The understanding of short and long-term supply dynamics are essential to success in the wine industry. It is not a mystery that we stress both. At the Unified Wine Symposium, you will undoubtedly hear several trends, but it is worth talking to Turrentine Brokerage to see how your individual supply situation can be maximized in the long-term. 

For the first time since 2006, more than 14 million gallons of wine for sale in bulk has been carried over from prior vintages; and for the first time since 2009, large quantities of multiple vintages of most varieties are for sale. However, comparing 2014 to 2009, Turrentine Brokerage has had a 60% increase in the total number of sales of wines in bulk and the transactions have been more focused on smaller quantities of higher quality wines. While there have been more middle and high end buyers, there have been few opportunistic buyers for the large volumes of Interior varietals available at low prices. 

 

Cabernet Sauvignon

Napa Valley/Sonoma County

• Bulk Supply- Low, number of gallons actively for sale is down
• Bulk Demand- High, recent sales for 2013 Napa between $28 to $32, sub-appellations between $38 and $42
• Grape Demand- Remains strong with buyers a little less aggressive than last year
• Planting- Few open acres being planted and some redevelopment.

Other North Coast

• Bulk Supply- Low, starting to see some 2014's listed
• Bulk Demand- Steady with recent sales for 2013 around $17 to $19
• Grape Demand- Steady with buyers out early for resigns
• Planting- Increased supply from newly bearing acres will produce more in 2015

Central Coast

• Bulk Supply- 2013 decreasing; 2014 wines beginning to be listed
• Bulk Demand- Slow demand with increasing quality standards; recent sales $12 to $14 for good quality lots
• Grape Demand- Slow
• Planting- About 3,500 new acres that will add significant tonnages annually

California Appellation

• Bulk Supply- Increasing. Plenty of both 2013 and 2014 on the market
• Bulk Demand- Increasing quality standards; recent sales in the $5 to $8 range
• Grape Demand- Slow
• Planting- New acres went in the last few years and roughly 6,000 non-bearing acres will add to supply over the next couple of years

 

Chardonnay

Sonoma County

• Bulk Supply- V14 wines beginning to be listed
• Bulk Demand- Steady demand, but less than supply, quality standards increasing; recent sales in the $13 to $15 range
• Grape Demand- Steady but slower than last year at this time

Central Coast

• Bulk Supply- Good supply and increasing volumes actively for sale
• Bulk Demand- Less than supply, quality standards are up, recent sales in the $8 to $9 range
• Grape Demand- Slow

 

Pinot Noir

Sonoma County

• Bulk Supply- Steady with 2013 and 2014 wines available.
• Bulk Demand- Steady with increasing quality standards and price sensitive for mid-range programs; recent sales in the $17 to $19 range
• Grape Demand- Steady, some buyers out early on resigns but focused on the value vineyards for mid-range programs
• Planting- Some increased tons from newly bearing acres in 2015

Central Coast

• Bulk Supply- Increasing due to another good crop in 2014; wines from Monterey County and Santa Barbara available
• Bulk Demand- Steady, but focused on quality wines for mid-range programs or from buyers looking to upgrade a California appellation wine, recent sales or high quality lots in the $14 to $16 range
• Grape Demand- Slow

California Appellation

• Bulk Supply- Increasing from a good 2014 crop, but choices are still limited; competing with some of the supply offered for sale from the Central Coast
• Bulk Demand- Steady with increasing quality standards; recent sales in the $6.50 to $7.50 range
• Grape Demand- Steady with very few grapes available
• Planting- Some increase in tons but planted under contract and not available

 

Merlot

Napa Valley, Sonoma County, and Other North Coast

• Bulk Supply- Steady
• Bulk Demand- Steady; still riding coat tails of Cabernet Sauvignon; recent sales in the $8 to $10 range for North Coast, $15 to $18 for Napa and Sonoma
• Grape Demand- Slow

Central Coast and California Appellation

• Bulk Supply- New gallons from a good crop in 2014
• Bulk Demand- Very low, supply greatly exceeds demand
• Grape Demand- Very low

 

Within the context of the overall market, every grower and brand owner faces his or her unique supply and demand challenges. Contact our knowledgeable team of grape and bulk wine brokers today to avoid pitfalls and to make use of market conditions to achieve your goals.