Mark Aselstine
 
July 5, 2011 | Mark Aselstine

Shrinking Demand in Sonoma?

Every once in a while we come across a bit on the business side of wine which we think our average reader, or wine club customer might be interested in. While I think most people know the theory of supply and demand well enough from Economics class in high school, it makes sense to mention that as supplies dwindle prices tend to go up. Many of us have experienced this within the wine industry already, take any Cult Cab in California as an example.

I bring this up because of an article I saw on Wine Business the other day which showed that Sonoma County has been actively (or so it appears) shrinking production. For an industry trying to stabilize prices in the face of daily deal sites and a generally still sluggish economy, it probably makes a lot of sense. What I do think is missed, is that there would be more to be concerned about if the percentage of non-bearing acres were higher. It could simply be, that yields were down in 2010 due to some adverse growing conditions in Sonoma (2010 is generally considered a less than ideal growing year).
 

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