Wines & Vines Home
Welcome Guest

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 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 Headlines, May 16, 2007.
Currently no comments posted for this article.

Wines & Vines Home
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
Wine Industry Metrics
Off-Premise Sales
IRI Channels »
Month   12 Months  
October 2015 $604 million
$8,267 million
October 2014 $572 million $7,790 million
Direct-to-Consumer Shipments » Month   12 Months  
October 2015 $288 million
$1,919 million
October 2014 $284 million $1,751 million
Winery Job Index » Month   12 Months  
October 2015 179
October 2014 139 226
MORE » Released on 11.13.2015


Direct To Consumer
Wine Shipping Report
Download full report »


Practical Winery & Vineyard Library
Search the PWV archive »

  • December 2
    2015 UC Davis Grape Day
  • December 3
    North Coast Wine Industry Expo
  • December 5-6
    Holidays in the Vineyards
  • January 13-14
    DtC Wine Symposium
  • MORE »

Article: Kronenberg Leaves Legacy of DtC Opportunities »
This is amusing. While I do not quarrel with Paul's many contributions over the years,...
Reader: Guest
Article: Kronenberg Leaves Legacy of DtC Opportunities »
Wow! This this a re-writing of history! As a founder and namer of Family Winemakers...
Reader: Guest
Article: Can Wine Grapes Be Grown Without Chemicals? »
It sounds like your problem is with semantics, not with the application of products to...
Reader: Carol Collier
Article: Cuvaison Upgrades to Second Generation of Pellenc Sorter »
I'd like to know what they are doing with the sorted stuff, especially the first...
Reader: Matthew Delicata
Article: Growers Suffer Low Yields in Paso Robles »
This year's Paso Robles/San Miguel "mature" Cabernet Sauvignon yields were down to 30% of normal while...
Reader: Guest

2016 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
Wines & Vines Magazine
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
The Wines & Vines Online Marketing System
The Industry Standard winery marketing application
Latest Job Listings
 Bottling Line Technici...
 Clarksburg, CA
Cellar, Lab and Production
 Regional Sales Directo...
 Northeast Us, NA
Sales and Marketing
 Direct To Consumer Man...
 Stonewall, TX
DTC, Tasting Room and Retai
 Senior Hospitality Man...
 Sonoma, CA
DTC, Tasting Room and Retai
 Compliance Specialist
 Santa Rosa, CA
General Administration and
 Wine Club Manager
 St. Helena, CA
DTC, Tasting Room and Retai
 Hospitality Lead
 Yountville, CA
DTC, Tasting Room and Retai
 Director Of Sales
 Southern California, CA
Sales and Marketing
 Vice President-Sales A...
 Napa, CA
Sales and Marketing
 Key Account Manager-Of...
 Midwest- Multiple Positions In Selected Cities, FL
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 © 2001-2015 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.