I’m working on a project for a large Chinese food distribution company that has had experience in importing wine, but is just now seriously pursuing a California program. My work is showing a very high percentage increase in Napa Cab, especially at the low end of the market (ie- a Napa Cab that was around $8 wholesale last summer is now $12 through a distributor, and even higher for a private label program with juice sourced today. That’s 50%+ in less than a year).
Question… Anyone out there who would dispute this? Anyone have a suggestion in case I’m looking in the wrong places?
I KNOW everyone (and their brother) is out there sourcing for China. I’m simply trying to be sure I get my clients the best info I can.
Yeah, exactly. And the low end of the market is often bulk juice, too, probably particularly for anyone who’d have enough to handle a China deal, so those wines are going to be going away. Same problem is going to hit any negociant/virtual wineries out there in CA; they’ll either be unable to get the grapes/juice/wine in the first place, or the cost will be so high to them they’ll be priced out of the market. I guess you’d say were at the start of a “market correction.”
If I needed any more evidence… a lower-end Napa Cab I used to buy for my shop (made by a large private label producer) then wholesaled at around $7, but has risen to $12 (over 4 vintages) … AND now I’m told they have suspended production completely.
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