California winegrape crush down

The total crop of winegrapes harvested in 2010 in California was 3.58 million tons, down 3 percent from 2009, making 2010 the third largest crop in history after 2009 and 2005, according to the state’s Preliminary California Grape Crush Report.

"Perhaps the most important news for the California wine industry is that interior region Cabernet Sauvignon production declined by almost 13,000 tons -- the equivalent of almost a million cases, while sales of this value priced Cabernet Sauvignon are growing at a fast rate,” says Steve Fredricks, president of Turrentine Brokerage of Novato. “Some of this shortfall is balanced by a larger crop of Cabernet Sauvignon on the Central Coast."

"The best news for the California wine business was the lighter crop of Chardonnay in the Central Valley, which was down 62,000 tons, or 10.5 million gallons. That decrease should help Chardonnay inventories move towards balance as casegoods sales continue to increase -- especially at the value end of the market,” says Brian Clements, vice president of Turrentine Brokerage.

That feeling is echoed by the growers themselves.

“With 17 consecutive years of growth in wine consumption, this year’s crush report is good news for the overall health of the California wine industry,” says Kim Ledbetter Bronson, chairman of the California Association of Winegrape Growers in Sacramento.

“While we thought weather issues would take a bigger bite out of the crop, I see a continuing trend toward balance of supply and demand. This is positive for consumers, wineries and growers,” she says.

Red wine varieties accounted for the largest share of all grapes crushed, down 1 percent from 2009. The 2010 white wine variety crush was down 6 percent from 2009.

“When you consider reported problems with the Australian crop, I think the crush report’s numbers mean a better price environment for growers in 2011, while still providing sufficient grapes at all price points to keep wineries happy,” says Nat DiBuduo, president and CEO of Allied Grape Growers and CAWG board member. “However, over the long term, there is a risk that winegrape demand may outpace supply.”

The Preliminary Grape Crush Report includes all grape tonnage crushed during the 2010 season. It also includes purchased tonnage and pricing information for grapes with final prices prior to Jan. 10, 2011. The Final Grape Crush Report, which will be released on March 10, will include additional purchased tonnage, prices and corrections.