We hope everyone is doing well during these difficult times. We have been preparing for the upcoming harvest and addressing concerns related to COVID-19. The picking and packing crew that we use for 95% of our harvesting needs is currently picking cherries for the fresh market. Before harvest everyone’s temperature is taken and results documented. Social distancing and other safety precautions are observed constantly during the day. Together, with the use of our Certified Global G.A.P. Food Safety cold storage, you can be assured that our grapes will be handled by everyone in the most responsible manner that is possible.
COVID-19 and the Wine Industry
There are still a lot of unknowns but there are a few facts that can be stated. Retail and wholesale wine sales have increased. This can be seen by observing how large wineries in California are busy bottling and selling wine. We are also selling some wine. As we stayed home, more wine and other alcohol was consumed (except for beer). I have heard many reasons for that phenomena. Maybe more meals with family or just plain relaxing while at home or something to kill the boredom. The simple truth was the fact that no alcohol was available outside the home in any social environment. Higher end wines are in trouble. Most upper end wines from smaller wineries are sold to restaurants or out of tasting rooms. That movement disappeared except for curbside pickup. How it will change over the next few months is anybody’s guess. The industry started the year with a glut of wine. Even now there is a glut of most wines. I have heard that most of the 2018 crop was still in the tanks. Wines that can be priced from $10.00 to $25.00 are the ones that have some market presence. We have heard from some of our customers. Those customers who have distributors and have some grocery shelf space say they may have to increase their orders for this year. Some wineries are putting a hold on their orders because of concerns about timing of their mobile bottling lines and not enough storage space. For the majority who depend on tasting rooms and local restaurants there is a big question mark. A lot depends on when their particular State’s rules for opening up occurs and initial restrictions.
COVID-19 and the Grape Industry
Without the bump in the in-store movement of wine, this year would have been a very difficult year for growers without contracts. Because of this bump, movement of wines has caused some grape activity to occur in the Lodi District. There has been some renewal of contracts of Old Vine Zinfandel and even some new contracts for Cabernet. For the Cabernets, contracts are at lower base price than previous long-term contracts. There is even some talk that wineries may be looking for Merlot. I have heard of no activity in other areas of the State for any varieties. In the May 18, 2020 Wall Street Journal there is an article by Jim Carlton. There is a picture description that states “The effects of Coronavirus-related lockdowns have been particularly painful for Sonoma and Napa winemaking counties.” In conclusion, for our wineries and home winemakers we MAY see a slight rise in the prices for grapes. For higher end areas, we may still see further drop in prices or prices similar to the end of last year.
Weather and Timing
Throughout the late winter and early spring, we have experienced ideal weather for the grape crop. It was not too hot or too cold. There has been some rain but one could consider it a relatively dry winter. At this time harvest does not appear to be as late as last year and may be a little early.
Grape Crop
Monday, 5/18/20, was the first day we went out and looked at the grape crop and talked to a few people. Most varieties have finished blooming and are shedding their blooms. It is much too early, but right now we are looking at a pretty fair crop. Bunches are bigger than normal but in some vineyards bunch counts are down. Old Vine Zinfandel is lighter than last year. Grapes pictured below are from Lodi 5/18/20.
