Always interesting to read about and follow the trends. While it, due to the 18-24 months process of Red winemaking, may be difficult or impossible to correctly correlate grape pricing to shipment volume/market value, I’m guessing the 5.7% and 5.3% declines in volume/value is relating to the (smaller) 2021-vintage?
It's an interesting point. But given that the data for other wines (chard, PN and red blends) were all up according to their data this is likely not the issues.
I bet it has to do with the winery definition ordinance which requires 85% Napa grapes in a bottle labeled Napa. There are so many new wineries needing Napa grapes and production maybe hasn't really expanded in a long time, haven't kept up with it but I don't think there have been a lot of new vineyards. So what you have is a supply crunch at the same time actual sales are going down. That would also mean bottles sitting in storage.
Always interesting to read about and follow the trends. While it, due to the 18-24 months process of Red winemaking, may be difficult or impossible to correctly correlate grape pricing to shipment volume/market value, I’m guessing the 5.7% and 5.3% declines in volume/value is relating to the (smaller) 2021-vintage?
It's an interesting point. But given that the data for other wines (chard, PN and red blends) were all up according to their data this is likely not the issues.
I bet it has to do with the winery definition ordinance which requires 85% Napa grapes in a bottle labeled Napa. There are so many new wineries needing Napa grapes and production maybe hasn't really expanded in a long time, haven't kept up with it but I don't think there have been a lot of new vineyards. So what you have is a supply crunch at the same time actual sales are going down. That would also mean bottles sitting in storage.
That is likely one element of what is a complex issue. The recent SVB report did show a lot of inventory piling up.
I agree, it's one factor in a complex scenario.