Click here to close now.

SYS-CON MEDIA Authors: Lori MacVittie, Liz McMillan, Peter Silva, Greg Wind, Glenn Rossman

News Feed Item

Second Consecutive Record Winegrape Harvest, Experts Explain Market Impacts

NOVATO, CA -- (Marketwired) -- 02/10/14 -- The California Department of Food and Agriculture's Preliminary Grape Crush Report for 2013 has been released. It is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2013 harvest. The Crush Report provides growers and wineries insight into the inventory position for the California wine business as a whole, and influences market dynamics for the current bulk wine market as well as the upcoming 2014 harvest.

Typically, the Crush Report is a fantastic opportunity for buyers and sellers alike to reflect on the past year, assess supply and demand, and develop a strategy moving forward. This year, however, there weren't any major surprises and wineries and growers are keeping their eyes focused on the road ahead to plan strategically for 2014 not knowing the full extent of drought on crop size.

The Crush Report shows that the total 2013 California wine grape crop weighed in at 4.23 million tons. Similar to 2012, the 2013 growing season was nearly ideal throughout the state, allowing for increased yields per acre. This was especially true in the North Coast, in particular, Sonoma County Pinot Noir and Chardonnay. In the Northern Interior, Zinfandel grapes continue to transition from blush wine to red wine. Paso Robles and the Southern Interior suffered from extreme heat which limited production for early varieties like Pinot Grigio. This record harvest stretched capacity to its fullest, putting downward pressure on prices for late season grapes and on some early bulk market sales.

About Turrentine Brokerage
Turrentine Brokerage, founded in 1973, serves as trusted and strategic advisors to growers, wineries, and financiers and specializes in the strategic sourcing of wine grapes and bulk wine from the major growing areas across the globe. Working with thousands of wineries worldwide, and with over 2,000 growers, this experienced team has negotiated transactions between buyers and sellers valued at more than $2 billion over the past decade.

Turrentine Brokerage is available to provide comment and analysis on this report and its probable impact on growers, wineries and consumers. Turrentine Brokerage will have its experienced team of grape and wine brokers and analysts available all day Monday, February 10th and throughout the week for comment and questions.

Key Insights by Region

General/Statewide
"For the second consecutive year, California produced record tonnage for winegrapes, weighing in at 4.23 million tons -- the equivalent of 740 million gallons. However, the specific tonnage by varietal in each region is more important. For example, 50% of the increase over last year's total is attributed to Muscat varieties from the southern San Joaquin Valley." -Steve Fredricks

"Typically, the Crush Report is a fantastic opportunity for buyers and sellers alike to reflect on the past year, assess supply and demand, and develop a strategy moving forward. This year, however, there weren't any major surprises and industry drivers are keeping their eyes focused on the road ahead to strategically avoid the obstacles which 2014 could present, namely the drought." -Brian Clements

Napa Valley
"Napa Valley Cabernet Sauvignon, while setting a district record for crop value, did not sacrifice on quality. A long, moderate growing season allowed grapes to continue to size right up until harvest." -Mike Needham

"As expected, another record price for Napa Valley Cabernet Sauvignon was reached in 2013. The crop value was up 7% and reached an average price of $5,423 per ton." -Mike Needham

"As a region, Napa Valley had a great season. Both growers and wineries were blessed with high quality grapes and growers were blessed with increasing prices being paid from the previous year." -Mike Needham

"The total Chardonnay crop, up 3% from 2012 and 17% above the five-year average, finally broke the all-time record set in 2005. Cabernet Sauvignon, on the other hand, was up 5% from 2012 and 25% above the five-year average, fell 20,000 tons short of the all-time record set in 2005. Chardonnay was actually flat or down a little in the Interior regions and up in the North and Central Coast; Cabernet Sauvignon was up in all major regions, except -- ironically -- Napa Valley and Sonoma County, where demand continues to be strong." -Brian Clements

Sonoma County
"History tells us that when we have two large harvests in a row, the markets soften. In 2013, and moving into 2014, activity has remained relatively strong." -Brian Clements

"We can say that Cabernet Sauvignon is almost 'bullet proof'. Although Sonoma County tons crushed dropped to 43,730 tons, it is still the 3rd largest crop in history and the grape market will continue to be strong for 2014." -Brian Clements

"2013 Chardonnay was 8% larger than 2012 in Sonoma County. Despite two large harvests, wineries are continuing to look for additional supply on the bulk and grape market." -Mike Needham

"Wineries and growers experienced another record crop from Sonoma County Pinot Noir, up 3% from 2012. At the same time, we saw district average price rise 4% to the second highest ever paid at $3,095 per ton. What is good news for wineries and consumers is that the volume comes when needed and the wines are exceptional." -Brian Clements

"2013 Pinot Noir was the second large crop in a row for Sonoma County, which is good news for wineries and growers to help satisfy the consumers growing demand for high quality Pinot Noir." -Mike Needham

North Coast
"The coastal regions of California helped produce a second record crop without sacrificing quality. This couldn't have come at a better time with retail sales above $10.00 showing very strong growth." -Brian Clements

Central Coast
"The regions of the Central Coast of California produced a second record crop without sacrificing quality. This couldn't have come at a better time with retail sales above $10.00 showing very strong growth." -Audra Cooper

"As expected, and despite the lack of rainfall, the 2013 Cabernet Sauvignon crop in District 8, primarily Paso Robles, was slightly larger than last year. For the third year in a row the district average price increased, hitting a record high this century of $1,356 per ton." -Audra Cooper

"2013 was a good year all around for San Luis Obispo and Santa Barbara County Pinot Noir. Increased yields helped set a District 8 record for tons crushed without sacrificing quality and yet the district average price remains relatively unchanged. This increased supply is great for the Central Coast to help satisfy growing consumer demand for high quality Pinot Noir." -Audra Cooper

Lodi
"Increases in Cabernet Sauvignon production from California's Central Valley were from new acres planted in the last few years and new acres coming into full production, which is welcome news as consumer demand continues to grow at a healthy rate above $9 per bottle." -Erica Moyer

"Monterey experienced a perfect summer season resulting in the second largest crop for Chardonnay and a record crop for Pinot Noir." -Erica Moyer

"Prices for the Interior came off the peak from 2012, except for Pinot Grigio. Most notably, prices were down for Lodi Zinfandel and Lodi Merlot, down 13% and 8%, respectively. This is due to tonnage in excess of the contract selling at half or less of the contracted price, unlike 2012, when all tonnage, including excess tons were purchased at contracted prices." -Erica Moyer

"Pinot Grigio production was down 9% at a time when Pinot Grigio consumer demand is continuing to grow at a healthy rate. Most likely, production was down to extended heat in the southern interior." -Erica Moyer

Contact
Brian Clements
Vice President
(707) 495-8151
Grapes throughout CA, especially Napa, Sonoma, Mendocino & Lake Counties

Steve Fredricks
President
(415) 847-0603
Grapes and bulk wine throughout CA and global import/export

Erica Moyer
Grape Broker
(209) 988-7334
Grapes from the San Joaquin and Sacramento Valleys

Audra Cooper
Grape Broker
(805) 400-9930
Grapes from the Central Coast

Mike Needham
Grape Broker
(707) 849-4337
Grapes from the North Coast

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
VictorOps is making on-call suck less with the only collaborative alert management platform on the market. With easy on-call scheduling management, a real-time incident timeline that gives you contextual relevance around your alerts and powerful reporting features that make post-mortems more effective, VictorOps helps your IT/DevOps team solve problems faster.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, will demonstrate the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He will discuss from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT ...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance...
Red Hat has launched the Red Hat Cloud Innovation Practice, a new global team of experts that will assist companies with more quickly on-ramping to the cloud. They will do this by providing solutions and services such as validated designs with reference architectures and agile methodology consulting, training, and support. The Red Hat Cloud Innovation Practice is born out of the integration of technology and engineering expertise gained through the company’s 2014 acquisitions of leading Ceph s...
The free version of KEMP Technologies' LoadMaster™ application load balancer is now available for unlimited use, making it easy for IT developers and open source technology users to benefit from all the features of a full commercial-grade product at no cost. It can be downloaded at FreeLoadBalancer.com. Load balancing, security and traffic optimization are all key enablers for application performance and functionality. Without these, application services will not perform as expected or have the...
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, will discuss why containers should be paired with new architectural practices such as microservices ra...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, will answer that question citing examples, showing how to create opportunities f...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, will analyze a range of cloud offerings (IaaS, PaaS, SaaS) and discuss the benefits/challenges of migrating to each of...
Platform-as-a-Service (PaaS) is a technology designed to make DevOps easier and allow developers to focus on application development. The PaaS takes care of provisioning, scaling, HA, and other cloud management aspects. Apache Stratos is a PaaS codebase developed in Apache and designed to create a highly productive developer environment while also supporting powerful deployment options. Integration with the Docker platform, CoreOS Linux distribution, and Kubernetes container management system ...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, will analyze a range of cloud offerings (IaaS, PaaS, SaaS) and discuss the benefits/challenges of migrating to each of...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...