Bulk wine buyers across all price points and regions have choice of lots due to more volume for sale which has led to increased quality standards and offering prices that are generally lower than last year. On the other hand, much of the current bulk supply, primarily from the interior, is controlled by wineries that have some options as the next harvest approaches, which generally means a higher floor for bulk prices on the market. Overall, the bulk market is quieter than last year at this time.

Sonoma County continues to be the hottest market, especially for Chardonnay, Pinot Noir and Cabernet Sauvignon, but we are seeing some push back on asking prices. Recent sales of Sonoma Cabernet Sauvignon have been in the mid-$30.00 per gallon range, regardless of vintage. Sonoma County Pinot Noir has been selling in the mid-$20.00 per gallon range for 2016 lots, and 2016 Sonoma County Chardonnay has been moving between $18.00 to $22.00 per gallon. Other markets currently active are Lodi Cabernet Sauvignon, which has been selling between $7.00 to $9.00 per gallon, and Central Coast Chardonnay, where recent deals have been between $13.00 to $16.00 per gallon.
In several other areas of the state, we have noticed stand-offs in price, and neither buyer nor seller seem overly motivated to move supply at this point in the year. This is particularly true for North Coast and Napa Valley Cabernet Sauvignon. Buyer’s offers are lower than sellers asking prices but still relatively strong historically which has somewhat slowed a market that has been strong for some time now.

Overall, there is steady bulk wine and grape demand with market activity coming off of a 4-million-ton harvest which is great news. The grape markets are currently more active than bulk, and many proactive buyers are hedging their purchases at this point in the year. Generally, grape supply is tight right now for several varieties so reach out to your broker early and often to plan an actionable strategy as we continue to move into 2017.