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.
- Why Us?
March 12, 2014
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.
(Article originally published Monday, February 17, 2014)
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!
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.
January 24, 2014
Ever wonder what the grape and wine market situation is like in other countries? Ever wonder how our competitors view us as a major producer of wines for the world or even as a major market for their products? In the United States we have an abundance of good, reliable domestic market information from analysts, brokers, industry associations and others, but what about information on our counterparts in other wine-producing regions of the world?
Steve Fredricks will be moderating a panel bringing together industry experts from Australia/New Zealand, South America, and Europe to provide their “State of the Industry” addresses. Included in the panel are Stephen Strachan of Gaetjens Langley of Australia and Stephen Rannekleiv of Rabobank. Learn more about their domestic supply and demand situations as well as their perspective of where they fit into the world scene, including their interest in the United States as a major market for their wines.
Our aim is to make this a dynamic and interactive session. If you have any questions you would like answered please e-mail them to Daniel@turrentinebrokerage.com. It will help us to prepare an exciting session. See you Wednesday January 29, 2014
at 1 pm!
January 21, 2014
Vineyard & Winery Management magazine is conducting a short survey to find out who your favorite wine industry suppliers are. Help Turrentine win for best Bulk Wine & Grape Broker.
Please click the link below to vote!
January 13, 2014
Turrentine hopes to see you at the Sonoma County Winegrowers’ 23rd Annual Dollars & $ense Seminar and Tradeshow on Wednesday, January 15, 2014. Brian Clements and Marc Cuneo will be presenting “2013: A Wine Odd-yssey.” Stanley Kubrick’s epic film, 2001: A Space Odyssey, has nothing on the North Coast wine business. While we may not have had any black monoliths to spur evolution, we have survived a difficult economy and journeyed through two years of crops below expectation with low bulk wine inventories followed by two years of crops above expectation with increasing bulk wine inventories. They will bring you up to date on what you need to know in this changing market. Please stop by our booth at the Tradeshow!
December 9, 2013
October 18, 2013
Brian Clements, Vice President here at Turrentine Brokerage has posted his latest article, titled “Winegrape harvest set to ‘go long’ in 2013″ for the North Bay Business Journal. To read the entire article, please click on the link below.
October 11, 2013
- Pinot Noir in Monterey is wrapping up and growers are pleased with the yields.
- Monterey County Chardonnay yields are looking average, so far.
- Cabernet harvest continues, yields are dependent on location. In general, picking out at expectation.
- Over the half way mark: Picking Merlot, Cabernet Sauvignon and Generic Reds.
- Yields are strong on Merlot. Some Cabernet blocks are picking above expectations.
- Cabernet Sauvignon has seen sporadic yields from shatter that occurred during bloom. Very hit or miss on the yields so far.
- Pinot Noir and Chardonnay harvest is wrapping up in Sonoma County, yields have been above average.
- Harvest looks like we are going to end 1 to 3 weeks ahead of where we have finished in the past few years.
- Mendocino Chardonnay is about 75% picked out and is seeing above average yields.