Hard times for grape growers
As you are reading this, Tom is touring Napa and Sonoma counties in his perpetual search for good wines. Pat just returned from Burgundy. We hope to have some reports of the 2009 harvest, but the odds are that they will be better for consumers than grape growers.
By this time of the year, most growers have signed contracts for their grapes. Not so this year. A glut of wine still on the market and lagging sales for expensive wines have driven down the price of grapes. A lot of grapes have gone unclaimed.
Look at the classified section of the Sonoma County Wine Grape Commission and you’ll see tons of grapes for sale, including zinfandel from 100-year-old vines and Russian River pinot noir that was so scarce a year ago. With harvest under way, there is little hope these grapes will be purchased. Instead, they will be sold off cheap for bulk wine.
It is a good development for consumers, but a disappointing one for grape farmers. Bulk wine is likely to get better and prices of older vintages will drop as retailers and distributors make room for newer vintages.
Many of the top producers grow their own grapes and thus have more control over their crops. However, other producers prefer to let someone else take on the responsibility, thus leaving them to just make the wine. They sign long-term contracts with growers who will listen to their instructions on such issues as yield and canopy management. Other growers— usually those with small productions— prefer to play the open market in hopes of getting better prices. This year they may be left holding the bag.
The Wine Spectator reports that the average price of a ton of Napa Valley cabernet sauvignon has dropped from $4,689 to $2,000 in just a year. Prices of other grape varieties are also dropping by nearly half.
The change is reflective of the economy and the consumers’ growing interest for value wines. Retailers tell us that they are selling just as many bottles of wine—but at a lower price level. Expensive wines selling for more than $50 a bottle just aren’t moving, even among wealthy collectors. As a result, California producers aren’t making as much expensive wine. Growers, then, with top-quality grapes are finding that their produce isn’t in demand as much as it used to be.
California grape growers are accustomed to putting up with the unpredictability of the weather, which can make or break their year. But even in decent years, which 2009 is shaping up to be, there is no accounting for the frugal consumer.
We’ll have more to report on the harvest in France and California in upcoming columns. Meanwhile, expect to see some falling wine prices in the next year.
Wine picks
• ChateauSt. JeanMerlot Sonoma County 2006 ($27). Forget the movie “Sideways,” merlot can make a great bottle of wine and this is one of them. Full bodied and expressive, this wine is a wonderful cherry and plum melange in a delightful oak frame that would accompany any red meat dishes. A real crowd pleaser!
• Rodney Strong Alexander Valley Symmetry 2006 ($60). If you are looking for a drinkable yet full-bodied meritage, here it is. Copious aromas of plums and blackberries hands off to a palate of cassis, blackberry and mocha flavors. Soft tannins and rich in texture.
• Girard Petite Sirah 2007 ($29). Dark, inky color with forward blackberry flavors and a hint of vanilla and spice.
• Clos Pegase Mitsuko’s Vineyard Sauvignon Blanc 2008 ($21). Nice, bright sauvignon blanc with tropical fruit flavors and a touch of oak.
• Blackstone Winemaker Select Pinot Grigio 2008 ($12). With five grape varieties in this motley blend there is a broad spectrum of summer flavors: pears, apricots, lemon and more. Good acidity keeps it fresh.
• Leeuwin Estate Siblings Sauvignon Blanc/Semillion 2006 ($20).We loved this complex blend from the Margaret River region of Western Australia. Bright fruit flavors characteristic of the varietals: freshly mowed grass, apples, limes and crisp finish.