Not So Many Grapes.

The California grape harvest is lighter than normal because of low rainfall in the winter and an extended frost in the spring.   2005 was a ‘bumper crop’ but each of the following seasons, including ‘08 were light to moderate.

With the current recession, this might work in wineries favor, as the lower supply will stay in equilibrium with the slowing demand that the industry is currently experiencing.

In the US, California wine sales slowed last year, up just 2% from 2007.   According to wine industry consultant Jon Fredrikson “…sales have softened in restaurants, which is where many small wineries sell most of their wine, and retail consumers appear to be trading down to cheaper bottles.  They’re still drinking wine; they’re just looking for value.”

That said, growers who get paid in volume aren’t happy, nor are wineries that grow their own grapes, they’ll likely produce and sell less wine.

Grape prices were higher in 2008 and the most popular grape was Chardonnay, which made up 15% of the harvest.

Go to the Associated Press for the full story.