LODI GRAPE EXPO American Vineyard Magazine

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LODI GRAPE EXPOAmerican Vineyard Magazine

• Nat DiBuduo
• President CEO
• Allied Grape Growers
• November 11, 2008

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California's Production History
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Industry Issues

• Market Share (those pesky imports)
• Californias Flattening Supply
• Continued Buyer Consolidations
• Promote CA Wine (mandatory assessment?)
• Research Dollars (NGWI)
• Wine Labeling Wine Production Issues
• Quality Incentives (show us the money)
• Economic Sustainability of Growers
• The Economy

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Production vs. Shipments
What is our inventory situation?
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California Acreage
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California Acreage
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Acreage Trends
Categorical Summary

• Generics (Columbard, Chenin, Carignane, etc.)
• Down substantially from ten years ago
• Major varietals (Chard, Cab, Merlot, Zin, SB)
• The Backbone of the market
• Increased acreage from 10 years ago
• Growth Varietals Other Minor Varietals (Pinot
  Grigio, Pinot Noir, etc.)
• Double digit sales growth
• Exponential growth from 10 years ago.

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California Chardonnay Acreage
Regional Breakdown
High gt1,300
Mid 700-1,300
Value lt700
N/A
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Varietal Market Review
Chardonnay
Demand Price Future
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California Pinot Grigio Acreage
Regional Breakdown
High gt1,500
Mid 1,000-1,500
Value lt1,000
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Varietal Market Review
Pinot Grigio
Demand Price Future
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California Sauvignon Blanc Acreage
Regional Breakdown
High gt1,300
Mid 700-1,300
Value lt700
N/A
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Varietal Market Review
Sauvignon Blanc
Demand Price Future
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California Cabernet Sauvignon Acreage
Regional Breakdown
High gt1,300
Mid 700-1,300
Value lt700
N/A
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Varietal Market Review
Cabernet Sauvignon
Demand Price Future
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California Merlot Acreage
Regional Breakdown
High gt1,300
Mid 700-1,300
Value lt700
N/A
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Varietal Market Review
Merlot
Demand Price Future
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California Pinot Noir Acreage
Regional Breakdown
High gt2,000
Mid 1,000-2,000
Value lt1,000
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Varietal Market Review
Pinot Noir
Demand Price Future
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California Syrah Acreage
Regional Breakdown
High gt1,300
Mid 700-1,300
Value lt700
N/A
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Varietal Market Review
Syrah
Demand Price Future
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California Zinfandel Acreage
Regional Breakdown
High gt1,300
Mid 400-1,300
Value lt400
N/A
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Varietal Market Review
White Zinfandel
Demand Price Future
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Varietal Market Review
Red Zinfandel
Demand Price Future
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Market Summary

• The 2008 crop was below average in size.
• California supplies are balanced shortage is
  looming.
• Supply growth is limited over the next 5 years.
• We are getting closer to producing what the
  market wants.
• Planting opportunities may exist today
• Economically feasible? (price vs. cost)
• New plantings should be evaluated for long-term
  appropriateness
• ALL planting, like drinking, should be done in
  moderation.

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Questions? This presentation available on-line
at alliedgrapegrowers.org