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WineEast EasternWineLab_Mar09.qxp 1/22/09 9:47 AM Page 1 Management EASTERN WINE LABS Serving the Analytical needs of East Coast Wineries WWW.EASTERNWINELABS.COM Ph 609-859-4302 Cell 609-668-2854 chemist@easternwinelabs.com AOAC Member Expansion Intentions by Winery Size Winemaking Capacity Expansion SMALL LARGE None Minor (<5%) Major (>5%) 22% 15% 29% 11% 5% 29% Small wineries are those producing less than 3,000 cases per year. Additional wineries responded without indicating size of production. Wineries in this region are generally smaller when compared to the national scale, and their smaller size influences many of the business strategies related to integration and marketing. Wineries were grouped into approximately three size categories: Of the 165 wineries indicating the number of cases produced in 2010, 56 wineries produced less than 1,000 cases. There were 59 wineries producing between 1,000 and 2,999 cases, and 50 wineries pro- ducing 3,000 or more cases. The increase in wine production and capacity has stimulated interest in wine grape production in Kentucky and contiguous states during the past 15 years. Past survey reports have cautioned that significant grape plantings in the Midwest may create a market glut for some varieties. Variety and planting coordination becomes particularly challenging with high-value perennial crops being de- veloped in a rapidly changing market. M atthew G.R. Meyer Winem aking Consu l tant 15 years of experience on east and west coast Double Degree in Oenology & Viticulture • ADDITIONAL EXPERIENCE AND EDUCATION IN: •Start-up Wineries •Markerting/Sales •Budgets and Financials •Problem Solving References available. AWINEMAKER@GMAIL.COM | 757.880.4928 46 Wines & Vines JULY 2011 Trends in sourcing grapes On average, small wineries grew 64% of the grapes used in their winemaking, while large wineries grew 45%. Large wineries are more likely to contract with other growers, contracting an average of 41.5% of total grapes used compared to 29% among small wineries. Large wineries also are purchasing more grapes, on aver- age, on the spot market. (The table Origin of Grapes by Winery Size on page 47 shows the pattern in the procurement of grapes by these wineries.) Nearly three-quarters (71%) of wineries indicated they had pur- chased grapes for winemaking in 2010. The percentage of growers responding that they purchased 100% of their grapes from in-state growers (75 of 124, or 60%) is higher than in previous surveys. It was noted that 45% of small wineries (<3,000 cases) responding to this question said they purchased all of their grapes from in-state sources, while 40% of large wineries said they purchased all of their grapes from in-state sources. This range is consistent with results from 2006. Wineries appear to be reaching for grapes across a wider geo- graphic area. The percentage of grapes purchased from in-state sources has declined compared to past surveys. There are 93 wineries reporting 50% or more of grape purchases from in-state sources—slightly more than half of the 183 wineries responding. This supports the trend observed in 2003 and 2006 surveys, in which 74% of growers were purchasing 50% or more of their grapes from in-state sources but were expected to decrease purchases of in-state grapes. Wineries also are selling grapes to other vintners. About one- fourth of those surveyed sold grapes to other wineries, and small Capital Improvements SMALL LARGE No Yes 44% 27% 18% 13%