I know there is a lot of talk regarding the excess supply of wine and the downturn of the grape markets.
Adding another data point to the topic, Antica Terra is selling grapes this year. I know wineries do this all the time, but what’s surprising to me is they are advertising this on their social media platforms. In my experience, the higher-end farms have never had a shortage of customers.
They are selling 7 acres worth of Pinot Noir and Riesling. The entire estate is only 11-acres.
Curious to know others thoughts.
They bought Keeler Estate about 10 months ago, which had about 30 acres planted. Maybe the fruit is from there?
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Could be a great year to hire someone to make wine for your project. Lots of fruit out there. Search Grapes & Bulk Wine
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Wow, that’s a lot of Pinot Noir for sale this year!
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I didn’t know they acquired additional land. That’s likely what this is. Especially because I do mot recall them producing a Riesling in prior years. I may be wrong about that, but it’s likely the Riesling is from their new acquisition.
Out of curiosity, how do these kind of deals work? The grapes haven’t been grown/picked yet - what happens in cases where there’s something that negatively impacts the crop?
I’m guessing there’s some kind of contract in place with terms if the yield doesn’t allow the vineyard to provide the tonnage purchased, but what about years where smoke or rain effect the quality of the grape - does the buyer take on all that risk?
In the past 6-8 years wineries are protecting themselves with clauses about smoke taint. There has been quality standards in just about every grape contract for decades. 2-4% allowable rot, and guidelines for MOG… material other than grapes.
As to crop levels: an established vineyard will have a historical tonnage range. I tried to sign up a client to take the entire contents of a field. I also had fields where 2-3 clients bought the crop. Most times we flagged off certain rows that were identified as theirs.
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https://www.sec.gov/Archives/edgar/data/1835256/000119312521052538/d90982dex1025.htm
Here’s a link to a sample grape contract from Duckhorn. Clause 4 and 6 speak to the quality requirements and conditions such as rot, smoke, etc.
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All the smoke taint wordage was not present prior to the 2018 season for our agreements.
Casey - Are there any contracts being signed as of yet?
Timmy, I’m on my rocking chair in AZ.
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