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WineEast Origin of Grapes by Winery Size Grown in own Small Large vineyards 64% 45% Contracted with other growers 29% 42% Small wineries are those producing less than 3,000 cases per year. and large wineries were equally likely to grow grapes to sell to other wineries. Small wineries selling grapes on average sold a larger percentage of their grape production to other wineries. Among wineries selling grapes, 6.5% of large wineries sold 10% or more to other wineries, while 13.7% of small wineries sold 10% or more to other wineries. Newer wineries responding to this survey are much more likely to use all their grapes in their own winemaking: 48 of the 57 winer- ies less than five years old (84%) grew 100% of their own grapes. Among the 108 wineries five or more years old, 62% said they used all of their grapes in their own winemaking. Alternately, older winer- ies appear to be selling their excess capacity. Winery and grower relations Wineries appear more likely to relate with grapegrowers through various forms of information exchange rather than financial partici- pation. Almost no wineries reported assisting with operating loans or long-term capital improvements. Wineries are much less likely to Purchased on spot market 6% 12% assist growers with site selection than with varietal selection. How- ever, sharing of information and expertise—including retail demand information and discussions about wine industry trends—are more likely to occur, according to survey results. (A summary of winery and grower business interactions is shown in the table Winery and Grower Business Relations on page 48). Marketing approaches Nearly all wineries use a tasting room or on-premise retail sales. Re- sponses to this survey suggest that alternative marketing practices for off-premise selling may be more common than in past years (see the Winery Marketing Approaches table on page 48.) Specifically, more wineries stated they "often" employ wholesale sales relative to past surveys. This indicates that wineries in this region are widen- ing the scope of their marketing efforts beyond more traditional direct marketing and retail sales. Grape price report A continuous challenge for grape producers is finding grape price information. This survey asked wineries to report prices paid for grapes in 2010 as well as the outlook for 2011. While wineries expect most grape prices to remain steady at 2010 levels during the 2011 season, more than 20% of wineries responding expected prices for several varieties to "increase some." These varieties included Concord, Norton/Cynthiana, Vig- noles, Cabernet Franc and Merlot. A table of grape prices paid in 2010 is available online at winesandvines.com. ATTENTION SHIPPERS, GROWERS, & WINERIES M&M WINE GRAPE CO. juicegrape.com The Sourcing & Transportation of Premium Wine Grapes is Our Specialty GRAPE SOURCING • by Variety • by Appellation • by Specification Fresh Corks Directly From Portugal 4th Generation Family Cork Producer All Natural Cork Closures Free Branding Free is Better Free Shipping Ask about our Progressive Discounts Phone (203) 681-7743 Cell (860) 335-0667 email: reliablecork@gmail.com www.reliablecorksolutions.com From premium grape growing areas including: Amador, Mendocino, Napa, Suisun Valley, Clements Hills, Lodi, Central Valley, WA State, Chile S.A. and others WINERY SUPPLY All Equipment & Supplies necessary for all phases of winemaking. Combine with your grape purchase and save $$$ TRANSPORTATION • logistical network operating daily from coast to coast • over 20 years experience in moving product from point A to point B When your crop is down, your demand increased, or you're just starting out... M&M Wine Grape Co. is your source for quality products including fresh grapes, juice, and bulk wine. M&M Wine Grape Co. 101 Reserve Road Hartford, CT 06114 (877) 812-1137 sales@juicegrape.com Member of: mmwinefamily.com Wines & Vines JULY 2011 47