March 2021
2020 was a strange year in deed. That said, the numbers are in as we review the final grape crush report created by the California Department of Food and Agriculture.
wine grapes napa sonoma
For any number of reasons the last year was like no other. If your neck still hurts it probably has something to do with the market resetting whiplash we experienced. The industry started the year with a severe oversupply of both wine grapes and bulk wine, then by the end of 2020 the industry was essentially back in balance.
Several factors were at play to make this happen. First, and the most benign, was a lighter than average crop. Next up, Covid stepped into the picture and one of the byproducts was people consumed more wine than usual. Last but not least, and most devastating to areas of the North Coast (Napa, Sonoma etc…), were the historic wildfires that took place during harvest. This caused a great deal of fruit to be left on the vine due to fears of smoke taint. In Napa and Sonoma, the 2020 harvest will be one of the smallest on record. The silver lining, if there is such a thing in these circumstances, is that the oversupply was wiped out.
| County Average | Price Per Ton | |||||
|---|---|---|---|---|---|---|
| Napa County | ||||||
| 2020 | Trend | 2019 | 2018 | 2020 High | 2020 Low | |
| Cabernet Sauvignon | $6,260 | - | $7,941 | $7,925 | $65,919 | $200 |
| Pinot Noir | $2,647 | - | $2,773 | $2,707 | $8,329 | $650 |
| Merlot | $3,217 | - | $4,055 | $3,760 | $20,000 | $300 |
| Zinfandel | $4,007 | - | $4,339 | $4,013 | $10,000 | $200 |
| Syrah | $3,686 | - | $4,086 | $3,956 | $9,023 | $200 |
| Chardonnay | $3,028 | - | $3,032 | $2,917 | $13,261 | $800 |
| Sauvignon Blanc | $2,453 | - | $2,485 | $2,423 | $20,000 | $500 |
| Sonoma County | ||||||
| 2020 | Trend | 2019 | 2018 | 2020 High | 2020 Low | |
| Cabernet Sauvignon | $2,460 | - | $3,056 | $3,114 | $19,872 | $100 |
| Pinot Noir | $3,147 | - | $3,949 | $3,802 | $14,460 | $100 |
| Merlot | $1,590 | - | $2,000 | $1,962 | $19,872 | $120 |
| Zinfandel | $2,624 | - | $2,737 | $3,102 | $15,020 | $100 |
| Syrah | $2,472 | - | $2,812 | $2,774 | $6,500 | $375 |
| Chardonnay | $2,311 | - | $2,414 | $2,367 | $12,128 | $200 |
| Sauvignon Blanc | $1,554 | - | $1,814 | $1,793 | $5,000 | $200 |
The chart reflects a downward trend in pricing across the board. This was not unexpected and is typical during the oversupply part of the cycle. This may be changing, 2021 will be a harvest to watch.
When reviewing the numbers, please keep in mind the grape crush report prices don’t always reflect the true market. In a time of oversupply this typically leans towards the market being weaker than the crush report suggests due to only reporting grapes under contract. In an oversupply scenario, grapes can go unsold and those are not accounted for. This is what we experienced in 2019 / 20. On the flip side, due to the unforeseen light crop and fires last year, the market is tighter than expected which may force wineries to start engaging in grape contracts going forward.
Let’s all work towards keeping the market in balance by enjoying your favorite wine and looking forward to a less dramatic year.
Cheers!
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