The Crush.February2021 - 7

We are Unified.
(12,612 acres) and sauvignon blanc (4,104 acres).
Based on planting and market trends, Bitter believes
sauvignon blanc may not yet have reached its market
capacity.
For the 2021 harvest, Bitter said, " It is unlikely
any substantial amount of grapes will go unsold/
unharvested. Grape buyers are active to avoid being
short on supply. Buyers/sellers are playing musical
chairs, adding to the perception and reality of
activity. "
Glenn Proctor, partner with The Ciatti Company,
highlighted major shifts in the California bulk
wine market from an oversupply in early 2020 to
a more balanced position today resulting from the
smaller 2020 crop and unsold/unpicked grapes due
to smoke exposure. " We're seeing strong buying
activity in the Central Valley with better pricing and
longer contracts. Coastal activity is improving but
still weaker than the rest of California, " Proctor said.
He advised continued removal of older vineyards
from all regions. " Pricing may be below what
growers would like, but it's still an improvement
from last year, " he said. " Buyers will need to reload
after 2020. Overall we're very optimistic. "
Danny Brager of Brager Beverage Alcohol
Consulting, and formerly with The Nielsen
Company, said, " COVID accelerated the rate of
online adoption and caused consumers to look for
safer ways of buying. " Wine dominates in online
sales over beer and spirits. Surveys indicate a large
percentage of consumers will continue to buy online.
Table wine category sales growth in 2020 by
varietal was led (in order) by sauvignon blanc, rosé,
red blends, pinot noir and cabernet sauvignon.
Packaging trends in 2020 show high growth rates
for 3L bag-in-box, cans and 375 ml bottles. " Smaller
size packages have sold well and new container size
fill standards will give wine more market options, "
Brager said.
Overall per capita alcohol consumption remains
relatively flat. Spirits led in market share growth
all year with wine second and beer third. For 2021,
Brager advised: Continue to fight for share of alcohol
occasions, especially among younger generations;
accelerate innovation; ensure digital/e-commerce
participation; heed trends and give consumers
what they want - convenience, health/wellness,

UNIFIED SYMPOSIUM

transparency and experience/flavors. Off-premise
remains the biggest opportunity, at least for the first
half of 2021. " Be flexible and nimble for twists and
turns ahead, but be ready to act when the market
signals opportunity, " Brager said.
Jon Moramarco, managing partner of bw166 LLC,
praised the industry for 2020 sales based on its
response to the pandemic and market shifts. " We've
done fairly well, however, bigger brands in big box
retailers have done better. Many smaller brands have
done well because of direct sales, " he said.
Moramarco believes the pandemic will change
buying habits more than any other crisis we've seen
in recent history and predicted its toll could result
in 25% fewer on-premise wine selling accounts. A
shift from urban to suburban sales is occurring as
people work from home rather than commute to an
office. " We can hope for a Roaring '20s (celebration
and a surge in alcohol con-sumption from pent-up
demand), but we can't base our plans on this, " he
said. " 2021 will get better as time goes on, but we
still have ongoing challenges. "
WILDFIRE/SMOKE ISSUES HIGHLIGHTED
Proctor estimated more than 165,000 tons of
California winegrapes were unprocessed due to
smoke exposure. " We can't afford to repeat what
we went through in 2020, " he said. " We need better
baseline data on smoke compounds and industry
recognized standards and measurement techniques. "
Moramarco said, " Our analysis indicates the 2020
wildfires will cost the industry $3.7 billion over 10
years, primarily from lost wine sales peaking in
2023. " Moramarco and Proctor advocated faster lab
testing, better risk assessment, and access to data
to inform decisions to be fair and equitable for all
parties.
Bitter said smoke exposure language is showing up
more in grape contracts and growers should either
help draft such language or be sure they know what
it means before signing. " We should not be accepting
contracts that say any detectable amount of smoke
compounds in grapes will be rejected, " he said.
Research indicates that smoke compounds detectable
by lab tests do not necessarily reach detectable
human sensory thresholds.

MODERATOR

Veseth
SPEAKERS

Bitter

Brager

Moramarco

Proctor

CAWG.ORG 7


https://www.cawg.org/

The Crush.February2021

Table of Contents for the Digital Edition of The Crush.February2021

The Crush.February2021 - 1
The Crush.February2021 - 2
The Crush.February2021 - 3
The Crush.February2021 - 4
The Crush.February2021 - 5
The Crush.February2021 - 6
The Crush.February2021 - 7
The Crush.February2021 - 8
The Crush.February2021 - 9
The Crush.February2021 - 10
The Crush.February2021 - 11
The Crush.February2021 - 12
https://www.nxtbook.com/cawg/cawg/the-crush-jan-feb-2024
https://www.nxtbook.com/cawg/cawg/the-crush-december-2023
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https://www.nxtbook.com/cawg/cawg/the-crush-october
https://www.nxtbook.com/cawg/cawg/the-crush-august
https://www.nxtbook.com/cawg/cawg/the-crush-july
https://www.nxtbook.com/cawg/cawg/the-crush-june-2023
https://www.nxtbook.com/cawg/cawg/the-crush-march-2023
https://www.nxtbook.com/cawg/cawg/the-crush-february-2023
https://www.nxtbook.com/cawg/cawg/the-crush-december-2022
https://www.nxtbook.com/cawg/cawg/the-crush-november-2022
https://www.nxtbook.com/cawg/cawg/the-crush-october-2022
https://www.nxtbook.com/cawg/cawg/the-crush-september-2022
https://www.nxtbook.com/cawg/cawg/the-crush-august-2022
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https://www.nxtbook.com/cawg/cawg/the-crush-january-2022
https://www.nxtbook.com/cawg/cawg/the-crush-december-2021
https://www.nxtbook.com/cawg/cawg/the-crush-november-2021
https://www.nxtbook.com/cawg/cawg/the-crush-october-2021
https://www.nxtbook.com/cawg/cawg/the-crush-september-2021
https://www.nxtbook.com/cawg/cawg/the-crush-june-2021
https://www.nxtbook.com/cawg/cawg/the-crush-may-2021
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https://www.nxtbook.com/cawg/cawg/the-crush-february2021
https://www.nxtbook.com/cawg/cawg/Jan2021
https://www.nxtbook.com/cawg/cawg/January2021
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