Grape growers face tough sell

<p>It is about two months before harvest and Frank Hewitt has no buyers yet for any of the Cabernet Sauvignon on his 17 acres in Calistoga.</p><p>Frank’s fruit equates to about 4,000 cases of premium wine that would sell for at least $50 a bottle. But with sales of all such wines flat as a table, his tale is far from unique. Indeed, it’s the same story around the state.</p><p>The weakened economy that has buyers trading down to lower-priced wine has changed the market for wine grapes 180 degrees. Some industry analysts say that a good portion of the fruit, in even prestige locations such as Napa and Sonoma, may go unsold this year.</p><p>Just four or so years ago, many wineries used fruit from their own vineyards and supplemented that with grapes purchased from independent growers such as Hewitt, who began farming his Cabernet in 1971.</p><p>“We had a 10-year contract with Silver Oak,” said Hewitt, “but the contract ran out two years ago when they had developed enough vineyards of their own.”</p><p>Now, says Hewitt, wineries up and down the valley that once were candidates to buy fruit from him have become sellers of grapes as their own vineyards are producing more than they need.</p><p>Wine makers around Napa and Sonoma all say the same thing: Sales of wines in the $20-and-up price range from prior vintages are selling so slowly that they plan to make a lot less wine from the 2009 harvest than at any time in the last decade.</p><p>“This is the first time I have faced this situation,” said Hewitt. What will he do if he can’t find a buyer in the next two months? </p><p>“Well, I have to decide if I want to invest more money in them and have wine made and put it in storage and hope to sell the wine later,” he said. “But I’m not inclined to go there. I don’t like the idea of the cost of putting more money into the fruit. Not with the economy the way it is.”</p><p>Costs to tend his property have already been incurred — he has done all the pruning, spraying, canopy management, and other factors. And he said his fruit this year looks better than it has in years. It could be a truly superb crop in terms of quality. And may not be used.</p><p>Nick Frey, head of the Sonoma County Winegrape Commission, said there are potentially 30,000 tons of grapes available in Sonoma County this year that are not under contract. Prices normally are set for such “spot market” fruit by now, but this year, prices are not yet set.</p><p>“Growers are hoping to sell them on the spot market, and they’re waiting to see if wineries are going to make a move. Have winery inventories depleted enough for them to have the cash to make a move?</p><p>“People are waiting for someone to make the first move, and no one has just yet.”</p><p>Winegrape farming has always been a risky business. I asked Frey when the last time was that the industry faced such a crisis as this: “This is totally unique,” he said. “Inventories are not high, there is no bulk wine out there, we had a short crop last year and another factor is cash and the inability to get credit.</p><p>“I have heard of some wineries who don’t even have enough money to bottle last year’s wine, and if that’s the case, they certainly don’t have enough money to buy grapes.”</p><p>All sorts of schemes have been crafted to sell wine, he said, adding, “Wineries are reluctant to cut retail price because they might not get it back.”</p><p>Then he added a positive note:</p><p>“If the economy improves a bit and there is a slight up-tick in wine sales, we could move from the current tentative situation to a wine shortage within two years. </p><p>“The key is if you can figure out how to get through this year as a grower, just to break even, on the chance it might turn around.”</p><p>Home wine makers are watching this situation with glee.</p><p>Wine of the Week: 2008 McManis Pinot Grigio, California ($10) — A stylish white wine that has an aroma of peaches and apples and faint white pepper. The texture is fascinating, with terrific acidity so the wine will match with a wide array of lighter foods. Only 12 percent alcohol.</p><p>Wine journalist Dan Berger has been nationally syndicated for 30 years. He resides in Santa Rosa, where he publishes Vintage Experiences, a subscription-based wine newsletter. Contact him at danberger@rocketmail.com.</p>