By Justin Charbonneau, GrapeConnect Co-Founder
April 1st, 2019
Time flies! The first quarter of 2019 is now in the rearview and we’re excited to share the first GrapeConnect Market Pricing Report of the year.
Earlier in the new year, we wrote a blog post that voiced our thoughts on why market dynamics would encourage an exciting spot market in 2019. One of the key trends we highlighted was the inevitable drop in CA grape and bulk wine pricing, which we have definitely started to see in a big way.
However, that’s not at all to say that we’re seeing a uniform impact across varietals or regions; for example, advertised pricing for Merlot has remained fairly inelastic for both bulk wine and fruit across the major U.S. markets (example analysis for bulk wine shown below):
One type of analysis we display in the Market Pricing Report is a comparison of average market pricing for Q1 of 2018 vs. that of Q1 2019; we did this for the top 5 varietals by listing volume (see the ‘Assumptions & Methodology‘ section in the report for more information) and parsed data by state. Below, you can see a summary graph illustrating the varying levels of percentage-change in pricing by respective varietal and listing-type:
We’re similarly seeing divergent fluctuations in bulk wine and grape pricing outside of California. Interestingly, prices are softening in Oregon whereas they appear stable or even increasing in Washington:
To provide meaningful pricing data for a larger number of varietals and with greater granularity, we also assembled average-pricing heat-maps that reflect a Year-to-Date time horizon. A heat-map preview for Cabernet Sauvignon bulk wine is shown below, where the higher-priced appellations are focused toward the top of the visualization:
Our team hopes this report proves useful to the industry, and wholeheartedly stands by our prior statements. We continue to believe that the market conditions we’re beginning to see, and are likely to increasingly see play-out moving forward, expose numerous spot market buy/sell opportunities.
Click here to download the full report (PDF)
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