BULK SHIPMENTS TAKING GROWERS OFF GUARD
For California grape growers, 2006 has turned out to be a problematic year. Bulk shipments from foreign industries, like Australia, are taking away a significant chunk of the already shrinking buyer’s market that domestic growers were counting on this year.
“There was an extreme lack of buyers for all price points from the Southern San Joaquin Valley to the North Coast,” Allied Grape Growers president Nat DiBuduo told Farmpress.com.
The influx of critter brands hoping to become the next Yellow Tail eventually led to over-planting in Australia, which has consequently caused a huge grape surplus in the country. Now, surplus critter wines from Australia are being shipped in bulk to California where they are significantly cutting into California wines sales.
Total wine imports jumped 17% in July as bulk wines surged six-fold to nearly 900,000 case equivalents. Four-fifths of it was from Australia, according to Gomberg-Fredrikson, which replaced 43,000 tons of grapes.
Bulk wines from Australia are commonly blended with California wines and sold under the American appellation, causing much frustration for California growers. California grapes need a home, but instead many domestic wineries are looking to bulk imports as a cheaper alternative.
An increase in consumer demand would certainly be helpful, but what’s the answer? In response to yesterday’s article, an overwhelming number of subscribers conveyed what they felt would help the industry. Most respondents feel that the key to upping demand among consumers is a united industry posing an amped up marketing platform.
Thank you to everyone who participated. Here are a few of your comments:
“Remember the California Avocado campaign? And the Wisconsin Cheese campaign? This is what California wine should be doing, especially given the Harvard findings. Getting them all to agree however, is a much bigger problem,” wrote one subscriber.
“The wine industry could take a lesson from Best Buy and Hallmark, among others who have learned that the way to a consumer’s pocket book is through their emotions. Yes, the wine industry as a whole needs to advertise more. The Beer industry spends over a billion dollars in advertising - with the popularity of wine today, can you imagine what an investment in advertising could do for them if they took it seriously?” said another.
“There was an extreme lack of buyers for all price points from the Southern San Joaquin Valley to the North Coast,” Allied Grape Growers president Nat DiBuduo told Farmpress.com.
The influx of critter brands hoping to become the next Yellow Tail eventually led to over-planting in Australia, which has consequently caused a huge grape surplus in the country. Now, surplus critter wines from Australia are being shipped in bulk to California where they are significantly cutting into California wines sales.
Total wine imports jumped 17% in July as bulk wines surged six-fold to nearly 900,000 case equivalents. Four-fifths of it was from Australia, according to Gomberg-Fredrikson, which replaced 43,000 tons of grapes.
Bulk wines from Australia are commonly blended with California wines and sold under the American appellation, causing much frustration for California growers. California grapes need a home, but instead many domestic wineries are looking to bulk imports as a cheaper alternative.
An increase in consumer demand would certainly be helpful, but what’s the answer? In response to yesterday’s article, an overwhelming number of subscribers conveyed what they felt would help the industry. Most respondents feel that the key to upping demand among consumers is a united industry posing an amped up marketing platform.
Thank you to everyone who participated. Here are a few of your comments:
“Remember the California Avocado campaign? And the Wisconsin Cheese campaign? This is what California wine should be doing, especially given the Harvard findings. Getting them all to agree however, is a much bigger problem,” wrote one subscriber.
“The wine industry could take a lesson from Best Buy and Hallmark, among others who have learned that the way to a consumer’s pocket book is through their emotions. Yes, the wine industry as a whole needs to advertise more. The Beer industry spends over a billion dollars in advertising - with the popularity of wine today, can you imagine what an investment in advertising could do for them if they took it seriously?” said another.
posted at 12:03 PM
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