We hope everyone had a wonderful Thanksgiving!
A YEAR IN REVIEW
Three weeks ago we shipped our last grapes to winery customers, and last week, we shipped our final loads of customer-owned grapes (we facilitate the handling and shipping). We started harvesting on August 8 and here we are, almost three months later, with our last shipments. It was our longest season ever with some of the most difficult challenges we’ve ever faced. It was a season that required patience for all concerned (growers, customers, and us!). It was a season with so many twists and turns that we would like to review and project for the future.
TRANSPORTATION
Transportation played a major issue during the season. It was both a major economic and logistic issue. Rate increases were horrendous. Generally it was a 30% to 40% increase across the board— regardless of destination. Even more of problem was the lack of transportation options. Most truckers did not want to make two pickups and forget about two drops. We prided ourselves in past years with our ability to ship early maturing grapes out in a timely manner to various wineries around the country. This year, we had to wait until later maturing grapes were harvested so that an almost complete full load volume was available. This put a lot of pressure on facilities, employees and material availability together with cost issues.
WEATHER
Weather generally cooperated to the extent that there was no moisture during the season. This helped tremendously because we had to store grapes longer than normal due to the transportation issues. The season started with some very hot weather and generally continued warmer than normal throughout the season.
Three weeks ago we experienced one of the biggest storms ever in Northern California. Rainfall exceeded historic daily totals for many areas. This rain was a Godsend. With drought conditions throughout the State, many growers had been notified that no water would be available in 2022 from their water districts, period. Well water would be their only source. If that policy has to continue, a large amount of growers would not be able to farm their acreage. Many grapes would be affected. Let’s hope this storm is the first of many more.
GRAPES
The overall crop for almost all varieties in all areas, except for Cabernet Sauvignon, was generally lighter than normal. This was especially predominant for white varieties. The lighter crop had its formation due to the very dry winter, reduction of water availability from water districts, and the very hot weather in late August and early September. Almost all varieties matured at the same time. Merlot, Zinfandels came right on the heels of Chardonnay and Pinot Noir. There was a period of two weeks when we had to harvest grapes in an almost hysterical manner. Most Cabernets, however, took their time, and in late September, we had to stop picking to wait for our last Cabernets to mature.
Prices for all varieties rose as the season progressed for any grapes that were not contracted. Those rises were above the already higher prices contracted for the 2021 season. We will see prices rise again in 2022. How high that price rise will depend on the final 2021 total crop. Most grapes contracted in 2021 were signed up for minimum prices for five years. Actual prices that will be paid or promised for 2022 may be well above their minimum prices.
SUPPLIES
We started the season with some of our packing supplies stuck in a Los Angeles Port. We had no idea when we would receive them. We had ordered them 6 months earlier. Luckily they arrived a day before we needed them. One item we did not order early and we never had had to do it, was pallets. Our usual supplier had NONE, we finally found some but with a cost of over $10.00 from previous years some were $25.00 more.
LABOR
Labor costs also increased for the 2021 season. That was anticipated but we were lucky to have a very loyal picking crew and storage personnel. We promised our field labor a substantial picking bonus, if they would stay with us throughout the season. We were happy to pay it because we had a consistent, reliable crew throughout the season. Labor will go up again next season as the minimum rate goes up for the State in 2022.
GOOD DEVELOPMENTS
Several very good developments occurred this year that need to be mentioned. We have sourced a new supplier for bulk juice needs for our winery customers. Everybody was happy with that development. We have also greatly increased the relationship with a farming and brokerage entities. This entity has a large source of grapes especially Italian varieties. Also this is the first time we shipped bulk Cabernets, Pinot Grigio and Merlot from the same vineyard we have sourced our coastal Pinot Noir in San Benito County. We also have been introduced to growers from other Coastal areas.
BULK WINES AVAILABLE
The following bulk wines are available out of the Clements Hill sub AVA of Lodi. Please contact us for pricing.
16,000 gallons Cabernet Sauvignon – 2021
4,230 gallons Montepulciano – 2021
660 gallons Montepulciano – 2020
730 gallons Nero D’Avola – 2021
625 gallons Albarino – 2021
1,450 gallons Sauvignon Blanc – 2021
LOOKING FORWARD
One heading from a wine blog headlines “Historically Low World Wine Production Expected”. From other blogs we are reading and our experience here in California, we agree with that assessment. Also with the very low availability of bulk wine (and the prices we are hearing for them) all wine will increase in price. We are so happy that we sold a lot of grapes and juice to our customers. It is obvious that retail prices must go up. We hope all our customers will make a great wine and equally their production will be extremely profitable.
We hope everyone has a nice holiday season, and please contact us if you’re interested in any of the available bulk wines.
