Wines & Vines

January 2012 Unified Wine & Grape Symposium Issue

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GRAPE GRO WING Grapegrower Interview NAT DIBuDuO The San Joaquin Valley native's history with agriculture begins when his family planted winegrapes in the early 1970s. DiBuduo earned a bachelor's degree in plant science and viticulture from Califor- nia State University, Fresno, in 1973. He has managed acreage not only in the Central Valley but also on the Cen- tral Coast, Napa Valley and in Sonoma County. Although he doesn't currently own any vineyards, some of his family members still grow grapes in Madera and Tulare counties. DiBuduo will be a featured speaker at this month's Unified Wine & Grape Symposium in Sacramen- to, Calif., during its annual State of the Industry session. Wines & Vines: What sort of movement are you seeing in grape prices? Nat DiBuduo: Grape prices throughout California increased in 2011 over 2010. Particularly in the coastal areas, which were plagued by inclement weather and a resulting smaller crop, prices on the spot market were significantly stronger than in the past two years. In the interior regions of the state, the crop appears to have been lighter than in 2010. This, coupled with very strong consumer demand for value and mid-priced wines, caused a measure- able increase in grape prices across the board in Lodi and regions south. Generally speaking, the interior region's grape market provided prices that were at least 20% stronger than the previous year. Varietals in the Central and South Val- ley, which were mostly priced from $300 to $400 in 2010, rose to levels starting at $400 and above for 2011. In Lodi, the same A 92 Wines & Vines JAnUARY 2012 s the president of Allied Grape Growers, a winegrape marketing cooperative with nearly 600 members across California, Nat DiBuduo is a California vineyard expert. Allied Growers leader has positive outlook on prices, planting By Laurie Daniel Regular attendees of the Unified Wine & Grape Symposium are no doubt familiar with the man tra of Nat DiBuduo, president of Allied Grape Growers: "Don't plant without a contract." percentage increase existed, with Chardon- nay moving up significantly to be priced at or above $500 per ton. In 2010, the spot market was closer to $350 per ton. Merlot and Cabernet, which didn't break $450 and $500, respectively, on the spot market in 2010, saw prices increase above $500 for Merlot and above $600 for Cabernet in 2011. Zinfandel for red wines was also in high demand from Lodi and experienced contract and spot market prices from $400 all the way to $1,000 per ton, depending on the vineyard site, age, etc. In the coastal regions, prices are much more variable due to the plethora of AVAs and resulting bottle prices, but there are some reference points. Napa Cabernet Sauvignon, which was a hard sell in 2010, was extremely sought after by buyers in 2011. Spot market prices rose up to, and exceeded, the previous year's average reported price, something we haven't seen much of in recent years. In Sonoma County, Chardonnay also experienced exponential increases in spot pricing, which moved from under $1,000 per ton in 2010 to more than $1,500 per ton in 2011. Certain AVAs, like Russian River, could easily fetch more. Sonoma County Cabernet Sauvignon also experi- enced a significantly stronger market, and even Merlot from most coastal areas was marketable, whereas in the past it was a challenge to move. Coastal areas outside of Napa and Sonoma experienced much stronger pric- ing for both white and red grapes than in recent years. Where coastal spot market prices for Chardonnay, Merlot, Cabernet Sauvignon and Zinfandel may have been just slightly higher than Lodi prices in 2009 and 2010, the 2011 market allowed

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