Tips for Buying and Selling Grapes
Every autumn, VineWorks plays a pivotal role in connecting grape growers with wine producers, facilitating the buying and selling of hundreds of tonnes of fruit for clients. As the UK wine industry expands, the demand for high-quality grapes has surged. In 2023, we managed 545 tonnes of fruit transactions, valued at £1.4 million.
Demand for grapes
Demand stems from established brands seeking to supplement their production volume or diversify the regions their fruit comes from. This can be to 'hedge' their bet against inclement weather during the season, reduce the need for themselves to invest in land, infrastructure and grow the grapes or to broaden the flavours achieved from resulting wines grown in different soil profiles. Demand might also spring from new brands that depend on purchasing grapes, and contracting winemakers. While traditional sparkling wine production continues to drive the market, there is also a notable rise in still wine production and innovative methods like Charmat in the UK.
Securing Contracts
We advise new growers to secure a fixed, long-term contract with a winery or buyer before planting vines. Locking in a fixed price per tonne safeguards your investment and allows for accurate return calculations over the contract term.
Wine Market Challenges
Growers and purchasers without long-term contracts must navigate the open market, introducing uncertainty into their business plans. Although the UK generally produces grapes of consistent quality, yields can vary annually. This variability can lead to fluctuating prices. For example, the 2017 yield dropped by about 35%, leaving few grapes available on the open market. Conversely, the bumper crop of 2023 resulted in an oversupply and lower grape prices.
Winery Considerations
Tank space at wineries can have a significant effect on the open market price. In low-yield years, producers may struggle to fill their tanks, turning to the open market to meet their volume needs. However, in high-yield years, wineries often reject surplus grapes due to capacity constraints.
Focus on Quality Grapes
Whether you are a grower or a producer, maintaining quality should be your primary goal. Manipulating yield to reflect the vines and the season into vineyard management is essential. Consistently achieving high quality at 7 to 8 tonnes per hectare allows for increasing yields to 10 tonnes in high-yield years while maintaining exceptional vintage standards.
At VineWorks, we are dedicated to achieving the best outcomes for both our customers and the industry, one vine at a time.
PUBLISHED IN THE FRUIT GROWER - OCTOBER 2024
Do you need assistance in buying or selling grapes? Contact us to discuss how we might be able to support you with fruit brokering.
