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 » Month   12 Months  
August 2015 $608 million
$8,178 million
August 2014 $568 million $7,729 million
Direct-to-Consumer Shipments » Month   12 Months  
August 2015 $80 million
$1,908 million
August 2014 $78 million $1,686 million
Winery Job Index » Month   12 Months  
August 2015 261
August 2014 218 224
MORE » Released on 09.15.2015
Direct To Consumer
Wine Shipping Report
Download full report »


Practical Winery & Vineyard Library
Search the PWV archive »

  • October 3-11
    Lake Chelan Crush Festival
  • October 9-12
    Santa Barbara Celebration of Harvest
  • October 13-16
  • November 3-6
  • MORE »

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
Article: Crowd Funds 10,000 Cultivars »
Thanks for interviewing the academic breeders. They would love to be able to raise $167K...
Reader: New York Viticulture
Article: Nielsen Unpacks Package Design »
Okay, I'll state the obvious (to anyone with CPG experience) - the Wine Biz is...
Reader: Joel Miller
Article: Nielsen Unpacks Package Design »
Very interesting reading. Certainly agree with the more indirect approach of evaluating the extent to...
Reader: Roger Brooks
Article: Experimental Solution to Pierce's Disease »
Congratulations to the team! It is amazing what can be done with biological controls. Keep...
Reader: Bruce Coulthard

2015 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
 Fork Lift / Computer D...
 Napa, CA
Cellar, Lab and Production
 Tr & Merchandising
 Paso Robles, CA
DTC, Tasting Room and Retai
 Sales And Marketing Co...
 Los Angeles, CA
General Administration and
 Tasting Room Manager
 Baroda, MI
DTC, Tasting Room and Retai
 Portfolio Manager - Ca...
 Tampa Bay, FL
Sales and Marketing
 Lab / Quality Technica...
 Greenfield, CA
Cellar, Lab and Production
 Tasting Room Associate
 Woodinville, WA
DTC, Tasting Room and Retai
 Event Marketing Coordi...
 Modesto, CA
Sales and Marketing
 Dayton, OR
 Bottling Line Maintena...
 Greenfield, CA
Cellar, Lab and Production
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.