Groundwork for Tomorrow Harvest & Bulk Update
by Steve Fredricks
The California wine industry remains at a stark disconnect between supply and demand. As a result, the supply side of the industry continues to undergo a significant, painful transformation to reduce supply and right size inventories by removing vineyards, closing wineries, liquidating wine, and reducing grape and bulk wine purchasing to meet the reduced consumer demand.
As we know, information in the wine industry has always been imperfect and delayed, whether this be incomplete sales data, slow-to-mature vineyards, or acreage removals of late. Despite the efforts from both wineries and growers to limit supply, market indicators like bulk wine and grape prices still point to the need for further supply reduction, but this could be tied to the aforementioned imperfect and delayed data. Unfortunately, while the wine industry is waiting to realize the full impact of this work and whether more needs to be done, finances at all levels of the industry are strained. This creates a challenging environment where conservative inventories are the safest strategy, causing wineries and growers to tackle immediate problems rather than strategically plan for the future.
At Turrentine Brokerage, we are committed to gathering comprehensive information and supporting our clients through the industry reset, both for today and the future.
- Grape Market 3
- North Coast 3
- Central Coast 3
- San Joaquin Valley 4
- Bulk Market 4
- Cabernet Sauvignon 5
- Chardonnay 5
- Pinot Noir 6
- Conclusion 6
- Crop Contest 7
- Turrentine on the Road 7
- Market Opportunities 8