Selected Recent Sales of Grapes & Wines in Bulk for May 14, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Zinfandel 2010 wine, Alexander Valley, 8,200 gallons at $17.00 per gallon

Petit Verdot 2011 wine, California, 6,500 gallons at $10.00 per gallon

Sauvignon Blanc 2011 wine, Paso Robles, 7,000 gallons at $8.25 per gallon

 Merlot 2011 wine, California, 15,500 gallons at $12.00 per gallon

Grapes

Chardonnay 2012 grapes, Russian River, 32 tons at $2,200.00 per ton

 Pinot Noir 2012 grapes, California, 120 tons at $600.00 per ton

Selected Recent Sales of Grapes & Wines in Bulk for May 7, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Petit Verdot 2011 wine, California, 6,000 gallons at $10.00 per gallon

Cabernet Sauvignon 2010 wine, Alexander Valley, 1,500 gallons at $24.50 per gallon

Sauvignon Blanc 2011 wine, California, 5,200 gallons at $7.00 per gallon

Zinfandel 2011 wine, Mendocino County, 4,200 gallons at $15.00 per gallon

Selected Recent Sales of Grapes & Wines in Bulk for May 1, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Zinfandel 2011 wine, Lodi, 6,400 gallons at $12.50 per gallon

Syrah 2010 wine, Mendocino County, 6,000 gallons at $12.00 per gallon

Merlot 2011 wine, Mendocino County, 6,400 gallons at $11.00 per gallon

Cabernet Sauvignon 2011 wine, Napa Valley, 4,500 gallons at $30.00 per gallon

Syrah 2010 wine, Sonoma Valley, 3,300 gallons at $14.00 per gallon

 Grapes

 Cabernet Sauvignon 2012 grapes, Napa Valley, 20 tons at $5,500.00 per ton

Selected Recent Sales of Grapes & Wines in Bulk for April 24, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com : 

Bulk Wine 

Pinot Noir 2011 wine, Russian River, 10,000 gallons at $28.00 per gallon ; 

Petite Sirah 2011 wine, Mendocino County, 1,600 gallons at $18.00 per gallon ; 

Chardonnay 2011 wine, Monterey County, 25,600 gallons at $13.00 per gallon ; 

Merlot 2010 wine, Paso Robles, 6,500 gallons at $10.50 per gallon ; 

Grapes

Sauvignon Blanc 2012 grapes, Lake County, 70 tons at $1,000.00 per ton ; 

Merlot 2012 grapes, Napa Valley, 25 tons at $2,500.00 per ton ; 

Cabernet Sauvignon 2012 grapes, Napa Valley, 35 tons at $5,360.00 per ton ; 

Chardonnay 2012 grapes, Russian River, 120 tons at $1,950.00 per ton ; 

Cabernet Sauvignon 2012 grapes, Lodi, 100 tons at $950.00 per ton ; 

Selected Recent Sales of Grapes & Wines in Bulk for April 16, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Chardonnay 2011 wine, Sonoma Coast, 13,000 gallons at $18.00 per gallon

 Cabernet Franc 2011 wine, Lodi, 6,500 gallons at $6.00 per gallon

 Sauvignon Blanc, 2011 wine, Lake County, 12,500 gallons at $7.50 per gallon

 Cabernet Sauvignon 2011 wine, Napa Valley, 6,100 gallons at $42.00 per gallon

 Grapes

 Zinfandel 2012 grapes, Sierra Foothills, 30 tons at $1,800.00 per ton

 Grenache 2012 grapes, Lodi, 50 tons at $800.00 per ton

 Petite Sirah 2012 grapes, Napa Valley, 50 tons at $3,000.00 per ton [part of a package]

Selected Recent Sales of Grapes & Wines in Bulk for March 26, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Pinot Noir 2010 wine, Russian River, 1,200 gallons at $27.50 per gallon

Chardonnay 2011 wine, Russian River, 2,100 gallons at $20.00 per gallon

Petite Sirah 2011 wine, Lodi, 13,000 gallons at $13.75 per gallon

Merlot 2010 wine, Mendocino County, 12,400 gallons at $10.00 per gallon

Merlot 2010 wine, Alexander Valley, 3,000 gallons at $20.00 per gallon

Grapes

Viognier 2012 grapes, Sonoma Valley, 12 tons at $1,800.00 per ton

Cabernet Sauvignon 2012 grapes, Lodi, 260 tons at $850.00 per ton

Selected Recent Sales of Grapes & Wines in Bulk for March 1, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Pinot Noir 2011 wine, North Coast, 6,500 gallons at $18.00 per gallon

Cabernet Sauvignon 2009 wine, Sonoma County, 4,900 gallons at $12.00 per gallon

Sauvignon Blanc 2011 wine, Lake County, 6,200 gallons at $8.50 per gallon

Zinfandel 2010 wine, California, 3,200 gallons at $13.50 per gallon

Chardonnay 2010 wine, Sonoma County, 6,300 gallons at $12.00 per gallon

 Pinot Noir 2011 wine, Sonoma Carneros, 3,500 gallons at $25.00 per gallon

 Chardonnay 2011 wine, California, 12,800 gallons at $5.50 per gallon

Selected Recent Sales of Grapes & Wines in Bulk for January 20, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Cabernet Sauvignon 2010 wine, Alexander Valley, 6,300 gallons at $25.00 per gallon

 Pinot Noir 2010 wine, Lodi, 12,500 gallons at $9.50 per gallon

 Cabernet Sauvignon 2010 wine, Napa Valley, 7,700 gallons at $25.00 per gallon

 Merlot 2010 wine, Paso Robles, 6,500 gallons at $9.25 per gallon

Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk. 

 Bulk Wine

 Cabernet Sauvignon 2010 wine, Mendocino County, 6,400 gallons at $16.00 per gallon

 White Riesling 2010 wine, Arroyo Seco, 6,500 gallons at $6.50 per gallon

 Cabernet Sauvignon 2010 wine, Chalk Hill, 7,000 gallons at $25.00 per gallon

 Merlot 2011 wine, California, 13,000 gallons at $5.50 per gallon

 Cabernet Franc 2010 wine, Monterey County, 7,300 gallons at $12.00 per gallon

415-209-9463, www.turrentinebrokerage.com:

Selected Recent Sales of Grapes & Wines in Bulk for December 19, 2011.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Merlot 2010 wine, Paso Robles, 6,400 gallons at $10.50 per gallon

Sauvignon Blanc 2011 wine, Russian River, 4,400 gallons at $17.00 per gallon

Cabernet Sauvignon 2010 wine, Alexander Valley, 1,600 gallons at $20.00 per gallon

Chardonnay 2010 wine, Russian River, 1,500 gallons at $20.00 per gallon

Chardonnay 2011 wine, Lodi, 6,000 gallons at $6.50 per gallon

Selected Recent Sales of Grapes & Wines in Bulk for November 15, 2011.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

White Riesling 2010 wine, Lake County, 5,900 gallons at $6.00 per gallon

Cabernet Franc 2009 wine, Yountville, 2,100 gallons at $20.00 per gallon

Chardonnay 2010 wine, Edna Valley, 6,500 gallons at $10.00 per gallon

Chardonnay 2010 wine, Lodi, 13,000 gallons at $5.75 per gallon

Cabernet Sauvignon 2009 wine, Napa Valley, 4,300 gallons at $34.00 per gallon

Selected Recent Sales of Grapes & Wines in Bulk for October 10, 2011.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com

Bulk Wine

• Sauvignon Blanc 2010 wine, Mendocino County, 17,300 gallons at $6.00 per gallon
• Merlot 2010 wine, Mendocino County, 12,000 gallons at $8.00 per gallon
• Chardonnay 2010 wine, Lodi, 6,400 gallons at $6.50 per gallon
• Zinfandel 2010 wine, California, 15,000 gallons at $9.75 per gallon

Grapes

• Cabernet Sauvignon 2011 grapes, Napa Valley, 5 tons at $5,000 per ton
• Merlot 2011 grapes, Oak Knoll District, 20 tons at $2,500 per ton

Selected Recent Sales of Grapes & Wines in Bulk for October 3, 2011.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

• Pinot Noir 2010 wine, Anderson Valley, 2,400 gallons at $18.00 per gallon
• Pinot Noir 2010 wine, Lake County, 13,000 gallons at $14.00 per gallon
• Cabernet Sauvignon 2010 wine, Napa Valley, 1,200 gallons at $35.00 per gallon
• Pinot Noir 2010 wine, Monterey County, 19,500 gallons at $16.00 per gallon
• Zinfandel 2008 wine, California, 32,500 gallons at $4.00 per gallon

Grapes

• Zinfandel 2011 grapes, California, 50 tons at $750 per ton
• Merlot 2011 grapes, Sonoma Coast, 60 tons at $1,200 per ton

The following is a small selection from our recent sales of grapes & wines in bulk for September 19, 2011.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Click Here to contact us for more information.

Bulk Wine

• Cabernet Sauvignon 2010 wine, Paso Robles, 7,800 gallons at $7.50 per gallon
• Dry Red 2010 wine, Napa Valley, 2,300 gallons at $22.00 per gallon
• Petite Sirah 2010 wine, Paso Robles, 6,500 gallons at $8.50 per gallon

Grapes

• Chardonnay 2011 grapes, Sonoma Carneros, 20 tons at $1,850 per ton
• Merlot 2011 grapes, Arroyo Seco, 120 tons at $1,000 per ton
• White Riesling 2011 grapes, Arroyo Seco, 150 tons at $950 per ton

The following is a small selection from our recent sales of grapes & wines in bulk for August 24, 2011.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Click Here to contact us for more information.

Bulk Wine

• Grenache 2010 wine, Paso Robles, 9,400 gallons at $8.00 per gallon
• Chardonnay 2010 wine, Napa Carneros, 7,900 gallons at $12.00 per gallon
• Syrah 2010 wine, Sonoma Carneros, 9,250 gallons at $10.00 per gallon
• Merlot 2010 wine, Lodi, 7,300 gallons at $6.50 per gallon
• Cabernet Sauvignon 2010 wine, Napa Valley, 6,600 gallons at $26.50 per gallon
• Pinot Noir 2010 wine, Mendocino County, 4,800 gallons at $12.00 per gallon

Grapes

• Zinfandel 2011 grapes, Lodi, 35 tons at $900 per ton
• Cabernet Sauvignon 2011 grapes, Atlas Peak, 20 tons at $4,500 per ton

The ‘sleeping beauty’ varietal just might awaken for ’11 harvest. By Brian Clements

I stood in the rain and checked the calendar on my watch. It said June but it sure looked like January. I was standing in a merlot vineyard with the self-proclaimed “Best Damn Grower in Dry Creek.” (I probably should not mention that his name is Jim Ricci, so keep that to yourself.) This grower was convinced, as growers often are, that the merlot crop will be light this year. I tried to disagree, but it was hard to argue with him in the pouring rain.

There are two ways for a grape variety to become scarce. The obvious and best way is through growing demand. The sneaky way is through shrinking supply. Unfortunately, merlot has not had much growth in consumer demand in recent years. Pinot noir has stolen merlot’s niche as a high-class but lighter alternative to cabernet sauvignon.

The 2005 movie Sideways also made merlot go sideways. The movie promoted the glories of pinot noir but took a swipe at merlot.

This may have affected the trade more than consumers, but a less enthusiastic trade means fewer innovative marketing campaigns and less merlot on restaurant wine lists. So it doesn’t look like merlot’s bacon is going to be saved by rising consumer demand anytime soon.

But consider the rise and fall of North Coast merlot tonnage and acreage (see the table): Acreage is evaporating and tonnage shrinking.

To put the tonnage numbers into perspective, one ton of grapes produces about 65 cases of wine. This means the 2004 crop of Sonoma County merlot was equivalent to nearly 1.5 million cases of wine. If you compare that to the 2010 crop, there is a decrease of about 395,000 cases of Sonoma County merlot wine.

How little merlot is too little? It’s hard to say. Cabernet sauvignon sales are growing faster than supply, and that will encourage winemakers to look for good merlot as a blender for their hot cabernet sauvignon programs. Marketers may also get more enthusiastic about promoting merlot as they run low on other red wines.

So is merlot a sleeping beauty that will finally awake this year? Or will she see her shadow and crawl back into bed for another year? (Or is that the groundhog?)

The market right now is caught between uncertain demand and uncertain supply. Demand in general is picking up, but the sputtering economy has everyone nervous.

With a wet year and good growing conditions, the 2011 crop was projected to be at least average, but these late rains make the industry anxious.

Personally, I think the sleeping beauty merlot is finally going to wake up sometime before harvest this year. But then, what do I know? I’m so stupid I stand around in the pouring rain trying to argue with the best damn grower in Dry Creek.

Click here to read article in the North Bay Business Joural: Grape Market Insights

The following is a small selection from our recent sales as of 7/5/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Click Here to contact us for more information.

Bulk Wine

Cabernet Sauvignon 2010 wine, Sonoma Valley, 6,500 gallons at $16.00 per gallon

Grapes

Cabernet Sauvignon 2011 grapes, Sonoma Valley, 40 tons at $1,700 per ton

Chardonnay 2011 grapes, Contra Costa County, 250 tons at $525 per ton

The following is a small selection from our recent sales as of 6/29/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Click Here to contact us for more information.

Bulk Wine

Chardonnay 2010 wine, Sonoma County, 3,200 gallons at $6.50 per gallon

Sauvignon Blanc 2010 wine, Mendocino County, 7500 gallons at $5.00 per gallon

Petit Verdot 2010 wine, California, 6,500 gallons at $8.00 per gallon

Syrah 2010 wine, Monterey County, 12,800 gallons at $8.00 per gallon

Pinot Noir 2010 wine, Monterey County, 27,500 gallons at $15.50 per gallon

Grapes

Pinot Gris 2011 grapes, Russian River, 10 tons at $1,200 per ton

Presently, I am celebrating my twentieth anniversary of working for Turrentine Brokerage, selling wines and grapes to and from clients all over the world.  In the last millennium when I was hired, I had a degree combining fermentation science and agricultural economics from U.C. Davis, as well as three years experience in winemaking and marketing wines. I was an avid reader of this very Market Update newsletter published by Turrentine Brokerage and I immediately applied when I read that Turrentine Brokerage had an opening for a new grape and bulk wine broker.  The fast-paced nature of the bulk wine and grape markets thrilled me and I was ready to take on the challenge. New to the business, I was frantic to bring some order to the market and especially, to make sales as fast as I could. Bill Turrentine kept reminding me to remain calm and remember that the most important part of business was to build relationships of trust. He said that I should be thinking twenty or thirty years into the future when talking with clients. I didn't really believe him then, but as it turns out, he was right. Twenty years flew by and those lessons learned from Bill are still the backbone of how we do business today. The wine business is a long-term business. Many supply decisions have consequences that help or hurt for ten years or more. Many of our grower and winery clients have been navigating wine business cycles for three or four or even five generations.

I recall the first deal I closed twenty years ago. It was for one truckload of 1990 barrel fermented Sonoma Carneros Chardonnay. There were multiple buyers and the price was bid up to $12 per gallon.  I wondered how the bulk market could be so strong when the Chardonnay casegoods market I had been working in was moving into oversupply. It was my first lesson in the startling lack of relevant information available to those making critical supply decisions. Bill told me that was the way in which we could best help our clients. Our goal is to help clients make informed supply decisions. We do not lead them to make the decision we think best, nor try to look good by only telling them what they want to hear; instead, we provide as much honest market information as we can and then let the client decide what response would make the most sense for their company.

I am amazed by the changes that have occurred over the last twenty years, but also by some of the constants.  Fighting varietals became barrel fermented Chardonnay with a touch of residual sugar, then Merlot, the red wine health boom, Pinot Noir, Pinot Grigio, and now Moscato and sweet red wines.  Not to forget the Sangiovese, Viognier, and Syrah flashes.  The constants have been the Turrentine Wine Business Wheel, the cycles and the consumer's preference for a hint or two of sweetness.  I have been through three cycles predicted by the Wine Business Wheel and none have been the same.  As a company and industry, we evolve through the cycles.

Finally, I also realize how fortunate I have been to be able to work for and continue my education in the wine business from someone of such integrity, consistency, foresight and wisdom as Bill.  I have learned a lot from him and continue to learn from him every day.  I am grateful as well for the opportunity to work with many extraordinary growers, winemakers and brand owners, learning from their experiences and insights, and helping them to build successful businesses through the ups and downs of the wine business cycle. I have also had the privilege, especially now as President of Turrentine Brokerage, to continue to build a great team of grape and bulk wine brokers, along with a talented support staff. Many of them have been working for Turrentine almost as long as I have.  It is very much a can-do team, committed to building long-term relationships of trust and empowering our clients to make informed decisions in a complicated and rapidly changing business.  After twenty years, I feel like I'm just getting going. Anyone interested in a truckload of barrel fermented Chardonnay?

           - Steve Fredricks 

Market Update

Bulk wine and grape markets in California continue to be active.  Audra Cooper, and even Vice President Brian Clements are busy closing deals on North Coast grapes.  Erica Moyer sold just about every available grape cluster in San Joaquin Valley a few months ago. Recently, she has been closing deals on Chardonnay in Monterey County.  Pinot Noir in Monterey is pretty well sold out.  Matt Turrentine was busier than a one-handed grape picker in January, February and March selling Paso Robles Cabernet Sauvignon and other red grapes.  The Cabernet is now mostly gone but he is still closing deals on other varieties in Paso Robles and Southern Monterey County.  On the bulk wine side, Stephens Moody, Steve Robertson, Marc Cuneo and Michael Robichaud have sold most of the available 2010 red wines, are well into the 2011 wines, and are doing more multiple year supply agreements than they have in many years. 

Cabernet Sauvignon

Demand has swallowed almost every drop of 2009 and 2010 Cabernet Sauvignon from the San Joaquin Valley. We have also negotiated contracts on a large portion of the 2011 vintage as well.  2011 Cabernet Sauvignon grapes from the Valley pretty much sold out a few months ago with prices above 2010 and multi year contracts and planting contracts being negotiated.

The Central Coast and North Coast Cabernet Sauvignon bulk markets still have some supply left, but only because asking price increases have tested the elasticity of demand.  2009 is history, 2010 is almost gone.  In the Central Coast, a high percentage of the fruit available early in the season was contracted before the frost.  The frost produced more buyers and increased prices for the few lots still available.  North Coast demand for Cabernet Sauvignon grapes has been steady and picking up steam, but supply is limited. 

Napa Valley bulk demand is strong but asking prices above $30 per gallon have slowed the pace at which deals are completed.  2009 lots still move quickly but to get above $30 for 2009 or even 2010, the wine has to be seriously delicious.  Most of the sales volume has gone down in the $20- $25 range for 2010 vintage.  Demand for grapes in Napa Valley has been strong and is getting stronger, with more buyers active and increased volumes needed.  Prices have risen slightly. 

Demand has picked up for Sonoma County Cabernet Sauvignon wine in bulk, with prices in the $10- $17 range.  Demand for grapes is also strong; the difficult issue, of course, is finding a price that works for both parties.

Chardonnay

Just because a river looks quiet does not mean that the current is slow. Chardonnay is a mighty river with a lot of supply, however there are signs that the supply is flowing a little faster than it has the last few years. The Northern and Southern Interior regions are mostly sold out of Chardonnay grapes. We are moving a lot of Monterey County Chardonnay grapes right now, which is three months earlier than in recent years. Supply of 2010 bulk still exceeds demand, but as some Chardonnay grape prices inch upwards, buyers may re-evaluate the 2010 bulk in an effort to keep costs down. 

Pinot Noir

Brands with Pinot Noir that retails in the $10- $15 per bottle range are still looking for Pinot Noir from Sonoma, Monterey and the Interior.  Most Pinot Noir grapes in the Interior were committed years ago under planting and long-term contracts or are from winery owned vineyards, and the few grapes available this year were sold months ago.  Monterey Pinot Noir grapes have been active and most of the volume is now committed.  The market for Pinot Noir in Monterey County began earlier than in 2010, with more buyers at higher prices and multi-year contracts. Demand is outweighing supply. Sonoma County still has grapes available, but demand is steady and prices are firming, although prices are still considered a bargain compared to the levels of a few years ago.

Merlot

The bulk market for Merlot still lags behind Cabernet Sauvignon, Pinot Noir and other reds, but it is picking up steam.  Pricing has firmed slightly for Merlot from all regions.  Merlot is once again becoming a part of many Cabernet Sauvignon blends.

The Merlot grape market is also lagging behind the other varieties; however, there has not been Merlot grapes available in the Interior for quite some time.  Supply in total is down with fewer acres.  As sales of all red wines continue to strengthen, Merlot will grow as a blender if not as a varietal.

Zinfandel, Petite Sirah and other reds continue to be active for grapes and wine with buyers in need of blenders, primarily for sweet red blends but also for varietal bottlings. Demand for Zinfandel in the Interior is still strong for red wine and white wine but supply is committed. The crop in the Northern Interior is very light.

Moscato is still strong.  Global supply has increased but demand also continues to grow. Consumers have always enjoyed sweet, fruity wines, so demand is likely to remain strong for some time.

Global

Steve Fredricks has been racking up the frequent flier miles recently, checking the pulse of the world wine market. He attended the Prowein show in Germany in March, the London Wine Trade Show in May and the even more massive Vinexpo in Bordeaux in June. The good news, after several tough years of financial crisis, is that the global wine market now has a pulse and is expected to live. Demand for quality wines is up, excess supplies have mostly been consumed and suppliers are now receiving prices that should allow them to purchase at least a new Fiat every once in awhile.

Europe:  Sampling the selection from French, Italian, and Spanish suppliers, it is fair to say that there are opportunities to purchase Chardonnay, Cabernet Sauvignon and Merlot from these countries. The challenge, as always, is to find the right combination of quality, volume and price from a reliable producer. Our European partners are experts at this, offering both bulk and bottled options.  The market is expected to remain strong because the 2010 harvest was not large and global demand is strong.  More vineyards are slated for subsidized removal in the Languedoc region again this year. 

Argentina: Turning to the Southern Hemisphere, Argentina had a better harvest in 2011, which has improved the supply situation.  Demand for Malbec remains strong, although asking prices may have risen beyond what the market will sustain. Dry red and dry white production increased, however demand has also increased, while supplies in competing areas, such as Spain, are low.

Chile:  The market remains active, supply is tight and asking prices have increased.  Samples of 2011 reds will be ready soon.  There is interest from buyers in the U.S., especially for Cabernet Sauvignon and, to a lesser extent, Merlot and generic red. (Let us know if you are interested.) 

Australia:  The 2011 crush was above what was projected; however, Jim Moularadellis, our Australian alliance partner at Austwine, has provided some critical insight into the reality behind the numbers. His notes follow: 

The Winemakers of Australia's vintage report for the 2011 Australian Vintage is 1.619 million tonnes.

In contrast with previous vintages (million tonnes):

2011        1.619    Small-ish

2010        1.603    Small-ish

2009        1.732    Large-ish

2008        1.831    Very large

2007        1.397    Very small

The 2011 crush is certainly higher than expected; so what is all the fuss about under supply from Australia? The 2011 crush number is actually a little misleading for two reasons: The 2011 crush number is the tonnage over the weighbridge, not the tonnage made just into wine. We need to deduct the extra volume of grapes sent to concentrate to increase baume of grapes picked earlier than usual.  My very rough estimate of this is a net loss of 100-150,000 tonnes of volumes available for winemaking.

We also need to deduct the volume of grapes made to wine which will end up not being of commercial quality.  The range of quality outcomes in 2011 is very large compared to previous years and there will be a lot of wine that cannot be sold as varietal wine.  These wines are yet to be released to the market as winemakers try to fix them up and increase quality.  My very rough estimate of the tonnage of low quality wine: another 100-150,000 tonnes.

So if we take the mid-point of my two VERY rough estimates, we need to deduct 250,000 tonnes from the 2011 vintage.  This is quite a big number, so a very different picture emerges:

2011 Adj.                1.369    Very small

2010                        1.603    Small-ish

2009                        1.732    Large-ish

On this analysis, the crush is smaller than 2007 and this is the main reason why prices are rising and the usable supply of varietals is tight. (The 2011 tonnage not picked or dropped on the ground because of quality concerns is not included in these crush numbers. This may have been somewhere between 10-20% of the total crop on the vine.)

The following is a small selection from our recent sales as of 6/22/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Zinfandel 2010 wine, El Dorado, 3,000 gallons at $9.00 per gallon

Cabernet Sauvignon 2010 wine, Central Coast, 24,000 gallons at $10.00 per gallon

Merlot 2010 wine, Napa Valley, 17,000 gallons at $15.00 per gallon

Chardonnay 2010 wine, Arroyo Seco, 34,000 gallons at $6.50 per gallon

Pinot Noir 2010 wine, Napa Carneros, 4,000 gallons at $20.00 per gallon

Grapes

Cabernet Sauvignon 2011 grapes, Alexander Valley, 50 tons at $1,700 per ton

Chardonnay 2011 grapes, California, 400 tons at $550 per ton  

NOVATO, CA– This week, the highly trusted bulk wine and grape brokerage company, Turrentine Brokerage, is releasing their eleventh issue of The Turrentine Outlook©. A strategic reflection and analysis on the future of the wine and grape market, Turrentine’s publication reveals some interesting finds. Predictions of a dramatic shift in grape and bulk wine supply have been prevalent for some time. Market dynamics suggested that by the time everyone achieved the lean inventories favored by lenders and investors, sales would pick up and supplies would become limited. Lean inventories would then bite those who were caught behind the curve.

Turrentine warned last November that “everyone will try to replenish supply at the same time. Most will be astonished to find, in many cases, that what they had considered an excess, has quietly disappeared.” This has now come to pass – in spades.

Mother Nature gets some of the credit for the change, with a lighter crop in 2010 in most of California and Europe. Australia’s vineyards have been whipsawed from drought to excessive rainfall. Chile and Argentina had smaller crops in 2011. But, Connie and Conrad Consumer have done their part as well. The fundamental fact is that sales have grown and vineyard acreage, for the most part, has not. The over $20 per bottle market is still recovering from the recession, but many brands, at a range of price points, are enjoying good growth. Red blending wine, one of the most difficult categories during the years of excess, has been transformed into a hot category, driven by rapid sales growth of premium, fruity-sweet red wines, as well as a large export to Northern Europe. Red Zinfandel, Petite Sirah, Malbec and other reds are selling quickly and at price levels that have not been seen since the glory years of 1999 and 2000.

Turrentine Brokerage has not only experienced a surge in sales volume for grapes and wines in bulk, but they are also seeing a large increase in the percentage of grape and bulk wine sales contracts that extend for multiple years. Those who understand the changing dynamics of the market will make the most profitable use of these long-term commitments.

About Turrentine Brokerage:

Turrentine Brokerage, founded in 1973, specializes in the strategic sourcing of wine grapes and bulk wine from the major growing areas across the globe. Working with thousands of wineries worldwide, and with over 1,500 growers, this experienced team has negotiated transactions between buyers and sellers valued at more than $1 billion over the past decade.

For more information on The Outlook please click HERE

The following is a small selection from our recent sales as of 6/3/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Zinfandel 2009 wine, Paso Robles, 9,000 gallons at $8.00 per gallon

Pinot Noir 2010 wine, California, 4,000 gallons at $8.00 per gallon

Syrah 2010 wine, Alexander Valley, 5,700 gallons at $10.00 per gallon

Cabernet Sauvignon 2010 wine, Alexander Valley, 8,500 gallons at $19.00 per gallon

Chardonnay 2010 wine, Monterey County, 27,000 gallons at $7.00 per gallon

Grapes

Pinot Noir 2011 grapes, Russian River, 10 tons at $2,400 per ton

Cabernet Sauvignon 2011 grapes, Alexander Valley, 80 tons at $1,700 per ton

Viticulturists trained at U.C., Davis have some high-tech methods for early season crop estimates. These techniques involve infinitesimal calculus and the molecular weights of certain tannin compounds.

We Fresno State Bulldogs, on the other hand, walk miles of vine rows, look at a lot of vines and talk to a lot of growers. Our reports are not as cool looking as U.C. Davis, but at least we get some exercise.

Well, I have been getting my exercise recently in Sonoma County pinot noir vineyards. It looks to my Fresno State–trained eyes that in most areas of Sonoma County there are mostly two grape clusters per shoot. (A grape shoot is green tissue growing vertically out of a bud, usually located on a two-bud spur on the main arm or cordon of a grapevine.)

Due to cool weather, vine growth and cluster development appear to be about two weeks behind normal. Of course, “normal” is a fuzzy concept too. In the wine business, it means “that which never happens.” So far, however, the Sonoma County pinot noir grape crop appears similar to last year. Trouble is, Mother Nature always keeps some tricks up her sleeve, and it’s never over until it’s really over.

Why are growers, grape buyers, winemakers and financial folks so concerned about crop size? Crop size has a dramatic effect on quantity, obviously, quality and price.

Last year, was a tough growing season for Sonoma County pinot noir. It was an especially cool year, which is hard on a variety typically grown in sites that are cool even in warm years. Then Mother Nature suddenly turned up the heat and scorched the grapes.

The total Sonoma County pinot noir; delivered to wineries in 2010 was 29,791 tons, according to data for District 3 in table 2 of the final California Grape Crush Report. That was down 7.1 percent from 2009 and down 6.7 percent from the five-year average of 31,826 tons.

But even with major sunburn damage, the crop was still the fourth-largest ever delivered. That tells us that estimates of the sunburn damage were high or the crop was bigger than estimated. There are also new Sonoma County pinot noir acres coming on line. In fact, non-bearing acres are around 10 percent. The good news is most winemakers are reporting that — despite the tough season — the 2010 Sonoma County pinot noir wines are lasting quite good.

In regard to the pinot noir supply and demand picture, after the movie “Sideways,” Sonoma County pinot noir bulk wine sold very quickly and prices shot up. That changed in 2009 as the recession lingered, restaurant sales declined and consumers traded down. Most spot-market Russian River pinot noir grapes once selling for more than $3,500 a ton were then worth $2,000 a ton — if the grower were lucky. Sonoma County pinot noir, the sweetheart of the wine business the previous few years, became hard to sell.

We are not back to the glory years of surging demand, but things are slowly getting better.

One key indicator is the market for wines in bulk. Turrentine Brokerage currently has about 100,000 gallons of Sonoma County pinot noir listed for sale. That might sound like a lot, but last year at this time we had 300,000 gallons for sale — and fewer buyers.

This leads to the final, and I believe the most pressing, issue for 2011 Sonoma County pinot noir: spot-market grape pricing. The spot market is for any grapes not under long-term contracts but are currently available in 2011 for purchase. That said, the inventory of available Sonoma County pinot noir grapes is moderate, meaning it’s still mostly a buyer’s market. But prices, and buyer interest, are on the rise.

So far in 2011, the Sonoma County pinot noir crop appears to be about “average.” We have early interest from multiple buyers for Sonoma Coast and Russian River pinot noir with a few of those buyers considering, and some even offering, multi-year contracts. However, we still face a sluggish economy and wine consumers focused on bargains.

We continue to walk the vineyards, Bulldog-style, and to stare at grape clusters attempting to guesstimate the quantity, quality and pricing of the 2011 Sonoma County pinot noir grape crop. I wonder what old Mother Nature has up her sleeve this year?

•••

Brian Clements is vice president and partner of Turrentine Brokerage (www.turrentinebrokerage.com), a Novato-based marketer of winegrapes and bulk wine in California and abroad.

The following is a small selection from our recent sales as of 5/9/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Merlot 2010 wine, Monterey County, 24,000 gallons at $7.50 per gallon

Cabernet Sauvignon 2010 wine, Napa Valley, 15,000 gallons at $22.00 per gallon

Merlot 2010 wine, California, 12,000 gallons at $4.50 per gallon

Syrah 2009 wine, Mendocino County, 5,600 gallons at $8.00 per gallon

Merlot 2010 wine, Napa Valley, 3,000 gallons at $14.00 per gallon

Pinot Noir 2010 wine, Monterey County, 7,300 gallons at $13.00 per gallon

Grapes

Cabernet Sauvignon 2011 grapes, Paso Robles, 125 tons at $1,100 per ton

Grenache 2011 grapes, Paso Robles, 46 tons at $850 per ton

The following is a small selection from our recent sales as of 4/18/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Merlot 2009 wine, California, 27,000 gallons at $5.00 per gallon

Zinfandel 2009 wine, Paso Robles, 13,425 gallons at $7.50 per gallon

Merlot 2010 wine, Oak Knoll District, 1,813 gallons at $12.00 per gallon

Pinot Noir 2010 wine, Monterey County, 13,660 gallons at $12.00 per gallon

Sauvignon Blanc 2010 wine, Livermore, 6,500 gallons at $5.50 per gallon

Zinfandel 2009 wine, Paso Robles, 26,000 gallons at $8.50 per gallon

Chardonnay 2010 wine, Sonoma Coast, 3,000 gallons at $10.00 per gallon

Cabernet Sauvignon 2009 wine, Red Hills, 5,586 gallons at $9.50 per gallon

Grapes

Cabernet Sauvignon 2011 grapes, Alexander Valley, 100 tons at $1,400 per ton

All the rain this March was not enough to dampen the grape and bulk wine markets.  Turrentine Brokerage sold over 30,000 tons of grapes and almost 3,000,000 gallons of wine in over 300 separate sales in March, and we have the muddy boots and cauliflower ears to prove it. 

While demand is strongest at the lower end of the market, we also set a record for the highest price per gallon for a wine in bulk.  In some past years during tough times, we have sold wine for distilling or vinegar for $0.50 per gallon. We have also sold large volumes of wine over the years at $5.00 per gallon.  But this is the first time we have sold wine - over a thousand gallons of Napa Valley Cabernet Sauvignon - at $50.00 per gallon.  Of course, it was also one of the very best wines we have ever sold.

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The following is a small selection from our recent sales as of 4/4/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Sauvignon Blanc 2010 wine, Russian River, 14,500 gallons at $8.00 per gallon

Syrah 2009 wine, Monterey County, 6,300 gallons at $5.50 per gallon

Chardonnay 2010 wine, Napa Carneros, 3,600 gallons at $12.00 per gallon

Cabernet Sauvignon 2009 wine, Alexander Valley, 3,800 gallons at $15.00 per gallon

Merlot 2010 wine, Monterey County, 17,500 gallons at $7.10 per gallon

Brian Clements, Vice President / Partner here at Turrentine Brokerage, just published an article in the North Bay Business Journal. It discusses the Crush Report for 2010 and how it relates and affects Sonoma County Growers. To find out more about the current grape market and helpful marketing strategies, read the full article here.

Turrentine Blog

Catch the thoughts and experiences of our brokers on the new, Turrentine Blog:

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Turrentine Brokerage
www.turrentinebrokerage.com
Trusted & Strategic Advisors, Customized Solutions for Growers, Wineries & Financiers 

The following is a small selection from our recent sales as of 3/21/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Sauvignon Blanc 2010 wine, Napa Valley, 8,600 gallons at $6.75 per gallon

Merlot 2009 wine, Alexander Valley, 10,000 gallons at $12.00 per gallon

Chardonnay 2009 wine, California, 31,000 gallons at $2.00 per gallon

Petite Sirah 2009 wine, California, 12,600 gallons at $6.50 per gallon

Merlot 2009 wine, Napa Valley, 13,000 gallons at $14.00 per gallon

Pinot Noir 2010 wine, Sonoma Carneros, 29,300 gallons at $16.00 per gallon

Grapes

Cabernet Sauvignon 2011 grapes, Sonoma County, 120 tons at $1,850 per ton

Sauvignon Blanc 2011 grapes, Alexander Valley, 75 tons at $1,300 per ton

Zinfandel 2011 grapes, Lodi, 125 tons at $900 per ton

Introductory Note

The Final Grape Crush Report released March 10th, shows no significant changes from the Preliminary Report.  The total crop of winegrapes harvested statewide in 2010 was 3.58 million tons, down only 3% from 2009, making 2010 the third largest crop in California history. There were dramatically different results in different regions of the state, with the North Coast down 5%, the Central Coast up 5%, the Northern Interior down 22% and the Southern Interior up 5%.  We're going to look at the results from the Interior Regions of the state more closely below and discuss the changing market for Chardonnay.

A Closer Look at the Crop in the Interior

The decreased production in the Interior regions of the State in 2010 was not a surprise, and was in-line with our projections, but it's the biggest story coming out of the 2010 Preliminary Grape Crush Report for three reasons:

1) Value-priced grapes and wine, which are primarily sourced from the Interior, continue to enjoy the strongest level of demand.  While wine consumption grew through the recession, consumers traded down to less expensive bottles and shifted purchases from restaurants to retail.  Even as the economy continues to slowly recover, the under $10/bottle category remains very strong.  Demand for red grapes, and especially the key red varietals, outstripped supply in 2009 and 2010 and the market for 2011 red grapes is already active.  Demand for red wine in bulk has also increased as inventories have decreased.  In the case of Cabernet Sauvignon and Pinot Noir, many wineries could have used a larger harvest, and as a result, bulk wine demand and prices have increased.

2) The Interior was only down about 4% overall, or 120,000 tons, but the distribution of those tons is significant.  The Northern Interior (Districts 9, 10, 11, and 17) was down 21% and some analysts have claimed that this decrease was largely offset by gains in the Southern Interior (Districts 12, 13, 14) which were up 5%.  However, the gains in the Southern Interior were largely in generic varieties -Rubired up 50,000 tons, Other Red up 19,000 tons, and Ruby Cabernet up 7,000 tons.  In fact, these three varieties account for 81% of the increase in the Southern Interior.  Furthermore, some percentage of this tonnage was crushed for concentrate rather than for wine production.  If we compare the major varietal wine categories shown in the chart below - it is clear that the Southern Interior did not come close to making up for the shortfall of key varietals in the Northern Interior.

3) Much of the wine produced in the Southern Interior competes directly with inexpensive wine from around the world and - from a consumer's perspective - is interchangeable.  However, California brands looking to source wine from other parts of the world are faced with a different paradigm than just a few years ago:

a)     Exchange rates have dramatically increased the cost of many imported wines - especially from countries that are big exporters of natural resources, such as Australia ($AUS up 50% vs. Q1 of 2009) and Chile (Peso up 26% vs. Q1 of 2009)

b)     Global Inventories are down - sharply in some cases.  In particular, Chile's inventories are well below pre-earthquake levels and their 2011 crop is projected to be average, and Australia is expecting a light crop due to disease pressure that has been extreme with the rains and flooding.

Chardonnay

For the last several years, Chardonnay has been synonymous with surplus.As our team of brokers survey the world wine business, however, they have noticed that the supply picture for Chardonnay is changing.  Consider the following points:

1)     The 2010 crop of Chardonnay in California was down 10% from 2009, a reduction equivalent to about 12 million gallons.  Wineries purchased almost all of the Chardonnay grapes available for the harvest of 2010, which is in sharp contrast to 2009, when thousands of tons were custom crushed by growers who were unable to sell their grapes, especially on the Central Coast.

2)     Although recent sales prices have remained low, inventories of 2009 Bulk Chardonnay in California have come down dramatically. Total California bulk listings (see graph of Chardonnay in bulk below) are also down sharply from last year at this time.

3)     On the Global bulk market, the biggest source for Chardonnay directly competitive with California is Australia. The 2011 growing season down under has been challenging from the start with heavy spring and summer rains that continued as harvest started.  The disease pressure from Downey mildew early in the season and then Powdery mildew later has been intense and will impact the volume and quality of this year's harvest.  Bulk market prices have been steady and some wineries have withdrawn wine from the market as a hedge against 2011 quality concerns.  The shift in the exchange rate over the past couple of years has made the supply more expensive for California buyers.  Supply is down for Chardonnay throughout Europe and prices are high.  Chile and Argentina are not significant players for Chardonnay.  (See chart of International supply below.)

4)     In contrast to most years in the recent past, there is some early demand for 2011 Chardonnay grapes in California.

While the association between Chardonnay and surplus still lingers in people's minds, supply in the real world has dropped.  Scan-data, on the other hand, indicates some significant sales growth for Chardonnay casegoods.  Those responsible for Chardonnay inventory, as grapes or wine, will want to stay in close contact with Turrentine Brokerage as spot market and long-term market dynamics continue to develop.

Market Opportunities

*Note to all growers: Markets are shifting. We need to know now what you have available for 2011 and in the future in order to provide you with the right opportunities. 

Turrentine Blog

Catch the thoughts and experiences of our brokers on the new, Turrentine Blog:

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www.turrentinebrokerage.com
Trusted & Strategic Advisors, Customized Solutions for Growers, Wineries & Financiers  

The following is a small selection from our recent sales as of 2/14/11.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

White Riesling 2010 wine, Santa Barbara County, 5,000 gallons at $8.00 per gallon

Zinfandel 2009 wine, Amador County, 16,800 gallons at $7.25 per gallon

Sauvignon Blanc 2010 wine, Knights Valley, 11,000 gallons at $7.00 per gallon

Merlot 2009 wine, Alexander Valley, 4,000 gallons at $13.00 per gallon

Merlot 2009 wine, Monterey County, 24,000 gallons at $7.00 per gallon

Pinot Noir 2010 wine, Napa Carneros, 3,600 gallons at $16.00 per gallon

Cabernet Sauvignon 2010 wine, Napa Valley, 16,800 gallons at $18.00 per gallon

Merlot 2009 wine, Napa Valley, 6,500 gallons at $14.00 per gallon

Turrentine Brokerage fosters structured strategic relationships with strong brokers in major wine growing regions around the world.  Following, is an update from Jaime Lagos of San Nicolas Wine Services, our strategic alliance partner in Argentina, discussing the bulk wine market in Argentina as the 2011 harvest approaches.  Please contact Turrentine Brokerage if you have any further questions about the opportunities in the Argentine, Chilean, Australian, Italian, Spanish or French wine markets in addition to the domestic markets. 

Dear Friends,

The wine market in Argentina is quite stable.  Grape producers started delivering to wineries in the north (La Rioja), and in one week will be starting in San Juan, two weeks in Mendoza.

There is no clear view about what the final prices will be for the grapes, but it looks like there are enough offers, which shows some tendency toward wine prices maintaining in the beginning and ending the harvest again by taking step by step down.

La Rioja.

Volumes and quality are good. This area has less risk of frost and hail than the other provinces, and their production is much more stable. Torrontes and Syrah looks good.

San Juan.

First  analysis indicates that this province will have about 17.7% more production than last year; about 767 million kilos of grapes. Sanity is very good! There was some high temperature this summer, but that is usual for this area. There is still some availability of red grapes that some producers can’t commit with wineries.

Mendoza.

Looks like this province will have just about 1.7% production over last year, which means about 1.800 million kilos of grapes. This is not been a very hot summer; mainly high temperatures went to 30° to 35 ° Celsius, and humidity has been normal (20 to 50%) and not too many summer rainstorms. The thing that most worries grape growers is the lack of water that Mendoza is suffering from, with controlled irrigation shifts. As there is not much snow on the Andes and all dams have less volumes than average.

There is still some speculation regarding the final production numbers on Uco Valle, where a big frost came in mid November. Will have to wait until the end of March to get a clearer view of the good quality Malbec production numbers. This particular situation combined with the constant increase of demand of Malbec from abroad can push standard Malbecs into higher prices. The rest of varietals should maintain the same as last year prices.

Neuquen.

This small production area in Patagonia has always frost risk due to their geographical location, but this year there is no significant issues that can move the average numbers. There is an interesting growing Malbec production there, with good color and natural high sugar wines due to the short fermentation process they have. Wine production is becoming interesting day by day on that location, with nice Chardonnay and Pinot Noirs, obviously besides Malbec.

The Turrentine Brokerage Blog

The following is a small selection from our recent sales as of 1/31/11

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Zinfandel 2009 wine, Russian River, 6,500 gallons at $14.50 per gallon

Roussanne 2010 wine, Santa Barbara County, 6,500 gallons at $7.00 per gallon

Merlot 2009 wine, Oakville, 1,900 gallons at $20.00 per gallon

Petite Sirah 2009 wine, Lodi, 6,400 gallons at $6.00 per gallon

Zinfandel 2009 wine, Lodi, 13,000 gallons at $6.75 per gallon

Grapes

Zinfandel 2011 grapes, Lodi, 100 tons at $900 per ton

The following is a small selection from our recent sales as of 1/10/11

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

As the bulk wine activity ramps back up after the 2010 harvest it is very good to remember the importance of properly prepared samples.  Below is a reprint an article written by Bill Turrentine from the Turrentine Brokerage “Market Update” newsletter December 2002.

OK, we admit that selling wine in bulk is not the most glamorous part of the wine business.  Nor is it the most profitable.  But for many wineries, it does have big economic consequences.  We work with a few companies that are well organized around selling wine in bulk and it makes a big difference in the bottom line.  Here are five quick tips for getting the most out of your bulk wine sales.

1.                  Don’t Neglect It; Improve It.Offer the best wine you possibly can.  Don’t just grab a sample from the tank.  Work with it, adjust the acid, enhance the color, clean it up, make it taste better, make it look better.  Try to make lab blends that taste better than the components.  Consider sacrificing a little of your better wines in order to upgrade bulk lots.  This may be counter-intuitive but the quality of the wine you offer in bulk will dramatically affect the quantity of dollars you get back.  We have sold in the past year California appellation Cabernet Sauvignon as high as $4.00 per gallon and as low as $7.00per gallon.  We have sold Napa Valley Cabernet as high as $26 per gallon and as low as $7.  It pays to present the best blends possible.  In fact, problem wines don’t often not sell at all, at any price.  

2.                  Get the Wine Ready First. There are early buyers most years and it is good to get your wines ready quickly for these buyers.  But – even more important – never send out a sample of a wine you would not be willing to purchase yourself.  While sellers diminish defects in their own minds, buyers magnify them. Remember that the winemaker on the other end is – justifiably – suspicious.  He does not want to purchase someone else’s problem.  If one of his own wines should exhibit a little H₂S, for example, he is not concerned. He knows the history of his wine and is confident it will clean up.  But if a bulk sample shows the same amount of H₂S, he wonders whether someone else has already tried – and failed to clean up the wine. In fact, that might be the reason the seller is trying to offload what is otherwise a pretty good wine.  He may end up purchasing another wine he does not like as well in other respects but which seems safer.  The bottom line is: make extra efforts to be sure your wine is showing well – even to a suspicious buyer – before you send out that sample.

3.                  Prepare Samples that Sell. It is a shame to lose a sale just because of a bad sample, but it happens all the time.  A winemaker filled a wineglass for me recently from the sample value of a large tank.  This first glass from the sample value had an off character, so he threw it down the drain and drew a second glass, which was delicious.  A cellar worker might not know to dump that first bit of wine but might have put it into the first sample bottle.  A potential buyer would then receive a defective sample.  Some knowledgeable and responsible person must make sure that the sample is properly drawn and accurately represents the wine.  The sample should be clearly labeled with all of the relevant information (percentage varietal, vintage and appellation, gallons available, how stored, tank and lot number, asking price, broker information, date sample drawn, and analysis if available – Alcohol, Total Acid, pH and VA).  Samples should be sent quickly when requested.  If the sample is going directly to a potential buyer, we at Turrentine Wine Brokerage appreciate being informed by fax or e-mail as soon as the sample has been sent to facilitate fast, efficient follow-up.

4.                  Think Customer Service. Even when you are just getting rid of excess inventory, you still need to make your company easy for buyers to deal with.  This may sound obvious but few wineries apply marketing principles to wines for sale in bulk.  It is important to remember that, even in the bulk market, the party exchanging cash for product is a customer.  If you treat that bulk buyer like a real customer, pretty soon you’ll have more such customers bidding for your products, producing better prices and faster turnover.

5.                  Pick the Best Broker. Finally, the most important element of selling wines in bulk is – you guessed it – picking the right broker.  Seriously, you must pick the right broker to present your wines and to negotiate and document a sale and to mediate any questions or problems.  If you are offering high quality wines, you will want to have a broker known for selling high quality wines.  And that broker is, well you already know who that broker is.  So give us a call to sell your high quality wines.  Turrentine Wine Brokerage is the leading broker of premium grapes and wines in bulk.  We are also experienced in helping wineries and growers plan for profit around wines business cycles.

Bill Turrentine
Chairman of the Board

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2011 Grape Market

Last year at this time, growers were eager to sell their grapes but the financial folks at wineries decided to hibernate for the winter - and the spring, and most of the summer. This year, our team of grape brokers has already concluded a number of multi-year extensions and are well into the process of putting together 2011 strategies with both growers and wineries. 

Obviously, our jingling phones are singing a song of a changing market.  The "Other Guy" is making his move. Contact your favorite Turrentine broker for more detailed market information and customized analysis and strategies for short and long-term success.

Check out the Turrentine Blog for an update on the importance of properly prepared and labeled samples.  Read more...

Market Opportunities

Bulk wine needed: Viognier 2010 Napa Valley appellation

Bulk wine needed: Pinot Noir 2010 Napa Carneros, Russian River, Santa Barbara and Monterey County appellations

Bulk wine needed: Cabernet Sauvignon 2009 Napa Valley and all Sonoma County appellations

Bulk wine needed: Sauvignon Blanc 2010 Napa Valley

Bulk wine needed: Zinfandel 2009 and 2010 Dry Creek Valley

Bulk wine needed: Chardonnay 2010 Russian River and Carneros appellations

Bulk wine needed: 2009 and 2010 California appellation wines from Organic grapes

Grapes needed: 2011 Generic reds and French Colombard

Grapes needed: 2011 Lodi and Sierra Foothills Zinfandel

Bulk wine available: Pinot Grigio 2010 Monterey County Arroyo Seco appellation and California appellation

Bulk wine available: Gewurztraminer 2010 Santa Barbara County appellation

Bulk wine available: Chardonnay 2009 Santa Barbara County appellation

Bulk wine available: Paso Robles 2010 Grenache and Petite Sirah

Bulk wine available: California appellation Petite Verdot 2010

Planting opportunities: Districts 11, 12, and 17

*Note to all growers: We need to know what you have available earlier rather then later in order to provide you with as many opportunities as possible

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In the Fall of 2009 Steve Fredricks spoke at the Wine Industry Financial Symposium about the "Other Guy".  Even though casegood sales have continued to grow, especially at the value end of the market, just about every winery has been focused on the short-term goal of conserving cash.  As long as the "Other Guy" was also sitting on his hands, the market at all price points has been mostly well supplied with wine and grapes and there has been no incentive not to please the banker and hoard cash.  The trouble with the "Other Guy" strategy, of course, is that the "Other Guy" uses it too.  As long as everyone holds back, everyone holds back - and supply appears more plentiful than it really is relative to consumer sales.  For the value end of the business, at least, it will not take much of an up-tick in demand or much of a drop in supply for the "Other Guy" to start buying.  In fact, the "Other Guy" is already active in the market in response to a lighter harvest in 2010 and continued growth in casegood sales. 

From our vantage point as brokers of grapes and wines in bulk, we see the first changes in the market.  Last year at this pre-Christmas time, our phones were ringing like crazy with growers who had custom-crushed and wineries that needed to reduce inventory, especially high-end inventory.  Missing in action, however, were those folks who can actually make a market happen - the all-important buyers.  This year our phones are ringing away again, with a large percentage of those calls from buyers, mostly looking for red varietals.  As the graph below illustrates, volumes of wine in bulk listed for sale are down at the same time demand, at least for red wines, is up.  2011 is going to be the year the "Other Guy" starts to buy. 

Cabernet Sauvignon

The market for Cabernet Sauvignon continues to be the most active, with demand for 2009 vintage wines from all regions.  Demand is centered on the value end of the business in every region.  Recent sales of California and Lodi Cabernet Sauvignon have been in the $6.00 to $7.00 per gallon area and supply is tight.  Recent sales of Central Coast and North Coast Cabernet Sauvignon have been in the $6.00 to $9.00 per gallon range.  While the luxury end of the market is still soft, value brands have demonstrated increasing interest in Napa Valley 2009 Cabernet Sauvignon, with multiple offers on lots of wine and increased pressure on price.  Some offers have risen above the $20.00 per gallon mark.  

Chardonnay

Demand is slow for Chardonnay but 2010 production decreased, bulk imports shrank dramatically and the volume custom crushed by growers is much less than last year.  In the meantime, Chardonnay casegood sales are growing slowly. 

Pinot Noir

We have seen steady interest in Pinot Noir, but it continues to be price-sensitive.  As a result of lower than projected yields per acre in the Interior and the Central Coast in 2010, we have seen increased interest in the remaining 2009 California appellation wines, with recent sales in the $6 per gallon range.  Central Coast prices remain in the $11- $14 per gallon range.  There is almost no Russian River Pinot Noir from 2009 currently offered for sale. 

2011 Grape Market

Last year at this time, growers were eager to sell their grapes but the financial folks at wineries decided to hibernate for the winter - and the spring, and most of the summer. This year, our team of grape brokers has already concluded a number of multi-year extensions and are well into the process of putting together 2011 strategies with both growers and wineries. 

Obviously, our jingling phones are singing a song of a changing market.  The "Other Guy" is making his move. Contact your favorite Turrentine broker for more detailed market information and customized analysis and strategies for short and long-term success.

Check out the Turrentine Blog for an update on the importance of properly prepared and labeled samples.  Read more...

Market Opportunities

Bulk wine needed: Viognier 2010 Napa Valley appellation

Bulk wine needed: Pinot Noir 2010 Napa Carneros, Russian River, Santa Barbara and Monterey County appellations

Bulk wine needed: Cabernet Sauvignon 2009 Napa Valley and all Sonoma County appellations

Bulk wine needed: Sauvignon Blanc 2010 Napa Valley

Bulk wine needed: Zinfandel 2009 and 2010 Dry Creek Valley

Bulk wine needed: Chardonnay 2010 Russian River and Carneros appellations

Bulk wine needed: 2009 and 2010 California appellation wines from Organic grapes

Grapes needed: 2011 Generic reds and French Colombard

Grapes needed: 2011 Lodi and Sierra Foothills Zinfandel

Bulk wine available: Pinot Grigio 2010 Monterey County Arroyo Seco appellation and California appellation

Bulk wine available: Gewurztraminer 2010 Santa Barbara County appellation

Bulk wine available: Chardonnay 2009 Santa Barbara County appellation

Bulk wine available: Paso Robles 2010 Grenache and Petite Sirah

Bulk wine available: California appellation Petite Verdot 2010

Planting opportunities: Districts 11, 12, and 17

*Note to all growers: We need to know what you have available earlier rather then later in order to provide you with as many opportunities as possible

Turrentine Blog

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Novato, CA, December 1, 2010…Turrentine Brokerage announced today that Marc Cuneo has joined the company as a broker.  A member of the Sebastiani wine family, Cuneo has managed vineyards, crushed and fermented grapes, and has worked in sales for both Sebastiani Vineyards and for a major distributor.  At Turrentine Brokerage, he will put his experience to work helping wineries to manage inventories to sustain brand growth and maximize cash flow through good planning and the strategic use of the market for wines in bulk. 

“Marc brings experience, energy and intelligence to our growing business.  Our whole team is excited to have him on board,” commented Steve Fredricks, President. 

 Marc got his start in the business as a sales representative for Southern Wines and Spirits in San Francisco, after getting a Business Admin. degree at the University of the Pacific, Stockton, CA.  He then began at Sebastiani Vineyards as a cellar rat.  Over the next ten years, Marc steadily advanced in responsibilities, ultimately serving as the Vice President of Grower Relations and as a member of the executive marketing team.  During his decade of service, Marc successfully spearheaded a major repositioning effort for the 100-year-old winery. 

Turrentine Brokerage serves as a trusted and strategic advisor to deliver customized solutions for growers, wineries and financiers brokering grapes and wines in bulk based on:

• An established reputation for integrity earned over 38 years of service
• An unparalleled level of customer service delivered with a sense of urgency
• Strong relationships with an extensive network of buyers and sellers across the U.S. and the world
• Demonstrated expertise, with the most experienced team of brokers and analysts in the industry – over $1.5 billon dollars in completed grape and wine transactions over the last ten years.
•  Proven long-term strategies from exclusive and superior market information and proprietary research
• Unmatched expertise in long-term contracts and supply solutions

 Located in Novato, California, Turrentine Brokerage can be reached at (415) 209-9463.  The firm’s web site can be found at www.turrentinebrokerage.com.

Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Pinot Noir 2009 wine, California, 18,000 gallons at $6.00 per gallon
Malbec 2008 wine, Napa Valley, 1,600 gallons at $17.00 per gallon
Chardonnay 2009 wine, Mendocino County, 13,000 gallons at $4.00 per gallon
Zinfandel 2009 wine, Lodi, 6,500 gallons at $6.50 per gallon
Petite Sirah 2009 wine, Lodi, 6,400 gallons at $5.00 per gallon

Grapes

Zinfandel 2011 grapes, Lodi, 150 tons at $900 per ton

Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine (Recent Sales)

Merlot 2009 wine, Sonoma Valley, 8,600 gallons at $6.50 per gallon
Pinot Noir 2009 wine, Edna Valley, 1,800 gallons at $10.00 per gallon
Chardonnay 2009 wine, Sonoma County, 5,500 gallons at $7.50 per gallon
Merlot 2009 wine, Livermore, 3,000 gallons at $4.50 per gallon
Barbera 2009 wine, Paso Robles, 6,000 gallons at $6.00 per gallon
Merlot 2009 wine, Napa Valley, 9,400 gallons at $11.00 per gallon

Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Merlot 2009 wine, Sonoma Valley, 8,600 gallons at $6.50 per gallon
Pinot Noir 2009 wine, Edna Valley, 1,800 gallons at $10.00 per gallon
Chardonnay 2009 wine, Sonoma County, 5,500 gallons at $7.50 per gallon
Merlot 2009 wine, Livermore, 3,000 gallons at $4.50 per gallon
Barbera 2009 wine, Paso Robles, 6,000 gallons at $6.00 per gallon
Merlot 2009 wine, Napa Valley, 9,400 gallons at $11.00 per gallon

The following is a small selection from our recent sales (updated 10/28/10). These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Chardonnay 2009 wine, Russian River, 6,500 gallons at $11.50 per gallon
Cabernet Sauvignon 2009 wine, Paso Robles, 5,000 gallons at $6.50 per gallon
Cabernet Sauvignon 2009 wine, Lodi, 24,000 gallons at $6.00 per gallon

Grapes

White Riesling 2010 grapes, Santa Lucia Highlands, 150 tons at $450 per ton
Chardonnay 2010 grapes, Santa Lucia Highlands, 100 tons at $600 per ton

The following is a small selection from our recent sales as of 10/18/10. These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Chardonnay 2009 wine, Russian River, 6,500 gallons at $11.50 per gallon
Cabernet Sauvignon 2009 wine, Paso Robles, 5,000 gallons at $6.50 per gallon
Cabernet Sauvignon 2009 wine, Lodi, 24,000 gallons at $6.00 per gallon

Grapes

White Riesling 2010 grapes, Santa Lucia Highlands, 150 tons at $450 per ton
Chardonnay 2010 grapes, Santa Lucia Highlands, 100 tons at $600 per ton

The following is a small selection from our recent sales as of 10/22/10.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Chardonnay 2009 wine, Russian River, 6,500 gallons at $11.50 per gallon

Cabernet Sauvignon 2009 wine, Paso Robles, 5,000 gallons at $6.50 per gallon

Cabernet Sauvignon 2009 wine, Lodi, 24,000 gallons at $6.00 per gallon

Grapes

White Riesling 2010 grapes, Santa Lucia Highlands, 150 tons at $450 per ton

Chardonnay 2010 grapes, Santa Lucia Highlands, 100 tons at $600 per ton

In researching the next issue of the Turrentine Outlook and in preparation for my presentation to the Wine Industry Financial Symposium on September 21^st, I am once again reminded of two issues within the Wine Industry: how quickly the market can change and then also how dangerous the perceptions of market conditions can be compared to the reality of them.

With regards to how quickly the market can change, just six weeks ago, thousands of tons of red grapes were uncontracted from the California Central Coast region and now, are almost all sold.  There was no activity in the Chardonnay grape market in the Northern Interior region, and now, most of the larger blocks are contracted and buyers are setting their sights on Central Coast uncontracted Chardonnay.  There were numerous tons of Sonoma County Chardonnay for sale before the heat wave caused significant sunburn damage. Conservative estimates are that at least 10% of the crop was lost.  If that 10% estimate is correct, that is equal to three times the volume of Sonoma County Chardonnay actively for sale on the bulk market today.  With these examples at play, you can see how today is quite different from six weeks ago in many ways.

Understanding and keeping up to date with the everchanging Wine Industry is imperative so that certain perceptions do not hinder you from making crucial correct decisions.  Wineries who are employing the Just-In-Time-Inventory strategy with the perception that wine will be available in bulk next year need to know the market reality.  The value end of the wine market continues to be strong.  Global supplies of appropriate quality of Cabernet Sauvignon, Merlot and Chardonnay are not in excess, causing upward pressure on bulk prices.  California supplies of wines are decreasing.  The 2010 harvest will, most likely, be average to below average in volume.  The Just-In-Time-Inventory strategy to push inventory back to the grower and hope that the grower will custom crush and the wine will be available in bulk, may not be successful.  Our market activity and information show that growers may not be custom crushing the varieties/tonnages that wineries are counting on.   This is mainly due to the same tough financial constraints around inventory and desire for cash that wineries have, making the growers choose to sell grapes vs. wait on the bulk market.

Long term planning and flexibility to react to the short term changes are the keys to long term success and profitability.  Make sure you are up to date on current market conditions for your forecasting by contacting your favorite Turrentine Broker for more detailed market information.

Steve Fredricks
President

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The following is a small selection from our recent sales as of 9/17/10.

These actual sales can give some indication of the market but it should be remembered that individual sale prices vary widely due to quality, barrel age and other special circumstances.

Bulk Wine

Cabernet Sauvignon 2009 wine, California, 4,600 gallons at $5.00 per gallon

Zinfandel 2009 wine, Dry Creek Valley, 3,600 gallons at $14.50 per gallon

Cabernet Sauvignon 2009 wine, Paso Robles, 6,500 gallons at $6.25 per gallon

Pinot Noir 2009 wine, Russian River, 3,200 gallons at $15.00 per gallon

Cabernet Sauvignon 2009 wine, Napa Valley, 4,800 gallons at $18.00 per gallon

Grapes

Pinot Gris 2010 grapes, Russian River, 10 tons at $1,200 per ton

Pinot Noir 2010 grapes, San Benito County, 65 tons at $620 per ton

Zinfandel 2010 grapes, Paso Robles, 60 tons at $650 per ton

Chardonnay 2010 grapes, Mendocino County, 70 tons at $500 per ton

Sauvignon Blanc 2010 grapes, Russian River, 55 tons at $1,150 per ton

Chardonnay 2010 grapes, Monterey County, 400 tons at $500 per ton

Zinfandel 2010 grapes, Dry Creek Valley, 20 tons at $1,700 per ton

Sauvignon Blanc 2010 grapes, Alexander Valley, 60 tons at $1,175 per ton

Bulk Wine

Cabernet Sauvignon 2009 wine, California, 74,000 gallons at $5.50 per gallon

Syrah 2009 wine, Paso Robles, 3,200 gallons at $6.00 per gallon

Syrah 2008 wine, Edna Valley, 6,400 gallons at $6.00 per gallon

Cabernet Sauvignon 2009 wine, Santa Barbara County, 24,400 gallons at $5.50 per gallon

Grapes

Cabernet Sauvignon 2010 grapes, Lake County, 44 tons at $600 per ton

Petite Sirah 2010 grapes, Lake County, 40 tons at $600 per ton

Pinot Grigio 2010 grapes, Lodi, 280 tons at $450 per ton

Pinot Noir 2010 grapes, Arroyo Seco, 65 tons at $1,000 per ton