News

Buyers' Choice: High Prices or No Supply

April 10, 2012 - 10:09

The competition for bulk wine from all regions and for all varieties in California remains stiff. California is still looking at all-time low volumes on the bulk market. Producers are
concerned about the longevity of the current bulk market and sustainability of the current low shelf prices. The main concern in the California market is supply. The supply
situation is a large unknown and until frost season and harvest pass, buyers will have to continue to pay high prices or go without supply. This bulk market phenomenon has spurred on both traditional and non-traditional buyers to purchase fruit earlier in the season and seek to secure multiyear deals. Grape buyers have also been forced to make concessions regarding farming practices and tonnage limits. The majority of activity remains around the red varietals for both grapes and wine.

Posted in: USA