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November 20, 2009 
LSU Football
California's 2009 grape harvest filled with problems for growers The soft economy, sluggish high-end wine sales and unusual mid-harvest rains have conspired to bring the 2009 grape harvest to an unceremonious end for many grape growers.

As the harvest draws to a close this week, many growers are heaving a sigh of relief. Most of the crop was harvested before the rains interrupted what had been a nearly ideal growing season. And most growers had contracts to sell their fruit at last year’s record prices.

But many growers without grape contracts were unable to find buyers for their fruit. Some were offered such paltry prices that they were either forced to crush the grapes themselves or leave them to rot on the vine, a sorrowful sight for one of the nation’s most prized crops.

“Between the economy and not have any contract and the rain hitting just as the fruit was ripening, it pretty much did us in,” said Lyle Hatten, owner of Silverwolf Vineyards in Kenwood.

Virtually all of Hatten’s four acres of merlot, 16 to 18 tons worth, succumbed to mold after no buyers stepped forward. The heavy rain in mid-October, followed by several days of humid, warm weather gave the botrytis mold a foothold in Hatten’s vineyard. By last week, the sugar levels in the grapes, diluted by the rain, inched back up, but the mold was growing faster and destroyed any chance of salvaging some of the crop. “By the time we picked on Friday, there was a lot of mold,” Hatten said. “It was everywhere.”

Estimates of how much of the North Coast’s grape crop will go unharvested this year are hard to come by.
The increase in activity at custom crush facilities is a clear sign that more growers lacked buyers for their fruit and are turning it into wine themselves, said Nick Frey, president of the Sonoma County Winegrape Commission. “It’s less clear how much got left out there,” Frey said.

Shannon Gunier, executive director of the Lake County Winegrape Commission, estimates about 20 percent of that county’s crop may be left on the vine because sellers never showed up. It was a wake-up call for many Lake County growers and a sign to some that lean times lie ahead. “It’s not business as usual,” Gunier said. “Some people are thinking it will bounce back, but we don’t think it will.”

Brian Clements, a grape broker with the Turrentine Brokerage in Novato, said the total amount of grapes left on the vine is tiny compared to the North Coast’s overall crop. Last year, growers in Sonoma, Napa, Lake and Mendocino counties harvested 356,000 tons of grapes valued at $860 million. “I would say there’s still a couple thousand tons out there — a very, very, very small percentage,” Clements said.

The vast majority of the uncontracted fruit wasn’t left on the vine, but rather was sold to wineries at low prices or turned into wine by the growers, often through innovative partnerships with wineries and custom crush facilities, he said.

Some large wineries stepped in at the last moment and purchased grapes, but at abysmal prices and lower levels than growers had been praying for.

“The wineries were coming in an offering the picking costs plus a little,” Clements said. Instead of thousands of dollars per acre, growers were offered a few hundred, and many desperate growers took it, Clements said.

The low prices, lack of buying by wineries, and long, painful process of helping growers come to grips with the new reality of the market made 2009 a brutal year, Clements said. “I’ve been in this business, like, 21 years, and this is darn near the toughest I’ve seen,” Clements said.

Stanley Feingold has been growing grapes on Sonoma Mountain for nearly two decades and he’s never seen anything like this, either. “It’s the first time in 18 years I haven’t sold my grapes,” said Feingold, 77.

When he failed to find a home for his 15 tons of syrah and merlot, Feingold just decided to give them to Glen Ellen winemaker Tony Coturri.

“My options came down to throwing them on the ground or giving them to Tony, so I gave them to Tony,” Feingold said. He trusts Coturri will make them into great wine, and they’ll strike a deal down the road over how to split the profits, Feingold said.

But in the meantime, Feingold is out about $60,000, a payday he and other growers worked toward all year only to see it vanish before their eyes. A former attorney and civil engineer, Feingold said he’s lucky he can afford to carry those costs, but many may not make it, he said. “It’s a supply and demand issue, and it’ll work itself out, but some people won’t survive the work-out,” he said.

The suffering of a few growers should not overshadow the numerous positives of the 2009 harvest, several growers and winemakers said.

While things looked grim mid-harvest, with plenty of fruit still unsold, Sonoma Valley grower Ned Hill said he ultimately was able to sell all his grapes to existing winery clients, albeit by slashing prices.

“The potential was there for very big losses,” Hill said. “I’m happy to say we did work through it.”
Chardonnay grapes that Hill sold for $2,200 a ton last year, in one case, only sold after he dropped the price to $1,800 to an established customer, a 20 percent cut.

On the quality front, however, all agree the season was stellar. The cooler weather allowed the grapes to mature more slowly, letting the complex flavors develop before sugar levels got too high, Frey said.

Frey predicts the Sonoma County crop will return to an average yield of 200,000 tons following last year’s unusually light 168,000-ton crop.

While it’s shaping up to be a big crop, it’s also going to be a beautiful one for winemakers, said Cory Beck, winemaker at Francis Ford Coppola winery in Geyserville. Early tests on the Sonoma County fruit show it to have strong color and tannin levels, up about 20 percent over last year, Beck said.

“We’re ecstatic about the quality,” Beck said. “It’s a phenomenal vintage.”





Petite sirah grapes rot on the vine at Ron De Natale's Healdsburg vineyard on Monday. De Natale estimates he left 1 ton of petite sirah and sangiovese grapes on the vine.


Category: Food & Drink
Related Forum: Food and Drink Board
Comments (13) | Add Comment
Posted by CAD703X on 11/6 at 1:24 a.m.

good. wine is overpriced as it is.


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Posted by Tigah in L.A. on 11/6 at 2:13 a.m.

quote:

good. wine is overpriced as it is.
I agree. I'm not sure how much the prices will come down, though. Especially with wines in the $40 and up category.


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Posted by charlied on 11/6 at 8:45 a.m.

Leaving next Friday for Healdsburg,Sonoma and Napa for 9 days so does this mean I can get some bargains on wine and have it shipped to me at home??


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Posted by Foot on 11/6 at 8:59 a.m.

Part of this has to do with farming costs. There's this way of thinking among grape growers, whom might not know exactly what they are doing, to do what their neighboring vineyard does. Taking passes through the vineyard throughout the season in the form of shoot thinning, leaf pulling, and cluster thinning all make the price of the fruit go up, when these things can be avoided with proper planning and management. That's one of the main influeneces on the fruit price. The other is the farmer that beleieves he knows what he's doing and demands a higher price say for his Cabernet than his niehhbor, "whom obviously his fruit can't be as good as mine" mentality.

Then there's the Euro affecting barrels and most of the best winery and vineyard equipment comes from Europe.


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Posted by Foot on 11/6 at 9:03 a.m.

Try to taste the 2007s. Suppose to be great. You might fine some deals out there as well.

I need to get up there to try all the 07s myself.


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Posted by Tigah in L.A. on 11/6 at 10:48 a.m.

quote:

Leaving next Friday for Healdsburg,Sonoma and Napa for 9 days so does this mean I can get some bargains on wine and have it shipped to me at home??
I'd say almost certainly you'll find some bargains at the wineries. Check into joining the wine clubs that most wineries have. You'll get a 20% discount on any wine you buy and often you can cancel your membership at any time with no further requirement.


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Posted by charlied on 11/6 at 10:53 a.m.

Superb, Thank you. Any particular wineries that are special in their appearance or treatment? Our first trip and we are eyes wide open already!!!


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Posted by el tigre on 11/6 at 11:10 a.m.

quote:

I'd say almost certainly you'll find some bargains at the wineries. Check into joining the wine clubs that most wineries have. You'll get a 20% discount on any wine you buy and often you can cancel your membership at any time with no further requirement.


thanks. 2 questions:

1. when do you think these harvest problems will be reflected in pricing?

2. will these values carry over to buying futures from wineries, or will those priced hold steady?

also, did you hit BevMo for their nickel wine sale?


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Posted by Tigah in L.A. on 11/6 at 12:12 p.m.

quote:

Any particular wineries that are special in their appearance or treatment? Our first trip and we are eyes wide open already!!!
Last time I was in Napa I visited Mondavi, Clos du Val, Rombauer and Franciscan. All were good, especially the Mondavi tour.

Here are a couple of links that might help.


LINK


LINK





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Posted by Tigah in L.A. on 11/6 at 12:18 p.m.

quote:

1. when do you think these harvest problems will be reflected in pricing?
I've seen a little movement already on some of the wines already in the bottle. As for how the 2009 problems will affect future prices, I don't think anybody knows right now.

quote:

2. will these values carry over to buying futures from wineries, or will those priced hold steady?
So far, future prices at the wineries I've checked seem to be holding steady.


quote:

also, did you hit BevMo for their nickel wine sale?
I did, and I did buy some wine, but nothing from the 5 cent sale. The pickings were slim by the time I got there.

I did buy a beautiful malbec (Colome) that I'm going to review soon, as well as a few Rhone reds.



ETA: here's a link to a good story about French winemakers trying to tout the quality of this year's vintage, and the sceptical reaction from critics.

LINK


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Posted by charlied on 11/9 at 7:23 a.m.

Those wine tour links are a great help. thank you!!!


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Posted by coolpapaboze on 11/9 at 9:49 a.m.

What I've seen and heard from friends in the business is that the deep discounts on high end ($50 and above) wines are primarily found with previously released vintages (last year's release, or the prior year's). There's a significant back up in the pipeline and distributors are needing to make room for current releases. In larger markets I think you'll see large production "reserve" wines (Mondavi, Phelps, Beringer) that typically retail in the $100+ range, selling for half price or less. You might also be able to get some deals on these type of wines at the wineries. Wineries don't like to dump large quantities of discounted wines in their typical distribution channel, hence much of that stuff ends up at Trader Joe's, Costco, or in foreign markets. I think it's inevitable though that the inventory back up is going to catch up with them and we'll start seeing deeper discounts and sales on more common wines.


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Posted by Tigah in L.A. on 11/9 at 10:52 a.m.

quote:

What I've seen and heard from friends in the business is that the deep discounts on high end ($50 and above) wines are primarily found with previously released vintages (last year's release, or the prior year's). There's a significant back up in the pipeline and distributors are needing to make room for current releases
I'm seeing this too. Fess Parker in the Santa Ynez Valley recently offered some of their pinot noirs that normally sell in the $55 range for $39. They offered two top end single vineyard syrahs that normally sell for $45 for $31. Both sales featured wines from the 2005 and 2006 vintages.


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