Changes at Cutchogue winery will not affect its Riverhead retail store, general manager says

A Cutchogue winery is giving over management of its vineyards to others this season, citing the high cost of grape production.

Peconic Bay Winery’s vineyards, first planted in 1979, will be run by the new owners of Lieb Cellars and Premium Wine Group, according to Peconic Bay Winery general manager James Silver.

“One of our vineyards will be run by Bill Ackerman [of North Fork Viticultural Services] and the other by Steve Mudd [of Mudd Vineyards, LTD.],” Silver told RiverheadLOCAL this week. “They will farm the land and take the grapes for themselves. No money will exchange hands.”

This arrangement will ensure Peconic Bay’s vines will continue to be maintained and cared for, Silver said.

Empire State Cellars, Tanger Outlet Mall’s one-stop shop for New York state wine and liquor in Riverhead, which is owned by the winery, will remain open. Peconic Bay moved its tasting room operation to the Riverhead store this winter.

“The company considered selling some property, including the winery, and ultimately decided against it, but Empire State Cellars was never in danger of being sold,” Silver said. “That actually makes money.”

Silver said Peconic Bay is “downsizing our production because it costs too much money to grow grapes.”

Long Island Farm Bureau executive director Joe Gergela said Peconic Bay Winery isn’t the only wine grower looking to shed acreage in some way.

“There are others that are exploring getting out for various reasons,” Gergela said in an interview Wednesday afternoon.

“Some people didn’t realize what they were getting themselves into. They thought it was a good investment and then found out they weren’t guaranteed to get a return,” Gergela said.

“At the end of the day, we have to be competitive with other wine regions and we can’t compete against five dollar bottles,” he said.

According to Gergela, the high cost of land, labor, equipment, fuel and chemicals are making it difficult for all Long Island farmers.

“The cost of doing business is very high and that makes it harder to compete,” he said. “Whether it’s a vineyard or a traditional farm, it costs more money to farm here.”

Long Island Wine Council president Ron Goerler also said the problems vineyards face are not unique to growing grapes.

“There are high costs associated with running any business, particularly in Suffolk County,” Goerler said. “It’s not just our industry, but all agricultural enterprises.”

But that doesn’t mean there are added challenges to growing wine, according to Goerler.

“Grapes are a perennial crop, so running a vineyard has year-round maintenence costs associated with it, including labor, fertilizers, pesticides and machinery,” he said.

Though Peconic Bay Winery ultimately decided against selling its vineyards, some of the upcoming events there have been scrapped, according to Silver. The North Fork Rock and Folk Fest, which would have occurred on the winery property this August, will no longer be held there, he said. A car show will still be held there on the first Sunday in July and the Pour the Core Hard Cider festival planned for October is also still on, Silver said.

“For now, wine production continues [at Peconic Bay.] We’re just not farming the land anymore. We’re letting other people do it, which is okay. It’s a good thing.”

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