Last year, the bulk wine and grape markets shifted towards excess due to sluggish consumer sales and good yields per acre in 2023. Our brokerage firm closely tracks the grape and bulk wine markets and the potential opportunities to best advise our clients. However, despite very attractive asking prices, buyers remain cautious about acquiring more inventory.

In years where grape growers have unsold grapes, we often have frequent discussions about custom crushing. Again, this year, wineries are approaching us to promote their services and a few growers are inquiring about making wine. With over five decades of experience in custom crush bulk brokerage, we know that success depends on understanding risks, having mitigation plans, and setting realistic expectations.

Over the years, we’ve witnessed both triumphs and setbacks in custom crushing. This experience has taught us that success relies on grasping the risks involved, developing strategies to address them, and establishing achievable goals.

There’s no single solution for everyone. Each client has a unique market position, so our advice is tailored. However, regardless of market conditions, we consistently recommend:

To Growers: Be aware of the grape market’s influence on the bulk wine market. A difficult grape market often indicates a challenging bulk wine market.

To Processors: Prioritize providing reliable customer service to the growers who will become paying clients.

For those ready to move forward:

Understand the Market: Grasp the current market dynamics. Seek our advice on likely future conditions for when your wine is ready to sell. We have data on existing inventory, demand patterns, and consumer preferences, as well as insights into future supply and demand trends by variety.

Know Your Purpose: Determine if your goal is to expand your customer base and market for future grape sales, protect your crop’s value, or if you’re simply dissatisfied with current grape prices.

Quality and Quantity: Produce the right amount of wine, considering factors like region, variety, and inventory. Aim for the highest quality – if you lack winemaking expertise, hire a consultant. Understand the demand for different wine styles. Make wine that has the best chance of selling in the bulk market while showcasing your grapes to potential buyers.

Budget Wisely: Strike the right balance of investment—be cautious not to over invest in wine that may not sell, and avoid under investing to the point that buyers are uninterested in the wine while also reflecting poorly on your grapes. Allocate funds for improving wine quality. Ensure your wine remains competitive, especially for last-minute blends.

Patience Pays: Be prepared to store your wine for 18 months to 2 years. Rushing sales can significantly hinder your success.

Grower-Winery Partnerships: We’ve developed custom crush partnerships over the decades, and these strategies become more popular during oversupply. While they can be beneficial when both parties have clear expectations, they can also be challenging and unsuccessful if expectations are misaligned. To ensure mutual success, we’ve created strategies to foster not only superior wine quality but also strong partnerships.

Since each deal has unique variables and requires specific advice, it’s best to contact us to help you understand the pros and cons of your particular situation. We’ve built lasting relationships with our clients for over 50 years, always prioritizing their long-term interests. Call us so we can provide personalized guidance on the advantages and disadvantages of your unique situation.