California Wine Grape Harvest, 2010 Update
Unexpectedly, Mother Nature Delivered a Large Winegrape Harvest in 2010, the Third-Largest Crop Ever Produced
The large California crop of 3.6 million tons was a big surprise for many in the industry, coming in about 400,000 tons (+12%) higher than estimates. That's equivalent to roughly 26 million cases of finished wine, or 11% of California wine shipments last year.
The large crop is actually a bullish development for wine sales, ensuring that an adequate supply of reasonably priced California wine will be available for market expansion. Value-priced brands will continue to prosper, buoyed by the sizeable 2010 harvest.
The upshot is that we look for strong wine growth rates this year, benefiting from an improving economy, the enlarged wine supply and expanding consumer interest in wines. Markets will remain highly competitive, however.