Bulk Wine Valuations -- Indicative of the Market

WINE TALK
1

The new Turrentine bulk wine report is out and it shows that valuations of bulks wine, pretty much across the board, are falling. A few examples:

Napa Cab Reserve Quality 07 — down from $26 a gallon six months ago to $25.25.

Sonoma Chard 08 — down from $15 a gallon six months ago to $11 now

Sonoma Pinot 08 — down from $21 a gallon six months ago to $17.75.

(08 Syrah is, oddly enough up in value…about the only thing that is…in most regions in the $8 per gallon range up from $6.75. Sadly enough, I think I see increased demand for cheap Pinot-filler here helping out the difficult 08 Pinot vintage and raising the price).

Certainly this means bulk juice is going to be cheaper now and more inexpensive wines will be coming…it also will put a crimp on wineries further as they are valued by lending institutions, in part, on the value of their assets and if this drop continues they will fall below their covenants and banks may be forced to call loans due, etc.

You can read a lot into one little report.

Adam Lee
Siduri Wines

2

For the outsider how does this carry out? First to market gets best crack? Is most sold through contracts and hand shakes? Luck of the draw?

3

Hmm… I have access to a bottler, maybe we as Berserkers should look into picking up some bulk juice for daily drinker action…

4

No kidding…

5

What is the minimum amount of bulk juice that can be purchased? Would be interested on my end.

6

I would imagine there’s less of a need for ‘minimums’ nowadays…

7

I would think that it would be on the low end at least a barrel’s worth.

8

I saw some '04 and '05’s still on the market recently. Yikes. Good luck with that.

9

I am awaiting the 2008 Oregon Pinot Noir bulk juice prices!

Adam, thank you for the info. I guess 2007 Napa Cab is holding because of the greatness of the vintage?

10

Bottled or un-bottled?

11

Un. The first two I heard of was from a winery here in Paso. Then about 2 weeks ago we had a grower who we used to buy grapes from call us to see if we wanted any '04 Zin he had in barrel. [bleh.gif] First of all, what in the heck would we do with it? We just released our '07’s. Second, I have a feeling it might find a better home at a nail polish factory. [bleh.gif] [bleh.gif]

12

What happens to a wine if it goes 5+ years without bottling?

Will it [eventually] start to oxidize/madeirize?

In the old days, how long would something like a Vandermeulen cask preserve its wine before the wine started to go bad?

13

I think they change the name of the barrel to ‘solera’. [wink.gif]