MONDAY, DECEMBER 7, 2020. BY STUART SPENCER, LODI WINEGRAPE COMMISSION.
COVID not only upended our lives but upended the wine and grape market in ways no one expected. Prior to the lockdowns that took effect in March, on-premise sales (restaurants, bars, etc.) comprised 18% of total wine sales. These channels disappeared overnight, but consumers continued to drink and shifted purchases to supermarkets, online, and warehouse stores that all remained open. The large wine companies benefited from this shift because they were better positioned within the channels that remained open. These companies also purchase a significant portion of grapes from the Lodi region which improved demand this harvest for Lodi grapes.
There are several key factors that will impact supply and demand for Lodi grapes:
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- The smoke impacts from the 2020 wildfires left many vineyards on the coast unpicked, which in the short-term, stimulated demand for 2019 and 2020 bulk wine. This came on top of an already reported light crop across California that saw several wineries looking for additional fruit late in the season. A few Lodi vineyards experienced smoke-related winery rejections, but most Lodi vineyards were picked (although some at a discounted price). There is a lot we don’t know about smoke impacts on grapes that will need to be sorted out between wineries and growers moving forward.
- Vineyard removals are continuing at a vigorous pace as growers remove older, less productive blocks, and in many cases, replace them with alternate crops. Unless the wineries start offering higher prices to keep these vineyards in the ground, the trend will continue. Especially considering the coming rise in labor costs.
- The long-term effects of COVID-related shutdowns are unclear on the wine market. Overall wine sales look to be flat for 2020, but how, where, and which wines people are purchasing has dramatically shifted.
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Moving forward, it is important to pay close attention to the brands that you are supplying with grapes and how their sales are performing in the wine market. It’s equally important to identify potential new winery clients that are growing and may need more supply and to approach them prepared and professionally. To that end, please take advantage of the Commission’s new Modern Farmer Series Vineyard Tech Sheet program and Storytelling Workshops (see below).
Stuart Spencer is the Executive Director of the Lodi Winegrape Commission and he and his family run St. Amant Winery in Lodi. This article originally appeared in the LODI WINEGRAPE COMMISSION NEWS Fall 2020 newsletter, mailed to the Lodi Winegrowing Community just before Thanksgiving. Print copies are available through the Lodi Winegrape Commission (209.367.4727) and the online version is accessible HERE.
HOW TO TELL YOUR FARMING STORY TO WINEGRAPE BUYERS WORKSHOP.
Date: Tuesday, December 8, 2020
Time: 9:00 – 11:00am (PST)
Venue: Online via GoToMeeting (register for link)
Cost: FREE for Lodi AVA winegrowers
Speaker: Lisa Cantrell, PhD, Founder of Capital Storytelling and Sacramento State Professor
Description: Storytelling is a skill needed in sales. As part of The Modern Farmer Series, the Lodi Winegrape Commission is committed to helping our farmers tell their farming stories – especially to buyers. This interactive online workshop, hosted by professional storyteller and Sacramento State Professor Dr. Lisa Cantrell, will help to pull the stories we know you have out of you and onto your new Vineyard Tech Sheet.
Registration required (open to Lodi AVA growers). Email stephanie@lodiwine.com to check availability as space is limited to 10 participants. We will host more storytelling workshops as needed.
HOW TO TELL YOUR SUSTAINABLE FARMING STORY WORKSHOP.
Date: Thursday, December 10, 2020
Time: 9:00 – 11:00am (PST)
Venue: Online via GoToMeeting (register for link)
Cost: FREE for LODI RULES certified growers
Speaker: Lisa Cantrell, PhD, Founder of Capital Storytelling and Sacramento State Professor
Description: Storytelling is a skill needed in sales. Many growers find it difficult to describe sustainability in a nutshell and/or in a way that is attractive to buyers. This interactive online workshop will help you craft your personal sustainability story so you can easily and honestly answer the question, “What does sustainability mean?”
Registration required (open to LODI RULES certified growers). Email stephanie@lodiwine.com to check availability as space is limited to 10 participants. We will host more storytelling workshops as needed.
Have something interesting to say? Consider writing a guest blog article!
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For more information on the wines of Lodi, visit the Lodi Winegrape Commission’s consumer website, lodiwine.com.