(Article originally posted: May 20, 2013)]]>
Wineries are required by law to report the tonnages they crush and these numbers are most likely accurate. The acreage numbers, however, are voluntary and many wineries and growers do not feel the need to disclose their numbers. We would not be surprised if mature Pinot Noir vineyards in District 13 averaged ten tons per acre in 2012. That would translate not into 24 acres but 1,270 acres at full production, although there are probably more acres than that but much of the acreage is not yet at full production. The problem is not limited to District 13. Statewide, the just-released acreage report claims that only 5,474 acres were planted in 2012. Surveys of nursery sales in 2012 estimate enough vines sold to plant 4 to 5 times the number of acres in the state report. The acreage report is corrected over the years; in 2005, the report stated 7,733 acres were planted that year and by 2012 the number had risen to 12,251 acres planted in 2005. These misleading numbers published within in the voluntary state report can create major misunderstandings – and lead to bad business decisions. Turrentine Brokerage uses proprietary market information from real world transactions and our research to provide district by district estimates of acres planted and forward looking projections of tons crushed for key varietals to provide information to our clients for better business decisions. District 11, 12 and 13 were the first regions to plant following many years of excess and the recession. Some of these new acres should begin bearing Cabernet Sauvignon grapes later this year, signifying the first wave of new grapes that will continue to make its way to the market over the next several years. Despite new acres coming on, inventory still remains tight and prices are still fairly strong. Many other new projections will be released in the next few weeks in the updated full issue of The Turrentine Outlook©, which will help us continue to work together for your sustained success.
Contact us or click here to subscribe for your issue today.]]>
In addition to events, we’ve been busy watching bud break happen all around us. Santa Maria tends to be one of the first areas in the Central Coast to be out, and this year was no exception.
The weather has been mostly warm up until last week when we experienced a bit of a cooling trend. Last Tuesday, I went on a vineyard tour with a winery representative starting in Santa Maria; from there we worked our way north to Paso Robles.
9 am in Santa Maria, the majority of the bud break has already been completed.
Later that morning in Paso Robles, a few vines had bud break, but mostly bud swell.
It turned out to be a beautiful spring day.
Market activity is beginning to pick up as well. “Serious Tire Kicking”, or as we refer to it interest without deals being made, has been the main action seen in San Luis Obispo and Santa Barbara Counties. However, we are now starting to see offers being put on the table for various varieties. It looks like it will be a busy spring in 2013 and I can’t wait to see how this growing season unfolds.
Until next time—- Audra
Save the date for Sonoma County Winegrape’s Smart Marketer Seminar to be held at the Wine Country Hilton, Santa Rosa. The topic for March is slated to be “Media and PR Training for Growers”. This includes information on Community and Neighbor Relations according to the CSWA Code of Sustainable Winegrowing.
The purpose of this seminar is to begin preparing growers to be industry spokespeople while out in the community. Liz Thach of Sonoma State University and Karissa Kruse of the Sonoma County Winegrape Commission are the topic presenters.
The meeting begins with Brian Clements of Turrentine Brokerage and an update on the bulk and grape market and prospects for 2013.
The owners of growing brands face a dilemma. Their cost of goods sold
jumped after the light 2011 harvest. Grape and bulk wine prices have
now moderated somewhat due to the large 2012 harvest but costs are
still up. Brand owners would really like to raise prices to preserve
margins but they are afraid….
For more information about this event, please click the following link:
Audra is on a panel including Doug Wilson with Silverado Premium Properties, Katie Dirkes with Kendall Jackson Family Wines, and Mike Testa with E & J Gallo. They will be discussing the Central Coast Grape market.
For more information, please click here: http://register.winesymposium.com/central-coast-program.aspx]]>
(Article originally posted: March 11, 2013)
The following is a summary of key insights from the 2012 California Grape Crush Report, sent last week to subscribers of the Turrentine Outlook:
Any way you look at it, 14,000,000 gallons is a lot of wine. That big number is the quantity of wine Turrentine Brokerage currently has listed for sale in bulk; a dramatic increase of 2012 vintage wines since the last Market Update newsletter. But what does 14,000,000 gallons mean for the short-term and long-term dynamics of the wine business? First, we need some perspective.