California wineries crushed a record 4.3 million tons of grapes
last year, which some experts contend could usher in lower retail
wine prices, however local vintners aren’t forecasting much of a
change.
Hollister – California wineries crushed a record 4.3 million tons of grapes last year, which some experts contend could usher in lower retail wine prices, however local vintners aren’t forecasting much of a change.
With supply outpacing demand, Steve Fredricks, vice president of California’s largest grape contractor, Turrentine Brokerage in Novato, Calif., is predicting lower prices in the bulk market and more competition throughout the industry.
“There will be pressure on wineries, even some of the smaller ones, to stay competitive,” he said. “The demand for wine is growing, but the supply this year was up almost 35 percent over the year before.”
Exactly how this could change the price of a bottle at the local grocery isn’t yet known, Fredricks said.
Like their counterparts throughout the state, San Benito County grape growers saw record yields last harvest season.
But even with larger than average inventories of wine to sell, locals predict prices will stay largely the same.
“I have such a small production that a few extra tons of grapes doesn’t make much of a difference,” said Al DeRose, a winemaker at DeRose Vineyards in south San Benito County. “The market prices don’t really affect me.”
Pietra Santa Winery, which is located just a few miles from DeRose, is a slightly larger operation, yet price drops are not eminent, said Linda Kiener, the winery’s office manager.
“At this point you go with trends in the market,” she said Wednesday. “Prices could drop if we have more product to sell, but the grapes we harvested last year still have 18 months in the barrel before going to the market, so it’s too early to tell.”
Robert Enz, owner of Enz Vineyards, is in a similar position.
“We’ve held our prices steady for the last three years,” he said. “Last year’s good harvest followed two more meager years, so it all evens out in the end.”
Enz said it is more common to see retail wine prices increase than decrease because the cost of growing grapes and producing wine rises almost every year.
Brett Rowland covers agriculture and public safety for the Free Lance. He can be reached at 831-637-5566 ext. 330 or
br******@fr***********.com
.
