Perhaps the biggest panel at the Wine Industry Financial Symposium was made up of Rick Magnuson of GI Partners, Ray Chadwick of Young’s, Peter Mondavi of Charles Krug Winery and Adam Beak of Bank of the West. It was moderated by Robert Nicholson, president of the International Wine Associates.

That is a big question that has been floating around the wine industry (and spirits and beer industries for that matter) for some time. Recent Nielsen scan data shows that wines priced above $20 per 750 ml bottle are taking the biggest average price decrease, down -43 cents in the 4 weeks to August 21. Yes, that category is posting solid dollar sales and volume growth, but at what cost?

Bill Legion, president of Hahn Estates, took the stage during Day Two of the Wine Industry Financial Symposium earlier this week in Napa. Bill is perhaps best known for creating the Rex Goliath brand before it was sold to Constellation Brands a few years back. Hahn Estates is a family owned business and currently going through a generational transformation, said Bill. The winery sells about 400,000 cases a year.

We journeyed out to Napa Valley this week (yes, it is quite a journey from San Antonio, TX but well worth it) for the annual Wine Industry Financial Symposium. We listened to industry greats talk about the economy, consumer trends, outlooks for the California wine industry and forecasts for mergers and acquisitions. One thing we heard over and over is that Muscat is the “hottest grape” in California right now and every brand wants one.

After yesterday’s joint letter from alcohol beverage suppliers, the Wine Institute and Wine America issued their own statement speaking out against the new language for HR 5034. They write that Congressman Bill Delahunt’s amendment “still grants unprecedented powers to allow wholesalers to pass anti-competitive, discriminatory state laws.”

Despite the changes made to HR 5034 in an attempt to appease beer, wine, and spirits suppliers, the organizations representing all of the major bev-alc suppliers have issued a letter to Congress opposing the amended legislation. “By its very language, the primary function of this legislation is to affirmatively permit states to pass discriminatory laws that are in opposition to the Commerce Clause…

Safeway is officially in the game folks. The retail giant dropped $300,000 earlier this week to Modernize Washington, the group backing Initiative 1100. That puts Safeway’s grand total at $325,000. Costco also donated another $95,000, which boosts their donations to a total of $1,333,564.68. Wal-Mart has yet to expand its donation of $40,000.

Most associations are so far keeping mum about their reaction to the revised language in HR 5034, except for the retailers. The Specialty Wine Retailers Association was quick to decry the new language yesterday because it specifically offers protection from intentional and facial discrimination to “producers,” and does not name retailers.

We’ve heard little of HR 5034 (or the CARE Act) lately but new developments surfaced yesterday. It turns out that CARE’s lead sponsor, Rep Bill Delahunt, has sent a letter to House Judiciary Chairman Rep John Conyers proposing modifications to the language in HR 5034 that more accurately mirrors the Supreme Court ruling from the Granholm case.

“We believe premiumization is finally starting to return to the [spirits] market, and if current momentum continues, we would expect to see significant improvements in mix in the second half of the year,” said Bernstein’s Trevor Stirling in a note to clients.

Local wineries and spirits companies are increasingly entering the privatization discussion now that it’s clear both I-1100 and I-1105 will appear on the November ballot. Washington vintner Darby English of Darby Winery is appearing in a television ad backed by the anti-privatization group “Protect Our Communities,” which largely consists of beer distributors, brewers and labor unions.

The newest donation to Modernize Washington, the group that is backing I-1100, comes from Wal-Mart at $40,000. This marks Wal-Mart’s first donation to the cause and may not be the last, especially since it is a relatively small amount compared to Costco. Safeway donated $25,000 in early August, which marks the only other major retailer to lend a hand.

The Australian first reported that Cerberus Capital Management is believed to be the mystery private equity firm that made an unsuccessful play for Foster’s wine business. But Foster’s is still keeping mum. Cerberus is best known for its failed investment in Chrysler. It is one of the largest private equity investment firms in the US, based in New York and run by Steve Feinberg. But other private equity groups are reportedly in line…

Diageo issued a statement today essentially clearing its name. Diageo reiterated that its deal with the US Virgin Islands to build a Captain Morgan distillery on St. Croix was entirely independent and did not involve any member of the US Congress.

Fosters Group issued a statement this evening saying that it ‽rejected” an ‽unsolicited expression of interest” to acquire Treasury Wine Estates. They only said the offer came from ‽an international private equity firm” but did not name any names. The proposal is for a cash consideration of between $2.1 billion and $2.5 billion (A$2.3 billion and A$2.7 billion) for 100% of the assets.