Silver lining of poor harvest: it could help balance market

NORTH COAST – While many local grape growers have taken a huge hit this year with problematic weather impacting the harvest, the industry as a whole may have benefited from the smaller harvest, said Rob McMillian, founder of the premium wine division at Silicon Valley Bank.

[caption id="attachment_27033" align="alignleft" width="108" caption="Rob McMillan"][/caption]

“Is it bad? That is a local question. If you lost your zinfandel, it is bad,” he said. “But, this is the equitable way to smooth out the bulge. For the industry today, it is not such a bad thing to have a short harvest. It gets us that much closer to balancing supply and demand.”

He said with the large overhang of inventory, this year will level things out.

“When the market crashed, distributors started cutting out all small producers,” he said.

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