Release of Strategic Turrentine Outlook Reveals Disappearance of Excess Inventories
NOVATO, CA– This week, the highly trusted bulk wine and grape brokerage company, Turrentine Brokerage, is releasing their eleventh issue of The Turrentine Outlook©. A strategic reflection and analysis on the future of the wine and grape market, Turrentine’s publication reveals some interesting finds. Predictions of a dramatic shift in grape and bulk wine supply have been prevalent for some time. Market dynamics suggested that by the time everyone achieved the lean inventories favored by lenders and investors, sales would pick up and supplies would become limited. Lean inventories would then bite those who were caught behind the curve.
Turrentine warned last November that “everyone will try to replenish supply at the same time. Most will be astonished to find, in many cases, that what they had considered an excess, has quietly disappeared.” This has now come to pass – in spades.
Mother Nature gets some of the credit for the change, with a lighter crop in 2010 in most of California and Europe. Australia’s vineyards have been whipsawed from drought to excessive rainfall. Chile and Argentina had smaller crops in 2011. But, Connie and Conrad Consumer have done their part as well. The fundamental fact is that sales have grown and vineyard acreage, for the most part, has not. The over $20 per bottle market is still recovering from the recession, but many brands, at a range of price points, are enjoying good growth. Red blending wine, one of the most difficult categories during the years of excess, has been transformed into a hot category, driven by rapid sales growth of premium, fruity-sweet red wines, as well as a large export to Northern Europe. Red Zinfandel, Petite Sirah, Malbec and other reds are selling quickly and at price levels that have not been seen since the glory years of 1999 and 2000.
Turrentine Brokerage has not only experienced a surge in sales volume for grapes and wines in bulk, but they are also seeing a large increase in the percentage of grape and bulk wine sales contracts that extend for multiple years. Those who understand the changing dynamics of the market will make the most profitable use of these long-term commitments.
About Turrentine Brokerage:
Turrentine Brokerage, founded in 1973, specializes in the strategic sourcing of wine grapes and bulk wine from the major growing areas across the globe. Working with thousands of wineries worldwide, and with over 1,500 growers, this experienced team has negotiated transactions between buyers and sellers valued at more than $1 billion over the past decade.
For more information on The Outlook please click HERE