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MARCH NEWS Experts Say Outlook Positive for Industry Low yields in 2011 put inventory back in balance; shortage on the horizon Symposium said that wine industry indicators are remarkably positive. The 2012 symposium, S the largest wine show in the western hemisphere, also had a positive turn- out with more than 12,400 people from six continents and every major wine region at- tending. The Jan. 24- 26 tradeshow featured nearly 650 exhibitors representing every aspect of the wine industry. Allied Grape Growers president Nat DiBuduo said wine industry in- ventory is balanced for the first time in several years, but given the spike in direct shipping during the past year, DiBuduo said production would have to return to 2005 levels to meet project- ed demand. If the next three growing seasons produce average yields, 2012 could see a potential shortage of 185,000 tons of winegrapes available to crush for wine, a 125,000-ton shortage in 2013 and a shortage of 60,000 tons in 2014. Steve Fredricks of Turrentine Brokerage said bulk wine supplies Allied Grape Growers president Nat DiBuduo says inventory is balanced. are down in the U.S. and the rest of the world. Demand is going up and prices are going up, prompting producers to look for sub- stitutes. The bulk market is not just having an off year, he said, but is at its lowest point in more than a decade. Turrentine said that current inventory is at about 4 million gallons, including about 400,000 gallons of Cabernet Sauvignon. New plantings for the variety also have stayed flat for the past five years. Wineries in the U.S. and abroad shipped 345 million cases to market in the U.S. during 2011, according to veteran wine indus- try analyst Jon Fredrikson of Gomberg, Fredrikson & Associates. His estimate indicated the market grew 4.5% from 2010, when the U.S. became the world's largest wine-consuming country. Shipments have been on an uninterrupted upward climb since the early 1990s. Fredrikson said the growth in 2011 came from an increasing role for wine in Americans' lifestyles and media, plus "a staggering diversity of wine choices" available to consumers. Fredrikson also unveiled his choice for 2011 Winery of the Year: 4.5 million-case DFV Wines of Manteca, Calif., owned by the Indelicato family. —Wines & Vines staff Wines & Vines MARCH 2012 17 acramento, Calif.—Experts at the Unified Wine & Grape 12-27% lighter than conventional wine bottles. Local bottles, global good—sure to make a splash! Ask about the O-I Lean+Green® line at wine@o-i.com ™ makers of leaner, greener, locally-made glass packaging