Pinot Gris gains at Chardonnay’s expense

 

We all know that Chardonnay is the leading wine grape in California, in terms of both acreage and sales, right? So tell me, did planted acreage go up or down last year?

Answer: Down. After hitting an all-time high of 94,854 acres in 2013, acreage dropped to 94,279 in 2014, a reduction of 575 acres. That’s not very much, but it’s a reduction nonetheless, and calls for further analysis. So let’s turn to individual coastal counties—Chardonnay’s premium home—for a closer look.

The two counties with the highest concentrations of Chardonnay grapes, Monterey and Sonomoa, together accounted for about half of the total loss: 226 acres between the two of them. Throw in Mendocino, Napa and Santa Barbara—all down—and it adds up to almost the entire statewide loss. So why are these prime coastal counties retreating from Chardonnay?

Well, grape growers are in the unique position of having to understand where the market is going five, ten years down the road. Growers don’t like surprises: they were caught with their pants down when Moscato unaccountably exploded, and they had to rush to catch up. (In 2007, there were only 101 acres planted statewide of the leading forms of Moscato: Moscato Gaillo, Muscat Blanc, Muscat of Alexandria and Muscat Orange. By 2014, there were 8,414 acres, an increase of more than 8,000 percent.) Many must be the conversations around growers’ tables concerning what consumers will be drinking in the year 2020; we have to conclude, given the reduction of coastal Chardonnay, however slight, that the conclusion is that people will be drinking less Chardonnay.

And more of…what? Well, presuming that they will still want white wine, what could it be? Statewide planted acreage of Sauvignon Blanc also was down this year from last year, suggesting growers don’t particularly believe in its future. Pinot Gris, on the other hand, was up—way up in acreage, 9.1% last year, and a whopping 80% more than in 2006. If Pinot Gris was on the futures market, someone would have made a bundle had they bet on it nine years ago.

Pinot Gris now is the third most widely-planted major white wine variety in California, behind only Chardonnay and Sauvignon Blanc (not counting the inferior French Columbard, a staple of jug wines), and is only 1,701 acres behind Sauv Blanc; at the current rate, Pinot Gris will actually surpass Sauvignon Blanc in a few years. Of its statewide total of 15,009 acres, 1,930 acres, or about 7.8%, are non-bearing—that is, they’ve been planted but are too young to bear fruit. That represents a hopeful belief on growers’ part.

But wait, there’s more. Where are these growers planting all that Pinot Gris? On the coast, where it makes the best wine? Nope. In the interior valleys, Sacramento and San Joaquin, which account for 1,866 acres of those 1,930 acres of non-bearing grapes. I believe that we’re going to be seeing an increasing amount of inexpensive California-appellation Pinot Gris and Pinot Grigio on store shelves and in family-style restaurants in the coming years.

And why not? Since the Great Recession Americans have been more budget-minded than in many years. Even here in booming San Francisco, where the streets sometimes seem like they’re paved in gold, the San Francisco Chronicle reported yesterday on a “post-recession chill on holiday sales”; retailers “hope they can grow sales…in the low single-digits,” if, in fact, they can grow sales at all. The article quoted a retail expert: “There will be no surprise boost in spending [this holiday season]. Retailers are just grabbing market share at the expense of someone else.”

Simply put, consumers just don’t have as much money as they used to, a situation that may turn out to be the new normal for years to come. So, with Chardonnay averaging $860.00 per ton of grapes in California, and Pinot Gris averaging $580.30, it’s obvious wineries can sell a bottle of Pinot Gris a lot more cheaply than a bottle of Chardonnay. And that, in the new economy, makes all the difference.