Napa, Calif.—Everything about the 2016 harvest was ideal except that yields were a little light in some varieties, according to viticulturist Justin Leigon of Piña Vineyard Management in Napa Valley.

Leigon was part of the Wine Industry Financial Roundtable hosted by accounting and consulting firm Moss Adams last week in Napa. He provided a detailed summary of this year’s harvest and related issues such as vineyard labor. Then, Turrentine Brokerage president Steve Fredricks and market researcher and analyst Daniel Tugaw discussed the market for grapes and wine.

For Piña, 57% of the grapes picked were Cabernet Sauvignon, and most of the rest were red varieties. The average yield was 3.5 tons per acre, a marked increase from 2015, when some Napa Cabernet vineyards reported less than 2 tons per acre.

Bud break came about 1.5 weeks early, Leigon said, and bloom was a week earlier than average. He added that bloom set fast, as did color at véraison.

The viticulturist said that temperatures were less than 75° F during bloom time in May 2015, which reduced the number of clusters for 2016. And with slightly above-average precipitation in 2016, less irrigation was necessary.

The amount of shatter was less than in 2015. “We knew this year would be light. Most high-end Napa Cabernet Sauvignon never sets more than two clusters per shoot, and this year, we saw a lot of single clusters,” Leigon said.

Fortunately, 2016 was relatively mild, with few days over 100° F, so sugar accumulated slowly. “Napa almost always under crops, so low temperatures are helpful in maintaining balance,” Leigon stated. “The moderate temperatures also improved quality in normally warm areas like Lake County.”

Time from blossom to harvest was 148 days compared to 137 on average, he said.
“Accumulated degree-days were similar to the ideal 2013, much less than 2015, when there was a lot of heat,” he said.

Labor and automation
Many California growers encountered labor shortages due to the condensed picking time as well as the changes in paying piece rates and hourly wages. “We now have to pay hourly rates when the pickers aren’t actively picking in addition to piece rates,” Leigon said.

He also said that mandated raises of $1 per hour at the starting level cause a ripple in higher wage scales. The starting wage now is $14 per hour in Napa Valley.

Asked about automation, which some propose as the solution to labor woes, Leigon noted that some might be useful, but he believes mechanical picking doesn’t allow selective picking of clusters as requested by top Napa winemakers.

He acknowledged that even Napa growers may be forced into it, however. “After all, they do it in Bordeaux and Santa Lucia for high quality.”

Optical sorting on the crush pad can save a lot of labor, he added.

Supply and demand
After Leigon’s summary of harvest, Fredricks and Tugaw discussed grape and wine supply. “2015 was a much smaller harvest than average, so the market for wine started early—and at higher prices,” Fredricks said.

He emphasized that sales of super-value wines (those priced under $3 per bottle) have stagnated, and demand for wines priced above $10 per bottle keeps increasing. “There’s no interest at the low end or for older vintage wines.”

Fredricks said that wineries are having trouble raising bottle prices, which puts pressure on them as grape prices go up. Many are responding by moving to grapes from less expensive regions (like from California’s Central Coast from the North Coast). “Average prices are quite a bit higher than last year, but quality must be better.” He added that supply is down worldwide.

Overall, the 2016 California crush was about the same size as 2015, but coastal areas were small last year. They should rebound. “Sonoma, Napa Valley and the Central Coast will be well up.” However, to balance that, yields are down in the Central Valley due to water shortages and heat as well as vines pulled for orchards.

Washington has almost doubled its acres of vineyards in recent years, and growers are planting more in Lake County, too. “Washington is going to become a big factor in Cabernet,” Fredricks said, adding that growers in Paso Robles, Calif., rushed to plant ahead of moratoriums.

The 2015 Pinot Noir crop was very low, but Fredricks says it was up considerably in 2016. “Oregon is becoming increasingly competitive for $10-$20 Pinots,” he pointed out.

One of the hottest categories is red blends, but buyers want darker, rich varieties like Petite Sirah, Petit Verdot and Malbec, not Carignan, Grenache, Barbera and Ruby Cabernet. “There’s not much demand for Zinfandel or Merlot either,” Fredricks said.

Napa acreage, prices and pests
As far as plantings in Napa Valley, Leigon said the region had 44,268 acres of vines in 2015, and with a typical 25-year life, 4% (or 1,770 vines) have to be replanted every year, on average. Of that, 19,476 acres was Cabernet Sauvignon, and 855 acres (or 4.4%) were non-bearing.

In addition, he noted that many growers are replacing Chardonnay and Sauvignon Blanc with Cabernet due to the prices. “In 1991, Cabernet went for $2,936. In 2015, the average was $6,327, up 6% per year.” He added, “Contracts are being renegotiated, and the prices may be $7,500-$8,000, not $6,000.”

Leigon also reviewed the impact of pests, notably insects and viruses. The biggest viruses are red blotch and leafroll, with mealybugs leading pest concerns.

“Red blotch seems to come mostly from nurseries with leafroll spread by insects,” Leigon said.

The only solution seems to be rogueing individual vines or replace vineyard blocks.

Leigon said that researchers have recently found that red blotch can be spread by the three-corned alfalfa treehopper but don’t know much about it or its range. Other insects may also spread the disease.

He noted that blue-green sharpshooters seem to be making a comeback, perhaps due to the warming winters and wet springs.

Piña has experimented with RMAX remote-controlled helicopters for spraying for inspects.