Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
 

Faces & Forums

 

Vineyard Economics Symposium Forecasts

July 2007
 
by Jane Firstenfeld
 
 
Alternative text
Attorney Brandon Blevans, Dickenson, Peatman & Fogarty, addressed immigration reform and stepped up requirements for worker status. "Currently, we play a little game," he said. New regulations may be implemented at any time, he said, wishing his audience, "Good Luck."
 
Alternative text
Robert Fanucci, grapegrower and partner at Gagen, McCoy, moderated "A Conversation with California Grape Growers & Buyers," that included grape buyers Bill Wilden, Constellation Wines U.S. and Mike Insley, Beam Wine Estates; Nat DiBuduo, Allied Grape Growers, Jeff Frey, Frey Farming; and Tom Murphy, Murphy Companies.
Alternative text
Attorney Wyman Smith, Gaw Van Male, spoke on "Grape Contract Strategies," outlining considerations for both sides of the bargaining table. In deciding among pricing mechanisms, he stressed that growers "must have a mechanism to allow pricing to move with the market."
 
Alternative text
Mike Insley, VP vineyard operations and grower relations for Beam Wine Estates, commented that he was "staggered to see how much imported wine was out there" when he arrived in the United States from New Zealand.
Alternative text
Steve Fredricks of Turrentine Brokerage said, "The trend of excess is hard for people to get away from," suggesting that the industry has been "making battle plans for the future based on looking in the rearview mirror."
Alternative text
Accountant Mike Ricioli, Moss Adams, LLP, explained the differences between "Generally Accepted Accounting Procedures and Tax Reporting," and when each is appropriate, with his colleague Sandy O'Shea.
Alternative text
Jeff Frey, owner of Frey Farming, sounded the call for socially resposible, sustainable practices.

If we don't do something…we will be back here next year to talk about a shortage," David Freed warned growers and financial folk at the 2007 Vineyard Economics Seminar in Napa on May 15. Freed, chairman of UCC Vineyards Group, reviewed results of the 2007 Vineyard Economics Survey conducted by winebusiness.com. Grapegrowers, wineries and allied parties around the United States responded to the survey, addressing wine sales trends, factors that drive and constrain them, consumer attitudes toward wine, changing wine preferences, grape price trends and supplies.

Most respondents felt Pinot Noir, Pinot Grigio, red Zinfandel and Sauvignon Blanc would be in short supply over the next three years; Chardonnay, Cabernet Sauvignon, Syrah, White Zinfandel and Merlot were predicted to produce oversupplies. Only 15% of California respondents planned to acquire new vineyards. Freed suggested that land prices in California growing areas are to blame for that figure.

Although much of the state's record 2005 crop and sizeable 2006 crop is still available on the bulk market, and clearing it out will be a challenge, new buyers are in the market this year, according to Brian Clements from Turrentine Brokerage, and reluctance to plant new acreage almost guarantees a shortfall in the near future. With almost no new plantings of Cabernet Sauvignon, for instance, all but 6% of Cabernet vineyards are now bearing fruit. "Six percent is below replacement level," Clements said, predicting shortages.

In "Grape Prices to Winery Profitability," Rob McMillan, Silicon Valley Bank, also addressed financial barriers to planting new California vineyards, noting that total nonbearing acres in California's premium wine regions are at 3.5%, a historic low that defies the normal nine-year planting cycle and portends shortages.

Deborah Steinthal, founding partner of Scion Advisors, outlined steps required for successful transition from one generation to the next, in "Grape Growers Who Live Poor--Die Rich," including a family continuity plan, a strategic business plan and a succession roadmap. Overlooking these has meant the demise of many a family business, she said.

The 2007 Vineyard Economic Seminar was organized by the Wine Industry Symposium Group. For a more detailed report, visit winesandvines.com Headlines, May 16, 2007.
 
SHARE »
Close
 
Currently no comments posted for this article.
 
 
SEE OTHER EDITIONS OF THIS COLUMN ï¿½ CURRENT COLUMN ARTICLES »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
August 2014 $558 million
5%
$7,613 million
6%
August 2013 $531 million $7,167 million
     
Direct-to-Consumer Shipments » Month   12 Months  
August 2014 $78 million
17%
$1,686 million
10%
August 2013 $67 million $1,530 million
     
Winery Job Index » Month   12 Months  
August 2014 218
12%
224
19%
August 2013 194 189
     
 
MORE » Released on 09.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • September 22-23
     
    Wine Industry Financial Symposium
     
  • September 23-24
     
    Experimental Design and Chemometrics for Chemists
     
  • September 27
     
    Red Mountain AVA Block Party
     
  • October 8
     
    Exporting Wine to China
     
  • MORE »
 

READER COMMENTS
 
Article: New York OKs Out-of-State Grapes »
 
If the resultant wine, using out of state juice,bears the "American" on the label, I...
Reader: Guest
 
Article: Financial Impact of Napa Quake Rising »
 
I still think the numbers are low and don't include legal fees. Section 165 was...
Reader: Guest
 
Article: Tasting the Effects of Wine Closures »
 
In addition to oxidation of somee of the SO2, post-bottling chemical changes are a continuation...
Reader: Guest
 
Article: Tasting the Effects of Wine Closures »
 
I agree with the 14:46 post. I have switched to screwcap on most of my...
Reader: Chris Baker
 
Article: Tasting the Effects of Wine Closures »
 
What I have found in the past between the type of closures is this. A)...
Reader: Guest
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2014 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Sales And Merchandisin...
 Los Angeles West, CA
Sales and Marketing
 Bar & Barista
 Los Angeles, CA
General Administration and
 Communications Special...
 Modesto, CA
Winemaking and Production
 Delivery Driver
 American Canyon, CA
Winemaking and Production
 Restaurant Manager
 Geyserville, CA
General Administration and
 Wine Buyer For Napa-Ba...
 Yountville, CA
Sales and Marketing
 Bottling Line Maintena...
 Guerneville, CA
Winemaking and Production
 National Sales Manager
 Willamette Valley, OR
Sales and Marketing
 Assistant Manager
 Newton, MA
General Administration and
 Retail Wine Associate
 Lexington, MA
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.