50% drop in 2009 grape purchases forecasted for Catalan wineries

The economic crisis and excess stock is setting the scene for a drastic drop in grape purchases this year among Catalan wineries. In La Vanguardia (July 15, '09) Ramon Francàs reported that many in the market expect purchases could be down by 50% this year.

According to the article, the Torres winery, leading still wine producer in Catalunya, has sent a letter to its 620 grape suppliers informing them that the winery will be taking in 50% less red grapes and 30% less white grapes. The two other major players in the market, cava giants Freixenet and Codorníu as saying they will hold volumes, but there is no mention yet of price.

Third largest cava producer Juvé & Camps confirms that purchases will be lower, in part due to recent increases in their own vineyard holdings. Gramona, another cava maker, has announced that they too will be buying less.

Growers union representative Mr. Joan Santó (Unió de Pagesos) estimates that small and medium size winery grape purchasing will be down by 50% and that his members are "terrified" at the prospect.