Californian acreage dedicated to premium wines forecast to increase to satisfy consumer demand
Demand for wines selling at more than $10 is set to grow, with the numbers of acres of Californian wine grapes dedicated to this predicted to increase by double digits in the next few years.
This has already boosted prices for fruit from outlying areas of the North Coast, an industry expert has claimed. Nat DiBuduo, president of grape marketing group Allied Grape Growers believes that commercial production of Cabernet Sauvignon grapes earmarked for making wine in the $10 - $20 bracket will leap by 20% between 2016 and 2019, an increase of 35,000 acres.
“This is the hottest price segment,” he said, speaking earlier this week at the 22nd annual Vineyard Economics Seminiar in Napa. “Everybody wants a $10 - $20 bottle of wine.”
All of the key wine grape varietals are estimated to see a growth in the number of acres dedicated to their growth, with the exception of Zinfandel and Merlot. Chardonnay acreage is expected to jump by 9%, while Pinot Noir will see plantings up by 14%, Sauvignon Blanc by 5%, Petite Sirah 27% and Pinot Grigio 16%. Merlot acreage is predicted to dip by 2%, while Zinfandel will remain flat.
This growth will be aided by the replanting of Cabernet vines that have reached the end of their commercial life, or have been stricken by disease, explained DiBuduo. He added that producers in this price category are extending their supply by blending with cheaper grapes or wine up to the permitted levels.
For those wines in the $20 plus category, acreage for Pinot Noir and Petite Sirah are both expected to grow by 7%, Cabernet Sauvignon by 3%, Pinot Grigio by 4%, while Chardonnay and Sauvignon will remain flat, and Merlot and Zinfandel will both drop by 4% by 2019.
DiBuduo pointed out that demand for premium Cabernet Sauvignon meant that some growers were pulling up some good quality Sauvignon Blanc grapes and replanting with Cabernet Sauvignon, even in areas where the latter does not thrive particularly well.
“When you’re getting $6,000 a ton for Cabernet Sauvignon, everyone is trying to plant it.” This is driving plantings in other areas too, he said, with prices from Solano County up by 13% on average, driven by Suisun and Green Valley.
E&J Gallo for one has just snapped up vineyards in west Solano. Cabernet Sauvignon has pushed up average prices in Lake County by 7% over the past six years, and those in Mendocino County by 3.5%. Meanwhile, Sonama average prices are up by 8% and Napa by 6%.