The wine grape demand prior to harvest is one indicator of the health of the wine market. Most grapes are sold on contracts between the wine producers and the growers, either year-to-year or on multi-year contracts. This year shows a higher than normal quantity of unsold premium wine grapes.
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Yep, even in Napa County there are unsold grapes. The top quality, and expensive, Cabernet isn't sitting on the vine without an owner, but some Sauvignon Blanc, Chardonnay, and Zinfandel over in Lodi are still "orphans." Heck, there's even Russian River Pinot Noir for sale in Sonoma County.
This grape glut has happened before. People understood the economic downturns of the Dot Com Bust in 2000 and the Great Recession of 2008-09. This time is it the supply and demand events of the Global Supply Chain Crisis? Or is it a more permanent loss of wine customers?
Yes, the wine industry is cyclical. We appear to be on a downward slope. The question is, will it be a short aberration or a longer term event?
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