Welcome to the Turrentine Brokerage Blog!
For 37 years, Turrentine Brokerage has been the preeminent source for in depth updates and analysis on the bulk wine and wine grape market in California through the Turrentine Market Update edited by Bill Turrentine and now through the Turrentine Outlook. The Market Update’s distribution is world wide and every issue is a must read.
The Turrentine blog will be extending and expanding that source of key market insights and information into a new format, which will be accessible on a more frequent basis. In gathering valuable and relevant information regarding the wine industry coupled with our team’s opinions and analysis, the aim of our blog is to share information to enable companies as well as individuals to obtain a better understanding of the current wine market.
Don’t worry, we will still be publishing the Turrentine Market Update newsletter! Look to the Turrentine Blog for industry updates and interesting writing on market trends from our team of brokers:
The harvest of 2010 is rapidly approaching in California; in fact, in most years it would have already started in the southern San Joaquin Valley. The cool Spring and moderate Summer to date have grapes in most regions behind normal ripeness, however. The harvest delay is (mostly) OK with coastal grape buyers and bulk wine buyers. Clients are all playing the “Just In Time inventory” game in addition to trying to be 100% correct in a decision. It’s difficult to blame them, with challenging consumer markets over $10.00/bottle, conflicting information on crop size and inventories, conservative sales projections and “just in time” inventory orders making it challenging.
A recent article in the Wall Street Journal outlined a Just in Time inventory battle in the garment industry with retailers requesting smaller orders from manufacturers with the right to reorder at the last minute if a style takes off. They are battling over the increased costs, who will accept the risks of last minute orders, and how and when do manufacturers ramp back up idled production. View this article at: “Tug-of-War in Apparel World”
A similar challenge is playing itself out in the wine industry as retailers, distributors, wineries and growers sort out who holds inventory and the risks associated with too much inventory. The focus is on avoiding too much inventory, but there are risks of too little inventory also. As we point out in the Turrentine Wine Business Wheel of Fortune, our lead times for production are longer than a few weeks or months, and can be years to change production of wine.
We see a lot of clients obsessing on the trees but unable to look at the forest. The more they analyze, the more unsure they become. In these times of uncertainty, we have always found it best for clients to make smaller decisions in order to insure some quality and dollar cost average their purchases.
It seems most buyers are waiting until the last minute to decide. Our experiences have taught us that buyers lose in the end as they battle over the best quality lots and eventually either pay more or have to accept lower quality wines or grapes than if they had acted sooner.
Since July 1st of this year, we have moved well over 2,000,000 gallons of wine in bulk (from California and imported). The grape market has also picked up with a fair number of negotiations being completed, some of which had been dragging on for a while as buyers held out, waiting for more market information. Future blogs from the Turrentine team of brokers will address specific market information.
Our Company is known for thinking ahead and bringing opportunities to our clients. Our market knowledge is the best in the business due to the time our brokers spend in the market negotiating and completing deals, and the hundreds of hours we put in crunching numbers and dissecting respective markets. This gives us the ability to quickly update clients on the exact supply and demand dynamics for both grapes and bulk wine.
It is important to remember that no one strategy works for all clients. Each client has their own unique situation and our broker team is experienced at seeking customized solutions for individual situations. Our goal is to provide results that allow our clients to retain their competitive advantage.
Contact us to discuss the current market. 415-209-9463. Be sure to check back for updates or go to tb.electronicadept.com for additional information.