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John Schmitz, the Capital Press Newspaper,
9-27-02
SALEM, Ore. – The Oregon Wine Advisory Board announced
recently that 197 wineries were operating in the state in 2001, up nearly
20 percent from the 166 the year before and more than double the wineries
in the state 10 years ago.
Oregon's skyrocketing wine in-dustry has more than a few winery and vineyard
owners concerned about whether markets, many of which have softened because
of the recession, can continue to absorb the increasing production.
They rest their case on the fact that for the first time in several years
there are more than a few vineyards that can't sell some or all of their
grapes, and that some wineries are lowering prices, especially on premium
wines.
On the other hand, other industry players interviewed said there's room
for growth and that the current situation is but a blip on long-term production
and marketing screens. Oregon State University extension viticulturist
Anne Connelly said she's received comments from winegrape growers, wineries
and consultants both for and against increased grape plantings.
"I've got this huge array of perspectives," she said. "Some
folks say these things go in cycles and that we've had downturns in agriculture
before and that they'll come back up."
Erath Vineyards general manager and marketing director Steve Vuylsteke
estimated that nearly 5
percent of the Oregon winegrape harvest this season, about 1,000 tons,
is still looking for a home.
"The current state of affairs is that the amount of planted and producing
acreage has caught up with the demand from wineries," Vuylsteke said.
"I believe this will be the first year that I can recall that a lot
of grapes won't be picked," Vuylsteke said that until this year Pinot
noir growers had little trouble selling their grapes. "This year
that's become problematic," he said. "The number of new plantings
that have come into production in a relatively short period of time, coupled
with a large harvest last year, means that a lot of wineries, including
our own, are tight on tank space,"
Erath Vineyards, which produces about 35,000 cases of wine year in Dundee,
Ore., buys about
third of its grapes on the outside. Vuylsteke said that while he wouldn't
discourage new grape plantings he cautions new growers to first connect
with a winery "before they invest a dime in the industry."
"Just from what we've heard, people are having a difficult time selling
it (both grapes and wine)," said Miki Shafer of Shafer Vineyard Cellars
near Forest Grove, Ore. "I have calls every single day, every single
day, someone trying to peddle their grapes," Shafer said. "From
just what we've heard there seems to be a huge supply of grapes on the
market."
The Shafers, who were among the first to grow winegrapes and make wine
in Oregon's modern wine era, produced 9,000 cases of wine last year. "People
who come into the tasting room who have talked to other tasting room people
said, 'Gosh, they're having a hard time selling wine,' Shafer said. "I
think everybody's having a hard time and not just because of the economy
but because there's so damn many grapes."
She believes some Oregon wines are "way over-priced," adding
that she has no trouble selling medium.- to lower-priced wines.
"We have a Chardonnay that's $3.61 a bottle by the case, and just
got a nice write-up in the (Salem) Statesman-Journal that we have the
best Chardonnay in Oregon for the price. If you have too much Chardonnay
you don't try to get $10 for it," she said. "You're not going
to make a lot of money but we did not want it to rot on the vines."
Harry Peterson-Nedry, co-owner and co-winemaker at Chehalem winery near
Newberg, Ore., which has more than doubled its wine output the last few
years to 14,000 cases today, isn't that concerned about the oversupply
of grapes on the market today. He said that there have been several periods
in Oregon's rela-tively young wine industry history when grape supply
was greater than winery capacity to handle it.
"This is another instance of excellent vintages prompting people
to get into the industry, prompting them to plant. Usually about two to
three years (later) you see a blip up in the amount of fruit available,"
he said. "It takes a year or so for the winery capacity to catch
up with the vineyard capacity. "There are a few more grapes that
are available now than the last three or four years," Nedry said.
'In the last three vintages there was a severe under-supply. Everybody
was scratching to try to find (Pinot noir) grapes and would be offering
ridiculous sums."
Nedry said the grape surplus is mostly affecting younger plantings of
Pinot noir and old plantings of non-DiJon Chardonnay clones, which have
fallen out of favor.
Barbara Ann Bower of Dundee Springs/Perry Bower Vineyards said it's difficult
to tell if Oregon wines have reached a saturation level. "Personally,
I don't think so. (While) on the one hand it does look like there is more
fruit than what vineyards owners can sell to winemakers," she said,
"But on the other hand, all of the wineries I have spoken with, they've
had record years. We're definitely having a record year here."
Bower said Oregon wines are holding their own for two reasons: many wineries
are lowering their prices to become more competitive and the Oregon Wine
Advisory Board is "more aggressive" in promoting Oregon wines.
Nedry said that even with the over-supply and soft wine markets, every
winery he knows is making as much wine if not more, though they've had
to work harder to find markets for it. "I think the Oregon wine in-dustry
will always be good, but I think there's going to be some price adjustments,"
Shafer said.
Connelly said that she gets calls every week from people, many from outside
the state, wanting to either grow grapes, make wine or both.
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