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 arrives into the picture and one of the byproducts was people consume 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 causes 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 is what we expect 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 go unsold and we do not count those. 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!
Some additional articles that might be helpful:
What is a vineyard really worth? It depends.
Wine Country Real Estate Building Blocks
Looking to Buy A Winery, Start Here
So where exactly is wine country?
Buying a Vineyard? A short course to the basics.
If you are serious about your wine country search, please contact us today. Last but least, here is link to more local resources.
It goes without saying that the vineyard, wine grape and wine industry has an impact on real estate in Napa Valley, Sonoma County and all other wine regions. Be sure to check back often to read current and past wine country real estate and wine industry news. Sourced from industry experts to keep you informed.... Read more
Based on the grape crush report it would appear Napa Valley and Sonoma County wine grape prices continue their upward climb as we enter 2024. The one exception is Sonoma County Cabernet which noted a very modest drop from the previous year.... Read more
Are you considering a move to wine country? Does the image of rolling hills, rows of vineyards in a bucolic setting come to mind? If so, purchasing a home, vineyard, or winery real estate may be your next step. Buying and selling wine country real estate isn't always black and white.... Read more
The Russian River Appellation Neighborhoods are known for growing some of the most sought after Chardonnay and Pinot Noir vineyards in the world. ... Read more
Throughout the year you can check back here to see any notable publicized vineyard and winery sales in 2024. The various sales and transactions are not only interesting but may also point to trends that can impact real estate in Napa, Sonoma and other wine country regions. This page will be updated throughout the year […]... Read more
When moving to wine country, or even after living the area for decades, there will be a time when you need some expert help and wine country resources. Here are links to various experts in Sonoma and Napa Counties. Wine Country Experts – Sonoma and Napa Architects Designers Lenders Legal Advisors Appraisers CPA / Financial […]... Read more
Overall prices remain strong as we move into the 2023 growing season. At this stage, early spring, grape buyers are trying to still discern the size of the upcoming crop.... Read more
After several years of short wine grape crops in Napa Valley and Sonoma County, wine grape prices are moving in the right direction. ... Read more
Real estate markets are local. From Healdsburg to Sebastopol in Sonoma County, and Calistoga to Yountville in Napa Valley, wine country real estate is unique. ... Read more
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.... Read more
The new normal. I really don’t like that phrase anymore. 2020 has brought with it so many “new” normals that it is hard to keep track. ... Read more