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JULY NEWS 60 50 40 30 20 10 0 California Wine Volume in Millions of Cases 2010 2011 Source: Gomberg Fredrikson Grapegrowers Hear Good News N Wineries' outlook is less positive at Vineyard Economics Seminar apa, Calif.—The mood among growers—and bankers— is indeed rosy. More than 89% feel positive about future growth compared to 71% last year and a dismal 29% in 2010, according to the annual Vineyard Economic Survey. The results of the survey were part of the 17th Vineyard Econom- ics Seminar held May 15 and attended by more than 200 people. The survey is conducted by David Freed, founder of the seminar and chairman of The Silverado Group, which owns and manages more than 2,000 acres of grapevines in Cali- fornia. More than 70% of the 84 respon- dents agreed that grape prices are going up and demand for grapes is high, while almost half see wineries signing more long-term contracts with growers and a third say wineries are improving their existing contracts to assure grape supply. Tellingly, 45% of growers and wineries plan to plant vines this year, a huge change from the past decade, when growers were barely maintaining acreage. If the news is good for growers, however, it's not so positive for wineries. They face higher prices and shortages, plus competition from growers-turned-vintners. Many growers who were forced to make wine when they couldn't winesandvines.com Learn more: Search keywords"Vineyard Economics Seminar." sell their grapes have found the practice worthwhile: One-third of the growers who responded are producing their own labels, 29% are making bulk wine and 10% are making private labels compared to only one-third of those surveyed who strictly grow grapes. Glenn Proctor of the Ciatti Co. and Lise Asimont, head of grower relations at Francis Ford Coppola Winery, participated in a panel discussion about the tensions between buyers and sellers of grapes over grape supply. They agreed about the shortages and offered little potential relief short term: New plantings won't help for a number of years, but there's little place to plant grapes anyway. —Paul Franson 16 Wines & Vines JULY 2012 Millions of Cases Chardonnay Cabernet Sauvignon Merlot Zinfandel White Pinot Noir Pinot Grigio Sauvignon Blanc Red Zinfandel Moscato