California Wine Battles Oversupply After Big 2023 Harvest

The California wine grape crush came in at 3.6 million tons for 2023, according to the California Department of Food and Agriculture’s preliminary grape crush report. Top varieties Cabernet Sauvignon (+15%), Chardonnay (+25%), Pinot Noir (+21%), Sauvignon Blanc (+28%), and Pinot Grigio (+19%) were all up double-digits compared with the previous year, and all were also well ahead of their five-year averages.

“The combination of higher-than-average yields per acre in 2023 and the increasing concern over slowing consumer sales have resulted in the California wine market moving into an excess market cycle,” noted Turrentine Brokerage president Steve Fredricks. “The good news is that now the perceptions of bulk wine sellers and grape sellers are more aligned with the reality of the market.”

While the large harvest will provide better supply to bulk buyers—allowing them more room to innovate and bring new offerings to consumers—the “current challenges to consumer demand coupled with lower risk tolerance may slow the efforts to evolve past the current excess versus previous periods of excess,” he added.—Daniel Marsteller

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