Wine grape demand strong even after big 2012 crop (by westernfarmpress.com)

Posted: June 5, 2013 by wynmaker in California, Cellars, Farms, Vintage, Wine, Wineries, World wine news
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With the relatively large 2012 crop came the expectation that the 2013 grape market would be less active than last year. That has proven to be somewhat true, but only in the realm of “hyper” activity that leads to rapidly increasing prices.

Grapes are being traded, at least to the extent they are even available, since most of them are tied up under multi-year contracts. However, there is no “reckless competition” for grapes experienced last year. Pricing seems to be at or slightly above last year’s levels.

Depending on the variety, the coastal market is arguably more robust than last year at this point. With much less spot market fruit available, buyer interest is high. Reds in particular have brought great interest in 2013; Cabernet Sauvignon specifically.

Coastal areas outside of the most premium growing regions seem to be bringing the most interest for all varieties. This is due to buyers wanting to purchase great quality coastal fruit that allows them to average down the grape cost of their higher end programs. With that being said, there is much less hyper-activity around Napa Valley Cabernet and Sonoma County Pinot Noir. There is still strong demand, but buyers seem to be more interested in averaging down the cost of their high-end programs rather than fervently competing for additional high-end fruit at historically high prices.

 

Read on …

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