July 10, 2012 - 09:51
Multi-year grape contracts with strong pricing continue to be signed throughout the state, as wineries continue to secure supply. In addition, bulk wine sales are
also being signed, though pricing may have peaked.
Crop estimates throughout the state project the potential for an average to above average 2012 harvest. Favorable weather and good berry sizing in the coming
weeks will confirm the final crop size.
California sales slowed over the first quarter of 2012. The slow sales for the first four months of 2012 have been caused by the decrease of domestic bulk wine supply available for both the volume and value market segments.
California exports have shown mixed results. Packaged wine exports, led by Gallo (+11%) with control over 63% of all case good exports, continue to grow. Alternatively, bulk exports show year-to-date losses (down 4%), most likely due to tight supply of Zinfandel, Rosé, Colombard and generic reds.
Case good import volumes have declined 6% year-to-date, while bulk volumes have increased by 147%, representing the equivalent of an additional 9.5 million cases. The growth in imports is coming from Chile, Argentina and Australia.
Posted in: USA