Wines & Vines

February 2015 Barrel Issue

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Barrels B arrel sales stayed strong in 2014, and coopers are expecting to see another good year in 2015 in spite of signifi- cant price increases for American oak. French oak prices are expected to rise be- tween 3% and 5%, yet the euro has been drop- ping against a strengthening dollar, and it's widely expected that trend will continue for the short term at least. American oak barrel prices shot up by as much as 10% for some coopers in 2014 because of supply constraints resulting from the surging demand for whiskey barrels and other factors. That supply issue isn't expected to abate in 2015, so American oak barrel prices will also increase in the range of 3% to 5% (or higher) this year. Prices for European oak, which includes Hungarian oak, are seeing some increases or staying stable, based on the cooper. Just as the United States has become the largest wine-consuming nation in the world, it is also the biggest wine barrel market. In June of 2013 the French coopers' trade association Tonneliers de France reported that its 49 mem- bers sold a total of 532,990 barrels worth 332 million euros (or $408 million), which was a 3.6% increase in volume and 3% increase in value. Nearly seven out of every 10 barrels produced in France is exported, and the United States (as the largest export market) is now rivaling French domestic demand. The coopers' group, which does not include every French barrel maker, reports France and the United States account for 60% of its members' sales. "The USA is definitely the largest wine barrel market in the world, much larger than France," said Jason Stout, international sales director for Cooperages 1912. "If you consider Europe New American oak barrels are toasted at the Nadalie USA cooperage in Calis- toga, Calif. Several factors including the popularity of American whiskey have driven up the price of American oak barrels. Strong Barrel Sales Herald Strong Industry American oak supply strained as U.S. becomes largest barrel market in the world By Andrew Adams 28 Wines&Vines February 2015

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