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.
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. 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.