SOME ENCOURAGING NEWS:
With all the question marks about the general economy and with a slight decrease in general wine sales there is a general pale over the industry. But we are encouraged by a couple of articles and our own observation.
From the Wine Business Monthly the United States is now home to 11,691 wineries. This is nearly 400 more than in 2021 and 1,215 more than in 2020. Since 2019, the number of U.S. wineries has grown at a rate of 4 percent, which matches the growth rate since 2010. Outside of California, Origan and Washington there are 4904 wineries. “The sustained growth of wineries, through the pandemic and associated economic turmoil, is encouraging, especially when compared to the decline seen in the restaurant industry and other on-premise and retail outlets over the same period.”
From the IWSR, the leading source of data and analysis on beverage alcohol marker, shows there were 4 million more wine drinkers consuming wine on a weekly basis in 2022 than in 2018, a strong rebound from the Covid-era low point in 2021. “Since the pandemic, however, there’s been a bounce-back in overall wine participation rates in the US: the number of regular wine drinkers (RWD) grew by 14 million between 2021 and 2022. This momentum is mainly coming from those under the age of 40, and the wine industry is seeing a growing influence not just of the most engaged consumers (aged 25-54)”
From our own observation at the Unified Wine & Grape Symposium in Sacramento in January as an observer at the recent Texas Annual Conference as an Exhibitor there was a very positive attitude about the future. The attendance in Sacramento exceeded anything I had ever experienced. In Texas wineries were very bullish about their industry regardless of the growing problems experience the last couple of years. We are playing a part to help some of these wineries fill their supply gap.
WE ARE CHANGING:
As some of you may already know my daughter Alison Colavita will be no longer working with F. Colavita & Son. She received a wonderful carrier opportunity that she couldn’t turn down.
Starting in 2020 we started working with a grower that had fantastic history in the wine grape industry. He was head of field operations for a large wine grape shipping company. His father was also involved in the industry as fieldman and currently his father is still active as a grape broker for wineries. On top of all that he is an excellent grower specializing in Italian Varieties mainly located in the Clements area. Last year we worked very close with him to overcome a lot of the problems the 2022 season presented. His name is Kevin Pitto.
This winter through Kevin we were introduced to a professional produce salesman who was going to strike out on his own. He also worked for a large wine grape shipping company and another large local produce shipping company. He is striking out on his own and in the spring he will be working with a very large cherry growing entity. In the fall he will be working with us. His name is Matt Nowak.
Eventually I can see them becoming a part of our company. My younger daughter Anna wants to be more involved in the business, but at this stage three young children are a priority. How all this will work out with proper protocol will be developed over this spring and summer. My object is to make sure our customers and growers will know that F. Colavita & Son will have solid continuity into the future.
SEE YOU IN LANCASTER
Both Matt and I will be exhibiting in Booth 221 at the Eastern Winery Exposition Wednesday March 15 and Thursday16. (We will be leaving early afternoon on the 16 to catch our return flight.) Please stop by and say hello. If you need some passes, please let me know.
WINTER WEATHER
We are experiencing some of coldest and, thank God, wettest winter in a long time. Hopefully drought conditions will disappear. Temperatures are in the 30s at night and not going higher than the middle 50s during the day. There will be some serious frost damage for Almonds throughout the State, and I wouldn’t doubt on some Citrus. Grapes are still very dormant.
THE PERLIMINARY CALIFORNIA GRAPE CRUSHCROP REPORT AND MARKETING CONDITIONS
The 2022 wine grape was light for the third straight year in a row. The total was 3.35 tons (Not included were the total raison and table grapes crush). It was the lightest in over a decade. It was less than projected due to frost, excessive heat and the continuous effects of drought. In all respects the light crop may have been a blessing. The crush probably put in balance supply and demand with the challenging consumer sales growth environment.
With the current demand needs in question there is hardly any movement in new contracts being issued and wine sales. The exception may be the North Coast areas and we are hearing of some activity in the Central Coast.
