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2008 Vineyard Economics Survey
Welcome to the 2008 Vineyard Economics Survey.

The Wine Industry Symposium Group is holding its 13th Annual Vineyard Economics Seminar on Tuesday, May 19 2008 at the Napa Valley Marriott. In conjunction with the 2008 Program, we are again conducting a survey, the results of which will be presented at the event. A summary of the results will also be published in a future issue of the Wine Business Monthly.

Filling out the survey requires about 10 minutes. Individual responses will not be made public. In order for your response to be counted, please make sure you click on the submit button at the end of the survey.
   
email:  
company:  
  1) What type of business is your company?
  winery (or winery & grower)  grower 
other:  
  2) What is your job function? (check as many as appropriate)
 
winemaking vineyard mgmt./viticulture
president/owner/gm tasting room
cellar/production sales/marketing
purchasing/finance other:  
  3) Which county or region best describes your location?
  4) a.  Please indicate annual case production.
0/NA
Under 1,000
1,000 - 2,499
2,500 - 4,999
5,000 - 9,999
10,000 - 24,999
25,000 - 49,999
50,000 - 99,999
100,000 - 249,999
250,000 - 499,999
500,000 - 999,999
1,000,000 and over
  b.  Please indicate vineyard acres owned.
 
0
1 - 24
25 - 49
50 - 199
200 - 500
over 500
5) What is your opinion about the growth of wine sales relative to 2007? (check one per year)
 
2008 2010
Decline
No Growth
Growth
6) Please rate each of the following factors in terms of their positive impact wine sales over the next 3 years?
 
no impact major impact
1 2 3 4 5
Promoting health benefits of wine
Economic Growth
Delivering more quality for price
Regional Identity/Image/Appellation
Sensitivity to Consumer Tastes
Popular acceptance of wine as everyday beverage
Breaking down of barriers to direct shipping
Educating consumers to the benefits of sustainable farming
7) How significant is each of the following possible constraints to wine industry growth and profitability over the next three years?
not a concern
very significant
1 2 3 4 5
Economy
Impact of imports
Further distributor consolidation
Retailer consolidation & power
Continued pricing pressure
Increased local regulation
Water shortage
Labor Shortage
Global Warming
8) How did the consumer change in 2007 compared with the past two years? (check top 3)
   Consumers like screw caps/alternative packaging
 Consumers are less brand loyal
 Consumers are more interested in buying ""green"
 Consumers are buying more on the web
 Consumers are buying fun wine labels
 Consumers are trading up
 Consumers are overwhelmed with choices
 Consumers want more education
 Consumers are looking for more food friendly wines
 Consumers think wine is part of a healthy lifestyle
9) How strong will the growth in grape sales be for these wine varietals over the next 3 years?
 
very weak very strong
1 2 3 4 5
Cabernet Sauvignon
Merlot
Red Zinfandel
Pinot Noir
Syrah
Chardonnay
Sauvignon Blanc
Pinot Grigio
White Zinfandel
10) a.  Will grape prices in 2008 from your district
 
increase remain the same decrease
Cabernet Sauvignon
Merlot
Red Zinfandel
Pinot Noir
Syrah
Chardonnay
Sauvignon Blanc
Pinot Grigio
White Zinfandel
  b.  Will grape prices in 2010 from your district
 
increase remain the same decrease
Cabernet Sauvignon
Merlot
Red Zinfandel
Pinot Noir
Syrah
Chardonnay
Sauvignon Blanc
Pinot Grigio
White Zinfandel
11) SUPPLY: What do you think about the supply of grapes by varietal over the next 3 years?
 
oversupply in balance undersupply
Cabernet Sauvignon
Merlot
Red Zinfandel
Pinot Noir
Syrah
Chardonnay
Sauvignon Blanc
Pinot Grigio
White Zinfandel
12) How much did your 2007 harvest yield differ from what you were expecting?
    Shortfall
  About what we expected
  Overage
13) How strong will the growth in sales be for each Price Segment over the next 3 years?
(Using a Scale of 1-5 with 1 being Weak Sales and 5 being Strong Sales)
 
weak sales strong sales
Price per 750 ml 1 2 3 4 5
< $3
$3 - $7
$7 - $10
$10 - $14
$14 - $24
$25 ++
14) What percent of your contracts are:
  %  Long Term (3-7 yrs)
%  Short Term (1-2 yrs)

  No Contracts
15)
Were you profitable in 2007? Yes    No   
Were you more profitable in 2007 than 2006? Yes    No   
Do you expect to be more profitable in 2008 than 2007? Yes    No   
16) a. Are you planting any grapes this year?
  No Yes    If yes, how many acres?    Which varietal(s)?
b. Are you replanting any grapes this year?
  No Yes    If yes, how many acres?    Which varietal(s)?
c. Are you grafting over in 2008?
  No Yes    If yes, how many acres?    Which varietal(s)?
17) What are the most difficult issues facing you this year with respect to contracts?
(Please check all that apply)
   Less $ per ton
 Time on vine
 Reduced tonnage
 Shorter contract length
 More work for less $
 Vague quality standards
 Other, please specify:
18) What's important to your business this year? (1 = not important; 5 = very important)
 
not important very important
1 2 3 4 5
The destination of your grapes & bottle price
Your revenue per acre vs. price per ton
Increasing technology to improve quality and reduce costs
Sharing hang time risks with wineries
Agreed upon harvest criteria and logistics
Lender understanding
19) RANK the following areas of your business that will require additional investment over the next three years. Please elect one ranking for each investment. (example: Vineyard Acquisition=1, Vineyard re-development=2, New vineyard development=3, Increased Mechanization=4, More Technology=5)
 
top priority
1 2 3 4 5
Vineyard Acquisition
Vineyard re-development
New vineyard development
Increased mechanization (automation of tasks)
More technology (data collection & analysis)
20) If you're in California, what average price per vine acre would you currently expect to pay in 2008?
 
Napa Sonoma Cenral Coast No. Central Valley
Newly Planted Vines $ $ $ $
Older Vines $ $ $ $
Developable land $ $ $ $
21) What percent of your new capital will come from
  %   Cash flow from operations
%   Equity Capital
%   Lease Agreements
%   Long term debt
%   Short term debt
22) What means does your business have to provide owner liquidity? (check all that apply)
 
  Outside Investors   Strategic Alliances   Sale to another vineyard company (or another entity)
  Public Offering   Inter-family transaction   Sale to Employees
  Reduce Holdup    
23) What is the primary source of water for your winery and/or vineyard?
  Well (subsurface water)
Pump from lake or stream (surface water)
Municipal
Irrigation district
24) Do you dry farm any portion of your vineyards?
  No Yes    If yes, on what percentage of your acres?   %
25) Please rate the following objective measures in terms of importance in determining when you pick?
(1 = not important; 5 = very important)
 
not important very important
1 2 3 4 5
Taste
Brix
Brix/Acid ratio
Phenolics
Anthocyanims
Other:
26) MECHANIZATION: Which aspects of your vineyard operation have you mechanized?
(% of your acres where you use machines)
 
Pre-pruning No Yes    If yes, on what percentage of your acres?   %
Pruning No Yes    If yes, on what percentage of your acres?   %
Leafing No Yes    If yes, on what percentage of your acres?   %
Shoot Positioning No Yes    If yes, on what percentage of your acres?   %
Thinning No Yes    If yes, on what percentage of your acres?   %
Harvesting No Yes    If yes, on what percentage of your acres?   %
27) Are you using GIS systems (Geographic Information Systems) such as SIS that measure soil data such as texture, compaction, moisture content, available water holding capacity, chemical properties, and vine vigor?
  No Yes    If yes, on what percentage of your acres?   %
28) Do you use some type of Evapo Transpiration (ET) system to determine how much to irrigate your vineyard?
  No Yes    If yes, on what percentage of your acres?   %
29) Are you using a weather station or other vineyard monitoring sytem in your vineyard?
  No Yes    If yes, what brand are you using?  
30) Please indicate what, if any, initiatives your vineyard is taking to become more "green". (select all that apply)
  None
Sustainable or organic farming or purchasing grapes that were sustainably or organically farmed.
Solar Panels
Green marketing/messaging
Calculating your carbon footprint
Alternative packaging