(February 10, 2023, Novato, CA) – The California Department of Food & Agriculture’s Preliminary Grape Crush Report for 2022 was released today. The crush of 3.349 million tons stayed in line with the Ciatti Company’s earlier pre-harvest projections of 3.5 – 3.6 million tons. This was the smallest winegrape crop harvested since 2011.
The 2022 winegrape crush was even lighter than anticipated, further emphasizing the impact of drought conditions, a severe frost, and ongoing vineyard removals particularly in the Central Valley. It was a harvest that saw Cabernet Sauvignon become the largest variety harvested in the state for the first time ever, overtaking Chardonnay. Pricing per variety was mostly either flat or up with Cabernet and Sauvignon Blanc showing the biggest increases of the main varieties due mainly to increased demand in the coastal regions.
While the crop report shows a total number that is slightly below expectations; this volume is not completely unwelcome, given recent reports of sluggish sales in the US market. With many buyers sitting on the sidelines waiting to make decisions on inventory, this report may push many of those players into action. – Greg Livengood
Ciatti’s experienced brokers are available for further details, comments & analysis on the 2022 California Grape Crush Report. Please call 415-458-5150.
2021 Tons |
2022 Tons |
21-22% ∆ |
2021 Prices |
2022 Prices |
21-22% ∆ |
|
Red Wine |
2,033,151 |
1,885,875 |
-7.2% |
$1,072 |
$1,127 |
5.1% |
White Wine |
1,601,154 |
1,463,787 |
-8.6% |
$678 |
$677 |
-0.1% |
Chardonnay |
619,655 |
520,983 |
-15.9% |
$1,006 |
$1,039 |
3.3% |
Pinot Gris |
213,911 |
196,428 |
-8.2% |
$594 |
$590 |
-0.7% |
Riesling |
34,659 |
24,701 |
-28.7% |
$722 |
$759 |
5.1% |
Sauvignon Blanc |
132,122 |
125,847 |
-4.7% |
$1,021 |
$1,110 |
8.8% |
Cabernet Sauvignon |
595,428 |
556,787 |
-6.5% |
$1,694 |
$1,847 |
9.0% |
Merlot |
186,524 |
182,425 |
-2.2% |
$852 |
$859 |
0.9% |
Petite Sirah |
89,411 |
87,138 |
-2.5% |
$1,009 |
$1,006 |
-0.3% |
Pinot Noir |
275,435 |
232,567 |
-15.6% |
$1,652 |
$1,621 |
-1.9% |
Syrah |
75,578 |
62,621 |
-17.1% |
$1,034 |
$1,062 |
2.7% |
Zinfandel |
293,224 |
307,168 |
4.8% |
$649 |
$665 |
2.5% |
Totals Statewide |
3,634,307 |
3,349,662 |
-7.8% |
$900 |
$930 |
3.4% |
North Coast
The 2022 North Coast harvest showed strength across all 4 crush districts. Napa was no surprise to anybody with Cabernet Sauvignon up in tonnage from the previous vintage to 69,309 and a great bounce back on Chardonnay with an increase of 57%. Lake County came in with a historical Cabernet Sauvignon harvest of 21,214 tons, and still saw an increase in price. Mendocino witnessed a 30% increase in tons, but was the only North Coast crush district to see a decrease in overall price, down 1.3%. The early season flurry in bulk wine and grape activity in Sonoma County foreshadowed the 2022 crush report. Sonoma County crop was down 9% overall, with Pinot Noir (down 16.8%) and Chardonnay (down 12%) showing significant losses in tonnage. – Glenn Proctor
Central Coast
It’s hard to make heads or tails of the Central Coast harvest. After a bountiful 2021, the 2022 crop was down approximately 130,000 tons – the equivalent of 22 million gallons of wine. While grape prices remained steady for the main varieties, we have seen the upward trend in bulk wine prices, especially on Paso Robles Cabernet Sauvignon. – Todd Azevedo
Interior
In the state’s Interior Regions the 2022 crush was down in all districts with the exception of District 14 which was only up modestly. In District 13 (Fresno, Madera) the crop was down for a sixth straight year totaling 1,051,232 tons. While this was only down slightly from 2021, the continuing trend of an annual lighter crop appears to be due mostly to drought conditions and ongoing vineyard pullouts. In the Northern Interior the lower tonnages can be directly tied to the areas most affected by a spring frost event. District 11 (Lodi) was down overall to 747,388 tons (-4.8%) but varieties susceptible to frost damage like Chardonnay and Pinot Grigio were down severely. District 17 (Clarksburg) perhaps the area hit hardest by frost harvested over 70,000 tons less than in 2021 totaling 133,588 tons (-35.3%). Some varieties like Pinot Grigio have seen increased activity on the bulk market due to the lighter harvest however it remains to be seen if overall Interior bulk wine activity increases. – Johnny Leonardo
Looking ahead to 2023
Looking ahead to the rest of 2023, this crop size that caught us all by surprise only adds to the idea we’ve been discussing since December: “as short as this crop was, we would expect more buyers to be chasing this market”. That they are not, and that there is a mixed bag of winners and losers out there in the world of case good sales, only confirms that this continues to be a cautious and uncertain market. Does this crop size upset that notion and spur more buying activity? Or does the market shrug and continue to plod along as it is.
The next issue we will be looking out for is whether the bulk market can continue to support these elevated Coastal bulk wine prices – i.e. Russian River Chardonnay and Paso Robles Cabernet Sauvignon. We’re hearing from a number of potential buyers that if prices remain this elevated, they may vacate a specific appellation (temporarily?) and they themselves might become sellers out of their existing stock. And if they do, who will be left to buy these wines at current expected prices?
We will be closely following the market over the next three to six months to see where this market heads. – Chris Welch
About CIATTI GLOBAL WINE & GRAPE BROKERS
The Ciatti Company is the world’s largest and most comprehensive bulk wine and grape brokerage. Aside from its home base in Novato, California, seven additional offices around the world provide clients the kind of information and intelligence that today’s competitive global wine industry demands.
The company, founded in 1971, has deep roots in the wine industry, both in California and the countries in which the company operates. The current partnership includes industry professionals with over 135 years of collective experience including: Greg Livengood, Glenn Proctor, John White, Chris Welch, Steve Dorfman, and Todd Azevedo and brokers: Johnny Leonardo, Jed Lucey, and Dennis Schrapp.