The annual Vineyard Economics Seminar will take place in Napa next Tuesday and, considering the recent changes in the wine and grape market, it should be interesting.
Results from the Vineyard Economics Seminar survey will be presented. In the survey, 96.3 percent of wineries and growers said they expect positive revenue growth extending to 2014. Some of the other top-line results are that grape prices are expected to increase in 2012 compared to 2011, especially for reds, and that wineries are signing more long-term contracts.
When wineries backed away from buying grapes during the recession, more growers dabbled in the bulk wine market to hedge their bets. One survey finding is that a large number of growers make wine under their own label, make bulk wine, or wine for private labels. Growers made up less than 40 percent of respondents but 25 percent of the respondents – i.e., most of the growers – either make grapes into bulk wine (10 percent), have their own label (12 percent) or make wine for private labels (3 percent).