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Turentine + UC Davis

July 10, 2014

UC Davis Extension and the Department of Viticulture and Enology is hosting their annual OIV Wine Marketing Program. Michael Robichaud, Bulk Broker here at Turrentine Brokerage, will be presenting at the Grape Supply & Economics of Production seminar.davis This two-week program focuses on the economics of production and marketing grapes and wine in the United States.
For program details, click HERE.

Michael Robichaud

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Turrentine in the News: Forecasts Shortage of Sonoma Cab

June 18, 2014

Steve Fredricks, President here at Turrentine Brokerage was recently interviewed by Paul Franson of Wines & Vines. Steve discusses the latest publication of the Turrentine Outlook in an article entitled, “Turrentine Forecasts Shortage of Sonoma Cab”. (Article originally posted June 16, 2014). To read the article please click here.

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Steve Fredricks Turrentine Brokerage.compressed

Steve Fredricks, President

 

 

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Turrentine On The Road: Vineyard Economics Seminar

May 12, 2014

Understanding the balance of supply to demand of specific varietals and appellations are vital to successful short and long-term planning.  Steve Fredricks and Mike Needham of Turrentine Brokerage will be presenting a selection of Turrentine’s proprietary market research at the Vineyard Economics Seminar.  There will be an overview of the domestic and international wine markets to update the balance of supply for grapes and bulk wine.  Turrentine will also provide an update of how wineries in California are navigating the uncertainty of vintage 2014 with statewide drought concerns.

Steve Fredricks Turrentine Brokerage.compressed

Steve Fredricks

Vineyard Economics Seminar
May 14th, 2014

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For more information about the Vineyard Economics Seminar, please click the link below.

http://register.winesymposium.com/2014vineyardeconomicsseminar.aspx

 

Mike Needham

Mike Needham

 

 

 

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Turrentine in the News: California Wine Grape Crop

May 8, 2014

Brian Clements, Vice President here at Turrentine Brokerage was quoted in an article published by Western Farm Press entitled ‘Cluster Counts favor good size California wine grape crop’’, written by Greg Northcutt. To read the article, please click the link below.

Western Farm Press

(Article originally published Wednesday, May 7, 2014)

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Brian Clements

 

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ProWein Trade Fair

April 23, 2014

ProWein Trade Fair Overview
By Marc Cuneo

ProWein in Dusseldorf, Germany continues to grow and become the preeminent gathering of wine producers and industry trade for the world market.  A couple of changes that were recognizable this year compared to last year were the greater attendance among all producers all various regions. Even more impressive, was the growth of the California wine producers that were in attendance.

We were able to have key meetings with our partner brokers from Europe, South America, Australian and producers that we have worked with in the past.  Here are some of the highlights from those meetings:

  • Chile – Larger bulk wine volumes going into the 2014 harvest put downward pressure on price for Cabernet Sauvignon and other red wines. Also, some sellers were motivated to move wines for space prior to harvest.  Due to frost the 2014 Harvest has been a challenge for yields for Sauvignon Blanc and Chardonnay being 20-25% down over past years.  Cabernet Sauvignon yields have also been down 15% to 20% vs typical yields.  The lower yields have stimulated some market activity and as a result prices have climbed from the pre-harvest pricing set a few months ago.
  • Argentina – Currently going through a challenging harvest with both rain and hail affecting the crops.  There are some concerns about reaching ideal ripening.  Producers have larger volumes of dry red and generic varietals which they are more motivated to sell.
  • Australia:  The 2014 crop was ok on volume and our broker partners felt the balance of demand to supply meant that the market would be steady for the 2014 wines.
  • Spain – Large volumes of 2013 dry red and dry white are available.  This is primarily due to the fact that the 2013 harvest was larger than the lighter than average 2011 and 2012 harvests.  Base quality Spanish bulk wine has been able to compete on price, however some of the wine has been quality challenged.
  • France and Italy – Both have fairly balanced inventories of bulk and are focusing on growth in higher price-points and quality levels for bottle goods for export.
  • New trends – There was a lot of discussion on the growth in the low alcohol table wine category.  This includes wines that would be under 10% alcohol.  Another talking point was the value price point for wines that can claim to be organically grown.

In general, there was a feeling of confidence from most sellers throughout the world.  Producers feel they will be able to sell bulk and bottled products for sustainable prices going into the 2014 calendar year.  Questions and concerns were raised about the expected size of the 2014 California harvest as well as the opportunity for continued growth amongst U.S. wine consumers.

Overall, it was a great experience to attend the ProWein conference. If you have any further questions regarding our travels abroad, please give us a call.

Marc Cuneo

Marc Cuneo

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Turrentine in the News: Vintage 2014

Brian Clements, Vice President here at Turrentine Brokerage was quoted in an article published by Wines & Vines entitled ‘Where to Put California’s 2014 Vintage?’, written by Andrew Adams. To read the article, please click the link below.

http://www.winesandvines.com/template.cfm?section=news&content=131488

(Article originally published Tuesday, April 22, 2014)

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Brian Clements, Vice President

 

 

 

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ProWein: International Trade Fair

March 12, 2014

Marc Cuneo and Steve Fredricks will be attending the 2014 Prowein show in Dusseldorf, Germany from March 23rd-25th.  While there, Turrentine will be meeting with their strategic partners, including CIVS, Austwine, and San Nicolas Wine Services along with clients from all over the world for bulk wine and private label branded opportunities.   Contact us now for any opportunities you would like us to research or to set up some meetings if you are there.

prowein2014

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Turrentine in the News: Grape Market Insights

February 26, 2014

Brian Clements, Vice President here at Turrentine Brokerage has posted his latest article, titled “Drought, frost, competition and other discontents” for the North Bay Business Journal. To read the entire article, please click on the link below.nbbj

(Article originally published Monday, February 17, 2014)

http://www.northbaybusinessjournal.com/87253/grape-market-insights-drought-frost-competition-and-other-discontents/

Brian 3.small

Brian Clements, Turrentine Brokerage

 

 

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Turrentine’s Top Conclusions of the 2013 Crush Report

February 19, 2014

Who wins and who loses, according to the 2013 Crush Report? The consumer is the big winner, with two abundant harvests in a row, both of excellent quality. Imports will be the biggest losers, especially bulk imports of Moscato and Cabernet Sauvignon, as California now has plenty of quality product to defend and advance its market share. On average, both brand owners and growers have been well-served by the 2013 harvest. Brand owners may need to increase marketing budgets but should be able to achieve strong sales growth, especially in the hot $10.00 to $20.00 per bottle range. Those brand owners who have not been able to control their costs, however, could feel some margin pressure. Growers, for the most part, enjoyed abundant yields at profitable prices. Perhaps most important of all, this second large crop provides something of a hedge against the possible effects of the drought on the 2014 harvest.

In spite of the driest year ever recorded in California, the 2013 harvest weighed in at 4.23 million tons— 5% over last year and 19% over the five year average—topping 2012 as the largest winegrape harvest in California. Most of the increase came from the Southern Interior, up 142,000 tons from 2012, led by Muscat varieties with a 74,000 ton increase.  Cabernet Sauvignon from the interior also has started to increase baseline production due to recent plantings, up 24,000 tons between Districts 11 and 12. These two varieties accounted for most of the increase in tons crushed in the interior.  The coastal regions also had excellent yields per acre on a fairly stable productive base.

What is most important for individual companies, however, is not the total numbers but the numbers within the numbers.  It is the supply of – and the demand for – the varieties and regions that you use in your brands or which you grow, and those varieties and regions, both domestically and globally, that are most directly competitive with them.

Is 4 the New Floor?  And How to Hedge Your Bets Against Unknowns

Over the last few years, there have been roughly 100,000 acres planted under long-term contracts across the state, mostly in the San Joaquin Valley.  Many of these acres are designed to achieve substantially higher yields than most existing plantings.  If Mother Nature cooperates with at least average yields, the addition of these new acres should keep statewide production at or above four million tons.

The wine business, even more than most businesses, is always full of unknowns. There are agricultural unknowns, global supply unknowns, political unknowns, supply chain unknowns and consumer unknowns. Right now, with the economy full of promise and angst, the consumer is also full of promise and angst. And, depending on what happens the next several months, the drought could have a minor or a major impact on the 2014 harvest and even the 2015 harvest. Some wine business folks have strong and widely differing opinions about the probable effects of the drought and the direction of consumer demand. Some of them will even be willing to bet the success of their farms or their brands on the accuracy of their hunches. But most players who have survived and prospered through the many twists and turns of the wine business know not to overestimate the human ability to predict the future in the midst of many unknowns. This is a good time to hedge your bets. Figure out the most likely scenarios for your situation (your broker at Turrentine can help) but also plan for surprises. Grape prices and bulk wine prices may go up if consumer demand remains strong and the spring is dry. Grape prices and bulk wine prices may go down if consumers hesitate or the spring is wet. Spread your buying and selling out over time and lock in deals that work with good strategic partners instead of holding out for the best possible price. Stay in constant contact with grape and bulk wine market developments. And remember the wise, old saying: “no one ever went broke making money.”

For a customized market analysis, please call your Broker!

CRUSH REPORT PRESS!

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Turrentine’s Preliminary Grape Crush Report Findings

February 6, 2014

Please keep an eye open for Turrentine’s upcoming reports and insight analysis of the Preliminary Grape Crush Report for 2013 immediately following the release on February 10th.  We will analyze key topics facing the industry, any surprises, and what is likely to affect the market moving into 2014. The California Department of Food and Agriculture’s Preliminary Grape Crush Report for 2013, is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2013 harvest. Don’t forget to contact your Turrentine broker if you have any questions regarding the 2013 crop.

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