California Wine Production Drops Again, But …

The Golden State generates over 90% of all wine produced in the United States. So sometimes numbers have to be put in prospective. Still, the wine grape tonnage created in California for the 2015 season dropped a second year in a row, according to the just released California Grape Crush Report.California_Grape_Crush_Report-2015

We at Paso Wine Barrels keep tabs on statistics like this because it can affect our business, whether the winery crop production is high or low. Until just recently, it was difficult to find used wine barrels, because crush reports over the past few years have been high. After two back-to-back record breaking years in 2012 and 2013, wineries were leery and caused vintners to essentially hoard their used wine barrels in case the next year was the same as the last.

Drought tough to beat

Drought has gripped California for five years and that finally slowed down grape-growers who saw a dip in 2014, but still it was a very strong output. So some wine-makers relinquished their barrels, but most held steady figuring to wait one more year. That year was this past season and the grape crush is the lowest it’s been since 2011.

However, the amount of wine produced last year was average by comparison to past seasons during the 21st Century. Therefore, even though production was down 5% year-or-year, California is still the fourth largest wine producer in the world behind France, Italy and Spain – and we’re neck-and-neck with Espana. In other words, the wine is still flowing big time in sunny California.

If California was its own country, it would rank fourth in the world - maybe third - in wine production.

If California was its own country, it would rank fourth in the world – maybe third – in wine production.

Those in the industry will say that they needed a breather because there was too much bulk wine available, which can drive prices down. Yet, the world as a whole is drinking more wine, but not producing enough of what the demand wants. Hard to know for sure how that works out considering the elongated Recession is gathering up steam for another big hit economic-wise.

Chardonnay down, but not out

Although the cost of grapes in California is down a bit overall, for some varietals like Chardonnay and Pinot Noir, prices have already increased, due to very low tonnage in 2015. So yours truly tries to pinpoint wineries who concentrate on those varietals. Locally, we had bouts of shatter on the Central Coast, which significantly reduced overall grape production. Simply stated, shatter is when the young grape cluster flowers are stressed to the point they fall off the vine. We knew it wasn’t going to be a good year and last harvest offered a glimpse into the troubles we were heading towards.

Chardonnay still leads the way as the number one varietal in California.

Chardonnay still leads the way as the number one varietal in California.

A few stats of interest from this harvest report show the leader with more than one-in-six grapes is Chardonnay. Cabernet Sauvignon is still king, at least among reds, and second place in the state. By the way, Thomson Seedless was the leading varietal regarding raisin production. Well over half a million acres in the Golden State have grapes growing on them.

A final report will be out in about a month with the complete rundown of all that is known of last years grape crush. Only five other years in state’s history of wine production had higher tonnage. So yes, the crush is lighter than the previous three years, but perspective will tell you that the wine industry is doing just fine in California.

Additional source: Sotheby’s Wine Encyclopedia

Salute!

Daryle W. Hier

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