After several years of short wine grape crops in Napa Valley and Sonoma County, wine grape prices are moving in the right direction. As you can imagine, price increases for wine grapes bolsters regional real estate values. The overall trend is positive.
Below is a snapshot of the weighted average grape prices paid in 2021 for the more popular wine grape varietals found in Napa and Sonoma Counties. The numbers come from the California Annual Grape Crush Report. These figures help guide pricing for grape purchase agreements between growers and wineries.
Popular varietals like Cabernet Sauvignon and Pinot Noir are in strong demand across Napa and Sonoma. Areas like the Russian River and Sonoma Coast AVA’s are seeing increased activity, higher prices and desire for longer term grape purchase agreements. The same can be said for Cabernet Sauvignon throughout the Napa Valley from the Coombsville AVA to Rutherford and up in mountain areas like Howell Mountain and Mount Veeder AVA’s.
Weighted Average Price Paid Per Ton For Wine Grapes in Napa Valley and Sonoma County
| County Average | Price Per Ton | |||||
|---|---|---|---|---|---|---|
| Napa County | ||||||
| 2021 | Trend | 2020 | 2019 | 2021 High | 2021 Low | |
| Cabernet Sauvignon | $8,082 | + | $6,260 | $7,941 | $62,825 | $600 |
| Pinot Noir | $2,637 | - | $2,647 | $2,773 | $9,517 | $1,500 |
| Merlot | $4,032 | + | $3,217 | $4,055 | $29,527 | $1,200 |
| Zinfandel | $4,435 | + | $4,007 | $4,339 | $8,350 | $500 |
| Syrah | $4,251 | + | $3,686 | $4,086 | $8,836 | $1,800 |
| Chardonnay | $3,245 | + | $3,028 | $3,032 | $12,500 | $1,200 |
| Sauvignon Blanc | $2,635 | + | $2,453 | $2,485 | $7,250 | $1,000 |
| Sonoma County | ||||||
| 2021 | Trend | 2020 | 2019 | 2021 High | 2021 Low | |
| Cabernet Sauvignon | $2,728 | + | $2,460 | $3,056 | $21,630 | $800 |
| Pinot Noir | $3,518 | + | $3,147 | $3,949 | $18,634 | $200 |
| Merlot | $1,960 | + | $1,590 | $2,000 | $21,482 | $400 |
| Zinfandel | $3,113 | + | $2,624 | $2,737 | $19,164 | $400 |
| Syrah | $2,871 | + | $2,472 | $2,812 | $8,468 | $100 |
| Chardonnay | $2,284 | - | $2,311 | $2,414 | $15,000 | $450 |
| Sauvignon Blanc | $1,730 | + | $1,554 | $1,814 | $5,719 | $800 |
But currently, the strongest demand is for Sauvignon Blanc, a white grape that can be grown in high quantities compared to other varietals. Sauvignon Blanc has become increasing popular over the last several years as an easy drinking refreshing treat, perfect for warm summer evenings. According to Ciatti Wine & Grape Brokers most other varietals are in demand as well.
That said we are headed into another season of drought, this multi year run of less than average rain fall has people nervous about water diversions from the Russian River and some lower producing groundwater wells. That said, the dramatic rains of last fall and December did have some beneficial impact, especially to private water reservoirs.
For now, we are going to focus on the positive, conserve water, enjoy the strong demand for North Coast wine grapes and make the most of this growing season. Last but not least we are going to enjoy wine country and everything it offers.
Cheers!
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