Industry News Update | 6-22-17

Global Market Report, June 2017, by Ciatti Global Wine & Grape Brokers

Weather and Brexit Uncertainties Hold European Prices Firm
The UK political climate, depreciated currency, and increasing excise duties leave the state of the UK supermarkets unclear. The state of the UK and European markets will be clearer after the June 18-21 conference on Brexit at Vinexpo in Bordeaux. Despite the April frost and Spain running out of 2016 bulk, France still holds good inventory levels and excellent opportunities for sourcing.

California Harvest on Course and Average-Sized
Though some regions bunch counts appear to be down from 2016, California growers remain confident in fulfilling their commitments this year. The California spot market for grapes remains quiet as most of the 2017-2019 harvests have already been pre-contracted out.

US Premiumization Trend Causing Increased Bulk Wine Pricing
The increased demand for higher price point wine is driving bulk wine and grape prices up. The $15-19.99/bottle segment has grown the fastest since 2016, followed by the $20+ segment. Though prices remain firm, the California Pinot Grigio market and the Washington Merlot market remain soft as they still hold excess 2016 inventory.

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Market Update, May 2017, by Turrentine Brokerage

Price isn’t Everything
As prices are not always readily available and often commingling spot market prices with multi-year contracts, price isn’t always the best representative of the quality of the transaction. As a grower, consider the financial state of the winery you’re transacting with, its marketing abilities, and its reasonableness. As a buyer, consider the quality potential of the grapes, the skill of the grower, and the reliability of the grower to deliver the quality and quantity in both good and bad harvest years.

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CAWG Seeks Winegrape Exemption from FDA’s Produce Safety Rule

CAWG Requests Winegrapes Exempted from FDA Produce Safety Rule
The FDA failed to include winegrapes as an exclusion to its list of commodities that must comply with its updated Produce Safety Rules. Though the FDA acknowledges that winegrapes are processed prior to consumption, eliminating the risk of foodborne illness, growers will be required to produce and file paperwork with every winegrape transaction beginning in 2018. Growers will also be required to maintain proof that their winegrapes were processed into wine, creating timely, costly, and unnecessary regulatory maintenance for growers and producers. The California Association of Winegrape Growers has requested winegrapes be added to the list of exempted commodities, though the results of this request are to be determined.

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