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Face of California Wine Is on Fire, Threatening $50,000 Grapes
Oct 9, 2017
(Bloomberg) - Wildfires tore through northern California’s iconic wine-growing regions of Napa and Sonoma, damaging some of the most valuable vineyards and wineries in the U.S. and leaving vintners dumbfounded.
While California’s coast accounts for a relatively small percentage of U.S. production, it is the most valuable region in the country, said Stephen Rannekleiv, a beverage analyst at Rabobank International. The lion’s share of grapes in the state are grown in the San Joaquin Valley, where cabernet sauvignon grapes go for about $400 a ton. By contrast, the same fruit from Napa Valley usually costs closer to $7,000 a ton, and can sell for as much as $50,000. High-end wines are driving demand growth in the U.S., with bottles priced over $10 seeing the biggest gains, Rannekleiv said.
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