Central California Winegrowers

Where we are now.
And why.

Central California Winegrowers are organizing to meet major challenges facing the industry.

Increased competition from other regions and loss of market share to foreign producers

Shifting consumer demands

Vintner quality perceptions favoring cooler climates

Lack of regional representation for nearly 60 percent of all grapes crushed in California

What we can do about it.
Right now.

A study commissioned by the California Association of Winegrape Growers concluded that, to stay in business, producers should follow one of two market-driven alternatives:

1. Produce grapes for wine

Emphasize and enhance overall winegrape quality, and quality perception

Produce winegrapes for value-priced wines

2. Produce for concentrates, emphasizing high volume

Growing Wine, Not Grapes

The Central California Winegrowers organization seeks to make our members successful by placing the emphasis on growing wine, not grapes. Our approach has many facets:

Increasing our understanding of domestic and international wine markets

Developing wine growing partnerships with vintners

Promoting wines and grapes best suited to the San Joaquin Valley

Adoption of the best vineyard practices to efficiently produce higher quality

Broadening the consumer base and expanding demand for our products

Creating a positive perception of Central California winegrape products

Storm Clouds

Central California winegrape market prices are at a unprecedented low … well below the cost of production.

The seeds of the present economic crisis were sown by the industry’s prosperity in the 1990s – the California winegrape industry boomed during the last 15 years.

The total producer value of the statewide crush doubled to more than $2 billion. The crush grew by about 30%, and statewide average winegrape prices increased up to 120%.

Then the bottom dropped out.

Wine producing districts outside of Central California, with perceptions of higher quality, grew faster than the Valley.

The industry (and the consumer) moved away from the lower-priced segment, which is based on Central California winegrapes, and moved toward more expensive wines.

In 1980, jug and box wine (the backbone of Central California wines) accounted for more than 93% of California shipments. By 2001, jug and box wine dropped to 37% of shipments.

At the same time, premium wine shipments increased 10-fold in ten years and higher premium wine shipments increased 20-fold.

A flood of wines from other regions in the United States and imports from other parts of the world challenged the Central California winegrape industry.

Brighter Days

The California Association of Winegrape Growers commissioned a 2001 study to identify markets for growers, outlining two different businesses:

1. Concentrates or juices

2. Value-priced wine production

Based on the report and year-long talks, Central California Winegrape Growers pinpointed our agenda of research and outreach activities to revive the Valley’s struggling wine industry.

Our original priorities will be aimed at starting the changes that will need to be made to restore the health of the Valley’s wine industry.

Key elements of our program will include:

1. Local research and demonstration vineyards to improve the varietal selection and cultural practice needed to produce quality grapes in the Valley’s warm climate.

2. Market research to improve business opportunities for grape concentrate.

3. Locally oriented educational programs for winegrape growers.

There is always room for improvement.

We recognize the need to raise the level of quality (and the perception of quality) of winegrapes grown in the region.

The Central California Winegrape Growers organization exists to enhance the quality, reputation and marketability of our products at home, and around the world.

The Central California Winegrape Growers will act as a research and education shield for growers and vintners. We encourage the formation of county and micro-region growers and vintners to facilitate communication within Central California’s winegrape industry.

“After a year of discussion among grape growers and vintner representatives, we decided our industry must work together to meet the research, educational and marketing needs of the San Joaquin Valley winegrape and compete in the global marketplace. The changing economics of our business demands nothing less.”

Carson Smith of Fresno, Chairman of the Central California Winegrowers

“Our region represents more than 50% of the total grapes crushed in California, but we are the only wine producing region in the state without the human infrastructure to enhance the quality, reputation and marketability of our products. We must work together as an industry to sustain our Central Valley winegrape industry for the long-term.”

Nat DiBuduo, Treasurer of the Central California Winegrowers