The California Department of Food and Agriculture’s preliminary 2022 grape crush figure, published February 10th, totalled 3,349,662 tons, slightly lighter than anticipated. The lightness of the crop – the fourth in succession below the 4-million-ton mark and the smallest since 2011 – was attributable to drought conditions, a severe frost, and ongoing vineyard removals, particularly in the Central Valley. Only Sonoma of the North Coast’s four crush districts registered an output reduction versus 2021, but approximately 130,000 fewer tons were harvested in the Central Coast and all but one district of the Interior – the Bakersfield area, up modestly – came in lighter. 

Total Chardonnay tonnage was down 15.9% versus 2021 to 520,983 tons, so that Cabernet (-6.5% to 556,787 tons) became the largest variety harvested in the state for the first time ever. Of the largest varieties, Pinot Noir was next after Chardonnay in experiencing the biggest drop, by 15.6% to 232,567 tons. Zinfandel was the only major variety to see an uptick, by 4.8% to 307,168 tons. Pricing was largely in line with 2021: Cabernet (+9% to $1,847/ton) and Sauvignon Blanc (+8.8% to $1,110/ton) saw by far the largest growth, mainly due to increased Coastal demand. For a more complete breakdown of the preliminary harvest result, and more comment, see Ciatti’s press release here. 

California’s bulk wine and grape markets have felt sluggish since the turn of the year. The publication of the crop report might help firm-up some activity, perhaps too the passing of the frost risk in spring, but the main causes of buyer hesitation – apprehension regarding the economic picture in general, and signs of softening wine sales at retail specifically – are likely to persist. In general, acquisitions can be characterized as price-sensitive and incremental, even in those areas of the market where demand levels – superficially at least – appear robust. 

Amid conflicting economic data and consumer patterns, long-term planning will remain a challenge. Until such time as projections can be made with confidence, many buyers would rather err on the side of caution and risk being short of supply rather than long – at least when bulk prices are as firm as they are. Concurrently, inflationary input costs mean it will not be easy for suppliers to reduce prices in an attempt to stimulate more activity. 

California received significant precipitation in December and January: No areas of the state are now in either of the most extreme drought categories for the first time in many years. As of February 1st, Sierra Nevada snowpack was at 205% of the average, the largest since 1995. There is a long way to go until harvest 2023, but signs are positive that there may be fewer water restrictions this growing season. 

Get in touch regarding your bulk wine samples and the 2023 grapes you will have for sale. Likewise, keep us updated on your bulk wine or grape needs. We stand ready to draw on decades of experience to help you navigate the challenges through 2023 and beyond. In the meantime, read on for our deeper dives into the bulk wine and grape markets. 

Read the full report