COMPANY PROFILE

Bookmark and Share

TURRENTINE BROKERAGE

Turrentine Brokerage logo


CONTACT INFO

Twitter Linkedin

Address

7599 Redwood Blvd Ste 103
Novato
CA, 94945
United States
Phone
415-209-9463
Fax
(415) 209-0079
Primary

Trusted and Strategic Advisors

Turrentine Brokerage sells winegrapes from all California regions and wines in bulk from California and around the world.  Turrentine Brokerage serves as a trusted and strategic advisor to deliver customized solutions for growers, wineries and financiers based upon:

  • In our 43rd year of service
  • A reputation for integrity
  • Quick response to client needs
  • Demonstrated expertise, with the most experienced team of brokers and analysts in the industry 
  • Brokering grapes and bulk wine Domestic and International
  • Proven long-term strategies from exclusive and superior market information and proprietary research
  • Unmatched expertise in long-term contracts
  • Publishers of The Turrentine Outlook: Strategies & Forecasts for a Strategic Advantage

Grapes Wines in bulk Strategic planning Global sourcing Processing Casegoods

Turrentine Brokerage is dedicated to helping the California wine business by supplying accurate information about supply trends and by providing win/win negotiations. The company works with most of the wineries in California, as well as with wineries in other states and with foreign purchasers of California wines. Turrentine Brokerage also assists many of the state's leading grape growers in marketing their grapes.

 

Tel: 415/209-9463  fax: 415/209-0079 Website: www.turrentinebrokerage.com

WHAT A BROKER REALLY DOES


Marketing advice and performance information.
Brokers provide buyers and sellers with guidance in determining fair market values. What determines fair market value? Roughly in order of importance: demand, grape or wine quality, appellation, quantities and payment terms. Of course, determining grape or wine quality involves subjective judgements. Demand also comes and goes and is not easy to measure. So providing guidance on price is far from an exact science and requires experience and a bit of humility. Accurate market information can add many dollars of value.

The avoidance of a multitude of totally inappropriate matches. If you are selling, you want to connect with as many qualified buyers as possible. If you are a buyer, you want to visit as many appropriate vineyards and to sample as many appropriate wines as possible. Of course, the key words are "qualified" and "appropriate". Sellers and buyers don't want to waste time and resources on a multitude of inappropriate matches. This can add up to many hours of time saved. So the fundamental role of the broker is to find as many appropriate matches and as few inappropriate matches as possible. In a business with a thousand wineries and many thousands of growers, in a business where each winery and each grower may have multiple varieties, and in a business where production volume is hard to predict and where sales fluctuate dramatically, everyone always has too much of some items and too little of others. And what they have and what they need changes rapidly. Because a broker specializes in making a market, they are in constant contact in person, by telephone, by e-mail, by fax, by newsletter, by web site - with potential buyers and sellers.

Follows up to make sure samples arrive and get tasted and if possible result in negotiations for a sale. Follow up is key to successful sales. The establishment and support of a protocol for grape and bulk wine sales is also a crucial function of a broker. Although actual problems are infrequent, potential problems are numerous. Some of the potential problems with regard to wine in bulk are: wines may be moved or blended after samples are sent, buyers or sellers can change their minds after agreeing to a deal, the potential buyer who makes the first offer may not get a proper chance at a counter-offer, the wine may not seem to match the samples when the truck arrives, the buyer may not take all of the gallons agreed to, the buyer may not ship the wine by the date agreed, the buyer may not make deposits or payments according to the terms agreed upon. Grape sales have at least as many potential problems as bulk wine sales.

Not all of these potential problems are easily dealt with by means of legal contracts. In actual practice, the best way to prevent these problems is to have a trusted third party facilitating the process. Virtually everyone who buys or sells grapes or wine in bulk does so over and over again. A reputation as a solid player who deals fairly with others is important to any company that wants easy access to a wide range of buyers and sellers. As a result, the vast majority of sales go smoothly and any difficulties are quickly solved.

Avoidance of an up-front fee. Simply, we only charge when a deal is completed, the grapes or wine has been delivered and the check is in hand. If there are problems, we're there to iron them out.

Confidentiality. We keep your bulk wine sales and purchases confidential. Another key function of a broker is credit information. Actually, it's more than credit information; it might be called performance information. The wine business has become more formal but friendly cooperation and trust still play a large role in the markets for grapes and wines in bulk. The vast majority of buyers and sellers are happy to adhere to an established protocol with regard to how wines are offered and prices set and offers entertained and offers countered and agreements written and agreements honored. The broker has the sometimes uncomfortable role of encouraging compliance with established protocol if one party or the other is not playing by the rules.

Long Range Planning. A significant and growing part of our business involves another level of service. Many grower and winery clients are interested in medium and long term strategic planning. How should a grower go about developing a suitable customer base for his grapes? What should a winery do to assure a flexible, high-quality and competitively priced supply of grapes or wine for a growing brand? What are the strengths and weaknesses of potential suppliers? What is the likelihood of price decreases over the next few years? Does it make sense to commit long term or keep commitments short? The experience gathered from over forty years of selling grapes and wines in bulk helps us to address issues like these. Of course, in a dance between fickle consumers and an equally fickle Mother Nature, there are no guaranteed strategies. But there are ways to reduce risks and increase the rewards.

The functions outlined above, including matching buyers and sellers, avoiding inappropriate matches, providing pricing and performance information, and mediating disputes, are all part of the standard services of a good broker.

Services for Lenders

COLLATERAL VALUE REPORT

The Turrentine Collateral Value Report is the most reliable and up to date source of bulk prices and trends available. The majority of lenders to the California grape and wine business subscribe to this report, including American Ag Credit, Bank of America, Bank of the West, City National Bank, Comerica Bank, Exchange Bank, First Republic Bank, Silicon Valley Bank, Union Bank of California, Umpqua Bank, and West America Bank. The report is published quarterly, which allows one to stay up to date on the volatile changes in the collateral value of wine in bulk. The fee for a one-year subscription (4 issues) is $950 for a PDF version by email. Subscriptions entitle the subscriber to discounts on the custom evaluations listed below.

CUSTOM EVALUATIONS

As additional support to clients and lenders, Turrentine Brokerage offers a variety of custom evaluations. Below are the three different options we provide:

1. Basic Evaluation: Winery provides list of wines, with gallons of each and percentage of vintage, varietal and appellation. Prices are provided upon the assumption that all of the wines are of good or better quality. The fee for a Basic Evaluation is $550.00

2. Sensory Evaluation: A sample of each wine and a detailed list accompanying the samples including variety, vintage, appellation, and gallons or cases available should be sent to Turrentine Brokerage for evaluation. Prices are based upon the actual quality of each wine. Lenders often request this service annually in order to satisfy examiners. Premium wineries may request this service in the expectation that their wine will justify a higher than average collateral value. The fee for a Sensory Evaluation is $550.00 plus $28.00 per wine tasted.

3. On Winery Site Audit/Evaluation: The winery provides a list of wines and tank samples as above. Turrentine Brokerage personnel visits the winery and spot checks physical inventory against inventory list (bulk &/or case goods). The fee for On Winery Site Audit/Evaluation is $1,700 per 1/2 day and $2,500 for a full day (plus expenses where applicable). Small, local winery evaluations can often be performed within the 1/2-day time frame, including the written report. Larger or more distant wineries generally require a full day.


Apply For An Evaluation!

Subscribe to the CVR!

Steve Fredricks
Steve Fredricks
President/Partner
Brian Clements
Brian Clements
Vice President/Partner
Erica Moyer
Erica Moyer
Broker/Partner Grapes in the Interior and Monterey County
Steve Robertson
Steve Robertson
Broker/Partner Bulk Wine
Audra Cooper
Audra Cooper
Broker/Partner Grapes in the Central Coast
Marc Cuneo
Marc Cuneo
Broker/Partner Bulk Wine
Mike Needham
Mike Needham
Broker Grapes in Napa Valley, Sonoma County, Mendocino County, Lake County and Suisun Valley.
William Goebel
William Goebel
Broker Bulk Wine
Neil Koch
Neil Koch
Broker Bulk Wine
Market Update - April 2017


Steve Fredricks' Prowein &  International Update

Each March the wine world gathers at Prowein, held in Dusseldorf Germany, to market their wares. This year’s event was larger and more impressive than ever; yet even though the event expanded in size, the producers were still turned away because of lack of space. Attending the event affords Turrentine the opportunity to get an update on the wine market from around the world. In order to understand the ‘market’, it is important to understand more than the cost of goods. We were there, in part, to get an update on current trends of quality and style, the balance of worldwide supply and demand, the mood of suppliers from other regions, and their perception of the opportunities and competitive landscape. The commitment to understanding all aspects of the market is why we originally developed and continue to use the Turrentine Wine Business Wheel. After all, a simple understanding of price may not bring clarity on consumer trends, long-term grape supply trends, short-term bulk wine and grape supply, or changing demand for grapes and bulk wine that facilitate good decision making.

Some take-aways from Prowein this year:

  • Wine quality continues to improve from around the world.

  • Wine style continues to evolve and more suppliers are able to match the styles U.S. consumers prefer.

  • Packaging continues to improve and is more similar and universal, making it more difficult to regionally identify old world from new world wines.

  • Supply is more in balance globally and in California.

  • Wine suppliers are more positive than a few years ago.

  • On the marketing and sales side, producers from around the world are looking to sell to buyers that are focused on quality and willing to pay a higher price.
     

As we have been reporting, global supply is more in balance in the short-term because of average to below average crops. Chile and Argentina have now had back to back small crops. Australia had an average crop on smaller acres in 2017. We saw a rebound in yields in 2016 in California with the net result being average for most varieties and an increase in supply of Cabernet Sauvignon and Pinot Noir from the Lodi/Delta. Despite these smaller harvests the overall tighter global supply doesn’t mean there are not bargains out there. Larger than normal crops on select varieties from select regions have created new opportunities for buyers.

Chile: The 2017 crop is down due to poor spring weather and a hot summer resulting in low cluster weights. Chilean growers and producers were hoping for a good crop to maintain successful global placements and continue growth. Grape prices increased from last year and, as a result, bulk wine asking prices and sales prices have increased for all varieties. Argentina is again sourcing a lot of generic red for domestic consumption. Due to the low inventory levels and higher prices, Chileans are concerned about losing placements to Spanish suppliers for bulk exports to Europe and China. The quality of 2017 wines will be better than 2016 and the long-term trends of improving quality and style can be tasted, keeping them competitive in the US market.

Europe: Confidence seems high and the mood is positive amongst wineries that export to the United States. European producers feel good about the sales prices for their wine and the inventory levels they have. As with Chile, the average quality of wine continues to increase along with the percentage of wine that is more consumer friendly. Asking prices for bulk wine in France, Spain and Italy remain steady. The creativity in the ways they are making wine and getting to the market in the US has expanded making them more competitive than ever.

Australia: One sign of an improving Australian wine industry was the return of a number of Australian wineries exhibiting at Prowein. Times are better due to better grape and bulk wine pricing. Their long-term excess supply was balanced out by vineyard removals, average yields per acre, and sales growth in China and other parts of Asia. As harvest ends, bulk inventories from previous years are very low. Although Chardonnay is not in excess, current market prices can make it price-competitive for a buyer to look at Chardonnay from Australia vs. California. There are still opportunities for dry land regional wines like Limestone Coast. In the US, there do seem to be some stirrings of increased interest from retail buyers to expand their offerings of Australian wines.

Argentina: The crop is up from last year, but still not enough to satisfy internal needs for generic red and generic white. They continue to import bulk wine from Chile. There will be 2017 Malbec available with both quality and asking prices higher than 2016. In conversations with San Nicolas Wine Services, their view is that the higher asking prices are driving some clients to look to Chilean Malbec as an alternative.

Besides generally short supply from lower than average harvests, there are other matters keeping upward pressure on price. Argentina continues to struggle with inflation. Last year, the rate of inflation was 40%, but the government hopes to decrease that to around 25% this year. The exchange rate is not favorable either, which deters some global opportunities. 

READ FULL REPORT HERE...


News Archive


Market Update - March 2017
14 March, 2017

The 4.03 million ton 2016 crop is in the rear-view mirror now that the final 2016 California Grape Crush Report has been released, effectively wrapping up a harvest that highlighted a return to long-term average yields per acre in the coast. Because of the difficult coastal 2015 crop, the increases in the overall tons crushed in the Central Coast were only up 4%, and 1% over the five-year average in all of the North Coast despite new plantings coming into production. Another story line from the Crush Report was the increased tons from the Lodi/Delta driven by new acres of Cabernet Sauvignon among other varieties. The Cabernet Sauvignon crop was 28% over the five-year average, and 16% over the five-year average for all varieties in the Lodi/Delta. This increased production is significant since wineries are more confident in using an increasing percentage of wine from the Lodi/Delta for $10.00+ per bottle programs due to new and improved vineyards and winemaking techniques. Due to the volume sourced for $10.00+ per bottle brands, distributors and retailers may have ample selection for in-demand varietals at preferred bottle prices keeping the consumer market competitive.

 
"The way I see it, if you want the rainbow, you gotta put up with the rain." -Dolly Parton

For the first time in recent memory water has been plentiful and California growers in some regions may receive 100% surface water allocations which hasn’t happened in over a decade, however actual figures have yet to be released. Meanwhile, the State Board recently said in a press release, “As glorious as the first half of the season has been, we know that weather can change quickly, and vary depending on where you are, so it is most prudent to wait a bit longer until close of the rainy season to take stock of the statewide situation and decide what to do next.” Time will tell what actual allocations will be, but they appear to be significantly up from recent years.

 

The abundant snowpack and rainfall after years of drought has many growers and wineries expecting the 2017 crop to be above average at this point. The first sightings of bud-break are taking place in the San Joaquin Valley and the Central Coast. This timing is later than last year in California and may help reduce the threat of frost, but growers and wineries will need to monitor any potential future storms as the water could shift from having a positive influence on 2017 crop size to a negative. Regardless, the winter rains have been particularly beneficial for the southern interior and Paso Robles to alleviate many of the accumulated effects of drought and to flush accumulated salts from root zones.

Many coastal wineries are starting the 2017 season with greater inventory following the larger crop last year. However, grape supply of Cabernet Sauvignon, Pinot Noir, Chardonnay and many other varieties all continue to be tight in the coast, especially for the most sought after appellations of Napa Valley, Sonoma County, and parts of the Central Coast which has led to strong spot-market pricing. We have multiple buyers active in the grape markets for Napa Valley and Sonoma County Cabernet Sauvignon and Sonoma County Pinot Noir, the varieties which have had the highest price increases in recent years on the bulk wine and grape markets. This demand has led to an increased number of multi-year grape contracts.

READ FULL REPORT HERE


Grape Crop & Bulk Wine Market Update - July 26, 2016
11 August, 2016

GRAPE CROP REPORT:

from July 26, 2016

NORTH COAST

Written by Mike Needham, Grape Broker

The crop at this point is looking a little bit better than a year ago for most varieties in the North Coast (there are a few exceptions).  Most growers have fewer clusters per vine, but the set is better this year (less shatter).  We are also seeing fewer shot berries in the clusters, from a year ago.  Most cluster weights are heavier than last year but not by much.  So the overall crop is looking fairly average.  For every story of a grower with a nice looking crop there is the neighbor with a below average looking crop, counter balancing each other.

Harvest is almost ready to start.  Sparkling houses might start picking by the last weekend in July in the North Coast, and should be in full swing by the first week of August. This puts the harvest very close to where we started a year ago and 2015 was probably the earliest harvest for most growers and wineries on record.

LODI/DELTA
Written by Erica Moyer, Broker/Partner

The crop is looking about the same as 2015, at best, for Chardonnay, Cabernet Sauvignon, Merlot, Zinfandel.  A lot of small bunches and small/loose bunches.   There are a few outlier vineyards that have strong expected yields, but those vineyards are the exception rather than the rule.

Harvest will begin for “bubbles, blush and rose,” the last week of July beginning of August, then expect to be in full swing.  Will the harvest be compressed with reds coming on early as whites are finishing up????

SAN JOAQUIN VALLEY
Written by Erica Moyer, Broker/Partner

Grape trucks of Pinot Grigio ... READ THE FULL REPORT HERE

 

 

BULK WINE MARKET REPORT:

INTERIOR
Written by Marc Cuneo, Broker/Partner

As harvest gets under way bulk demand remains consistent for quality wines, primarily 2015 Cabernet Sauvignon and Pinot Noir.   In the last few months Buyers have turned their focus from 2015 and 2014 wines to contracts for 2016 and beyond.  Recent sales of 2015 Cabernet Sauvignon have been in the $6.50 to $8 per gallon range.   Recent sales of 2015 Interior Pinot Noir lots have been in the $7 to $8.50 per gallon range.

Interior Chardonnay demand is moderate, which is an improvement and supply actively for sale is moderate.

Sellers would like to clear out tanks of the remaining gallons of older vintage Merlot, Zinfandel, or older style blenders, but those wines are competing directly with newer available gallons of Petite Sirah and Petit Verdot, which are preferred for adding color and intensity to a blend. There continues to be very little bulk demand for dry red or dry white programs at the super value bottle price point.

NORTH COAST
Written by Steve Robertson, Broker/Partner

 

We have seen the usual... READ FULL REPORT HERE


Release of The Turrentine Outlook Issue 16, Providing Insight into the Changing Supply Dynamics of the Wine Business
22 June, 2016

Novato, CA – The Turrentine Brokerage team is proud to announce the release of Issue 16 of The Turrentine Outlook: Forecasts and Strategies for a Competitive Advantage©. The information in The Turrentine Outlook sets a foundation that illustrates the long-term cycles of the market, and is designed to be supplemented with specific advice and strategy for your individual situation. This publication draws upon Turrentine Brokerage’s real world experience and unique supply data to analyze changes in supply and demand for eight key varietals in the major regions across California and internationally. The report also suggests strategy options for a competitive advantage.

Highlights in this issue include:

  • The potential impacts on the wine and grape markets from:
    • The increased volume of wines and grapes sourced from northern interior to compete on store shelves above $10.00 per bottle
    • Consolidation and distribution
    • Land use restrictions and accessibility to water
  • Factors strengthening the market and those weakening the market
  • Supply and demand driven analysis for Cabernet Sauvignon, Pinot Noir, Chardonnay, Merlot, Pinot Grigio, Zinfandel, Petite Sirah and Muscat varieties

Excerpt from Central Coast Chardonnay

“Grapes from the Central Coast, including Crush Districts 6, 7 and 8, account for roughly 25% of the Chardonnay crushed in California and are extremely important because they supply brands covering the full spectrum of price points. The 2015 crop was 31% below 2014, bringing inventories much more into balance in the short-term. The market for 2016 grapes was more active early in the year, especially in the cooler regions of Monterey County and Santa Barbara County.  The bulk market was also more active than in the previous three years.

The current perception of the 2016 crop is for an average crop with early projections based on counts of two clusters per shoot; however, there are singles out there as well. The winter of 2015-2016 provided more water than in recent years, and should be enough to properly farm throughout the 2016 growing season. In the long-term, the political effects from the drought have resulted in increased farming regulations, leading to even more scrutiny on water use, increased farming and development costs, and delays.

It seems likely that consumer demand will continue growing at a healthy clip from $8.00 up to $15.00 per bottle. The competition for consumers purchases in this price-point, however, will also be strong. In particular, it is hard to predict the outcome of the continued and concerted efforts to use more northern interior Chardonnay grapes and wine in order to supply a larger percentage of the Chardonnay sold in this price range. With this competitive development, it is difficult to know if the production of Central Coast grapes as well as the production of Chardonnay from competing regions will surge ahead of demand or if growing demand will match, or even exceed, the growth in supply. Growers will want to redouble their work on quality to help justify the premium paid for cool region Central Coast Chardonnay while still keeping control of costs. Brand owners will want to keep tinkering with the puzzle of how to best deliver stupendous perceived quality to the consumer at a highly competitive price.

The Turrentine Outlook©

The Turrentine Outlook is produced by a team of wine industry veterans with an understanding of both strategic and tactical actions necessary to capture a competitive advantage in the marketplace. This report draws upon a robust pool of information, both proprietary and public, that has been refined and corrected in accordance with expert opinion and real world practice. The Turrentine Outlook delivers data snapshots for eight key varieties by region and forward looking analysis that are not available anywhere else, thus shedding a revealing light on supply dynamics.

Supply and demand is analyzed with the help of multiple graphs including: bearing vs. non-bearing acres and tons crushed, spot market versus district average grape prices, bulk wine availability, collateral values of wines in bulk, tons and values of grapes grown by district, international pricing and estimated price per gallon landed in California duty paid, and Turrentine Wheel dynamics for each variety at various price points.

About Turrentine Brokerage

Turrentine Brokerage, founded in 1973, serves as a trusted and strategic advisor to growers, wineries, and financiers, specializing 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 2,000 growers, this experienced team has negotiated transactions between buyers and sellers valued at more than $2 billion over the last decade. Widely recognized as the leading expert in wine business supply cycles, Turrentine Brokerage provides unique insight into the complex market dynamics that can make or break growers, brands, and financiers.

Contact

To subscribe to The Turrentine Outlook, please visit www.turrentineoutlook.com. For more information, please call Steve Fredricks or Daniel Tugaw.

Steve Fredricks, President (415) 209-9463

Daniel Tugaw, Market Researcher & Analyst (415) 209-9463


International Market Update
12 May, 2016

MOTHER NATURE HOLDS THE HIGH CARDS

Last year, my conversations with our strategic partners around the world centered on when the market was going to turn around and when buyers would need to buy bulk wine again. Today those conversations are about how we are going to find the volume that bulk wine buyers most likely will need. What a difference a year makes!

It is true that consumer sales of value priced wine are still soft, but global supply actively for sale is decreasing and bulk prices are increasing. What happened? The wine business is agriculture, and Mother Nature continues to hold the high cards. In 2015, tons crushed from California's coastal regions were down, anywhere from 20 to 50 percent from 2014 depending on variety and region due to an elongated bloom during inclement weather which resulted in lighter cluster weights.

Internationally, supply has reduced as well and new acres being planted have virtually stopped. In Argentina and Chile, the 2016 harvest is almost complete, but has been plagued by rains and yields per acre are reported to be down 20 to 50 percent. Quality of 2016 wines is a concern, and the large U.S. based brands have already secured any 2015 wines that were for sale. Some wineries have also withdrawn wines from the market. Asking prices have increased for the 2016 wines, and some wineries are reluctant to quote prices until they are finished with harvest to assess inventories.

In Australia, due to perpetual low prices for excess grapes and bulk, growers and wineries have removed around 34,000 hectares since their peak in 2008. Meanwhile, exports of Australian wines have rebounded from a combination of new free trade agreements, increased marketing efforts globally, and weak currency resulting in increased demand for bulk wine. As a result, bulk actively for sale is down and bulk prices are on the rise. The 2016 harvest in Australia is complete and yields per hectare appear to be average and of good quality.

European inventories of bulk wine are also down due to smaller harvests and continued sales growth. 

In summary, bulk inventories around the world are much more aligned to global demand than last year at this time. There are still great import opportunities and choices, but the market is changing. Be proactive and call us for more specific information.

-Steve Fredricks


Selected Recent Sales of Grapes & Wines in Bulk, courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk
06 May, 2016

Bulk Wine

Chardonnay 2015 wine, Lodi, 6,500 gallons at $7.00 per gallon

Cabernet Sauvignon 2015 wine, California, 20,500 gallons at $7.50 per gallon

Merlot 2015 wine, Lodi, 26,300 gallons at $6.50 per gallon

Chardonnay 2015 wine, Arroyo Seco, 4,700 gallons at $12.00 per gallon

Chardonnay 2015 wine, Sonoma County, 4,300 gallons at $15.00 per gallon

 

Grapes

Pinot Noir 2016 grapes, Sonoma Coast, 17 tons at $4,100 per ton

Grenache 2016 grapes, Paso Robles, 10 tons at $1,800 per ton

Pinot Noir 2016 grapes, Santa Maria Valley, 20 tons at $3,700 per ton

 


Selected Recent Sales of Grapes & Wines in Bulk for March 22nd, 2016
22 March, 2016

Bulk Wine

Pinot Noir 2014 wine, Paso Robles, 2,000 gallons at $15.00 per gallon

Merlot 2014 wine, Chalk Hill, 10,400 gallons at $15.00 per gallon

Cabernet Sauvignon 2014 wine, California, 25,000 gallons at $7.25 per gallon

Zinfandel 2014 wine, Lodi, 18,000 gallons at $6.50 per gallon

Cabernet Sauvignon 2015 wine, Paso Robles, 2,000 gallons at $21.00 per gallon

 

Grapes

Chardonnay 2016 grapes, Sonoma Mountain, 60 tons at $2,100.00 per ton

Chardonnay 2016 grapes, Oakville, 55 tons at $2,300.00 per ton

Pinot Noir 2016 grapes, Yorkville Highlands, 55 tons at $2,300.00 per ton

 


New Turrentine Partner
10 March, 2016

Marc Cuneo, a high-energy and high performing Bulk Wine Broker for Turrentine Brokerage has recently gained Partner status. Marc joined Turrentine Brokerage as a Bulk Wine Broker in 2010, bringing industry experience ranging from grower relations to wine marketing. Since joining Team Turrentine, Marc has gained experience with a diverse client list ranging from large wineries to small wineries and negotiants.  Marc has also gained experience with our International partners negotiating successful deals for European and South American wines.  Marc is also a regular speaker on bulk wine market trends at a number of wine industry events. We are excited to have Marc as a partner at Turrentine Brokerage.  


Steve Fredricks, President, will be presenting at the State of the Industry session at this year's Unified Symposium
25 January, 2016

January 27th, 8:30am. You won't want to miss it!  Click here for more details.
You will find all of our grape and bulk wine brokers at Booth #1311Find out how long-term contracts can benefit you and how Turrentine can help you emerge successful from this year's harvest. Whether you're a grower, winery or financier, our goal is for you to come away with beneficial insight into the 2016 harvest. Give us a call to set up an appointment with a Turrentine Broker at the show.

Selected Recent Sales of Wines in Bulk courtesy of Turrentine Brokerage
06 January, 2016

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

Bulk Wine

Pinot Noir 2014 wine, California, 5,000 gallons at $8.00 per gallon

Chardonnay 2015 wine, Monterey County, 19,500 gallons at $13.00 per gallon

Cabernet Sauvignon 2015 wine, California, 5,800 gallons at $7.50 per gallon

Cabernet Sauvignon 2014 wine, Mendocino County, 11,600 gallons at $17.50 per gallon

Cabernet Sauvignon 2014 wine, California, 13,000 gallons at $5.75 per gallon

         


Turrentine Brokerage President Steve Fredricks and Broker Marc Cuneo will be presenting at the 24th Annual Wine Industry Symposium, Tuesday September 22nd.
31 August, 2015

Their presentation is titled, ‘California and Global Supply Update: What is Happening Now and Where Could the Market Go?’.

The event will be held at the Napa Valley Marriott. For more information: http://www.winesymposium.com/wine-industry-financial-symposium/wine-industry-financial-symposium-program/


Selected Recent Sales of Grapes & Wines in Bulk. Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com
20 August, 2015

Bulk Wine

Merlot 2014 wine, Oak Knoll District, 5,200 gallons at $18.00 per gallon

Cabernet Sauvignon 2014 wine, Howell Mountain, 1,600 gallons at $44.00 per gallon

Pinot Noir 2014 wine, Napa Carneros, 5,500 gallons at $22.50 per gallon

Pinot Noir 2014 wine, Mendocino County, 6,400 gallons at $9.00 per gallon

 

Grapes

Pinot Gris 2015 grapes, Paso Robles, 100 tons at $1,200.00 per ton


2015 Crop & Bulk Wine Update from Turrentine Brokerage
03 August, 2015

NORTH COAST
Mike Needham, North Coast Grape Broker

The 2015 season started very early due to above average temperatures. Since then, temperatures have cooled a bit and we are currently tracking pretty similar to last year. It looks like harvest will still start earlier than normal (whatever normal means), but not as early as it appeared earlier this year.

A major change from the last few seasons is that the crop size is very erratic due to the cold spell during bloom resulting in a lot of shot berry and shatter. For the most part, the affected varieties are those that went through bloom later and in some areas bloom extended for nearly a month Cluster counts are above average this year, but due to the poor set and variability from vine to vine; it is hard to quantify an average cluster weight on these vineyards and make a good yield per acre estimate.

Led by the continuing demand for Cabernet Sauvignon, the grape market in the North Coast is currently waking up for certain varieties/areas as buyers are realizing that the crop potential is not what it once was. Overall, we have fewer grapes actively for sale this year than the last couple vintages. Most of this is a function of the longer-term contracts signed since 2012, when the market became extremely short in the North Coast.

This has been a challenging year for growers with varieties that are susceptible to mildew and rot. This latest weather pattern of high humidity is not helping that cause. We can help buyers navigate their way to fruit clean from mildew and rot.

Even if you are unsure of your needs, still call us early to be updated on the opportunities so you won’t miss out on the right grapes for your price point. Don’t be the last to call.

 

CENTRAL COAST   

Audra Cooper, Central Coast Grape Broker/Partner

Erica Moyer, Interior & Monterey County Grape Broker/Partner

Over the weekend of July 18th, the remnants from hurricane Delores left a dusting of showers in Monterey County. In contrast, Paso Robles received an average of 2" and up to 3.5" of rain to Paso, just below 2" in Edna Valley, and a little less in Santa Barbara County. While the rain was welcome, growers and wineries in San Luis Obispo and Santa Barbara County are concerned about botrytis and mildew, at least for the short-term. Click here to see full update including Bulk Wine


Selected Recent Sales of Grapes & Wines in Bulk
15 July, 2015

Bulk Wine

Malbec 2014 wine, Lodi, 5,000 gallons at $7.50 per gallon

Merlot 2013 wine, Paicines, 6,400 gallons at $6.50 per gallon

Cabernet Sauvignon 2014 wine, Alexander Valley, 12,300 gallons at $22.00 per gallon

Zinfandel 2014 wine, Lodi, 7,200 gallons at $5.00 per gallon

 

Grapes

White Riesling 2015 grapes, Paso Robles, 50 tons at $600.00 per ton

Grenache 2015 grapes, Paso Robles, 24 tons at $1,400.00 per ton


Issue 15 of The Turrentine Outlook just released
15 June, 2015

The Turrentine Outlook©, fully updated and published each year in June, provides unique insight into the supply dynamics of grapes and bulk wine. This market intelligence is of critical importance to marketers, brand owners, and grape growers. Forward-looking analysis and data snapshots are provided for key supply factors, including plantings and yields for leading varietals in the major appellations of California. Demand measurements are included for grapes and wines in bulk along with targeted commentary on consumer sales trends for branded casegoods. The analysis for each variety and region contains ‘Strategic Considerations’ for growers, wineries and wine marketers.

Key varieties such as Chardonnay, Cabernet Sauvignon, Merlot, Pinot Grigio and Pinot Noir are explored; however, in a continued effort to provide a great product, analyses of Zinfandel, Petite Sirah and Moscato are again included this year.

The following is a note from the editor in the upcoming issue:

"The community of wine is a lively place. Mother Nature always has some tricks up her sleeves and our old friends, Connie and Conrad Consumer, like to explore new things. Production people sometimes seem to assume that consumers have an obligation to want whatever is in excess. Marketing folk, on the other hand, sometimes act as if supply can be turned on and off like a spigot. And then there are the effects of governmental policy, like the strong dollar, which makes the desirable U.S. market all the more profitable for imports. All of this keeps the wine business interesting--and keeps The Turrentine Outlook: Forecasts and Strategies for a Competitive Advantage relevant as each year unfolds as a unique combination of continuity and change."

-Bill Turrentine
 

Nine Mistakes in Wine
09 June, 2015

With the S&P 500 near an all-time high and the Nasdaq Composite approaching the 5000 mark for the first time since the dot-com bubble, it may feel like investing is easier than ever. It is times like these when paying attention to what not to do becomes crucial.

How do you become a better investor? Learn the basics. Study the masters. Seek out quality advice.

So says a February column in the Wall Street Journal entitled: 'Feeling Certain' and Other Mistakes That Trip Up Investors. The author goes on to name nine common mistakes investors make.

Grapes and wine, of course, are different from passive investments in stocks, bonds, Real Estate and the like. Vineyards obviously require Real Estate but running a vineyard is also a business with a need for great customer service, product quality, marketing and other complications passive investors don't have to deal with.  

Growers and grape buyers play the market constantly because they are always trying to balance inventories in a business where consumers change quickly and vineyards change slowly and at great cost.  

Growers and wineries, however, do often employ strategies that resemble strategies used in the stock and bond markets, including the core principle of diversification.  

In the supply side of the wine business, diversification means working with a variety of grape customers or growers and negotiating a range of contract lengths and pricing mechanisms. So, let's review the nine investor mistakes identified in The Wall Street Journal article, highlighted in red, and see how they might apply to the wonderful world of grapes and wine. 

  1. Feeling Certain.Feeling too certain is obviously a mistake in the wine business, which depends on changing consumers and mysterious Mother Nature, not to mention rigid regulators and finicky financiers. Unpredictability increases the importance of flexibility in your supply situation.
  2. Extrapolating the recent past into the future.  Generals tend to fight the last war and growers and grape buyers tend to do whatever they should have done the previous year. In a constantly morphing market, a strategy based on last year is rarely the right one for the current reality.
  3. People selling financial products on commission. Hey, that’s getting personal! But it is true in wine, as it is in the world at large, that you must make sure the people advising you really have your long-term interest at heart and are providing you with the best data available to make critical decisions.
  4. Feeling smarter after the market rises, and,
  5. Feeling victimized after the market drops.  No one, no matter how smart, will play the market right all of the time.  Which is okay.  All you really need to do is to play the market better than most of your competitors so that you are not stuck with expensive inventory in slow markets and you have ample, cost-effective inventory when the market is hot.
  6. Impatience.  Type A personalities may blow a gasket, but sometimes you have to wait out the market. You cannot make people buy or sell at a reasonable price just because it seems urgent to you. Too much patience, on the other hand, can also be costly. Sometimes bold decisions are necessary.
  7. Letting partisan views guide your investment decisions.  The wine business equivalent to this investor mistake might include emotional commitments that result in blind spots such as an unwillingness to recognize substantial quality improvements in competing regions.
  8. Worrying about things you can’t control.  Currency exchange rates, world-wide crop size, wholesaler consolidation, invasive pests—the wine business is subject to many unknowns. So build flexibility into your plans. Stay informed. Make good use of the spot market for grapes and wines in bulk. And, when you have done these things, relax and play the market as it comes.
  9. Refusing to change your mind when the facts change. Persistence is a virtue but stubbornness is a vice. The wine business has many moving parts and strategies require constant adjustment. It is usually better to make frequent small updates to your plans rather than waiting until major course corrections become unavoidable and urgent—which usually happens just when the market turns against you.

Managing the sale of vineyard production and balancing the inventories of growing brands are disciplines that are essential to wine business success. They require insight, skill, courage, practice and timely advice on current market conditions and long-term trends. Give our grape and wine brokers a call—they will be happy to help you succeed.   - Bill Turrentine


2015 Crop Update
27 May, 2015

What’s happening in the vineyards as harvest approaches? The Turrentine Grape Team (Erica Moyer, Audra Cooper, Mike Needham, Alicia Kump) have highlighted what they are hearing and seeing in the vineyards throughout California.

North Coast

  • Most of the North Coast is in bloom or finished at this point, for the early varieties. 
  • Crop size looks similar to 2014
  • Crop is 2 weeks to 10 days ahead of last year.  Sparkling wine could start picking in mid-July if we keep tracking the same as we have been.
  • There have been isolated spots of frost damage in the North Coast

Sonoma County

  • Chardonnay and Pinot Noir finished with bloom
  • Cabernet Sauvignon in the middle of bloom
  • Earlier red varieties (Merlot, Petite Sirah) over half way through bloom

 Lodi/Delta

  • Vines are happy and healthy.  West of Lodi, some vines got beat up with hail and there were isolated pockets of frost earlier.  But all in all, vines are well into set and holding.
  • Southern Interior off to an early start and looking to an early harvest!  

 

Central Coast

  • Monterey and San Benito Counties came out of the gate early with above normal temperatures but recent cooler temperatures have slowed growth and bloom to a more "normal" season.
  • We are 5 days ahead or on par with last year in the Central Coast, which is still early.

San Luis Obispo and Santa Barbara

  • The crop is looking lighter than very early crop estimates, primarily for Paso Robles reds but also for Santa Barbara County grapes.  That being said, we still expect at least an average crop for Santa Barbara County.  Paso Robles is a little more challenging to gauge as crop estimates are all over the board.  
  • Cabernet Sauvignon could be average to a little on the light side if we do not get decent sizing. 

Cyber Supply from Turrentine Brokerage
18 May, 2015

Thousands of tons of grapes, millions of gallons of wine, in your pocket, on your phone or tablet.

Turrentine Brokerage has renovated its website (Turrentinebrokerage.com), to put the markets for grapes and wines in bulk at your service 24/7.
The site clearly presents market listings, analysis and commentary to help you make the best supply-side decisions, when and how you want.

Turrentine Brokerage's famous Market Update newsletter and individual broker bios are also available on the site. Check it out and put the world of grapes and wines in bulk at your fingertips.

Tell us what you think of our new website. One person will be randomly selected to win a case of Caymus Cabernet Sauvignon wine! Go to www.turrentinebrokerage.com. Just hit the SAY HELLO tab on our website to send us an email.


TURRENTINE BROKERAGE Market Update - March 2015
11 March, 2015

Mother Nature rarely provides the industry with precisely what it needs, but She has been generous in recent years. Not only was the industry short on supply entering the 2012 harvest, which was the beginning of two record harvests, but 2014 was less than 2013 for many wineries that were beginning to fall behind on depletion rates. While there is still an uphill battle on the bulk market to move 2012 and 2013 vintage wine, yields on some challenged varieties on retail shelves, namely Merlot and Zinfandel, were -12% and -16% below long-term averages. Meanwhile, more growing varieties like Cabernet Sauvignon and Pinot Noir were up 11% and 24% over long-term averages, respectively.

 

THE 2014 HARVEST WAS BELOW 2013 ACROSS ALL REGIONS AND NEARLY ALL VARIETIES,
BUT STILL ABOVE THE FIVE-YEAR AVERAGE.

Wineries are still processing their internal information and buying activity both on the grape and bulk wine markets have not moved up or down since the February 10th Preliminary California State Crush Report release. The next agricultural indicator is the counting of clusters per shoot, which could have more sway on market activity.


There are currently over 20 million gallons actively for sale on the bulk market, the most we've had at this time of the year since 2007. With ample supply, buyers have their choice of wines to purchase and good quality lots are being selected first. We are receiving numerous phone calls each day.

The market, even when it seems straight-forward, can provide many unseen challenges and hurdles. Please give us a call to help you buy or sell your bulk wine and grapes today! 

 

Best Practices 

In California, the bulk wine market is an efficient and effective tool for wineries to buy and sell. Wineries send samples to us and in 24 to 48 hours they are in the hands of interested buyers around California and other areas of the US. Due to this efficiency and our extensive network, we negotiate approximately 1,500 individual successful transactions a year. However, one deal every few years does not go correctly. In almost every case in our 40+ years we have been able to help the parties resolve the issue in a sensible manner, especially if best practices are followed by both buyer and seller.

 

We write in this newsletter and speak often about what sets our service apart from other brokers and how the more closely you work with us-the greater the benefits to you and your winery, but there are also some best practices and a few simple tips that you can do to increase your success in working to buy and sell bulk wine.

 

The Summary for Sellers:

  1. Don't neglect it; improve it
  2. Get the wine ready first
  3. Prepare samples that sell (provide us with all of the information to properly label the wine for a buyer to buy)
  4. Think customer service
  5. Pick the best broker

These are incredibly valuable tips that, if followed, can result in improved returns for the sellers. Read the entire description for each point above here.

 

The additional list of best practices is for after the sale is complete. Following these tips can help insure that issues do not arise, and if they do, you have the objective information to resolve them.

  • Follow the details on the Sale Memo
  • Send properly prepared and labeled shipment confirmation samples
  • Perform lab analysis on the wine prior to loading
  • Request information from the Buyer for any specifics of temperature or SO2 adjustment before loading
  • Inspect the truck before loading
  • Pull samples from the truck for hold back after loading
  • Invoice as soon as the weight is known and volume is determined

For Buyers:

  • Perform laboratory analysis on the samples selected to purchase
  • Send a loading protocol
  • Request properly labeled shipment confirmation samples
  • Perform lab analysis on the shipment confirmation samples vs. the samples selected for purchase
  • Ship on-time
  • Perform lab analysis on the wine on the truck vs. the shipment confirmation samples
  • Do not unload the wine if there is an issue-call us ASAP!

We will be there to help resolve the issue. If best practices were used by both parties the issue can be resolved in a few phone calls. If they were not-it may take longer.

Sometimes people say that dealing with the extra samples and analysis is difficult and not worth it. Think of it as insurance. A little bit of effort can pay big dividends if by some chance you are in that very small percentage of deals where an issue arises. Companies that instill 'Best Practices' have the best reputations, get the best deals, and usually receive the best returns when selling wine in bulk because people want to deal with them.


Selected Recent Sales of Grapes & Wines in Bulk. Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com
26 February, 2015

Bulk Wine

Zinfandel 2013 wine, Napa Valley, 5,900 gallons at $12.00 per gallon

Syrah 2014 wine, Central Coast, 6,000 gallons at $10.00 per gallon

Pinot Noir 2014 wine, Arroyo Seco, 6,500 gallons at $12.00 per gallon

Zinfandel 2013 wine, Dry Creek Valley, 6,400 gallons at $11.50 per gallon

Chardonnay 2014 wine, Monterey County, 26,000 gallons at $8.25 per gallon

Chardonnay 2014 wine, Napa Carneros, 7,000 gallons at $15.00 per gallon

Sauvignon Blanc 2014 wine, Napa Valley, 13,000 gallons at $9.00 per gallon

 

Grapes

Chardonnay 2015 grapes, Napa Valley, 45 tons at $2,400.00 per ton

Cabernet Sauvignon 2015 grapes, Dry Creek Valley, 20 tons at $2,700.00 per ton

Cabernet Sauvignon 2015 grapes, Sonoma Valley, 44 tons at $2,900.00 per ton


TURRENTINE BROKERAGE Market Update
23 January, 2015

The understanding of short and long-term supply dynamics are essential to success in the wine industry. It is not a mystery that we stress both. At the Unified Wine Symposium, you will undoubtedly hear several trends, but it is worth talking to Turrentine Brokerage to see how your individual supply situation can be maximized in the long-term. 

For the first time since 2006, more than 14 million gallons of wine for sale in bulk has been carried over from prior vintages; and for the first time since 2009, large quantities of multiple vintages of most varieties are for sale. However, comparing 2014 to 2009, Turrentine Brokerage has had a 60% increase in the total number of sales of wines in bulk and the transactions have been more focused on smaller quantities of higher quality wines. While there have been more middle and high end buyers, there have been few opportunistic buyers for the large volumes of Interior varietals available at low prices. 

 

Cabernet Sauvignon

Napa Valley/Sonoma County

  • Bulk Supply- Low, number of gallons actively for sale is down
  • Bulk Demand- High, recent sales for 2013 Napa between $28 to $32, sub-appellations between $38 and $42
  • Grape Demand- Remains strong with buyers a little less aggressive than last year
  • Planting- Few open acres being planted and some redevelopment.

Other North Coast

  • Bulk Supply- Low, starting to see some 2014's listed
  • Bulk Demand- Steady with recent sales for 2013 around $17 to $19
  • Grape Demand- Steady with buyers out early for resigns
  • Planting- Increased supply from newly bearing acres will produce more in 2015

Central Coast

  • Bulk Supply- 2013 decreasing; 2014 wines beginning to be listed
  • Bulk Demand- Slow demand with increasing quality standards; recent sales $12 to $14 for good quality lots
  • Grape Demand- Slow
  • Planting- About 3,500 new acres that will add significant tonnages annually

California Appellation

  • Bulk Supply- Increasing. Plenty of both 2013 and 2014 on the market
  • Bulk Demand- Increasing quality standards; recent sales in the $5 to $8 range
  • Grape Demand- Slow
  • Planting- New acres went in the last few years and roughly 6,000 non-bearing acres will add to supply over the next couple of years

 

Chardonnay

Sonoma County

  • Bulk Supply- V14 wines beginning to be listed
  • Bulk Demand- Steady demand, but less than supply, quality standards increasing; recent sales in the $13 to $15 range
  • Grape Demand- Steady but slower than last year at this time

Central Coast

  • Bulk Supply- Good supply and increasing volumes actively for sale
  • Bulk Demand- Less than supply, quality standards are up, recent sales in the $8 to $9 range
  • Grape Demand- Slow

 

Pinot Noir

Sonoma County

  • Bulk Supply- Steady with 2013 and 2014 wines available.
  • Bulk Demand- Steady with increasing quality standards and price sensitive for mid-range programs; recent sales in the $17 to $19 range
  • Grape Demand- Steady, some buyers out early on resigns but focused on the value vineyards for mid-range programs
  • Planting- Some increased tons from newly bearing acres in 2015

Central Coast

  • Bulk Supply- Increasing due to another good crop in 2014; wines from Monterey County and Santa Barbara available
  • Bulk Demand- Steady, but focused on quality wines for mid-range programs or from buyers looking to upgrade a California appellation wine, recent sales or high quality lots in the $14 to $16 range
  • Grape Demand- Slow

California Appellation

  • Bulk Supply- Increasing from a good 2014 crop, but choices are still limited; competing with some of the supply offered for sale from the Central Coast
  • Bulk Demand- Steady with increasing quality standards; recent sales in the $6.50 to $7.50 range
  • Grape Demand- Steady with very few grapes available
  • Planting- Some increase in tons but planted under contract and not available

 

Merlot

Napa Valley, Sonoma County, and Other North Coast

  • Bulk Supply- Steady
  • Bulk Demand- Steady; still riding coat tails of Cabernet Sauvignon; recent sales in the $8 to $10 range for North Coast, $15 to $18 for Napa and Sonoma
  • Grape Demand- Slow

Central Coast and California Appellation

  • Bulk Supply- New gallons from a good crop in 2014
  • Bulk Demand- Very low, supply greatly exceeds demand
  • Grape Demand- Very low

 

Within the context of the overall market, every grower and brand owner faces his or her unique supply and demand challenges. Contact our knowledgeable team of grape and bulk wine brokers today to avoid pitfalls and to make use of market conditions to achieve your goals.

 

 


Neil Koch Joins Turrentine Brokerage
16 December, 2014

Turrentine Brokerage, California’s leading broker of wine grapes and wines in bulk, is pleased to announce that a new broker has joined its growing team. Neil Koch (rhymes with scotch) grew up among the vineyards and wineries of Napa Valley. He graduated from Vintage High School and studied enology and viticulture at both Napa Community College and Fresno State University. He worked in production for Seavey Vineyards and Bryant Family Vineyard and became enologist and cellar master at Lewis Cellars. Then he moved to the oak side of the business, selling barrels in Northern California and Washington state for Mistral Barrels, Bouchard Cooperage and Seguin Moreau.

Neil has joined the Turrentine bulk wine brokerage team, working mainly with clients in the North Coast and Northern Interior regions. Neil lives in Walnut Creek and is an avid cyclist. He can be reached at Turrentine Brokerage’s headquarters in Novato: 415-209-9463.


Selected Recent Sales of Wines in Bulk
03 December, 2014

  • Cabernet Sauvignon 2012 wine, Napa Valley, 7,700 gallons at $29.00 per gallon
  • Petite Sirah 2014 wine, California, 19,500 gallons at $7.50 per gallon
  • Merlot 2013 wine, North Coast, 12,500 gallons at $6.50 per gallon
  • Muscat 2014 wine, California, 6,400 gallons at $4.50 per gallon
  • Zinfandel 2013 wine, Lodi, 13,000 gallons at $5.50 per gallon
  • Sauvignon Blanc 2014 wine, Lake County, 6,400 gallons at $7.50 per gallon
  • Cabernet Sauvignon 2013 wine, Napa Valley, 4,700 gallons at $26.00 per gallon

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


Not The Hard Way - an article by Bill Turrentine
17 November, 2014

I often take a back route home from work, winding through the West Marin countryside. As the autumn days grow shorter, it is already getting dark as I make my way past vineyards and dairies and through redwood groves. I know the road well and could easily com plete the twilight journey without turning on my headlights. But why would I? If I drove without lights I could probably make it safely forty-nine out of fifty times. Sooner or later, however, I would fail to see a deer or a large branch in the road. I'd feel pretty stupid, especially as I tried to explain to my wife what happened to the car - and to the poor deer. 

So it is when buying and selling grapes or wines in bulk. You may know every curve in the grape and wine business but nevertheless it's only prudent to switch on the best headlights that you can find and illuminate the unpredictable factors which will, sooner or later, intrude on your path.

Turrentine Brokerage is happy to serve as your "headlights" in the markets for grapes and wines in bulk. Those companies which buy and sell all the time and know every bend in the road, are usually the ones who most appreciate our function of shedding light on the long-term trends, the current market and the details of their particular transactions. These clients know the markets as well as anyone in the business and could get safely through their grape and bulk wine transactions much of the time. They are wise enough to know, however, that there are always things in a changing market that they don't know and they would like to learn those things - but not the hard way.

So, Turrentine Brokerage is not merely an efficient way to make the most connections and document transactions; we are also an early warning system against the unexpected, against the equivalent of deer and branches in the road. You could do grape and bulk wine deals without this illumination - but why would you?

-Bill Turrentine


California Bulk Wine Market Update for Oct. 30, 2014
31 October, 2014

Market Update by Turrentine Brokerage - Oct. 30, 2014

Take a look at the three charts below for Cabernet Sauvignon, Chardonnay and Pinot Noir, which compare 2014 tons crushed (estimates) and current bulk inventories to the situation last year at this time. The following charts illustrate, at a glance, the dynamics of the grape and bulk wine markets coming out of the 2014 harvest. Yields per acre appear to be generally down from last year, but an increase in productive acres will help boost both interior and Central Coast tonnages. Quality appears to be good for the third consecutive year, which could increase pressure on the nearly 4 million gallons of 2012 wine available on the bulk market.

Cabernet Sauvignon  -  Current situation compared to last year

 

2014 Est. Tons Crushed

Bulk Inventories

Bulk Demand

Napa Valley

Strong

Sonoma County

Strong

Other North Coast

Strong

Central Coast

Moderate

Northern Interior

Weak to Moderate

Southern Interior

 

Cabernet Sauvignon volume crushed in the North Coast appears to be smaller than last year, but still above historical averages. Many wineries were happy to take in Cabernet tonnage in excess of contract maximums in each of the past three vintages, reflecting strong consumer demand for bottles priced above $15.00. Yields are lighter in Paso Robles, but increased tons in Lodi and Monterey may offset this reduction—at least for some brands.

Chardonnay  -  Current situation compared to last year

 

2014 Est. Tons Crushed

Bulk Inventories

Bulk Demand

Napa

Moderate

Sonoma

Moderate

Other North Coast

Weak

Central Coast

Weak

Northern Interior

Weak

Southern Interior

 

The Chardonnay crush also appears smaller than last year but still above average. Bulk market demand for Chardonnay, however, continues to drop since last year in the wake of three large harvests. Strong yields in Lodi, the Delta, and Monterey may make up for lower yields in southern interior Chardonnay, which suffered from poor water quality and extended heat. Bulk inventories continue to rise, but remain well short of 2009 levels, when a large harvest coincided with a flood of Australian Chardonnay.

Pinot Noir  -  Current situation compared to last year

 

2014 Est. Tons Crushed

Bulk Inventories

Bulk Demand

Napa

Moderate

Sonoma

Moderate

Other North Coast

Moderate

Central Coast

Weak

Northern Interior

Weak

Southern Interior

The combination of multiple years of remarkable yields and increased production from newly bearing acres in key regions has provided beaucoup Pinot Noir. Consumer sales are strong, but pricing is competitive, resulting in lower spot market grape prices in most areas for the 2014 harvest. Bulk demand has also dropped from last year while supplies have ballooned from 100,000 gallons in 2011 to the current level of 1.1 million gallons, mostly from the Central Coast and Sonoma County.


Selected Recent Sales of Grapes & Wines in Bulk, courtesy of Turrentine Brokerage
07 October, 2014

The leading broker of premium grapes and wines in bulk. 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Zinfandel 2013 wine, Lodi, 16,000 gallons at $4.00 per gallon

Merlot 2013 wine, Napa Valley, 6,500 gallons at $14.50 per gallon

Chardonnay 2013 wine, Russian River, 3,200 gallons at $9.50 per gallon

 


Looking for a stellar performer to join our team
05 September, 2014

Turrentine Brokerage is looking for a stellar performer to join our high-performance team.  This is a great opportunity for someone who enjoys building profitable, long-term relationships with key players in the supply side of the wine business. The right candidate will have great people skills, lots of wine business knowledge, attention to detail and a willingness to always put the client's interest first.  If you or someone you know may be the right person for this exciting position at the heart of wine business trends, send an email to: Steve@turrentinebrokerage.com.  All inquiries are held in the strictest confidence. Click here for the detailed job description.


Selected Recent Sales of Grapes & Wines in Bulk
19 August, 2014

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

Bulk Wine

Cabernet Sauvignon 2013 wine, Rutherford, 12,700 gallons at $35.00 per gallon

Cabernet Sauvignon 2013 wine, Alexander Valley, 2,000 gallons at $20.00 per gallon

Merlot 2012 wine, Chalk Hill, 3,700 gallons at $13.00 per gallon

Pinot Noir 2013 wine, California, 25,000 gallons at $6.50 per gallon

Cabernet Sauvignon 2012 wine, Lodi, 12,500 gallons at $5.75 per gallon

Cabernet Sauvignon 2013 wine, Napa Valley, 9,500 gallons at $29.00 per gallon


Supplier Spotlight, Turrentine Brokerage on Cutting Edge of Industry Expertise
01 August, 2014

Turrentine President Steve Fredricks doesn’t mince words when it comes to having confidence in his company.

“With more than 41 years in this business, we know the supply side of the wine business,” Fredricks asserts. “The complexities in the marketplace can be confusing and create some real bumps in the road. Our job is to iron out those bumps and help all parties find a reasonable way to move forward.”

Turrentine Brokerage has been helping buyers and sellers of wine grapes to navigate the choppy waters of the industry marketplace since it was founded in 1973. At that time, California was crushing one million tons of grapes per year. That number has grown exponentially – to nearly four million – and with that growth came enormous fluctuations and uncertainties.

Steve Fredricks, Turrentine

Turrentine President Steve Fredricks

“In the wine business there are a lot of moving parts,” Fredricks explains. “You have to look at bearing and non bearing acreage, not just from totals in the state, but region by region. You have to know about a Napa versus a District 12 Cabernet Sauvignon, or a Sonoma County versus a Lodi Chardonnay.”

Arming their customers with relevant industry knowledge and giving them the critical foundations to create solid business partnerships is what Turrentine does best.

“It’s important to look at the market as a whole,” Fredricks attests. “For instance, if I’m selling Chardonnay for $9 a bottle, where is the supply that will support growth of that price point? What’s the spot market pricing for grapes right now? For bulk wine? If Paso Robles is increasing its acreage of Cabernet today, who will be the buyers four years from now? Understanding both long-term and short-term cycles is the basis for good decision-making.”

In addition to ongoing client consultation, Turrentine Brokerage produces an annual, comprehensive industry report called The Turrentine Outlook. The publication contains up-to-date, global market analysis for leading varietals such as Chardonnay, Pinot Grigio, Cabernet Sauvignon, Merlot and Pinot Noir. Fredricks notes that this year’s report includes Zinfandel, Petite Sirah and Muscat varietals as well.

“When they have that knowledge, that type of essential information, our customers have the ability to be ahead of the curve and position themselves successfully into the future,” Fredricks affirms.

Contact Information
For a copy of the latest Turrentine Outlook and more information on Turrentine Brokerage services, please visit www.turrentinebrokerage.com

                  

Send Me Info

 


Selected Recent Sales of Grapes & Wines in Bulk
07 July, 2014

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

Bulk Wine

Chardonnay 2013 wine, Russian River, 10,000 gallons at $13.00 per gallon

Cabernet Sauvignon 2013 wine, Lodi, 19,200 gallons at $6.75 per gallon

Malbec 2013 wine, Napa Valley, 3,300 gallons at $26.00 per gallon

Dry Red 2013 wine, California, 25,600 gallons at $4.00 per gallon

Chardonnay 2013 wine, Sonoma County, 11,500 gallons at $9.25 per gallon

Chardonnay 2013 wine, Napa Carneros, 13,000 gallons at $14.00 per gallon

Zinfandel 2013 wine, Lodi, 12,000 gallons at $6.00 per gallon

 

Grapes

Sauvignon Blanc 2014 grapes, Alexander Valley, 85 tons at $1,550.00 per ton

Syrah 2014 grapes, Mendocino County, 140 tons at $1,550.00 per ton

Merlot 2014 grapes, Alexander Valley, 80 tons at $1,700.00 per ton

Cabernet Sauvignon 2014 grapes, Sonoma Mountain, 15 tons at $2,800.00 per ton


Turrentine in the News: Forecasts Shortage of Sonoma Cab
18 June, 2014

Steve Fredricks, President of Turrentine Brokerage was recently interviewed by Paul Franson of Wines & Vines. Steve discusses the latest publication of the Turrentine Outlook in an article entitled, “Turrentine Forecasts Shortage of Sonoma Cab”… Read the entire article.

 

 

 

 


Recent Sales of Grapes & Wines in Bulk for June 2, 2014
03 June, 2014

Selected Recent Sales of Grapes & Wines in Bulk for June 2, 2014.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 

Bulk Wine

 

Petite Sirah 2013 wine, Livermore, 13,000 gallons at $8.50 per gallon

 

Chardonnay 2013 wine, Napa Carneros, 2,600 gallons at $15.00 per gallon

 

Cabernet Sauvignon 2013 wine, Red Hills, 7,500 gallons at $19.00 per gallon

 

Cabernet Sauvignon 2012 wine, Stags Leap District, 3,500 gallons at $41.00 per gallon

 

Chardonnay 2013 wine, Monterey County, 23,900 gallons at $7.75 per gallon

 

Grapes

 

Chardonnay 2014 grapes, Alexander Valley, 30 tons at $1,920.00 per ton

 

Merlot 2014 grapes, Mendocino County, 25 tons at $1,300.00 per ton

 

Chardonnay 2014 grapes, Mendocino County, 300 tons at $1,150.00 per ton

 

 


Recent Sales of Grapes & Wines in Bulk for May
23 May, 2014

Selected Recent Sales of Grapes & Wines in Bulk for May 21, 2014.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com: 

Bulk Wine

 

Petite Sirah 2012 wine, Paso Robles, 5,000 gallons at $11.00 per gallon

 

Sauvignon Blanc 2013 wine, Napa Valley, 6,000 gallons at $9.00 per gallon

 

Zinfandel 2012 wine, Mendocino County, 8,000 gallons at $8.50 per gallon

 

Cabernet Sauvignon 2013 wine, Lodi, 13,000 gallons at $7.50 per gallon

 

  

Grapes

 

Pinot Noir 2014 grapes, Napa Carneros, 28 tons at $2,900.00 per ton

 

Zinfandel 2014 grapes, Dry Creek Valley, 38 tons at $2,400.00 per ton

 

Pinot Noir 2014 grapes, Monterey County, 150 tons at $1,700.00 per ton


Selected Recent Sales of Grapes & Wines in Bulk
08 May, 2014

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

Bulk Wine

Cabernet Sauvignon 2013 wine, California, 16,000 gallons at $7.50 per gallon

Cabernet Sauvignon 2013 wine, Mendocino County, 16,700 gallons at $18.50 per gallon

Petite Sirah 2013 wine, Lodi, 6,400 gallons at $7.75 per gallon

Cabernet Sauvignon 2013 wine, Oak Knoll District, 10,400 gallons at $28.00 per gallon

Pinot Grigio 2013 wine, Russian River, 3,000 gallons at $10.00 per gallon

Cabernet Sauvignon 2013 wine, Paso Robles, 7,500 gallons at $14.00 per gallon

Cabernet Sauvignon 2013 wine, Central Coast, 2,400 gallons at $14.00 per gallon

 

Grapes

Pinot Noir 2014 grapes, Monterey County, 25 tons at $2,000.00 per ton

Gewurztraminer 2014 grapes, Russian River, 30 tons at $1,650.00 per ton

Sauvignon Blanc 2014 grapes, Alexander Valley, 44 tons at $1,720.00 per ton

Pinot Noir 2014 grapes, Sonoma Coast, 88 tons at $3,200.00 per ton

Pinot Noir 2014 grapes, Russian River, 12 tons at $3,900.00 per ton

Merlot 2014 grapes, Dry Creek Valley, 70 tons at $1,700.00 per ton


Voted 2014 Best Wine/Grape Broker
07 April, 2014

Striving For Excellence

For three years in the late 70s, legendary Champagne winemaker, Guy Devaux, employed Turrentine Brokerage in a secret project to sample Pinot Noir, Chardonnay and Pinot Blanc grapes from various regions of California and Oregon for the production of luxury class sparkling wine. This complicated and fascinating project eventually became Mumm Napa Valley. After the winery was built and had finished its first crush, Guy invited my wife and me to a dinner at the winery, which was organized to recognize key contributors to the winery's success, including the architect and contractor, the winemaking team and the marketing team. After these folks were commended and applauded, Guy began to describe someone who had diligently labored in the shadows for several years to help them figure out the best regions and sources of grapes to achieve the product they wanted to make. As he spoke, I realized that what he was saying could apply to me and as he continued it became clear that he was in fact talking about me. I literally felt my ears tingle with interest and joy at the recognition!

Some of our clients have recently made our ears tingle through Vineyard and Winery Management magazine. Based on the magazine's survey of the industry, with nearly 1,100 responses, Turrentine Brokerage has been named the best grape and bulk wine broker for 2014. We appreciate the recognition and consider it a good opportunity to revisit the question: What does excellent service look like from our clients' point of view?

Clients have told us that excellence in grape and bulk wine brokerage consists of:

  • Knowledge of the possible pitfalls and dependable help in avoiding them  
  • Accurate and unbiased advice on the current market, based on many transactions and a long history
  • Personal service and an energetic staff who respond quickly to client needs and inquiries
  • The ability to add value with creative solutions
  • Attention to detail which helps deals go smoothly
  • Experience and skill at mediating disputes
  • An understanding of the powerful, long-term supply cycles that can often determine success or failure in the wine business

Our goal is to provide excellent service to our clients, service that helps clients take advantage of opportunities, avoid problems and achieve a competitive advantage in a challenging business. 

-Bill Turrentine

 


Turrentine Releases Recent Sales of Grapes & Wines in Bulk for April 1, 2014
01 April, 2014

Selected Recent Sales of Grapes & Wines in Bulk for April 1, 2014.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk.

 

Bulk Wine

Chardonnay 2012 wine, Lodi, 6,400 gallons at $5.50 per gallon

Pinot Noir 2013 wine, Lodi, 6,500 gallons at $8.00 per gallon

Dry Red 2013 wine, California, 13,000 gallons at $3.50 per gallon

Cabernet Sauvignon 2013 wine, Sonoma County, 16,200 gallons at $20.50 per gallon

Petite Sirah 2013 wine, Lodi, 13,000 gallons at $7.75 per gallon

 

 

Grapes

Chardonnay 2014 grapes, Russian River, 100 tons at $2,100.00 per ton

Cabernet Sauvignon 2014 grapes, Mendocino County, 30 tons at $1,850.00 per ton

Chardonnay 2014 grapes, Sonoma Carneros, 60 tons at $2,100.00 per ton

 

 Contact Turrentine:

 Phone:415-209-9463

 www.turrentinebrokerage.com

 

 

 

 

 

 

 

 

 

 

 

 

 


Drought, Frost, Competition and Other Discontents: Dodging the bullets so you can grasp opportunities
26 February, 2014

Sometimes the light’s all shinin’ on me
Other times I can barely see
Lately it occurs to me
What a long, strange trip it’s been

The Grateful Dead, of course, must have been singing about the long, strange trip of the wine business. They were singing about hot markets and cold markets, about big crops and small crops, about rain and drought.  

I was reminiscing about the strange wine business journey with a longtime grower client recently over lunch at Willi’s and he said something that surprised me. He said that the single most valuable thing I have done for him over the years was to expand his radar screen to help him detect potential problems before they bit his head off.

I argued, on the contrary, that the most important thing I had done for him was to identify ... read the entire article.


Turrentine winegrape crush report, the experts explain the market impacts
10 February, 2014

 

Second Consecutive Record Winegrape Harvest,
Experts Explain Market Impacts

by Turrentine Brokerage
February 10, 2014

For Immediate Release

Novato, CAThe California Department of Food and Agriculture’s Preliminary Grape Crush Report for 2013 has been released.  It is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2013 harvest. The Crush Report provides growers and wineries insight into the inventory position for the California wine business as a whole, and influences market dynamics for the current bulk wine market as well as the upcoming 2014 harvest.

Typically, the Crush Report is a fantastic opportunity for buyers and sellers alike to reflect on the past year, assess supply and demand, and develop a strategy moving forward.  This year, however, there weren’t any major surprises and wineries and growers are keeping their eyes focused on the road ahead to plan strategically for 2014 not knowing the full extent of drought on crop size.

The Crush Report shows that the total 2013 California wine grape crop weighed in at 4.23 million tons.  Similar to 2012, the 2013 growing season was nearly ideal throughout the state, allowing for increased yields per acre.  This was especially true in the North Coast, in particular, Sonoma County Pinot Noir and Chardonnay. In the Northern Interior, Zinfandel grapes continue to transition from blush wine to red wine.  Paso Robles and the Southern Interior suffered from extreme heat which limited production for early varieties like Pinot Grigio.  This record harvest stretched capacity to its fullest, putting downward pressure on prices for late season grapes and on some early bulk market sales.

About Turrentine Brokerage
Turrentine Brokerage, founded in 1973, serves as trusted and strategic advisors to growers, wineries, and financiers and 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 2,000 growers, this experienced team has negotiated transactions between buyers and sellers valued at more than $2 billion over the past decade.

Turrentine Brokerage is available to provide comment and analysis on this report and its probable impact on growers, wineries and consumers.  Turrentine Brokerage will have its experienced team of grape and wine brokers and analysts available all day Monday, February 10th and throughout the week for comment and questions.

Contact

Brian Clements

Vice President

(707) 495-8151

Grapes throughout CA, especially Napa, Sonoma, Mendocino & Lake Counties

Steve Fredricks

President

(415) 847-0603

Grapes and bulk wine throughout CA and global import/export

Erica Moyer

Grape Broker

(209) 988-7334

Grapes from the San Joaquin and Sacramento Valleys

Audra Cooper

Grape Broker

(805) 400-9930

Grapes from the Central Coast

Mike Needham

Grape Broker

(707) 849-4337

Grapes from the North Coast

 

Key Insights by Region

General/Statewide

“For the second consecutive year, California produced record tonnage for winegrapes, weighing in at 4.23 million tons—the equivalent of 740 million gallons.  However, the specific tonnage by varietal in each region is more important.  For example, 50% of the increase over last year’s total is attributed to Muscat varieties from the southern San Joaquin Valley.” –Steve Fredricks, President

“Typically, the Crush Report is a fantastic opportunity for buyers and sellers alike to reflect on the past year, assess supply and demand, and develop a strategy moving forward.  This year, however, there weren’t any major surprises and industry drivers are keeping their eyes focused on the road ahead to strategically avoid the obstacles which 2014 could present, namely the drought.” –Brian Clements, Vice President

Napa Valley

“Napa Valley Cabernet Sauvignon, while setting a district record for crop value, did not sacrifice on quality.  A long, moderate growing season allowed grapes to continue to size right up until harvest.” –Mike Needham, North Coast Grape Broker

“As expected, another record price for Napa Valley Cabernet Sauvignon was reached in 2013.  The crop value was up 7% and reached an average price of $5,423 per ton.” –Mike Needham, North Coast Grape Broker

 “As a region, Napa Valley had a great season.  Both growers and wineries were blessed with high quality grapes and growers were blessed with increasing prices being paid from the previous year.” –Mike Needham, North Coast Grape Broker

“The total Chardonnay crop, up 3% from 2012 and 17% above the five-year average, finally broke the all-time record set in 2005. Cabernet Sauvignon, on the other hand, was up 5% from 2012 and 25% above the five-year average, fell 20,000 tons short of the all-time record set in 2005.  Chardonnay was actually flat or down a little in the Interior regions and up in the North and Central Coast; Cabernet Sauvignon was up in all major regions, except – ironically – Napa Valley and Sonoma County, where demand continues to be strong.” –Brian Clements, Vice President

Sonoma County

History tells us that when we have two large harvests in a row, the markets soften.  In 2013, and moving into 2014, activity has remained relatively strong.” –Brian Clements, Vice President

“We can say that Cabernet Sauvignon is almost ‘bullet proof’.  Although Sonoma County tons crushed dropped to 43,730 tons, it is still the 3rd largest crop in history and the grape market will continue to be strong for 2014.” –Brian Clements, Vice President

“2013 Chardonnay was 8% larger than 2012 in Sonoma County.  Despite two large harvests, wineries are continuing to look for additional supply on the bulk and grape market.” –Mike Needham, North Coast Grape Broker

“Wineries and growers experienced another record crop from Sonoma County Pinot Noir, up 3% from 2012. At the same time, we saw district average price rise 4% to the second highest ever paid at $3,095 per ton. What is good news for wineries and consumers is that the volume comes when needed and the wines are exceptional.” –Brian Clements, Vice President

“2013 Pinot Noir was the second large crop in a row for Sonoma County, which is good news for wineries and growers to help satisfy the consumers growing demand for high quality Pinot Noir.” –Mike Needham, North Coast Grape Broker

North Coast

“The coastal regions of California helped produce a second record crop without sacrificing quality. This couldn’t have come at a better time with retail sales above $10.00 showing very strong growth.” –Brian Clements, Vice President

Central Coast

“The regions of the Central Coast of California produced a second record crop without sacrificing quality. This couldn’t have come at a better time with retail sales above $10.00 showing very strong growth.” –Audra Cooper, Central Coast Grape Broker

“As expected, and despite the lack of rainfall, the 2013 Cabernet Sauvignon crop in District 8, primarily Paso Robles, was slightly larger than last year. For the third year in a row the district average price increased, hitting a record high this century of $1,356 per ton.” –Audra Cooper, Central Coast Grape Broker

“2013 was a good year all around for San Luis Obispo and Santa Barbara County Pinot Noir. Increased yields helped set a District 8 record for tons crushed without sacrificing quality and yet the district average price remains relatively unchanged.  This increased supply is great for the Central Coast to help satisfy growing consumer demand for high quality Pinot Noir.” –Audra Cooper, Central Coast Grape Broker

Lodi

“Increases in Cabernet Sauvignon production from California’s Central Valley were from new acres planted in the last few years and new acres coming into full production, which is welcome news as consumer demand continues to grow at a healthy rate above $9 per bottle.” –Erica Moyer, Interior Grape Broker

“Monterey experienced a perfect summer season resulting in the second largest crop for Chardonnay and a record crop for Pinot Noir.” –Erica Moyer, Interior Grape Broker

“Prices for the Interior came off the peak from 2012, except for Pinot Grigio.  Most notably, prices were down for Lodi Zinfandel and Lodi Merlot, down 13% and 8%, respectively.  This is due to tonnage in excess of the contract selling at half or less of the contracted price, unlike 2012, when all tonnage, including excess tons were purchased at contracted prices.” –Erica Moyer, Interior Grape Broker

“Pinot Grigio production was down 9% at a time when Pinot Grigio consumer demand is continuing to grow at a healthy rate. Most likely, production was down to extended heat in the southern interior.” –Erica Moyer, Interior Grape Broker

                                    


MEDIA ADVISORY: Release of Wine Grape Crush Report Reveals a Second Consecutive Record Harvest, Experts Explain Market Impacts
06 February, 2014

MEDIA ADVISORY

 

Release of Wine Grape Crush Report Reveals a Second Consecutive Record Harvest, Experts Explain Market Impacts

 

 

CONTACT:       Steve Fredricks, President / Partner: (415) 847-0603: specialty: grapes and bulk wine throughout California and around the world

                          Brian Clements, Vice President / Partner: (707) 495-8151: specialty: grapes throughout California, especially Napa, Sonoma, Mendocino and Lake Counties

                          Erica Moyer, Broker / Partner: (209) 988-7334: specialty: grapes from the San Joaquin and Sacramento Valleys and the Central Coast

                          Audra Cooper, Broker / Partner: (805) 400-9930: specialty: grapes from the Central Coast

 

WHAT:             The California Department of Food and Agriculture’s Preliminary Grape Crush Report for 2013 is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2013 harvest. The Crush Report provides growers and wineries insight into the inventory position for the California wine business as a whole, and influences market dynamics for the current bulk wine market as well as the upcoming 2014 harvest.

 

WHEN:             CDFA is scheduled to release the Grape Crush Report at Noon on Monday, February 10, 2014.

 

ANALYSIS:       The Crush Report is likely to show that the total 2013 California wine grape crop increased slightly from the 2012 record harvest.  Similar to 2012, the 2013 growing season was nearly ideal throughout the state, providing an increase in yields over the last several years.  This was especially true in the North Coast, in particular, Sonoma County Pinot Noir and Chardonnay. In the Northern Interior, it will be interesting to look at the size and continued trend of Zinfandel being harvested from white to red wine.  Paso Robles and the Southern Interior suffered from extreme heat which limited production.  This record harvest stretched capacity to its fullest, putting downward pressure on prices for late season grapes and on the bulk market.

 

WHO:               With 41 years of wine industry experience, Turrentine Brokerage, California’s largest wine grape and bulk wine brokerage company, has a team dedicated to be trusted and strategic advisors to wineries, growers and financiers.  Turrentine Brokerage is available to provide comment and analysis on this report and its probable impact on growers, wineries and consumers.

 

                          Turrentine Brokerage will have its experienced team of grape and wine brokers and analysts available all day Monday, and throughout the week, for comment and questions.            


Turrentine's Preliminary Grape Crush Report Findings
03 February, 2014

Please keep an eye open for Turrentine's upcoming reports and insight analysis of the Preliminary Grape Crush Report for 2013 immediately following the release on February 10th.  We will analyze key topics facing the industry, any surprises, and what is likely to affect the market moving into 2014. The California Department of Food and Agriculture's Preliminary Grape Crush Report for 2013, is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2013 harvest. Don't forget to contact your Turrentine broker if you have any questions regarding the 2013 crop.


Turrentine Harvest Update
11 September, 2013

What’s happening in the vineyards as harvest progresses? The Turrentine Grape Team will be highlighting what they are hearing and seeing in the vineyards throughout California every week. 

Central Coast

  • Chardonnay, Pinot Noir, and Merlot are all ripening at the same time, earlier sites of these varieties are being harvested within days of each other
  • Paso Robles Crop looks average for Bordeaux varieties with the exception of Merlot having a potential for being above average despite accelerated maturity
  • photo 2

    Byron, Eastern Contra Costa County Syrah. Photo by Erica Moyer

    Santa Barbara Pinot Noir coming in fast

  • Harvest appears, as of now, to be 10-14 days ahead of the last few years depending upon the variety and region
  • Monterey County Pinot Noir and Chardonnay have sized well.  Chardonnay harvest has just started and the crop looks good.  Pinot Noir harvest is around the corner.

Interior

  • Early varieties are in:  Chardonnay, Pinot Grigio, Sauvignon Blanc, White Riesling.  Yields were up and down.  Call it average!
  • Merlot and Pinot Noir are rolling in.  Some Cabernet Sauvignon has started to roll in as well.
  • White Zinfandel is still being harvested.
  • The earlier cooler temps helped in sizing.
  • The little heat spurt did not hurt before the cool down as Fall is upon us, September 22.

North Coast

photo 1

Russian River Pinot Noir. Photo by Alicia Kump

  • Sauvignon Blanc is looking pretty big, about 75% picked. Napa and Lake County is above average. Sonoma is average to above average
  • Pinot Noir is looking big overall, Napa sparkling picked out above average
  • Chardonnay is just starting for still wine
  • Cabernet Sauvignon is starting to pick (hillside with shallow soils), still a long way before we have a good idea on CS
  • Merlot across NC looks like a decent crop, potential to be above average

     

    photo 4

    Napa Valley Cabernet Sauvignon. Photo by Mike Needham

Turrentine


Turrentine Outlook: Navigating Industry Trends Past, Present and Future
18 June, 2013

What would you give for a crystal ball, full of essential information that could predict the future of the wine industry and allow you to confidently chart a course toward assured profitability?

Such a tool does, in fact, exist. It’s called Turrentine Outlook, a comprehensive industry report that contains the most up-to-date market intelligence available for leading varietals such as Chardonnay, Pinot Grigio, Cabernet Sauvignon, Merlot and Pinot Noir.

The just-released Issue 13 of the Turrentine Outlook is loaded with strategic, wine industry data, contained in color charts and graphs with corresponding analysis and projections across key districts of California and beyond.

According to Turrentine President Steve Fredricks, success in our industry depends on whether or not you have both short and long-term trending information. “By looking at those trends and understanding the big picture, people can be more secure with their planning and long term positioning.”

“If you’re growing Sonoma County Pinot Noir, you need to know what’s happening in Santa Barbara and Monterey where Pinot Noir is also grown,” Fredricks says. “Global alternatives can shape trends around varietals as well.”

Turrentine specializes in the brokerage of bulk wine and grapes. The use of the strategic information contained in this report combined with their brokers’ assistance, gives Turrentine’s clients strategic advantages in their respective markets. The company’s comprehensive industry knowledge allows Turrentine to find appropriate matches between trade supply and trade demand.

“We’re working in the market daily and know the current buyers and sellers,” Fredricks says. “We understand that each business is unique. Whether you’re buying or selling, we have the background and resources to find a great match for exactly what you need.”

An annual subscription to Turrentine Outlook provides customers with periodic, comprehensive reports throughout the year: 

  • Regular updates on bulk gallons available
  • A succinct and exclusive review of the February Preliminary Crush Report
  • International market updates
  • Information about key emerging varieties and regions around the world

Contact Information

To order a Turrentine Outlook subscription, contact the company at (415) 209-9463 or emailjennifer@turrentinebrokerage.com

 


Acreage Survey Reveals Pinot Noir Gold Mine
24 April, 2013

Pinot Noir is often grown in cooler regions, and even with relatively high prices, growers may struggle to achieve economic yields. Many Pinot Noir vineyards in the coastal areas of California produce between 2.5 and 6 tons per acre. Many vineyards in Oregon produce even less. Pinot Noir can produce much higher tonnages, however, in the Central Valley of California. From calculations based on the 2012 California Department of Agriculture’s Grape Acreage Report and the state’s 2012 Crush Report, Pinot Noir vineyards in District 13 produced 12,730 tons of Pinot Noir from 24 bearing acres. That’s 530 tons per acre! At an average price of $423 per ton, that’s a gross of $224,000 per acre. This could be the 24 most profitable acres of vineyard land in the world. Or, maybe there is something wrong with some of the state’s reported numbers.

Wineries are required by law to report the tonnages they crush and these numbers are most likely accurate. The acreage numbers, however, are voluntary and many wineries and growers do not feel the need to disclose their numbers. We would not be surprised if mature Pinot Noir vineyards in District 13 averaged ten tons per acre in 2012. That would translate not into 24 acres but 1,270 acres at full production, although there are probably more acres than that but much of the acreage is not yet at full production.  The problem is not limited to District 13. Statewide, the just-released acreage report claims that only 5,474 acres were planted in 2012. Surveys of nursery sales in 2012 estimate enough vines sold to plant 4 to 5 times the number of acres in the state report. The acreage report is corrected over the years; in 2005, the report stated 7,733 acres were planted that year and by 2012 the number had risen to 12,251 acres planted in 2005.  These misleading numbers published within in the voluntary state report can create major misunderstandings – and lead to bad business decisions. Turrentine Brokerage uses proprietary market information from real world transactions and our research to provide district by district estimates of acres planted and forward looking projections of tons crushed for key varietals to provide information to our clients for better business decisions.  District 11, 12 and 13 were the first regions to plant following many years of excess and the recession.  Some of these new acres should begin bearing Cabernet Sauvignon grapes later this year, signifying the first wave of new grapes that will continue to make its way to the market over the next several years.  Despite new acres coming on, inventory still remains tight and prices are still fairly strong.  Many other new projections will be released in the next few weeks in the updated full issue of The Turrentine Outlook©, which will help us continue to work together for your sustained success.

Contact us or click here to subscribe for your issue today. 

 

 

 

 

 

 

 


Release of Wine Grape Crush Report Reveals a Rebound in Yields at a Pivotal Time, Experts Explain
06 February, 2013

CONTACT:   Steve Fredricks, President / Partner: (415) 847-0603: specialty: grapes and bulk wine throughout California and around the world

                   Brian Clements, Vice President / Partner: (707) 495-8151: specialty: grapes throughout California, especially Napa, Sonoma, Mendocino and Lake Counties

                   Erica Moyer, Broker / Partner: (209) 988-7334: specialty: grapes from the San Joaquin and Sacramento Valleys and the Central Coast

                   Audra Cooper, Broker / Partner: (805) 400-9930: specialty: grapes from the Central Coast

WHAT:         The California Department of Food and Agriculture’s Preliminary Grape Crush Report for 2012 is a critical barometer for the wine and grape industry, containing prices and tons of wine grapes crushed during the 2012 harvest. The Crush Report provides growers and wineries insight into the inventory position for the California wine business as a whole, and influences market dynamics for the current bulk wine market as well as the upcoming 2013 harvest.

WHEN:         CDFA is scheduled to release the Grape Crush Report at Noon on Friday, February 8, 2013.

ANALYSIS:  The Crush Report is likely to show that the total 2012 California wine grape crop increased considerably from 2011.  After a challenging 2011, the 2012 growing season was nearly ideal throughout the state, providing an increase in yields over the last several years.  This was especially true in the North Coast, in particular, Sonoma County Pinot Noir and Chardonnay. In the Northern Interior, it will be interesting to look at the size and continued trend of Zinfandel being harvested from white to red wine.  Paso Robles and the Southern Interior suffered from extreme heat which limited production.  This larger harvest comes at a time when supplies were nearing record lows, alleviating some of the upward pressure on bulk wine and grape pricing.

WHO:          With 40 years of wine industry experience, Turrentine Brokerage, California’s largest wine grape and bulk wine brokerage company, has a team dedicated to be trusted and strategic advisors to wineries, growers and financiers.  Turrentine Brokerage is available to provide comment and analysis on this report and its probable impact on growers, wineries and consumers.

                   Turrentine Brokerage will have its experienced team of grape and wine brokers and analysts available all day Friday, and throughout the week, for comment and questions.            


The Turrentine Outlook
10 January, 2013

The Turrentine Outlook ©

Fully updated and published each year in May, includes strategic information, color charts and graphs with corresponding analysis, and projections for each varietal across the key districts of California. Strategic commentary is also provided on international supplies and other forces shaping the U.S. market. Each full issue also includes the highly regarded “Wine Business Wheel of Fortune©”, a model that accurately depicts the cyclical nature of grapes and wine supply, along with the volatile impact to the many stakeholders across the supply chain.

Assembled by a team of wine business veterans with a deep understanding of the forces impacting wine grapes and bulk wine supplies, The Turrentine Outlook© is unlike other sources of supply and demand data. Our proprietary information is based on real world sales of grapes and wines in bulk, both in California and around the globe.

Click Here to Subscribe - Turrentine Outlook


Selected Recent Sales of Grapes & Wines in Bulk for Jan 7, 2013
07 January, 2013



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

Bulk Wine

Cabernet Sauvignon 2011 wine, Napa Valley, 5,800 gallons at $25.00 per gallon

Sauvignon Blanc 2012 wine, California, 18,500 gallons at $6.75 per gallon

Merlot 2011 wine, Napa Valley, 3,500 gallons at $17.00 per gallon

Chardonnay 2011 wine, California, 6,500 gallons at $6.10 per gallon

Pinot Noir 2012 wine, California, 6,000 gallons at $8.50 per gallon

 

 

 

 

 


Selected Recent Sales of Grapes & Wines in Bulk for Dec 17, 2012
04 January, 2013

Selected Recent Sales of Grapes & Wines in Bulk for December 17, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Merlot 2011 wine, California, 12,800 gallons at $6.80 per gallon

Chardonnay 2011 wine, California, 6,400 gallons at $4.75 per gallon

Cabernet Sauvignon 2011 wine, Paso Robles, 6,500 gallons at $15.00 per gallon

Pinot Noir 2011 wine, Central Coast, 9,000 gallons at $14.25 per gallon

Cabernet Sauvignon 2011 wine, Napa Valley, 9,600 gallons at $26.00 per gallon

Pinot Noir 2012 wine, California, 6,000 gallons at $8.50 per gallon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Selected Recent Sales of Grapes & Wines in Bulk for Oct 17, 2012
17 October, 2012

Selected Recent Sales of Grapes & Wines in Bulk for Oct 17, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

Bulk Wine

Sauvignon Blanc 2011 wine, Lodi, 6,300 gallons at $6.75 per gallon

Cabernet Sauvignon 2010 wine, California, 4,500 gallons at $10.50 per gallon

Zinfandel 2011 wine, Alexander Valley, 11,300 gallons at $12.00 per gallon

Grapes

Zinfandel 2012 grapes, Lodi, 130 tons at $700.00 per ton

Sauvignon Blanc 2012 grapes, Russian River, 70 tons at $650.00 per ton

Merlot 2012 grapes, Napa Valley, 100 tons at $1,725.00 per ton

Cabernet Sauvignon 2012 grapes, Lodi, 100 tons at $800.00 per ton

Merlot 2012 grapes, Paso Robles, 50 tons at $1,000.00 per ton


Selected Recent Sales of Grapes & Wines in Bulk for Oct 2, 2012
08 October, 2012

Selected Recent Sales of Grapes & Wines in Bulk for Oct 2, 2012.  Courtesy of Turrentine Brokerage, the leading broker of premium grapes and wines in bulk, 415-209-9463, www.turrentinebrokerage.com:

 Bulk Wine

Sauvignon Blanc 2011 wine, Lodi, 6,500 gallons at $6.00 per gallon

Cabernet Sauvignon 2011 wine, Paso Robles, 22,000 gallons at $12.50 per gallon

Zinfandel 2010 wine, Lodi, 13,000 gallons at $8.50 per gallon

Chardonnay 2011 wine, California, 30,000 gallons at $5.50 per gallon

Chardonnay 2011 wine, Russian River, 2,200 gallons at $20.00 per gallon

 Cabernet Sauvignon 2011 wine, Monterey County, 13,000 gallons at $12.25 per gallon

 Pinot Noir 2011 wine, California, 19,200 gallons at $10.00 per gallon

 Grapes

 Cabernet Sauvignon 2012 grapes, Paso Robles, 50 tons at $1,500.00 per ton

 Merlot 2012 grapes, Santa Ynez Valley, 30 tons at $1,000.00 per ton

 Syrah 2012 grapes, Santa Ynez Valley, 35 tons at $1,000.00 per ton

 Sauvignon Blanc 2012 grapes, Napa Valley, 72 tons at $900.00 per ton

 Cabernet Sauvignon 2012 grapes, Rutherford, 44 tons at $4,200.00 per ton

 Chardonnay 2012 grapes, Dry Creek Valley, 30 tons at $1,600.00 per ton

 Pinot Noir 2012 grapes, Clarksburg, 200 tons at $800.00 per ton

 

 

 

 


Selected Recent Sales of Grapes & Wines in Bulk for Sep 10, 2012
10 September, 2012

Selected Recent Sales of Grapes & Wines in Bulk for Sep 10, 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, California, 25,000 gallons at $10.00 per gallon
  • Sauvignon Blanc 2011 wine, Lake County, 2,600 gallons at $8.50 per gallon
  • Cabernet Sauvignon 2010 wine, Napa Valley, 25,600 gallons at $28.00 per gallon
  • Merlot 2011 wine, Napa Valley, 5,000 gallons at $19.00 per gallon
  • Cabernet Sauvignon 2010 wine, California, 10,800 gallons at $10.50 per gallon

Grapes

  • Viognier 2012 grapes, Oak Knoll District, 8 tons at $3,200.00 per ton
  • Pinot Noir 2012 grapes, Anderson Valley, 10 tons at $4,000.00 per ton
  • Chardonnay 2012 grapes, Mendocino County, 50 tons at $1,300.00 per ton
  • Cabernet Sauvignon 2012 grapes, Alexander Valley, 80 tons at $3,000.00 per ton
  • Pinot Noir 2012 grapes, Arroyo Seco, 80 tons at $2,000.00 per ton

Selected Recent Sales of Grapes & Wines in Bulk for August 21, 2012
21 August, 2012

Selected Recent Sales of Grapes & Wines in Bulk for Aug 21, 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, Alexander Valley, 1,200 gallons at $20.00 per gallon

Chardonnay 2011 wine, Central Coast, 16,800 gallons at $11.00 per gallon

Malbec 2011 wine, Bennett Valley, 1,800 gallons at $17.00 per gallon

 Cabernet Sauvignon 2010 wine, Mendocino County, 19,300 gallons at $15.00 per gallon

 Chardonnay 2011 wine, Napa Valley, 2,800 gallons at $20.00 per gallon

 Grapes

 Chardonnay 2012 grapes, Knights Valley, 75 tons at $1,750.00 per ton

 Chardonnay 2012 grapes, Dry Creek Valley, 140 tons at $1,800.00 per ton

 Cabernet Sauvignon 2012 grapes, Suisun Valley, 75 tons at $1,500.00 per ton

 Merlot 2012 grapes, Oakville, 20 tons at $3,200.00 per ton

 Cabernet Sauvignon 2012 grapes, California, 100 tons at $800.00 per ton


Selected Recent Sales of Grapes & Wines in Bulk for July 24, 2012
24 July, 2012

Selected Recent Sales of Grapes & Wines in Bulk for July 24, 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, California, 31,300 gallons at $6.00 per gallon

Cabernet Sauvignon 2011 wine, Alexander Valley, 10,000 gallons at $20.00 per gallon

Syrah 2011 wine, California, 11,300 gallons at $5.50 per gallon

Zinfandel 2011 wine, Central Coast, 3,000 gallons at $13.00 per gallon

Petite Sirah 2011 wine, Paso Robles, 2,000 gallons at $15.00 per gallon

Cabernet Sauvignon 2011 wine, Monterey County, 25,600 gallons at $17.00 per gallon

Grapes

Cabernet Sauvignon 2012 grapes, Saint Helena, 16 tons at $4,500.00 per ton

Pinot Noir 2012 grapes, Napa Carneros, 35 tons at $3,000.00 per ton

Cabernet Sauvignon 2012 grapes, Paso Robles, 50 tons at $1,700.00 per ton


Selected Recent Sales of Grapes & Wines in Bulk for June 18, 2012
21 June, 2012

Selected Recent Sales of Grapes & Wines in Bulk for June 18, 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 2011 wine, Lodi, 33,000 gallons at $12.00 per gallon

Chardonnay 2010 wine, Alexander Valley, 4,000 gallons at $13.00 per gallon

Sauvignon Blanc 2011 wine, Lake County, 6,400 gallons at $9.00 per gallon

Pinot Noir 2011 wine, California, 6,500 gallons at $12.00 per gallon

 

 


Selected Recent Sales of Grapes & Wines in Bulk for May 29, 2012
04 June, 2012

Selected Recent Sales of Grapes & Wines in Bulk for May 29, 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, Napa Carneros, 3,500 gallons at $20.00 per gallon Pinot Noir 2011 wine, Monterey County, 19,600 gallons at $22.00 per gallon

Cabernet Sauvignon 2011 wine, Lodi, 10,000 gallons at $12.00 per gallon

Petit Verdot 2011 wine, California, 6,200 gallons at $10.00 per gallon

 Merlot 2011 wine, Alexander Valley, 4,400 gallons at $14.50 per gallon

 White Riesling 2011 wine, Monterey County, 10,400 gallons at $8.50 per gallon

 Chardonnay 2010 wine, Russian River, 6,400 gallons at $13.00 per gallon

 Grapes

 Cabernet Sauvignon 2012 grapes, Dry Creek Valley, 44 tons at $2,450.00 per ton

 Merlot 2012 grapes, Dry Creek Valley, 65 tons at $1,700.00 per ton

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

 

 


Selected Recent Sales of Grapes & Wines in Bulk for May 14, 2012
16 May, 2012

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
15 May, 2012

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

 

 

 

 


Recent Sales for May 1, 2012
02 May, 2012

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

 

 

 

 


Recent Bulk Wines & Grapes
25 April, 2012

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 ; 


Recent Sales - Grapes & Wines in Bulk
19 April, 2012

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]

 

 


Recent Sales - Grapes & Wines in Bulk for March
04 April, 2012

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
01 March, 2012

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
24 January, 2012

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

 


Selected Recent Sales of Grapes & Wines in Bulk for January 5, 2012
10 January, 2012

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:

 


Recent Sales of Grapes & Wines
19 December, 2011

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

 

 


Recent Sales of Grapes & Wines
15 November, 2011

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
17 October, 2011

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
14 October, 2011

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

Selected Recent Sales of Grapes & Wines in Bulk
21 September, 2011

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

 


Selected Recent Sales of Grapes & Wines in Bulk for August 24
26 August, 2011

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

 

 


Will rain spoil merlot’s parade?
18 July, 2011

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

 



Selected Recent Sales of Grapes & Wines
06 July, 2011

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


Selected Recent Sales of Grapes & Wines
05 July, 2011

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


The Buck Stops Here - by Steve Fredricks / Market Update
29 June, 2011

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.)


Selected Recent Sales of Grapes & Wines
27 June, 2011

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  

 


Release of Strategic Turrentine Outlook Reveals Disappearance of Excess Inventories
22 June, 2011

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


Selected Recent Sales of Grapes & Wines
06 June, 2011

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


Grape Market Insights: ‘Bulldogging’ the size of Sonoma County’s 2011 pinot noir crop
25 May, 2011

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.


May 25th Workshop : Increase YOUR Cash Flow
18 May, 2011

Turrentine Brokerage has joined a terrific group of North Bay companies to sponsor a half-day workshop on the most crucial topic facing businesses these days: How to increase cash flow. Lary Kirchenbauer, President of Exkalibur Advisors will be leading this half-day workshop, “It’s almost midnight.  Do you know where your cash is?” on Wednesday, May 25th 7:30 am to Noon at the Rohnert Park Double Tree. 

We sponsored this event because it is not only a critically important and timely topic for the wine industry, but because we know that Lary will deliver a practical, action-packed program that offers a great opportunity to really understand cash flow and most importantly, how to create more of it.

 We think the program we have put together will be the most comprehensive workshop that’s ever been presented for wine industry members about what Warren Buffett calls the “lifeblood of business”. The wine industry has changed in significant ways over the last few years … and the need to pay closer attention to cash flow has come into greater focus than ever before as wineries are working to rebuild inventories.

What is so special about this program? First, it includes a fast-paced workshop that is short on jargon and fluff, and long on practical strategies you can immediately put to work.

Second, we’ve worked with Lary to build one of the most extensive programs we’ve ever seen. Most of the programs we’ve attended over the years are standard workshops with lots of handouts and reading material. In this unique program, the emphasis is on individual attention to do everything possible to help you understand cash flow and the levers you can pull to increase it.  In addition to the high-impact materials you’ll start receiving as soon as you register, the program also includes many special features that you won’t find in other workshops: Two (2) conference calls so that you can get all of your questions answered, both before and after the workshop, A Financial Literacy assessment to help you improve your knowledge of business finance, and Once the workshop has concluded, a rare opportunity for you to benefit from an INDIVIDUAL CONSULTATION WITH A SENIOR FINANCIAL TEAM to apply these tools and techniques to your own business. To register and learn more about this exciting program, please visit Exkalibur.com or call 888-351-8880.


Selected Recent Sales of Grapes & Wines
18 May, 2011

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


May 25th Workshop : Increase YOUR Cash Flow
18 May, 2011

Turrentine Brokerage has joined a terrific group of North Bay companies to sponsor a half-day workshop on the most crucial topic facing businesses these days: How to increase cash flow. Lary Kirchenbauer, President of Exkalibur Advisors will be leading this half-day workshop, “It’s almost midnight.  Do you know where your cash is?” on Wednesday, May 25th 7:30 am to Noon at the Rohnert Park Double Tree. 

We sponsored this event because it is not only a critically important and timely topic for the wine industry, but because we know that Lary will deliver a practical, action-packed program that offers a great opportunity to really understand cash flow and most importantly, how to create more of it.

 We think the program we have put together will be the most comprehensive workshop that’s ever been presented for wine industry members about what Warren Buffett calls the “lifeblood of business”. The wine industry has changed in significant ways over the last few years … and the need to pay closer attention to cash flow has come into greater focus than ever before as wineries are working to rebuild inventories.

What is so special about this program? First, it includes a fast-paced workshop that is short on jargon and fluff, and long on practical strategies you can immediately put to work.

Second, we’ve worked with Lary to build one of the most extensive programs we’ve ever seen. Most of the programs we’ve attended over the years are standard workshops with lots of handouts and reading material. In this unique program, the emphasis is on individual attention to do everything possible to help you understand cash flow and the levers you can pull to increase it.  In addition to the high-impact materials you’ll start receiving as soon as you register, the program also includes many special features that you won’t find in other workshops: Two (2) conference calls so that you can get all of your questions answered, both before and after the workshop, A Financial Literacy assessment to help you improve your knowledge of business finance, and Once the workshop has concluded, a rare opportunity for you to benefit from an INDIVIDUAL CONSULTATION WITH A SENIOR FINANCIAL TEAM to apply these tools and techniques to your own business. To register and learn more about this exciting program, please visit Exkalibur.com or call 888-351-8880.


Selected Recent Sales of Grapes & Wines
20 April, 2011

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


March Madness Adds Up
13 April, 2011

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.

Turrentine Blog

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

http://www.turrentinebrokerage.com/blog/

 


Selected Recent Sales of Grapes & Wines
06 April, 2011

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


In The News: Grape Market Insights
30 March, 2011

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:

http://www.turrentinebrokerage.com/blog/

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


Selected Recent Sales of Grapes & Wines
23 March, 2011

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


March Market Wrap Up
16 March, 2011

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:

http://www.turrentinebrokerage.com/blog/

 

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


Market Opportunities – Bulk Wine & Grapes
23 February, 2011

Below, please find a list of the latest bulk wine and grape opportunities and needs. These selections are not always available and discussing interest with your friendly local Turrentine Broker soon may be the first step to an advantageous business strategy.

Grapes

Available:Mountain Appellated Napa Cabernet Sauvignon, various sites

Available:Rutherford Cabernet Sauvignon, truckload quantities

Available:Sonoma Valley one load of Semillon and truckload quantities of Chardonnay

Available:Russian River Pinot Noir and Chardonnay, multiple lots

Available:Mendocino County Gewurztraminer, truckload quantities

Available:Dry Creek Valley benchland Zinfandel, small lots and truckload quantities

Available:Lake County Sauvignon Blanc, large quantities and truckload lots

Available:District 12 Eastside Oakdale Cabernet Sauvignon, 200 tons

Available:Lodi Petite Sirah, load quantities

Available: Santa Lucia and Chualar Canyon Pinot Noir

Available:Planting opportunities eastside Lodi and District 12

Needed: Muscat and Malbec; load quantities

Needed:Napa Valley Cabernet Sauvignon West of Highway 29

 

Bulk Wine

Available: Red Hills Cabernet Sauvignon, 2010, large lots

Available: Russian River Valley Chardonnay 2009 and 2010, multiple lots

Available: Alexander Valley, Viognier, 2010, 3,000 gallon lot

Available: Napa Valley Semillion, 2010, 2,500 gallon lot

Available: Napa Valley Cabernet Sauvignon, 2010, multiple lots

Available:Central Coast Albarino, 2010, 8,000 gallons

Available:Muscat Canelli, Various appellations, multiple small lots

Available:Amador County Reds, 2009 and 2010

Available:California Appellation Pinot Noir, 2010

Available: Sparkling Wines, various vintages

Available: Paso Robles Zinfandel, 2009 and 2010

Available:All appellations, Chardonnay, 2010

Available:Great opportunities for 2009 Chardonnay at bargain prices

Available: Napa Valley Petite Sirah, 2010

Available: Santa Barbara Grenache Blanc, 2010

Available: Clarksburg Port, 2007, 3,000 gallon lot

Available: California and Central Coast Pinot Grigio, 2009 and 2010, multiple lots

Needed: Dry Creek Valley Zinfandel, 2010

Needed:California Pinot Noir, 2010

Needed:Zinfandel from all California appellations, 2009

Needed:Alexander Valley Reds

Needed:Cabernet Sauvignon from all California appellations, 2009 and 2010

Needed:Malbec from all California appellations, 2009 and 2010

Needed:Russian River Pinot Noir

Kelly Mahoney
Sales Support Grapes

Click Here for more from the Turrentine Blog


Selected Recent Sales of Grapes & Wines
14 February, 2011

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


Our strategic alliance partner, discusses the bulk wine market in Argentina.
10 February, 2011

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


2010 Crop of Winegrapes Down 3%
10 February, 2011

The Preliminary California Grape Crush Report released today shows the total crop of winegrapes harvested in 2010 was 3.58 million tons, down only 3% from 2009, making 2010 the third largest crop in history after 2009 and 2005.

“Perhaps the most important news for the California wine industry is that Interior region Cabernet Sauvignon production declined by almost 13,000 tons – the equivalent of almost a million cases, while sales of this value priced Cabernet Sauvignon are growing at a fast rate.  Some of this shortfall is balanced by a larger crop of Cabernet Sauvignon on the Central Coast.”

- Steve Fredricks, President, Turrentine Brokerage

“The best news for the California wine business was the lighter crop of Chardonnay in the Central Valley, which was down 62,000 tons, or 10.5 million gallons. That decrease should help Chardonnay inventories move towards balance as casegoods sales continue to increase – especially at the value end of the market.”

- Brian Clements, Vice President, Turrentine Brokerage

“Overall, Chardonnay, the largest variety, was down a substantial 10% statewide in 2010 compared to 2009, which is a decrease of 12 million gallons or almost 60 million bottles (over – 5 million cases). The lower yields were mostly in the areas supplying value-priced brands which are growing but face competition from low-cost imports.”

- Steve Fredricks, President, Turrentine Brokerage

“Production in the Northern Interior was down 22% compared to a record year in 2009, whereas in the Southern Interior, production increased by 5% due to maturing and newly planted acres.  Demand continues to be strong for these grapes priced to produce wines below $10 per bottle.”

- Erica Moyer, Partner/Broker, Turrentine Brokerage

The crop of Cabernet Sauvignon grapes – the largest red wine variety – was similar in overall volume to the 2009 crop.  Demand is strong for this variety in the interior and on the Central Coast, although not necessarily at sustainable prices.  Inventories of bulk wine for sale are also declining. Cabernet Sauvignon in Napa Valley was a roughly average crop, which is bigger than expected. Early reports on quality are very good.”

- Brian Clements, Vice President, Turrentine Brokerage

“According to proprietary research conducted by Turrentine Brokerage, the overall inventory position of the industry is much better today than it was a year ago.  Many brands have successfully paired inventories down and are now in need of wine to satisfy growing sales.  Wine consumption continued to grow through the recession, but some consumers ‘traded down’ to less expensive wines.  We’re starting to see those consumers trade back up – which is good news for wineries and growers.”

- Steve Fredricks, President, Turrentine Brokerage

“The North Coast region experienced a decrease of 5% in crop size overall, which was generally bigger then expected.  The growing season was especially challenging in 2010, with relatively cool weather, interrupted by one intense heat spike, and then heavy rains as harvest approached.”

- Audra Cooper, Broker, Turrentine Brokerage

“While the overall industry supply position is balanced for most varieties, there continues to be some excess supply of the most expensive inventory.  Many brands at higher price points have seen sales slow because of the recession.  As the economy continues to recover and consumer confidence grows, the excess at the high-end is likely to disappear and eventually a shortage will develop.”

- Brian Clements, Vice President, Turrentine Brokerage

“Although the winegrape crop was down statewide, we had an above average crop on the Central Coast – up 5% from average.  Several red varieties were well above average, led by Cabernet Sauvignon (up 22%), Syrah (up 22%), and Merlot (up 16%).  Pinot Noir was down 8% from 2009, but was by far the second largest Pinot Noir crop in history on the Central Coast, due to newly planted acres coming into production. Demand remains strong for grapes and wine on the Central Coast, however average prices are still well below the pre-recession levels.”

- Matt Turrentine, Broker, Turrentine Brokerage

“The lower crop levels are helpful to wineries at the luxury end of the wine business as they continue to balance inventories. Wineries marketing value-priced brands would have liked to see a larger crop to continue to fuel the success of wines retailing under $10 per bottle.”

- Steve Fredricks, President, Turrentine Brokerage

The Turrentine Brokerage Blog


Selected Recent Sales of Grapes & Wines
01 February, 2011

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


You’re Fired!
26 January, 2011

Turrentine Blog:

What?  I thought I did a good job!  I performed by meeting your expectations (perhaps exceeding them, given the market) and placed your grapes, in a down market, on a multi-year contract with a good price.  And now that the market has picked up, you don’t need our services?  In essence, what you’re saying is, “You’re Fired!”

Placing grapes in a suffering market with a good buyer in a multi-year contract was not an easy task.  We used our resources, time and reputation to place your grapes.  So, in an up market, strategic information, multi-year contracts, appropriate buyers and other creative elements are no longer important?

I have been scratching my head the past two months in an attempt to figure out why someone would terminate a service that has proved beneficial.  Trying NOT to take it personally, I sought answers with a current client and his response was “it’s  not who you are, but what you do.”  Feeling better temporarily, I was still confused.

I am proud to be a Broker with a focus on long-term success for our clients.  The information we have available to us is HUGE:  Supply and demand of grapes and bulk wine, domestic and global bulk and grape inventories, planting contracts, winery prospects, local, state and global markets.  Not to mention the team we have that is packed with experience and talent who are respected throughout the industry.  And, we are a pretty fun group too!  But the more I think of this, the more grey hair pops up and the interval on hair coloring tightens and the Vodka consumption increases.  Just when I can do the most for their long-term success they want to fire me!

But what I do know is there are those loyal clients, who value our service, in the down market and even more so in the up market.  They understand that we can do more for them in a market with more options. These are folks GROWING their business.  These clients rely on our services and have proven to be  successful with our help and expertise.  So, as their business grows, ours does as well.

The 80/20 Rule applies in this industry:  20% make up 80% of the business.  This is an elite group, a group that knows how to survive down markets and make the best of improving markets.

The answer I’ve found while evaluating all the events in the past few months:  focus on those who value who we are and what we can do for them, especially in a thriving market. Let it happen and it will grow naturally.

You’re RE-HIRED – and the opportunities are looking good

Erica Moyer
Grape Broker/Partner

View this post and more on the Turrentine Blog

Selected Recent Sales of Grapes & Wines
20 January, 2011

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.

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


2011 Grape Market / Opportunities
22 December, 2010

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

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

http://www.turrentinebrokerage.com/blog/



Jingle Bells 2010: The "Other Guy" is Calling / 2011 Grape Market
15 December, 2010

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

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

http://www.turrentinebrokerage.com/blog/


 


Turrentine Brokerage Adds Multi-talented Marc Cuneo to its Staff
03 December, 2010

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.


Selected Recent Sales of Grapes & Wines in Bulk for November 29, 2010
01 December, 2010

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

 


Selected Recent Sales of Wines in Bulk for November 11th, 2010
17 November, 2010

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


Selected Recent Sales of Wines in Bulk for November 8th, 2010
09 November, 2010

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


Selected Recent Sales of Grapes & Wines
03 November, 2010

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

 


Selected Recent Sales of Grapes & Wines
01 November, 2010

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


Selected Recent Sales of Grapes & Wines
26 October, 2010

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


Word on the Grapevine is…
29 September, 2010

In researching the next issue of the Turrentine Outlook and in preparation for my presentation to the Wine Industry Financial Symposium on September 21st, 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

Visit the Turrentine Blog click here


Selected Recent Sales of Grapes & Wines.
20 September, 2010

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

Use the Send Me Info button to contact us for current pricing information.

Title Name Email Phone
President/Partner Steve Fredricks steve@turrentinebrokerage.com 415-209-9463
Vice President/Partner Brian Clements brian@turrentinebrokerage.com 415-209-9463
Broker/Partner - Grapes Erica Moyer erica@turrentinebrokerage.com 415-209-9463
Broker - Grapes, North Coast Mike Needham mike@turrentinebrokerage.com 415-209-9463
Broker/Partner - Bulk Wine Steve Robertson stever@turrentinebrokerage.com 415-209-9463
Broker - Bulk Wine William Goebel william@turrentinebrokerage.co
m
415-209-9463
Broker/Partner - Grapes, Central Coast Audra Cooper audra@turrentinebrokerage.com 415-209-9463
Broker/Partner - Bulk Wine Marc Cuneo marc@turrentinebrokerage.com 415-209-9463
Broker - Bulk Wine Neil Koch neil@turrentinebrokerage.com 415-209-9463
National Sales Manager, Strategic Brands Bryan Foster bryan@turrentinebrokerage.com 415-209-9463


Adobe Acrobat File

Turrentine Outlook: Navigating Industry Trends Past, Present and Future


Adobe Acrobat File

It's a Mad, Mad, Mad World


Adobe Acrobat File

Trends Shaping the Future of California Wine Revealed in Grape Crush Report, Experts Explain


png File

Current Market Pricing September 2014


The Turrentine Outlook - Forecasts and Strategies for a Competitive Advantage
The Turrentine Outlook © The Turrentine Outlook©, fully updated and published each year in June, includes strategic information, color charts and graphs with corresponding analysis, and projections for each varietal across the key districts ...

 Turrentine Marketplace 

Please select a category:

 

 

Some prophets go into a deep trance to discern the future. Others read the entrails of sacrificial animals or the flight of birds or tea leaves or they peer into crystal balls. Less mystical forms of assessing the future are also available. They usually involve the detection of patterns that have existed in the past and include speculation about how the dynamics that have created those patterns might be expected to play out in the future. The newly revised Turrentine Wine Business Wheel of Fortune is all about understanding the patterns evident in the wine business and considering how the dynamics involved are likely to develop in the future. The updated Wheel (see facing page) has been produced in conjunction with a new subscription service that Turrentine Brokerage will soon offer its key clients, providing the best information available about the past, current and future supply situation of the California grape and wine business. Turrentine Brokerage first began to describe the dynamics of the cycle in general terms when the wine business was in excess in 1992 and 1993. The first edition of the Turrentine Wine Business Wheel of Fortune was published in January of 1996. It gained fame because it accurately described and predicted the often violent supply cycles that have long characterized the wine business.

Predicting the future by any method is a tricky business. Those who live by the crystal ball must occasionally eat broken glass. But the fact is that all business people must predict and bet money on how they think the future will develop. During my 30 years in the wine business, I have observed how hard it is for people to look beyond current conditions. When demand gets ahead of supply and the wine business is doing well, people get excited and focus on the positive factors that are driving success. These can seem unstoppable. When the wine business is flooded with excess supply, most people become gloomy and focus on the factors that are depressing the business. These factors appear insurmountable. In the past, however, each phase of the cycle has created the conditions for the next phase. Shortages, for example, have raised prices, which have stimulated new planting. New plantings have eventually surpassed demand and once again created excess. Excess supply has depressed prices, stopped new planting and created opportunities for creative marketing. Creative marketing has increased sales, which have used up excesses and produced shortages.

That was the past. The future will be different and full of surprises. No one can predict something like the 1991 Morley Shafer 60 Minutes television segment, called The French Paradox, that associated red wine with longevity and gave sales a huge boost at time when wineries were overflowing with multiple vintages of red wine. No one can predict something like the September 11, 2001 terrorist attacks, which reduced demand for wine just as new acres from the planting boom of 1996, 1997 and 1998 were coming into production. The amazing impact of the movie, Sideways, is another example of the kind of surprises that have a huge influence on the business as a whole or on one segment of the business. These kinds of surprises can determine how fast we travel through the phases of the Wheel and on how extreme the changes are from one phase of the Wheel to another. As long as demand keeps growing and the demographics for demand growth look good external factors are unlikely to completely overcome the basic dynamics of the cycle.

So let's take a spin around the Turrentine Wine Business Wheel of Fortune and see how the wine business fares, Phase by Phase. Then we will examine our current location on the Wheel and what that means for the future.

Phase I Emerging Excess

We last entered Phase I in 2000, when many acres of wine grapes planted in 1996, 1997 and 1998 were coming into production. Unfortunately, the Dot Com boom went bust at around the same time, slowing the rate of premium wine sales just as the tons of wine grapes harvested began to escalate. Many brands were eager to preserve the good margins they had achieved during the boom years and they were willing to sacrifice market share in order to preserve margins. But the fact is that trying to preserve margins in an excess market is usually an impossible dream that delays action while conditions worsen. The few companies that foresaw the coming excess, of course, were in great shape because they had already cut back on commitments and were now able to source grapes and bulk wine at much lower prices than their competitors. With a lower cost of goods, they could pass on savings to wholesalers, retailers and consumers in order to gain market share while still keeping fairly reasonable margins. The majority of companies, however, were locked into high priced, long term grape and bulk wine contracts that increased in volume over time. The companies found that their inventories were ballooning while their existing casegood market share was being stolen by brands that were willing to aggressively discount. They turned for relief to the grape and bulk wine markets and discovered that these markets do not work very well when almost everyone wants to sell. Moving excess inventories into export markets or through the domestic bulk wine market proved difficult and required taking large losses. Eventually, many companies found that they needed to discount their brands and to increase marketing expenses and many of them still needed to accept low prices for excess grapes and wines in bulk.

Phase II Acute Excess

This difficult situation was exacerbated in 2003, 2004 and 2005, as vineyards planted in 1999, 2000 and 2001 started coming on line. Through this period, a number of wineries took huge write-offs on sales of grapes and wines in bulk, but they did make progress in working down excess inventories. The huge harvest of 2005 reversed much of that progress and flooded the wine business once more with excess inventory.

Strong sales growth for wines over $10.00 a bottle retail helped the higher end of the wine business deal with excesses. The removal of an estimated 50,000 acres of wine grapes in the southern end of the San Joaquin Valley, along with strong sales for the Charles Shaw brand, helped to stabilize the value end of the business. But strong competition from imports has constrained sales growth for many of those California wines in between the high end and the extreme value brands. Further inundated with an above average crop in 2006, the wine business overall remained in a state of excess supply into 2007.

Phase III and Phase IV Emerging Shortage & Shortage


In the past, the period of shortage has been very good for most segments of the California wine business. In this phase, growers experience increasing demand and improving prices. Wineries usually get stuck with higher grape prices but, as long as the whole market tightens up, they are usually able to increase casegood prices to more than compensate for higher grape prices.

It appears that demand for premium wine in the United States is relatively price inelastic. That means that, when the whole market is increasing prices because of shortage, demand does not fall off as much as one might expect. This is very positive for the wine business during times of shortage. Many wineries discover that demand remains strong even though they increase FOB prices and they are able to achieve the kinds of margins that justify a complicated, capital intensive game like the wine business. These good times typically attract large amounts of new capital and fuel a boom in planting and in winery expansion.

[The Wine Wheel is currently being updated]

Download(s):