the data from viticulture, winemaking, and sensory analysis together into

one place, it is a tool that winemakers at Hogue use to improve wine quality. This information system

gives access to current and historical data. It compiles up-to-the-minute information and generates

predictive models, giving Hogue a clear view of their products and

processes over time, and a competitive advantage in the marketplace.

The information collected from previous and current vintages allows the

growers, viticulturists, winemakers, and sales and marketing staff to

make “real-time decisions” that affect wine quality on many levels.

Grape Communication And Crop Estimation Long-range planning is part of Hogue's plan to manage contracted fruit to meet projected sales

figures five to seven years out. This is done in a quality context to meet the desired profile. Gary

Hogue states, “In order to be successful in the wine business, the viticulture and production is the

ante in the poker game. You can't play unless you ante up!”

Hogue employs three full-time viticulturists. Rick Hamman, lead viticulturist, has 22 years in the grape

growing industry. In the early 1980s he initiated and managed vineyard research trials at Colorado

State University while earning a Master's degree in Horticulture, and by 1989 he became the first

state viticulturist for the embryonic Colorado wine industry. Four years with the Peace Corps in

Guatemala developing basic farming techniques underscored the value of communication with the

people and the land.

Grapes from Washington

are intensely flavored and

vibrant with good acidity.


During the growing season, the Hogue viticulture team visits each block in individual vineyards every

two weeks, and winemakers visit once a month to collect data on the conditions of the vines and

grapes. This data, including physiological and phenolic ripeness, is recorded on a palm pilot. Data is

then downloaded into Hogue's database. Hogue has been using this technology for six years, so has

a good track record for comparison. From this data, reports are generated for each grower that

include observations and recommendations including leaf removal, cluster thinning and irrigation

practices to improve quality and crop adjustment for desired yields.

Crop estimation is a valuable tool. Not only is it critical to a balanced vine and wine quality, but it also

allows the winemakers to prepare for harvest logistically by knowing ton yield from each block,

amount of tank space needed, types and amounts of yeasts to purchase and many other parameters.

Crop estimation begins July 5th and continues for three weeks. A number of individual vines are

harvested, clusters counted and weighed. Using an algorithm developed from past years of data

collection, an anticipated cluster weight at harvest is determined and with cluster number and vine

density an anticipated crop load can be determined. The Hogue team sends recommendations to the

growers prior to veraison. The typical crop load for the Reserve and Genesis lines is between three to

four tons per acre and for the Hogue line, wines that retail for under ten dollars, the yield may be

between five to six tons per acre.

As harvest nears, the viticultural crew brings in vineyard samples. The grapes are analyzed for brix,

acidity and pH and tasted by the winemakers. This information is entered into the database and can

be compared with earlier samples from the same vineyard block. Additionally, a winemaker can go

back to sampling and harvesting data from previous years to help in forming a picking decision.

Hogue contracts with 56 growers, 2,000 acres of vines and 280 individual blocks. When dealing with

this kind of diversity and harvesting logistics, Hamman wants no surprises. “Communication is one of

our most important aspects of our grape program.”

From December through March, Hogue winemakers and viticulturists meet with individual growers to

taste the wines made from their grapes. Hamman states, “We grow with the growers. You can tell

them what to do, give them recommendations, but they need to see it and taste it in the wine.”


This level of involvement allows for open communication, allows them to explore better practices in

the vineyard and to constantly improve quality. Hamman gives a concise, custom report to each

grower. He scores them for quality on a rating system devised by the winemakers. Growers are paid

in a variety of forms, by the ton, by the acre and within a bonus structure. Growers producing grapes

that end up in Hogue's Genesis or Reserve lines receive a 30-50% bonus. Hogue has written

contracts with all growers.

In February, Hogue hosts an annual growers' luncheon. A presentation is given on areas of general

interest and research and includes results from the previous year, tons, acres and events at Hogue.

The “Grower of the Year” award goes to one grower based on viticultural merit and most importantly,

communication. In addition, each grower receives a case of wine, a Hogue hat and jacket, and a CD

copy of the presentation.

ACTIVE WINEMAKING ON A LARGE SCALE

Jordan Ferrier is Hogue's red winemaker with a Bachelor of Science in

Chemistry from the University of Washington and a Master's degree in

Enology from UC Davis. At UC Davis, Ferrier worked on artificial neural

networks and projection models. Applying his knowledge and technical

skills at Hogue, Ferrier developed an unrivaled Data Warehousing

System that tracks and monitors every piece of data from the vineyard to

the winery; data that Hogue uses to continuously improve wine quality.

“Many wines are made by serendipity” says Ferrier, referring to the vast

number of variables that have to come together almost by accident to

make great wine. As a way of taking control of some of those variables,

he developed a phenolic analysis program. “It's not unlike analyses that are used on a small scale in

research at universities and such, but I've developed a system that works in a large scale production

environment.” This system is used to “catch information that might otherwise be falling through the

cracks. We leverage the information to make the right decisions at the right times, and change the

variables to drive the wine in the direction we want.” All information on the grapes, winemaking,

Jordan Ferrier, red

winemaker, records tasting

data in a palm pilot to be

downloaded to the Data

Warehousing System.


movement and organoleptic profiles are in the database and analyzed against sensory profiles and

wine history. “Many wineries are making million-dollar decisions based on scratches in a notebook.

There are a lot of aspects to winemaking, we're just trying to use up-to-the minute information to

make the best wine possible.”

Red grapes are all machine-harvested, usually in the afternoon to take advantage of the heat to start

fermentation. If required, the must is heated to a minimum of 70o F by a heat exchanger. All reds are

fermented in stainless steel tanks ranging from 2,100 to 7,600 gallons in capacity.

There are two pumpovers each day and air is added as required to reduce sulfides and aid in the

cross linking of anthocyanins with tannins to improve color and structure. Temperature is monitored

carefully with optimal between 82-92 degrees F. Extraction is monitored by daily tasting and testing of

phenolics and pumpover regime is modified to tailor extraction for each vineyard block. That color,

spice and flavor go hand in hand is reinforced by Forsyth. Hogue has found that the majority of color

is extracted within three to four days, with extraction of tannins completed shortly after. Every red

wine goes through a micro-oxygenation program. Early blending is desirable at Hogue and is done

prior to barrel storage. This helps balance the wines and improve tank utilization.

The oak program includes a mix of barrels, coopers, tank staves, and micro-oxygenation. In 1997

Hogue began using staves and in 2000 initiated stave product testing to ensure the highest quality.

The testing includes sensory and chemical analyses. Hogue uses staves based on target profiles and

has identified staves with the desired complexity and lacking faults.

Red wines are aged in 85% American oak and 15% French oak. Wine aged in barrels is sampled by

the winemaker and the organoleptic data is recorded into a palm pilot. Barrel management data also

includes types of barrels, storage time, additions of sulfur dioxide, rackings, and tracking of barrel lots

and individual barrels. With over 300 red lots and 10 final blends, the winemakers may, on a given

day, evaluate up to 30 lots. All information is then downloaded at the end of each day to the Data

Warehousing System.


Co Dinn is the white winemaker and came to Hogue with a strong

background in winemaking. Holding a Masters in Enology from UC

Davis, he worked in California for Sterling Vineyards and Trefethen

Vineyards before joining the Hogue team in 1996.

Nearly 98% of white grapes are machine-harvested at night or early

morning to preserve freshness in the fruit. Cold settling with enzymes

takes place overnight. Fermentation is mainly in stainless steel using a LOGIX system to monitor and

control temperature. There are approximately 1,200 barrel fermentations of chardonnay and viognier.

Washington State is blessed With hot days and cool nights, giving a vibrancy and acidity to the

grapes. Dinn's philosophy is to “ preserve the inherent qualities of our fruit.” Riesling, gewürztraminer,

pinot gris, and sauvignon blanc are all treated gently. The yeasts are chosen according to variety with

trials ongoing. No wild yeasts are used.

As with everything else at Hogue, each process through receiving the grapes, pre- and post-

fermentation, and storage is carefully monitored, tracked, and recorded, all in the name of quality

improvement.

“We are technically savvy, but we never lose sight of the fact that wine is still an artisanal product and

we are truly craftsmen. The use of technology and information frees us up to be more innovative than

we could be otherwise,” states Co Dinn.

Co Dinn, white winemaker.


Micro-Oxygenation At Hogue With 54 micro-oxygenation (MOX) units, Hogue is one of the largest

users of MOX on the West Coast. True to the Hogue nature, little is left

to chance. Complete trials were conducted before moving to a complete

MOX program. Hogue works with Oenodev of France, the original

inventors of the micro-oxygenation technique and purchased their

delivery system from the company. Hogue moved to MOX treatments,

not necessarily to replace barrel fermentation and aging, but to avoid

past problems such as reductive compounds. MOX has also been

shown to decrease vegetative flavors, increase tannin and anthocyanin

stability, and improve structure and mouthfeel in the finished wines.

Forsyth notes that MOX has advantages and disadvantages. It requires

fewer rackings, less floor space is needed and cuts down on labor costs.

However, “MOX does not manage itself, and it's not a cure all.” MOX

units are not expensive, but they require a lengthy learning curve and

the winemaker must be extremely vigilant. It doesn't fix extraction

problems and there are still some sulfides to deal with.

The Hogue strategy is to “hit 'em hard” prior to malolactic fermentation, using 100 ml/liter per month to

develop low amounts of aldehyde to help form the anthocyanin- tannin complexes and reduce

sulfides. After malolactic fermentation and SO2 addition, the treatment is gentler, from 1 to 10 ml/litre

per month.

Hogue maybe unique in using microoxygenation (MOX) on chardonnay. The process goes from 30 to

45 days, and is not intended to replace barrel fermentation. Instead, it emulates the amount of oxygen

the wine would receive during normal barrel storage. By using MOX in tank, Dinn believes that it

takes out the “canned, tinny flavors” that tank storage can impart. Only French oak is used for those

whites stored in barrel.

David Forsyth

demonstrating the

components of a MOX

treatment. Hogue has 54

MOX units all at work

making

better wine.


It's Not Wine By The Numbers As part of the overall database, Hogue has developed a unique Sensory Database. This program of

product profiling is a quantifiable way of sensory evaluation. The goal is to identify what sensory

attributes are associated with wine quality. From there, the sensory attributes are associated with

grape and or winemaking in keeping with the continuous feedback loop.

Much of the information in the Sensory Database is derived from the

Benchmark Tasting Process. Hogue assembles a consistent panel of

winemakers, and sales and marketing, and management staff. The

panel's first challenge lay in developing consensus around aroma and

flavor descriptors specific to each variety. This rather lengthy process,

often accompanied by spirited debate, resulted in a consistent set of

evaluation criteria. Once these descriptors were determined, they were

input into the database.

Each taster has a laptop with the sensory database. The wines are tasted blind and evaluated for the

intensity and quality of each descriptor and then assigned a preference rank. The goal is to evaluate

the relative quality and style of the Hogue wines against the competition and to get a sense of what

defines quality for the product segment. The tastings also allow the group to discuss labels,

packaging, sales figures and market trends. The Benchmark Tasting includes eight to ten wines, all of

the same vintage, and includes Hogue wines with similar competitors, mainly from California and the

big estates in Washington such as Ste Michelle Estates and Columbia Winery. This process is

repeated once a year for most of the Hogue products.

While the Benchmark Process gives the Hogue winemakers and marketers a good snapshot with its

small sample size it does not give a full picture of what is driving wine quality. To fulfill this need the

Developmental Tasting was initiated four years ago. The Developmental Tasting involves 50 different

wines from around the world and is done once a year with one selected variety. Prior to tasting, the

wines are chemically analyzed for phenolics, acids, sugars and other components. In addition,

Efficient use of technology

to

increase quality.


research is done on the producer, ratings, brix at harvest and other parameters. The same database

template used for the Benchmark Tasting is employed for the Developmental Tasting.

After the blind tasting, a cluster map is developed and the wine preferences matched to the previous

chemical and sensory results and statistically analyzed. Hogue's goal is not to have all their wines in

one cluster, but rather to direct their wines toward particular clusters with the taste and quality

characteristics that they desire. The findings not only drive winemaking practices, but also vineyard

practices and sales and marketing decisions. The information is then put into a Standard Operating

Procedure. “When we make a great wine, we want to know how we did it,” states Forsyth.

Tastings and cluster analyses allow sales focus and action points so Hogue can effectively target

their intended market and plan for the future, a strategy Forsyth calls “identifying what you are

shooting for, before you start shooting.” “It's not winemaking by the numbers, its part of the picture,

but not the whole picture,” confirms Forsyth.

Strategic Planning and the Market The strategic plan is being constantly updated and changed in response to consumer preference,

pricing, supply and demand. Hogue uses the Benchmark and Developmental Tasting Processes to

help drive that strategic plan. Two-thirds of their wine is sold outside the Northwest. Although the

wines are distributed in Europe and Asia, sales are concentrated primarily in the U.S. market.

According to Gary Hogue, wine is the same as any other product. It takes all elements of production,

demand creation, marketing, sales and professional staffing to ensure success. How does Gary sum

up the brand tag line for Hogue? “Value at every price point for every varietal.”


Wine Tracking Sharon Clinton is the Wine Analyst for Hogue. Clinton first came to

Hogue with a background in Information Technology and Accounting

and was thrown right into the fire. “I started a month prior to harvest and

didn't know much about wine, except that I liked to drink it.” During those

first months she lived and breathed the job and came up with some

innovative solutions. Hogue already had wine tracking software, but

couldn't get the data out in a functional, useful way. Exporting the data

into spreadsheets to be manipulated in useful ways solved that problem.

“I observed that we were devoting a lot of time just trying to find

individual barrels in the barrel room. I worried about this so much that the solution, believe it or not,

came to me in a dream—“trick the database!” Taking an unused field in the database and redefining

it, Clinton came up with a physical location code to attach to each barrel group and barrel—a tool that

reduces the amount of time it takes to locate barrels.

The wine tracking database has proven valuable in compliance with federal bioterrorism regulations.

Any time the wine is treated, such as adding sulfur dioxide, or when the wine is moved, such as

racking, it must be logged and tracked according to regulations. This data goes into the tank chart,

which in turn helps the winemaker track the progress of the wine.

According to Forsyth, one of the challenges has been to keep a high level of professional staffing.

Hogue has been fortunate that David Forsyth has over 20 years of history with Hogue, Co Dinn has

been with the company for nine years, and Jordan Ferrier for five years. But with the explosive growth

in the Washington wine industry, the lure of starting one's own winery in such a perfect climate has

been a strong one. What keeps them there? It's the culture that Forsyth has nourished, the pervasive

desire to make great wine.

Through technology Hogue

is able to track every barrel

in their winery.


It All Comes Down To Communication When asked what the best moment has been at Hogue, Forsyth responded, “Well, there are the big

occasions . . . Naturally, you're going to pop the champagne when you win “Winemaker of the Year,”

but day-in and day-out, the most rewarding thing for me has been when information and sensory

technology and market response are a confirmation of what you did. It's one of those “aha!” moments

when all the pieces fit and everybody knows it.” What will the future hold for Hogue Cellars? In the

words of David Forsyth: “We've only scratched the surface.”

Washington Wine Industry at a Glance �2nd largest wine producer in the United States

�Wine production: 16 million gallons (60.6 million liters)

�300+ Wineries

�300+ Growers

�30, 000 acres under vine

�Over 20 varietals grown: 57% red, 43% white

�Leading red varietals: merlot, cabernet sauvignon, syrah, cabernet franc, sangiovese.

�Leading white varietals: chardonnay, Riesling, sauvignon blanc, Semillon, viognier.

�Washington has six major American Viticulture Areas: Yakima Valley, Walla Walla Valley, Columbia

Valley, Puget Sound, Red Mountain and Columbia Gorge

�Total economic impact on Washington State: $2.4 billion

�Total retail value: $628.4 million

�Full time wine related jobs: 11,250

�Percentage of Washington wine sold in state: less than 20%

�The majority of Washington wine is sold out of state and

exported


The Genesis Story For Genesis wines the Hogue team searches out unique vineyard sites and

creates wines that express the nuances of the site and the individuality of

the wine-maker. To express the idea behind Genesis, the label depicts a

figure called “Shaped Hully” by Northwest artist Matthew Dennison. The

painting of an oversized figure standing on the edge of land, sea and sky

represents the geography of Washington State and the passion and drive of

exploration and discovery.

Success with Screwcaps Hogue Fruit Forward Wines are the first

Hogue line to be sealed under Stelvin

screw caps and account for 375,000

cases. Hogue conducted an extensive

three-year study examining the effect of

five different closures on its wines. Their findings showed that screw caps proved to hold fruit and

maintain freshness more effectively than synthetic or natural corks. More research is under way

regarding the use of more gas permeable liners than what is currently available, which may prove

beneficial in the development of wine within the bottle, being more on par with a good cork in terms of

oxygen permeability. Hogue conducted extensive studies before moving to screwcaps for the Fruit

Forward wines.

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