Daily Business Report-July 30, 2019
‘Their wine is not as good as California wine.’ — Lt. Gov. Eleni Kounalaki
Trade war’s toll on wine
Phil Morain | CALmatters
As the Trump Administration’s trade war with China grinds on, California winemakers are getting crushed by a one-two punch: retaliatory tariff and tax increases of at least 85 percent.
Lt. Gov. Eleni Kounalakis, testifying before an Assembly hearing focused on China trade earlier this month, reported that California’s wine exports to China fell 25 percent last year. Chilean and Australian wine sales to China surged.
Kounalakis: “Let me say for the record, their wine is not as good as California wine.”
David Fischer, of Ramey Wines in Sonoma County: “You could sense the momentum that was coming. Then the tariffs sucked the life out of it all. It pretty much ground everything to a halt.”
Honore Comfort of the Wine Institute said that even if the tariffs ended tomorrow, relationships could take a decade to rebuild.
Bloomberg: Vintners have been leaning on their elected representatives to bring them relief. It’s unclear if they’ve had any impact on the teetotaler president.
Kounalakis’ numbers:
- California almond exports to China have fallen by a third, amid tariffs.
- Australia’s almond exports have increased 88 percent to China.
- Container trade at the Long Beach port fell 18 percent in May.
Kounalakis: “I think people are still in sort of prayer mode that Trump will reverse course,” though she said “that’s not very likely.”
Assemblyman Phil Ting, the San Francisco Democrat who chaired the hearing: “We are not the ones in charge of trade policy.”
Trade talks were to resume Monday in Shanghai. Trump economic adviser Larry Kudlow said Friday: “I wouldn’t expect any grand deal.”
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Major automakers cave to
California on Trump Auto Rule
By Marlo Lewis Jr. | Senior Fellow, Competitive Enterprise Institute
The Washington Post reported on July 25th that Ford, Honda, Volkswagen, and BMW North America have “struck a deal with California to produce fleets that are more fuel-efficient in coming years, undercutting one of the Trump administration’s most aggressive climate policy rollbacks.”
Well, that’s one way to spin it. The administration’s Safer Affordable Fuel-Efficient (SAFE) motor vehicle rule leaves automakers free to meet any California-blessed, cost-inflating, virtue-signaling fuel economy standards they want. It just doesn’t coerce them to do so regardless of how many middle-income households would be priced out of the market for new motor vehicles.
According to the Post, the deal “came after weeks of secret negotiations and could shape future U.S. vehicle production, even as White House officials aim to relax gas-mileage standards for the nation’s cars, pickups and SUVs.” In a joint statement, the four automakers said the deal “will provide our companies much-needed regulatory certainty by allowing us to meet both federal and state requirements with a single national fleet, avoiding a patchwork of regulations while continuing to ensure meaningful greenhouse gas emissions reductions.” More spin.
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Mission Hills apartment
complex sells for $4.85 million
A 24-unit apartment complex at 2810 Union St. in the Mission Hills neighborhood has sold for $4.85 million. The buyer was 2810 Union St. LLC and the seller was Goldman Family Trust. The building features all studio units.
The buyer plans a significant upgrade on the property that will include renovating and modernizing all 24 studio units as well as adding photovoltaic panels on the roof. Prior to sale, the property also just recently completed installation of new windows throughout the building.
Cushman & Wakefield represented both parties in the sale.
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Evolutionary gene loss may help explain
why only humans are prone to heart attacks
UC San Diego News Center
Researchers at University of California San Diego School of Medicine say the loss of a single gene two to three million years ago in our ancestors may have resulted in a heightened risk of cardiovascular disease in all humans as a species, while also setting up a further risk for red meat-eating humans. The findings are published July 22, 2019 in PNAS.
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Connect All startup accelerator seeks
new cohort of diverse founders
By Sarah de Crescenzo | Xconomy
The first business accelerator program in southeast San Diego is accepting applications for its second cohort of entrepreneurs, who would start the program in fall.
The six-month program, called Connect All @ the Jacobs Center, is run by Connect, a longstanding local organization that for years has supported startups through its flagship tech and life sciences accelerator, Springboard; the city of San Diego; and the Jacobs Center for Neighborhood Innovation, a nonprofit organization.
Connect All debuted this year with the mission of supporting diverse and lower-income entrepreneurs. It’s the first accelerator of its kind in the region, according to the organization.
Its first cohort of 13 startups started the six-month program in May, at the Joe and Vi Jacobs Center, a community meeting space in southeast San Diego run by the Jacobs Center for Neighborhood Innovation.
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Viral HIV vaccine gives durable
protection against tough strains
Among HIV researchers, one seemingly indestructible HIV-like strain has earned the nickname “death star.” That’s due to the strain’s reputation for killing off hopes for potential vaccines and immunotherapies that could prevent the disease.
A team at the Scripps Research Florida campus reports successfully beating that challenge. In a paper published in the journal Science Translational Medicine, lead authors Michael Farzan and Mathew Gardner describe their destruction of the “death star” strain and another especially hard-to-fight strain, suggesting it may be possible to protect uninfected individuals from multiple forms of HIV.
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Two therapeutic targets
identified for deadly lung cancer
The vast majority of deadly lung cancer cases (85 percent) are termed non-small-cell lung carcinomas (NSCLCs), which often contain a mutated gene called LKB1. Salk Institute researchers have now discovered precisely why inactive LKB1 results in cancer development. The surprising results, published in the online version of Cancer Discovery on July 26, 2019, highlight how LBK1 communicates with two enzymes that suppress inflammation in addition to cell growth, to block tumor growth. The findings could lead to new therapies for NSCLC.
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Port of San Diego to test new design of bio-enhancing concrete tide pools
The Port of San Diego has approved a Blue Economy Incubator pilot project that will test a new design of concrete tide pools by ECOncrete Inc., a company that aims to bring coastal and marine concrete infrastructure to life while reducing the ecological footprint of such infrastructure (seawalls, breakwaters, piers, etc.).
ECOncrete’s new Coastal Star tide pool has a star-like appearance and is designed to interlock with other Coastal Star tide pools, potentially serving as a replacement for traditional riprap to provide ecological armoring and shoreline stabilization while also creating well-defined local ecosystems that mimic natural rock pools. The tide pools are made with an environmentally sensitive, low carbon concrete mixture
tailored to the environment in which they’re installed. Additionally, the concrete’s chemical composition along with the complex textures and features in the design provide for a favorable environment in which to grow a rich diversity of sea plants, animals and organisms.
At the start of its three-year pilot project with the Port, ECOncrete will install 72 Coastal Star tide pools across three sites along Harbor Island’s shoreline.
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San Diego advertising group joins
the global One Club for Creativity
SDX, formerly the San Diego Advertising and Sales Club, has become a chapter of The One Club for Creativity, a nonprofit organization whose mission is to support and celebrate the success of the global creative community.
SDX board president Greg Carson said
“Just as our organization promoted San Diego to the world for the 1915 exposition, the San Diego chapter of The One Club will bring a new level of global exposure to our highly talented local advertising and marketing professionals,” said SDX board president Greg Carson.
SDX was founded in 1911 by several San Diego businessmen for the purpose of promoting the Panama-California exposition of 1915. More than 100 years since then the association has played a key role in the local marketing industry, and in the community at large. Once called “the greatest luncheon in town” by local business leaders, credits to “The Ad Club” include creating the San Diego BBB in the early 1920s; developing a nonprofit called SAFE that provides funds for San Diego marketing professionals in times of distress; and producing one of the largest and longest-running marketing conferences on the West coast.
The San Diego chapter of The One Club for Creativity is now open for membership at oneclub.org, with the official chapter launch event to be held on Sept. 19.
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Personnel Announcements
Erin Brown named public relations
manager at Fairmont Grand Del Mar
Erin Brown has been appointed public relations manager at Fairmont Grand Del Mar. In this role, she will be responsible for media and influencer relations, community involvement, online reputation management, and social media for the resort.
Brown brings nearly a decade of media and public relations experience to this position, including posts with major hospitality brands such as Kimpton, Andaz, and Marriott. Prior to joining Fairmont Grand Del Mar, Brown worked as the hospitality group manager at Crowe PR, a San Diego-based PR agency, where she was responsible for overseeing more than a dozen clients in the hospitality industry. Her responsibilities included developing PR plans, creating media strategy, maintaining and growing media relationships, and monitoring media trends.
Brown began her career in television news as a morning show producer, where she learned storytelling techniques, how to write newsworthy headlines, and how to create compelling TV segments.
“We are thrilled to welcome Ms. Brown as the new public relations manager,” said Tanya Matthews, regional director of sales and marketing at Fairmont Grand Del Mar. “The combination of her media know-how, local expertise and hospitality experience will be key to the ongoing success of our property.”
Brown’s skills include media relations, strategic planning, writing, social media, and account management. She holds a bachelor’s degree in journalism and digital media from DePaul University.
