Strong Response to Vineyard Leasing New Developments Likely To Be Slowing

Many thanks to all of you who responded with interest in Rincon’s vineyard leasing program. Due to the strong response from landowners with interest in leasing some of their land, Rincon has a very significant portfolio of potential properties to attract out of area grape growers and to meet the needs of local operators.

As we head into the 2000 harvest, there is a fear of oversupply of wine grapes in the industry. At the time that this issue goes to print, prices for uncontracted wine grapes in the Central Valley are being pressured fairly hard. On the Central Coast it appears that this season’s crush will be above average, following the last couple of years below average crop. This fact, coupled with the new plantings that are coming on line, give some concerns that the prices here may come under pressure as well. However, the bulk of these grapes have already been contracted for, and the price pre-established.

The good news is that demand for premium varietal wines is continuing to strengthen. Furthermore, any softening of retail prices as a result of oversupply is expected to increase demand further. All this adds up to a wait and see attitude for a lot of wineries looking at vineyard expansions.

We are still working with some out of the area wineries and growers, who have strong interest in locating new vineyard developments on the Central Coast. Those looking for new development land are primarily the larger, well known wineries who are looking for plantings which will “fill in the cracks”. This means their interest is generally in plantings of one hundred to two hundred acres. It appears the larger developments may be put off until the new grapes coming on line are absorbed by the increasing consumer demand.

Please call Frank Ferrero or Larry Lahr if you would like further information about Rincon’s vineyard leasing program.

Home | Real Estate Services | Management Services | News | Resources | Contact Us

Information provided herein has been obtained from sources deemed reliable, but is not guaranteed