Issue link: http://winesandvines.uberflip.com/i/754815
December 2016 WINES&VINES 53 OAK BARRELS prices for 2017 hadn't been set, but he didn't expect any major increases. Oeneo is also a public company, and it reported sales of more than 80,000 barrels in 2015-16, with the U.S. market accounting for 36% of its total élevage sales worth 81 million euros ($90 million.) "The American oak crisis is over," said Jason Stout, vice president of marketing and business development for Independent Stave Co., which owns T.W. Boswell, Word Cooperage, Tonnellerie Quintessence, Tonnellerie Tremeaux and Hein- rich Cooperage. "There is plenty of supply in both logs and staves for sale on the market." He said he expects pricing to be stable in 2017, with increases on par with the consumer price index or less. "French oak pricing will be similar, but we have seen a moderate increase in log prices that will carry through in the next two years," he said. Josh Trowbridge, vice president and general manager for Tonnellerie Ô, which is based in Be- nicia, Calif., and is part of the Cork Supply Group, said the company saw a "modest increase" in the prices of French oak for its 2017 barrels. "With respect to American oak, a less than robust U.S. lumber industry saw wood prices spike dramatically in 2014-15," he said in an email to Wines & Vines. "As a result, we expect pricing for Tonnellerie Ô American oak barrels to continue to move moderately higher. We're working on balancing our pricing across a couple of years, reducing the impact of market volatility on our customers." The company recently unveiled a barrel buy-back guarantee, in which it will cover the cost of up to four barrels if a winemaker isn't satisfied with them. The program is a way to get the cooperage's barrels into more trials, and Trowbridge said it's been well received by the industry. Phil Burton, owner of Barrel Builders in St. Helena, Calif., sells French and American oak barrels from Tonnellerie Marchive as well as Eastern European oak and American oak barrels from East Bernstadt Cooperage in Kentucky. He said prices for French oak will continue to rise in 2017, but how the Brexit ultimately affects the euro-dollar exchange rate remains to be seen. "Barrels are cheaper this year than last (and even the year before) because the exchange rate is so much more favorable, but anyone who confidently predicts which direction the Source: Cooperage averages and estimates. AVERAGE BARREL PRICES Price $1,000 $900 $800 $700 $600 $500 $400 $300 $200 2002 2008 2012 2017 estimate American French Eastern European