Local vintners endure glut of grapes

LODI — Grape growers and winery owners in the region are still experiencing a downturn in the popularity of their product, but they also believe things will turn around.

“It’s a sign of the times,” Lodi grape grower Jim Ehlers said. “There are too many grapes on the market. It’s all about supply and demand, and the demand isn’t that high right now.”

Last month, Ehlers erected a sign on Woodbridge Road advertising more than 200 tons of Cabernet Sauvignon grapes for sale in an effort to offload what he couldn’t sell from his crop.

A 20-year-old contract he had with Constellation Brands Inc., wasn’t renewed, he said, because of the recent decline in wine’s popularity.

Ehlers said he couldn’t blame the winemaker for their decision, as more wineries and growers in the region, as well as the state, experience a glut.

“We just have more wines out there,” he said. “Consumption is not going up as much as it used to.”

Since erecting the sign, Ehlers said he has been able to sell about 170 tons of his crop.

While the Lodi Winegrape Commission has reported that some growers are pulling out some of their vines — particularly Zinfandel — Ehlers said he has no plans to remove his Chardonnay or Cabernet crops.

David Phillips, co-owner and president of the Michael David Winery, also said his family has no intention of pulling vines.

He said the glut is not only affecting the Lodi region, but the entire state.

“It’s not just the Zinfandel grapes either,” he said. “It’s all varieties. California has just over-produced wine over the last couple of years.”

The Santa Rosa Press Democrat reported last month that many growers in Sonoma, Mendocino, Lake and Napa counties have several tons of grapes still on the vines because of an oversupply.

Growers, the Press Democrat said, were affected by a record grape crop in 2018, a decline in retail sales, and uncertainty over the planned $1.7 billion deal between the E&J Gallo Winery and Constellation Brands, Inc.

Many growers on the North Coast sell to the two wine companies, the Press Democrat reported, which are two of the largest in the nation.

The Gallo Winery is currently in the process of purchasing more than 30 wine and spirits brands from Constellation, as well as six wineries. Gallo has a 23% share in the wine market, while Constellation has an 11% share. The latter is trying to reduce its portfolio and concentrate on highend wine production, the Press Democrat reported.

The deal has not been finalized, according to media reports, and was supposed to close in May.

According to the California Department of Food and Agriculture, there was an estimated 637,000 acres of winegrapes across the state in 2018, an increase of 111,000 since 2008.

While San Joaquin and Napa counties are two of the most popular for winegrape growing, there are 17 other regions that contribute to that 637,000 acres of vineyards.

Those include Lake, Madera, San Benito San Luis Obispo, Solano and Santa Barbara, among others.

The Wine Institute, an advocacy and public policy association for 1,000 wineries in California, reported earlier this year that the state’s sales in the national market reached $40 billion in 2018, a 3 percent increase from 2017.

But Gladys Horiuchi, director of media relations for the agency, said a glut is to be expected once in a while.

She said there are times growers are uncertain as to how many tons of grapes they need to harvest, which results in a situation where they have over-supplied.

Then, growers are left with an excess of grapes, she said.

“The industry is always cyclical as far as supply and demand,” she said. “This is just one more cycle, and all the regions are experiencing it.”

Ehlers and Phillips said the cycle is something that will pass.

“We’ve been able to get through it before,” Phillips said. “We’ll get through it this year.”