Long-term grape contracts require a mechanism to dictate price throughout the term of the contract. These mechanisms can make an enormous difference in the profitability of the contract for both sides. The chart below is an illustrative case study. It assumes a three-year contract was signed for District 11 (Lodi) Zinfandel that was priced at $900 in 2015. Six types of escalators/indexes are examined: Inflation: Some contracts index to inflation, which I typically define a
My last blog post included a new tutorial video showing how to use the Grape Data Tool to create charts depicting the what share of the wine grape market different regions of California have, by yields, acreage and grape sales revenue. Here are the charts below, for anyone who wants it. Note that the region names also include a listing of what USDA-NASS grape pricing districts were included in each region. #winegrapes #wine #winebiz #vineyards #yields #acreage #grapedatatoo
Stay tuned to VFA's blog to follow grape price trends and for information and advice relevant to the business of running a vineyard. You can browse articles to the left, via the pull-down archive menu or by searching for specific article tags.