California’s Grape Bounty May Lead To Lower Wine Prices

Wine lovers in California have something to toast. The state’s grape growers and wineries saw a bigger-than-expected harvest in 2009, according to a report released last week, amounting to the second-biggest crop in California history.

For consumers, the year’s bounty is expected to spell more availability and cheaper costs for all types of California wine, particularly premium and ultra-premium wines.

Wineries in the state crushed 3.7 million tons of grapes last year, up about 20 percent compared to a relatively light 2008, and nearing the record 2005 harvest.

All varietals showed growth, with chardonnay leading the pack in volume at about 726,000 tons, up 28 percent from the 2008 harvest. Pinot grigio, at 145,330 tons, boasted the largest percentage increase — up 61 percent compared to the year before.

The preliminary numbers are part of an annual report released by the California Department of Food and Agriculture and the U.S. Department of Agriculture.

The increase is expected to slow competition from out-of-state wineries, which benefited from a slow 2008, said John Ciatti, partner in the Ciatti Co. grape and wine brokerage.

“This crop will put additional pressure on the already struggling premium segment of the wine business,” Ciatti said.

The cost of wine grapes was down last year, a decrease attributed to factors including the large crop and a slumping economy. By Robert Faturechi, The Miami Herald