Maybe some excellent bargains in Kits this next year?
With the supply line of wine clogged, growers worry over who will buy their crop
Need Napa Cabernet grapes for harvest 2009? No problem. Russian River Pinot Noir can be had by the truckload. California is facing its worst oversupply of fine-wine grapes in decades. Veteran grower Andy Beckstoffer says it may be the worst market since the mid-1970s, when California wine was in its infancy and a considerably smaller industry. While that's bad news for growers, consumers are in for a potential bonanza in the next year or two.
With harvest just weeks away, contracts typically would have been signed months ago, but growers in Napa, Sonoma and beyond have been left hanging, along with their grapes. The problem is the recession. Consumers are buying less wine in the $20 and higher range, and many wineries, retailers and wholesalers have a backlog of inventory.
Just consider the going rate for Napa Cabernet Sauvignon: In 2008, the average price per ton was $4,689, according to the state's official crop report. While prime vineyards are still going for a premium, online classified ads are offering hillside Napa Cabernet for $2,000 a ton.
High-end Cabernet from Napa and high-end Pinot Noir, particularly from Sonoma County, are taking the biggest hit. Central Coast Chardonnay is also in oversupply, according to Steve Fredricks, managing partner of San Francisco-based Turrentine Wine Brokerage.
Full Article here:
http://www.winespectator.com/webfeature/show/id/40486
With the supply line of wine clogged, growers worry over who will buy their crop
Need Napa Cabernet grapes for harvest 2009? No problem. Russian River Pinot Noir can be had by the truckload. California is facing its worst oversupply of fine-wine grapes in decades. Veteran grower Andy Beckstoffer says it may be the worst market since the mid-1970s, when California wine was in its infancy and a considerably smaller industry. While that's bad news for growers, consumers are in for a potential bonanza in the next year or two.
With harvest just weeks away, contracts typically would have been signed months ago, but growers in Napa, Sonoma and beyond have been left hanging, along with their grapes. The problem is the recession. Consumers are buying less wine in the $20 and higher range, and many wineries, retailers and wholesalers have a backlog of inventory.
Just consider the going rate for Napa Cabernet Sauvignon: In 2008, the average price per ton was $4,689, according to the state's official crop report. While prime vineyards are still going for a premium, online classified ads are offering hillside Napa Cabernet for $2,000 a ton.
High-end Cabernet from Napa and high-end Pinot Noir, particularly from Sonoma County, are taking the biggest hit. Central Coast Chardonnay is also in oversupply, according to Steve Fredricks, managing partner of San Francisco-based Turrentine Wine Brokerage.
Full Article here:
http://www.winespectator.com/webfeature/show/id/40486
I'm curiouc to see if wineries will hold steady for better profit margins when sales pick up in the future or if they will adjust prices down. I'm sure it just depends on the state of the individual business as to whether it can weather the sales slump. I've been picking up $48-$150 bottles for 50%+ off recently and have been enjoying that. The funny part about wine is this - no matter what I pay for a $60 bottle of wine, it's still the same wine inside.
