Ripping out vineyards due to lack of demand
Bad situation that is only going to get worse.
I donāt think DRC is going to rip out vines due to a glut of burgundy! Certainly it will likely continue to get worse for many areas before it reaches a new equilibrium,
This has been discussed on multiple threads.
Bordeaux ( France is paying farmers to rip out vines on the low end of the spectrum), Lodi- (subject of article posted here) &
Washington State have been particularly affected.
Burgundy has small production and likely will not have an issue.
Wondering what other areas are taking it on the chin.
Not that itās berserker stuff but driving up 99 through the central valley there are huge swaths of vineyards either unpicked or riped up.
Languedoc too. Roussillon so far is less affected.
I donāt know the exact numbers but burgundy production wise is like 2% of production of French wine, but 25% of French wine revenue.
Doubtful Burgundy is ripping up much.
Yep - in some cases being ripped out for good; in some cases, being ripped out to replant. And remember, there are plenty of Berserkers who partake in ALL kinds of wines my friend
By the way, youāll see the same things happening in SB County and Monterrey County too
Cheers
Ebbs and flows in the CA wine scene. Iād imagine new plots of land where vineyards are being planted is at a low vs. the past 20+ years. Too many vineyards, too much wine and not enough consumersā¦at least right now.
Its a bummer to see the really old vines pulled as weāll likely not see many old vines in the next 100 years as we do now (even thatās small comparatively to all the new plantings).
Iāve seen enormous amounts of fruit unpicked throughout the entire Yakima Valley and even what seemed like whole vineyards of unpicked fruit recently on Red Mountain. When I ask about why the fruit is unpicked, the response inevitably is that thereās a glut/backlog of fruit and excess wine in Washington State and that many growers are simply leaving a lot of the 2024 crop on the vine since they ācanāt give the grapes away.ā Itās really striking to see the extent of it, including in top AVAs and vineyards.
Chateau St Michelle announced a big cut back last year and over the next 5 year period. Literally left the growers hanging and not a lot of options for new buyers. Box wine maybe? Got to do something with the tonnage or rip it out
Box wine is not the answer, in fact itās part of the problem.
Here are some statistics from OIV:
Wine consumption worldwide, from previous vintage:
2019 ā down 1.6%
2020 ā down 1.9%
2021 ā up 1.0%
2022 ā down 2.9%
2023 ā down 2.7%
I donāt have statistics for value, but my guess is that revenue from wine sales is at a minimum stable over that period and probably up.
People are drinking less but drinking better. I was in the business full time for over 40 years and Iāve heard that since Day 1. It wasnāt true at the beginning. It is now.
In retrospect, the increase in production over the past quarter century would not have been sustainable even if Gen X and Gen Z worldwide had decided that wine was much cooler than beer, booze or abstinence.
The other problem is the explosion of producers of what the world (not the board) calls āultra-premiumā wines, ie, those over $20. I think that today, the $30 price point is what $15 was a decade ago. But the market at ~$20 - 50 (which is now approaching the mid-range, at least here) is more than oversaturated.
I see a future of decreasing acreage to match decreasing consumption. Small growers who have (Europe) or can develop (North America) dtc markets should be fine, as long as quality and style match consumer tastes.
Yeah, and even the DTC guys are struggling. Youāll find a few Berserkerday regulars missing this year because theyāre not around anymore.
BD16 will be about choosing favorites and keeping the boat afloat versus can I get free shipping.
True Brigg.
My favorite aspect of BD is dealing directly with small producers. As everyday, their survival is at stake. Hopefully Berserkers can help aid cash flow during a tough post holiday season.
2014 was my 1st BD. Here are the BD participants that Iāve purchased from who are no longer around.
Arcadian
Bevela
Biggio Hamina (traded in his wine press for a boat. May calm seas be with you, Todd!)
Campesino
Cave Dog
Cebada
Chesterās Anvill
EMH Black Cat
Franny Beck
Harrington
Match
Metrick
Wilde Farm
Zepaltas
Thatās pretty eye-opening Tonyā¦
add Paetra.
I havenāt been too active here over the last few months, Iāve been doing a lot of personal and work travel this year.
When I sit back and people watch, I have noticed that wine consumption has fallen off a cliff over the last 18 months. While some of this might be attributed to ebb and flow of wine consumption, there has to be a lot more going on than even I can take a stab at. Itās been too drastic.
Weāve hashed this in many threads already, but itās more the just an inflationary or market correction - there is some fundamental change. But just like magazines and vinyl was going to go away, eventually wine might just have its day again.
Us small producers just need to try to survive until thenā¦
Adam;
Good Luck!
The part of this that surprises me is: while I realize on some wine I get either on premise or BTG deals, in many cases both off and on premise customers are being offered the same new slashes in prices from the distributers . Whether locally or in Nashville visiting my daughter, Iāll go into some of the larger retail shops to check prices. What I find, with few exceptions, is those retailers are pocketing the new spreads. A couple have told me they have no plans on reducing prices until forced to by competitors or some assurance the new pricing is long term. One , I know very well, specifically told me that current declining sales volume is more than being made up by enhanced bottle margins. It will be interesting to see how long all this lasts.
Yes, vineyards in Lodi.
Schaefer blames the decline on inflation. The price of a liter of wine rose more than 13% in just the last five years, according to the Federal Reserve Board of St. Louis.
Shocking ā 2.5% annual inflation!
Thatās well below the overall CPI increase in that span: