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BARRELS Coopers reported a price increase of 1%-5% this year, partly because of the ever-increasing cost of raw materials like this stave wood piled at a seasoning yard in France. Barrel Orders Herald Winery Optimism Coopers report strong activity, have concerns about American oak supply By Andrew Adams R obust barrel orders for the 2013 vintage provide another sign the wine industry has made it through the economic doldrums of recent years. "This is a big year. This will be our biggest year since 2007. We're up 15% over last year," said Phil Burton, who owns Barrel Builders in Napa Valley. "It speaks well for the industry in general, because if wineries aren't buying barrels they're not making money." Jason Stout, Napa-based international sales director for Cooperages 1912, said the company had posted a double-digit sales increase of "good, solid, organic growth from our core customer base." Stout said wineries have cleared out back inventory, and with a good vintage 52 W IN E S & VINE S O CTOBE R 2013 in 2012—and one expected for 2013— wineries in the United States are looking to take advantage of growing domestic and global demand for fine wine. "Certainly the American wine industry has really bounced back from the recessions of '08, '09, '10," he said. Strong demand for American oak Bruno Remy, vice president of sales for Canton Cooperage in Windsor, Calif., said orders are up 5% from 2012, with the promise of another good vintage prompting wineries to order more barrels. But Remy said the French-owned cooperage, which produces only barrels made from American oak, has had issues with supply. Wood keeps getting pricier, and it has not been easy to secure oak. "It's becoming a real problem," he said, noting the cooperage raised its prices 3%-5% this year. Remy said there's a bottleneck in the supply chain from forest owners being less willing to sell, fewer loggers cutting wood and the mills being picky about what staves they want to produce. Since the home building collapse in 2008, Remy said the entire U.S. wood market has stalled, causing forest owners to simply hold on to their trees, including oak. And on the tail end of the supply chain, mills prefer to run wood for whiskey barrel staves because they can cut them quicker, cheaper and don't have to worry about quality as much. Sales of Bourbon and craft whiskeys have also surged in the United States, fueling greater demand for whiskey barrels. For example, Remy said winemakers in Australia like 300-liter hogshead American oak barrels, and Remy said Canton saw an opportunity to order long staves to meet this growing demand. The mills, however, aren't eager to take a contract for the longer staves because they have to readjust their machines, and the staves require stringent quality control. "For them, that is not interesting," he said. "We are missing wood. It is crazy because the wood is there." Remy said he's noticed more of his clients are opting to lease their barrels through a third party such as H&A