Salisbury Vineyards

April 2007

Avila, we have bud break! For me, this is the most important time annually in the vineyard because with a bud break that is on time and uniform it means every thing else falls into place. Ideally we should be able to look across the vineyard block and it looks like a newly mowed lawn with no shoots sticking up bigger than the rest. It makes a big difference for all of the other cultural activities that follow and is usually a result of a good dormancy from cold weather in the winter (over 300 accumulated hours under 45 degrees) which we surely got this year!

At the recent Central Coast Insights Seminar, the general theme was very upbeat for the future of California wine industry. Some of the interesting notes were:

• There were 1,000 new wineries last year, nearly half in California, in the USA breaking the 5,000 bonded winery barrier this year.
• Premium ($12+/bottle) wine growth showed a 7% increase last year while lower end economy wines (2-buck Chuck) showed a strong downward trend.
• Imported wine may reach 30% of wine consumed in the USA this year with Australia at a +4% increase, Spain @ +13%, and France @ +24% with a lot exported bulk Pinot Noir and Pinot Gris (Grigio). Pinot Grigio is the second most consumed white wine in the USA with 85% imported mostly from France and Italy. We have doubled our acreage here in the Valley.
• Only 1% of the acreage of California winegrapes is non-bearing. The high expense for planting cost per acre at $25,000/acre not counting the ground plus carrying costs, annual cultural expenses of $3,000/acre/yr., plus no return for at least 5 years until the wine is ready to sell, has slowed plantings in the State. The concern is that we are not planting enough to keep up with sales and this void will be filled by imports. Less and less acreages in Santa Barbara and Monterey Counties are available for grapes because of price competition from produce growers who are protecting their “turf”.
• 2006 was an average year at around 3.14 million tons in California and we are drinking our way out of the huge 2005 crop. The Central Coast (Monterey, Santa Barbara, SLO) tonnage was down around 11% with prices up 13% to the local growers.
• Another 5,000 acres of Pinot Noir is coming into production much of it grafted onto other varietals (Merlot and Chardonnay). The North Coast is seeing most of the increase and Mendocino Co. doubled its’ acreage. Because of low supply and high value, there is concern that much of it is being planted in areas which may not be suitable causing quality worries. The USA has 8% of the world winegrape production with France (20%), Italy (18%), Spain (14%), Argentina (5%), Australia (5%), China (4%), Germany (3%), Portugal (3%), So. Africa ((3%), Chile (2%), and the rest of the World at 15%.
• Like everything else, China is positioned to be a world leader in wine with all that available land, some of which has to be perfect for wine. Australia is down 40% due to frost and a long term drought and it doesn’t look good for next year.
• Wine consumption is increasing every year and soon the USA will be the largest wine consuming country in the world. USA wine per capita consumption is going up at the expense of beer and spirits which are showing downward trends.
• The Central Coast has 13% of State tons but almost 24% of the value. The North Coast (Napa, etc.) has 12% of the tons (46% value), Lodi 18% of tons (12% value), and the San Joaquin Valley 47% of the tons (18% value).
• A lot of figures but they kind of give you a feel for where we fit in the big picture. Be sure to check out www.slowine.com for the SLO Vintners Association’s “Roll Out the Barrels” celebration in the first week of May and get your tickets early. Slainte! (Irish – to your Health!)